To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Planning.

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Implement changes 6 Redesign process 5 Implementing Changes Document process 3 Define scope 2 Evaluate performance 4 Figure 8.1 Identify opportunity 1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Develop Marketing Plan Install Operating Control Base Select BankSelect NameFind Location Provide Staffing Provide Physical Facilities Establish Business Structure Work Breakdown Structure Figure 8.2 Strategic Plan Define Business Opportunity Plan for Action Proceed With Startup Plan Start a New Business

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship AOAAON Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship S precedes T, which precedes U. AOAAON 12 S 3 T 4 U STU Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship S and T must be completed before U can be started. AOAAON S T U 1 2 3 T S 4 U Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship T and U cannot begin until S has been completed. AOAAON T U S 3 4 1 T U 2 S Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship U and V cannot begin until both S and T have been completed. AOAAON 1 2 4 5 U V S T 3 S T U V Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship U cannot begin until both S and T have been completed; V cannot begin until T has been completed. AOAAON S T U V 13 Dummy 5 246 SU TV Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Activity Relationships Activity Relationship T and U cannot begin until S has been completed; V cannot begin until both T and U have been completed. AOAAON 124 3 ST 5 V U Dummy STV U Figure 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Example 8.1 Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff. BSelect site and do site survey. CSelect equipment. DPrepare final construction plans and layout. EBring utilities to the site. FInterview applicants and fill positions in nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment. HConstruct the hospital. IDevelop an information system. JInstall the equipment. KTrain nurses and support staff.

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F G Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F G H Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F G H I Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F G H I J Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network Start A B C D E F G H I J K Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AON Network FinishStart A B C D E F G H I J K Figure 8.4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network A Start 1 2 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network A B Start 1 2 4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network A B C D Start 1 2 3 5 4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network F A B C D H E G I Start 1 8 2 3 7 65 4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network F A B C D H E G J I Start 1 8 2 3 7 65 4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network F A B C D H E G J I Dummy Start 1 8 2 3 7 65 4 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital AOA Network F A B C D H E G K J I Finish 9 Dummy Start 1 8 2 3 7 65 4 Figure 8.5 Example 8.1

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved.Immediate ActivityDescriptionPredecessor(s)Responsibility ASelect administrative and medical staff.—Johnson BSelect site and do site survey.—Taylor CSelect equipment.AAdams DPrepare final construction plans and layout.BTaylor EBring utilities to the site.BBurton FInterview applicants and fill positions inAJohnson nursing, support staff, maintenance, nursing, support staff, maintenance, and security. and security. GPurchase and take delivery of equipment.CAdams HConstruct the hospital.DTaylor IDevelop an information system.ASimmons JInstall the equipment.E,G,HAdams KTrain nurses and support staff.F,I,JJohnson St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Figure 8.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Example 8.2 St. Adolf’s Hospital Earliest Start and Earliest Finish Times

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times Example 8.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 19 59 9 33 0 9 9 19 12 22 Finish Start Example 8.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 22 57 19 59 9 33 0 9 9 19 12 22 Finish Start Example 8.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 22 57 59 6319 59 9 33 0 9 9 19 12 22 Finish Start Example 8.2

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 Latest Start and Latest Finish Times Example 8.3 Finish Start

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 63 69 Latest finish time Finish Start Example 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 63 69 Latest start time Latest finish time Finish Start Example 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 59 63 Latest Start and Latest Finish Times Finish Start Example 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 24 59 19 59 35 59 59 63 Latest Start and Latest Finish Times Finish Start Example 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 14 24 24 59 9 19 19 59 35 59 59 63 Latest Start and Latest Finish Times Finish Start Example 8.3

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity Slack Analysis A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Start Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Activity Slack Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Activity Slack Slack = LS – ES or Slack = LF – EF Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Activity Slack Slack K = 63 – 63 or Slack K = 69 – 69 Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Activity Slack Slack K = 0 or Slack K = 0 Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Node DurationESLS Slack Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Analysis Node DurationESLS Slack A12022 B9000 C1012142 D10990 E2493526 F10125341 G3522242 H4019190 I15124836 J459590 K663630 Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital C 10 G 35 E 24 I 15 F 10 12 27 12 22 22 57 9 33 12 22 48 63 53 63 14 24 24 59 35 59 B9B9 0 9 D 10 9 19 H 40 19 59 J4J4 59 63 K6K6 63 69 Finish Critical Path Node DurationESLS Slack A12022 B9000 C1012142 D10990 E2493526 F10125341 G3522242 H4019190 I15124836 J459590 K663630 Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital C 10 G 35 E 24 I 15 F 10 12 27 12 22 22 57 9 33 12 22 48 63 53 63 14 24 24 59 35 59 B9B9 0 9 D 10 9 19 H 40 19 59 J4J4 59 63 K6K6 63 69 A 12 0 12 2 14 Finish Start Critical Path Example 8.4

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Linear cost assumption St. Adolf’s Hospital 8000 — 7000 — 6000 — 5000 — 4000 — 3000 — 0 — Direct cost (dollars) |||||| 567891011 Time (weeks) Figure 8.11 Cost-Time Relationships in Cost Analysis Crash cost (CC) Normal cost (NC) (Crash time) (Normal time) Estimated costs for a 2-week reduction, from 10 weeks to 8 weeks 5200

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital TABLE 8.1DIRECT COST AND TIME DATA FOR THE ST. ADOLF’S HOSPITAL PROJECT A12$ 12,00011$ 13,0001$ 1,000 B950,000764,00027,000 C104,00057,0005600 D1016,000820,00022,000 E24120,00014200,000108,000 F1010,000616,00041,500 G35500,00025530,000103,000 H401,200,000351,260,000512,000 I1540,0001052,50052,500 J410,000113,00021,000 K630,000534,00014,000 Totals$1,992,000$2,209,000 Maximum NormalNormalCrashCrashTimeCost of TimeCostTimeCostReductionCrashing per Activity(NT)(NC)(CT)(CC)(wk)Week

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 weeks @ $1,000/week Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 weeks @ $1,000/week Minimum-Cost Schedule Example 8.5 3($28,000) – 3($1,000) = $81,000

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity J by 3 weeks @ $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity J by 3 weeks @ $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 weeks @ $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J1J1 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Minimum Cost Schedule A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 69 weeks Crash Activity J by 3 weeks @ $1,000/week 3($28,000) – 3($1,000) = $81,000 $2,624,000 – $81,000 = $2,543,000 FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity D by 2 weeks @ $2,000/week Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,543,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 66 weeks Crash Activity D by 2 weeks @ $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 64 weeks Crash Activity D by 2 weeks @ $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 64 weeks Crash Activity D by 2 weeks @ $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule St. Adolf’s Hospital FinishStart A 12 B9B9 C 10 D 10 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Path B-D-H-J-K: 64 weeks Crash Activity D by 2 weeks @ $2,000/week $28,000 + $8,000 – 2($2,000) = $32,000 $2,543,000 – $32,000 = $2,511,000 Minimum-Cost Schedule St. Adolf’s Hospital Start A 12 B9B9 D 10 E 24 F 10 Finish C 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeks Crash Activity K by 1 week @ $4,000/week Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,511,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeks Crash Activity K by 1 week @ $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activity K by 1 week @ $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activity K by 1 week @ $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule St. Adolf’s Hospital FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K6K6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activity K by 1 week @ $4,000/week $8,000 – $4,000 = $4,000 $2,511,000 – $4,000 = $2,507,000 Minimum-Cost Schedule St. Adolf’s Hospital FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activities B and C by 2 weeks @ $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeks Crash Activities B and C by 2 weeks @ $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,507,000 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Critical Paths B-D-H-J-K and A-C-G-J-K: 61 weeks Crash Activities B and C by 2 weeks @ $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,506,200 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule Example 8.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Critical Paths B-D-H-J-K and A-C-G-J-K: 61 weeks Crash Activities B and C by 2 weeks @ $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,506,200 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule St. Adolf’s Hospital FinishStart A 12 B9B9 C 10 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Critical Paths B-D-H-J-K and A-C-G-J-K: 61 weeks Crash Activities B and C by 2 weeks @ $7,000/week and $600/week A-I-K:33 weeksB-D-H-J-K:69 weeks A-F-K:28 weeksB-E-J-K:43 weeks A-C-G-J-K:67 weeks Total cost = $2,624,000 $2,506,200 Indirect costs = $8,000/week Penalty cost = $20,000/week after week 65 2($8,000) – 2($7,600) = $800 $2,507,000 – $800 = $2,506,200 Minimum-Cost Schedule St. Adolf’s Hospital FinishStart A 12 B77B777 C88C888 D88D888 E 24 F 10 G 35 H 40 I 15 J11J111 K55K555

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates Figure 8.12 (a) Beta Distribution Mean mab Time Probability

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Probabilistic Time Estimates Time Probability Figure 8.12 (b) Normal Distribution Mean abm 3333 3333 Area under curve between a and b is 99.74%

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Probabilistic Time Estimates AF I CG Finish D E HBJ K Start te =te =te =te = a + 4m + b 6Mean 2 =2 =2 =2 = ( ) b – ab – a66b – ab – a666 2Variance

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity B Most OptimisticLikelyPessimistic (a)(m)(b) 7815 Probabilistic Time Estimates AF I CG Finish D E HBJ K Start Example 8.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Activity B Most OptimisticLikelyPessimistic (a)(m)(b) 7815 Probabilistic Time Estimates t e = = 9 weeks 7 + 4(8) + 15 6  2 = = 1.78 ( ) 15 - 7 6 2 AF I CG Finish D E HBJ K Start Example 8.6

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Example 8.6 St. Adolf’s Hospital OptimisticLikelyPessimisticExpectedVariance Activity(a)(m)(b)Time (t e )(  2 ) Time Estimates (wk)Activity Statistics A111213120.11 B781591.78 C51015102.78 D8916101.78 E142530247.11 F6918104.00 G253641357.11 H354045402.78 I101328159.00 J121545.44 K56760.11

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89 z = 72 – 69 11.89 Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days Example 8.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89 z = = 0.87 72 – 69 11.89 Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days From Appendix 2 P z =.8078 .81 Example 8.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital Example 8.7  2 =  (variances of activities) z = T – T E  2  2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89 z = = 0.87 72 – 69 11.89 Probabilities Critical Path = B - D - H - J - K T = 72 days T E = 69 days From Appendix 2 P z =.8078 .81 Project duration (weeks) 6972 Probability of meeting the schedule is 0.8078 Length of critical path Normal distribution: Mean = 69 weeks;  = 3.45 weeks Probability of exceeding 72 weeks is 0.1922 Figure 8.13

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. St. Adolf’s Hospital  2 =  (variances of activities) z = T – T E  2  2 = 0.11 + 2.78 + 7.11 + 5.44 + 0.11 = 15.55 z = = 1.27 72 – 67 15.55 Probabilities Path = A - C - G - J - K T = 72 days T E = 67 days From Appendix 2 P z =.8980 .90 Example 8.7

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. AF I CG Finish D E HBJ K Start St. Adolf’s Hospital ActivityDurationEarliest StartLatest StartSlack C101614–2 G352624–2 J46159–2 K66563–2 D10109–1 H402019–1 E24103525 I15164832 F10165337 TABLE 8.2SLACK CALCULATIONS AFTER ACTIVITIES A AND B HAVE BEEN COMPLETED

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Project Life Cycle StartFinish Resource requirements Time Figure 8.14 Definition and organization Planning Execution Close out

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Solved Problem 1 Finish Start A4A4 B7B7 C5C5 D6D6 E3E3 F 11 G4G4 H3H3 Figure 8.15

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start A B C D E F G Figure 8.16(a) AON Network

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Figure 8.16(b) AOA Network Finish Start 1 2 3 F A B C D E F G Dummy

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start Figure 8.17 A 4.0 0.0 4.0 8.0 D 12.0 4.0 8.0 16.0 20.0 E 6.5 9.0 15.5 G 4.5 15.5 20.0 C 3.5 5.5 9.0 F 9.0 5.5 6.5 14.5 15.5 B 5.5 0.0 5.5

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Solved Problem 2 Finish Start Figure 8.17 A 4.0 0.0 4.0 8.0 D 12.0 4.0 8.0 16.0 20.0 E 6.5 9.0 15.5 G 4.5 15.5 20.0 C 3.5 5.5 9.0 F 9.0 5.5 6.5 14.5 15.5 B 5.5 0.0 5.5 Start 1 ESEF LSLF 04480448 A

To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Planning.

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To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Planning.

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Presentation on theme: "To Accompany Krajewski & Ritzman Operations Management: Strategy and Analysis, Seventh Edition © 2004 Prentice Hall, Inc. All rights reserved. Planning."— Presentation transcript:

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