Project Management Analytics Exercise

This is an example of a construction project. The constructionfor a large corporate building must be started by February19^th and completed by the end of the year. The legalcontract for the project includes a penalty of $10,000 for everyweek of delay beyond December 31^st. This implies 315days or 45 weeks for the expected project duration assuming aseven-day work schedule and no holidays in between!

The details of the project activities are as follows –

The project begins with clearing the site, an activity thattakes eight weeks. Once the site is cleared, laying of thesubsurface drainage takes another eight weeks, followed by fillingof the earth which takes 14 weeks. Only after this activity iscompleted can installation of the artificial turf outside of thebuilding can start – the task then takes 12 weeks. Simultaneously,the work on the building can also start once the site iscleared.

The work on the building starts first by excavating and then bypouring of the concrete basement. Each of these activities takes 4weeks to complete. Next comes the construction of the walls (12weeks), followed by constructing the roof (13 weeks). The interiorsare then completed (5 weeks) followed by internal painting (4weeks). However, painting cannot be started until electrical workis completed (4 weeks). The electrical work cannot be started untilthe outside power lines are laid (8 weeks), which needs anadditional activity of getting the permits before it can bestarted. The permit takes 4 weeks. Assume that you would start onthe permits after the excavation activity for the buildingbegins.

Once the roof of the building is erected, work can startsimultaneously on the outside lighting (5 weeks), and on thesignage and other external landscaping (4 weeks). For simplicity,assume you start the project on February 19^th and youfollow a 7-day work schedule where each week of an activity’sduration takes 7 days.

Analyze the following questions based on the estimates of theabove activities -

3) You have a few proposals to expedite the completion of theproject. Analyze each proposal independently of the other proposalsand comment on which proposal (if any) would you adopt forexpediting the project?

a) Expedite the wall construction activity – this would cost$20000 and would reduce the activity by six weeks

b) The same as the above proposal but in addition, use a doubleshift on filling the earth. This would cost $10,000 and wouldreduce the filling activity by 5 weeks.

c) Construction of the roof is important. You could useadditional labor for $9000 and cut six weeks off the originalduration of the activity.