This website uses cookies to ensure you have the best experience.

# Operations Project Management Essay

693 words - 3 pages

Homework Assignment 6

1. For the problem in Q2 of Homework 5, the company decided that the project in the previous problem has to be expedited in order to optimize (minimize) the project cost. Expediting can be used to trade direct cost for indirect cost, since expediting the project reduces the indirect cost of the project by a fixed amount per day, while expediting an activity increases its total direct cost. The Accounting Department found that indirect costs amount to \$100 per day, while activity direct costs as well as their normal and expedited times are given in the table below, from which you can compute the direct cost incurred by expediting an activity by one day.
Activity Normal
Time
(days) Expedited
Time
(days) Normal
Cost
(\$) Expedited
Cost
(\$)
A 32 26 200 500
B 21 20 300 375
C 30 30 200 200
D 45 40 200 800
...view middle of the document...

This brings the completion time down to 77 days while adding \$75 to the total cost of the project. This also adds AD as a critical path. Next, the company should expedite both A and F by 4 days, reducing the completion time to 73 days while adding an additional \$90 per week to the total cost of the project.

(b) (5 points) What is the optimal project cost?
The optimal project cost is \$3,435.

Computation:
Project cost = Original cost + (cost of expediting G) + (cost of expediting A) + (cost of expediting F)
Project cost = \$3,000 + (\$75)(1) + (\$50)(4) + (\$40)(4)
Project cost = \$3,435

2. A company decides to plan a project, with activities, precedence and random duration statistics given in the following table:
Activity Immediate
Predecessors Duration
Minimum
(weeks) Duration
Mode
(weeks) Duration
Maximum
(weeks) Duration Mean Duration Variance
A none 2 5 9 5.17 1.36
B A 1 6 8 5.50 1.36
C A 3 5 12 5.83 2.25
D B 2 4 12 5.00 2.78
E B, C 4 6 8 6.00 0.44
F B 6 7 8 7.00 0.11
G D, E 1 2 6 2.50 0.69
H F, G 4 6 16 7.33 4.00

(a) (5 points) Using the PERT method, compute the mean and variances for each activity and add them to the table above.
Mean duration = (ai + 4mi + bi)/6
Duration variance = [(bi – ai)/6]2
Activity Immediate
Predecessors Duration
Minimum
(weeks) Duration
Mode
(weeks) Duration
Maximum
(weeks) Duration Mean Duration Variance
A none 2 5 9 5.17 1.36
B A 1 6 8 5.50 1.36
C A 3 5 12 5.83 2.25
D B 2 4 12 5.00 2.78
E B, C 4 6 8 6.00 0.44
F B 6 7 8 7.00 0.11
G D, E 1 2 6 2.50 0.69
H F, G 4 6 16 7.33 4.00

(b) (5 points) Draw the project network and label the arcs with the activity name.

(c) (5 points) Assuming that the critical path is ABP1EGH, compute the probability that this path duration is between 28 weeks and 32 weeks.

Pr(28 weeks

## Other Essays Like Operations - Project Management

### It Project Management Essay

2184 words - 9 pages and turnover to operations The life cycle is sometimes referred to as the performing organization or department’s methodology for projects. Project Management Process The project management process includes the initiating, planning, executing, monitoring and controlling, and closing process groups. Reference: Mulecahy, R. (2005). PMP Exam Prep. USA. RMC Publications, Inc.

### Project Management Essay

2260 words - 10 pages /Resources_Papers_070.html> Jones, R 2007, Project management survival, viewed 2 April 2011, <http://books.google.co.uk /books?id=1F9BWK_fzFEC&pg=PA220#v=onepage&q&f=false> NetMBA, 2009, NetMBA,viewed 2 April, < http://www.netmba.com/operations/project/pert/> PMI, 2011, PMI, viewed 2 April2011, < http://www.pmi.org/en/About-Us/Executive- Management-Group/Mark-Langley.aspx> Royce, W 1990, Managing the development of large

### Vendor Plan

594 words - 3 pages Vendor Project Implementation Plan CPMGT/305 August 4, 2010 Vendor Project Implementation Plan Human Resource Plan In this section of the vendor management project the team will identify, describe and provide the overall roles and responsibilities of those who partake either internally or externally on the project. The external resources that will interact with the project are as follows: • Temp Agency • Hardware Vendor

### Introduction to Project Managementcourse

1339 words - 6 pages  systems are not in place  Operations or manufacturing environment  Projects initiated as needed The Project Management Office (PMO) Centralizes and coordinates the management of those projects  under its domain  May provide project management support functions     Training Software administration Standardized methods and procedures May be involved in the selection of projects  May manage the deployment of resources  PMBOK

### Swot Analysis

741 words - 3 pages has direct authority over the project operations. This makes project management understanding in a company better compared to a non-project-based organization. As a result, the project manager can focus on the projects and can determine what areas can be modified. It is more flexible when dealing with projects compared to non-project based organizations. In addition, response time when issues emerge is improved because the project manager has

### Program Management

1482 words - 6 pages 1. Prepare opening comments that give the class an overview of project management. To understand what project management is we must first define what a project is. A project is a structured coordinated series of event, which result in a final deliverable. The deliverable in questions can be service oriented or produce a product to be delivered. A defined project will typically have a predetermined start and end date for the tasks within the

### Bus375 Assignment 4: Project Motorcycle

1811 words - 8 pages project. Money should be divided into a proportional manner, to avoid grinding any of the two undertakings to a halt. Purchases should be made in a considerate manner and during the right period to avoid cash flow problems. Suggest the project management leadership style that is most conducive to overseeing the operation of the business growth plan. The most conducive project management leadership style that will oversee the operations of the

### Motorcycle Assignment 2

1807 words - 8 pages management leadership style that will oversee the operations of the business growth plan is the democratic management style (Hopkin, 2012). This style is mainly about building the team’s consensus. If the team does not support the idea, there are high chances that the project will not be a success. The project manager should listen to all the views of team members before, during and after completion of the project. He should be open to new

### Risk Management: Integral Part of Project Management

2584 words - 11 pages PROJECT MANAGEMENT PLAN Project Management Plan Paper Risk management is an integral part of project management. In the current economic scenario, companies have had to deal with numerous uncertainties dealing with unemployment, credit crunch, deflation, devaluation of assets, and political uncertainty. As a result, many of the projects within these companies inherit these uncertainties. A successful project manager should identify these

### It 221 Final

3106 words - 13 pages project will be: a. The Operations Management Team will provide the project with the management of the Implementation, Testing, and Maintenance of the Third Shift processing to ensure that the productivity numbers are being achieved and the labor costs are kept within budget. b. The project manager will oversee all phases of the process making sure that all teams are aware of their responsibilities, fulfilling project obligations

### Bussiness

1270 words - 6 pages exercise control over all the Project Offices as well as all the Vessels. Project Offices are headed by Project-in-charge (PIC) and Vessels are headed by Masters. Masters of all DCI vessels, report to PICs who in turn report to HOD (Ops). Operations department strives for improvement of performance/ production, provides safe practices in dredging operations, complying with all Statutory Rules & Regulations of the Government, Ports and by

## Related Papers

### Air Freight Logistics Operations Project Essay

640 words - 3 pages DCO21613 Air Freight Logistics Operations Objectives: Project Understand and discuss the insights of the Hong Kong and international business environment in air cargo industry. Details: In March 2012, the Hong Kong Government has approved in principle to adopt, for planning purposes, the three-runway option as the future development direction for Hong Kong International Airport (HKIA), with the recommendation by Airport Authority Hong

### Project Management Paper

1214 words - 5 pages I received full credit for this paper - 100 % Project Management Paper MGT/437 July 8, 2013 Jenny Kirgis, MBA Project Management Paper The purpose of this paper is to define the concepts that are involved in project management. Organizations across the globe utilize a particular kind of organized methodology to manage business projects. Project management is a means that brings significant benefits and discipline

### Application Form Instructions Essay

1310 words - 6 pages discuss whether project operations will be extended to other locations, as well as whether the experience can be applied to other sectors. III. PROJECT IMPLEMENTATION AND MANAGEMENT PLAN A. Expected project results This section should describe the overall results that the project is expected to accomplish and whether there may be unintended effects of the project, and how these possible challenges will be addressed. The discussion should

### Delivery Manager Responsibilities Essay

620 words - 3 pages , Network, Operations and Security. Risk Management - Includes the processes concerned with identifying, analyzing, and responding to project risk so that it will decrease the chance of a risk’s occurrence and/or its impact on the engagement Knowledge Management - The process of capturing, storing, and indexing the information gathered. It also involves sharing everyone’s expertise, experience and knowledge. Business Management - The process