Project management (20 marks)

Nellie is looking to upgrade and expand the research and testing area. The following information has been gathered and provided to Nellie.

Activity	Immediate predecessors	Optimistic time (weeks)	Most likely time (weeks)	Pessimistic time(weeks)	Normal Cost ($)	Crash cost ($)
A		4	6	8	13,500	31,200
B		8	12	16	27,000	62,400
C		4	10	16	27,000	62,400
D	A	6	8	10	27,000	46,800
E	B	12	14	16	27,000	46,800
F	C	8	14	20	27,000	78,000
G	A	2	10	18	54,000	124,800
H	B	4	10	16	27,000	78,000
I	C	6	10	14	40,500	62,400
J	D, G	4	4	4	6,750	7,800
K	E, H	8	8	8	6,750	7,800
L	F	6	6	6	6,750	7,800

Required:

1. Using an appropriate computer drawing program, draw the PERT network diagram for the project showing the task letters on the activity paths. (3 marks)
2. Identify all the possible pathways and determine the critical path.(2 marks)
3. Determine the probability that the expansion will be completed in 30 weeks (6 marks)
4. Nellie is prepared to pay an additional bonus of $15,000 per day if the project is completed in 28 days. Taking into consideration the costs involved in crashing the project, should the project be reduced to 28 days to receive the bonus (show workings) (4 marks)
5. Using current literature (newspaper articles, academic journals etc), discuss some of the resource constraints that would make this upgrade and expansion challenging. Present these findings in a one-page cover letter addressed to Nellie. (5 marks)