Question
The transmission and distribution division (T&D) of an electric utility has won a bid from ABC Company to build a substation to support Flag question
The transmission and distribution division (T&D) of an electric utility has won a bid from ABC Company to build a substation to support Flag question their new injection molding plant
Background: T&D must build a small substation with equipment and materials such as transformers, breakers, and cables coming from four different suppliers. T&D will build the substation in 2 phases. Each phase requires a distinct set of materials and a distinct skill set of the installers plus an inspection. The installation project manager has been directed to plan the skilled labor as a separate task in each phase.
The sales team provided some high-level estimates of tasks and timing. During the contract negotiation and close of sale, the installation project management team got preliminary "firm estimates" for each of the tasks and precedence relationships (See Table 1 for details)
The team also got material lead time estimates from the four suppliers. (See Table 2 for details)
The project budget is very tight and there is pressure to deliver with time to spare. The sales team also agreed to a $2500/week penalty if the project is not completed on time; unfortunately, T&D was not able to pass the same penalty through to their supplier contracts.
Follow the steps below and answer any questions posed.
1. Construct a network diagram based on the information provided below. Use the information to compute the expected time. Given the
"firm" time estimates in Table 1, can you meet the project deadline of 13 weeks?
2. If your expected project time is above 13 weeks, what is the best way to crash the project schedule to meet the timeline at the
lowest cost? Explain your solution including the new schedule and any additional costs.
3. Referring to your calculated network times:
o will any of the material lead times cause further delays? Hint: Look at the network diagram developed in question #1 and
determine if the material will arrive in time to be installed. Material lead times begin at time =0.
o Will you need to expedite the material? If so, which material at what cost?
o Explain how you might have included ordering lead times in the Network diagram
4. Be sure to summarize the original schedule, all the changes you made that are required (if any) to meet the
deadline, including the new estimated time to completion and any additional costs incurred.
Table 1: Activity Timing, Precedence Relationships, and Crash Costs Duration Activity Description (Weeks) Predecessors Crash Cost A Obtain Permits, Survey Land None N/A B Pour Concrete A $1,000 Install Overhead Cable A $100 General Labor - 10 people A $1,000 E Inspect Infrastructure - 1 inspector - UI WOT - WNWA B,C.D N/A Install Transformers E $500 Install Breakers $1,000 H Electrical Labor - 6 people $1,000 - Final Inspection - 2 inspectors F.G,H N/A NOTE: INTABLE 1 ABOVE ALL CRASH COSTS ARE PER WEEK. INTABLE 2 BELOW, EXPEDITE COSTS ARE PER WEEK. Table 2: Material Lead Time Information Lead Time Expedite Cost Type of Material (Weeks) (per eek) Mixed Concrete (cannot be held in inventory) Co $100 Cable 3 $100 Transformers 10 $200 Breakers 7 $200 NOTE: LEAD TIME BEGINS ATTIME = 0Step by Step Solution
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