To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Chapter 4.

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To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Chapter 4 - Managing Project Processes

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship AOAAON Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship S precedes T, which precedes U. AOAAON 12 S 3 T 4 U STU Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship S and T must be completed before U can be started. AOAAON S T U T S 4 U Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship T and U cannot begin until S has been completed. AOAAON T U S T U 2 S Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship U and V cannot begin until both S and T have been completed. AOAAON U V S T 3 S T U V Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship U cannot begin until both S and T have been completed; V cannot begin until T has been completed. AOAAON S T U V 13 Dummy SU TV Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship T and U cannot begin until S has been completed; V cannot begin until both T and U have been completed. AOAAON ST 5 V U Dummy STV U Figure 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff. BSelect site and do site survey. CSelect equipment. DPrepare final construction plans and layout. EBring utilities to the site. FInterview applicants and fill positions in nursing, support staff, maintenance, and security. GPurchase and take delivery of equipment. HConstruct the hospital. IDevelop an information system. JInstall the equipment. KTrain nurses and support staff. Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop an information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J AON Network Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F G Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F G H Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F G H I Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F G H I J Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network Start A B C D E F G H I J K Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AON Network FinishStart A B C D E F G H I J K Figure 4.2 Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J AOA Network Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network A Start 1 2 Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network A B Start Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network A B C D Start Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network F A B C D H E G I Start Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network F A B C D H E G J I Start Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J AOA Network F A B C D H E G J I Dummy Start Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital AOA Network F A B C D H E G K J I Finish 9 Dummy Start Figure 4.3 Example 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J Completion Time

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Figure 4.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Figure 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 I 15 F 10 Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 I 15 F 10 Earliest start time Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F 10 Earliest Start and Earliest Finish Times Earliest start time Earliest finish time Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Earliest Start and Earliest Finish Times Example 4.2 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest Start and Latest Finish Times Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest finish time Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest start time Latest finish time Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest Start and Latest Finish Times Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest Start and Latest Finish Times Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Latest Start and Latest Finish Times Example 4.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Latest Start and Latest Finish Times

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Gantt charts

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Figure 4.8 Gantt Charts

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Activity Slack Analysis Example 4.4 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Activity Slack Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Activity Slack Slack = LS – ES or Slack = LF – EF Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Activity Slack Slack K = 63 – 63 or Slack K = 69 – 69 Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Activity Slack Slack K = 0 or Slack K = 0 Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Node DurationESLS Slack Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E I 15 F Node DurationESLS Slack A12022 B9000 C D10990 E F G H I J K Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital C 10 G 35 E 24 I 15 F B9B9 0 9 D H J4J K6K Critical Path Node DurationESLS Slack A12022 B9000 C D10990 E F G H I J K Example 4.4 Finish

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital C 10 G 35 E 24 I 15 F B9B9 0 9 D H J4J K6K Critical Path A Example 4.4 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Figure 4.9 Activity Slack

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital 8000 — 7000 — 6000 — 5000 — 4000 — 3000 — 0 — Direct cost (dollars) |||||| Time (weeks) Figure 4.10 Cost-Time Relationships in Cost Analysis

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital 8000 — 7000 — 6000 — 5000 — 4000 — 3000 — 0 — Direct cost (dollars) Crash cost (CC) Normal cost (NC) |||||| Time (weeks) (Crash time)(Normal time) Figure 4.10 Cost-Time Relationships in Cost Analysis

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital 8000 — 7000 — 6000 — 5000 — 4000 — 3000 — 0 — Direct cost (dollars) Crash cost (CC) Linear cost assumption Normal cost (NC) |||||| Time (weeks) (Crash time)(Normal time) Figure 4.10 Cost-Time Relationships in Cost Analysis

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital 8000 — 7000 — 6000 — 5000 — 4000 — 3000 — 0 — Direct cost (dollars) 5200 Crash cost (CC) Linear cost assumption Normal cost (NC) Estimated costs for a 2-week reduction, from 10 weeks to 8 weeks |||||| Time (weeks) (Crash time)(Normal time) Figure 4.10 Cost-Time Relationships in Cost Analysis

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Maximum NormalNormalCrashCrashTimeCost of TimeCostTimeCostReductionCrashing per Activity(NT)(NC)(CT)(CC)(wk)Week A12$ 12,00011$ 13,0001$ 1,000 B950,000764,00027,000 C104,00057, D1016,000820,00022,000 E24120, ,000108,000 F1010,000616,00041,500 G35500, ,000103,000 H401,200,000351,260,000512,000 I1540, ,50052,500 J410,000113,00021,000 K630,000534,00014,000 Totals$1,992,000$2,209,000 Table 4.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum-Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 $1,000/week Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 $1,000/week 3($28,000) – 3($1,000) = $81,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity J by 3 $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity J by 3 $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J1J1 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity D by 2 $2,000/week Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 64 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeks Crash Activity K by 1 $4,000/week Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeks Crash Activity K by 1 $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activity K by 1 $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activities B and C by 2 $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activities B and C by 2 $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 61 weeks Crash Activities B and C by 2 $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,506,200 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule Example 4.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity D by 2 $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 FinishStart A 12 B77B777 C88C888 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Coors Field

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates Time Probability Figure 4.11

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates Figure 4.11 (a) Mean mab Time Probability

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates Figure 4.11 (b) Mean abm 33 33 Area under curve between a and b is 99.74% Time Probability

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital AF I CG Finish D E HBJ K Start Probabilistic Time Estimates Example 4.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity B Most OptimisticLikelyPessimistic (a)(m)(b) 7815 Probabilistic Time Estimates AF I CG Finish D E HBJ K Start Example 4.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity B Most OptimisticLikelyPessimistic (a)(m)(b) 7815 Probabilistic Time Estimates t e = = 9 weeks 7 + 4(8) AF I CG Finish D E HBJ K Start Example 4.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity B Most OptimisticLikelyPessimistic (a)(m)(b) 7815 Probabilistic Time Estimates t e = = 9 weeks 7 + 4(8)  2 = = 1.78 ( ) AF I CG Finish D E HBJ K Start Example 4.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Example 4.6 St. Adolf’s Hospital OptimisticLikelyPessimisticExpectedVariance Activity(a)(m)(b)Time (t e )(  2 ) Time Estimates (wk)Activity Statistics

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Example 4.6 St. Adolf’s Hospital OptimisticLikelyPessimisticExpectedVariance Activity(a)(m)(b)Time (t e )(  2 ) Time Estimates (wk)Activity Statistics A B C D E F G H I J K

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T –T E  2 Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = = Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = = z = 72 – Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = = z = = – Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = = z = = – Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days From Appendix 2 P z =.8078 .81 Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T - T E  2  2 = = z = = Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Project duration (weeks) 6972 Probability of meeting the schedule is Length of critical path Normal distribution: Mean = 69 weeks;  = 3.45 weeks Probability of exceeding 72 weeks is Figure 4.12 Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = = z = = – Probabilities Path = A - C - G - J - K T = 72 days T E = 67 days From Appendix 2 P z =.8980 .90 Example 4.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital AF I CG Finish D E HBJ K Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital ActivityDurationEarliest StartLatest StartSlack C101614–2 G352624–2 J46159–2 K66563–2 D10109–1 H402019–1 E I F Table 4.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Project Life Cycle

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Project Life Cycle StartFinish Resource requirements Time

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Project Life Cycle Definition and organization PlanningExecutionClose out StartFinish Resource requirements Time Figure 4.13

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Solved Problem 1 Finish Start A4A4 B7B7 C5C5 D6D6 E3E3 F 11 G4G4 H3H3 Figure 4.14

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start A B C D E F G Figure 4.15(a)

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Figure 4.15(b) Finish Start F A B C D E F G Dummy

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start Figure 4.16 A D E G C F B

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Sixth Edition © 2002 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start Figure 4.16 A D E G C F B Start 1 ESEF LSLF A