Southwestern University (a) Case Analysis
Southwestern University: (A) Southwestern University (SWU), a large state college in Stephenville, Texas, 30 miles south of the Dallas/Fort Worth metroplex, enrolls close to 20,000 students. To bolster its chances of reaching number-one ranking in the Big Eleven Conference, in 2003, SWU hired the legendary Pitterno as its head coach. One of Pitterno’s demands on joining SWU had been a new stadium. After the 6 months of SWU administrators’ study, Dr. Joel Wisner, president of SWU, had reached a decision to expand the capacity at its on-campus stadium.
The contractor, Hill Construction (Bob Hill) was given a 270 days deadline for the project. There will be a contract penalty of $10,000 per day for running late. Hill again reviewed the data and noted that the optimistic time estimates can be used as crash times. He gathered his foremen and told them, “Folks, if we’re not 75% sure we’ll finish this stadium in less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days— also for 240 days. I want to be early, not just on time!”
Problem:
If it is needed to crash the project to 250 or 240 days, how would Hill do so, and at what costs?
Objectives:
• Complete the project.
- Be 75% sure to finish the project in 270 days, or else
- Crash the project to 250 or 240 days if necessary.
- Find the best way to accomplish goal at the least cost.
• Do not miss the deadline.
- Avoid the contract penalty of $10,000 per day.
- Maintain the good reputation of Hill Construction.
Point of View: Hill construction (Bob Hill), the contractor of the project.
Time Frame: 2009- 2010 (Construction would immediately start after 2009 season ended, which would allow exactly 270 days until the 2010 season football opening game.)
Areas of Consideration:
• Duration of time that the project will be finished.
• Probability that the project be completed on a specific date.
• Critical activities
• Non-critical activities
• Additional
The contractor, Hill Construction (Bob Hill) was given a 270 days deadline for the project. There will be a contract penalty of $10,000 per day for running late. Hill again reviewed the data and noted that the optimistic time estimates can be used as crash times. He gathered his foremen and told them, “Folks, if we’re not 75% sure we’ll finish this stadium in less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days— also for 240 days. I want to be early, not just on time!”
Problem:
If it is needed to crash the project to 250 or 240 days, how would Hill do so, and at what costs?
Objectives:
• Complete the project.
- Be 75% sure to finish the project in 270 days, or else
- Crash the project to 250 or 240 days if necessary.
- Find the best way to accomplish goal at the least cost.
• Do not miss the deadline.
- Avoid the contract penalty of $10,000 per day.
- Maintain the good reputation of Hill Construction.
Point of View: Hill construction (Bob Hill), the contractor of the project.
Time Frame: 2009- 2010 (Construction would immediately start after 2009 season ended, which would allow exactly 270 days until the 2010 season football opening game.)
Areas of Consideration:
• Duration of time that the project will be finished.
• Probability that the project be completed on a specific date.
• Critical activities
• Non-critical activities
• Additional