PROJECT MANAGEMENT Case

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·         Each activity will represent a work package.

·         Resources will be considered in terms of teams-not individuals. There are seven teams available (initially): one team for documentation, assembly/test, and purchas­ing, plus two design teams and two development teams.

·         A 7-day workweek is used for the whole year; no holidays or vacation days taken.

·         An 8-hour workday, or 56-hour workweek, is used. Overtime is not allowed.

·         The project should start January 1 of the next year.

·         There are no overhead costs included in this project. Use only the costs of resources stated in costs per unit of usage time.

 

The purpose of this case is to have you apply project management principles and to understand linkages. Moving from this project application to real projects is primarily one of increasing detail. The simpli­fying assumptions are given below (make sure they are included in “default,” “prefer­ences,” and/or “options” sections of the software used):
 

 

PROJECT MANAGEMENT Case—Individual Assignment

 

 

TechNo Company’s Computer System Project- Part I:

 

 

The TechNo Company has decided to enter the market of computer system design. They believe that sales have suffered due to lack of a hardware and software system that will be  competitive in the marketplace.

 

Dr. Butch Simon has become the CEO of the company in the last year and wants to undertake some major changes. He has instituted a 7-day work week with 8- hour days required from each department.  No overtime is given for this project. Upon taking the leadership of the company, Dr. Simon assured the Board of Directors that he could bring a competitive computer system (High User Delta System, HUDS) to market within a year that will stop the company’s lagging sales in the global marketplace. Although not an expert himself in computer systems, he enlisted the assistance of Mark Guess to lead the project and to  explain to him and to the Board the basics of developing such a system.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After the Board presentation and approval of the project, Dr. Simon asked Butch for a         breakdown of the project, its resources, and the costs of the resources. Butch provided the tables given at the end of this section.

 

 

Questions

Does this information (WBS) allow you to define any milestones of the project?

Why and what are they? Or why not?

 

Remember: Save your file for future exercises!

Assignment –Part I

1.  Develop the WBS outline using the software available to you. Insert a Column titled WBS to show coding in your Gantt input view (see Appendix I for deliverables & sub-deliverables, tasks, etc.)

2.  Copy and paste into a .doc file your Input Gantt view.

3.  Copy & paste your complete Gantt chart showing the MSP lines and/or tasks as well.

TechNo Company’s Computer System Project – Part II:

Using your file from Part 1, add all the information to complete this exer­cise.

 

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Remember: Save your file for future exercises!
Part A:

1. Develop an AON project network for the project (see Appendix I). Copy and paste into the doc file. Include activity times on the node, and also revise the node information to include ES, LS, free slack, and duration.

 

2. Identify the critical path by activity names not codes or line numbers.

 

3. Provide ES, LS, EF, LF, and slack times in table form.

 

4. Define (sensible) milestones and give arguments for your choice.

 

5. How sensitive is this network?

 

6. What are the advantages of displaying the network versus a Gantt chart?

 

 

Part B:

 

Question: Dr. Simon has promised the Board  a one year deliverable of the project.   Is this possible?

 

 

 

 

 

 

TechNo Company’s Computer System Project Part III:

 

Part A

1. Using your files from Part 2, input resources and their costs if you have not already done so. Copy & paste your Gantt input view into your file.

 

2. Which if any of the resources are overallocated? Show your Resource Overallocations with a Resource Sheet view.

 

3. Try to resolve the over-allocation problems without extending the duration of the

project. (Hint: level within slack.) What happens?

 

Question: What is the impact of leveling within slack on the sensitivity of the network?

 

4. Assume you cannot add additional resources (resource constrained). How long will

the project take after resolving all overallocation problems?

Note: No splitting of activities is allowed. No partial allocation allowed, all at 100%

 

Questions:

How does this duration compare with the outcome of Part 2?

What are the managerial implications of the problems you observe?

What options would generally be available to the manager at this stage?

 

Include a Gantt input view, your chart and schedule table after leveling within slack. State your critical path and duration.

Include a Gantt input view, your chart and schedule table after leveling outside of slack. State your critical path and duration.

 

Part B

When you show the resource-constrained network  and the probability results from Part 2 to Dr. Simon, he is visi­bly shaken. After some explanation and negotiation the Board makes  the following compro­mise:

· The project must be completed no later than June 13, second year (530 days).

· You may assign two additional development teams.

· If this does not suffice, you may hire other development teams from the outside. Hire

as few external teams as possible because they cost $50 more per hour than your in­side development people.

 

Internal Development

1. Add as many development units (teams) as needed to stay within the 530 days. If you need more than the two units, examine all possibilities. Select the cheapest possibilities! Change as few activities as possible. It is recommended you keep work packages which require cooperation of several organizational units inside your company. You decide how best to do this.

Hint: Undo leveling prior to adding new resources.

 

2. Once you have obtained a schedule that meets the time and resource constraints:

a. Show your input Gantt view

b. Show your final project network.

c. Identify the critical path and the new finish time.

d. Report the rolled-up costs for the project by deliverable as well as by resource.

Explain the new output and the changes to your project owner in narrative form.

Question: How did these changes affect the sensitivity of the network? How confident

are you that you will complete the project on time? Explain.

Save your file and printouts-you will need them for the next exercise to develop a baseline!

 

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APPENDIX 5

 

TechNo Company’s Computer System Project Part VI

 

 

TechNo Company’s Computer System Project –

  Relationships & Durations

 

R&D (2 teams) R&D (2 teams)

R&D

R&D

$100 70 60 70

40

 

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Activity Description I Resource I Duration I Preceding
        (days) activity
           
1 Structural  decisions   Design 25    
2 Hardware R & D   Development, design 50   1
3 User Interface  specifications   Design 20   1
4 Utilities usages   Development, design 15   1
5 Hardware design   Design, development 70   2
6 Disk drivers   Assembly, development 100   3
7 Memory  management   Development 90   3
8 Operating system documentation   Development, documentation 25   3
9 Routine utilities   Development 60   4
10 Complex utilities   Development 80   4
11 Utilities documentation   Documentation, design 20   4
12 Hardware documentation   Documentation, design 30   5
13 Completion phase 1   Assembly, development 50   6,7,8,9,10,11,12
14 Prototypes   Assembly, development 80   13
15 Serial drivers   Development 130   13
16 System hard/software test   Assembly 25   14,15
17 Order circuit boards   Purchasing 5   16
18 Network interface   Development 90   16
19 Shell Developed   Development 60   16
20 Project documentation   Documentation, development 50   16
21 Assemble preproduction   Assembly, development 30   17FS, lag 50 days
22 Integrated testing   Assembly, development 60   18,19,20,21
…:
TechNo Company’s Computer System Project : Deliverables and Resources
Name
Group
Cost ($/hr)
Hardware
Hardware R & D

Hardware design

Hardware documentation

Prototypes

Order circuit boards

Assemble preproduction models

User Interface specifications

Drivers

Disk drivers

Serial drivers

Memory management

Operating system documentation Network interface

Utilities usages

Routine utilities

Complex utilities

Utilities documentation

Shell Developed

Operating system
Utilities
System integration
Structural  decisions

Completion Phase 1

System hard/software test

Project documentation

Integrated Testing

 

R&D

Design Development Documentation Assembly/test

Purchasing