VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO

CHI MINH UNIVERSITY OF TECHNOLOGY

SCHOOL OF INDUSTRIAL MANAGEMENT
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QUANTITATIVE METHODS

PROJECT MANAGEMENT

Class: CC02 - 333

Teacher: Phạm Quốc Trung

No. Name MSSV

1 Nguyễn Ngọc Vân Anh ( leader) 2153165
2 Nguyễn Hữu Sang 2114636
3 Bùi Thái Cơ 2153237
4 Trần Xuân An 2153151
Table of Contents
1. Introduction ................................................................................................................. 1

1.1. Project management .............................................................................................. 1

2. Summary the case study: Family Planning Research Center of Nigeria ........................ 2

2.1. Summary this case ................................................................................................. 2

2.2. Analyze the case study based on some query ......................................................... 4

2.2.1 Build a diagram of project networking and define critical path ......................... 4

2.2.2 The project can be done given the personnel constraint of 10 persons .............. 6

2.2.3 If the critical path is longer than 60 days, the least amount of time that Dr.
Watage can spend and still achieve the goal with the minimum- cost alternative? ..... 6

3. Case study - This case involves the acquisition and installation of equipment to be
used in a new medical procedure. .................................................................................... 8

3.1. Summary the case study of Bay Community Hospital ........................................... 8

3.2. Analyze the case study ......................................................................................... 10

3.2.1 Build a diagram of project networking and define critical path with the table 1
................................................................................................................................ 10

3.2.2 Shortest path by reducing time using extra money .......................................... 11

4. References ................................................................................................................. 14
1. Introduction
There are several plans, strategies, and numerous activities that need to be completed
each day in every business, organization, and even in daily life, thus there has to be a tool
to manage all of these different things. This technology must efficiently handle
comparable, sophisticated, large-scale projects and track cost overruns. The science of
project management examines how to plan, oversee, and monitor a project's development
to guarantee that it is completed on time and within the allocated budget. completion of
specific project goals and objectives, validation, and quality control. Building the
PERT/CPM system is one of the quantitative analytic methods that aids in controlling all
of these needs in order to attain the objective. In this paper, our group will examine two
project management-related situations in order to demonstrate the value of the
PERT/CPM system when used in practice.
 Case study 1: Family Planning Research in Nigeria
 Case study 2: Bay Community hospital

1.1. Project management

In order to plan, schedule, monitor, and control big and complicated projects, managers
often use the program evaluation and review technique (PERT) and the critical path
method (CPM). They were created in response to the urgent need for a better method of
managing. There are six steps commonly used so as to construct the analytic systems.
The difference between the two approaches is the necessary calculation of the finished
time estimation of each task. While PERT determined the average completion time using
three times values, CPM knew the precise time to complete the jobs.

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The project must be broken down into a series of smaller tasks at first and with all the
data available, these input information could create a networking relationship of a project.
Compute the expected time and the cost incurred for each activity will recognize the
critical path which is the longest route of the project. Having the result from the model,
the managers can use it to apply it in solving the problems.

2. Summary the case study: Family Planning Research Center of Nigeria

2.1. Summary this case
In the Over-the-River Province of Nigeria, Dr. Adinombe Watage was tasked with training
five teams of field workers to implement educational and outreach programs to show
support for a new birth control method. They listed the tasks, priority levels, and the time
requirements for each one. Two training materials were selected for usage and distribution,
and traveling and lodging for the participants were planned. The completed day and the
HR for this project are discussed during planning.
Our group is going to construct the PERT and CPM with data given by using QM add-in
to solve these problems.

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Table 1.1 Family Planning Research Center Activities

Table 1.2 Family Center Research Center costs

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 2.2. Analyze the case study based on some query
2.2.1 Build a diagram of project networking and define critical path
Our crew began to create a relationship diagram between these tasks once we had
determined the issues and the key contributing factors, which helped us better understand
how this project was networked. In order to create the graphical diagram of the project
network, we grouped these activities in accordance with Table 1.1 and utilized the PERT
drawing technique Activity-On-Acr (AOA).

Figure 2.1 The network diagram of Family Planning Research Center Activities

Following the network diagram is the estimation of the time required to complete for each
activity that leads to figure out the critical path of this research. The information in table
1.1 and using the Excel QM calculated some values of ES, EF, LS and LF and then can
determine the slack time of each activity. When slack time is equal to zero, which means
that none of them can be delayed without causing the entire project to be delayed, the
longest time path route over the network is identified as the critical path.

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Activity Early Start Early Finish Late Start Late Finish Slack

A 0 5 8 13 8

B 0 7 12 19 12

C 0 5 0 5 0

D 5 8 19 22 14

E 5 12 13 20 8

F 12 14 20 22 8

G 7 10 19 22 12

H 5 15 5 15 0

I 15 22 15 22 0

J 22 37 22 37 0

K 37 67 37 67 0

Project 67

Table 2.1 The slack time of each activity in the project

Table 2.2 Critical path of project

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 2.2.2 The project can be done given the personnel constraint of 10 persons
Figure 2.1 shows that even though the diagram shows that some activities can be started
concurrently, for instance, A, B, and C will begin first at the same time, the distribution of
employees to meet the needs of each project activity has been ensured by the different
earliest time and latest time. The Gantt chart will provide further information about how
the Nigeria center employs its 10 employees to ensure that there are enough resources for
the project day by day.

Table 2.2 The Gantt chart shows the distribution of employees in each activity

Table 2.2 demonstrates that no activity exceeded the restriction of 10 individuals within
22 days (J and K do not need staff).

2.2.3 If the critical path is longer than 60 days, the least amount of time that Dr.
Watage can spend and still achieve the goal with the minimum- cost alternative?
Dr. Watage wants to finish the project before 67 days that we had identified already in table
2.1 so that he needs to know the consequences of reducing the project timeline no longer
60 days that could be caused by the rise of cost and which alternatives could give the best
minimum cost for crashing the project. We will initially concentrate on minimizing the
days spent on the activities C, H, I, and K since they are on the critical path. The project's
target is achieved in equal or sooner than 60 days. Choose the critical route activity that
saves the least money each day on average, and then crash it to the point where the project
goal is. Our team is still entering data into the Excel QM crashing to determine the required
minimum crash cost.

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 Crash days Crash cost/ day Crash limit

A 100 3

B 4500 3

C 2 50 2

D 250 2

E 150 3

F 1000 1

G 500 1

H 1 200 5

I 5 80 5

J 400 5

K 400 10

Table 2.3 The crash days for the activities in the critical path

We determined that $500 is the necessary minimum crash cost to complete the project in
our first scenario, which involved establishing the target to be fulfilled in 60 days. If Dr.
Watage wants the work finished in as little as 60 days, he will need to spend $25,900. In
addition, more essential pathways, notably A, E, F, J, and K, emerged in the network after
it crashed 59 days ago. As a result, we proceeded to shorten the timing of this path and
calculated the cost spent. We could conclude that the cost of crash Activity I by five days
and crash activity C by two days is the minimum alternative for crashing the timeline of
this project.

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 Activity Crashday Cash cost/day Length in days Total cost

Original path 67 25,400

Crash C (2 days) 2 50 65 25,500

Crash I (5 days) 5 80 60 25,900

Crash H (1 days) 1 200 59 26,100

Second critical path 59

Crash A (3 days) 3 100 56 26,400

Crash E (1 days) 1 150 55 25, 550

Table 2.4 Crashing procedures testing result

3. Case study - This case involves the acquisition and installation of

equipment to be used in a new medical procedure.
3.1. Summary the case study of Bay Community Hospital
The staff of the Bay Community Hospital had committed itself to introduce a new diagnostic
procedure in the clinic. This procedure required the acquisition, installation, and introduction of a
new medical instrument. Dr. Ed Windsor was assigned the responsibility for assuring that the
introduction be performed as quickly and smoothly as possible.
Dr. Windsor created a list of activities that would have to be completed before the new
service could begin. Initially, three individual steps had to be taken: (1) write instructions
and procedures, (2) select techniques to operate the equipment, and (3) procure the
equipment. The instructions and selection of the operators had to be completed before the
training could commence. Dr. Windsor also believed it was necessary to choose the
operators and evaluate their qualifications before formally announcing the new service to
the local medical community. Upon arrival and installation of the equipment and
completion of the operators' training, Edward Windsor wanted to spend a period checking

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out the procedures, operators, and equipment before declaring that the project was
successfully completed The activities and times are listed in Table 1.

Table 3.1 The activity in the new service of Bay Community hospital

Jack Worth, a member of the Bay Community Hospital staff, reported that it would be possible to
save time on the project by paying some premiums to complete certain activities faster than the
normal schedule listed in Table 1. Specifically, if the equipment were shipped by express truck,
one week could be saved. Air freight would save two weeks. However, a premium of $200 would
be paid for the express truck shipment and $750 would be paid for air shipment. The operator
training period could also be reduced by one week if the trainees worked overtime. However, this
would cost the hospital an additional $600. The time required to complete the instructions could
be reduced by one week with the additional expenditure of $400. However, $300 could be saved
if this activity was allowed to take three weeks.
1) Develop a network drawing for the Bay Community Hospital
2) Create a table that presents all ES, EF, LS, LF as well as any slack for all activities.
3) What is the project duration and critical path?
4) What is the shortest time possible (i.e. the fastest time possible) in which the project can be
completed? Justify your answer.
5) What is the lowest cost schedule for this shortest time possible? Justify your answer.

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 3.2. Analyze the case study
3.2.1 Build a diagram of project networking and define critical path with the table 1
By using the PERT/CPM and based on the information in table 1, we can build the network
for the Bay Community hospital.

Figure 3.1 The network diagram of Pay Community Hospital

The network diagram is followed by an estimate of the time needed to perform each task
that helps identify the research's key path. The data in the table plus some values of ES,
EF, LS, and LF generated using Excel QM can be used to calculate the slack time for each
task. The longest time path route across the network is recognized as the crucial path when
slack time equals zero, indicating that none of them can be delayed without delaying the
entire project.

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 Activity ES EF LS LF Slack
LS-ES

A 0 2 3 5 3

B 0 4 1 5 1

C 4 7 5 8 1

D 4 8 6 10 2

E 0 8 0 8 0

F 8 10 8 10 0

Project 10

Table 3.2 The slack time of each activity in the project

Hence, EF is the most critical path and the duration is 10 weeks.

3.2.2 Shortest path by reducing time using extra money

Activity Activity details Normal Crash Crash

Time Time Cost

A Reduce duration of writing instruction 2 1 400

Reduce operator training period by

C 3 2 600
training operators overtime

Express truck shipment 7 200

E 8
Air freighting 6 750

Table 3.3 Cost of crashing time activity

Since E from the list above is on a critical path, E should be crashed as much as possible
to complete the project in the shortest amount of time. E can thus be crashed for a maximum
of six weeks.
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 Activity ES EF LS LF Slack
LS-ES

A 0 1 3 4 4

B 0 4 0 4 0

C 4 6 4 6 0

D 4 8 4 8 0

E 0 6 0 6 0

F 6 8 6 8 0
Table 3.4 The slack time of each activity in the project after crashing

Path possible Time (weeks)

EF 8

BCF 8

BD 8
Table 3.5 Critical path after crashing

Therefore, the critical path with the shortest time period in which the project can be
completed is 8 weeks.

If activity A is allowed to take 3 weeks, the critical path still remains for 8 weeks and the
hospital can save $300.

Since the critical path must be crashed in order to shorten the project's duration, Activity E
must be crashed for a maximum of six weeks by spending the $750 necessary to choose
the air freighting option. In addition, we can relax the duration of activity A from 2 weeks
to 3 weeks by saving $ 300. This does not alter overall project duration, but saves cost.

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Therefore, the lowest cost schedule for the shortest possible time of 8 weeks = $750 - $
300 = $450Therefore, the lowest cost schedule for the shortest possible time of 8 weeks =
$750 - $ 300 = $450

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4. References
1. Render, B., Stair, R. M., & Hanna, M. E. (2012b). Quantitative Analysis for
Management (11th ed., Vol. 12). Prentice Hall.

2. Chapter 12: Project Management. (n.d.).

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