Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 7, Problem 14P
A
Summary Introduction
Interpretation: The minimum cost scheduled for the project is to be calculated.
Concept Introduction: Network diagram is a graphical representation of tasks in symbols and lines for easy understanding. The networking technique is a method for planning, programming and controlling of work in progress.
B
Summary Introduction
Interpretation: The difference in the total project cost between the earliest completion and the minimum cost schedule using the normal times is to be determined.
Concept Introduction: Network diagram is a graphical representation of tasks in symbols and lines for easy understanding. The networking technique is a method for planning, programming and controlling of work in progress.
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Give an explanation of how earned value management (EVM) may be used to keep expenses under control and monitor the overall effectiveness of a project, and then hypothesise as to why it is not utilised more often. How can one determine if the data for cost variation, schedule variance, cost performance index, and schedule performance index are healthy or unhealthy? What are some basic rules of thumb?
You are in charge of a project at the local community center. The center needs to remodel one ofthe rooms in time for the start of a new program. Delays in the project mean that the center mustrent other space at a nearby church at additional cost. Time and cost data for your project arecontained in below table. Your interest is in minimizing the cost of the project to the communitycenter.Using the normal times for each activity, what is the earliest date you can complete the project?Suppose the variable overhead costs are $50 per day for your project. Also, suppose that thecenter must pay $40 per day for a temporary room on day 15 or beyond. Find the minimum-costproject schedule using below format.The AON diagram for the community center project is below.
Crash 4 times and find total cost.
Prepare and upload a 1-page cost model for this project using spreadsheet software. Use the following work breakdown structure (WBS), and document your assumptions in preparing the cost model. Assume a labor rate of $100 per hour for the project manager and $60 per hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000.
Project management
Requirements definition
Website design
Registration for recreational programs
Registration for classes and programs
Tracking system
Incentive system
Website development
Registration for recreational programs
Registration for classes and programs
Tracking system
Incentive system
Testing
Training, rollout, and support
Using the cost model you created in the first task, prepare a cost baseline by allocating the costs by WBS for each month of the project.
Assume that you have completed 3 months of the…
Chapter 7 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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 - Prob. 6PCh. 7 - Prob. 7P
Ch. 7 - Prob. 8PCh. 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 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 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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- Only typed explanation 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. What is the shortest time duration for this project regardless of cost? What is the minimum total cost associated with completing the project in 14 weeks? What is the total time of the minimum-cost schedule?arrow_forwardYou 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)?arrow_forwardYou are developing a performance progress report for a project you are managing. The following time-phased budget was developed earlier in the planning stage and is being used as the standard against which the project performance is measured. Work Packages W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 A 4 10 6 B 1 6 8 C 5 6 10 8 3 Total 4 10 6 1 6 8 5 6 10 8 3 At the end of Week 8, activity "C" is 50% complete. What is the Earned Value of this activity? Use two decimal places in your calculations.arrow_forward
- Office Automation Inc., developed a proposal for implementing a software system that will standardize the accounts payable function by automatically issuing an electronic payment upon receipt of the vendor invoice. Contained in the proposal is a list of activities that must be accomplished to complete the project. The following table contains relevant information about the activities. Time (weeks) Cost ($1,000s) Activity Description ImmediatePredecessor Normal Crash Normal Crash A Plan needs 10 8 30 70 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 (a) Develop a project network. A project network with 8 activities and 8 directed arcs is shown. Activity Start is connected to activity A. Activity A is connected to activity B and to activity D. Activity B is connected to activity E. Activity C is connected to activity F. Activity D is…arrow_forwardOffice Automation Inc., developed a proposal for implementing a software system that will standardize the accounts payable function by automatically issuing an electronic payment upon receipt of the vendor invoice. Contained in the proposal is a list of activities that must be accomplished to complete the project. The following table contains relevant information about the activities. Time (weeks) Cost ($1,000s) Activity Description ImmediatePredecessor Normal Crash Normal Crash A Plan needs 10 8 30 70 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 (a). Develop a project network. (b) Develop an activity schedule. Activity EarliestStart LatestStart EarliestFinish LatestFinish Slack A B C D E F (c) What are the critical activities? (Enter your answers as…arrow_forwardOffice Automation Inc., developed a proposal for implementing a software system that will standardize the accounts payable function by automatically issuing an electronic payment upon receipt of the vendor invoice. Contained in the proposal is a list of activities that must be accomplished to complete the project. The following table contains relevant information about the activities. Time (weeks) Cost ($1,000s) Activity Description ImmediatePredecessor Normal Crash Normal Crash A Plan needs 10 8 30 70 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 (a) Develop a project network. A project network with 8 activities and 8 directed arcs is shown. Activity Start is connected to activity A. Activity A is connected to activity B and to activity C. Activity B is connected to activity E. Activity C is connected to activity D. Activity D is…arrow_forward
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