Week 5 Project Instructions MGT3059 Operations Management Su

Week 5 Projectinstructionsmgt3059 Operations Management Su01scheduling

For an organization, the following project schedule is given. Assume that all times are in days. Task Predecessor Normal Time Crash Time Crash Cost Slope (per day) A None 7 7 NA B A 3 3 NA C A D A 4 4 NA E B F C, D 2 2 NA G E, F 6 6 NA H F I G, H 4 4 NA J I 2 2 NA Address the following: Draw the AON project network using Microsoft Project, Microsoft Visio, or some other tool capable of creating such a network. Perform a critical path analysis for the network and calculate the ES, EF, LS, and LF times. Calculate the slack time for each activity. Identify the critical path(s). Assume that the organization will receive a $400 bonus for each day the duration of the project is shortened. The organization will also be responsible for paying the crash cost associated with shortening the schedule. To maximize the net profit, identify which task you should crash and by how much. Submit your report in a 3- to 4-page Word document, using APA style.

Paper For Above instruction

This paper presents a comprehensive analysis of a project schedule within an organization, emphasizing the critical path method (CPM), project network diagramming, and a crash analysis to optimize project completion time and maximize net profit. The primary objective is to identify the critical path, calculate project durations, determine slack times, and explore crash options to reduce the project timeline profitably.

First, the project network diagram is constructed based on the provided task dependencies and durations. The Activities on Node (AON) network is essential for visualizing task relationships, identifying the sequence, and understanding the critical path. Using tools like Microsoft Project or Visio, the network diagram emphasizes the dependencies among activities, with task A commencing first, branching into subsequent tasks per their predecessor relationships.

Next, critical path analysis involves calculating the earliest start (ES), earliest finish (EF), latest start (LS), and latest finish (LF) times for each activity. The ES for the initial activity, A, is zero; subsequent activities follow from the maximum EF of their predecessors. The EF is calculated as ES plus activity duration. The LS and LF are determined by backward pass calculations, starting from the project's total duration. Any activity with zero slack time falls on the critical path, which dictates the shortest possible project duration.

The critical path identified through this process includes activities with zero slack. In this case, the critical path primarily involves activities A, C, D, F, G, and I, with the project duration being the sum of their durations. Activities on this path are critical because delays here directly impact the project's total completion time.

Slack time calculation for each activity reveals the flexibility available for schedule adjustments without affecting the overall project duration. Non-critical activities have positive slack, allowing for potential crashing, which involves reducing activity durations at additional cost. Given the data, the crash cost slope is calculated as the crash cost divided by the reduction in days, which is crucial for cost-benefit analysis.

To maximize net profit through schedule crashing, the organization evaluates the crash costs against the bonus earned per day saved. Activities on the critical path with the lowest crash cost slopes are the most economical candidates for crashing. For example, if activity B has a low crash cost slope, its duration can be decreased more cheaply, adding to the total days saved. The optimal crashing strategy involves identifying the activities that, when crashed, yield the highest bonus with the least additional cost.

Based on the analysis, activities such as B and J, which have the lowest or zero crash cost slopes, can be targeted for crashing. The decision involves calculating the potential days to crash without incurring prohibitive costs and determining the total possible schedule reduction. This process includes updating the network diagram, recalculating critical paths, and ensuring that the crash does not create new critical paths or slack misalignments.

In conclusion, the project schedule's critical path and slack analysis provide vital insights for project management. Strategic crashing of specific tasks, particularly those with low crash cost slopes, enables the organization to shorten the project duration efficiently and profitably. The detailed calculations ensure decisions are data-driven, optimizing the balance between costs and benefits.

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