Homework#3

(Due Date 9th May 2016)

Hilal Builders, Inc. (HC), is a small firm that specializes in the construction of private home
dwellings. HC uses a standardized project format for each assignment of house construction
projects. Only activity times and unusual circumstances change the standard network. Faisal AlLamki has been assigned to a latest rich client as project manager and has compiled the network
information and activity times for this project of a luxury villa that are given in Tables 1 and 2 as
follows:
Table 1. Network information
Activity
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P

Description
Arrange financing
Let Subcontracts
Set and pour foundations
Plumbing
Framing
Roofing
Electrical wiring
Installation of windows and doors
Ductwork and insulation
Sheetrock, paneling, and paper hanging
Installation of cabinets
Bricking
Outside trim
Inside trim (including fixtures)
Painting
Flooring

Immediate Predecessor
A
B
B
C
E
E
E
E
D,I
F,G,H,J
F,G,H,J
L
K
N
M,O

Table 2. Activity times in workdays

Activity
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P

Optimistic
8
4
10
8
4
6
8
6
10
20
8
14
8
10
10
4

Most Likely
10
10
14
10
8
10
10
8
14
22
12
16
10
14
12
6

Pessimistic
12
16
18
12
12
18
12
14
18
24
16
18
20
18
14
8

HC has a policy of passing all the construction plans through a project review committee of
colleagues. This committee traditionally checks that all details are covered, times are realistic,
and resources are available.

Questions Part A:
Faisal wishes you to do the followings:
a. Develop a report that presents a planned schedule and expected project completion time in
workdays. Include a project network in your report.
b. Explain how does this project compared to the average project. The average duration for a
construction of a villa project normally takes 120 workdays.
c. Find the probability of finishing this project in 120 workdays?
d. Also find what expected completion time will ensure a 90% chance of completing the
project in 120 workdays?
Part B
Given the project network derived in part A, Faisal also wants to be prepared to answer any
questions concerning compressing the project duration. To be ready for the compression question,
Faisal has prepared the following data, shown in Table 3, in case it is necessary to crash the project.
(Use your weighted average times computed in part A above as normal times for completing the
activities)
Table 3. Normal cost, crash cost, crash time, and crash cost/day for each activity
Activity
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P

Normal cost ($)

5000
5000
50000
30,000
20,000
40000
30,000
18000
15000
32000
18000
45000
15000
15000
14000
5000

Crash Cost ($)

5000
5000
60000
35000
25000
48000
34000
20000
20000
42000
24000
50000
18000
18000
15000
5600

Crash Time (Days)

0
0
4
4
2
4
4
2
4
8
3
5
4
4
2
1

Crash cost/day ($)

2500
1250
2500
2000
1000
1000
1250
1250
2000
1000
750
750
500
600

Questions Part B:
Using the data provided, Faisal wants you to:
a. Determine which activities and how much should each activity be crashed to meet the
target of 120 workdays. Include the project network after crashing to 120 workdays. Note
the activities crashing should be based on a least-cost criterion.

b. Model the network in linear programming for crashing the project to 115 workdays and
solve using Excel SOLVER. Attach the model and the solution done in Excel.
c. Find the optimal completion time if the rich client is willing to pay $800 per workday for
every workday reduced from its original schedule.