University of Western Ontario

Department of Mechanical & Materials Engineering

MME 9510L

Project Management

Assignment I
Problem 1:
Question1:
The project evaluation for both the projects were based on the weighted score method and Net
Present Value (NPV) analysis. The weighted score method provides score for each category which
was evaluated by the team. This method does not provide any real time statistical data points to
prove that the weighted score method is better than the NPV analysis. The weighted score method
is data obtained from the team members of the project where the data points is collected from
various different categories of the team. By collecting the scores from each category the score
matrix is obtained to know the overall weighted average score. In weighted score method we wont
be able to know the correlate both the categories together. Even if the score is obatiend for two
categories together, the score obtained will not be real time value. The main reason for divergence
in opinion is the real time investment and rate of return obtained from the project.
Screening
Strength Weakness
Method
It helps to drive the company and the The Major drawback is the rating
project to achieve the target by fixing scale of the scoring method. The
strategic goals rating method is not accurate.
Scoring
Every individual goals or category
Method
The majority of the project team members are not inter-related. So the goals
can understand the ease of use without or strategy might be not be
any complication. aligned.

It helps to analyze the present value of
investment and also enables to identify the
future profit that will be generated from
NPV
the outcome
Analysis
This method can be executed with ease if
the intial investement and duration for the
project is known
This method provides only the
outcome of the investment but it
does not provide the risk
involved.
It does not categorize the project
as per categories, it considers the
overall project as an investment.

Question 2:
The project Gemini and project Janus both are profitable but project Gemini is considered more
when compared to the project Janus. The reason for choosing project Gemini as profitable is
provided below. When comparing with the results of NPV analysis the project Janus has a higher
net present value of $60,995 when compared to the net present value of $25,695 for project
Gemini. We cannot decide the project with the net present value alone. The weighted score method
clearly shows that the project Gemini has a higher score that project Janus. We cannot also confirm
that project Gemini is profitable with just the weighted score method. The project can be
considered profitable only if the initial investment can be obtained within a short period of the
project. From the NPV analysis we can clearly understand that the initial investment of $250,000
for project Janus can be obtained back after a period of 3 years, whereas the initial investment of
$400,000 for the project Gemini can be obtained within a period of 2 years. Thus this is the
reason why project Gemini is considered profitable than project Janus.
Question 3:
As the selection of project is more important it is always better to focus on different selection
methods which can bind the time and money constraints and turn out with better solution which is
better for the company.
The contradiction can be resolved if a different selection criteria is chosen for the project that
focusses more on the weighted average involving the financial risk with strategic planning. So the
company can obtain the initial investment without any high financial risk.

Problem 2:
The estimated time, standard deviations and variance for the activities are tabulated in the table
below with the given data.
Variance
Preceding Best Likely Worst Time est. te St. Dev te
Activity TE =
activity A M B =(A+(4M)+B)/6 =(B-A)/6
(te^2 )
a. Rough in walls - 10 15 27 16.16666667 2.833333333 8.027777778
b. Build the bar a 4 6 11 6.5 1.166666667 1.361111111
c. run HVAC - 12 12 30 15 3 9
d. rough in electrical b,c 12 15 20 15.33333333 1.333333333 1.777777778
e. complete flooring a 7 12 15 11.66666667 1.333333333 1.777777778
f. get licenses e 9 9 42 14.5 5.5 30.25
g. install fire alarm c,d,e 13 17 19 16.66666667 1 1
h. deliver kitchen equip e,f 5 10 15 10 1.666666667 2.777777778
i. exposed ceiling reviews c,g 11 13 20 13.83333333 1.5 2.25
j. build stage g,h 12 13 16 13.33333333 0.666666667 0.444444444
k. sound system j,i 8 12 22 13 2.333333333 5.444444444

Table 1 Activity Table

The network diagram for the preceding activity was constructed as per the below figure.
 Path Duration
A,B,D,G,I,K 82
A,E,F,H,J,K 79
A,B,D,G,J,K 81
A,E,G,I,K 72
A,E,G,J,K 71
A,E,H,J,K 64
Table 2 Activity duration for each path

Figure 1 Activity Network Diagram

Note* All the decimal values of duration (estimated time) have been rounded off to the exact value.

A. Identify the critical path

The critical path for the project is highlighted in bold arrows in the above network diagram.
A,B,D,G,I,K is the critical path for the activity with the total duration of 82 days.
B. Identify the slack for each element

Element Slack
A 0
B 0
C 8
D 0
E 3
F 3
G 0
I 0
J 1
K 0

C. Identify the most and least sensitive element

The most sensitive element is J as it has a slack time of 1 day. Even if there is a delay of 1 day
on the project it affects the entire activity of the particular element.
The least sensitive element is C as it has a slack time of 8 days. So even if the element C is
delayed by three or four days it will not affect the overall activity of the element.

D. Identify the predicted project duration

The overall duration of the project predicted from the network diagram is 82 days. The early
finish value at the end of the activity K is 82 days from which the project duration is obtained.

E. If Z is the probability of meeting schedule duration found in the

statistical table below, and defined by the relationship:
Z = (Ts - TE) / SQRT(te2 )
Then what is the likelihood that we finish the project on time?
Express your response as a percentage chance.
The likelihood chance of percentage that we can finish the project on time can be calculated by
using Ts & Te, when the estimated time and the scheduled time are one and the same the value
of Z reaches zero and from reference with the table the probability reaches 0.50, so there is a 50
percent chance that the project can be done on time.