Concept explainers
Interpretation:The real life situations of the cost time curve in comparison to the assumption of its being linear.
Concept Introduction: Everyactivity /a set of activities have the costs to be incurred and the time of completion. The time and the cost always have a relationship i.e. cost of completion in a given time and vice versa i.e. time of completion for a given cost budget. Both are variable and each may or may not vary in direct proportion to the variation in the other variable. This is discussed below in terms of normal time/cost; crash time/cost; de-crashed time/cost wart projects.(De-crashing is used to reduce costs of non-critical activities by increasing the times because such time increase does not increase the total project time but reduces the resource requirements).
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
Production and Operations Analysis, Seventh Edition
- You are managing a software project with an initial budget estimate of 5 million USD. During interim cost and schedule performance analysis, you figured out that: You should have spent $650,000 till now based on your initial plans and 1,500 man/days of scheduled activities You spent $425,000 till now and completed 600 man/days of scheduled activities which should have cost $525,000 based on your initial plans. You re-estimated the budget required for the remaining work to be done as $4,500,000. Identify: BAC PV AC EV ETC Calculate: CPI SPI CV SV VAC EAC TCPI Once you've calculated this, what does it mean for your project and your stakeholders? Note: You won't be able to view anyone else's response until you've posted yours. Also, feel free to use Google, if needed to help give you further clarity on the formulas being used. Be sure to submit an initial, substantive post by Friday at 11:59 p.m. CST.arrow_forwardDescribe the functioning of the Spiral Model and the V Model for managing the execution of a project.arrow_forwardThe Neptune’s Den Machine Shop specializes in overhauling outboard marine engines. Some engines require replacement of broken parts, whereas others need a complete overhaul. Currently, five engines with varying problems are awaiting service. The best estimates for the labor times involved and the promise dates (in number of days from today) are shown in the following table. Customers usually do not pick up their engines early.Engine Time Since Order Arrived (days) Processing Time, Including Setup (days) Promise Date (days from now) Engine Time Since OrderArrived (days) Processing Time,Including Setup (days) Promise Date (daysfrom now) 50-hp Evinrude 7-hp Johnson 100-hp Mercury 50-hp Honda 75-hp Nautique 4 6 8 1 15 5 4 10 1 3 8 15 12 20 10 a. Develop separate schedules by using the SPT and EDD rules.b. Compare the two schedules on the basis of average flow time, percentage of past due jobs, and maximum past due days for any engine.arrow_forward
- Entriken Machinery specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Dick Entriken, president of Entriken Machinery, is convinced that harvesting weeds is far better than using chemicals to kill weeds. Chemicals cause pollution, and the weeds seem to grow faster after chemicals have been used. Dick is contemplating the construction of a machine that could harvest weeds on narrow rivers and waterways. The activities that are necessary to build one of these experimental weed-harvesting machines are listed in the accompanying table. ---------------------------------------------- Activity Immediate Time (weeks) predecessor --------------------------------------------- A - 6 B - 5 C A 3 D A 2 E…arrow_forwardEntriken Machinery specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Dick Entriken, president of Entriken Machinery, is convinced that harvesting weeds is far better than using chemicals to kill weeds. Chemicals cause pollution, and the weeds seem to grow faster after chemicals have been used. Dick is contemplating the construction of a machine that could harvest weeds on narrow rivers and waterways. The activities that are necessary to build one of these experimental weed-harvesting machines are listed in the accompanying table. ---------------------------------------------- Activity Immediate Time (weeks) predecessor --------------------------------------------- A - 6 B - 5 C A 3 D A 2 E…arrow_forwardEntriken Machinery specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. Dick Entriken, president of Entriken Machinery, is convinced that harvesting weeds is far better than using chemicals to kill weeds. Chemicals cause pollution, and the weeds seem to grow faster after chemicals have been used. Dick is contemplating the construction of a machine that could harvest weeds on narrow rivers and waterways. The activities that are necessary to build one of these experimental weed-harvesting machines are listed in the accompanying table. ---------------------------------------------- Activity Immediate Time (weeks) predecessor --------------------------------------------- A - 6 B - 5 C A 3 D A 2 E…arrow_forward
- Please show work in excel The Wholesale Club national chain of retail stores in the U.S., offers automobile maintenance services. Their store in New Haven, CT has a garage with three bays dedicated to oil changes. The garage normally is open only on weekdays from 9 am to 6 pm and on Saturdays from 9 am to noon. An oil change takes an average of 35 minutes to complete. During July, the height of the traveling season, the garage works at peak capacity and is open from 9 am to 9 pm on weekdays, and from 9 am to 5 pm on Saturdays. a) What are the garage’s normal and peak capacities, in oil changes per week? b) During the second week in July, the garage completed 210 oil changes. What is the utilization as a percent of normal capacity? As a percent of peak capacity?arrow_forwardTwo new Internet site projects are proposed to a young start -up company. Project A will cost $250,000 to implement and is expected to have annual net cash flows of $75,000. Project B will cost $150,000 to implement and should generate annual net cash flows of $52,000. The compnay is very concerned about their cash flow. Using the payback period, which project is better, from a cash flow standpoint?arrow_forwardA building contractor has a contract which will expire in 30 days. He has 80 men on the job and can finish the job in 50 days. The wage per day of 40 men is P6.00 each and that of the other men is P4.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work is P100.00 per day. How many more men should the contractor add in order to complete the work on time? Assuming that the additional men to be added will be paid P6.00 per day, will the contractor save money by employing enough men for him to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any? No overtime work is permitted.arrow_forward
- In order to improve the efficiency of the Ghana Association of Susu Collectors (GASCoperations, )'s the organization is considering the implementation of a new comprehensive Enterprise Resource Planning System (ERP), [a computer-based information system]. Lucasson Incorporated has been contracted to design and build this system. Because of your experience as a Senior System Analyst at Lucasson Incorporated, you have been selected to be the project manager for this effort. Please describe, in your own words, how GASC and/or its members may use a systems approach to problem-solving in their work in order to prevent the recurrence of the present financial crisis/meltdown in your subsector.(ii). Details on one method that may be used to gather requirements for the proposed ERP for GASC; and real-world examples from banking environments to support your point of view.(iii). Your answer should include an explanation of how you propose to apply the methodology described in (iv) above to this…arrow_forwardWhat potential problem might arise if time fences are not used? Why?arrow_forwardClaire’s Catering is providing food for a major social event next Saturday. Because Claire’s does not have enough employees to fully staff the event, the manager should implement talent management to recruit enough workers for the event. True or Falsearrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,