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Project Management Scenario A Global Case Study

" The rule to adopt to schedule the project is to efficiently allocate the resources to achieve early start schedule. Given the limited resource, the constraint to be taken into account is the resource requirement, which is required to avoid extreme fluctuation in the labor demand. The resources constraints could lead to high costs of labor training, transportation, hiring and management. Additional constraint is that there is much difficult in presenting the project network diagram, and too much information is often presented which could be high as 500 activities. The problem of displaying numerous activities is identification of activities such as number resources to be added to the diagram.

Q7). a) "Find the expected time of the project using PERT. What is the probability of completion within the expected time"?

The expected time of the project using PERT is calculated using weighted average and the results gives Time Expected (Te).

a m m

Te

A

2

4

6

4

B

4

6

8

6

C

2

3

4

3

D

0.5

1

4

1.83

E

2

3

4

3

F

1

3

5

3

G

1

2

3

1

H

2

3

4

3

I

1

2

3

2

J

0.5

1

3

1.5

K

0.5

1

3

1.5

L

1

3

5

3

The probability of completing the project within the expected time is as follows:

4+6+3+1.83+3+3+1+3+2+1.5+1.5+3/12

32.83/12=2.73

The probability of completing the expected project before the expected time is

1.46 which is greater than 1. When using probability analysis, the care than needs to be taken care of order of magnitude.

Q8). "Find the minimum cost increase to reduce the expected duration of the project by 2

Weeks."

Activity

Minimum Cost

Normal Duration

Crash Cost

Crash Duration

Change in Cost per Day

A

B

C

D

E

F

G

8

4

8

10

10

20

10

6

1

8

5

9

12

3

14

4

24

24

18

36

18

4

1

4

3

5

6

2

3

4

7

2

2.7

8

Q9). "The Company assessed the costs of the project at important milestones at the outset as shown in Table B2. After some weeks, the project manager asked the task supervisors for progress reports and the feedback shown in Table B2 was reported."

a) What is the cost variance...

The project is ahead of schedule and over budget.
b)

y+2x = 7.45

y-x =1.75

y=1.75+x

1.75+X+2x = 7.45

1.75+3X=7.45

3X=7.45+1.75=5.70

X=1.90

y-1.90 =1.75

Y= -0.15

X=1.90X900= 1710

Y=-60

The minimum cost is 1710-(-60)

=1710+60=1770/2

Minimum cost=£885

Minimum cost corresponding to the optimal values of the decision variables is £885.

References

Anbari, F.T., Carayannis, E.G. And Voetsch, R.J. (2008) Post-project reviews as a key project management competence, Technovation, Vol. 28, pp.633-643.

Brady, T. And Davies, a. (2004) Building of the Project Capabilities: From Exploratory to Exploitative Learning, Organization Studies, Vol.25, No.9, pp.1601-1621.

Prencipe, a. & Tell, F. (2001). Processes and outcomes Inter-project learning: knowledge codification in project-based firms. Research Policy. 30: 1373 -- 1394

Plan:

Development and installation of a wireless network to support

PDA operation for an airport application -- (John Kennedy Airport application).

Project manager intends to ensure the success of the project.

Management of global consumer electronic company wants to use PDA to boost productivity

Employees of global consumer electronic believe the PDA will lead to the increase in salary.

Airport employees are frighten of new technology with the believe that it will lead to the layoff of non-technical staff.

Airport management believes that the new technology will improve the airport service.

Airport customers believe that PDA will improve airport service.

Start

A2

B4

C2

D 0.5

E 2

F1

H 2

G1

I1

J 0.5

K 0.5

L 1

Sources used in this document:
References

Anbari, F.T., Carayannis, E.G. And Voetsch, R.J. (2008) Post-project reviews as a key project management competence, Technovation, Vol. 28, pp.633-643.

Brady, T. And Davies, a. (2004) Building of the Project Capabilities: From Exploratory to Exploitative Learning, Organization Studies, Vol.25, No.9, pp.1601-1621.

Prencipe, a. & Tell, F. (2001). Processes and outcomes Inter-project learning: knowledge codification in project-based firms. Research Policy. 30: 1373 -- 1394

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