Appendix 2 Computer project Exercises 6i1 Part B You have told Robin Lane that based on what you know now you need to revise theestimates for some of thetemaining activities. tietailed proau.io.rign is expected totake 3 days longer than planned. g;ito nrototypeg ir.*p..t JilJut z auyr less thanplanned and Finarized product Design is expliftg 1o tut l auv, r*e.r than pranned.Final Manufacturins process i, e*p.&eJtotkg 2 day;l;;s tffiiunn.a, while InstalProduction Equipm"ent is 19w;il;;;, take only 30 days. you also report thatDetailed Marketins nlan will u. compr.tealefore the end;iifu N.* year. She is in-sisting that t[: proi..t.u.."*pilil;;**ruo rTth in ora..to be ready for the Lasvegas show. she is willing to spend $5bp00 from rtr"""g.n,.r,-i.r.ru., to expediteshipping if necessarv. $25,000 wouta,Juce the shipffi;i;;;;"r.nts by 5 daysandtor $2s,000 *ouid '.oir* tr,*r,,ppidl.-;;'fil;?;;ffi: by 5 days (Hint:Adjust tag). prepare a memo to Robinih;;"ddr.;ilth; fbifi#;resrions: 1' what is the impact of the revised estimates for Finalized product Design andInstall Production Equipment on the project,.f,rarf, ura.o"rtZ 2' would you recommend authori zingtheexpenditure of $50,000? Explain. 3' what, if any other r.ecommendations, wourd you make ,o ihut the project canachieve Robin,s deadline? Justify your r..o_.endations. Include a Tracking Gantt chart with variance schedure that depicts your finalrecommendations and revised schedule. Hint: After adjusting the Instailation of production Equipment and Finalized prod_uct Design, level outside of slack to eliminate any resource over allocation problems. Project Description The. new c_omputer-controlred conveyor bert is an exciting project that moves andpositions items on the conveyor beli within <l mil1ime6i. ri. proi.ct will pro-duce a new system for future instalrations, and for replacement of those in thefield, at a 1ow cost. The comput.r-.ortiott.a .or*v*i;il;; ;-. potentiar to bea critical unit in 30 perce.nt.oi the systems rnstarreiln racto;ff. il. new sysrem isalsoeasier to update with future t..t notogi"r. The Project priority Matrix for the coriu.yor Belt project (cBp) is: Time Scope Gost Constrain Enhance Accept Table A29 has been developed for you to use in completing the project exercises. Assignment Develop the WBS outline using the software avajlableto you. Question Does this information (wBS) ailow you to define any milestones of the project?Why or why not? What are they? Remember: Save your file for future exercises! i ,u lo TI 'uerlc ]]uBD e snsJe^ {ro.&{leu e se 3lnpoqcs oq13ur^eldsrp Jo seSe]us^pesrp/seEe]u" p" oq] orBduros .g 'secroqc rnod ur?ldxe pu? souolsolrlu elqrsuos o \] fJr]uopl .s i{Jo \}eu srq} sr e^r}rsu3s &\oH ', e{cels Jo tunotu" }soteer8 eql seq.(1m4ce qcq \ .€ ;1ce[o.rd oqtr roJ (s)qted I€crlrrc eq] sr terL!\ .Z ie4e1 1celord eql llr,lt Suoy zvro11 ;pelelduoc oq o] peleruytse 1celord eq] sr uorl!\ .I :suorlsenb 3umo11og erll sesseJppe'wql or.

1. Appendix 2 Computer project Exercises 6i1
Part B
You have told Robin Lane that based on what you know now
you need to revise theestimates for some of thetemaining
activities. tietailed proau.io.rign is expected totake 3 days
longer than planned. g;ito nrototypeg ir.*p..t JilJut z auyr less
thanplanned and Finarized product Design is expliftg
1o
tut l auv, r*e.r than pranned.Final Manufacturins process i,
e*p.&eJtotkg 2 day;l;;s tffiiunn.a, while InstalProduction
Equipm"ent is 19w;il;;;, take only 30 days. you also report
thatDetailed Marketins nlan will u. compr.tealefore the end;iifu
N.* year. She is in-sisting that t[: proi..t.u.."*pilil;;**ruo rTth
in ora..to be ready for the Lasvegas show. she is willing to
spend $5bp00 from rtr"""g.n,.r,-i.r.ru., to expediteshipping if
necessarv. $25,000 wouta,Juce the shipffi;i;;;;"r.nts by 5
daysandtor $2s,000 *ouid
'.oir*
tr,*r,,ppidl.-;;'fil;?;;ffi: by 5 days (Hint:Adjust tag). prepare a
memo to Robinih;;"ddr.;ilth; fbifi#;resrions:
1' what is the impact of the revised estimates for Finalized
product Design andInstall Production Equipment on the
project,.f,rarf, ura.o"rtZ
2' would you recommend authori zingtheexpenditure of
$50,000? Explain.
3' what, if any other r.ecommendations, wourd you make ,o ihut
the project canachieve Robin,s deadline? Justify your
r..o_.endations.

2. Include a Tracking Gantt chart with variance schedure that
depicts your finalrecommendations and revised schedule.
Hint: After adjusting the Instailation of production Equipment
and Finalized prod_uct Design, level outside of slack to
eliminate any resource over allocation problems.
Project Description
The. new c_omputer-controlred conveyor bert is an exciting
project that moves andpositions items on the conveyor beli
within <l mil1ime6i. ri. proi.ct will pro-duce a new system for
future instalrations, and for replacement of those in thefield, at
a 1ow cost. The comput.r-.ortiott.a .or*v*i;il;; ;-. potentiar to
bea critical unit in 30 perce.nt.oi the systems rnstarreiln
racto;ff. il. new sysrem isalsoeasier to update with future t..t
notogi"r.
The Project priority Matrix for the coriu.yor Belt project (cBp)
is:
Time Scope Gost
Constrain
Enhance
Accept
Table A29 has been developed for you to use in completing the
project exercises.
Assignment
Develop the WBS outline using the software avajlableto you.
Question
Does this information (wBS) ailow you to define any milestones
of the project?Why or why not? What are they?

3. Remember: Save your file for future exercises!
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6. 6'ZV:l'ISVIIr
sasruaxg ea[o,t4 n1ndruo3 7 xrpuaddy 799
Appendix2 Computer Project Exercises 663
TABI-E A2.10 Conveyor Belt Proiect; Scherlule
Actitity 0esctiPtion Besource
Design
DevioPment, design
Design
DevetoPment design
Design, develoPment
AssemblY, develoPment
Development
Design, documentation
Bevelopment
DeveloPment
0ocumentation, design
Documentation, design
AssemblY, develoPment

7. AssemblY, develoPment
Development
AssemblY
Purchasing
DeveloPment
DeveloPment
Documentation, develoPment
AssemblY, develoPment
Assembly, develoPment
Iluration {days)
25
50
20
I5
70
100
s0
25
60
80

8. 20
30
50
80
130
25
5
s0
60
50
30
60
Preceding ActivitY
1
2
3
4
5

9. 6
1
I
s
r0
11
12
't3
14
t5
16
17
18
rg
20
21
22
Architectural decislons
Hardware sPecifications
Kernel specifications

10. Utilities sPecifications
Hardware design
Bisk drivers
MemorY management
0perating sYstem documentation
Routine utilities
Complex utilities
Utilities documentation
Hardware documentation
lntegration first Phase
PrototyPes
Serial l/0 drivers
System ha rd/softwa re test
Order cireuit boards
Network interface
Shell
Proiect documentation
Assemble PreProduction models
lntegrated acceptance testlng
2

11. 3
3
3
4
4
4
5
6,7,8,9,10,1 1,12
13
13
14,15
t6
16
16
'16
ITFS,lag 50 daYs
18.1S,20,21
Note: F-S refers to a Finish-to-Start lag'
;te this

12. Ionday
mg Day
day ofl
kup files
amemo
ect take?
rnetwork
TABLE A2.11
Organization
Resources
Include the following Printouts:
. A Gantt chart.
. A network diagram highlighting the critical path'
. A schedule table r.potiing-' ES, LS, EF' LF' and slack for each
activity'
Hint: the project should be completed in 530 days'
Remember: Sur. yorrt file for future exercises!
Part 3
Remembertheoldsaying,.Aprojectplanisnotascheduleuntilresourc
esare
committed.,,this exeicisJiUustiates thii subtle, but very

13. important, differencs
Part A
UsingyourfilesfromPart2inputresou]rcesandtheircostsifyouhaven
otalrea{
done so. All information is found in Tables A2'10
and A2'11'
Name
Design
DeveloPment
Documentction
AssemblY/test
Purchasing
Group
R&D (2teams)
fl&D {2teams)
R&D (1team)
R&D (l team)
Procurement {1 team}
Cost ($/hr)
sr00
'to
60

14. 70
40
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17. TABLE A2.12
April 1, 2010
Appendix 2 Computer Project Exercises 6ii
2. What does the cash flow statement tell you about how costs
are distributed over
the life span of the project?
Include a monthly cash flow and a cost table for the project.
once you are confident that you have the final schedule, save
the file as a
baseline.
Hint: Save a backup file just in case without baseline!
Part 5
fr^epare
status reports for each of the first four quarters of the project
given the
information provided here. This requires saving your resource
schedule ai a base-
line and inserting the appropriate status report date in the
program. Assume that
no work has been completed on the day of the status report.
Y_our status report should include a table containing the pv, EV
AC, BAC,
EAC, sY cv, and cPI for each activity and the whole project.
The report should
also address the following questions:

18. l. How is the project progressing in terms of cost and schedule?
2. what activities have gone well? what activities have not gone
well?
3. what do the PCIB and PCIC indicate in terms of how much of
the project has
been accomplished to date?
4. what is the forecasted cost at completion (EAC.)? what is the
predicted
vACf?
5. Report and interpret the TCPI for the project at this point in
time.
6. What is the estimated date of completion?
7. How well is the project doing in terms of its priorities?
Try to present the above information in a form worthy of
consideration by top
management.
Include a Tiacking Gantt chart with each report.
First Ouarter, April 1,2010
Table A2.12 summarizes the information regarding activities
accomplished
to date.
Be sure to save your file after each quarterly report and use it to
build the next
report!
Actual Bemaining
Duration DurationAoliuitr,:,',,,, ,,', i, ' '
Hardware specifications

19. Kernel specifications
Disk drivers
Memory management
0p. systems documentation
Utilities specifications
Complex utilities
Architectural decisions
$tart:0ate
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0
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25
Part 1
Project Description
The new computer-controlled conveyor belt is an exciting
project that moves and
positions items on the conveyor belt within ,1 millimeter. The
project will produce a new system for future installations, and
for replacement of those in the
field, at a low cost. The computer-controlled conveyor belt has
the potential to be
a critical unit in 30 percent of the systems installed in factories.
The new system is
also easier to update with future technologies.

21. The Project Priority Matrix for the Conveyor Belt Project (CBP)
is:
Time Scope Cost
Constrain X
Enhance X
Accept X
Table A2.9 has been developed for you to use in completing the
project exercises.
Assignment
Develop the WBS outline using the software available to you.
Question
Does this information (WBS) allow you to define any
milestones of the project?
Why or why not? What are they?
Remember: Save your file for future exercises!
Part 2
Use your file from Part 1 and the information provided below to
complete this
exercise. (See Table A2.10.)
1. Each work package will represent an activity.
2. The project begins January 4, 2010.
3. The following holidays are observed: January 1, Memorial
Day (last Monday
in May), July 4th, Labor Day (first Monday in September),
Thanksgiving Day
(4th Thursday in November), December 25 and 26.
4. If a holiday falls on a Saturday then Friday will be given as
an extra day off,
and if it falls on a Sunday, then Monday will be given as a day
off.
5. The project teams work eight-hour days, Monday through
Friday.
Warning: Experience has taught students to frequently make
separate backup files
for each exercise. The software is never as friendly as users

22. expect!
Construct a network schedule for the conveyor belt project and
prepare a memo
that addresses the following questions:
1. When is the project estimated to be completed? How long
will the project take?
2. What is the critical path(s) for the project?
3. Which activity has the greatest amount of slack?
4. How sensitive is this network?
5. Identify two sensible milestones and explain your choices.
6. Compare the advantages/disadvantages of displaying the
schedule as a network
versus a Gantt chart.
Conveyor Belt Project
Hardware Hardware specifications
Hardware design
Hardware documentation
Prototypes
Order circuit boards
Assemble preproduction models
Operating system Kernel specifications
Drivers
Disk drivers
Serial I/O drivers
Memory management
Operating system documentation
Network interface
Utilities Utilities specifications
Routine utilities
Complex utilities
Utilities documentation
Shell
System integration Architectural decisions
Integration first phase
System hard/software test
Project documentation

23. Integration acceptance testing
TABLE
Include the following printouts:
• A Gantt chart.
• A network diagram highlighting the critical path.
• A schedule table reporting. ES, LS, EF, LF, and slack for each
activity.
Hint: the project should be completed in 530 days.
Remember: Save your file for future exercises!
Part 3
Remember the old saying, “A project plan is not a schedule
until resources are
committed.” This exercise illustrates this subtle, but very
important, difference.
Part A
Using your files from Part 2 input resources and their costs if
you have not already
done so. All information is found in Tables A2.10 and A2.11.
Name Group Cost ($/hr)
Design R&D (2 teams) $100
Development R&D (2 teams) 70
Documentation R&D (1 team) 60
Assembly/test R&D (1 team) 70
Purchasing Procurement (1 team) 40
TABLE A2.11
Organization
Resources
Prepare a memo that addresses the following questions:
1. Which if any of the resources are overallocated?
2. Assume that the project is time constrained and try to resolve
any overallocation problems by leveling within slack. What
happens?
3. What is the impact of leveling within slack on the sensitivity
of the network?
Include a Gantt chart with the schedule table after leveling
within slack.

24. 4. Assume the project is resource constrained and resolve any
overallocation
problems by leveling outside of slack. What happens? What are
the managerial
implications?
5. What options are available at this point in time?
Include a Gantt chart with the schedule table after leveling
outside of slack.
Note: No splitting of activities is allowed.
Note: No partial assignments (e.g., 50 percent). All resources
must be assigned
100 percent.
Part B
When you show the resource-constrained network to top
management, they are
visibly shaken. After some explanation and negotiation they
make the following
compromise with you:
• The project must be completed no later than February 2, 2012
(530 days).
• You may assign two additional development teams.
• If this does not suffice, you may hire other development teams
from the outside. Hire as few external teams as possible because
they cost $50 more per
hour than your inside development people.
Internal Development
Add as many development units (teams) as needed to stay
within the 530 days. If
you need more than two internal development units, then hire as
few external
teams as necessary. Select the cheapest possibility! Change as
few activities as possible. It is recommended you keep work
packages which require cooperation of
several organizational units inside your company. You decide
how best to do this.
Hint: Undo leveling prior to adding new resources.

25. Once you have obtained a schedule that meets the time and
resource constraints, prepare a memo that addresses the
following questions:
1. What changes did you make and why?
2. How long will the project take?
3. How did these changes affect the sensitivity of the network?
Include a Gantt chart with a schedule table presenting the new
schedule.
Part 4
Based on the file created at the end of Part 3, prepare a memo
that addresses the
following questions:
1. How much will the project cost?
2. What does the cash flow statement tell you about how costs
are distributed over
the life span of the project?
Include a monthly cash flow and a cost table for the project.
Once you are confident that you have the final schedule, save
the file as a
baseline.
Hint: Save a backup file just in case without baseline!