Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 17, Problem 10P
The project described in the following table is
a. If you were the manager of this project, would you be concerned? Explain.
b. If there is a penalty of $5,000 a week for each week the project is late, what is the probability of incurring a penalty of at least $5,000?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The project described in the following table is scheduled to be completed in 11 weeks. Constructa network diagram using AOA or AON (see Example 5 for either type). Then answer the following questions:a. If you were the manager of this project, would you be concerned? Explain.b. If there is a penalty of $5,000 a week for each week the project is late, what is the probabilityof incurring a penalty of at least $5,000?Path ActivityEstimated Time(weeks)StandardDeviation (wks.)A C 4 0.70D 6 0.90B E 3 0.62F 9 1.90
What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days?
Normal
Cost
$800
$200
$600
$750
$1,200
Normal
Crash
Activity Time (days) Time (days)
4
3
8
6
The total cost of crashing the project by 4 days is $
ABCDE
487
355
(Enter your response as a whole number.)
Total Cost
with Crashing Immediate Predecessor(s)
$1,500
$1,650
By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.)
Each Activity Should be
Reduced BY
(days)
Activity
A
B
C
D
E
$1,100
$600
$650
A
C
Problem Statement: Project Control and Monitoring
You are working on a manufacturing project having a budget of PKR 3,600,000 and expected time of its completion is one year. There is an ideal condition that your budget and work are evenly spread across the duration of the project that is twelve month. At the end of forth month, the senior management has called a meeting and invited all the stakeholders to brief about the status of the project. You being the PM of this project is giving the presentation to all the attendees and informed that project is on schedule and PKR 1,800,000 have already been spent on the project.
Required:
Calculate Cost and Schedule Variance
What is SPI and CPI of the project?
Estimate at completion and Estimated time to complete?
Chapter 17 Solutions
Operations Management
Ch. 17 - A project manager may need two skill setsthose of...Ch. 17 - Explain the term project champion and list some...Ch. 17 - List the steps in risk management.Ch. 17 - Give some examples of ethical issues that may...Ch. 17 - What are the key advantages of using project...Ch. 17 - What is a work breakdown structure, and how is it...Ch. 17 - Identify the term being described for each of the...Ch. 17 - List the main advantages of PERT. List the main...Ch. 17 - Why might a probabilistic estimate of a projects...Ch. 17 - Define each of these terms, and indicate how each...
Ch. 17 - Why might a person wish to be involved with a...Ch. 17 - Prob. 12DRQCh. 17 - What are some aspects of the project managers job...Ch. 17 - What is the main benefit of a project organization...Ch. 17 - What trade-offs are associated with time and cost...Ch. 17 - Who needs to be involved in assessing the cost of...Ch. 17 - Prob. 3TSCh. 17 - Project management techniques have been used...Ch. 17 - Give three examples of unethical conduct involving...Ch. 17 - For each of the following network diagrams,...Ch. 17 - Chris received new word processing software for...Ch. 17 - Prepare a Gantt chart for each of the following in...Ch. 17 - a. Develop a list of activities and their...Ch. 17 - For each of the problems listed, determine the...Ch. 17 - PRINTED BY: 92248ddb24ccbc6@placeholder.10274.edu....Ch. 17 - Three recent college graduates have formed a...Ch. 17 - The new director of special events at a large...Ch. 17 - PRINTED BY: 92248ddb24ccbc6@placeholder.10274.edu....Ch. 17 - The project described in the following table is...Ch. 17 - The following precedence diagram reflects three...Ch. 17 - A project manager has compiled a list of major...Ch. 17 - Here is a list of activity times for a project as...Ch. 17 - The project manager of a task force planning the...Ch. 17 - PRINTED BY: 92248ddb24ccbc6@placeholder.10274.edu....Ch. 17 - Chucks Custom Boats (CCB) builds luxury yachts to...Ch. 17 - Prob. 17PCh. 17 - Create a risk matrix in the style of Figure 17.13...Ch. 17 - Create a risk matrix for this project: Explain...Ch. 17 - CASE: The Case of the Mexican crazy quilt 1. The...Ch. 17 - CASE: The Case of the Mexican crazy quilt 2. The...Ch. 17 - CASE: The Case of the Mexican crazy quilt 3. The...Ch. 17 - CASE: The Case of the Mexican crazy quilt 4. The...Ch. 17 - CASE: The Case of the Mexican crazy quilt 5. The...Ch. 17 - B. Smitty Smith is a project manager for a large...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Project Scope Management Khan, (2006) (see below) states that, "Managing the scope of a project is the most important function of a project manager ... Effective scope management of a project also ensures the success of key completion areas, including time, cost, and quality. Project scope management can be further subdivided into its components which include: project initiation, scope planning, scope definition, scope verification, and scope change control." Based on your Integrated Project: Select two of the subdivisions above and discuss the primary issues that could arise from the process. Your response should begin with a definition of the selected subdivision before detailing the selected processarrow_forwardOn June 12, 2013, the Delta Corporation was awarded a $160,000 contract for testing a product. The contract consisted of $143,000 for labor and materials, the remaining $17,000 was profit. The contract had a scheduled start date of July 3. The network logic, as defined by the project manager and approved by the customer is the following: NETWORK LOGIC / ACTIVITY TIME (Weeks) AB 7 AC 10 AD 8 BC 4 BE 2 CF 3 DF 5 EF 2 FG 1 On August 27, 2013, the executive steering committee received the following report indicating the status of the project as of this time (end of week 8) ACTIVITY % COMPLETE ACTUAL COST TIME REMAINING (Weeks) AB 100 $23,500 0 AC 60 $19,200 4 AD 87.5 $37,500 1 BC 50 $8,000 2 BE 50 $5,500 1 Is the project ahead of schedule or behind schedule and over budget or under budget? What recommendations would you make for this project?arrow_forwardCan you help me with this problem The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Following are five projects under consideration. 1. Using the scoring matrix in the following chart, which project would you rate highest? Lowest? 2. If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection change? What are the three highest-weighted project scores with this new weight? 3. Why is it important that the weights mirror critical strategic factors?arrow_forward
- A potential situation that could cause a negative or positive impact to the project is known as a(n): A) Activity B) Problem C) Risk D) Issuearrow_forward10. The project described in the following table is scheduled to be completed in 11 weeks. Constructa network diagram using AOA or AON (see Example 5 for either type). Then answer the followingquestions:a. If you were the manager of this project, would you be concerned? Explain.b. If there is a penalty of $5,000 a week for each week the project is late, what is the probabilityof incurring a penalty of at least $5,000? Path Activity Estimated time(Weeks) Std. Dev(Wks) A C 4 0.7 D 6 0.9 B E 3 0.62 F 9 1.9arrow_forwardYou are the project manager of the software installationproject in Table 7.12. You would like to find the minimum-costschedule for your project. There is a $1,000-per-week penaltyfor each week the project is delayed beyond week 25. In addi-tion, your project team determined that indirect project costsare $2,500 per week.a. What would be your target completion week?b. How much would you save in total project costs with yourschedule?arrow_forward
- What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? Normal Crash Activity Time (days) Time (days) A B C D E 580 4 (O ∞ 6 8 4 6 3 4 5 Normal Cost Activity A B C D E $800 $200 $600 $750 $1,200 Total Cost with Crashing Immediate Predecessor(s) $1,100 $500 $650 The total cost of crashing the project by 4 days is $ $1,500 $1,650 By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the tab below. (Enter your responses as whole numbers.) Each Activity Should be Reduced BY (days) 1 0 1 2 3 | | | < 0 (Enter your response as a whole number.)arrow_forwardUsing your results from Problem 6,(a) Calculate the probability that the project will be completedin 38 weeks.(b) Calculate the probability that the project will be completedin 42 weeksarrow_forwardWhat is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? Normal Crash Time Activity Time (days) (days) AB А C D E 67555 5 BCD w 55 с 4 2 Activity A E 3 Normal Cost $800 $300 $600 $750 $1,200 Immediate Total Cost with Crashing Predecessor(s) $1,100 $500 By how many days should each activity be crashed to reduce the project completion time by 4 days? Fill in the table below. (Enter your responses as whole numbers.) $650 $1,500 $1,650 - Each Activity Should be Reduced BY (days) A Carrow_forward
- After six months of work on the project’s site, your company collected the following information relating to work done so far on the project BAC=$156,478.00, planned value=$95,565.24, Earned value =$92, 985.56, Actual cost =$95986.60. Calculate the cost and schedule performance indices and interpret your resultsarrow_forwardThe table below contains data for the installation of new equipment in a manufacturing process for a steel corporation. Your company is responsible for the installation project. Indirect costs are $6,000 per week, and a penalty cost of $10,000 per week will be incurred by your company for every week the project is delayed beyond week 15. Activity Immediate Predecessor(s) Normal Time (weeks) Crash Time (weeks) Normal Cost ($) Crash Cost ($) A None 2 1 7,000 10,000 B None 2 2 3,000 3,000 C A 3 1 12,000 40,000 D B 3 2 12,000 28,000 E C 1 1 8,000 8,000 F D, E 5 3 5,000 15,000 G E 3 2 9,000 18,000 H F, G 8 6 14,000 32,000 Construct a network diagram for the project. What are the project completion time and the total cost under normal conditions? What is the shortest time duration for this project regardless of cost? What is the resulting total cost? What is the…arrow_forwardProject Typhoon has a net present value of $10,000 and a profitability index of 1.01. Project Cyclone has a net present value of $10,000 and a profitability index of 1.10. Project SurfsUp has a net present value of $10,000 and a profitability index of 1.05. If only one project could be undertaken, what should the oraganiztion select?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY