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Examination Spring 12 Online 302 Almorqi

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This document contains 4 exam questions related to project management concepts: 1) Calculating labor and multifactor productivity for a tire manufacturing process and determining the percent change in MFP from an energy cost reduction. 2) Drawing an activity-on-node network for a described project. 3) Calculating completion time probabilities for a PERT project. 4) Determining the maximum time a project can be crashed and corresponding crash costs based on a project network and crash data table.

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Examination Spring 12 Online 302 Almorqi

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lola
20 views4 pages
This document contains 4 exam questions related to project management concepts: 1) Calculating labor and multifactor productivity for a tire manufacturing process and determining the percent change in MFP from an energy cost reduction. 2) Drawing an activity-on-node network for a described project. 3) Calculating completion time probabilities for a PERT project. 4) Determining the maximum time a project can be crashed and corresponding crash costs based on a project network and crash data table.

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86129105 Examination Spring 12 Online 302 Almorqi

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This document contains 4 exam questions related to project management concepts: 1) Calculating labor and multifactor productivity for a tire manufacturing process and determining the percent change in MFP from an energy cost reduction. 2) Drawing an activity-on-node network for a described project. 3) Calculating completion time probabilities for a PERT project. 4) Determining the maximum time a project can be crashed and corresponding crash costs based on a project network and crash data table.

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20 views4 pages

Examination Spring 12 Online 302 Almorqi

Uploaded by

lola
This document contains 4 exam questions related to project management concepts: 1) Calculating labor and multifactor productivity for a tire manufacturing process and determining the percent change in MFP from an energy cost reduction. 2) Drawing an activity-on-node network for a described project. 3) Calculating completion time probabilities for a PERT project. 4) Determining the maximum time a project can be crashed and corresponding crash costs based on a project network and crash data table.

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EXAMINATION I NAME: __________________________________________________________

1. David Upton is president of Upton Manufacturing, a producer of Go-Karts tires. Upton makes 2500 tires
per day with the following resources:

Labor: 50 hours per day @15.00 per hour


Raw Material: 20,000 lbs. per day at @ $3 per lb
Energy: $5,000 per day
Capital: $10,000 per day

a) What is the labor productivity for these tires?

Labor Productivity= 2500/50

LP = 50 tires per Labor hour

b) What is the multifactor productivity for these tires?

Multifactor Productivity= 2500/ 750+60,000+5000+10,000

MP = 2500/75750

MP = 0.0330

c) What is the percent change in the multifactor productivity if the energy bill can be reduced by $2000
without cutting production or changing any other inputs?
MP= 2500/(750+60,000+3000+10,000)
MP= 2500/ 73750
MP= 0.0339
Calculation = 0.0339 – 0.0330/ 0.0330 = 0.0273
Percent change is 2.73%
2. Draw an AON network for the project described below.

Activity Immediate Predecessor (s)

A -
B -
C A
D A
E B,C
F B,C
G D,E
H D,E
I H
J F,G
K G,I

A C

D G K

Start End

E H I J

B F
3. A PERT project has an ending completion time of 62 weeks with a variance of 16 weeks. Determine the
following probabilities:

Standard deviation is √16= 4

a) The project is completed in 68 weeks.

T≤68

68 – 62/4= 1.50

Value of Z for 1.50 is .4332

.5 + .4332 = .9332

We have a probability of 93.32%

b) The project takes longer than 70 weeks.

T>70

70 – 62/4= 2

Value of Z for 2 is .4772

.5 - .4772 = .0228

We have a probability of 2.28%

c) The project is completed between 60 and 68 weeks.

60<T<68

60-62/4= -0.5

Value of Z for .50 is .1915

.1915 + .4332 = .6247

We have a probability of 62.47%


4. The following table provides the information necessary to construct a project network and project
crash data:

    Activity Times(WKS) Activity ($)


Activity Predecessor Normal Crash Normal Crash
           
a - 16 8 2,000 4,400
b - 14 9 1,000 1,800
c a 8 6 500 700
d a 5 4 600 1,300
e b 4 2 1500 3,000
f b 6 4 800 1,600
g c 10 7 3,000 4,500
h d,e 15 10 5,000 8,000

Determine the maximum time that the project can be crashed and the corresponding crash costs.

Activity crash cost available

A 2400 8 Path list: A-C-G ; A-D-H ; B-E-H; B-F

B 800 5 Critical path: A-D-H

C 200 2

D 700 1

E 1500 2

F 800 2

G 1500 3

H 3000 5

Crash times Crash cost Maximum crash time: 16

A 8 19200 Corresponding crash costs: 35,300

C 2 400

D 1 700

H 5 15000

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