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Marketing Manage

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Submitted By omilime
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of course), signed his contract. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in the eye. “I guarantee the team will be able to take the field on schedule next season,” he said with a sense of confidence. “I sure hope so,” replied Starr. “The contract penalty of $10,000 per day for running late is nothing compared to what Coach Pitterno will do to you if our opening game with Penn State is delayed or canceled.” Hill, sweating slightly, did not need to respond. In football-crazy Texas, Hill Construction would be mud if the 270-day target were missed.

Back in his office, Hill again reviewed the data (see the following table, and note that optimistic time estimates can also be used as crash times). He then gathered his foremen. “Boys, if we’re not 75% sure we’ll finish this stadium in less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days, and also for 240 days. I want to be early, not just on time!”

Time Estimates (days)
Activity Pred(s) Opt Most Likely Pess Crash Cost/Day
A. Bonding, insurance, tax structuring -- 20 30 40 $1,500
B. Foundation, concrete footings for boxes A 20 65 80 $3,500
C. Upgrading skyboxes stadium seating A 50 60 100 $4,000
D. Upgrading walkways, stairwells, elevators C 30 50 100 $1,900
E. Interior wiring, lathes B 25 30 35 $9,500
F. Inspection approvals E 0.1 0.1 0.1 $0
G. Plumbing D, F 25 30 35 $2,500
H. Painting G 10 20 30 $2,000
I. Hardware/AC/metal workings H 20 25 60 $2,000
J. Tile/carpeting/windows H 8 10 12 $6,000
K. Inspection J 0.1 0.1 0.1 $0
L. Final detail work/cleanup I, K 20 25 60 $4,500

1. Develop a network drawing for Hill Construction and determine the critical path. How long is the project expected to take?

2. What is the probability of finishing in 270 days?

3. If it is necessary to crash to 250 or 240 days, how

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