Assignment 1:

GADGET TOY COMPANY

Kumar, project manager at Gadget Toy Company (Gadget), had just submitted a proposal for funding
to the new product review committee. He recommended that Gadget introduce, through its retail
distribution network, a new children‘s toy based on a popular cartoon character. Kumar felt that if
he could get the product out by Christmas, Gadget could take advantage of what he felt would be
strong market demand. He estimated that the sales could reach $200,000. However, due to the
volatility of the market for these types of games, Kumar could not be certain that the product would
have the same level of market acceptance the following year. It was now May 6, 2019, and Kumar
knew he would have to manage the timing of the project carefully to meet the delivery date of
September 13th, 2019 just 19 weeks away.

Gadget‘s head office was in Klang, Selangor, where it also operated a manufacturing plant and
distribution center. Whenever possible, Gadget preferred to manufacture its products in-house.

Kumar expected feedback from the committee the end of the week, at which time he would begin
coordinating the launch of the project. Since Kumar was an experienced project manager, he
established a preliminary list of activities, as shown in Exhibit 1.

Based on his schedule, Kumar felt he could start work on some activities immediately, such as
finalizing the product design and placing an order for the equipment. However, many of the
activities had to be performed sequentially. For example, he could not train the workers until the
equipment was installed and the tools for the machine were completed. Similarly, he could not
order the raw material until the engineering work was complete and the advertising plan was
completed, since the advertising plan would influence colour selection.

Concerned about the delivery schedule, Kumar investigated opportunities to cut the project time.
After talking with the marketing manager, Sheila, Kumar learned that he could reduce product
advertising. Sheila anticipated only a small 1% reduction in sales for each week of lost advertising.
However, she indicated that Kumar could not get away with less than six weeks of advertising for a
new product of this nature.

Kumar also spoke with Steven, the production manager at the tool shop. Steven offered to speed up
the tool build by working two weekends, for a total cost of $10,000. Steven thought he could
improve their delivery time by two weeks if Kumar authorized thisextra cost.
QUESTION 1: Prepare the network diagram for the above project. How long will
it take to complete the project?

Network Diagram as per attached below. According to Microsoft Project Gantt Chart,
the project would take 100 days to complete. However, because it will take 20 weeks
to complete, it will surpass the project’s planned implementation duration of 19
weeks and completion date of 13 September 2019.

Figure 1 : Network Diagram from Microsoft Project

Figure 2 : Initial Network Diagram

QUESTION 2 : Establish the ‘float’ or ‘slack’ times for each activity.

Figure 3 : Slack times for each activity

QUESTION 3 : Based on the information in the case study, evaluate the
options Kumar can do to meet the September 15th deadline.
What is your recommendation?

There are two (2) options or alternatives that Kumar can do to meet the set dateline
date. Kumar can shorten the project timeline by :
a. Reduce the time spend on product advertising activities (the 10th
activity in the project schedule). Currently, the duration for product
advertising activities is scheduled for 12 weeks
b. Speed up the tool build (the D4 activity in the project schedule) by
working two weekends, but with the increment cost of $10,000.
Currently, the duration for tool build activities is also scheduled for 12
weeks.
Based on the project schedule in Microsoft Project, tool build activities are
identified as critical task while product advertising activities is not.
Kumar can meet the deadline by using option (b), however, he only needs to
spend half of the stated amount ($5,000) as he only needs one (1) week from
the overall project schedule to reach the set deadline.

Figure 4 : Reduce D4 by 1 week to meet set deadline