Question 1: Advantager University

Advantager University is a top ranked university that has experienced huge and growing demand from potential students for several years. To cope with this increased demand, several managers have been hired by the university to facilitate expansion projects. The School of Accounting is just one of the successful schools at Advantager that urgently needs to expand. To better serve students and staff, the University administration has provided the School with a choice of several underutilised buildings on campus that would meet the School's expansion needs.

After several committee meetings, nine major expansion project activities have been identified, and the University has agreed to provide project managers to support these activities. People involved in the expansion were interviewed to gather information for the following table:

Table 1 : Activity Immediately Number of Activity Description Time Estimates (weeks) preceding Managers Optimistic Likely Pessimistic activities required* A - 4 Select building 1 2 3 B A 4 Interview stan applicants 4 6 8 C A 2 Develop remodelling plans 1 2 3 D B 2 Select staff applicants 2 4 6 E C 2 Finalise remodelling plans 1 2 3 F D, E 4 Remodel 4 6 8 G F 2 Install facilities 1 2 3 H F 2 New staff training 1 2 3 I G, H 2 Move in l 2 3 Table 2: Activity Normal time Normal cost Crash time Crash cost (weeks) 55 (weeks) $ A 2 100,000 2 - B 6 250,000 6 - C 2 50,000 1 58,000 D 4 200,000 3 400,000 E 2 80,000 1 90,000 P 6 350,000 5 580,000 G 2 800,000 1 900,000 H 2 350,000 1 400,000 I 2 200 000 l 220 000