Group Assignment II

Question1: Project Management: Net work Models

1. The RELIABLE CONSTRUCTION COMPANY has just made the winning bid of $5.4
million to construct a new plant for a major manufacturer. The manufacturer needs the plant
to go into operation within a year. Therefore, the contract includes the following provisions:
• A penalty of $300,000 if Reliable has not completed construction by the deadline 47
weeks from now.
• To provide additional incentive for speedy construction, a bonus of $150,000 will be paid
to Reliable if the plant is completed within 40 weeks.
Reliable is assigning its best construction manager to this project to help ensure that it stays on
schedule. The project manager looks forward to the challenge of bringing the project in on
schedule, and perhaps even finishing early. However, since he is doubtful that it will be feasible
to finish within 40 weeks without incurring excessive costs, he has decided to focus his initial
planning on meeting the deadline of 47 weeks. The following tables show the list of the various
activities and cost related information.
Table 1. Activity related information
Activity Activity description Immediate Estimated duration
Predecessor in weeks
A Evacuate - 2
B Lay the foundation A 4
C Put up the rough wall B 10
D Put up the roof C 6
E Install the exterior plumbing C 4
F Install the interior plumbing E 5
G Put up the exterior sliding D 7
H Do the exterior painting E,G 9
I Do the electric work C 7
J Put up the wallboard F,I 8
K Install the flooring J 4
L Do the interior painting J 5
M Install the exterior fixtures H 2
N Install the interior fixtures K,L 6

1
Given all the information in the two tables above and other information, answer the following
questions.
1. Draw Network Diagram using AOA (Activity on Arrow) convention.
2. What is expected project duration and Identify critical activities?
4. Which are the critical bottleneck activities where any delays must be avoided to prevent
delaying project completion?
5. For the other activities, how much delay can be tolerated without delaying project completion?
7. Given the uncertainties in accurately estimating activity durations, what is the probability
of completing the project by the deadline?
8. Prepare the project crashing Schedule
9. Do you think Reliable enjoy the incentive or bear the penalty? Why?
Question2

Discuss on Inventory models (both dependent and independent) and support the models with
examples.

Question 3

Solve the following problem

a. Using Branch and Bound and enumeration Method,

Zmin = 15x1 + 10x2 +12x3

2
 S. To:

4x1 + 6x2 + 5x3 > 60

3x1 + x2 + x3 > 18

All variables > 0 and integer

b. How would the solution in (a) above vary if the problem were Binary.

Question 4

Discuss about simulation models and situations in which they could be applicable. Discuss also
about Monte Carlo Model of Simulation Models.

Question 5.

What are main components of waiting/queuing lines model and where do you think these models
could be applicable.