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Dr.

Azmawani Abd Rahman (MGM3161)

CHAPTER 9: PERT / CPM

PROJECT SCHEDULING WITH KNOWN ACTIVITY

Question 1

The Owner of Jusco Puchong Branch is planning to modernize and expands the current
facilities. The project is expected to provide room for 8 to 10 new business. The activities
and the predecessors are as follows:

Activity Activity Description Immediate Activity


Predecessor Time
(weeks)
A Prepare Architectural drawing - 5
B Identify potential new tenants - 6
C Develop prospectus for tenants A 4
D Select contractor A 3
E Prepare building permits A 1
F Obtain approval for building permits E 4
G Perform construction D,F 14
H Finalized contracts with tenants B,C 12
I Tenants move in G,H 2

1. Draw the precedence diagram


2. How long will the project take to complete?
3. Which activities are critical and must be completed exactly as scheduled to keep
the project on schedule? ( identify CRITICAL PATH)
4. How long can the noncritical path activities be delayed before they cause an
increase in the completion time for the project
Dr. Azmawani Abd Rahman (MGM3161)

PROJECT SCHEDULING WITH UNKNOWN ACTIVITY

Question 2

To complete the wing assembly for an experimental aircraft, Asiacraft Company has laid
out the major steps and seven activities involved. These activities have been labeled A
through G in the following table, which also shows their estimated completion times (in
weeks) and immediate predecessors.

Activity a m b Immediate
predecessors
A 1 2 3 -
B 2 3 4 -
C 4 5 6 A
D 8 9 10 B
E 2 5 8 C,D
F 4 5 6 B
G 1 2 3 E

a. Draw the precedence diagram


b. Determine the critical path and the expected project length
c. What is the probability that the project will finish in 17 weeks or less?
d. What is the probability that the project will finish in 18 weeks or less?
e. What is the probability that the project will finish in 20 weeks?
Dr. Azmawani Abd Rahman (MGM3161)

CRASH COST

1. Determine the least cost of reducing the project completion date by 3 months
based on the following information

A C

Finish
Start ACT Normal Crash time Normal Crash cost
time (months) cost (RM)
B D E (month)
A 6 4 2000 2400
B 7 5 3000 3500
C 7 6 1000 1300
D 6 4 2000 2600
E 9 8 8800 9000

2. Development of a new deluxe version of a particular software product is being


considered by online solution company. The activities necessary for the completion of
this project are listed in the following table:

Act. Normal time Crash time Normal cost Crash cost Immediate
(weeks) (weeks) (RM) (RM) predecessor(s)
A 4 3 2,000 2,600 -
B 2 1 2,200 2,800 -
C 3 3 500 500 -
D 8 4 2,300 2,600 A
E 6 3 900 1,200 B
F 3 2 3,000 4,200 C
G 4 2 1,400 2,000 D,E

1. What is the project completion date?


2. What is the total cost required for completing this project on normal time?
3. If you wish to reduce the time required to complete this project by 1 weeks,
which activity should be crashed, and how much will this increase the total
cost?
4. If you wish to reduce the time required to complete this project by 5 weeks,
which activity should be crashed, and how much will this increase the total
cost?
5. What is the maximum time that can be crashed? How much would costs
increase?

3. The following table contains information about a project. Shorten the project three
weeks by finding the minimum-cost schedule. Assume that project indirect costs and
Dr. Azmawani Abd Rahman (MGM3161)

penalty costs are negligible. Identify activities to crash while minimizing the
additional crash costs.

Activity Normal Time Crash Time Cost to crash Immediate


(Weeks) (Week) (RM per week) Predecessor(s)
A 7 6 200 None
B 12 9 250 None
C 7 6 250 A
D 6 5 300 A
E 1 1 - B
F 1 1 - C,D
G 3 1 200 D,E
H 3 2 350 F
I 2 2 - G

1. What is the project’s duration if only normal times are used?


2. The management wants to shorten the project by 3 weeks. Identify activities to
crash while minimizing the additional crash cost and find the additional cost as a
result of this activity.

4. Refer to the following information for project X :


7 3
Dr. Azmawani Abd Rahman (MGM3161)
A B

START
E END

C D 2

6 3

Activity Normal Time Crash Time Normal Cost Crash Cost


(Days) (Days) (RM) (RM)
A 7 4 500 800
B 3 2 200 350
C 6 4 500 900
D 3 1 200 600
E 2 1 300 550

a. What is the expected completion time?


b. If the management wants the project to be completed in 10 days, which activities
should be crashed and what is the crash cost?
c. If the management want to crash the cost to the maximum, which activities should
be crashed, what is the crash cost and what is the total project cost?