Operations and Supply Chain Management The Core

PROJECTS chapter 5 157
(1) 1st week: CP = A–B–D–H–I. A is least expensive at $500. Critical path stays the same.
(2) 2nd week: A is still the least expensive at $500. Critical path stays the same.
(3) 3rd week: Because A is no longer available, the choices are B (at $3,000), D (at $2,000),
H (at $2,333), or I (at $9,000). Therefore, choose D at $2,000.
The total project cost if shortened by three weeks is
A
B
C
D
E
F
G
H
I
$11,000
6,000
4,000
16,000
9,000
7,000
13,000
11,000
20,000
$ 97,000
DISCUSSION QUESTIONS
LO5–1
LO5–2
LO5–3
LO5–4
1. What was the most complex project you have been involved in? Give examples of
the following as they pertain to the project: the work breakdown structure, tasks,
subtasks, and work package. Were you on the critical path? Did it have a good
project manager?
2. What are some reasons project scheduling is not done well?
3. Discuss the graphic presentations in Exhibit 5.4. Are there any other graphic
outputs you would like to see if you were project manager?
4. Why is it important to use earned value management (EVM) in the overall
management of projects? Compare to the use of baseline and current schedules
only.
5. Consider the EVM charts in Exhibit 5.5. Are there any other measures you might
want to use in the management of a project? What are some controllable variables
that may affect the costs being tracked?
6. Which characteristics must a project have for critical path scheduling to be
applicable? What types of projects have been subjected to critical path analysis?
7. What are the underlying assumptions of minimum-cost scheduling? Are they
equally realistic?
8. “Project control should always focus on the critical path.” Comment.
9. Why would subcontractors for a government project want their activities on the
critical path? Under what conditions would they try to avoid being on the critical
path?
10. What do you think might be some barriers to the successful, effective use of the
project management software packages discussed in the chapter?
OBJECTIVE QUESTIONS
LO5–1
1. What are the three types of projects based on the amount of change involved?
2. What are the four major categories of projects based on the type of change
involved?