Operation Management Case

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1. The R&D department is planning to bid on a large project for the development of a new communication system for commercial planes. The accompanying table shows the activities, times, and sequences required: |Activity |Immediate Predecessor |Time (weeks) | |A |- |3 | |B |A |2 | |C |A |4 | |D |A |4 | |E |B |6 | |F |C, D |6 | |G |D, F |2 | |H |D |3 | |I |E, G, H |3 |

a. Construct the appropriate network diagram. (10 points) [pic]
[pic]

b. What is the project completion time?
A-C-F-G-I OR A-D-F-G-I
=3+4+6+2+3=18 WEEKS

c. Suppose you want to shorten the completion time as much as possible, and you have the following options each at an additional cost of $1500: 1) Reduce activity C by one week;
2) Reduce activity D by one week;
3) Reduce activity G by one week;
If you will save $2000 for each week that the earliest completion time is reduced, which option, if any, would you choose? (10 points) C, D, G are good options to choose, and the cost are less than $2000....
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