Question 3
- The Consolidated Bank of Ghana (CBG) is planning to install anew computerized accounts system. Bank management has determinedthe activities required to complete the project, the precedencerelationships of the activities, and activity time estimates asfollows:
| | | Time | Estimates | (weeks) |
Activity | Description | Predecessor | a | m | b |
A | Position Recruiting | - | 5 | 8 | 17 |
B | System Development | - | 3 | 12 | 15 |
C | System Training | A | 4 | 7 | 10 |
D | Equipment training | A | 5 | 8 | 23 |
E | Manual System Test | B, C | 1 | 1 | 1 |
F | Preliminary System Changeover | B, C | 1 | 4 | 13 |
G | Computer-Personnel Interface | D, E | 3 | 6 | 9 |
H | Equipment Modification | D, E | 1 | 2.5 | 7 |
I | Equipment testing | H | 1 | 1 | 1 |
J | System Debugging and Installation | F, G | 2 | 2 | 2 |
K | Equipment Changeover | G, I | 5 | 8 | 11 |
Use the information in the table to answer the followingquestions
- Compute the expected activity completion time for eachactivity. (3 marks)
- Draw the project network diagram together with the activityschedule. (5 marks)
- When will the computerized accounting system be ready for use?(1 mark)
What is the critical path (the critical activities)? (2marks
b.Management of CBG is not happy with the completion time inQuestion 2(iii) and wants the project completed earlier than that.You are given the following additional activity information.
Activity | Crash Time (weeks) | Activity Cost (GH¢) |
| Normal | Crash |
A | 7 | 4,800 | 6,300 |
B | 9 | 9,100 | 15,500 |
C | 5 | 3,000 | 4,000 |
D | 8 | 3,600 | 5,000 |
E | 1 | 0 | 0 |
F | 3 | 1,500 | 2,000 |
G | 5 | 1,800 | 2,000 |
H | 3 | 0 | 0 |
I | 1 | 0 | 0 |
J | 2 | 0 | 0 |
K | 6 | 5,000 | 7,000 |
| | | | | | |
i. Prepare a table of Allowable Crash Time and Crash Cost perWeek for each activity. (5 marks)
Management of CBG can offer a maximum of GH¢800 per week toenable the project manager reduce the project completion time:
ii. prepare a table for the crashing procedure. (5.5marks)
iii. when will the project now be completed? (0.5mark)
iv. what is the total extra cost to management of CBG?(1 mark)
v. If management of CBG wishes the computerized accountingsystem to be ready at week 30, what will be the total extra cost toCBG? (2 marks
