Project Management: Discussion Questions

Chapter 04 – Project Management
CHAPTER 4
PROJECT MANAGEMENT
Discussion Questions
1. What was the most complex project that you have been involved in? Give examples of the following
as they pertain to the project: the work breakdown structure, tasks, subtasks, and work package.
Were you on the critical path? Did it have a good project manager?
Obviously, the answer will vary. Remember that the project could be in a non-profit environment as well.
School plays (especially musicals) are a good example, because there are many major tasks that need to
be broken down and scheduled in parallel, but all must be completed by the time opening night comes.
This would include selecting the play and obtaining the rights, auditions, rehearsals of the actors,
rehearsals of the musicians, construction of the sets, setting the lighting, printing tickets and programs,
staffing the theater, advertising and fund raising.
2. What are some reasons project scheduling is not done well?
Several problems with project scheduling are discussed at the end of the chapter. The uncertainties
inherent in the activities comprising the network of any project make it necessary to update the schedule
on a regular basis. Maintaining accurate time and cost estimates is often difficult and frustrating.
Managing this evolving process requires a discipline that is not always available.
3. Which characteristics must a project have for critical path scheduling to be applicable? What types
of projects have been subjected to critical path analysis?
Project characteristics necessary for critical path scheduling to be applicable are:
a. Defined project beginning and ending
b. Well-defined jobs whose completion marks the end of the project.
c. The jobs of tasks are independent in that they may be started, stopped, and conducted
separately within a given sequence.
d. The jobs or tasks are ordered in that they must follow each other in a given sequence.
e. An activity once started is allowed to continue without interruption until it is completed.
A wide variety of projects have used critical path analysis. Some industries that more commonly use this
approach include aerospace, construction, and computer software.
4. What are the underlying assumptions of minimum-cost scheduling? Are they equally realistic?
The underlying assumptions of minimum cost scheduling are that it costs money to expedite a project
activity and it costs money to sustain or lengthen the completion time of the project.
4-1
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
While both assumptions are generally realistic, it often happens that there are little or no out-of-pocket
costs associated with sustaining a project. Personnel are often shifted between projects, and in the short
run there may be no incentive to compete a project in “normal time.”
5. “Project control should always focus on the critical path.” Comment.
In many project situations, it is not the activities on the critical path which cause problems, but rather
noncritical activities, which, for various reasons, become critical. In the context of PERT, it may turn out
that the activities on the critical path have small variances associated with them and can be treated as
near certain. At the same time, activities off the critical path may have extremely large variances and, in
fact, if not closely monitored, may delay the project. Thus, while project control must keep track of
critical path activities, it may be more useful to focus on those activities which are not on the critical path
but, for one reason or another, have a high degree of uncertainty associated with them.
Along these lines, some authors have suggested that the critical path approach should be replaced by a
critical activity approach in which simulation is used to estimate which activities are likely to become
sources of project delay. These activities, rather than critical path, would become the focus of
managerial control.
Additionally, the critical path focuses on the time or schedule aspects of the projects. Certain activities
could be "critical" because of cost or quality considerations.
6. Why would subcontractors for a government project want their activities on the critical path?
Under what conditions would they try to avoid being on the critical path?
A subcontractor might want his activities on the critical path in situations where cost incentives are
provided for early project completion. Since the critical path ultimately determines project length, it
stands to reason that activities on the path would be the ones that would draw additional funds to
expedite completion. A subcontractor might want his activities off the critical path because of some
error on his part or because he doesn’t want to be bothered by the close monitoring of progress which
often goes with critical path activities.
7. Discuss the graphic presentations in Exhibit 4.11. Are there any other graphic outputs you would
like to see if you were project manager?
The various graphs and charts presented are typical of the graphical techniques for presenting the
necessary data. Most are adaptable to computer programming. The major requirements in the graphics
package include planned activities related to time, a milestone chart to show major achievements, a
breakdown to show how funds were spent plus a plot of actual completion versus planned.
8. Why is it important to use expected value management (EVM) in the overall management of
projects? Compare to the use of baseline and current schedules only.
Using schedules only captures the time aspect of project management. Costs and revenues are also
critical to efficient project management and the overall success of any project. A project may be ahead
of schedule but at an unacceptable cost.
4-2
9. Consider the EVM charts in Exhibit 4.12. Are there any other measures you might want to use in the
management of a project? What are some controllable variables that may affect the costs being
tracked?
Students will likely have multiple answers to these questions. One might be quality defects and their
costs in rework or scrap. Utilization figures for workers and expensive resources might also be useful.
10. What do you think might be some barriers to the successful, effective use of the project
management software packages discussed in the chapter?
Students will have varying answers here, but we would expect them to include training and hiring
personnel with the right technical aptitude as well as the cost of buying and upgrading such systems.
Objective Questions
1. What are the three types of projects based on the amount of change involved?
Derivative, breakthrough, platform.
2. What are the four major categories of projects based on the type of change involved?
Product change, process change, research & development, and alliance & partnership.
3. Match the following characteristics with their relevant project team organizational structures.
B The project is housed within a functional division of the firm. A: Pure project
C A project manager leads personnel from different functional areas. B: Functional project
A Personnel work on a dedicated project team. C: Matrix project
C A team member reports to two bosses.
A Team pride, motivation, and commitment are high.
B Team members can work on several projects.
C Duplication of resources is minimized.
4-3
4. What is the term for a group of project activities that are assigned to a single organizational unit?
Work package
5. The following activities are part of a project to be scheduled using CPM:
a. Draw the network.
6 13 13 15 15 18
C (7) D (2) F (3)
6 13 13 15 16 19
0 6 19 26
G (7)
A (6)
0 6 19 26
6 9 15 19
B (3) E (4)
12 15 15 19
b. What is the critical path?
A-C-D-E-G, also shown in the network above as the bold path.
c. How many weeks will it take to complete the project?
6+7+2+4+7 = 26 weeks
d. How much slack does activity B have?
Activity B has 6 weeks of slack – the difference between its early and late start times.
4-4
6. Schedule the following activities using CPM:
a. Draw the network path.
1 5 5 7 7 9 9 11
B (4) D (2) F (2) G (2)
1 5 5 7 8 10 10 12
12 15
0 1
H (3)
A (1)
12 15
0 1
1 4 7 12
C (3) E (5)
4 7 7 12
A-B-D-E-H, also shown in the network above as the bold path.
c. How many weeks will it take to complete the project?
15 weeks, 1+4+2+5+3
d. Which activities have slack, and how much?
C, 3 weeks; F, 1 week; and G, 1 week.
4-5
7. The R&D department is planning to bid on a large project for the development of a new
communications system for commercial planes. The accompanying table shows the activities, times,
and sequences required:
a. Draw the network diagram.
3 5 5 11
B (2) E (6)
7 9 9 15
0 3 3 7 7 13 13 15 15 18
A (3) C (4) F (6) G (2) I (3)
0 3 3 7 7 13 13 15 15 18
3 7 7 10
D (4) H (3)
3 7 12 15
Note that G has both D and F as immediate predecessors. However, D is redundant because F also has D
as an immediate predecessor.
A-C-F-G-I, and A-D-F-G-I at 18 weeks.
c. Suppose you want to shorten the completion time as much as possible, and you have the option
of shortening any or all of B, C, D, and G each one week. Which would you shorten?
B is not on a critical path and has slack of 4; therefore, do not shorten as it will not change the
project completion time. Shorten C, D, and G one week each. C and D are on parallel critical
paths, reducing them both will only reduce project completion time by 1 week.
4-6
d. What is the new critical path and earliest completion time?
A-C-F-G-I; and A-D-F-G-I remain the critical paths. Project completion time is reduced from 18 to
16 weeks.
8. The following represents a project that should be scheduled using CPM:
a. Draw the network.
TIMES (DAYS)
IMMEDIATE
ACTIVITY PREDECESSORS a m b ET
A — 1 3 5 3 0.4444
B — 1 2 3 2 0.1111
C A 1 2 3 2 0.1111
D A 2 3 4 3 0.1111
E B 3 4 11 5 1.7778
F C, D 3 4 5 4 0.1111
G D, E 1 4 6 3.833 0.6944
H F, G 2 4 5 3.833 0.2500
1 5
5 7
C (2)
0 1
F (4)
1 5
A (3) 12 15
5 7
0 1 1 4 H (3.83)
D (3) 12 15
9 11
4 7
1 4 7 12 G (3.83)
B (2) E (5) 10 12
4 7 7 12
4-7
B-E-G-H
c. What is the expected project completion time?
2.00+5.00+3.833+3.833 = 14.67
d. What is the probability of completing this project within 16 days?
Variance of project completion time is found by adding the variances of activities on the critical
path. .1111 + 1.7778 + .6944 + .2500 = 2.833
(16  14.67)
Z = .79
2.833
P(T<16) = P(Z<.79) = .7852 (From Excel’s NORMSDIST() function)
9. There is an 82 percent chance the project below can be completed in X weeks or less. What is X?
Most Most Most Expected Variance

Activity optimistic likely pessimistic Time
A 2 5 11 5.5 2.25
B 3 3 3 3 0
C 1 3 5 3 .444
D 6 8 10 8 .444
E 4 7 10 7 1
First find the value of Z that results in a probability of .82. Using Excel’s NORMSINV(.82) = .915. Then
find the critical path (ABD) and the variance on the critical path: 2.25+ 0 + .444 = 2.694. Finally, use
equation 5.3 to solve for D.
Paths
4-8
D  16.5
ABD 16.5 .915  D = 18
2.694
ACE 15.5
10. The following table represents a plan for a project:
a. Construct the appropriate network diagram.
Job No. a m b ET 2
1 3 5 10 5.50 1.361
2 2 2 14 4.00 4.000
3 2 5 8 5.00 1.000
4 1 4 10 4.50 2.250
5 1 3 5 3.00 0.444
6 2 4 6 4.00 0.444
7 3 6 12 6.50 2.250
8 1 4 7 4.00 1.000
9 2 6 13 6.50 3.361
10 3 4 5 4.00 0.111
11 1 7 13 7.00 4.000
4-9
5.5 9.5 9.5 12.5
2 (4 ) 5 (3)
14.5 18.5
7.5 11.5 11.5 14.5

8 (4) 18.5 25
14.5 18.5
5.5 10.5 10.5 9 (6 .5) 25
0 5.5 14.5 32
18.5 25
1 (5.5 ) 3 (5) 6 (4) 11 (7 )
0 5.5 10.5 10.5 14.5 25 32

5.5
5.5 10 10 16.5 16.5 20.5
4 (4.5) 7 (6..5) 10 (4)
10 14.5 14.5 21 21 25
b. Indicate the critical path.
1-3-6-8-9-11
c. What is the expected completion time for the project?
5.50+5.00+4.00+4.00+6.50+7.00 = 32
d. You can accomplish any one of the following at an additional cost of $1,500:
(1)Reduce job 7 by two days.

(2) Reduce job 3 by three days.
(3) Reduce job 8 by four days.
If you save $1,000 for each day that the earliest completion time is reduced, which action, if any,
would you choose?
(1) Job 7 is not on the critical path; therefore, reducing its time by two days will not reduce project
completion time.
(2) If you reduce job 3 by three days, then path 1-2-5-8-9-11 becomes critical and the project
length is 30 days. You have saved $2,000 but paid $1,500.
(3) Task 8 is on the critical path, so if you reduce job 8 by four days, then the project length
becomes 28 days. You have saved $4,000 but paid $1,500.
e. What is the possibility that the project will take more than 35 days to complete?
First, you need to compute the variance of the C.P.: 1.361 + 1.000 + 0.444 + 1.000 + 3.361 + 4.000 =
11.167. Then use equation 5.3 to find the correct Z and look its value up in Appendix E.
35  32
Z  0.90 P  .82
11.167
4-10
11. A construction project is broken down into the following 10 activities:
a. Draw the network diagram.

3 4 5 10 10 15
2 (1) 5 (5) 8 ( 5)
8 9 9 14 14 19
0 3 3 5 5 8 12 19 19 25
1 (3) 3 (2) 6 (3) 9 (7) 10 (6)
0 3 7 9 9 12 12 19 19 25
3 8 8 12
4 (5) 7 (4)
3 8 8 12
b. Find the critical path.
1-4-7-9-10, length = 25 weeks
c. If activities 1 and 10 cannot be shortened, but activities 2 and 9 can be shortened to a

minimum of one week each at a cost of $10,000 per week, which activities would you
shorten to cut the project by four weeks?
The one option would be to cut activity 7 by 3 weeks, and then reduce activity 4 by one week.
4-11
Another option would be to reduce activities 4 and 9 by a total of 3 weeks, and then reduce
activity 7 by one week.
12. Here is a CPM network with activity times in weeks:
a. Determine the critical path.
7 12 14 20
B (5) C (6)
9 14 14 20
0 7 11 14 20 26
A (7) G (3) D (6)
0 7 11 14 20 26
7 11 11 19
E(4) F (8)
7 11 12 20
A-E-G-C-D
b. How many weeks will the project take to complete?
26 weeks
c. Suppose F could be shortened by two weeks and B by one week. How would this affect the
completion date?
No difference in completion date. Neither B nor F is on the critical path.
4-12
13. Here is a network with the activity times shown in days:
a. Find the critical path.
6 14 18 23
B (8) F (5)
6 14 20 25
0 6 14 18 23 28
A (6) D (4) G (3)
0 6 14 18 25 28
6 11 18 25
C (5) E (7)
9 14 18 25
A-B-D-E-G
b. The following table shows the normal times and the crash times, along with the associated costs
for each activity.
4-13
If the project is to be shortened by four days, show which activities, in order of reduction would be
shortened and the resulting cost.
Solution:
Activity Normal Crash Time Normal Cost Crash Cost NT-CT Cost/day to
Time (NT) (CT) (NC) (CC) expedite
A 6 5 $7,300 $8,300 1 $1,000
B 8 7 5,300 6,700 1 1,400
C 5 3 9,000 10,600 2 800
D 4 3 3,300 4,100 1 800
E 7 6 2,200 3,600 1 1,400
F 5 4 4,100 7,300 1 3,200
G 3 2 5,200 8,300 1 3,100
First, the lowest cost activities to crash are D at $800 per day. Critical path remains the same. Second,
lowest cost activity on the critical path is A. Crash activity A. Third, B and E are next lowest cost activities
on the critical paths. Both have a cost of $1,400 per day. Select B then E or reverse the order (E then B).
Summary of steps to reduce project by four days:
Step Activity to crash Cost to crash Days saved

1 D $800 1
2 A 1,000 1
3 B (or E) 1,400 1
4 E (or B) 1,400 1
Total $4,600
14. The home office billing department of a chain department stores prepares monthly inventory
reports for use by the stores’ purchasing agents. Given the following information, use the critical
path method to determine:
4-14
a. How long the total process will take.
0 10 20 50
b (10 ) d ( 30 )
10 20 50 80
0 0 80 100 100 100
a (0 ) g ( 20 ) h (0)
0 0 80 100 100 100
0 20 20 40 40 80
c ( 20) e (20 ) f ( 40)
0 20 20 40 40 80
100 hours
b. Which jobs can be delayed without delaying the early start of any subsequent activity?
Activities b and d are not on the critical path. Their start can be delayed without delaying the
start of any subsequent activities. Activity b can be delayed by 10 hours and d can be delayed by
30 hours without affecting the project completion date.
15. For the network shown:
4-15
a. Determine the critical path and the early completion time in weeks for the project.
18 21
D (3 )
6 18
18 21
B (12 )
6 18
0 6 14 17 21 25
A (6 ) E (3 ) G (4)
0 6 18 21 21 25
6 14
C ( 8)
10 18
14 17
F ( 3)
18 21
A-B-D-G, 6+12+3+4 = 25 weeks
b. For the data shown, reduce the project completion time by three weeks. Assume a linear cost
per week shortened, and show, step by step, how you arrived at your schedule.
4-16
Solution:
Activity Normal Normal Cost Crash Time Crash Cost NT-CT Cost/week
Time (NT) (NC) (CT) (CC) to expedite
A 6 $7,400 5 $13,500 1 $6,100
B 12 12,200 7 18,300 5 1,220
C 8 5,800 6 7,000 2 600
D 3 4,600 1 6,000 2 700
E 3 3,200 2 6,700 1 3,500
F 3 7,000 2 7,500 1 500
G 4 8,000 3 8,400 1 400
First, reduce G (lowest cost activity on the critical path) by one week. Second, crash activity D by one
week. Critical paths remain the same. Third, crash activity D by one more week at a cost of $700, which
is the least expensive.
Summary of activities crashed:
Step Activity Cost to crash Weeks reduced

1 G $400 1
2 D 700 1
3 D 700 1
Total cost $1,800
16. The following CPM network has estimates of the normal time in weeks listed for the activities:
4-17
a. Identify the critical path.
5 8 15 21
B (3) F (6)
8 11 15 21
0 5 11 15 21 26
A (5) D (4) G (5)
0 5 11 15 21 26
5 11 15 18
C (6) E (3)
5 11 18 21
A-C-D-F-G
b. What is the length of time to complete the project?
5+6+4+6+5 = 26 weeks
c. Which activities have slack, and how much?
B, 3 weeks; E, 3 weeks.
d. Here is a table of normal and crash times and costs. Which activities would you shorten to cut
two weeks from the schedule in a rational fashion? What would be the incremental cost? Is the
critical path changed?
Solution:
Activity Normal Crash Time Normal Cost Crash Cost NT-CT Cost/week
Time (NT) (CT) (NC) (CC) to expedite
A 5 4 $7,600 $8,700 1 1,100
B 3 2 5,700 8,400 1 2,700
4-18
C 6 5 7,800 9,400 1 1,600

D 4 3 2,650 3,800 1 1,150
E 3 2 2,500 4,400 1 1,900
F 6 4 5,800 8,600 2 1,400
G 5 4 3,800 5,500 1 1,700
First, shorten activity A by one week at a cost of $1,100. This is the lowest cost/week activity on the
critical path. Second, shorten activity D by one week at a cost of $1,150. This is the next lowest
cost/week activity on the critical path. The total cost is $2,250 and the critical path remains
unchanged.
17. Bragg’s Bakery is building a new automated bakery in downtown Sandusky. Here are the activities
that need to be completed to get the new bakery built and the equipment installed.
a. Draw the project diagram.
4-19
B ( 3) D (10)
A (4)
F (2)
C (5) E (4 )
b. and c. What is the normal project length? What is the project length if all activities are crashed to
their minimum?
Solution:
Path Normal Length Crashed Length

ABDF 19 12
ACDF 21 13
ACEF 15 09
d. Bragg’s loses $4,000 in profit per week for every week the bakery is not completed. How many weeks
will the project take if we are willing to pay crashing cost as long as it is less than $4,000?
We would only crash the project until 14 weeks since the cost of crashing F is $5600 which is greater than
the $4000 in additional profit.
LENGTH
ABDF - 19 18 17 16 15 15 15 14 13
ACDF - 21 20 19 18 17 16 15 14 13
ACEF - 15 15 15 15 15 14 13 12 11
Activity Crashed D D D D C C A F
Crash cost 2000 2000 2000 2000 3800 3800 3900 5600
Cumulative Cost 2000 4000 6000 8000 11800 15600 19500 25100
4-20
18. Assume the network and data that follow:
a. Construct the network diagram.
Activity Normal Crash Time Normal Cost Crash Cost NT-CT Cost/week
Time (NT) (CT) (NC) (CC) to expedite
A 4 3 $140 $180 1 40
B 5 3 70 100 2 15
C 4 1 90 120 3 10
D 3 2 90 150 1 60
E 5 3 40 50 2 5
F 8 5 100 190 3 30
G 9 8 60 120 1 60
4 9 9 14
43
B (5) E (5)
5 10 10 15
0 4 4 8 15 24
0
A (4) C (4) G (9)
0 4 11 15 15 24
3
4 7 7 15
2
D (3) F (8)
4 7 7 15
7
4-21
b. Indicate the critical path when normal activity times are used.
The critical path is A-D-F-G, with a length of 4+3+8+9 = 24
c. Compute the minimum total direct cost for each project duration based on the cost associated
with each activity. Consider durations of 19, 20, 21, 22, 23, and 24 weeks.
The normal time project cost is $590 at 24 weeks. Minimum cost crashing to 19 weeks is shown
below.
LENGTH
ABEG - 23 23 22 21 20 19
ACG - 17 17 17 17 16 15
ADFG - 24 23 22 21 20 19
Activity Crashed F E+F E+F A G
Crash cost 30 35 35 40 60
Cum. Crash Cost 30 65 100 140 200
Total Direct Cost 620 655 690 730 790
d. If the indirect costs for each project duration are $400 (24 weeks), $350 (23 weeks), $300 (22
weeks), $250 (21 weeks), $200 (20 weeks), and $150 (19 weeks), what is the total project cost
for each duration? Indicate the minimum total project cost duration.
Computations build off the earlier table and are shown below. The total project cost in normal
time is $590 + $400 = $990.
LENGTH
ABEG - 23 23 22 21 20 19
ACG - 17 17 17 17 16 15
ADFG - 24 23 22 21 20 19
Activity Crashed F E+F E+F A G
Crash cost 30 35 35 40 60
Cum. Crash Cost 30 65 100 140 200
Total Direct Cost 620 655 690 730 790
Indirect Cost 350 300 250 200 150
Total Project Cost 970 955 940 930 940
We can achieve minimum cost by reducing the project to 20 weeks. The duration has the total cost of
$930.
4-22
19. Your project to obtain charitable donations is now 50 days into a planned 60-day project.
The project is divided into 3 activities. The first activity is designed to solicit individual
donations. It is scheduled to run the first 44 days of the project and to bring in $26,300. Even
though we are 50 days into the project, we still see that we have only 88 percent of this activity
complete. The second activity relates to company donations and is scheduled to run for 50 days
starting on day 6 and extending through day 56. We estimate that even though we should have
(44/50) 88 percent of this activity complete, it is actually only 55 percent complete. This part of
the project was scheduled to bring in $151,300 in donations. The final activity is for matching
funds. This activity is scheduled to run the last 10 days of the project and has not started. It is
scheduled to bring in an additional $52,600. So far $175,600 has actually been brought in on
the project.
Calculate the schedule variance, schedule performance index, and cost (actually value in
this case) performance index. How is the project going? Hint: Note that this problem is
different since revenue rather than cost is the relevant measure. Use care in how the measures
are interpreted.
Solution:
Planned Planned Expected Actual

Expected Planned Start Comp. % Actual % Rev. to
Activity Revenue Duration Date Date Complete Complete Date
1. Solicit $26,300 44 0 44 100% 88%
2. Donations $151,300 50 6 56 88% 55%
3. Matching
$52,600 10 50 60 0% 0%
Funds
Total $230,200 $175,600
BCWS
Activity 1 100% of $26,300 = 26,300

Activity 2 88% of $151,300 = 133,144
Activity 3 0 % of 52,600 = 0
$159,444
BCWP
Activity 1 88% of 26,300 = 23,144

Activity 2 55% of 151,300 = 83,215
Activity 3 0% of $52,600 =0
106,359
4-23
Scheduled Variance = 106,359 - 159,444 = -53,085

Scheduled Performance Index = 106,359/159,444 = .667
Cost Variance = 106,359 - 175,600 = -69,241

Cost Performance = 106,359/175,000 = .606
Because we are working with revenues instead of costs, we have to invert the evaluation rules
listed in the text. Our performance measures here are actually good. Although we are behind
schedule on completing tasks 1 and 2, we have brought in more money than expected for the
amount of work we have completed.
20. A project to build a new bridge seems to be going very well since the project is well
ahead of schedule and costs seem to be running very low. A major milestone has been reached
where the first two activities have been totally completed and the third activity is 70 percent
complete. The planners were only expecting to be 57 percent through the third activity at this
time. The first activity involves prepping the site for the bridge. It was expected that this would
cost $1,426,000 and it was done for only $1,306,000. The second activity was the pouring of
concrete for the bridge. This was expected to cost $10,506,000 but was actually done for
$9,006,000. The third and final activity is the actual construction of the bridge superstructure.
This was expected to cost a total of $8,506,000. To date they have spent $5,006,000 on the
superstructure.
Calculate the schedule variance, schedule performance index, and cost index for the
project to date. How is the project going?
Solution:
Expected
Expected % Actual % Actual Cost
Activity Cost Complete Complete to Date
1. Site preparation $1,426,000 100% 100% $1,306,000
2. Pour concrete $10,506,000 100% 100% $9,006,000
3. Construction $8,506,000 57% 70% $5,006,000
Total $20,438,000 $15,318,000
BCWS
Activity 1 100% of $1,426,000 = $1,426,000

Activity 2 100% of $10,506,000 = $10,506,000
Activity 3 57 % of $8,506,000 = $4,848,420
$16,780,420
4-24
BCWP
Activity 1 100% of $1,426,000 = $1,426,000

Activity 2 100% of $10,506,000 = $10,506,000
Activity 3 70 % of $8,506,000 = $5,954,200
$17,886,200
Scheduled Variance = 17,886,200-16, 780,420 = 1,105,780

Scheduled Performance Index = 17,886,200/16,780,420 = 1.066
Cost Performance = 17,886,200/15,318,000 = 1.168
Ahead of schedule and under budget.
21. What feature in project management information systems can be used to resolve overallocation
of project resources?
Leveling
22. What was the first major project management information system that is now commonly used
for managing very large projects?
Primavera Project Planner
23. What type of chart compares the current project schedule with the original baseline schedule so
that deviations from the original plan can be easily noticed?
Tracking Gantt chart
Analytics Exercise: Product Design Project
1, 2.
4-25
0 2
P1 (2)
0 2 16 22 22 32 35 37
2 6 S2 (6) V1 (10) V2 (2)
P2 (4) 19 25 25 35 35 37
2 6
6 11 21 22
P3 (5) D1 (1)
6 11 23 24
11 16 16 21 21 22 23 27 27 30 31 35
P4 (5) S1 (5) D3 (1) D4 (4) I1 (3) I4 (4)
11 16 16 21 23 24 24 28 28 31 31 35
21 23 23 27 27 31
D2 (2) I2 (4) I3 (4)
21 23 23 27 27 31
The project will take 37 weeks to complete.

The critical path is P1-P2-P3-P4-S1-D2-I2-I3-I4-V2.
3. Slack for each activity is listed in the following table.
Activity Duration
Major Subprojects/Activities ID Dependencies (Weeks) ES, LS Slack
Project Specifications (P) 16
Market research P1 -- 2 0, 0 --
Overall product specification P2 P1 4 2, 2 --
Hardware P3 P2 5 6, 6 --
Software P4 P3 5 11, 11 --
Supplier specifications (S) 6
Hardware S1 P4 5 16, 16 --
Software S2 P4 6 16, 19 3
Product design (D) 6
Battery D1 S1 1 21, 23 2
Display D2 S1 2 21, 21 --
Camera D3 S1 1 21, 23 2
Outer cover D4 D1, D2, D3 4 23, 24 1
Product integration (I) 12
Hardware I1 D4 3 27, 28 1
User interface I2 D2 4 23, 23 --
Software coding I3 I2 4 27, 27 --
Prototype testing I4 I1, I3 4 31, 31 --
Subcontracting (V) 12
Supplier selection V1 S1, S2 10 22, 25 3
Contract negotiation V2 I4, V1 2 35, 35 --
4-26
4. Assume that the activity lengths remain the same, but the precedence relationships within subprojects no
longer apply as all activities in a subproject will be worked on in parallel. Therefore, the length of each
subproject will now be equal to the length of the longest activity in the subproject. The subprojects are
outlined in dashed lines in the network drawing above.
Subproject P will take 5 weeks to complete; subproject S, 6 weeks; D, 4 weeks; I, 4 weeks; and V, 10
weeks. Since all of these subprojects will completed in series now, the length of the project is the
sum of the subproject times: 5+6+4+4+10 = 29 weeks, a decrease of 8 weeks.
5. The revised network diagram is shown below. Adding P5 extends the time of subproject P to 12 weeks while
subprojects D and I remain at 4 weeks each. By eliminating subprojects S and V, the project length is now
down to 20 weeks – 17 weeks less than the original schedule.
0 2
P1 (2)
10 12
0 4 12 13
P2 (4) D1 (1)
16 19 16 20
8 12 0 12 15 16
5 I1 (3) I4 (4)
0 5 12 13 12 16
P5 (12)
D3 (1) D4 (4) 17 20 16 20
P3 (5)
0 12
16 20 16 20
7 12 15 16 12 16
0 5 12 14 I2 (4) I3 (4)
4
P4 (5) D2 (2) 16 20 16 20
7 12 14 16
4 weeks
12 weeks 4 weeks
6. Having the team focus on a single subproject at a time will allow more collaboration on each subproject
as opposed to the team being split across several subprojects. This might result in higher quality of work
as the entire project team is focused on a single subproject at a time and you will have more input and a
wider variety of experiences working on each subproject than you would otherwise.
By combining subprojects S and V with P, Nokia can perhaps take advantage of supplier expertise in
designing the new phone. Nokia would better understand the technological capabilities of their
suppliers and include them in the phone design from the beginning.
One concern might be the feasibility of eliminating the original precedence relationships when
changing to the new project structures in parts 4 and 5. Assuming there were good reasons for those
relationships originally, eliminating them might cause problems in the project if Nokia does not fully
address those reasons in the new project structure. For example, if they select suppliers and
negotiate contracts before the product specifications are complete, and they do not include their
suppliers in the product specification process, they might end up with a supplier that cannot supply
the needed materials nor do so at the proper level of quality.
Assuming the technical/managerial precedence issues are properly addressed, the new project
structures make sense. In addition to reducing project time, there are other possible benefits to be
gained from the increased collaboration the new structures would bring.
4-27

Project Management: Discussion Questions

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project Management: Discussion Questions

Uploaded by

Copyright:

Available Formats

Chapter 04 – Project Management

2. What are some reasons project scheduling is not done well?

Project characteristics necessary for critical path scheduling to be applicable are:

a. Defined project beginning and ending

b. Well-defined jobs whose completion marks the end of the project.

e. An activity once started is allowed to continue without interruption until it is completed.

5. “Project control should always focus on the critical path.” Comment.

Derivative, breakthrough, platform.

A Personnel work on a dedicated project team. C: Matrix project

C A team member reports to two bosses.

A Team pride, motivation, and commitment are high.

B Team members can work on several projects.

C Duplication of resources is minimized.

5. The following activities are part of a project to be scheduled using CPM:

a. Draw the network.

C (7) D (2) F (3)

b. What is the critical path?

A-C-D-E-G, also shown in the network above as the bold path.

c. How many weeks will it take to complete the project?

d. How much slack does activity B have?

6. Schedule the following activities using CPM:

a. Draw the network path.

B (4) D (2) F (2) G (2)

b. What is the critical path?

A-B-D-E-H, also shown in the network above as the bold path.

c. How many weeks will it take to complete the project?

d. Which activities have slack, and how much?

C, 3 weeks; F, 1 week; and G, 1 week.

a. Draw the network diagram.

A (3) C (4) F (6) G (2) I (3)

b. What is the critical path?

A-C-F-G-I, and A-D-F-G-I at 18 weeks.

d. What is the new critical path and earliest completion time?

8. The following represents a project that should be scheduled using CPM:

a. Draw the network.

b. What is the critical path?

c. What is the expected project completion time?

d. What is the probability of completing this project within 16 days?

P(T<16) = P(Z<.79) = .7852 (From Excel’s NORMSDIST() function)

Most Most Most Expected Variance

10. The following table represents a plan for a project:

a. Construct the appropriate network diagram.

5.5 9.5 9.5 12.5

7.5 11.5 11.5 14.5

0 5.5 10.5 10.5 14.5 25 32

5.5 10 10 16.5 16.5 20.5

4 (4.5) 7 (6..5) 10 (4)

b. Indicate the critical path.

c. What is the expected completion time for the project?

(1)Reduce job 7 by two days.

11. A construction project is broken down into the following 10 activities:

a. Draw the network diagram.

1 (3) 3 (2) 6 (3) 9 (7) 10 (6)

b. Find the critical path.

1-4-7-9-10, length = 25 weeks

c. If activities 1 and 10 cannot be shortened, but activities 2 and 9 can be shortened to a

12. Here is a CPM network with activity times in weeks:

a. Determine the critical path.

A (7) G (3) D (6)

b. How many weeks will the project take to complete?

No difference in completion date. Neither B nor F is on the critical path.

13. Here is a network with the activity times shown in days:

a. Find the critical path.