Advanced Project Management – MSP Case Study

Part 1
Project Description
The new computer-controlled conveyor belt is an exciting project that moves and positions items
on the conveyor belt within <1 millimeter. The project will produce a new system for future
installations, and for replacement of those in the field, at low cost. The computer-controlled
conveyor belt has the potential to be a critical unit in 30 percent of the systems installed in
factories. The new system is also easier to update with future technologies. The Project Priority
Matrix for the Conveyor Belt Project (CBP) is:

Time Scope Cost

Constrain X
Enhance X
Accept X

Part 2
Use the info from Part 1 and the information provided below to complete this exercise. (See
Table A2.10.)

1. Develop the WBS outline using the software available to you.

2. Does this information (WBS) allow you to define any milestones of the project? Why or
why not? What are they? Remember: Save your file for future exercises.
3. Each work package will represent an activity.
4. The project begins January 6, 2020.
5. The following holidays are observed: January 1, Memorial Day (last Monday is May),
July 4th, Labor Day (first Monday in September), Thanksgiving Day (4 th Thursday in
November), December 25 and 26.
6. The project teams work eight-hour days, Monday through Friday.

Warning: Experience has taught students to frequently make separate backup files for each
exercise. The software is never as friendly as users expect!

Construct a network schedule for the conveyor belt project and prepare a memo that addresses
the following questions:

1. When is the project estimated to be completed? How long will the project take?
2. What is the critical path(s) for the project?
3. Which activity has the greatest amount of slack?
4. How sensitive is this network?
5. Identify two sensible milestones and explain your choices.
6. Compare the advantages/disadvantages of displaying the schedule as a network versus a
Gantt chart.
7. Include the following printouts:
• a Gantt chart.
• a network diagram highlighting the critical path.
• a schedule table reporting ES, LS, EF, LF, and slack for each activity.
Table A2.10 Conveyor Belt Project; Schedule

Duration Preceding
Activity Description Resource
(days) Activity
1 Architectural decisions Design 30 -
2 Hardware specification Development, design 54 1
3 Kernel Specification Design 31 1
4 Utilities specifications Development, design 22 1
5 Hardware design Design, development 77 2
6 Disk drivers Assembly, development 93 3
7 Memory management Development 127 3
Operating system
8 Design, documentation 33 3
documentation
9 Routine utilities Development 59 4
10 Complex utilities Development 82 4
11 Utilities documentation Documentation, design 26 4
12 Hardware documentation Documentation, design 38 5
6, 7, 8, 9, 10,
13 Integration first phase Assembly, development 62
11, 12
14 Prototypes Assembly, development 123 13
15 Serial I/O drivers Development 124 13
16 System hard/software test Assembly 53 14, 15
17 Order circuit boards Purchasing 17 16
18 Network interface Development 112 16
19 Shell Development 57 16
Documentation,
20 Project documentation 62 16
development
Assemble preproduction 17F-S, lag
21 Assembly, development 68
models 120 days
Integrated acceptance 18, 19, 20,
22 Assembly, development 105
testing 21
Note: F-S refers to a Finish-to-Start lag.
 Part 3
Remember the old saying, “A project plan is not a schedule until resources are committed.” This
exercise illustrates this subtle, but very important, difference.

Part A
Using your files from Part 2 input resources and their costs if you have not already done so. All
information is found in Tables A2.10 and A2.11.

Table A2.11 Name Group Cost ($/hr)

Organization Design R&D (2 teams) $120
Resources Development R&D (2 teams) 80
Documentation R&D (1 team) 70
Assembly/test R&D (1 team) 90
Purchasing Procurement (1 team) 50

Prepare a memo that addresses the following questions:

1. Which if any of the resources are overallocated?
2. Assume that the project is time constrained and try to resolve any overallocation
problems by leveling within slack. What happens?
3. What is the impact of leveling within slack on the sensitivity of the network?
4. Assume the project is resource constrained and resolve any overallocation problems by
leveling outside of slack. What happens?

Include a Gantt chart with the schedule table after leveling outside of slack.
Note: No splitting of activities is allowed.
Note: No partial assignments (e.g., 50 percent). All resources must be assigned 100 percent.

Part B
When you show the resource-constrained network to top management, they are visibly shaken.
After some explanation and negotiation, they make the following compromise with you:
• The project must be completed no later than April 15th, 2023.
• You may assign additional teams.

Hint: Undo leveling prior to adding new resources.

Once you have obtained a schedule that meets the time and resource constraints, prepare a memo
that addresses the following questions:
1. What changes did you make and why?
2. Is this option the lowest cost solution? Justify your answer.
3. How long will the project take?
Include a Gantt chart with a schedule table presenting the new schedule.
 Part 4
Based on the file created at the end of the Part 3, prepare a memo that addresses the following
questions:
1. How much will the project cost?
2. What does the cash flow statement tell you about how costs are distributed over the life
span of the project?

Include a month cash flow and a cost table for the project.
Once you are confident that you have the final schedule, save the file as a baseline.

Save the current schedule as the baseline!

Part 5
Prepare status reports for the first quarter of the project in 2020 and the first quarter of the project
in 2021 given the information provided here. This requires saving your resource schedule as a
baseline and inserting the appropriate status report date in the program.

Your status report should include a table containing PV, EV, AC, BAC, EACf, SV, CV, and CPI
for each activity and the whole project. The report should also address the following questions:
1. How is the project progressing in terms of cost and schedule?
2. What activities have gone well? What activities have not gone well?
3. What does the PCIB indicate in terms of how much of the project has been accomplished
to date?
4. What is the forecasted cost at completion (EACf)? What is the predicted VACf?
5. What is the estimated date of completion?

Include a Tracking Gantt chart with each report.

First Quarter, April 1, 2020

Table A2.12 summarizes the information regarding activities accomplished to date.
Be sure to save your file after each quarterly report and use it to build the next report!

Table Actual Remaining

Activity Actual Start Actual Finish
Duration Duration
A2.12
April 1, Architectural decisions Mon 1/6/20 Fri 2/14/20 30 days 0 days
2020 Hardware specification Mon 2/17/20 NA 33 days 21 days
Utilities specifications Mon 2/17/20 3/17/20 22 days 0 days
Complex Utilities Wed 3/18/20 NA 11 days 74 days
Utilities documentation Wed 3/18/20 NA 11 days 19 days
 First Quarter, April 1, 2021
Table A2.13 summarizes the information regarding activities accomplished since the last report.

Table A2.13 Actual Remaining

Activity Actual Start Actual Finish
Duration Duration
April 1, 2019
Architectural decisions Mon 1/6/20 Fri 2/14/20 30 days 0 days
Hardware specification Mon 2/17/20 Thu 4/30/20 54 days 0 days
Kernel Specification Thu 4/23/20 Fri 6/5/20 31 days 0 days
Utilities specifications Mon 2/17/20 Tue 3/17/20 22 days 0 days
Hardware design Fri 5/1/20 Tue 8/18/20 77 days 0 days
Disk drivers Mon 6/8/20 Thu 10/15/20 93 days 0 days
Memory management 127
Wed 8/19/20 Wed 2/17/21 0 days
days
Operating system
Mon 6/8/20 Wed 7/22/20 33 days 0 days
documentation
Routine utilities Mon 7/13/20 Fri 10/2/20 59 days 0 days
Complex utilities Wed 3/18/20 Wed 7/15/20 85 days 0 days
Utilities documentation Wed 3/18/20 Tue 4/28/20 30 days 0 days
Hardware documentation Wed 8/19/20 Mon 10/20/20 44 days 0 days
Integration First Phase Thu 2/18/21 NA 31 days 35days