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23-Ind-A4 Production Management · December 2018

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 2018 — 17-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); candidates do two questions from Section A and three from Section B, and only the first five questions appearing in the answer book are marked. 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)

Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.

Given. Ten activities with precedence and durations (days), late completion penalty $\$5{,}000$/day.

ActivityPrecedesDuration (days)
AB, C, D15
BE14
CE, G6
DH5
EF3
FI8
GF, J8
HJ9
IEND7
JEND12

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 the disrupted 15.

A15 dB14 dC6 dD5 dE3 dG8 dH9 dF8 dJ12 dI7 dCritical path (47 d)Arrows = precedence. Boxes not to scale; duration in working days.
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 15 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 (15 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.

  1. Forward pass (earliest times, part a). Starting A at day 0 and working through the precedence chain ($ES_i=\max$ of predecessors' $EF$; $EF_i=ES_i+d_i$): $$EF_A=15,\ EF_B=29,\ EF_C=21,\ EF_D=20,\ EF_E=\max(29,21)+3=32,\ EF_G=21+8=29,$$ $$EF_H=20+9=29,\ EF_F=\max(32,29)+8=40,\ EF_J=\max(29,29)+12=41,\ EF_I=40+7=\boxed{47}.$$ Project duration $=\max(EF_I,EF_J)=\max(47,41)=\boxed{47\ \text{days}}$.
  2. Backward pass and slack (part a). Working back from day 47 ($LF_i=\min$ of successors' $LS$; $LS_i=LF_i-d_i$) gives the slack table below; the critical path is every activity with zero slack: $$\boxed{\text{Critical path: A}\rightarrow\text{B}\rightarrow\text{E}\rightarrow\text{F}\rightarrow\text{I}\ (47\ \text{days})}.$$
  3. Disrupted schedule, D→15 d (part b). Re-running the forward pass with $d_D=15$: $EF_D=15+15=30$, $EF_H=30+9=39$, $EF_J=\max(29,39)+12=51$; $EF_F,EF_I$ are unchanged (they depend on E/G, not D) at 40/47. New project duration $=\max(47,51)=\boxed{51\ \text{days}}$ — the critical path relocates to A–D–H–J, and the project is $51-47=4$ days late: $$\text{Penalty if not hired}=4\times\$5{,}000=\boxed{\$20{,}000}.$$
  4. Alternate sub-contractor, D→6 d (part b). Re-running once more with $d_D=6$: $EF_D=15+6=21$, $EF_H=21+9=30$, $EF_J=\max(29,30)+12=42$; project duration $=\max(47,42)=\boxed{47\ \text{days}}$ — back to the original 47-day critical path (A–B–E–F–I), i.e. exactly on time, zero penalty. Extra cost of hiring $=\$1{,}500\text{/day}\times6\ \text{days}=\boxed{\$9{,}000}$. Net benefit of hiring: $$\$20{,}000\ (\text{penalty avoided})-\$9{,}000\ (\text{extra cost})=\boxed{\$11{,}000\ \text{net savings}}\implies\boxed{\text{hire the alternate sub-contractor}}.$$
ActivityESEFLSLFSlack
A0150150 (critical)
B152915290 (critical)
C152118243
D152021266
E293229320 (critical)
G212924323
H202926356
F324032400 (critical)
J294135476
I404740470 (critical)
Project duration: original / D→15d (b) / D→6d new sub (b)47 d / 51 d (+4 d, $20,000) / 47 d (net +$11,000 saved)