TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

DIVISION OF DEPARTMENT OF ECONOMICS

PROJECT MANAGEMENT REPORT

REDUCING INKWELL’S “CHRISTMAS

AND NEW YEAR WITH INWELL”
PROJECT DURATION

Group: 05 FOR EXAMINERS ONLY

Semester: 1 Grade (in number):
Academic year: 2023 -2024 ……………………………
Lecturer: Le Phuoc Luong Grade (in words)
Submission Date: 25th November 2023 ……………………………
Examiner 1 (Signature &
Full name)
……………………………
Examiner 2 (Signature &
Full name)
……………………………

HO CHI MINH CITY, 2023

 TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
DIVISION OF DEPARTMENT OF ECONOMICS

PROJECT MANAGEMENT REPORT

REDUCING INKWELL’S “CHRISTMAS

AND NEW YEAR WITH INWELL”
PROJECT DURATION

No. Student’s Full Name Student ID

1 Lữ Sơn Tùng 720K0633
2 Văn Thị Thùy Trang 721K0394
3 Trần Lê Thanh Tuệ 721K0456
4 Nguyễn Trần Đông Quân 720K0982
5 Phan Ngọc Hải Triều 721K0258
6 Dương Đức Thịnh 721K0428
7 Bùi Hoàng Phúc 721K0383
8 Nguyễn Đăng Quang 721K0453
9 Nguyễn Đình Vũ 720K0648
10 Phạm Tuyết Trân 721K0455

HO CHI MINH CITY, 2023

 ACKNOWLEDGMENT

First and foremost, our team would like to extend its sincere gratitude and
admiration to Mr. Le Phuoc Luong. He was an ardent advocate and offered detailed
advice on the project's development and study direction, as well as advice on the right
method, content presentation, direction to take, and analysis of the research presented.
He made this decision using his very valued skills and research experience. This
allows us to learn and study in the best way possible.

The second thing our team would like to do is thank the Ton Duc Thang
University Department of Business Administration for providing us with the
opportunity and ideal conditions to research and assess the project. We greatly
appreciate it.
 LIST OF GROUP MEMBERS AND EVALUATION

Student
Student’s Full Name Mission Evaluation Signature
ID
Lữ Sơn Tùng 720K0633 100%
Văn Thị Thùy Trang 721K0394 100%
Trần Lê Thanh Tuệ 721K0456 100%
Nguyễn Trần Đông
720K0982 100%
Quân
Phan Ngọc Hải Triều 721K0258 100%
Dương Đức Thịnh 721K0428 100%
Bùi Hoàng Phúc 721K0383 100%
Nguyễn Đăng Quang 721K0453 100%
Nguyễn Đình Vũ 720K0648 100%
• Presentation
Phạm Tuyết Trân 721K0455 100%
• Report
 LIST OF TABLES, FIGURES, AND GRAPH
Table 2.1. Coding WBS ............................................................................................. 8
Table 2.2. Color coding for groups of task ............................................................. 9
Table 2.3. Gantt Chart .............................................................................................. 9
Table 2.4. Pert Diagram..........................................................................................10
Table 5.1. Activities' Direct Cost ...........................................................................16

Graph 5.2 .................................................................................................................15

Graph 5.1 .................................................................................................................15
Graph 5.4 .................................................................................................................15
Graph 5.3 .................................................................................................................15
 TABLE OF CONTENT

Chapter 1 INTRODUCTION ..................................................................................7

Chapter 2 GANTT CHART & PERT DIAGRAM .................................................8
Chapter 3 RATIONALE FOR REDUCING PROJECT DURATION .................11
Chapter 4 OPTIONS FOR ACCELERATING PROJECT COMPLETION ........13
4.1. Options when the resources are not constrained .........................................13
4.2. Options when resources are constrained .....................................................14
Chapter 5 CONSTRUCTING PROJECT COST–DURATION GRAPH .............15
Chapter 6 PRACTICAL CONSIDERATIONS ....................................................18
6.1. Using the Project Cost–Duration Graph ......................................................18
6.2. Crash Times .................................................................................................18
6.3. Linearity Assumption ..................................................................................18
6.4. Choice of Activities to Crash Revisited ......................................................19
6.5. Time Reduction Decisions and Sensitivity..................................................20
Chapter 7 WHAT IF COST, NOT TIME, IS THE ISSUE? .................................21
Chapter 8 CONCLUSION .....................................................................................23
REFERENCES ..........................................................................................................24
 Chapter 1 INTRODUCTION

Embarking on the captivating journey of the Inkwell: Stationery Project, our

narrative unfolds against the backdrop of a temporal odyssey spanning from July 1,
2023, to February 9, 2024. In the dynamic realm of project management, where the
delicate dance between time and budget takes center stage, the project's mission is
clear – to streamline the completion process without straining the financial seams.
Imagine this challenge as akin to solving an intricate puzzle, where success lies not
just in meeting deadlines but in orchestrating a swift delivery within the confines of
a meticulously outlined budget. Serving as our compass in this undertaking is the
project cost–duration graph, a powerful tool that guides project managers in
navigating the delicate equilibrium between temporal efficiency and fiscal prudence.
This graph is not just a static illustration; rather, it emerges as a dynamic roadmap
where decisions about time and budget allocations are calculated maneuvers rather
than arbitrary choices.

As Inkwell embarks on this expedition, we unravel the strategic utilization of

this tool, peeling back the layers to expose the art and science behind effective project
management. Every decision made becomes a crucial piece in the expansive puzzle
of successful project delivery, and our journey seeks to illuminate the intricate
interplay between time, budget, and project outcomes.
 Chapter 2 GANTT CHART & PERT DIAGRAM

Table 2.1. Coding WBS

No. Task Coding

1 Define target customers A

2 Define product portfolio B

3 Conduct market research C

4 Design product theme, features and layout D

5 Identify and select suppliers/vendors E

6 Negotiate prices F

7 Purchase raw materials and supplies G

8 Manufacture and process the products H

9 Inspect the product for quality I

10 Develop packaging and labeling design J

11 Implement the marketing campaigns K

12 Launch product L

13 Monitor and manage inventory M

14 Compare the actual performance with the planned one N

15 Prepare and present the final project O

 16 Close Project P

Table 2.2. Color coding for groups of tasks

Table 2.3. Gantt Chart

Table 2.4. Pert Diagram
 Chapter 3 RATIONALE FOR REDUCING PROJECT
DURATION

Time is an important factor in every project that determines the success of the
product. Time is money, there is a trade-off between time and money. Reducing the
time of jobs on the critical path will increase direct costs. Especially when time is a
priority with Inkwell.

There are some reasons why Inkwell needs to reduce time:

Time-to-market pressure is one of the reasons. Inkwell plans to launch products
for the Christmas and New Year holidays, so the manufacturing stage should be done
before the holiday starts. The selling stage will occur during the seasons. Inkwell
needs to ensure the products are ready to be sold due to the strong demand of
customers and sales potential can be fully exploited. When the market is increasingly
competitive like today, launching products at the right time is one of the great
advantages. Therefore, reducing the time to complete tasks will help Inkwell have
more competitive opportunities in the market.

Another reason to reduce project time is when unforeseen delays occur.

Inkwell's critical path includes theme design, importing goods from suppliers,
packaging and labeling for products, etc. These jobs may be delayed due to equipment
damage, or delays in material delivery from suppliers; The design stage has errors.
This hinders the progress of the entire project and cannot be completed on time.
Accelerating work to return to normal progress often requires shortening the time for
some remaining important activities. Project managers need to compare the costs of
accelerating the work and the consequences of finishing late.
 Overhead cost is the reason why Inkwell needs to shorten the project duration.
Overhead costs such as expenses and indirect costs have an impact on the overall
budget of the projects. The duration of the project may be affected by the demand to
balance the total cost and the potential of the project. The cost can exceed the project
budget if the duration is long. So, shortening the time of the project will limit the
overhead cost, manage the cost efficiently, and raise the profits.
 Chapter 4 OPTIONS FOR ACCELERATING PROJECT
COMPLETION

There are several options for the project manager to reduce the project duration
which are divided into two groups based on different situations and conditions that
the project is currently facing. First is Options when the Resources Are Not
Constrained and second is Options Resources Are Constrained.

4.1. Options when the resources are not constrained

Outsourcing project work can be used to reduce the duration. Inkwell can sign
subcontracts with the subcontractors. Inkwell can have a subcontract for the Package
and Labeling Products task. The subcontractors have superior technology, expertise,
and equipment that can accelerate the duration of the project. This task Inkwell needs
7 days to complete, however, the packaging factory can finish the task within 4 days.

The time of the project can be shortened if there is a core team for the project.
A core team helps assign roles and responsibilities to team members more clearly.
When everyone knows their duties and areas of expertise, work goes more smoothly
and the potential for confusion is reduced. Besides, a core team with specialized skills
appropriate to the project, tasks can be completed more efficiently. Each team
member can focus on their area of expertise, helping to solve problems and make
decisions faster. By giving specialists full-time assignments, Inkwell can avoid the
unintended consequences of multitasking, which includes having to balance the
demands of the project on time.

Scheduling overtime can optimize the duration of the project. Extend the hours
of work; allow the employee to extend the regular work hours. This helps the task be
completed quicker, and the duration of the whole project is shorter. Extend the
working hours to avoid potential delays and handle urgent situations that threaten the
process. Moreover, overtime leads to flexibility in human resources since it uses the
available resources rather than hiring more new employees, which is costly for
training. However, the project manager should be concerned about paying the double
salary and care about the health and mental health of the employee.

4.2. Options when resources are constrained

Fast-tracking can be used in cases where resources are constrained. Fast-
tracking allows jobs to be performed in parallel instead of sequentially. In traditional
project management, a phase's work must be completed before moving on to the next
phase. Performing tasks in parallel will help reduce project time. Besides, fast-
tracking helps identify and minimize risks early. By addressing potential issues in
parallel with ongoing activities, the project team can respond faster, reduce the
potential for delays, and keep the project on schedule. Inkwell can carry out the
Marketing and product distribution stages to sales channels in parallel.
Chapter 5 CONSTRUCTING PROJECT COST–DURATION
GRAPH

Graph 5.2 Graph 4.1

Graph 5.4 Graph 5.3

Table 5.1. Activities' Direct Cost

Activity Slope Maximum Direct cost

ID crash time
Normal Crash

Time Cost Time Cost

A 1 2 7 2 5 4

B 0.8 4 14 4 10 7

C 1.3 3 21 20 18 24

D 1 3 28 17 25 20

E 0.8 4 14 10 10 13

F 1 1 7 5 6 6

G 2.5 2 14 40 12 45

H 1.5 2 21 33 19 36

I 1 2 7 4 5 6

J 1 3 14 7 11 10

K 2.5 2 14 20 12 25

L 0.7 3 7 5 4 7

M 1 3 28 12 25 15

N 0.8 4 14 5 10 8
O 0.5 2 7 3 5 4

P 0.25 4 8 3 4 4

190
 Chapter 6 PRACTICAL CONSIDERATIONS

6.1. Using the Project Cost–Duration Graph

The creation of the Cost-duration graph keeps the importance of indirect costs
at the forefront of decision-making. When there is a great need for action, indirect
costs are usually overlooked in the field. Ultimately, this kind of graph can be applied
both before and during the project.

The most optimal option is to create the graph during the pre-project planning
phase without imposing a duration, as normal time has greater significance. Creating
the graph after the project has begun is least preferred due to some options not being
considered during the decision-making process. The formal process that is outlined
is not mandatory to follow. However, the formal procedure's underlying ideas and
principles are highly applicable in real-world situations and ought to be taken into
account when making any cost-duration trade-off decisions, regardless of the
approach taken.

6.2. Crash Times

Even for a project of a moderate size, gathering crash times can be challenging
as there are various ways to read and evaluate Crash Time. Certain estimators
experience extreme discomfort when providing crash times. In addition, the accuracy
of crash times and costs is often, at best, rough.

6.3. Linearity Assumption

The linear assumption makes reasonable, fast comparisons between activity
durations and expenses possible. The simple approach is adequate for most projects.
There are rare situations in which activities cannot be crashed by single-time units.
Instead, crashing is “all or nothing.” Activity A, for instance, will take 10 days (let's
say $1,000) or 7 days (let's say $1,500), but there are no options that will allow it to
take 8 or 9 days to finish.

6.4. Choice of Activities to Crash Revisited

The cost–time crashing method relies on choosing the cheapest method for
reducing the duration of the project. Cost is not the only factor that needs to be
evaluated. Inherent risks associated with disrupting specific activities can cause
certain activities to carry a higher crash risk than others. For instance, it might not be
a good idea to finish software design code faster if doing so raises the possibility that
mistakes will be discovered later. On the other hand, if there are fewer inherent risks
in a costlier activity, it might be prudent to crash it.

Second, the timing of activities needs to be considered. If there's a chance that

later activities will be delayed, it might be a good idea to crash an early activity and
eat up the extra time. The manager would then still have the choice to scuttle last-
minute plans in order to resume on time.

Third, excessive resource allocation happens frequently as a result of crashes.

It's possible that the resources needed to speed up a less expensive activity will
suddenly become scarce. Which activities are crashed may depend on resource
availability rather than cost.

Lastly, it is necessary to evaluate the effect that crashing would have on the
project team's motivation and morale. Fatigue and resentment may arise if a subgroup
is continuously signaled to accelerate progress by the least-cost method. On the other
hand, if overtime compensation is involved, some team members might feel left out
of this benefit. Tension within the project team as a whole may result from this
circumstance. Effective project managers predict how the project team as a whole
will react to crashing activities.

6.5. Time Reduction Decisions and Sensitivity

Managers are advised by the logic of the cost-time procedure to shorten the
project's duration in order to minimize the total cost.

The sensitivity of the project network determines how much the project time can be
shortened from the typical time to the optimal amount. If a network contains multiple
near-critical or critical paths, it is considered sensitive. Spending money to cut down
on essential tasks will reduce slack and/or increase the number of critical paths and
activities necessary to reach optimal time. Reducing slack in a project with multiple
near-critical paths raises the possibility of running behind schedule. If some near-
critical activities are postponed and turned into critical, the practical result might be
a higher overall project cost; the money spent reducing activities on the original
critical path would be wasted.

When the network is insensitive, there is a favorable scenario where moving

toward the optimal time can produce very significant savings. If there are no near-
critical paths and only one dominant critical path, the project network is considered
insensitive. In this circumstance, achieving optimum time will not create new or near-
critical activities. Insensitive networks hold the greatest potential for real, sometimes
large, savings in total project costs with a minimum risk of noncritical activities
becoming critical. Insensitive networks with high indirect costs can produce large
savings. Ultimately, deciding if and which activities to crash is a judgment call
requiring careful consideration of the options available, the costs and risks involved,
and the importance of meeting a deadline.
 Chapter 7 WHAT IF COST, NOT TIME, IS THE ISSUE?

Even if the cost is passed on to the customer, the overspending budget can result
in disgruntled clients and can harm new business prospects. Budgets can be increased
or decreased, and cost overruns must be covered by remaining activities when
emergency funds run out.

Cutting a project's duration short could mean using costlier tools and/or
supplies, hiring more staff, and paying more over time. On the other hand, sometimes
prolonging a project's duration can generate cost savings. This might make it possible
to use even less expensive equipment and materials, a smaller workforce, and less
skilled (highly paid) labor.

Following are a few of the more popular ways to reduce expenses:

• Reduce Project Scope:
Reducing the project's scope can save time, and delivering less than anticipated
can also result in significant cost savings. Starting with the work breakdown structure,
one can calculate the savings of a trimmed project scope. But since time is not the
problem, we don't have to concentrate on the important things.

• Outsourcing Project Activities or Even the Entire Project

When estimates go over budget, it makes sense to both reevaluate the project's
scope and look for less expensive ways to finish it. Outsourcing parts of the project
or even the entire undertaking would be more cost-effective than using internal
resources, exposing the work to outside price competition. Specialized subcontractors
frequently benefit from special offers, like bulk material discounts and equipment
that completes tasks more quickly and at a lower cost as well as less labor required
and overhead. Outsourcing, however, limits your control over the project and
necessitates the need for precisely defined deliverables.
 • Brainstorming Cost Savings Options
Members of the project team can provide practical suggestions for cutting
project costs in addition to being a wealth of ideas for speeding up project activities.
It's important for project managers to remember the importance of just asking if
there's a better, less expensive option.
 Chapter 8 CONCLUSION

In conclusion, the Inkwell: Stationery Project stands as an illustrative narrative

within the realm of project management, offering valuable insights into the intricacies
of reducing project duration. Navigating the delicate equilibrium between time and
budget, the project unfolds as a compelling case study. From the urgency imposed by
time-to-market pressures to the unforeseen hurdles that demand agile decision-
making, Inkwell's journey encapsulates the multifaceted challenges inherent in
project management. The strategic considerations, encompassing options such as
outsourcing, fast-tracking, and scheduling overtime, illuminate the nuanced
landscape of project acceleration. The construction and utilization of the project cost–
duration graph emerge as pivotal tools, providing a compass for decision-making,
particularly in the realm of indirect costs. As we delve into practical considerations,
crash times, and the intricacies of choosing activities to crash, the chapter underscores
the complexity of time reduction decisions. The summary encapsulates the essence
of cost-time trade-off decisions, emphasizing the pivotal role of project network
sensitivity. In the larger context, the chapter advocates for strategic forethought,
positing that upfront consideration and contingency planning mitigate challenges
during project execution. In the academic journey of project management, the
Inkwell: Stationery Project serves as a rich source of knowledge, weaving together
theoretical constructs with real-world dilemmas, offering a comprehensive
understanding of the symbiotic relationship between time and cost in the project
management landscape.
REFERENCES