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    Intercat

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    Karthik Arumugham
    This document contains an assignment submitted by Karthik Arumugham regarding project and portfolio management. It includes drawing the project network for an initial public offering process, which takes 137.5 days. It then evaluates how changing the duration of certain tasks would affect the timeline. Finally, it discusses how the project can be completed within new deadlines set by Janet and Gilbert, finding the minimum cost approaches.

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    Intercat

    Uploaded by

    Karthik Arumugham
    430 views6 pages
    This document contains an assignment submitted by Karthik Arumugham regarding project and portfolio management. It includes drawing the project network for an initial public offering process, which takes 137.5 days. It then evaluates how changing the duration of certain tasks would affect the timeline. Finally, it discusses how the project can be completed within new deadlines set by Janet and Gilbert, finding the minimum cost approaches.

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    Intercat

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    This document contains an assignment submitted by Karthik Arumugham regarding project and portfolio management. It includes drawing the project network for an initial public offering process, which takes 137.5 days. It then evaluates how changing the duration of certain tasks would affect the timeline. Finally, it discusses how the project can be completed within new deadlines set by Janet and Gilbert, finding the minimum cost approaches.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    430 views6 pages

    Intercat

    Uploaded by

    Karthik Arumugham
    This document contains an assignment submitted by Karthik Arumugham regarding project and portfolio management. It includes drawing the project network for an initial public offering process, which takes 137.5 days. It then evaluates how changing the duration of certain tasks would affect the timeline. Finally, it discusses how the project can be completed within new deadlines set by Janet and Gilbert, finding the minimum cost approaches.

    Copyright:

    © All Rights Reserved
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    of 6

    INTERCAT CASE

    Project and Portfolio Management Assignment #01

    OCTOBER 18, 2014

    KARTHIK ARUMUGHAM [1311299]


    IIM BANGALORE

    Project and Portfolio Management Assignment #01


    a) Draw the project network for completing the initial public offering of InterCat stock. How long is the initial
    public offering process? What are the critical steps in the process?
    Project network:

    Duration: 137.5 days or 27.5 weeks


    Critical Path: A-B-D-E-F-J-K-L-O-P

    Karthik Arumugham [1311299]

    Project and Portfolio Management Assignment #01


    b) How would the change in the following activities affect the time to complete the initial public offering? Please
    evaluate each change independently.
    a. Some members of the syndicate are playing hardball. Therefore, the time it takes to negotiate the
    commitment of each member of the syndicate increases from 2-3 weeks.
    The negotiate the commitment of each member of the syndicate task has a start slack of 1 week. Hence
    increasing the duration of this task from 2-3 weeks will not impact the overall duration of the project. But it
    now introduces a new alternate critical path.
    Critical Path 1 : A-B-D-E-F-J-K-L-O-P
    Critical Path 2 : A-B-C-E-F-J-K-L-O-P

    b. The underwriters are truly math geniuses. Therefore, the time it takes to calculate the issue price
    decreases to 4 weeks.
    The calculate the issue price task has a start slack of 2.5 weeks. Hence decreasing the duration of this task
    from 5-4 weeks will not impact the overall duration of the project. But it increases the slack to 3.5 weeks.
    Critical path remains the same.
    Critical Path: A-B-D-E-F-J-K-L-O-P

    Karthik Arumugham [1311299]

    Project and Portfolio Management Assignment #01


    c. Whoa! The SEC found many deficiencies in the initial registration statement. The underwriters must
    therefore spend 2.5 weeks amending the statement and resubmitting it to the SEC.
    The amending the statement and resubmitting it to the SEC task has a start slack of 0 weeks and is a
    critical task. Hence increasing the duration of this task from 1-2.5 weeks will impact the overall duration of
    the project by 1.5 weeks increase to 29 weeks. Critical path remains the same.
    Critical Path: A-B-D-E-F-J-K-L-O-P

    d. The new issue does not comply with the blue sky laws of a handful states. The time it takes to edit the
    issue for each state to ensure compliance increases to 4 weeks.
    The Confirm that the new issue complies with the 'blue sky' laws task has a start slack of 2.5 weeks. Hence
    increasing the duration of this task from 1-4 weeks will impact the overall duration of the project by 0.5
    weeks increase to 28 weeks. This introduces two new critical paths
    Critical path 1: A-B-D-E-F-G-M-P
    Critical path 2: A-B-D-E-F-J-K-L-M-P

    Karthik Arumugham [1311299]

    Project and Portfolio Management Assignment #01


    c) How can Intercat meet the new deadline of 22 weeks set by Janet and Gilbert at minimum cost?
    Solved using Linear Programming in Excel 2013 Solver Add-in:

    Janet and Gilbert must reduce the time for the following tasks to finish the project within 24 weeks at a minimum cost of
    $260,800,
    Task A by 1.5 weeks,
    Task B by 1 week,
    Task K by 0.5 week
    Task N by 1.5 weeks
    Task O by 2 weeks and
    Task P by 0.5 week
    Karthik Arumugham [1311299]

    Project and Portfolio Management Assignment #01


    d) How can Intercat meet the new deadline of 24 weeks set by Janet and Gilbert at minimum cost?

    Janet and Gilbert must reduce the time for the following tasks to finish the project within 24 weeks at a minimum cost of
    $236,000,
    Task A by 1.5 weeks,
    Task B by 1 week,
    Task K by 0.5 week and
    Task O by 0.5 week

    Karthik Arumugham [1311299]

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