1. Individual Assignment II
PGDM (III Semester), Project Management and Analysis
Note: To be submitted on or before 5th Dec 2012
Q 1. A restaurant chain is considering automating the billing process. Following is the list
and duration analysis of activities that has to be carried out in order to automate the
process:
Time (Days)
Immediate
Activity Description Most Most Most
Predecessor
Optimistic Likely Pessimistic
A Select the Hardware -- 4 6 8
B Design Input/output system A 5 7 15
C Design Monitoring System A 4 8 12
D Assemble computer hardware B 15 20 25
E Develop the main programs B 10 18 26
F Develop input/output routines C 8 9 16
G Create data base E 4 8 12
H Install the system D,F 1 2 3
I Test and Implement G,H 6 7 8
a) Construct an arrow diagram for this problem
b) Determine the critical path and compute the expected project completion time
c) Determine ES, EF, LS and LF time for all activities on the basis of expected time (Te)
d) Determine the probability of completing the project in 55 days
Q 2. Data for a project is:
Time (in weeks) Cost (in Rs)
Activity Preceding Activity
Normal Crash Normal Crash
A None 3 2 18000 19000
B None 8 6 600 1000
C B 6 4 10000 12000
D B 5 2 4000 10000
E A 13 10 3000 9000
F A 4 4 15000 15000
G F 2 1 1200 1400
H C, E, G 6 4 3500 4500
I F 2 1 7000 8000
a) Draw a project network diagram and find the critical path
b) If a deadline of 20 weeks is imposed for completing the project, what all activities
will be reduced in terms of time duration and what will be cost of completing the
project in 20 weeks
c) What is the minimum time in which above project can be completed and what the
cost at which project will be completed in that minimum time