The Peabody Coal Corporation recently completed the final feasibility report for a new general ledger accounting system. It has hired a consulting firm to program and install the new system. The consulting firm is charging $350,000 for the remaining tasks to be performed. These tasks are to be performed over the next 10 months as detailed in the Gantt chart on the next page. The consulting firm is extremely concerned with the project staying on schedule because it is receiving a flat fee. The release of the final payment is contingent upon the system performing as stated in the contract and upon Peabody receiving appropriate documentation of the system.

Required:

a. Prepare a PERT diagram and indicate the critical path.

b. What happens to the time frame of the implementation of the project if the manufacturer is four weeks late shipping the hardware?

c. What happens if the data conversion does not go smoothly and takes an additional three weeks?

d. Who should conduct the post-implementation review? What activities should be conducted during this review? Do you think enough time has been allotted for this activity?