Critical Path Method and Program Evaluation Review Technique to Plan, Schedule, and Control Large, Complex Projects

Question One
Two recent graduates, Michael and Elyssa, own Cables By Us, a company that produces cable assemblies. Business has been good so Michael and Elyssa have decided to expand their product line to include a new cable product. The new product will be manufactured in the current facility in an area not now in use. Michael and Elyssa have decided to use a project management approach to bring the new product on line and have identified eleven activities and their precedence relationship as shown in Table 1. The duration for each activity has been estimated by three times estimates in weeks. They also manage to get information on the normal cost of each activity, their crash time and associated cost, shown in Table 2. You have been appointed by Michael and Elyssa to analyze the data and advise them on the project. You are expected to prepare a detail report based on your findings and present them to your client.
Table 1
Activity
Description
Immediate Predecessor
A
Develop product specification
None
B
Design manufacturing process
A
C
Source and purchase materials
A
D
Source and purchase tooling and equipment
B
E
Receive and install tooling and equipment
D
F
Receive materials
C
G
Pilot production run
E,F
H
Evaluate product design
G
I
Evaluate process performance
G
J
Write documentation report
H,I
K
Transition to manufacturing
J

Table 2
Time Estimates (in weeks) for Cables By Us New Product Line
Activity
Optimistic Time (a)
Most Likely Time (m)
Pessimistic Time (b)
Normal Cost(RM)
Crash Time
Crash Cost(RM)
A
3
4
6
8000
3
11000
B
3
6
9
30000
5
35000
C
1
3
4
6000
3
6000
D
4
7
9
24000
4
28000
E
10
15
20
60000
12
72000
F
2
5
8
5000
3
6500
G
2
3
4
6000
2
6000
H
2
3
5
4000
2
4000
I
2
3
5
4000
2
5000
J
2
4
6
4000
2
6400
K
2
2
2
5000
2
5000

EXECUTIVE SUMMARY
The above question introduces the critical path method (CPM) and the