Opm Final Answers

Problem 1. Development of a new deluxe version of a particular software product is being considered. The activities necessary for the completion of this project are listed in the table below along with their costs and completion times in weeks.

Activity | Normal Time | Crash Time | Normal Cost | Crash Cost | Immediate Predecessor |

A | 4 | 3 | 2,000 | 2,600 | - |

B | 2 | 1 | 2,200 | 2,800 | A |

C | 3 | 3 | 500 | 500 | A |

D | 8 | 4 | 2,300 | 2,600 | A |

E | 6 | 3 | 900 | 1,200 | B, D |

F | 3 | 2 | 3,000 | 4,200 | C, E |

G | 4 | 2 | 1,400 | 2,000 | F |

(a) What is the project expected completion date?

(b) What is the total cost required for completing this project on normal time?

(c) If you wish to reduce the time required to complete this project by 1 week, which activity should be crashed, and how much will this increase the total cost?

Solution: (a)

Project completion time is therefore tAtDtEtFtG = 4+8+6+3+4 =25

(b) Total cost = $2,000+$2,200+$500+$2,300+$900+$3,000+$1,400=$12,300

(c) Crash D 1 week at an additional cost of $2,600-$2,300/8-4=$300/4=$75

Problem 1. The Crystal Sparkle Co. produces glass tumblers. The plant is designed to produce 400 tumblers per hour, and there is 1 eight-hour shift per working day. However, the plant does not operate for the full 8 hours: the employees take two 15-minute breaks in each shift, one in the first 4 hours and one in the second 4 hours, the first 30 minutes of the shift are spent raising the kilns to the required temperature for firing glass. The plant usually produces about 10,000 tumblers per five-day workweek. Answer the following questions by adjusting the data to one eight-hour shift.

What is the design capacity in tumblers?

What is the effective capacity in tumblers? As a percent?

What is the actual output in tumblers?

What is the efficiency ratio?

What is the utilization ratio?

Solution: a. Design capacity = 8 hrs. x 400 tumblers = 3,200 tumblers per 8-hour shift.

b....