Operations and Supply Chain Management The Core

158 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
3. Match the following characteristics with their relevant project team organizational
structures:
___ The project is housed within a functional
division of the firm.
___ A project manager leads personnel from
different functional areas.
___ Personnel work on a dedicated project team.
___ A team member reports to two bosses.
___ Team pride, motivation, and commitment are high.
___ Team members can work on several projects.
___ Duplication of resources is minimized.
A. Pure project
B. Functional project
C. Matrix project
LO5–2
LO5–3
4. What is the term for a group of project activities that are assigned to a single
organizational unit?
5. Your project to obtain charitable donations is now 30 days into a planned 40-day
project. The project is divided into three activities. The first activity is designed to
solicit individual donations. It is scheduled to run the first 25 days of the project
and to bring in $25,000. Even though we are 30 days into the project, we still
see that we have only 90 percent of this activity complete. The second activity
relates to company donations and is scheduled to run for 30 days starting on day 5
and extending through day 35. We estimate that, even though we should have
83 percent (25/30) of this activity complete, it is actually only 50 percent
complete. This part of the project was scheduled to bring in $150,000 in
donations. The final activity is for matching funds. This activity is scheduled to
run the last 10 days of the project and has not started. It is scheduled to bring in an
additional $50,000. So far, $175,000 has actually been brought in on the project.
Calculate the Schedule Variance, Schedule Performance Index, and Cost
(actually value in this case) Performance Index. How is the project going?
(Hint: Note that this problem is different since revenue rather than cost is the
relevant measure. Use care in how the measures are interpreted.)
6. A project to build a new bridge seems to be going very well since the project is
well ahead of schedule and costs seem to be running very low. A major milestone
has been reached where the first two activities have been totally completed and
the third activity is 60 percent complete. The planners were expecting to be only
50 percent through the third activity at this time. The first activity involves
prepping the site for the bridge. It was expected that this would cost $1,420,000
and it was done for only $1,300,000. The second activity was the pouring of
concrete for the bridge. This was expected to cost $10,500,000 but was actually
done for $9,000,000. The third and final activity is the actual construction of the
bridge superstructure. This was expected to cost a total of $8,500,000. To date,
they have spent $5,000,000 on the superstructure.
Calculate the Schedule Variance, Schedule Performance Index, and Cost
Performance Index for the project to date. How is the project going?
7. The following activities are part of a project to be scheduled using CPM:
ACTIVITY IMMEDIATE PREDECESSOR TIME (WEEKS)
A
B
C
D
E
F
G
—
A
A
C
B, D
D
E, F
6
3
7
2
4
3
7