Review problems and solutions

1. For the Project network shown answer the following questions based on the data provided. You can use Excel to assist you in solving the proble ! but you still need to show your work pretending you solve by hand.
" ' E 0 3

"ctivity " ' * E F 0 1 2 3 4 #a$ #b$ #c$

Expected ti e#weeks$ & ( + 1 . / ) 1 & ) .

%tandard deviation .& .) (., .( 1., .( ./ .1 & 1., ..

5hat is the critical path6 5hat is the probability of eeting a desired (. weeks co pletion ti e6 %everal activities can be expedited for a cost. %pecifically! activity - expected ti e could be reduced by 1,7 for a cost of 8),,! or by (,7 for a cost of 8(,,,. 2f the project is not co pleted in (. weeks a penalty of 81,,!,,, will be paid. 5hat is your reco endation regarding expediting activity -6 "ssu e the standard deviations don9t change.

%olution :o solve with Excel enter the data to the PE;:<*P=. %ince the standard deviation and the expected ti e for each activity are given! the three ti e esti ates are not needed. ;un the *P=<PE;: te plate and obtain the following result> #a$ :he critical path is *-E024. #b$ P#?@(.$A BCse PE;:<*P=DAP#E@#(.<(F$G&.+1)+$A.(1)F. You need to explain this result. ? is nor ally distributed with ean A (F and standard deviation A B((H.((H1(H./(H&(H..(D1G(A&.+1)+

#c$

5e apply the expected value criterion> #i$ Iot reducing the co pletion ti e of activity ->
E#*ost$A,P#?@(.$H1,,!,,,P#?J(.$A1,,!,,,#.K+/1$AK+/1,

#ii$

;educing the expected co pletion ti e of activity - by 1,7. Iew ti eA.F. Fro the te plate we have P#?@(.$A.((&. so P#?J(.$A.KK./.
E#*ost$A,P#?@(.$H1,,!,,,P#?J(.$H),,A1,,!,,,#.KK./$H),,AK+1/,

#iii$

;educing the expected co pletion ti e of activity - by (,7. Iew ti eA.+. Fro Excel we have P#?@(.$A.(&1) so P#?J(.$A.K.+).
E#*ost$A,P#?@(.$H1,,!,,,P#?J(.$H(,,,A1,,!,,,#.K.+)$H(,,,AK++),

*onclusion> "llocate 8),, to expedite activity - by 1,7. (. :he following data pertains to a certain project> 2 ediate Ior al Ior al "ctivity Predecessor. :i e#weeks$ *ost LL " 1, &, ' " + 1(, * ' 1, 1,, " K /, E 1, ), F *! E & ., #a$ #b$ #c$ #d$ *rash :i e#weeks$ + . K . + 1 *rash *ost K, 1), 1., ), K) F)

%how the project network "ssu e the co pany wants to co plete the project in (+ weeks. %hould any activity be crashed6 Explain. 5hich activities should be crashed! by how uch! and at what total crashing cost! if the objective is to ini iMe the total crashing costs! while eeting the deadline of (+ weeks6 "ssu ing there is a penalty of (, paid for each week the project is not co pleted beyond the deadline of (+ weeks. 5hat is the opti al crash plan that ini iMes total costs6

%olution> #b$ 5e run Excel and realiMe that the project needs to be crash since the nor al project co pletion ti e is &1 weeks. #c$ Fro the Excel printout we have> "ctivity ' is crashed by 1 week and activity F is crashed by ( weeks. #d$ 5e need to for ulate this proble as a linear progra ing odel! because the PE;:<*P= te plate does not provide a solution to this proble . :he linear progra ing odel> =ini iMe *rash cost H penalties A (,Y"H1)Y'H(,Y*H1,Y-H1(.)YEH1K.)YFH(,#-elta$ %.:. "ctivity F -elta A ?FH&<YF<(+ ? (+ ? H&<Y ?'JA?"H1,<Y" -elta ?*?'H+<Y'
F F F

?-?"H1,<Y" ?E?-HK<Y?F?E H1,<YE ?F?*H1,<Y* Y"( Y'( NNN

?F<YF<-EP:"A() <?"H?'HY" 1, <?'H?*HY' + <?"H?-HY" 1, <?-H?EHY- K <?EH?FHYE 1, <?*H?FHY* 1,

Csing %olver to solve this linear progra ing odel! the start ti es of each activity appears in the list of ? values. "lso! read the a ount of ti e reduction for each activity fro the list of Y values. For exa ple! activity ' starts at ti e 1, and takes + O 1 A K weeks to co plete BIor al ti e O ti e reduction A + O1D. :he project is co pleted in &, weeks B?FH&<YF A (KH&<,D! therefore! the delay easured by the variable -EP:" is equal to ( weeks B&,<(+D. :hus! with the penalty of (, per week of tardiness! it pays to be late by two weeksQ the project is crashed by 1 week #fro &1 to &,$. "nother way to solve the proble is by running the *P=<-eadline ultiple ti es! changing the deadline! and adding the appropriate penalty anually. For exa ple> Pet deadline A (+. :his yields a certain crash costs! say *1. Io need to add any penalty. Pet deadline A (F. :his yields a crash cost of *(! s aller than *1! but we need to add a penalty of (,. *ontinue with this anner. Iote that you do not need to go below a deadline of (+! because the crash cost will increase co pared to *1. "lso note! that there is no need to go beyond &1#the co pletion nor al ti e$! because no crash will be needed but the penalties accu ulate. &.