Labor Day

Part 1 (3 Marks)
Project Description
The new computer-controlled conveyor belt is an exciting project that moves and positions
items on the conveyor belt within <1 millimeter. The project will produce a new system for
future installations, and for replacement of those in the field, at a low cost. The computer
controlled conveyor belt has the potential to be a critical unit in 30 percent of the systems
installed in factories. The new system is also easier to update with future technologies.
The Project Priority Matrix for the Conveyor Belt Project (CBP) is:
Table A2.9 has been developed for you to use in completing the project exercises.
Assignment P1:
Develop the WBS outline using the software available to you.
Part 2 (7 Marks)
Use your file from Part 1 and the information provided below to complete this exercise. (See
Table A2.10.)

1. Each work package will represent an activity.
2. The project begins January 4, 2021.
3. The following holidays are observed: January 1, Memorial Day (last Monday in May), July
   4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November),
   December 25 and 26 (Christmas Holiday)
4. If a holiday falls on a Saturday then Friday will be given as an extra day off, and if it falls
   on a Sunday, then Monday will be given as a day off.
5. The project teams work eight-hour days, Monday through Friday.
   Assignment P2:
   Construct a network schedule for the conveyor belt project and prepare a memo that
   addresses the following questions:
6. When is the project estimated to be completed? How long will the project take?
7. What is the critical path(s) for the project?
8. Which activity has the greatest amount of slack?
9. How sensitive is this network?
10. Identify two sensible milestones and explain your choices.
11. Include the following printouts:
    a) A Gantt chart.
    b) A network diagram highlighting the critical path.
    c) A schedule table reporting ES, LS, EF, LF, and slack for each activity.
    Part 3 (8 Marks)
    Remember the old saying, “A project plan is not a schedule until resources are committed.”
    This exercise illustrates this subtle, but very important, difference.
    Part A
    Using your files from Part 2 input resources and their costs if you have not already done so.
    All information is found in Tables A2.10 and A2.11.
    Assignment P3:
    Prepare a memo that addresses the following questions:
12. Which if any of the resources are overallocated?
13. Assume that the project is time constrained and try to resolve any overallocation problems
    by leveling within slack. What happens?
14. What is the impact of leveling within slack on the sensitivity of the network? Include a
    Gantt chart with the schedule table after leveling within slack.
15. Assume the project is resource constrained and resolve any overallocation problems by
    leveling outside of slack. What happens? What are the managerial implications?
    Note: No splitting of activities is allowed.
    Note: No partial assignments (e.g., 50 percent). All resources must be assigned 100 percent.
    Part 4 (4 Marks)
    Assignment P4:
    Based on the file created at the end of Part 3, prepare a memo that addresses the following
    questions:
16. How much will the project cost?
17. What does the cash flow statement tell you about how costs are distributed over the life
    span of the project?
    Include a monthly cash flow and a cost table for the project.
    Once you are confident that you have the final schedule, save the file as a baseline.
    Hint: Save a backup file just in case without baseline!
    Part 5 (8 Marks)
    Prepare status reports for the first quarter of the project given the information provided here.
    This requires saving your resource schedule as a baseline and inserting the appropriate status
    report date in the program. Assume that no work has been completed on the day of the status
    report.
    Assignment P5:
    Your status report should include a table containing the PV, EV, AC, BAC, EAC, SV, CV,
    and CPI for each activity and the whole project. The report should also address the following
    questions:
18. How is the project progressing in terms of cost and schedule?
19. What activities have gone well? What activities have not gone well?
20. What do the PCIB and PCIC indicate in terms of how much of the project has been
    accomplished to date?
21. What is the forecasted cost at completion (EACf)? What is the predicted VACf?
22. Report and interpret the TCPI for the project at this point in time.
    Try to present the above information in a form worthy of consideration by top management.
    Include a Tracking Gantt chart with the report.
    First Quarter, April 1, 2021
    Table A2.12 summarizes the information regarding activities accomplished to date.

Sample Solution