MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
12th Edition
ISBN: 9780134742366
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 7, Problem 13P
The Advanced Tech Company has a project to design an integrated information database for a major bank. Data for the project are given in Table 7.6. Indirect project costs amount to $300 per day. The company will incur a $150 per day penalty for each (lay the project lasts beyond day 14.
- What is the project’s duration if only normal times are used?
- What is the minimum-cost
schedule ? - What is the critical path for the minimum-cost schedule?
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The table below contains data for the installation of new equipment in a manufacturing process at Excello Corporation. Your company is responsible for the installation project. Indirect costs are $12,000 per week, and a penalty cost of $10,000 per week will be incurred by your company for every week the project is delayed beyond week 14.
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You are the manager of a project to improve a billing processat your firm. Table 7.7 contains the data you will need toconduct a cost analysis of the project. Indirect costs are $1,600per week, and penalty costs are $1,200 per week after week 12.a. What is the minimum-cost schedule for this project?b. What is the difference in total project costs between the ear-liest completion time of the project using “normal” timesand the minimum-cost schedule you derived in part (a)?
Justify the use of earned value management (EVM) to control expenses and monitor the effectiveness of a project, and speculate as to why it is not used more often. How can one determine if a cost variation, a schedule variance, a cost performance index, or a schedule performance index is favorable or unfavorable? What are some general criteria to follow?
Chapter 7 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
Ch. 7 - One of your colleagues comments that software is...Ch. 7 - Explain how to determine the slack for each...Ch. 7 - Define risk as it applies to projects. What are...Ch. 7 - Consider the following data for a project to...Ch. 7 - The following information is known about a project...Ch. 7 - A project for improving a billing process has the...Ch. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Consider the following information for a project...Ch. 7 - Consider the following data for a project to...
Ch. 7 - Paul Silver, owner of Sculptures International,...Ch. 7 - Prob. 9PCh. 7 - The following information concerns a project to...Ch. 7 - Consider a project to produce custom door moldings...Ch. 7 - Table 7.5 contains information about au...Ch. 7 - The Advanced Tech Company has a project to design...Ch. 7 - Prob. 14PCh. 7 - Table 7.8 contains data for the installation of...Ch. 7 - The diagram in Figure 7.12 was developed for the...Ch. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - You are the project manager of the software...Ch. 7 - Jordanne King, the project manager for Webjets...Ch. 7 - Recently, you were assigned to manage a project to...Ch. 7 - In Solved Problem 2, estimate the probability that...Ch. 7 - The director of continuing education at Bluebird...Ch. 7 - Gabrielle Kramer, owner of Pet Paradise, is...Ch. 7 - The project manager of Good Public Relations...Ch. 7 - Consider the office renovation project data in...Ch. 7 - Activity B and activity K are critical activities....Ch. 7 - Prob. 2AMECh. 7 - Prob. 3AMECh. 7 - Prob. 4AMECh. 7 - Prob. 5AMECh. 7 - Assess the four categories of a risk-management...Ch. 7 - Prob. 2VCCh. 7 - Assume you are Denise Tower and have...Ch. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - Prob. 3CCh. 7 - Prob. 4C
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- You are in charge of a project at the local community center. The center needs to remodel one of the rooms in time for the start of a new program. Delays in the project mean that the center must rent other space at a nearby church at additional cost. Time and cost data for your project are contained in 7.10. Your interest is in minimizing the cost of theproject to the community center.a. Using the normal times for each activity, what is the earliest date you can complete the project?b. Suppose the variable overhead costs are $50 per day for your project. Also, suppose that the center must pay $40 per day for a temporary room on day 15 or beyond. Find the minimum-cost project schedule.arrow_forwardIn what ways can you utilize Earned Value Management (EVM) as a cost-control tool or a way to evaluate project performance? When evaluating cost variance, schedule variance, cost performance index and schedule performance index figures what are some basic rules of thumb?arrow_forwardWhy is earned value management (EVM) not utilized more frequently? Describe how it may be used to manage expenses and gauge project effectiveness. What are some broad guidelines for judging the quality of figures for cost variation, schedule variance, cost performance index, and schedule performance index?arrow_forward
- Case Project 3 Case Project: Think of all the tasks that you perform when you purchase a car. Include any research, decisions, or financial issues that relate to the purchase. Create a WBS that shows all the tasks, their estimated duration, and any predecessor tasks.arrow_forwardYou are the project manager of the software installation project in Table. You would like to find the minimum- cost schedule for your project. There is a $1,000-per-week penalty for each week the project is delayed beyond week 25. In addition, your project team determined that indirect project costs are $2,500 per week. a. What would be your target completion week? b. How much would you save in total project costs with your schedule?arrow_forwardThe Advanced Tech Company has a project to design anintegrated information database for a major bank. Datafor the project are given in Table 7.6. Indirect project costsamount to $300 per day. The company will incur a $150 perday penalty for each day the project lasts beyond day 14.a. What is the project’s duration if only normal times are used?b. What is the minimum-cost schedule?c. What is the critical path for the minimum-cost schedule?arrow_forward
- You are the project manager of the software installation project in Table 7.12. You would like to find the minimum-cost schedule for your project. There is a $1,000-per-week penalty for each week the project is delayed beyond week 25. In addition, your project team determined that indirect project costs are $2,500 per week.a. What would be your target completion week?b. How much would you save in total project costs with your schedule?arrow_forwardUse Critical Path Method to estimate in how many weeks the project below will be submitted and find the critical path (Choose 2 answers weeks and critical path) Activity A: Prepare Initial design B: Identify now potential clients C: Develop prospectus for tenants A D: Prepare final design E: Obtain planning permission F: Obtain finance from bank G: Select controctor H: Construction I: Finalize tenant contracts J: Tenants move In dependent time 3. 8. 3. G, F В, с, Е I, H 17 13 34 Weeks 29 Weeks Critical path : A-G-E-F-H-J Critical path : A-D-E-F-H-J O Critical path : A-C-E-F-H-J 35 weeks Click Save and Submit to save and submit. Click Save All Answers to save all answers.arrow_forward. 1. Project Scope & Constraints The new payroll system project has been approved. The new system will reduce clerical time and errors, improve morale in the payroll department, and avoid possible fines and penalties for noncompliance. The system must be installed by January 1st to meet new federal reporting rules, all expenses must be approved in advance, and the system should have a modular design if possible. The new system is expected to be announced in a year-end report if it is ready by mid-December. 1. Why is it important to define the project scope? How would you describe the scope of the payroll project in this case? 2. Based upon the project scope, identify the constraints, and determine its characteristics: present versus future, internal versus external, and mandatory versus desirable. 3. What questions would you ask to determine the feasibility of this project? 4. Given the project time constraints, could you shorten the typical steps in the preliminary investigation…arrow_forward
- Project Duration= Planning on spending per month Project Budget (BAC) Percent complete per month Performance Analysis % Complete Planned Value (PV) Actual Cost (AC) Earned Value (EV) Schedule Variance (SV) Schedule Performance Index (SPI) Cost Variance (CV) Cost Performance Index (CPI) Estimate at Completion (EAC) Estimate to Complete (ETC) Variance at Completion (VAC) 5 months $300,000.00 $1,500,000.00 Month 1 20% 20% of work completed 15% of work completed Spent additional $110,000 Month 2 Instructions: Utilizing the EVM cheat sheet provided by the instructor, complete the calculations i formulas and functions to attain your answers. Please do not simply plug in numbers. This exerci ability to use Excel. Finally, answer the questions below to explain your answers. Question 1: What do your SV numbers tell you about the project schedule and how? Answer 1: Question 2: What do your SPI numbers tell you about the project schedule and how? Answer 2:arrow_forwardTime frame is the project timeline from start (building the factory) to finish (start of production). Remember you can only start production after Government Building inspection and approval. so, what is the time frame of yogurt manufacturer?arrow_forwardProjected costs are calculated during the planning phase of a project and must be approved before work begins. 1. How does a project engineer prepare the projected costs? Describe the procedure in detailed form. As the project plan is executed, expenses are documented and tracked so things stay within the cost management plan. 2. How are expenses documented and tracked? 3. As the project manager, what will you do if the expenses go beyond the cost management plan? Once the project is completed, predicted costs vs. actual costs are compared, providing benchmarks for future cost management plans and project budgets. 4. How will you use the results of the comparison between the predicted and actual costs for your future projects?arrow_forward
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