Learning Objectives

At the end of the module, the student will: Understand the role and application of PERT/CPM Learn how to define a project in terms of activities such that a network can be used to describe the project. Know how to compute the critical path and the project completion time. Know how to convert optimistic, most probable, and pessimistic time estimates into expected activity time estimates. With uncertain activity times, be able to compute the probability of the project being completed by a specific time. Understand the concept and need for crashing, and know how to make incremental crashing decisions based on time-cost tradeoffs

Readings

Anderson, D., Sweeney, D., and Williams, T. (1998). Quantitative Methods for Business (7th ed.). Cincinnati, OH: South-Western College Publishing. Chap 12 Project Scheduling: PERT/CPM (Skim pages 512-513) Anderson, D., Sweeney, D., and Williams, T. (2000). The Management Scientist for Windows 95, Windows 98, and Windows NT (Version 5.0). Cincinnati, OH: South-Western College Publishing. Chap 8 PERT/CPM

Notes

The following topics are included in summary notes for Module Three. Module 3.1 Notes: Project Scheduling Module 3.2 Notes: Uncertain Activity Times Module 3.3 Notes: Time-Cost Tradeoffs

Assignment

The case assignment for Module 3 is Parts 1 - 3, "Warehouse Expansion Project," pp. 524-526 in the text. You do not need to submit a project network, but you may want to sketch one to visualize the activity relationships. The Management Scientist is used to provide information needed to answer questions in Parts 1, 2 and 3. Probability analysis for Parts 1 and 2 require project completion time and variance output from The Management Scientist. The probabilities may be obtained from the Z-Table in the text, or from the Z-Table in Excel. This is demonstrated in Module 3.2 Notes. For Part 3, provide a recommendation on which activity to crash if you want to crash one week. This is a change to the case which asks for a complete crashing schedule beyond one week. To do that, we need linear programming which we cover after Spring Break. The Management Scientist provides information concerning activity times and status to answer this part. You may answer the questions in Parts 1 - 3 directly in an e-mail text to the instructor. Insert the appropriate Management Scientist PERT/CPM OUT file in the e-mail. Alternatively, you may prepare your answers to Parts 1 - 3 in a Word document attached to an e-mail to the instructor. The appropriate Management Scientist PERT/CPM OUT file may be inserted in the Word Document or separately attached to the e-mail to the instructor. As a final alternative, you may fax your answers in a Word document and computer printout to the instructor at (941) 590-7330. Case 3 is due February 24, 2001.

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