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Project Management 
Operations Management (Assignment 2; MGT2070 – Fall 2014) 
MOSES SERIKI 
NOVEMBER 2014
2-Work Breakdown Structure 
CONSTRUCTION OF 
THE VANOC WHISTLER 
ADMINISTRATIVE 
BUILDING 
Paperwork 
Prepare Project Proposal 
Prepare Project Charter 
Prepare Project Scope 
Board Approval 
Final Drawings and Building Permits 
Recruit Staff 
Placement of Job Advertisement 
Select Interviewees 
Prepare Interview Questionnaire 
Schedule Interview 
Interview 
Report of Interview Findings and Selection 
Construct Building 
Select Builder 
Site Cleaning 
Soil Testing 
Construct Foundation 
Construct Superstructure 
Complete Interior 
Landscape Site 
Painting 
Inspection and Interior Finish Up 
Procurement 
Request for Proposal 
Market Survey 
Select Vendor 
Order Systems 
Order Furniture 
Close Out 
Install Furniture 
Install Systems 
Occupy Building
3. Network Diagram # of Activity Normal Duration In Weeks (Before Crashing) 
#1 
4 
Activity Description 
#2 
3 
#3 
8 
#5 
36 
#4 
30 
#9 
6 
#8 
5 
#10 
4 
1. Prepare Proposal 8. Complete Interiors 
2. Board Approval 9. Landscape Site 
3. Final drawings & Building Permits 10. Inspection & Interior Finish-up 
4. Construct Building 11. Install Furniture 
5. Recruit Staff 12. Install Systems 
6. Order Systems 13. Building Occupied 
7. Order Furniture 
#11 
3 
#12 
6 
#13 
#6 
3 
#7 
10
4). Path Identification 
Path Path Time (Weeks) 
1-2-3-4-9-13 51 
1-2-3-4-8-10-11-12-13 63* 
1-2-5-7-11-12-13 62 
1-2-5-6-12-13 52 
The Critical path is 1-2-3-4-8-10-11-12-13. It takes the longest time to be completed which is 63 weeks. 
5). Project Duration and Cost 
The Project duration is the same as the duration of the Critical path which is 63 weeks. The overall cost of 
the project is: 
Activity Description Normal Cost ($) 
1 Prepare Proposal Drawings 12,000.00 
2 Board Approval 15,000.00 
3 Final Drawings and Building Permit 15,000.00 
4 Construct Building 2,000,000.00 
5 Recruit Staff 360,000.00 
6 Order Systems 140,000.00 
7 Order Furniture 175,000.00 
8 Complete Interior 100,000.00 
9 Landscape Site 60,000.00 
10 Inspection and Interior Finish Up 80,000.00 
11 Install Furniture 8,000.00 
12 Install Systems 24,000.00 
13 Building Occupied - 
Overall Cost 2,989,000.00
6). Project Crashing 
Activity 
to 
Crash 
No of 
weeks 
to 
Crash 
Crash Cost PER 
Week ($) 
1-2-3-4-8- 
10-11-12-13 
1-2-3- 
4-9-13 
1-2-5-7-11- 
12-13 
1-2-5-6- 
12-13 
Cumulative 
Cost 
1 1 2,000.00 62* 50 61 51 2,000.00 
11 1 3,000.00 61* 50 60 51 5,000.00 
11 1 3,000.00 60* 50 59 51 8,000.00 
3 1 5,000.00 59* 49 59* 51 13,000.00 
2 1 6,000.00 58* 48 58* 50 19,000.00 
2 1 6,000.00 57* 47 57* 49 25,000.00 
12 1 8,000.00 56* 47 56* 48 33,000.00 
12 1 8,000.00 55* 47 55* 47 41,000.00 
10&7 1 10000 + 7000 54* 47 54* 47 58,000.00 
8&7 1 12000 + 7000 53* 47 53* 47 77,000.00 
8&7 1 12000 + 7000 52* 47 52* 47 96,000.00 
4&7 1 28000 + 7000 51* 46 51* 47 131,000.00 
4&5 1 28000 + 15000 50* 45 50* 46 174,000.00 
4&5 1 28000 + 15000 49* 44 49* 45 217,000.00 
4&5 1 28000 + 15000 48* 43 48* 44 260,000.00 
4&5 1 28000 + 15000 47* 42 47* 43 303,000.00 
4&5 1 28000 + 15000 46* 41 46* 42 346,000.00 
* = Critical path 
The Cost of crashing is 346,000. This Project cannot be crashed any further than 46 weeks. 
Shortest Possible Times 
Code Path Duration Wks 
A 1-2-3-4-8-10-11-12-13 46* Critical Path 
B 1-2-3-4-9-13 41 
C 1-2-5-7-11-12-13 46* Critical Path 
D 1-2-5-6-12-13 42
8. Complete Project 
This project cannot be completed by the 1st day of January in 2015. 
9. Activity Delay 
The appropriate solution in this case, is to crash activity number 11. This will offset the wasted two weeks in getting the 
permits necessary. 
Activity 11 is on the critical path and more also is the cheapest among activities on the critical path hence can be crashed at 
exactly two weeks; furthermore, the project will be completed on the normal 63 weeks. 
Activity 1, 2,3 cannot be crash because they are completed already. 
10. Project Triangle 
Looking at the crashing activities, you can see that the accumulative cost of the project increases due to crashing cost. 
Furthermore, the project could be finish at the normal time, if the project is now not as urgent hence due date could be 
extended then, there would be no crashing cost. Therefore the cost of the overall project will decrease and more time could be 
spent on quality assurance. Schedule 
Cost Scope 
Project extension can as well lead to increase in some indirect cost such as managing cost, labor cost.

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Project assign 2

  • 1. Project Management Operations Management (Assignment 2; MGT2070 – Fall 2014) MOSES SERIKI NOVEMBER 2014
  • 2. 2-Work Breakdown Structure CONSTRUCTION OF THE VANOC WHISTLER ADMINISTRATIVE BUILDING Paperwork Prepare Project Proposal Prepare Project Charter Prepare Project Scope Board Approval Final Drawings and Building Permits Recruit Staff Placement of Job Advertisement Select Interviewees Prepare Interview Questionnaire Schedule Interview Interview Report of Interview Findings and Selection Construct Building Select Builder Site Cleaning Soil Testing Construct Foundation Construct Superstructure Complete Interior Landscape Site Painting Inspection and Interior Finish Up Procurement Request for Proposal Market Survey Select Vendor Order Systems Order Furniture Close Out Install Furniture Install Systems Occupy Building
  • 3. 3. Network Diagram # of Activity Normal Duration In Weeks (Before Crashing) #1 4 Activity Description #2 3 #3 8 #5 36 #4 30 #9 6 #8 5 #10 4 1. Prepare Proposal 8. Complete Interiors 2. Board Approval 9. Landscape Site 3. Final drawings & Building Permits 10. Inspection & Interior Finish-up 4. Construct Building 11. Install Furniture 5. Recruit Staff 12. Install Systems 6. Order Systems 13. Building Occupied 7. Order Furniture #11 3 #12 6 #13 #6 3 #7 10
  • 4. 4). Path Identification Path Path Time (Weeks) 1-2-3-4-9-13 51 1-2-3-4-8-10-11-12-13 63* 1-2-5-7-11-12-13 62 1-2-5-6-12-13 52 The Critical path is 1-2-3-4-8-10-11-12-13. It takes the longest time to be completed which is 63 weeks. 5). Project Duration and Cost The Project duration is the same as the duration of the Critical path which is 63 weeks. The overall cost of the project is: Activity Description Normal Cost ($) 1 Prepare Proposal Drawings 12,000.00 2 Board Approval 15,000.00 3 Final Drawings and Building Permit 15,000.00 4 Construct Building 2,000,000.00 5 Recruit Staff 360,000.00 6 Order Systems 140,000.00 7 Order Furniture 175,000.00 8 Complete Interior 100,000.00 9 Landscape Site 60,000.00 10 Inspection and Interior Finish Up 80,000.00 11 Install Furniture 8,000.00 12 Install Systems 24,000.00 13 Building Occupied - Overall Cost 2,989,000.00
  • 5. 6). Project Crashing Activity to Crash No of weeks to Crash Crash Cost PER Week ($) 1-2-3-4-8- 10-11-12-13 1-2-3- 4-9-13 1-2-5-7-11- 12-13 1-2-5-6- 12-13 Cumulative Cost 1 1 2,000.00 62* 50 61 51 2,000.00 11 1 3,000.00 61* 50 60 51 5,000.00 11 1 3,000.00 60* 50 59 51 8,000.00 3 1 5,000.00 59* 49 59* 51 13,000.00 2 1 6,000.00 58* 48 58* 50 19,000.00 2 1 6,000.00 57* 47 57* 49 25,000.00 12 1 8,000.00 56* 47 56* 48 33,000.00 12 1 8,000.00 55* 47 55* 47 41,000.00 10&7 1 10000 + 7000 54* 47 54* 47 58,000.00 8&7 1 12000 + 7000 53* 47 53* 47 77,000.00 8&7 1 12000 + 7000 52* 47 52* 47 96,000.00 4&7 1 28000 + 7000 51* 46 51* 47 131,000.00 4&5 1 28000 + 15000 50* 45 50* 46 174,000.00 4&5 1 28000 + 15000 49* 44 49* 45 217,000.00 4&5 1 28000 + 15000 48* 43 48* 44 260,000.00 4&5 1 28000 + 15000 47* 42 47* 43 303,000.00 4&5 1 28000 + 15000 46* 41 46* 42 346,000.00 * = Critical path The Cost of crashing is 346,000. This Project cannot be crashed any further than 46 weeks. Shortest Possible Times Code Path Duration Wks A 1-2-3-4-8-10-11-12-13 46* Critical Path B 1-2-3-4-9-13 41 C 1-2-5-7-11-12-13 46* Critical Path D 1-2-5-6-12-13 42
  • 6. 8. Complete Project This project cannot be completed by the 1st day of January in 2015. 9. Activity Delay The appropriate solution in this case, is to crash activity number 11. This will offset the wasted two weeks in getting the permits necessary. Activity 11 is on the critical path and more also is the cheapest among activities on the critical path hence can be crashed at exactly two weeks; furthermore, the project will be completed on the normal 63 weeks. Activity 1, 2,3 cannot be crash because they are completed already. 10. Project Triangle Looking at the crashing activities, you can see that the accumulative cost of the project increases due to crashing cost. Furthermore, the project could be finish at the normal time, if the project is now not as urgent hence due date could be extended then, there would be no crashing cost. Therefore the cost of the overall project will decrease and more time could be spent on quality assurance. Schedule Cost Scope Project extension can as well lead to increase in some indirect cost such as managing cost, labor cost.