Develop a report that presents the activity schedule and expected project completion time for the warehouse expansion project. Include a project network in the report. In addition, take into consideration the following issue.

May 31, 2023May 31, 2023 Discipline: Business and Management

Case Study #1 – Cost Company Project
Management

Cost Company distributes a
variety of food products that are sold through grocery store and supermarket
outlets. The company receives orders directly from the individual outlets, with
a typical order requesting the delivery of several cases of anywhere from 20 to
50 different products. Under the company’s current warehouse operation,
warehouse clerks dispatch order-picking personnel to fill each order and have
the goods moved to the warehouse shipping area. Because of the high labor costs
and relatively low productivity of hand order-picking, management has decided
to automate the warehouse operation by installing a computer-controlled
order-picking system, along with a conveyor system for moving goods from
storage to the warehouse shipping area

Cost Company’s director of
material management has been named the project manager in charge of the
automated warehouse system. After consulting with members of the engineering
staff and warehouse management personnel, the director compiled a list of
activities associated with the project. The optimistic, most probable and
pessimistic times (in
weeks) have also been provided for each activity.

Activity

Description

Immediate
Predecessor

Optimistic

Most
Probable

Pessimistic

A

Determine
equipment needs

̶

4

8

12

B

Obtain
vendor proposals

̶

4

6

14

C

Select
vendor

A, B

2

4

6

D

Order
system

C

8

10

24

E

Design
new warehouse layout

C

6

9

12

F

Design
warehouse

E

4

6

8

G

Design
computer interface

C

4

9

20

H

Interface
computer

D, F, G

4

6

8

I

Install
system

D, F

4

6

14

J

Train
system operators

H

3

4

5

K

Test
system

I, J

2

4

6

 

Managerial Report … to be submitted by Sunday, 31 May 2023.

Develop a report that presents the
activity schedule and expected project completion time for the warehouse
expansion project. Include a project network in the report. In addition, take into
consideration the following issue.

1.       Cost
Company’s top management established a required 40-week completion time for the
project. Can this completion time be achieved? Include probability information
in your discussion What recommendations do you have if the 40-week completion
time is required?

2.       Suppose that
management requests that activity times be shortened to provide an 80 percent
chance of meeting the 40-week completion time. If the variance in the project
completion time is the same as you found in part (1), how much should the
expected project completion time be shortened to achieve a goal of an 80
percent chance of completion in 40 weeks?

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