Project Managment

Topics: Project management, Critical path method, Cost Pages: 5 (1503 words) Published: March 8, 2013
Q 1 ) Read the case below and answer the question (s) given at the end. Electran Manufacturing Ltd, is a diversified manufacturer in two primary fields: electronic applications and transportation equipment. In the transportation equipment field. Electran products are in the forefront of technological applications, especially in terms of electrical circuitry and component packages. Electran management takes great pride in its technological leadership and has decided to support a substantial research and development (R&D) effort. Currently 74 persons are employed full-time in the R&D division, and at any one time at least twice that many more are involved to some degree in R&D projects. These employees are assigned primarily to engineering, finance marketing and production. Electran organizes its R&D effort by functional area within the division. Engineers, scientists, and technical and grouped separately. Additionally, within each of these technical specialties, employees are grouped and housed together. Electrical engineers, mechanical engineers, and merallurgical engineers, for example, are each grouped and located together. Projects rotate from group to group depending upon what work needs to be accomplished. There is a department head of the engineering, science and technical support areas and three additional project managers have individual project responsibility. There is considerable pressure on project managers, but they have limited control over staff within the R&D division and even less control over the approximately 150 employees who assist the R&D division on an occasional basis. The R&D division manager has recently read a brief article about matrix organization. He wonders if matrix organization might be helpful in relieving some of the burden from his project managers and in increasing division productivity. One of the three project managers is trying to grasp the basis of PERT. He has assembled the following data for a project soon to be started. He wants to establish a PERT, diagram for the project, and determine the earliest completion data from project start using expected times, and find the minimum cost plan. This project manager does not know whether he has enough data to proceed; even if he does have enough data, he does not know how to analysis them and apply the results. Activity Required Processors Expected Time (in days) Cost of Expedite (in $ day) A–B –– 2 100

A–C –– 4 80
A–D –– 5 70
B–E A–B,A–C 3 100
E–F B–E 6 150
F–H E–F 2 50
D–H A–D 11 100
H–I F–H,D–H 1 100
Case questions: (Assume date, if not available, with appropriate reasons) 1. Establish a PERT diagram and determine the earliest completion time. 2. The project manager has budget $200 for expending should he want to use it.

Q 2 ) A small project is having seven activities (A to G). The relevant data about these activities is given below: Activity Dependence Normal Duration (Days) Crash Duration (Days) Normal Cost (Rs.) Crash Cost (Rs.) A ––– 7 5 500 900

B A 4 2 400 600
C A 5 5 500 500
D A 6 4 800 1000
E B,C 7 4 700 1000
F C,D 5 2 800 1400
G E,F 6 4 800 1600
(I) Draw the project network. Find out the duration of each path in the network. (II) Mark the critical path in the network and find out its length. (III) What is the percentage increase in cost to complete the project in 21 days.

Q 3 ) In a transmission line project, the normal estimate and the 'crash' estimate are as given below: Activity Normal Estimate ‘Crash’ Estimate
Time (Weeks) Direct cost for the activity (Rs. lakhs) Time (weeks) Direct cost for the activity (Rs. lakhs) (1,2) 12 1 9 2.5
(2,3) 4 ––- 3 0.4
(2,4) 20 ––– 20 –––
(3,5) 20 5 14 6.5
(3,6) 8 ––– 4 0.2
(3,7) 8 ––– 4 0.2
(4,7) 8 0.5 4 1.0
(6,7) 8 0.4 5 1.0
(7,8) 12 3 9 4.0
(8,9) 4 0.1 1 0.5
Indirect costs: Rs. 35,000 per week
(i) Draw...
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