Tin$-$Can, Inc. Aircraft $($TCAI$)$R&D Project Management Problem

Your group is hired to help TCAI Project Manager to solve the following problem.

Using the activity time estimates and activity sequences provided in the information seen attached

in the second page to perform a detailed analysis and summary report to answer the following

questions. Please use the alphabetic letters A$,$B$,$C$,---,$P$,$to rename the activities $($listed as $1,2,$

$3,--16)$in your answers $($and report$).$

$($a$).$Draw the project network of the project $($you may use either an AON or AOA$).$

$($b$).$Prepare an Excel table showing the summary computations the expected values of all activity

times and related standard deviations.

$($c$).$Using the deadline of $52$weeks as the starting point for the backward pass, prepare and

provide an Excel table showing the summary computations ES$,$EF$,$LS and LF for all activities.

$($d$).$Provide an Excel template to determine the minimum expected completion time for this project.

$($Please show all work $($i$.$e$.,$ES$,$EF$,$LS and LF$,$slack times and show the critical activities $-$with a

Yes, No$).$

$($e$).$Now assume that the Project Manager informed you that he is able to re$-$allocate some

resources from Activity F $($complete fuselage$/$cockpit$)$to Activity J $($completion of engine

construction$).$If you can use the resources, this will increase the expected completion time on F

to $23\mathrm{.}5$weeks as well as lower the expected completion time on J to $11$weeks$.$ Assume that the

standard deviation on both F and J remains the same. What is the probability that the $52$weeks

deadline will be met?

TCAI Project Manager informed your group that he received information from the Procurement

Manager instructing that the contract includes several penalty clauses. The table below provides a

detail of the completion time and profit and loss estimates $($for the next two questions$).$

Project Completion

Time

$ Profit$(+)$or$

Loss$(-)$

$52$weeks or less $+400,000$

$52-56$weeks $+100,000$

$56-60$weeks $-100,000$

$60-64$weeks $-200,000$

$64$weeks or more $-400,000$

$($f$).$Using the initial project detailed information $($see below$),$prepare an Excel summary table

providing the probabilities for each of the completion time intervals shown in the table above.

$($g$).$Using the initial project detailed information $($see below$),$prepare an Excel summary table

providing the expected profit or loss which TCAI can expect on this contract.

TCAI Project Information Details are given below.

Tin$-$Can Airlines, Inc. $\{$TCAI$)$has just received a contract to develop a new aircraft designed for

energy efficient long$-$range hauling. The steps involved in the production of this new plane are

rather complex, but the manager has been able to identify the relevant activities as well as three

different time estimates $($all times in weeks$)$:

Activity and designator Opt.

Most

Likely Pess.

$1$: Develop all specifications $234$

$2$: Begin fuselage$/$cockpit construction $237$

$3$: Begin tail assembly construction $333$

$4$: Begin emrine construction $489$

$5$: Begin wing construction $288$

$6$: Complete fuselage$/$cockpit construction $182032$

$7$: Complete tail assembly construction $224$

$8$: Connect tail to fuselage$/$cockpit $111$

$9$: Construct enmne baflles on fuselage $8910$

$1$O: Complete enmne construction $101424$

$11$: Complete win construction $3410$

$12$: Connect engines to wings $579$

$13$: Test fuselage$/$cockpit$/$tail sub$-$assembly $4710$

$14$: Test engine$/$wing sub$-$assembly $678$

$15$: Connect engines$/$wings with fuselage I $23$

$16$: Test entire aircraft $2630$

The manager knows that the specifications must be developed before any construction can

begin. After the specifications are completed, construction can begin on the fuselage$/$cockpit$,$the

tail assembly, the engines and the wings.

After the fuselage$/$cockpit is started, it can be completed, as can the tail assembly after

its initial construction. However, the completed tail assembly can be connected to the fuselage

while the fuselage$/$cockpit construction is being completed. The testing of the combined

fuselage$/$cockpit$/$tail occurs only after the fuselage$/$cockpit are completed, the tail assembly is

fastened to the fuselage$/$cockpit and the engine baflles are constructed. The construction of the

engine baffles can be completed after the initial engine construction. Also, after the initial engine

construction, the engines can be completed. Similarly, the wings can be completed after their

initial construction. The engines can be connected to the wings only after the complete

construction of 'both components $($engines and wings$)$and after they are connected, the entire subassembly can be tested. The final testing of the entire aircraft takes place after the final

connection of the engines$/$wings with the fuselage. This connection is done after the testing of the

two sub$-$assemblies individually.