Project management

Team Assignment 2: Project Management

Campus COVID-Friendly Starbucks

A local university is planning to convert an old deli in the student center to a COVID-friendly Starbucks where students can order their drinks on the Starbucks app and then pick up their drinks at the designated window. There are also outdoor seating options for customers to relax, use the WiFi, and hang out with friends in a socially distance setting.

They recently bid out the job and HRW Construction company was selected to oversee the project. Harry and Ryan Warren are the HRW building contractors who specialize in coffee shops and have already constructed multiple traditional Starbuck locations in Northern New Jersey.

Typically, the Warren Brothers submit competitive bids for their construction projects. Whenever their bids are accepted, various aspects of the construction (electrical wiring, plumbing, tiling, painting, and so forth) are subcontracted, as will be the case in this Starbucks project. Harry and Ryan, however, perform all carpentry work. In addition, they plan and schedule all construction operations, frequently arrange interim financing, and supervise all construction activities.

The philosophy under which the Warren Brothers have always operated can be simply stated: ''Time is money." Delays in construction increase the costs of interim financing and postpone the initiation of their building projects. Consequently, they deal with all bottlenecks promptly and avoid all delays whenever possible. To minimize the time needed in a construction project, the Warren Brothers would like to use critical path method (CPM).

All the construction activities and events are itemized. Table 1 lists the following activities that constitute this Starbucks construction project. The table also provides the immediate predecessor event for each activity and the optimistic (o), most likely (m), and pessimistic (p) time estimates.

Activity Immediate

Predecessor Optimistic

Time

Most Likely Time

Pessimistic Time

L Arrange Financing -- 5 9 13 M Identify Subcontractors L 1 1 1 N Recruit barristas M 6 7 11 P Train barristas N 8 9 13 Q Demolish Current Deli Area -- 1 2 6 R Frame Coffee Service Area Q 2 4 6 S Update Plumbing / Drywall M, R 3 4 5 T Electrical wiring, ductwork and insulation S 3 5 10 U Clear and prep ground for patio -- 2 4 6 V Add drainage system U 6 8 10

W Lay stones for patio V 5 9 16 X Measure and order patio seating U 3 4 8 Y Receive and set-up outdoor seating X 5 7 9

Z Paint, install indoor & outdoor fixtures, signage W, Y, T 2 3 4

END Z, P

You have been hired as a consultant to assist the Warren Brothers. If they start the project on November 1, you will need to determine the likelihood that Harry and Ryan complete the Starbucks by their promised date of November 30th. As an added incentive, the university will offer a $1000 bonus to complete the project within 28 days (November 28th) or a $5000 bonus to complete the project within 25 days (November 25th).

QUESTIONS

1. Calculate the Expected Time and Variance time for each activity. 2. Draw the PERT/CPM project network (use the drawing toolbar in Word or Excel). 3. Using the Expected Activity Times, you will need to calculate the critical path and the earliest times,

latest times, and slack values for each activity. Which activities are on the critical path? What is the time length of the critical path? What is the significance of the critical path?

4. Find the following probabilities with two decimal places (NOTE: only consider the critical path activities):

a. What is the probability that this project can be completed by November 30th (in 30 days)? b. What is the probability of earning the $1000 bonus? the $5000 bonus?

5. If the Warren brothers want to earn the bonus, what advice should you give them to make it more likely? HINT: think about which activities to “crash” – ie. where to place additional resources.

6. What date (how many days) should they start work so they can ensure that the project will be completed by November 25th with a 99% probability?

7. Why or why not is the critical path a good path choice to predict the probability of completion? What is the disadvantage of just using the critical path?

8. What other factors should be considered in your recommendation to make this Starbucks a safe environment for university students? (This is your opportunity to give your opinion from a management perspective.)

Instructions

1. Do everything in Word and Excel.

2. Draw project networks using Word or PowerPoint’s drawing features. Paste networks into your Word document. All networks should have arrows and start and end nodes; all activities should be labeled.

3. Upload both your Word document and your Excel file for calculations into Canvas.