Cabrales, Mary Rose B.

BSA-1B

Student No. 201-3142 MGT1 (16)

MANAGEMENT SCIENCE PERT –CPM (ASSESSMENT TASKS)

1. Dayagsky Construction Firm, Inc. will soon begin to work on a building for US tea that was initially started by
another firm that has gone out of business. The construction firm’s schedule of activities and related expected
completion time for US tea project are presented in the following time table:

Activity Code Activity Description Estimated Time (in weeks)

A-B Obtain on-site work permits 2
B–E Repair damages done by vandals 8
B–C Inspect construction materials left on site 1
C–E Order and receive construction materials 2
C–D Apply for waiver to add new materials 2
D–E Obtain waiver to add new materials 3
E–F Perform electric work 6
F–G Complete interior partitions 4

REQUIRED:
a. Prepare the PERT Network for the US Tea project
Answer:

b. What is the critical path and its expected time in weeks?

Answer: The critical path is A-B-E-F-G which requires 20 weeks to complete the project.

Solution:
PATH PATH TIME TOTAL PATH TIME IN WEEKS
A-B-E-F-G 2+8+6+4 20
A-B-C-E-F-G 2+1+2+6+4 15
A-B-C-D-E-F-G 2+1+2+3+6+4 18

c. What is the shortest path and its slack time in weeks?

Answer: The shortest path time is A-B-C-E-F-G which only requires 15 weeks to complete the project while its
slack time is 5 weeks.

PATH COMBINED SLACK TIME IN WEEKS

A-B-E-F-G 0
A-B-C-E-F-G 5
A-B-C-D-E-F-G 2

Solution:
Please see solution b for shortest path

Formula for Slack Time = Critical path time – path’s time

Substitution:
PATH CRITICAL PATH TIME – PATH’S TIME IN WEEKS COMBINED SLACK TIME IN WEEKS
A-B-E-F-G 20 – 20 0
A-B-C-E-F-G 20 – 15 5
A-B-C-D-E-F-G 20 - 18 2
 2. A company is faced with the following PERT network situation for a certain project (time in days):

A
Start
5 – 8 - 11 8 – 10 - 12
L I S T

O
REQUIRED:
a. Determine the expected time (𝑡𝑒 ) for each activity.
Answer:

PATH ESTIMATED TIME IN DAYS

L–A 4
L–I 8
L–O 12
A–S 18.33
I–S 9
O –S 12
S–T 10

Solution:
Formula:
𝑡𝑜 + 4𝑡𝑚+ 𝑡𝑝
𝑡𝑒 = 6

Where:
𝑡𝑒 = expected time
𝑡𝑜 = optimistic time estimate
4𝑡𝑚 = most likely time estimate
𝑡𝑝 = pessimistic time estimate

Substitution:
L – A:
2+4(4)+6 24
𝑡𝑒 = 6 = 6 = 4 days

L – I:
5+4(8)+11 48
𝑡𝑒 = 6
= 6 = 8 days

L – O:
2+4(12)+22 72
𝑡𝑒 = 6
= 6 = 12 days

A – S:
13+4(20)+17 110
𝑡𝑒 = 6
= 6 = 18.33 days

I – S:
6+4(8)+16 54
𝑡𝑒 = 6
= 6 = 9 days

O – S:
9+4(12)+15 72
𝑡𝑒 = 6
= 6 =12 days

S – T:
8+4(10)+12 60
𝑡𝑒 = 6
= 6 = 10 days

b. Identify the critical path(s)

Answer:
The critical path is L-O-S-T which requires 34 days to complete the project.
Solution:
PATH PATH TIME IN DAYS TOTAL PATH TIME IN DAYS
L-A-S-T 4 + 18.33 + 10 32.33
L-I-S-T 8 + 9 +10 27
L-O-S-T 12 + 12 + 10 34

c. What is the shortest time to complete the entire project?

Answer: The shortest time to complete the entire project is path L-I-S-T which only requires 27 days.

Solution:
Please see solution in b.

3. PERT NETWORK. A company is faced with the following PERT network situation (time in days):

B
Start

2 – 6 - 10
A
4 – 8 - 12
D E

1–3-5
C 3-4–5

REQUIRED:
a. Calculate 𝑡𝑒 (expected time) for each activity. For each activity, the estimates are 𝑡0 , 𝑡𝑚 , 𝑡𝑃 , in that order.
Answer:
PATH ESTIMATED PATH TIME IN DAYS
A-B 4
A-D 8
A-C 3
B-E 5
D-E 6
C-D 4

Solution:
Formula:
𝑡𝑜 + 4𝑡𝑚+ 𝑡𝑝
𝑡𝑒 = 6

Where:
𝑡𝑒 = expected time
𝑡𝑜 = optimistic time estimate
4𝑡𝑚 = most likely time estimate
𝑡𝑝 = pessimistic time estimate

Substitution:
A-B:
2+4(4)+6 24
𝑡𝑒 = 6 = 6 = 4 days

A-D:
4+4(8)+12 48
𝑡𝑒 = 6
= 6
= 8 days

A-C:
1+4(3)+5 18
𝑡𝑒 = 6 = 6 = 3 days

B-E:
1+4(5)+9 30
𝑡𝑒 = 6 = 6 = 5 days

D-E:
2+4(6)+10 36
𝑡𝑒 = 6
= 6 = 6 days

C-D:
3+4(4)+5 24
𝑡𝑒 = 6 = 6 = 4 days
 b. Calculate the total time for each path and identify the critical path.
Answer:
PATH TOTAL PATH TIME IN DAYS
A-B-E 9
A-D-E 14
A-C-D-E 13

The critical path is A-D-E which requires 14 days to complete the project.

Solution:
PATH PATH TIME IN DAYS TOTAL PATH TIME IN DAYS
A-B-E 4+5 9
A-D-E 8+6 14
A-C-D-E 3+4+6 13

4. PERT NETWORK. All audits have a critical path, but auditors seldom recognize it as such without the aid of
network analysis. In the auditing of liabilities, the following activities and estimated times have been identified:

0–1 Obtain schedule of liabilities 2

1–2 Mail confirmations 12
2–6 Process confirmations 39
6–7 Investigate debit balances 5
1–3 Vouch selected liabilities 64
3–4 Test accruals and amortization 4
1–4 Test pension plan 4
4–5 Reconcile interest expense to debt 8
5–7 Verify debt restriction compliance 5
7–8 Review subsequent payments 10

REQUIRED:
a. The PERT Network, identifying the critical path and including slack times.
Answers: PERT Network

5. New York Building Corporation uses the critical path method to monitor construction jobs. The company is
currently 2 weeks behind schedule on Job #181, which is subject to a P10,500 per week completion penalty.
Path A-B-C-F-G-H-I has a normal completion time of 20 weeks, and critical path A-D-E-F-G-H-I has a normal
completion time of 22 weeks. The following activities can be crashed.

Activities Cost to Crash 1 Week Cost to Crash 2 Weeks

BC P 8,000 P15,000
DE 10,000 19,600
EF 8,800 19,500

REQUIRED:
a. New York Building desires to reduce the normal completion time Job #181 and, at the same time, report
the highest possible income for the year. New York Building should crash
a. Activity BC 1 week and activity EF 1 week c. Activity EF 2 weeks
b. Activity DE 1 week and activity BC 1 week d. Activity DE 1 week and activity EF 1 week

b. Compute for the cost to crash of the activities.