Case: Nightingale ProjectA

Use any project network computer program available to you to develop the
schedule for activities (see Case Appendix for further instructions)noting
late and early times, the critical path, and estimated completion for the
project. Prepare a short memo that addresses the following questions:

1. Will the project as planned meet the October 25th deadline?

No the project completion date is 12th of December.
2. What activities lie on the critical path?
Architectural decisions> Feature specifications>Database>Review
design>Integration>Procure prototype components>Assemble
prototypes>Lab test prototype>Field test prototypes>Adjust
design>Order stock part>Assemble first production unit >Test unit
>Produce 30 units>Train sales representatives.
3. How sensitive is this network?
The project is fairly insensitive. The critical activities have a slack of at least
20-37 days.

Review Questions:

3. Why is scheduling overtime a popular choice for getting projects back on

schedule? What are the potential problems for relying on this option?
Scheduling overtime involves permanent workers already a part of the
organization so no additional costs are added. Even if direct costs are added,
even then Brooks law can avoided, reducing the additional costs of training.
The disadvantages include overtime costs as well as fatigue which come with
it. It can result in compromise on quality or turn over.
5. How can a costduration graph be used by the project manager? Explain.
A cost duration graph benefits a project manager to compare alternatives.
Each alternate increasing the project duration is directly proportional to the
project cost. Moreover, penalties and incentives can be compared against
the low cost point.
6. Reducing the project duration increases the risk of being late. Explain
Reduction in project duration is achieved by reducing the slack of noncritical
activities, thus increasing chances of discovery of new critical paths, raising
the risk of project being late. It can also influence flexibility in the project by
using the slack time. The number of critical activities and independent paths
may be increased thus increasing costs.

Exercise Questions:
4. If the indirect costs for each duration are $1,200 for 16 weeks, $1,130 for 15
weeks, $1,000 for 14 weeks, $900 for 13 weeks, $860 for 12 weeks, $820 for 11
weeks, and $790 for 10 weeks, compute the total costs for each duration. Plot these
costs on a graph. What is the optimum cost-time schedule?

1x

2
680

1x

1x

15

2x

720
Total Activities
Changed:

1x

1x

14

2x

1x

1x

5x

H/40

790
B/70

13

2x
860
B/70

1x

1x

12

2x

5x

930
D/20 E/50

11

3x

2x

Project Duration
10
11
12
13
14
15
16

101
A/10 D/200E/50

Direct Cost
1290
1010
930
860
790
720
680

Indirect Cost
790
820
860
900
1000
1130
1200

Total Cost
2080
1830
1790
1760
1790
1850
1880

5. If the indirect costs for each duration are $300 for 27 weeks, $240 for 26 weeks,
$180 for 25 weeks, $120 for 24 weeks, $60 for 23 weeks, and $50 for 22 weeks,
compute the direct, indirect and total costs for each duration. What is the optimum
cost-time schedule? The customer offers you $10 for every week you shorten the
project from your original network. Would you take it? If so for how many weeks?

10

11

15

10

11

30
0

26
330

5x

15

10

10

8x

27

F/3
0

25
380

5x

15

D/5
0

10

9x

24

470

5x

4x

15

9x

D/5
0

23
650

5x

A/80 E/100
4x

14

8x

9x

22
830

5x

A/80 E/100
13

4x

Project
Duration
Tot.
Direct
Cost
Tot.
Indirect
Cost
Tot.
Costs
Incentiv

22

23

24

25

26

27

830

650

470

380

330

300

50

60

120

180

240

300

880

710

590

560

570

600

-50

-40

-30

-20

-10

e
Costs
830
670
560
560
600
with
incentive
Taking incentive down to 25 weeks, reducing the cost and optimum-with or without
the incentive. However, increasing the chances of being late by creating two critical
paths.

7. Use the information contained below to compress one time unit per move using
the least cost method. Reduce the schedule until you reach the crash point of the
network. For each move identify what activity(s) was crashed, the adjusted total
cost, and explain your choice if you have to choose between activities that cost the
same.
Note: Crash point of the network is the point in which the duration cannot be
reduced any further.

The cheapest solution would be to crash two critical paths: ABFGI and ACEHI
Activities changed: G & H

3
1

69

Select C instead of E to avoid using ACDGI and ACDHI critical paths. The cheapest
solution can B or F. We will choose B as it appears earlier as F can be crashed if
things need to be crashed
Activities changed: B & C

77

B is used for same reason as above. E is alternative of ACEHI

Activities changed: B & E

Crash point!
E is the only alternative for the ACEHI critical path and D is the only available option
for both ACDGHI and ACDHI path. B is chosen instead of F because B is delayed and
F can still be crashed.