ASSIGNMENT – 1

Operations management

SUBMITTED BY: Fatima Ashfaq

2314-BC-2018
B.com (hons.)
Semester- 7
Section- B
SUBMITTED TO: Sir Ali Hussain Farooq.

Department Of Commerce And Finance

Government College University, Lahore
 PROJECT DESTINY ( Romet limited )
INTRODUCTION
The president and chief executive officer of Romet Limited, was getting ready for an assignment
group assembly that might begin at 1:00 p.m. that afternoon. It became Friday April 27, 2018,
and he had simply finalized the architectural layout and format for the company's new plant.
The lease for the contemporary plant might expire on the quilt of that year, and he became
reviewing the activities that are required to finish the plant relocation assignment. The plant
relocation become named "Project Destiny." Recognizing that extending the crowning glory
past the quilt of the rent become impossible, he become worried approximately having the
ability to finish the assignment on time without growing costs.
In the meeting, he defined all the activities that need to be completed within the time
constraints in a sequential manner as follow
The network diagram/ program evaluation and review technique chart for the above-mentioned
activities is as follow

The early start, early finish, late start, late finish and total slack of the network diagram is as follow

Activities Estimated Early start Early finish Late start Late finish Total slack
time available
(weeks)
A 4 0 4 0 4 0
B 10 4 14 4 14 0
C 8 4 12 6 14 2
D 16 14 30 17 33 3
E 16 14 30 14 30 0
F 14 14 28 19 33 5
G 2 30 32 33 35 3
H 4 30 34 39 43 9
I 1 32 33 35 36 3
J 6 33 39 36 42 3
K 1 39 40 42 43 3
L 12 30 42 30 42 0
M 12 30 42 30 42 0
N 1 42 43 42 43 0
O ---- 43 43 43 43 0
Critical path for the project will be

Critical path Total time required

ABELNO 43
ABEMNO 43
CONCLUSION
As romet limited wants to complete the project in 32 weeks as their lease is expiring soon but the total
time required to complete the project is 43 weeks Romet needs to crash some activities from the critical
path to complete the project on the allocated time.
 THE ABC’s OF CRITICAL PATH METHOD
SUMMARY
Today businesses have a very immense list of activities in a project that needs to be sorted in a
good manner in order to make the project effective and for this purpose managers usually use
the technique of CPM that allows them to analyze the activities on the basis of a network
diagram that consist of the following features
• Each job necessary for the completion of the project is identified with a unique shape
within which it states the symbol used for the specific activity either an alphabet or a
number along with the time required for its completion.
• The jobs are arranged in technological order with their immediate predecessors.
• Sequence of the jobs is identified with the help of the arrows.
• For ease, the activities with no predecessor and successor are joined with an extra circle
marked as START and FINISH.
• The critical path is the longest path with zero slack (early start- late start= 0).it indicates
the minimum time required to complete the whole project.
EXAMPLE, BUILDING A HOUSE
A typical example of construction of a house will be relevant to explain the whole process of
CPM. In this example the network diagram shows around 22 unique paths ranging from time
period of minimum 14 days to maximum 34 days. Th one with 34 days is the critical path i.e.,
ABCDJKLNTSX. After making the network diagram the contractor will find to the early start,
early finish, late start and late finish of the project by following the following rules
• For each action with no predecessors, set the ES to 0.
• For all activities, set EF = ES + predicted duration.
• For each activity with predecessors, set ES = greatest EF time for all actions immediately
preceding it.
Following these calculations, an ES and EF will be computed for each activity on the network.
Then, We begin at the network's end and set:
• LF time for the most recent activity or activities in the network equal to the EF time of
the most recent activity, or sometimes to the project's agreed-upon deadline
• Set LS = LF - anticipated duration for all activities.
• Set LF = smallest LS for all actions immediately following any activity having successors.
After finding out the above-mentioned credentials the slack time of ach activity will be obvious
and the critical path will be determined.
HANDLING DATA ERRORS
All the data is gathered on budgeting basis none of the time is obvious to the manager itself.
This situation may give rise to some errors like error in estimated times of jobs, error in
identifying the predecessors and it might be over or under looked sometimes.
A computer algorithm is developed to check these errors of prerequisites timely and the error
of wrong time estimation can only be solved by keen observations.
COST CALCULATIONS
The cost of the project can be easily determined by the job data if the cost for every single job
is mentioned. If the speed of the project depends on the number of people in the crew the
contractor can sped up the process by adding people in the crew and same goes for other
means but any change will acquire some cost that will be needed to crash that particular
activity and is termed as ‘Crashed cost’
NEW DEVELOPMENTS
Both CPM and PERT have gone through developments in past few years, that is done on the
behalf f majorly the air forces. Following are some developments made
• Author, Weist has developed some extensions called SPAR for scheduling programs with
limited resources.
• RAMPS for resource allocation and multipurpose scheduling.
• Th most recent is PERT/COST, developed by armed services that enables the scheduling
of time as well as the cost of the project.