Mr. Gungzhu, the manager of Gungdng Stadium has reached a decision after months investigating, to build up a first-class stadium. He planned to enter the

Mr. Guǎngzhōu, the manager of Guǎngdōng Stadium has reached a decision after months investigating, to build up a first-class stadium. He planned to enter the skybox business- providing luxury boxes with the best views of the event through glass panels and located at the lowest ring of seats, nearest to the playing court. Mr. Guǎngzhōu also included the expand of stadium capacity up to 21,000 seats with more rows of common seating, built-in dormitory rooms for players and a palatial office appropriate for coaches of the champion team. The requirement was to get the construction start immediately. Last year, Guǎngdōng Stadium signed a contract with Guǎngdōng University of Technology about holding their charity match, and the contract penalty of $10,000 per day for running late is nothing compared to the long-built brand name of Guǎngdōng Stadium if the upcoming game is delayed or cancelled. The estimation was that there will be 270 days until the upcoming game.

The process typically begins with a revision on tax and insurance structuring to prevent unwanted consequences during the construction (1). This is followed by two tasks: an installation of precast components that serve as the foundation for the new stadium (2); and a site excavation to create more stadium seats and skyboxes (3), silultaneously. After the laying of the stadium concrete foundation, work on the electrical installation of lights, interior wiring and lathes will take place (4). And then, the on-site quality inspection of this electrical construction is provided right after (5). When finishing the site excavation for expanding seats and skyboxes, they can start to construct on the “vertical circulation” scheme, which makes use of staircases, ramps, lifts, and escalators (6). The task that involves works on stadium plumbing pipe problems will takes place only when the electrical installation and the vertical circulation construction have both finished (7). After plumbing, they could remove the existing paint from the stadium bowl top and undersid and renew with the new design (8). After renewing the appearance, one specialized team will oversee an important part of residential structures of heating, ventilation, and air conditioning (HVAC) installation (9), while another design team working on carpet tiles that meet the function and sustainability goals (10) at the same time. When finishing carpeting tasks, another quality inspection team is sent to the carpeting site right after (11). The last step needs to be done before getting the construction done is some final detail works and cleanup activities, which is only started after the carpeting inspection and HVAC installation have been both completed (12).

The information below is provided for each task, in accordingly order: optimistic, most likely, pessimistic time estimates (days), days that can be saved using outsourced labor, and crash cost per day

(1): 20, 30, 40, 10, $1,400

(2): 20, 65, 80, 20, $500

(3): 50, 60, 100, 20, $4,000

(4): 30, 50, 100, 10, $1,850

(5): 25, 30, 35, 10, $9,500

(6): 1, 1, 1, 0, $0

(7): 25, 30, 35, 10, $1,900

(8): 10, 20, 30, 12, $2,000

(9): 20, 25, 60, 10, $2,000

(10): 8, 10, 12, 10, $6,000

(11): 1, 1, 1, 0, $0

(12): 20, 25, 60, 8, $2,500

1. Develop a network drawing for Guǎngdōng Stadium

2. Determine the critical path. How long is the project expected to take?

3. Mr. Mr. Guǎngzhōu discusses with the project team continuously about how the project is going on. He claims that if there are less than 75% sure about finishing this stadium in less than 270 days, he will outsource labor to speed up the project. What is their decision on project crashing? Describe the crashing project and the additional expense since the new target date is of 240 days.