ASSIGNMENT-II

(For the students who will not appear for the 2nd Internal Examination on the account of
joining in the job)
B. Tech (Chemical Engineering)
Semester: 8th
Subject: Project Management
Paper Code: HU801B
Answer the following questions:
1.) Following are the details of two new machines:
Particulars
Machine A Machine B
Cost of the Machine
Rs. 100000 Rs. 150000
Installation costs
Rs. 20000
Rs. 25000
Salvage value
Rs. 10,000 Rs. 15,000
Life of the machine
5 years
5 years
Machine hours per year
2000 hrs.
2000 hrs.
Output per hour
10 units
15 units
Selling price per unit
Rs. 10
Rs. 10
Material cost per unit
Rs. 3
Rs. 3
Wages per machine hour
Rs. 30
Rs. 30
Power charges per machine hour Rs. 2
Rs. 2
Repairs & Maintenance per year Rs. 10000
Rs. 12000
Supervision charges per year
Rs. 12000
Rs. 20000
Other expenses
Rs. 20000
Rs. 40000
Working capital
Rs. 25000
Rs. 30000
Rate of tax
@ 50%
@ 50%
Calculate the Average Rate of Return of two machines taking average investment as base and
using the following methods:
(i) Annual average income after tax and depreciation.
(ii) Annual average income after tax plus depreciation
and
Advice the management the profitable machine.
2.) The following table shows the activities, their immediate predecessors and time estimates of
the project.
Activity
Immediate
Predecessor
Optimistic Time (to)
(days)
Most Likely Time (tm)
(days)
Pessimistic Time (tp)
(days)

B, D

C, E

C, E

12

10

4.5

2.5

16

12

1.5

17

20

20

15

16

i)
ii)
iii)

Calculate the expected time and variance of each activity of the project.
Draw the network diagram, find the critical path and calculate the expected duration of
the project.
Assuming that the project completion time follows normal distribution. calculate the
probability of completing the project in (a) 50 days and (b) 42 days
Given the table value of z
z
0.92
0.93
1.18
1.19
Table value 0.3212 0.3238 0.3810 0.3830

3.) From the given data find out the least cost schedule of the project.
Activity

Normal Time
(Weeks)
9
5
7
4

12
23
24
34

Crash Time
(Weeks)
4
2
3
2

Cost of Crashing
(Rs. per Week)
300
400
200
200

Time related overhead expenses for the project is Rs. 250.00 per week.
4.) A project has 7 activities. The relationship between the activities, their duration and the
labour requirement is as under
Activity

Preceding Activity

Activity Duration
(Weeks)

Labour Requirement

The project duration should not exceed beyond the minimum project schedule. Only 3 men are
available for the project execution. Find the resource schedule with respect to labour.

Note: All assignments are to be submitted latest by 10/05/2015