Project Management

1. By Avanté Graves
Jason McFarland
Tetyana Ilashvili
Anthony Harding
Chrisin Headley
Group # 7 Project Management
Due Date 2-19-13

2.  SWU President has decided to expand
the current stadium
 Contractor has 270 days to complete
the addition before next football
season starts
 Consequences for being late include
$10,000.00 penalty for every day late
and ruining his company name.
 To ensure success Mr. Hill wants to be
75% sure they will finish within 270
days
 More than that he wants to finish
early and wants cost figures for a
target date of 250 days and 240 days.

3. Bob Hill wants a confidence of at lease 75% that the project will
be completed before the 270th day
If confidence is less then 75% then the project will be crashed.
Mr. Hill wants to see a comparison for target dates of 240 and
250 days along the cost difference.
1. Identify activity durations
2. Construct a network diagram
3. Determine the probability of completion in less than 270 days
4. If required crash project to desired duration and calculate
additional cost to the project.

4. Calculate the Expected time and Variance for each activity
Time Estimates (Days)
a m b t
Expected
Activity Description Predecessors Optimistic Most Likely Pessimistic Time Variance Crash Cost/Day ($)
Bonding, insurance, tax
A structuring 20 30 40 30 11.1 $1,500
Foundation, concrete footings
B for boxes A 20 65 80 60 100.0 $3,500
Upgrading skyboxes, stadium
C seating A 50 60 100 65 69.4 $4,000
Upgrading walkways,
D stairwells, elevators C 30 50 100 55 136.1 $1,900
E Interior wiring, lathes B 25 30 35 30 2.8 $9,500
F Inspection approvals E 1 1 1 1 0.0 $0
G Plumbing D,E 25 30 35 30 2.8 $2,500
H Painting G 10 20 30 20 11.1 $2,000
Hardware/air conditioning/
I metal work H 20 25 60 30 44.4 $2,000
J Tile/carpeting/windows H 8 10 12 10 0.4 $6,000
K Inspection J 1 1 1 1 0.0 $0
L Final detail work/ cleanup I,K 20 25 60 30 44.4 $4,500
Expected activity time (t) : t= (a+4m+b)/6
Variance of activity completion time:
Variance = ((b-a)/6)2

5. Determine the critical path using the expected time
Identify critical path
Activity ES EF LS LF SLACK Critical
A 0 30 0 30 0 Y
B 30 90 60 120 30 N
C 30 95 30 95 0 Y
D 95 150 95 150 0 Y
E 90 120 120 150 30 N
F 120 121 254 255 134 N
Expected days for completion: 260 days
G 150 180 150 180 0 Y
H 180 200 180 200 0 Y
I 200 230 200 230 0 Y
J 200 210 219 229 19 N
K 210 211 229 230 19 N
L 230 260 230 260 0 Y

6. Determine project standard deviation
Time Estimates (Days)
a m b t
Expected
Activity Description Predecessors Optimistic Most Likely Pessimistic Time Variance Crash Cost/Day ($)
Bonding, insurance, tax
A structuring 20 30 40 30 11.1 $1,500
Foundation, concrete footings
B for boxes A 20 65 80 60 100.0 $3,500
Upgrading skyboxes, stadium
C seating A 50 60 100 65 69.4 $4,000
Upgrading walkways,
D stairwells, elevators C 30 50 100 55 136.1 $1,900
E Interior wiring, lathes B 25 30 35 30 2.8 $9,500
F Inspection approvals E 1 1 1 1 0.0 $0
G Plumbing D,E 25 30 35 30 2.8 $2,500
H Painting G 10 20 30 20 11.1 $2,000
Hardware/air conditioning/
I metal work H 20 25 60 30 44.4 $2,000
J Tile/carpeting/windows H 8 10 12 10 0.4 $6,000
K Inspection J 1 1 1 1 0.0 $0
L Final detail work/ cleanup I,K 20 25 60 30 44.4 $4,500
319.4

7. Determine confidence level for the project
Due date - Expected date of completion
Z=
σ
270 - 260
17.87
Z= 0.5595 ------> 0.71226
Z= Due date - Expected date of completion
Z= Due date - Expected date of completion
σ
σ
270 - 240
270 - 250
17.87
17.87
Z= 1.6785 ------> 0.95254
Z= 1.1190 ------> 0.8665

8. Analysis
Crash project to 250 days
Activity ES EF LS LF SLACK Critical
A 0 20 0 20 0 Y
B 20 80 50 110 30 N
C 20 85 20 85 0 Y
D 85 140 85 140 0 Y
E 80 110 110 140 30 N
F 120 121 249 250 129 N Crash A for 10 days down to 20 days
G
H
140
170
170
190
140
170
170
190
0
0
Y
Y
10 days*$1,500 = $15,000
I 190 220 190 220 0 Y
J 190 200 219 229 29 N
K 210 211 249 250 39 N Total extra cost = $15,000
L 220 250 220 250 0 Y

9. Crash project to 240 days
Activity ES EF LS LF SLACK Critical
A 0 20 0 20 0 Y
B 20 80 40 100 20 N
C 20 85 20 85 0 Y
D 85 130 85 130 0 Y Crash A for 10 days down to 20 days
E 80 110 100 130 20 N
F 120 121 239 240 119 N
10 days*$1,500 = $15,000
G 130 160 130 160 0 Y Crash D for 10 days down to 10 days
H 160 180 160 180 0 Y
I 180 210 180 210 0 Y 10 days*$1,900 = $19,000
J 180 190 229 239 49 N
K 190 191 239 240 49 N
L 210 240 210 240 0 Y Total cost = $34,000

10. Develop a network drawing for Hill Construction and determine the critical path.
How long is the project expected to take?
The project is expected to take 260 days.

12.  In order to crash the project to 250 days, task A can
be reduced by 10 days which will have an additional
cost of $15,000 with an 86% chance that the project
will be completed by 270th day.
 To crash the project to 240 days, both tasks A and D
can be reduced by 10 days that would create an
additional cost of $34,000 for the project and
increase the chance for completion to 95%.

13.  The project expected completion date is 260
days.

14.  There is a 71.23% chance that the stadium will
be in place with the 270 day deadline
 Pert can easily find the probability of finishing
by any date Southwestern University is
interested in.

15.  7 activites (A,C,D,G,H,I,L) are on the critical
path.
 If any one of them is delayed for any reason,
the entire project will be delayed

16.  5 activities (B,E,F,J,K) are not critical but have
some slack time built in.
 This means Southwestern University can
borrow from their resources, if needed,
possibly to speed up the entire project

17.  A detailed schedule of activity starting and
ending dates (See Schedule and Slack Table)
Activity ES EF LS LF SLACK Critical
A 0 20 0 20 0 Y
B 20 80 40 100 20 N
C 20 85 20 85 0 Y
D 85 130 85 130 0 Y
E 80 110 100 130 20 N
F 120 121 239 240 119 N
G 130 160 130 160 0 Y
H 160 180 160 180 0 Y
I 180 210 180 210 0 Y
J 180 190 229 239 49 N
K 190 191 239 240 49 N
L 210 240 210 240 0 Y

18.  We would have to crash the project if it is below 75%
confidence. According to the analysis on slide #7, with
the expected date of completion being 260 days,
there is only a 71.23% chance of it being finished
within that deadline.
 Considering the chance of the stadium being finished
in the 270 day deadline is only 71.32%, other deadlines
need to be looked at and considered as well as taking
advantage of the slack time built in to the activities
that are not critical to the building process.
 In order to speed up the building process and make
the deadline on time, the company may want to use
the resources supplied to them.

19.  According to slide #7, there is a better chance
of the building project being finished when
the expected date of completion is 240 days
at a 95.25% confidence. Crashing the project
to 240 days seems to be the most beneficial
according to time. The costs will increase,
however, considering the only concern of the
coach is to have the field ready for opening
day, crashing the deadline to 240 days is what
is best.