Project Management: Bechtel

Please choose from one (1) of the scenarios below. Note: The scenario that you choose in this assignment will be the one (1) with which you continue for Assignment 2.

Critical path analysis identifies the most efficient and cost effective way of completing a complex project. The various activities which together will make up the project are identified, and the order of these activities are identified. Then, the duration of each activity is estimated and these factors are then arranged as a network or graph, showing the whole project from start to finish, and showing which tasks can happen at the same time. The sequence of tasks which have to be done one after another with no gaps in between is called the Critical Path.

3. What is (are) the critical path(s) in the project? What is the level of risk in completing tasks on the critical path(s)? Explain.

Gantt Chart & Network Diagram 17 8.1 Gantt Chart 17 8.2 Network Diagram Overall Structure 17 9. Most Likely case & Worse Cae Time Estimation 18 10. Compressing Schedule 18 Appendix 1.

Use the network diagram below and the additional information provided to answer the corresponding questions. [15 points]

Step 1: Construct a network diagram for the project. (NOTE: EF for activity H should be 19)

"a. If each project's cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what

2) Which of the following models determines the path through the network that connects all the points?

2. Construct a table containing the project activities using the letter assigned to each activity, the time estimates, and the precedence relationships from which you will assemble the network diagram.

Critical Path: The sequence of activities that represents the longest path through a project, which determines the shortest possible duration.

later in the project life. With a NPV of less than -$810,000, Scenario 6 is the project with the

I will consider the project dates stated in question 3 for this question and also consider that

From Figure 1, we know that the critical path is Activity 1-2-5-7-10-13-15. It is because if there is any change of time in the Activities on the critical path, the whole progress time of the project will change. Therefore, we choose to crash the activities on the critical path with the lowest crash cost in order to lower the time used with minimum additional cost. Activity 7 has the lowest crash cost within the Activities on the critical path. So, we choose to crash Activity 7 first.

A contractor was feeling defeated because the job he was working on was so far behind schedule. As he looked at the job site, he saw one worker moving bricks by carrying

5. The project is assumed to end in year 4. Do you think that this is realistic? Can you estimate the value of the project’s operating cash flows beyond year 4? State any assumptions you made.