Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 17, Problem 16P
Chuck’s Custom Boats (CCB) builds luxury yachts to customer order. CCB has landed a contract with a mysterious New York lawyer (Mr. T). Relevant data are shown on the next page. The complication is that Mr. T wants delivery in 32 weeks or he will impose a penalty of $375 for each week his yacht is late. Note: No activity can be crashed more than two weeks.
Develop a crashing
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. Corporations and selected individuals may purchase a box for $300,000. The fixed construction cost for the upper-deck area is estimated to be $4,500,000, with a variable cost of $150,000 for each box constructed.
a. What is the breakeven point for the number of luxury boxes in the new stadium?
b. Preliminary drawings for the stadium show that space is available for the construction of up to 50 luxury boxes. Promoters indicate that buyers are available and that all 50 could be sold if constructed. What is your recommendation concerning the construction of luxury boxes? What profit is anticipated?
Chuck’s Custom Boats (CCB) builds luxury yachts to customer order. CCB has landed a contract with a wealthy customer. Relevant data are shown in the table below. The complication is that the customer wants delivery in 32 weeks or he will impose a penalty of $375 for each week his yacht is late.
Activity
Immediate Predecessor
Normal Time (NT) Weeks
Crashing Cost
1st Week
2nd Week
A
―
9
$410
$415
B
A
7
125
--
C
A
5
45
45
D
B
4
300
350
E
C
6
50
--
F
D, E
5
200
225
G
F
8
--
--
H
F
7
85
90
I
G
6
90
--
Construct a network diagram for the project
Indicate the critical path when normal activity times are used.
Develop a crashing schedule. Note: No activity can be crashed more than two weeks.
Show breakdown of work
Homework
Saved
Problem 17-15 (Static)
A construction project has indirect costs totaling $40.000 per week. Major activities in the project and their expected times in weeks
are shown in this precedence diagram.
11
13
6.
12
ces
12
6.
10
Crashing costs for each activity are:
CRASHING COSTS (5000)
First
Meek
Second
Week
$22
25
Third
Heek
Activity
1-2
2-5
$ 18
24
25
35
30
30
フ-11
11-13
1-3
15
20
33
30
36
12
24
26
3.0
8-11
3.9
40
40
10
40
12
1e
9-12
12-13
26
1-4
10
15
4-6
6-10
10-12
13
12
15
14
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
- What is the minimum cost of crashing the following project at Sawaya Robotics by 4 days? NORMAL TIME (DAYS) CRASH TIME (DAYS) 5 4 ACTIVITY Design (A) Wiring (8) Chip install (C) 7 5 3 4 7 2 2 4 NORMAL COST 300 900 500 CRASH COST 1,100 1,200 350 975 575 Software (D) Testing (E) The minimum cost of crashing the following project at Sawaya Robotics by 4 days is $1,875 (enter your response as a whole number). IMMEDIATE PREDECESSOR(S) 1,300 1,650 A, B сarrow_forwardPreceding Activity Crashed Cost per week $600 $700 $400 Activity Normal Completion Time (week) Crashed Completion time (week) A 7 5 B 12 10 A 8 2 $800 $300 $500 E C, D 5 4 F E 9 8 D. F 10 10 i. Draw the network diagram linking all the activities in a way that it shows if there exist any preceding activity/activities before starting each of the mentioned activities in the above table, ii. Showing the earliest start time, the earliest finish time, the latest start time and the latest finish time of each of the activities in the project determine the completion time of the project and the critical path. ii. Find the slack time (delay time) of each of the activities, the critical and the non-critical activities. Find the minimum possible completion time of the project by considering the crashed completion times and the minimal total cost of that crashing the project. iv. Need proper handwritten answers. Thank you!arrow_forwardThe FWO has just made the winning bid of 54 million Rs. to construct a new Building. Company has assigned you to this project to help ensure that it stays on schedule. The contract includes the following provisions: • A penalty of 300,0000 Rs. if Project has not completed construction by the deadline 47 weeks. • To provide additional incentive for speedy construction, a bonus of 150,0000 Rs. will be paid to if the building is completed within 40 weeks. Estimated Duration Crew size Activity Activity Description Immediate Predecessors (Weeks) Norm, Min. A Excavate 2 B Lay the foundation A 4 3 Put up the rough в 10 6 3 wall D Put up the roof C 6 3 Exterior plumbing C 4 2 Interior plumbing 3 G Exterior siding D 3 Exterior painting E, G 9 3 Electrical work C 3 1 J Put up the F, I 4 wallboard K install the flooring J 4 4 2 L Interior painting J 4 2 Exterior fixtures Interior fixtures M H 2 1 N K, L 6 1 Develop a comprehensive plan based on AOA or AON diagram that includes answers to the…arrow_forward
- Explain the term Crash Project?arrow_forward[Short-path problem]arrow_forwardActivity normal durations, crash durations and cost Activity Normal Duration (weeks) Crash Duration (weeks) Normal Cost ($) Crash Cost ($) A-B 4 2 300,000.00 420,000.00 B-C 3 3 100,000.00 100,000.00 B-D 2 1 50,000.00 55,000.00 B-E 6 5 150,000.00 200,000.00 C-F 3 2 30,000.00 150,000.00 C-K 3 2 20,000.00 25,000.00 D-G 2 1 300,000.00 350,000.00 E-H 10 8 60,000.00 140,000.00 F-G 3 2 160,000.00 260,000.00 F-I 3 2 350,000.00 500,000.00 F-K 2 1 170,000.00 270,000.00 F-L 2 1 330,000.00 440,000.00 F-N 2 1 250,000.00 500,000.00 G-L 2 1 60,000.00 65,000.00 H-K 10 9 100,000.00 110,000.00 I-J 2 1 10,000.00 20,000.00 J-O 3 1 30,000.00 35,000.00 K-N 8 7 50,000.00 80,000.00 L-M 4 2 40,000.00 50,000.00 M-O 2 1 5,000.00 6,000.00 N-O 12 10 200,000.00 240,000.00 Note: The Crash duration represents the minimum duration where an activity is speeded up as much as possible. The crash cost represents the increased cost…arrow_forward
- Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $1,220 per unit; variable costs = $3.75 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? Pls don't copy answer i give up votearrow_forwardDevelopment of Version 2.0 of a particular accounting software product is being considered by Jose Noguera's technology firm in Baton Rouge. The activities necessary for the completion of this project are listed in the following table D Total Cost with Normal Time Crash Time Normal Immediate Activity (weeks) (weeks) Cost Crashing Predecessor(s) A 4 3 $2,000 $2,650 B 2 1 $2,300 $3,100 TTTT C 3 3 $750 $750 D 8 4 $2,300 $2,580 A E 6 3 $1,000 $1,300 B F 3 2 $3,000 $4,400 C G 4 2 $1,600 $2,000 D, E a) Based on the given information regarding the activities for the project, the project length = weeks. b) The total cost required for completing this project on normal time = $ ▼ c) For reducing the duration of the project by one week, the activity that should be crashed first is activity The cost of the project based on the first activity selected for crashing will increase by $ weeks. d) The maximum weeks by which the project can be reduced by crashing = Total cost of crashing the project to…arrow_forwardWarehouse: 5. Causes of accidents in a store and some suggestions for avoiding them.arrow_forward
- Table 7.5 contains information about an environmental clean-up project in the township of Hiles. Shorten the project threeweeks by finding the minimum-cost schedule. Assume thatproject indirect costs and penalty costs are negligible. Identifyactivities to crash while minimizing the additional crash costs.arrow_forwardThe Professional Project Management is a project delivery system that has unique advantages over the Design-Bid-build delivery system. (true or false)arrow_forwardV what is feasibility Report ?Define when and why we need it And also define who prepare this document.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 Education
Operations 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 Learning
Production 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