Question 2

Logistics Management System (LMS) Project SKV is a multinational company has planned to invest in a new project. This project is to develop an alternative online management system that supports the supply chain and logistics to function effectively. Due to the enormous growth in its operations, it can no longer rely on the manual processes. Therefore, the company has decided to mandate the implementation of a new supply-chain and logistics management system. Troy O'Connor has been assigned the responsibility owing to his past experience with similar type of projects. He is currently the department manager for engineering sub-division. He and his team have come up with the following list of activities and the three time estimates for each of the activities. He has to proceed to developing a project schedule to determine the cost-time-quality equilibrium. Listed below are the activities involved. Table 1 Draw the network diagram to determine the critical path, the expected duration of the project, project variance and standard deviation of the project. (Note: You need to compute the expected time, variance and standard deviation for all the activities in the project.) [3.5 marks] With these uncertainties on-hand, calculate the probability that the project can be completed in less than 47 weeks. Also, compute the project duration for which the team can be 90% confident to complete the project. [1.5 marks]