Question 7 of 8: Construction Project — CPM Network and an Accident-Driven Duration Change
Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)
Notes on this paper
National Technical Examinations — December 2017 — 98-Ind-A4 Production Management. Three-hour, closed-book exam; Casio or Sharp approved calculators only. Format: eight questions, each worth 20 marks (sub-part weights 10/10 as tabulated on the front-page marking scheme); only the first five questions appearing in the answer book are marked, so candidates effectively choose 2 of 3 in Section A and 3 of 5 in Section B. All eight are solved below for completeness. The paper asks for point-form answers wherever possible; the solutions below use full working for clarity.
Reference texts: Nahmias & Olsen, Production and Operations Analysis (7th ed., Waveland/McGraw-Hill) — forecasting, inventory (EOQ/EPQ) and aggregate planning; Sipper & Bulfin, Production: Planning, Control, and Integration — production scheduling, JIT/kanban and shop-floor implementation gaps; Hillier & Lieberman, Introduction to Operations Research (11th ed.) — LP formulation and project scheduling (CPM/PERT); Pinedo, Scheduling: Theory, Algorithms, and Systems (5th ed.) — parallel-machine scheduling and days-off workforce scheduling; Hopp & Spearman, Factory Physics (3rd ed.) — variability, buffering, and production scheduling; Liker, The Toyota Way, and Shingo, A Revolution in Manufacturing: The SMED System — 5S, Five Whys, SMED and lean root-cause analysis.
Question 7: Construction Project — CPM Network and an Accident-Driven Duration Change (20 marks)
The activity-precedence topology (A→B,C,D; B→E; C→E,G; D→H; E→F; F→I; G→F,J; H→J; I,J→END) is as shown in the question. The B and J durations are B$=14$ d and J$=12$ d. The part-(b) disruption lengthens D from 5 to 12 days, and the alternate sub-contractor charges a premium ($\$1{,}500$/day, 6-day completion).
Given. Ten activities with precedence and durations (days), late completion penalty $\$5{,}000$/day.
Activity
Precedes
Duration (days)
A
B, C, D
15
B
E
14
C
E, G
6
D
H
5
E
F
3
F
I
8
G
F, J
8
H
J
9
I
END
7
J
END
12
Find. (a) The project network, critical path, and earliest/latest start times (and slack) of every activity; (b) whether to hire the $\$1{,}500$/day-more sub-contractor who finishes D in 6 days instead of 12, once the accident investigation strikes.
Figure 1 — Activity-on-node project network (original durations). Red boxes/arrows mark the critical path A→B→E→F→I (47 days); part (b) checks whether this path relocates once D lengthens to 12 days.
Approach. Run a forward pass (earliest start/finish) then a backward pass (latest start/finish) through the precedence network to get every activity's slack; the critical path is the chain of zero-slack activities. Then re-run the forward pass with D's new duration (12 days for the disruption, 6 days for the alternate sub-contractor) to see whether the critical path relocates, and compare the net cost of the faster sub-contractor against the penalty it avoids.
Forward pass (earliest times). Starting A at day 0 and working through the precedence chain ($ES_i=\max$ of predecessors' $EF$; $EF_i=ES_i+d_i$):
$$EF_A=15,\ EF_B=29,\ EF_C=21,\ EF_D=20,\ EF_E=\max(29,21)+3=32,\ EF_G=21+8=29,$$
$$EF_H=20+9=29,\ EF_F=\max(32,29)+8=40,\ EF_J=\max(29,29)+12=41,\ EF_I=40+7=47.$$
The project duration is the later of the two end activities: $\boxed{T=\max(EF_I,EF_J)=\max(47,41)=47\ \text{days}}$.
Backward pass, slack, and critical path (part a). Setting $LF_I=LF_J=47$ and working backward ($LF_i=\min$ of successors' $LS$; $LS_i=LF_i-d_i$; slack $=LS_i-ES_i$) gives every activity's latest start and slack (tabulated below). The chain of zero-slack activities is $\boxed{A\to B\to E\to F\to I}$, with $15+14+3+8+7=47$ days, matching the project duration — the path shown in red in Figure 1. D itself carries 6 days of slack (its path A–D–H–J is 6 days shorter than the critical path).
Effect of D → 12 days, accident investigation (part b, first check). D is not on the critical path and carries 6 days of slack, but its duration increase (5→12, i.e. $+7$ days) exceeds that slack by 1 day. Re-running the forward pass with $d_D=12$: $EF_D=15+12=27\Rightarrow EF_H=27+9=36\Rightarrow EF_J=\max(29,36)+12=48$, while the F/I side ($EF_I=47$) is unaffected. The new project duration is
$$\boxed{T'=\max(47,48)=48\ \text{days}},$$
a delay of $48-47=\boxed{1\ \text{day}}$ (D's 7-day increase minus its 6 days of slack). The critical path shifts to $A\to D\to H\to J$ (new length $15+12+9+12=48$ days). At $\$5{,}000$/day, keeping the original D subcontractor and simply absorbing the 1-day delay costs $\boxed{1\times\$5{,}000=\$5{,}000}$ in late-completion penalty.
New sub-contractor for D, $\$1{,}500$/day more, 6-day duration (part b, decision). With $d_D=6$ instead of 12, re-run the forward pass: $EF_D=15+6=21\Rightarrow EF_H=21+9=30\Rightarrow EF_J=\max(29,30)+12=42$, while $EF_I=47$ is unaffected (still the larger of the two). The new project duration is $T''=\max(47,42)=47$ days — exactly the original, undisrupted 47-day schedule, i.e. zero delay and zero penalty. The new sub-contractor costs $\$1{,}500$/day more, over D's 6-day duration, i.e. an extra $6\times\$1{,}500=\$9{,}000$.
$$\text{Option 1 (keep original subcontractor): cost}=\boxed{\$5{,}000}\ \text{(1-day penalty, no extra fee)}$$
$$\text{Option 2 (hire new subcontractor): cost}=\boxed{\$9{,}000}\ \text{(no penalty, but the full \$1{,}500/day premium)}$$
Since $\$5{,}000<\$9{,}000$, the new sub-contractor is not worth hiring here: $\boxed{\text{No, do not hire them}}$ — absorbing the 1-day delay penalty saves $\$9{,}000-\$5{,}000=\$4{,}000$ versus paying the faster contractor's premium.
Activity
ES
EF
LS
LF
Slack
A
0
15
0
15
0 (critical)
B
15
29
15
29
0 (critical)
C
15
21
18
24
3
D
15
20
21
26
6
E
29
32
29
32
0 (critical)
G
21
29
24
32
3
H
20
29
26
35
6
F
32
40
32
40
0 (critical)
J
29
41
35
47
6
I
40
47
40
47
0 (critical)
Project duration: original / D→12d, keep sub / D→6d, new sub
47 d / 48 d (+1 d, $5,000 penalty) / 47 d (on time, $9,000 extra fee) — do not switch