In: Operations Management
Problem 9-19 (Algorithmic)
The product development group at Landon Corporation has been working on a new computer software product that has the potential to capture a large market share. Through outside sources, Landon's management learned that a competitor is working to introduce a similar product. As a result, Landon's top management increased its pressure on the product development group. The group's leader turned to PERT/CPM as an aid to scheduling the activities remaining before the new product can be brought to the market. The project network is as follows:
The activity time estimates (in weeks) are as follows:
Activity | Optimistic | Most Probable | Pessimistic | |||||||
A | 2.0 | 4.0 | 6.0 | |||||||
B | 4.0 | 4.5 | 8.0 | |||||||
C | 3.0 | 5.0 | 7.0 | |||||||
D | 1.0 | 3.0 | 5.0 | |||||||
E | 6.0 | 11.0 | 16.0 | |||||||
F | 6.5 | 8.5 | 13.5 | |||||||
G | 3.5 | 6.0 | 8.5 | |||||||
H | 4.0 | 6.0 | 14.0 | |||||||
I | 1.0 | 2.5 | 7.0 | |||||||
J | 4.0 | 5.0 | 6.0 |
Activity | Expected Time | Variance | ||
A | ||||
B | ||||
C | ||||
D | ||||
E | ||||
F | ||||
G | ||||
H | ||||
I | ||||
J |
Earliest | Latest | Earliest | Latest | Critical | ||||||||
Activity | Start | Start | Finish | Finish | Slack | Activity | ||||||
A | No | |||||||||||
B | Yes | |||||||||||
C | No | |||||||||||
D | No | |||||||||||
E | Yes | |||||||||||
F | No | |||||||||||
G | No | |||||||||||
H | Yes | |||||||||||
I | No | |||||||||||
J | Yes |
It is given that the critical path is B-E-H-J
Following may be noted :
Expected duration of an activity = ( Most probable duration + 4 x Pessimistic duration + Pessimistic duration)/6
Variance of an activity = ( Pessimistic duration – Most probable duration)^2/36
Refer below table which highlights data about calculated expected duration and variance of activities on critical path.
Expected duration of critical path = Sum of expected durations of B,E,H,J = 28
Variance of critical path = Sum of variances of B,E,H,J = 6.11
Therefore, Standard deviation of critical path = Square root ( variance ) = Square root ( 6.11) = 2.47
Activity |
Optimistic |
Most probable |
Pessimistic |
Expected duration |
Variance |
B |
4 |
4.5 |
8 |
5 |
0.44 |
E |
6 |
11 |
16 |
11 |
2.78 |
H |
4 |
6 |
14 |
7 |
2.78 |
J |
4 |
5 |
6 |
5 |
0.11 |
Total: |
28 |
6.11 |
Let Z value of probability that project will be completed in 25 weeks = Z1
Therefore,
28 + 6.11.Z1 = 25
Or, 6.11.Z1 = - 3
Or, Z1 = - 3/6.11 = - 0.491
Corresponding probability for Z1 s derived from Z table = 0.3121
P( 25 weeks ) = 0.3121
Let Z value of probability that the project will be completed in 30 weeks = Z2
Therefore ,
28 + 6.11.Z2 = 30
Or, 6.11.Z2 = 2
Or, Z2 = 2/6.11 = 0.327 ( 0.33 rounded to 2 decimal places)
Corresponding probability for Z = 0.33 as derived from Z table is 0.6293
P( 30 weeks ) = 0.6293