Develop a network drawing for Hill Construction, and determine the critical path(s). Assess the length of the project expected to take. Calculate the probability of finishing in 270 days. If it were necessary to crash to 250 or 240 days, analyse whether Hill would do it so and calculate costs that it is willing to bear in this project. As noted in the case, assume that optimistic time estimates can be used as crash times.
After six months of study, much political arm wrestling, and some serious financial analysis, Dr Martin Starr, president of Southwestern University, had reached a decision. To the delight of its students and to the disappointment of its athletic boosters, SWU would not be relocating to a new football site but would expand the capacity at its on-campus stadium.
Adding 21,000 seats, including dozens of luxury skyboxes, would not please everyone. The influential football coach, Billy Bob Taylor, had long argued the need for a first-class stadium, one with built-in dormitory rooms for his players and a palatial office appropriate for the coach of a future NCAA champion team. But the decision was made, and everyone, including the coach, would learn to live with it.
The job now was to get construction going immediately after the current season ended. This would allow exactly 270 days until the upcoming season opening game. The contractor, Hill Construction (Bob Hill being an alumnus, of course), signed the contract. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in the eye. “I guarantee the team will be able to take the field on
Back in his office, Hill again reviewed the data. (refer to the table below, and note that optimistic time estimates can be used as crash times.) He then gathered his foremen. “People, if we’re not 75% sure we’ll finish this stadium in less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days—also for 240 days. I want to be early, not just on time!”
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|
Time (Days) |
|
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|
Activity |
Description |
Immediate predecessors |
Optimistic |
Most likely |
Pessimistic |
Crash cost/day (RM) |
|
A |
Bonding, insurance, tax structuring |
- |
20 |
30 |
40 |
1,500 |
|
B |
Foundation, concrete footings for boxes |
A |
20 |
65 |
80 |
3,500 |
|
C |
Upgrading skyboxes, stadium seating |
A |
60 |
60 |
100 |
4,000 |
|
D |
Upgrading walkways, stairwells, elevators |
C |
30 |
50 |
100 |
1,900 |
|
E |
Interior wiring, lathes |
B |
25 |
30 |
35 |
9,500 |
|
F |
Inspection approvals |
E |
1 |
1 |
1 |
0 |
|
G |
Plumbing |
D, E |
25 |
30 |
35 |
2,500 |
|
H |
Painting |
G |
10 |
20 |
30 |
2,000 |
|
I |
Hardware/air conditioning/metal workings |
H |
20 |
25 |
60 |
2,000 |
|
J |
Tile/carpeting/windows |
H |
8 |
10 |
12 |
6,000 |
|
K |
Inspection |
J |
1 |
1 |
1 |
0 |
|
L |
Final detail work/clean-up |
I, K |
20 |
25 |
60 |
4,500 |
Required:
- Develop a network drawing for Hill Construction, and determine the critical path(s). Assess the length of the project expected to take.
- Calculate the probability of finishing in 270 days.
- If it were necessary to crash to 250 or 240 days, analyse whether Hill would do it so and calculate costs that it is willing to bear in this project. As noted in the case, assume that optimistic time estimates can be used as crash times.
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