Project Management

611

A P P E N D I X O N E

Solutions to Selected ExercisesChapter 22-2. Payback 5 Investment/Annual Savings Project Alpha: $150,000/$40,000 5 3.75 years Project Beta: $200,000/$50,000 5 4.0 yearsProject Alpha is the better payback.

2-5. The only project SIMSOX should consider is Voyagers. Each of the other two projects would not satisfy the high rate of return SIMSOX expects from its projects.

Project: Dust Devils

Year Inflows Outflows Net flow Discount Factor NPV

0 500,000 (500,000) 1.00 (500,000)1 50,000 50,000 0.81 40,5002 250,000 250,000 0.66 165,0003 350,000 350,000 0.54 189,000

Total: $(105,500)

If calculated in EXCEL: $(106,020)

Project: Ospry


0 250,000 (250,000) 1.00 (250,000)1 75,000 75,000 0.81 60,7502 75,000 75,000 0.66 49,5003 75,000 75,000 0.54 40,5004 50,000 50,000 0.44 22,000

Total: $(77,250)


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612 Appendix 1 Solutions to Selected Exercises

Project: Yoyagers


0 75,000 (75,000) 1.00 (75,000)1 15,000 15,000 0.81 12,1502 25,000 25,000 0.66 16,5003 50,000 50,000 0.54 27,0004 50,000 50,000 0.44 22,0005 150,000 150,000 0.36 54,000

Total: $(56,650)


Chapter 66-3. Activity C is a burst activity. Activity G is a merge activity.

AIdentify

topic

Group Term Paper

BResearch

topic

CDraftpaper

DEdit

paper

GFinaldraft

F

References

E Create

graphics


Appendix 1 Solutions to Selected Exercises 613

ID

Legend

DUR

ES

SL

LS

Description

EF

LF

30 10

5 35

15 25

115

120

125135

145140

130

130

C

30

5

0

5

Trafficdesign

35

35

F

15

115

15

130

Illumination

CP = A, C, E, G, J

130

145

G

30

115

0

115

Drainage

145

145

H

25

115

5

120

Landscape

140

145D

5

5

25

30

Lotlayout

10

35

J

10

145

0

145

Bid proposal

155

155

A

5

0

0

0

Survey

5

5

E

80

35

0

35

Approvedesign

115

115

B

20

5

10

15

Soilsreport

25

35

I

20

115

10

125

Signing

135

145PARK AND RIDEDESIGN

6-11.

A 1

1

0 B 61

D 119

0

2 119

5 61

0 0

0 1

Identifytopic

Researchtopic

C 96

3 96

0 Draftpaper

E 10

11

9

110

1 Creategraphics

G 12

12

11

111

0 Finaldraft

F 10

11

9

110

1 References

Editpaper

ID

Legend

DUR

ES

SL

LS

Description

EF

LF

Group Term Paper

0 1 2 3 4 5 6 7 8 9 10 11 12

Identify topic

Research topic

Draft paper

Edit paper

Create graphics

References

Final draft

6-13.

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6-20.

C 10

10

2

8

F 22

22

15

15

0 0

7

I

4

D 11

119

G

4

J

7

B 95

6

11 15

6

4

E

2

H

5

K

3

A 20

0 0 0 0

0 2 2 2

LAG 5

LAG 7

LAG 4

The only activities that have the start or finish on the critical path are E and K

LAG 10 LAG 8

LAG 8

LAG 5

LAG 109 27

27

0 0

32

32

6

15 17

0

17

2

2

0 0 0 0 0 0

11 25

25

32

3211

15

15

22

11

33 37

11

26 32

37 40

5 0

40

ID

Legend

DUR

ES

SL SL

LS

EF

LF



Chapter 88-4.

DUR ES

PLAN

RESOURCE SCHEDULELF SL 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15RES

4

5

4

5

3

2

ID

A

B

C

D

E

F

0

0

5

5

9

12

5

5

9

12

12

14

1 1 1 1 1

1 1 1 1 1

2 2 2 2 2

X 2

X X XX

X X

2 2 2

2 2

2 2 2

0

0

2

0

0

Resources scheduled

3Resources available 3 3 3 3 3 3 3 3 3 3 3 3 3

3 3 3 3 2 3 3 3 3 3 2 2 2 2

ID

DURLS

SL

LF

ES EF

Legend

SL

Resource

1

2

2

1

2

2

A

4

0 4

11

1 5

1

B

5

0 5

00

0 5

2

C

4

4 8

22

6 10

2

D

5

5 10

00

5 10

1

F

2

10 12

00

10 12

2

E

3

5 8

22

7 10

2

Use the following heuristics:Minimum slackSmallest durationLowest identification number



8-7. You should not spend time planning how you are going to spend your bonus. The schedule will take 16 days.

DUR ES LF SL 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18RES

2

1

3

1

2

3

2

2 2 2

0

5

2

6 2

7

9 1 1 1

12 2 2

14

2

6

5

7

9

12

14

16

0

0 2

0

0

0

0

0

0

ID

A

B

C

D

E

F

G

H

Resources scheduled

2Resources available 2 2 2 2 2 2 2 22 2 2 2 2 2 2

2 2 2 2 2 2 2 2 12 1 1 2 2 2 2

2

2

2

2

2

1

2

2

A

2

0 2

00

0 2

2

B

1

2 3

22

4 5

2

C

3

2 5

00

2 5

2

D

RESOURCE SCHEDULE

PLAN

1

5 6

00

5 6

2

E

2

6 8

00

6 8

2

F

3

6 9

11

7 10

1

Use the following heuristics:Minimum slackSmallest durationLowest identification number

G

2

8 10

00

8 10

2

H

2

10 12

00

10 12

2

ID

DURLS

SL

LF

ES EF

Legend

SL

Resource

2 2

2 2 2

2 2

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8-10.

0 1 2 3 4 5 6 7 8 9 10 11 12Budg

etID

A

B

C

D

E

F

Total

Cumulative

40 10 10 10 10

32 8 4 8 84

48 12 12 12 12

18 6 2 2 2 6

28 8 8 12

40

206 18 14 18 14 20 26 22 26 2 6 20 20

20 20

18 32 50 64 84 110 132 158 160 166 186 206

A

4

0 4

11

1 5

B

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0 5

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0 5

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4

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22

6 10

D

5

5 10

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5 10

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10 12

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10 12

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5 8

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7 10

Cost by Week

A

B

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D

E

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10

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8

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8

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ID

DURLS

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ES EF

Legend

SL



Chapter 99-2.

A1X

A1X

B D

B3

D2X

F

C3X

EC

E

3

3 3F

2X

3X

2X

2X

Total direct cost: 1,210

Activities changed:F90


Activities changed:D60

E 70

TIME: 9

TIME: 8

C

FA1X

A1X

A1X

B

DB

D

B3

D3

F

C3X

EC

E

4E4

4

33

3 3

3

F3

NormalTIME: 12

3X

3

3



Activities changed:C 50


Activities changed:E 70

TIME: 11

TIME: 10

Normal Normal Maximum CrashActivity Time Cost Crash Time Cost

A 1 100 0 0B 3 150 2 100C 4 200 1 50D 3 200 1 60E 4 200 2 70F 3 150 1 90



9-8.

Normal Normal Maximum CrashActivity Time Cost Crash Time Cost

A 3 150 0 0B 4 200 2 100C 3 250 1 60D 4 200 1 40E 2 250 0 0F 3 200 2 30G 2 250 1 20H 4 300 2 60I 2 200 1 200

D IA3X

A3X

C

GB

H

B4

D3X

F3

E2X

G2

I

C3

H

4

24F3

3E2X 4

2

4

2

Total direct cost: 2040CP=A+B+D+H+IActivities changed:

Normal time:

CP=A+B+D+H+I

17

Time:

D

16

Total direct cost: 2000



D IA3X

A3X

C

GB

H

B4

D3X

F3

E2X

G2

I

C3

H

3X

24F3

3E2X 3

2

2X

2

Total direct cost: 2160CP=A+B+D+H+I

Activities changed:

Time:

CP=A+B+D+H+I

15

Time:

H

14

Total direct cost: 2100

A+B+F+G+I

Activities changed:H

D I3X

A3X

C H

B3X

D3X

F3

E2X

G2

I

C3

H

3X

F3

3E2X 2X

2

2X

1X

Total direct costs: 2460CP=A+B+D+H+I

Activities changed:

Time:

CP=A+B+D+H+I A+B+F+G+I

13

Time:

I

12

Total direct costs: 2260

A+B+F+G+I

Activities changed:B

G2

A

B3X

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Chapter 1313-4.

Status Report: Ending Period 2 ($000)

Task % Complete EV AC PV CV SV

A 75% 30 25 20 5 10B 50% 16 12 12 4 4

Cumulative Totals 46 37 32 9 14



A 100% 40 35 40 5 0B 100% 32 24 24 8 8




A 100% 40 35 40 5 0B 100% 32 24 32 8 0C 75% 36 24 24 12 12D 0% 0 0 6 0 26E 50% 14 10 8 4 6




A 100% 40 35 40 5 0B 100% 32 24 32 8 0C 100% 48 32 48 16 0D 33% 6 20 10 214 24E 100% 28 20 28 8 0


Duration Direct Cost Indirect Cost Total Cost

17 2000 1500 350016 2040 1450 349015 2100 1400 350014 2160 1350 356013 2260 1300 366012 2460 1250 3860

The optimum time cost schedule would be 16 weeks at a cost of $3490.

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Performance Indixes Summary ($000)

Period EV AC PV SPI CPI PCIB

2 46 37 32 1.44 1.24 22%4 72 59 64 1.13 1.22 35%6 122 93 110 1.11 1.31 59%8 154 131 158 .97 1.18 75%

Forecast Costs at Completion

EACf 5

1BAC 2 EV2

1EV/AC21 AC

5

1206 2 1542

1154/13121 131

5 175

VACf 5 BAC 2 EACf VACf 5 206 2 175

VACf 5 31

At the end of the 8th period three-quarters of the project has been completed at a savings of $23,000. If the project continues to get $1.18 worth of work for each dollar spent the project will be $31,000 under budget at completion. The project appears to be slightly behind of schedule.

13-8. Part A



A 25% 25 50 50 225 225




A 50% 50 100 100 250 250




A 100% 100 200 100 2100 0B 0% 0 0 100 0 2100C 0% 0 0 150 0 2150


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A 100% 100 200 100 2100 0B 60% 150 100 150 50 0C 50% 225 200 300 25 275




A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0




A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 75% 150 100 100 50 50




A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 20% 60 100 0 40 60F 5% 15 50 0 235 15




A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 100% 300 350 200 250 100F 10% 30 100 100 270 270




Performance Indixes Summary ($000)

Period EV AC PV SPI CPI PCIB

1 25 50 50 .50 .50 2%2 50 100 100 .50 .50 3%3 100 200 350 .29 .50 5%4 475 500 550 .86 .95 24%5 800 800 800 1.00 1.00 40%6 950 900 900 1.06 1.06 48%7 1075 1100 1000 1.08 .98 54%8 1330 1400 1300 1.02 .95 67%

EACf 5

1BAC 2 EV2

1EV/AC21 AC

VACf 5 BAC 2 EACf

2105 5

12000 2 13302

11330/140021 1400

2105 5 2000 2 2105

With two-thirds of the project completed the forecast is that the project will be $105,000 over budget at completion.

13-8 Part B.

Revised Estimates: Ending Period 14


A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 100% 300 350 300 250 0F 100% 300 500 300 2200 0G 100% 200 150 200 50 0H 100% 200 200 200 0 0


EACre 5 AC 1 ETCre 2150 5 1400 1 750

VACre 5 BAC 2 EACre 2150 5 2000 2 2150

Revised Estimates indicate that the project will be one period behind schedule and $150,000 over budget.


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