Project Management (Network Exercises)

use computer packages designed for project management (i.e. MS Project, etc), programmes that would do all the thinking for you. However, you could use programmes such as Word, Excel,

Powerpoint, etc to draw the diagrams/charts. You can use both text and graphics to illustrate your answer.

Assignment Two: Network Exercises
Weighting: 30% of final grade
Word Count: Not applicable
Learning Outcome Being Assessed: 2

This assignment consists of 13 questions in three parts (A-C). Each part is worth equal marks. Please answer all questions.

PART A
Folegandros International is a small consultancy firm specialising in securing funds for organisations working in development projects. The firm is able to use standardised project formats for

each engagement. You have been assigned to this client as project manager partner and have compiled the network information and activity times for the latest client as shown below:

Activity    Description    Immediate predecessor
X    Lead time and preparation     –
A    Start proposal draft using template     X
B    Research client firm     A
C    Create ‘due diligence’ rough draft     A
D    Coordinate needs proposal with client     B, C
E    Conduct risk analysis     X
F    Implement risk analysis interventions     X
G    Estimate future demand and cash flows     X
H    Draft future plans for client company     G
K    Draft legal documents     H
L    Seek opinion on legal documents     H
M    Finalise legal documents     K, L
N    Integrate all drafts into first-draft proposal     G
P    Seek feedback on draft proposal and update     D, E
Q    Line up potential sources of capital     E
R    Evaluate options for capital and make decision     F
S    Audit report completion     M, N
T    Sign contracts and transfer funds     P, Q, R, S

Time in Workdays
Activity    Optimistic    Most likely    Pessimistic      BET
X    17    22    39
A    13    16    19
B    12    14    28
C    7    8    9
D    3    6    9
E    9    15    27
F    33    36    63
G    20    24    28
H    5    18    19
K    13    15    23
L    18    23    34
M    5    7    15
N    3    4    5
P    30    35    46
Q    6    10    26
R    5    8    11
S    12    15    24
T    4    8    12

1. Work out the Te (BET) for each activity.
2. Draw the network diagram using AOA format.
3. Calculate the forward pass, backward pass, and total slack (float). Illustrate these on the network diagram.
4. Determine the critical path and explain how you arrived at your answer.
5. What is the probability that the contract will be completed in less than 128 days?

PART B
Below are shown the activities for a project and how they are related.
Relationships: Activities C & D depend on A
Activities E, F, G depend on B
Activity H depends on F
Activity J depends on C
Activity K depends on D, E & H
Activity L depends on J
Activity M depends on G & K
Activity duration and resources
Activity    Duration (days)    Staffing
A    8    2
B    6    4
C    6    2
D    6    3
E    6    3
F    7    2
G    6    3
H    4    3
J    6    3
K    4    2
L    5    3
M    3    4

6. Using the information given above, draw the network (AOA or AON format).
7. Calculate the forward pass, backward pass, and total slack (float). Illustrate these on the network diagram.
8. Determine the critical path and explain how you arrived at your answer.
9. Construct a Gantt chart showing the activities and the staffing requirements.
10. Assume that 10 people have been assigned to the project and that all 10 can do the activities. Redesign the Gantt chart so that the staffing requirements do not exceed the resources

available. Explain what you have done and why.
PART C
Below are shown the activities for a project and how they are related.
Activities B, C and D depend on A.
Activity E depends on C
Activity F depends on D
Activity G depends on B, E and F.
11. Complete the table below.
12. If the indirect costs for each project duration are $450 (21 time units), $400 (20), $350 (19), $300 (18), $250 (17), and $200 (16), compute the total direct cost and the total project cost for each

project duration. Explain your answer using diagrams, tables, and/or text.
13. What duration represents the lowest total project cost? What is this cost?
Activity ID    Slope    Maximum Crash Time    Direct Costs
Normal    Crash
Time    Cost    Time    Cost
A    –    –    5    $90    4    $120
B    –    –    9    $100
5    $140
C    –    –    8    $80    7    $120
D    –    –    7    $60    6    $80
E    –    –    4    $70    2    $190
F    –    –    6    $50    4    $190
G    –    –    3    $200    2    $280

You should not use computer packages designed for project management (i.e. MS Project, etc), programmes that would do all the thinking for you. However, you could use programmes such as

Word, Excel, Powerpoint, etc to draw the diagrams/charts. You can use both text and graphics to illustrate your answer.