Chapter 5 Exercise 2 Page 149: Project WBS With Co

Chapter 5 Exercise 2 Page 149 Below Is A Project Wbs With Cost

Analyze a project Work Breakdown Structure (WBS) with cost distributions to estimate specific deliverable costs, identify weaknesses in the estimating approach, develop a project network, and review maintenance concepts including schedule, costs, and key considerations for equipment upkeep and reliability.

Sample Paper For Above instruction

Introduction

Effective project management relies heavily on accurate estimation, scheduling, and maintenance planning. The assignment focuses on analyzing a project WBS with cost allocations, developing a project network, and understanding maintenance strategies. These aspects are critical in ensuring project success, controlling costs, and maintaining operational efficiency.

Part 1: Cost Estimation from WBS

The first task involves interpreting an existing project WBS with cost distribution by percentage. Given a total project cost of $600,000, the first step is to determine the estimated costs for specified deliverables such as design, programming, and in-house testing. For example, if the WBS allocates 25% to design, then the estimated cost for design is 25% of $600,000, equaling $150,000. Similar calculations apply for programming and testing based on their respective percentage allocations. Accurate estimation allows for precise budgeting and resource allocation, reducing the risk of cost overruns.

This process, however, is not without weaknesses. A primary concern is that percentage-based estimates do not account for project scope changes or unexpected complexities. They assume uniformity in costs across projects, which is often inaccurate due to variability in labor, materials, or unforeseen challenges. Additionally, this method oversimplifies the nuanced relationships between project components, potentially leading to inaccurate forecasts.

Part 2: Developing an AON Project Network

Constructing an Activity on Node (AON) network from provided task data involves identifying dependencies and durations. The network begins with the surveying activity, followed by installation tasks, excavation, and foundation pouring, each with specified durations and predecessor relationships. Applying forward pass calculations determines the earliest start and finish times, while backward pass identifies the latest allowable start and finish, revealing activity slack and critical path.

For example, the surveying activity (A) takes 2 days and has no predecessor, so it starts at day 0 and ends by day 2. Installing drainage (B) depends on A and takes 5 days, thus starting on day 2 and ending on day 7 if there are no delays. The total project duration is determined by the critical path, which, based on the latest activity finish times, might be approximately 14 days, assuming no delays. The critical path method helps prioritize tasks and allocate resources efficiently, minimizing project duration.

Part 3: Maintenance and Reliability Planning

Maintenance involves activities to sustain facilities and equipment functionality while minimizing costs. Key strategies include preventive, predictive, and breakdown maintenance. Preventive maintenance schedules are often based on time intervals, usage, or condition monitoring, aiming to prevent failures before they occur. For example, machinery in manufacturing might be inspected bi-weekly or after certain usage hours to ensure optimal performance.

The benefits of preventive maintenance over breakdown maintenance include reduced downtime, lower repair costs, and extended equipment life. However, preventive strategies sometimes lead to unnecessary maintenance if scheduled too frequently, increasing costs without proportional benefits. Good records, such as maintenance logs and condition monitoring data, improve predictive maintenance accuracy. This approach involves analyzing equipment condition data to predict failures, enabling timely interventions that avoid costly breakdowns.

Reliability-centered maintenance (RCM) prioritizes tasks based on criticality and failure impact, optimizing maintenance resources. The Pareto principle often guides maintenance focus, as a small percentage of equipment failures typically causes the majority of operational disruptions. Implementing structured maintenance schedules is vital before adopting lean systems, ensuring that equipment issues do not hinder efficiency improvements.

Part 4: Cost-Benefit Analysis of Maintenance Strategies

Cost analysis of different maintenance approaches involves considering fixed costs, failure probabilities, and repair costs. For example, given the probability of recalibration needs and associated costs, choosing between ad-hoc recalibrations or service contracts depends on expected total costs. Quantitative methods, such as expected value calculations, assist decision-making.

Similarly, analyzing breakdown frequencies and repair costs, then comparing preventive versus reactive maintenance, guides optimal strategy selection. Preventive maintenance options with fixed costs might be more cost-effective when breakdown likelihoods are high, while reactive or as-needed service could be preferable when failures are infrequent or costly. Properly balancing maintenance costs against failure risks can lead to significant savings and operational reliability.

Conclusion

In conclusion, accurate project cost estimation, effective scheduling through network analysis, and strategic maintenance planning are fundamental to project success and operational efficiency. Understanding the weaknesses inherent in simple estimation approaches encourages more sophisticated and adaptive methods. Additionally, leveraging tools like AON networks and maintenance strategies ensures optimal resource utilization and system reliability, ultimately reducing costs and enhancing performance.

References

• Larson, E. W., & Gray, C. F. (2017). Project Management: The Managerial Process (7th ed.). McGraw-Hill Education.
• Heizer, J., Render, B., & Munson, C. (2017). Operations Management (12th ed.). Pearson.
• Petersen, L., & Helms, M. (2019). Maintenance and Reliability Best Practices. McGraw-Hill.
• Sharma, S. (2015). Fundamentals of Project Scheduling. Wiley.
• Hopp, W. J., & Spearman, M. L. (2011). Factory Physics (3rd ed.). Waveland Press.
• Sullivan, R., & Wicks, E. (2014). Operations Management, Sustainability, and Supply Chain Management. Pearson.
• Mobley, R. K. (2002). An Introduction to Predictive Maintenance. Elsevier.
• Jardine, A. K. S., et al. (2006). Asset Maintenance Management. Elsevier.
• ISO 55000. (2014). Asset Management Standard. International Organization for Standardization.
• Moubray, J. (1997). Reliability-Centered Maintenance. Industrial Press.