# Program Management Cases

1. Suppose the City has a redevelopment project which has 7 tasks:
• A goes from 1-2, takes 3-9 weeks (expect 6), and costs \$2000 (\$5000 crashed).
• B goes from 1-3, takes 8-15 weeks (expect 11) and costs \$8000 (\$15000 crashed)
• C goes from 2-4, takes 2-4 weeks (expect 3), and costs \$5000 (\$7000 crashed)
• D goes from 2-5, takes 3-10 weeks (expect 7) and costs \$3000 (\$9000 crashed)
• E goes from 3-5, takes 1-4 weeks (expect 3) and costs \$7000 (\$9000 crashed)
• F goes from 4-6, takes 4-8 weeks (expect 6) and costs \$2000 (\$4000 crashed)
• G goes from 5-6, takes 3-12 weeks (expect 9), and costs \$9000 (\$15000 crashed).

Sequence the events into a network, compute the "normal" times and the expected completion time, apply the Critical Path Method, and compute the standard deviation of the critical path. Interpret the results.

2. Compare the following two projects. How would a CPM analysis be useful to a project manager who is considering these two projects?

• Project A:
• A goes from 1-2, takes 3-8 weeks (expect 6), and costs \$2000 (\$4000 crashed)
• B goes from 2-3, takes 4-6 weeks (expect 5), and costs \$8000 (\$12000 crashed)
• C goes from 1-3, takes 5-15 weeks (expect 10), and costs \$15,000 (\$25,000 crashed)
• Project B:
• 1 goes from 1-2, takes 4-8 weeks (expect 5), and costs \$15,000 (\$25,000 crashed)
• 2 goes from 2-3, takes 4-8 weeks (expect 7), and costs \$7,000 (\$9,000 crashed)
• 3 goes from 1-3, takes 8-12 weeks (expect 10), and costs \$12,000 (\$15,000 crashed).

 PERT 604

© 1996 A.J.Filipovitch
Revised 4 October 96