Question 3 (Note: you may use more pages to this answer this question (19 marks] Under the ZY company's current warehouse operation, warehouse clerk dispatch order-picking personnel to fill each order and have the goods moved to the warehouse shipping area. Because of the high labour costs and relatively low productivity of hand order-picking, management has decided to automate the warehouse operation by installing a computer-controlled order system, along with a conveyor system for moving goods from storage to the warehouse shipping area. ZY's director of material management has been named the project manager in charge of automated warehouse system. After consulting with members of the engineering staff and warehouse management personnel, the director compiled a list of activities associated with the project. The optimistic, most likely, and pessimistic times (in weeks) have also been provided for each activity, as shown below. Activity Description Immediate Predecessor A Determine equipment needs Obtained Vendor proposals Select Vendor A.B Order system E Design new warehouse layout F Design Warehouse E G Design computer interface H Interface computer D.F.G Install system DF J Train System Operators Test System 1 Activity Optimistic Time Most Likely Pessimistic L-IOMO > 6 2 8 7 4 4 4 6 8 4 10 10 6 6 8 16 6 24 13 8 20 8 14 5 6 4 0 Develop and present the activity schedule (earliest start, earliest finish. latest start, and latest finish times), critical path and expected project completion time for the warehouse expansion project. [8] Note: you may develop project diagram on your papers but here you are only required to present activity schedule table as shown on slide 16 of lecture power point file.] Answer: (ii) ZY's top management established a required 40-week completion time for the project. Can this completion be achieved? Include probability information in your answer. What recommendation do you have if the 40- week completion time is required? Answer: [3] (iii) Suppose that management requests that activity times be shortened to provide a 73 percent chance of meeting the 40-week completion time. If the variance in the project completion time is the same as you found in part (i), how much should the expected project completion time be shortened to achieve the goal of a 73 percent chance of completion within 40-weeks? [4] Answer: 7 (iv) Write a short managerial report by taking into consideration the above issues in the models you developed in parts (i), (ii) and (iii). 141 Question 3 (Note: you may use more pages to this answer this question (19 marks] Under the ZY company's current warehouse operation, warehouse clerk dispatch order-picking personnel to fill each order and have the goods moved to the warehouse shipping area. Because of the high labour costs and relatively low productivity of hand order-picking, management has decided to automate the warehouse operation by installing a computer-controlled order system, along with a conveyor system for moving goods from storage to the warehouse shipping area. ZY's director of material management has been named the project manager in charge of automated warehouse system. After consulting with members of the engineering staff and warehouse management personnel, the director compiled a list of activities associated with the project. The optimistic, most likely, and pessimistic times (in weeks) have also been provided for each activity, as shown below. Activity Description Immediate Predecessor A Determine equipment needs Obtained Vendor proposals Select Vendor A.B Order system E Design new warehouse layout F Design Warehouse E G Design computer interface H Interface computer D.F.G Install system DF J Train System Operators Test System 1 Activity Optimistic Time Most Likely Pessimistic L-IOMO > 6 2 8 7 4 4 4 6 8 4 10 10 6 6 8 16 6 24 13 8 20 8 14 5 6 4 0 Develop and present the activity schedule (earliest start, earliest finish. latest start, and latest finish times), critical path and expected project completion time for the warehouse expansion project. [8] Note: you may develop project diagram on your papers but here you are only required to present activity schedule table as shown on slide 16 of lecture power point file.] Answer: (ii) ZY's top management established a required 40-week completion time for the project. Can this completion be achieved? Include probability information in your answer. What recommendation do you have if the 40- week completion time is required? Answer: [3] (iii) Suppose that management requests that activity times be shortened to provide a 73 percent chance of meeting the 40-week completion time. If the variance in the project completion time is the same as you found in part (i), how much should the expected project completion time be shortened to achieve the goal of a 73 percent chance of completion within 40-weeks? [4] Answer: 7 (iv) Write a short managerial report by taking into consideration the above issues in the models you developed in parts (i), (ii) and (iii). 141
