Assignment Two:
Construction
After six months of study, much political arm wrestling, and some serious financial analysis,
Professor Sean Steel, Vice Chancellor of Wigan University, had reached a decision. To the
delight of its students, and to the disappointment of its athletic boosters, Wigan University
would not be relocating to a new football site but would expand the capacity of its on-campus
stadium.
Adding 21,000 seats, including dozens of luxury skyboxes, would not please everyone.
The influential football coach, Mr Tony Timber, had long argued the need for a first–class
stadium, one with built–in dormitory rooms for his players and a palatial office appropriate for
a coach of a future premia league football champion team. But the decision was made, and
everyone, including the coach, would learn to live with it.
The job now was to get construction going immediately after the 2014 season ends. This
would allow exactly 270 days until the 2015 season opening game. The Contractor, Concrete
Construction Ltd (Mr Christopher Concrete being an alumnus, of course), signed the
contract. Mr Concrete looked at the tasks his engineers had outlined and looked the Vice
Chancellor in the eye. “I guarantee the team will be able to take the field on schedule next
year”, he said with a sense of confidence. “I surely hope so,” replied Professor Steel. “The
contract penalty of £10,000 per day for running late is nothing compared to what the Coach
Mr Timber will do to you if our opening game with Omskirk International University is delayed
or cancelled. Mr Concrete, sweating slightly, did not respond. In football–crazy Britain,
Concrete Construction Ltd would be mud if the 270–day target were missed.
Back in his office, Mr Concrete again reviewed the data. See table 1 below and note that
optimistic time estimates can be used crash times. He then gathered his foremen. “People, 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 —also 240 days. I want to be early, not
just on time!”
Table 1: Activities for Constructing the Wigan University Stadium Project
Activity Activity Description Predecessors Optimistic
A Bonding, Insurance,
B Foundation, concrete
C Upgrading sky boxes,
D Upgrading walkways,
E Interior wiring, lathes B 25 30 35 28
F Inspection approvals E 1 1 1 650
G Plumbing D, E 25 30 35 63
H Painting G 10 20 30 820
I Hardware/air
tax structuring.
footings for boxes
stadium seating
stairwells, elevators
START 20 30 40 17
A 20 65 80 16
A 50 60 100 557
C 30 50 100 47
H 20 25 60
conditioning/metal
workings
windows
J Tile/carpeting/
K Inspection J 1 1 1 720
L Final detail work/
H 8 10 12 975
I, K 20 25 60 13
cleanup
REQUIRED
A: Using the Programme Evaluation and Review technique, determine the expected
completion time for each activity. Use this information to draw an activity on node
diagram and an early start Gantt chart for the project. Analyse the activity on
node network and determine the expected project completion time and the critical
activities. For each activity in the project, determine the total float, free float, and the
independent float available if any.
B: Discuss the key features, strengths and limitations of the Programme Evaluation
and Review Technique (PERT) and determine the probability of completing the project
in 270 days.
C: If it were necessary to crash to 250 or 240 days, Evaluate how Concrete
Construction Ltd could do so and the costs involved. As noted in the case, assume
that optimistic time estimates can be used as crash times.
D: Discuss, with examples, in the context of the above case study how Information
Technology could be deployed to assist in project planning and control.
Assessment Criteria Marks
Accurate calculation of the expected completion time for each
1
activity using the PERT. 5
Accurate drawing of the activity-on-node network and critical path
analysis showing EST, LST, EFT and LFT for each activity 15
2
Accurate calculation of the total float, free float and independent
3
float for each of the activities in the network. 15
Accurate drawing of the early start Gantt Chart for the project. 10
4
Creative discussion of key features of the PERT, strengths
and limitations and accurate calculation of the probability of
5
completing the project in 270 days.
Creative discussion of the implications of project crashing
on projects risks and accurate calculation of the costs and
6
procedure to reduce the project duration to 250 days and 240
days respectively.
7. Relevant assessment of the role of IT in project planning and
control 15
Post-graduate style and correct use of Harvard referencing 5
8
NOTES
1. Your report should not exceed 3000 words.
2. All textbooks, journal papers, articles, websites accessed etc, should be included in
your Bibliography, and any subject matter which is used in your submission should be
included in your reference section using the Harvard system.
3. Marks will be allocated for Content, Structure, Coherence, References, and
Bibliography (depth of research and currency) and overall presentation.
4. Reference to the student’s experiences in the industry (if any) and professional
perspectives is encouraged, where it serves to support or illustrate the arguments and
discussions within the text.
Bibliography
(please submit in Harvard referencing format)
Essential reading:
(teams should note that essential reading would not normally exceed 3 or 4 texts/journals)
Burke, R (2008) Project Management, Planning and Control Techniques, 5th
Wiley.
Nicholas J M and Steyn H (2012) Project Management for Business, Engineering and
Technology, 4rd
Gardiner, P (2005) Project Management: A strategic Planning Approach,
Palgrave-MacMillan.
Other indicative reading:
Lientz, B P (2013) Project Management: A problem-based approach,
Palgrave-MacMillan.
Project Management Journal
International Journal of Project Management
Edition, John
Edition, Routledge.
5
Teams should ensure that electronic resources are also listed in the Bibliography
Syllabus outline:
History of project management. The project life cycle. Feasibility studies and project
selection. Key stages in project management. Projects in Controlled Environments (PRINCE
2). The Project Management Body of Knowledge (PMBOK), Role of the project manager.
Project Planning techniques. Bar charts. Activity-on-arrow network. Precedence diagrams.
The Programme Evaluation and Review Technique. Time-cost optimisation.
Project procurement. Procurement strategy and contractor selection. Partnering, framework
agreements, PFI/PPP procurement, alliance contracts and collaborative procurement.
Project Risk management. Risk identification. Risk analysis. Risk allocation.
The Work Breakdown Structure. Project cost estimating techniques. Project cost control.
Earned value analysis.
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