Reynolds Construction

Company
Submitted to: Submitted by:
Dr Indu Uprety Parth Saxena (17/IFT/010)
Vanshika Srivastava (17/IFT/017)
Vaishali Mavi (20/PMB/
 SWOT ANALYSIS
STRENGTHS: WEAKNESSES:
In the strengths, management should
identify the following points exists in the
• Improvement that could be done.
organization: • Activities that can be avoided for
• Advantages of the organization Reynolds Construction Case Study.
• Activities of the company better than • Activities that can be determined
competitors.
as your weakness in the market.
• Unique resources and low cost resources
company have. • Factors that can reduce the sales.
• Activities and resources market sees as the • Competitor’s activities that can be
company’s strength.
seen as your weakness.
• Unique selling proposition of the company.
 SWOT ANALYSIS
OPPORTUNITIES:
• Good opportunities that can be spotted.
• Interesting trends of industry.
• Opportunities for Reynolds
Construction Case Study can be
obtained from things such as:
Change in technology and market
strategies.
Government policy changes that is related
to the company’s field.
Changes in social patterns and lifestyles.
Local events.
THREATS:
• Following points can be identified as
a threat to company:
• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality
standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.
 Question 1
Reduce total project duration as much as possible without unnecessary additional costs.
Indicate the new critical path or paths. Show how much slack time remains in the noncritical
paths.
Solution: This is the original network diagram of the project
F
(7)
A
(3)
D End
(5)

B G
Start
(6) (4)

Critical Path – A-D-G

C E Planned Cost = $61,000
(2) (2)
 F
Crashing Activity D, we get (5x)
$61000 + $4000 = $65000 A
Crashing Activity A, we get (2x)
D End
$65000 + $5000 = $70000 (3x)
Crashing Activity G, we get
B G
$70000 + $7000 = $77000 Start
(2x)
(5)
Crashing B, we get
$77000 + $6000 = $83000
Crashing D, we get C E
$83000 + $4000 = $87000 (2) (2)
Crashing F, we get
$87000 + $3000 = $90000 • The minimum project duration can be reduced to 7 weeks.
Crashing G, we get • There are 3 critical paths:
$90000 + $7000 = $97000 • A-D-G
Crashing F, we get • A-F
$97000 + $3000 = $100000 • B-G
 Question 2
Assume that the situation proves to be less urgent than it seems to Messrs. Alison and
Phillips. Revise the schedule in order to complete the job within ten (10) weeks. Indicate
the new cost and critical path or paths.
Solution: This is the original network diagram of the project
F
(7)
A
(3)
D End
(5)

B G
Start
(6) (4)

Critical Path – A-D-G

C E Planned Cost = $61,000
(2) (2)
 Crashing Activity D twice, we get
Total Cost = Planned Cost + Crash Cost
= $61,000 + $4,000 + $4,000
= $69,000
• Now that the project is
F
(7) being completed in 10
A weeks, the cost of the
(3)
D
End
project has become
(3x)
$69,000.
B G • We also have 3 critical
Start
(6) (4) paths:
• A-D-G
C E • A-F
(2) (2) • B-G
QUESTION-3
3. F
7
A

Sta En
6 3
rt G d

C 2 E

5
 Using the critical path diagram for remote building project from exhibit 2, the steps to
keep the project on track are:
Increase activity C to 5 weeks, we have to reduce activity G by one week to bring the path
CEG to 10 weeks as required and reduce D by one week. Hence
 

Activity New weeks for each Cost

activity
A 3 5,000
B 6 14,000
C 5 7,000
D 4 14,000
E 2 8,000
F 7 11,500
G 3 17,000
Total   76,500

a. Total cost for the project is now $76,500

 
b. The new critical paths are AF; ADG and CEG.
 Question 4
Option A
Given the scenario from question one, it is obvious that the project could not be reduced
more than 7weeks owing to the fact that the critical path has minimum possible time it
could be reduced.

. F
5
A

Sta En
5 2
rt G d

C 2 E

2
 Activity Original no. of No of weeks to New weeks for Additional Cost
weeks crash by each activity

A 3 1 2 5,000
D 5 2 3 8,000
G 4 2 2 14,000
F 7 2 5 6,000
B 6 1 5 6,000
   
Total 8 39,000

a. Total cost for the project is now $(61,000 + 39,000) =

$100,000 Using total project duration of 7 weeks
The total cost = 100,000

Penalty for delay = 1 week X 10,000

Total cost = 100,000 + 10,000 = 110,000
 Option-B
Following the revised – program schedule for remote control building project from Exhibit 4.

. F
7
A

Sta En
6 3
rt G d

C 2 E

2
 • Planned cost + additional cost = $61,000 + 16,000 =$77,000 Using the total number
of weeks of 9 weeks for the project, Total cost at 9 weeks = $77,000

• Penalty per week = $10,000 

• Extra week to suffer penalty = 9 – 6 = 3week Total penalty = 3 X 10,000 =

30,000

• Total penalty = 3 X 10,000 = 30,000

• Total cost = 77,000 + 30,000 = 107,000

Hence, we (after reading this case and problems given in the case) reach to
the conclusion that Option B should be considered as the solution because
it has the cheapest cost ($107,000) for executing the project.