Class Sheet On PERT-CPM-1
Class Sheet On PERT-CPM-1
MBA Semester - 2
Q3 The following table gives the activities in a construction project and other relevant
information:
Activity Immediate Time (Months) Direct Cost (Rs ‘000)
Predecessor
Normal Crash Normal Crash
A - 4 3 60 90
B - 6 4 150 250
C - 2 1 38 60
D A 5 3 150 250
E C 2 2 100 100
F A 7 5 115 175
G D, B, E 4 2 100 240
Q4 The owner of a chain of fast food restaurants is considering a new computer system for
accounting and inventory control. A computer company sent the following information about
the system installation:
Activity Immediate Most optimistic Most Likely Most Pessimistic
Identification Predecessor
A - 4 6 8
B A 5 7 15
C A 4 8 12
D B 15 20 25
E B 10 18 26
F C 8 9 16
G E 4 8 12
H D,F 1 2 3
I G,H 6 7 8
a) Construct the arrow diagram for this problem, determine the critical path and state the
expected project completion time.
b) Determine the probability that the project will be completed in 55 days.
c) If the company wants to be 90% sure that the system will be installed by a certain due date,
how many days prior to that should it start the work?
d) Suppose the company agrees to install the computer system in 50 days, failing which it
would pay a penalty of Rs 500 per day. What is the probability the penalty, but not exceeding
Rs 2000, will be paid?