Options for Accelerating Project Completion - Case Study Example

Project Management Question The evaluation of the impact of decreasing and increasing levels of resources through an appropriate criterion is the core purpose of the cost-time tradeoffs. To a project manager, the main duty is the maintenance of the project costs to a low minimal but, delivering within a short duration. The main focus in this is the reduction or crushing of the project activities found within the critical path while shortening the duration of the project (Martin & Karen 220). In the cost-time tradeoffs, the main issue to be considered is the overtime or change in the equipment so as to make the work proceed faster. This is because any additional work may likely lead to increased costs of operation. If all factors are held constant, there should be no consideration for the increase in the productivity since the increase will likely lead to a decrease in the profits. Consequently, since the indirect costs are accrued daily on the project but, are fixed, the possibilities would be that of increasing the costs of certain specific projects while at the same time decreasing the project time. The decrease in project duration of a specific activity results in an overall decrease in the duration for the whole project hence, a decrease in the total overheads (Meredith & Samuel 204). Another related issue with the tradeoffs is the determination of activities to be crashed for the enabling of maximum overall job profits. Therefore, the cost-time tradeoffs will enhance the costs of specific activities in the project while reducing the overall cost for the project (Nagarajan 105). Question 2: Options for accelerating project completion There are several options that can be available to the project manager for the enhancement of the completion of the intended project. These include addition of extra resources into the project, outsourcing for the project work, scheduling of overtime for the project and the establishment of a core project team to look over the project’s completion. Other options for the acceleration are conduction the project twice (repeated project), faster and correctly than the first case (Gray & Erik 324). However, these options may only apply when the resources for the project are not constrained. If the resources are constrained, then the options available would be fast-tracking of the project to hasten its completion, development and adoption of a critical chain for the completion of the project, reduction of the scope of the project and the compromising of the quality of the project though a faster conduct for as long as it is completed (Gido & James 130). In the first scenario, a project manger may enhance completion of a project through the addition of resources. While this will probably lead to augmented costs to the project, it will increase the rate at which the project is delivered thus, a reduction in the time of the project. Activities that can be done in regard to this include employment or hiring of additional staff and purchasing of additional equipment to carry out the tasks. In the second scenario, a project manger may schedule the work involved in the project to entail workers doing overtime. In this regard, the extension in work time will hasten the completion of the project but at an increased cost of maintenance of workers in overtime shifts (Haynes 44). The project manage can also enhance the completion of the project through outsourcing of the project either in terms of outsourcing other materials and laborers from other companies or giving a fraction or the entire project to a different company to carry out. This, just like the former process will reduce the project duration and enhance faster completion of the project but, at a higher cost to the project (Morris 98). Finally, the project manager may enhance the completion of the project through the establishment of a core project team which will be tasked to oversee the stages of the project to its finishing point. In this, the team has to put more efforts to be able to see that the project is delivered within the stipulated timeframe or a much shorter duration. The acceleration will also entail the project team holistic approach to the core aspects of the project which when adhered to will enable quick delivery of the project goals. However, in the process of determination of the best technique to apply in the acceleration of the project, the project manager should consider a technique that is goal-based such as through the critical path method (CPM). The application of this method is appropriate since it ensures that a project is realistic in its achievements, aligns to the expectations of the stakeholders and is successfully executed. As such, an aggressive schedule for the acceleration of the project will not be achievable, and a conservative schedule will also not satisfy the desires of the stakeholders, especially when the project is finished much earlier than anticipated. As such, a more moderate schedule will be more favorable. The CPM will also enhance the making of informed project decisions as to the activities to be undertaken (Wellington 75). Question 3: Describe the difference between types of project costs In the process of analyzing a particular project, there are different costs that are involved. These include project indirect overhead costs, material costs and burden costs. In the prospect of indirect overhead costs, the project manager should identify costs to raw materials and costs to labor all should be included in the overheads costs. Such costs are essential to the completion of the project in the sense that the project manager will need to determine the optimal level of the costs to be used in the project. These costs, however, should not be too high as the same will exceed the prospects of doing the project or even need to do the same (Sears, Glenn & Richard 153). The project direct costs e.g. material costs as well as the sunk costs should include the costs of obtaining raw materials to be used in the completion of the project in a more efficient but, effective manner. These costs are essential in that when a project is crashed, the direct costs increases. In this, allocations should be done based on the future returns expected from the project. On the same note, sunk costs for the project cannot be ignored even though they are incurred in the planning stage for the investment. This can be easily determined by the evaluation of past projects, and their financial and economic analyses. Sunk costs are also essential since they will determine whether the benefits for the establishment of the new project will outweigh the general costs (Chin 325). Question 4: a. Act Normal Time Maximum Crash Time Crash Time Normal Cost Crash Cost (Slope) A 3 1 2 50 20 B 5 2 3 60 60 C 3 1 2 70 40 D 10 0 10 50 0 E 6 3 3 100 50 F 7 3 4 90 100 G 5 1 4 50 70 $470 From the table above, there is a consideration for the shortening of the activities with smallest increase in cost per unit of time. From the information provided and the graph above, the first initial costs are shown. b. As such the final derivation for the costs may be as revealed in the schedule underneath. This schedule also shows the optimum amount as $840. This table also shows a summary of the costs by duration. Project Duration Direct Costs Indirect Costs Total Costs = Direct + Indirect 19 470 400 870 18 490 350 840 17 540 300 840 16 610 250 860 From this schedule and that shown above, the following cost-time graph can be generated which will entail both the total costs, indirect costs and the direct costs (Berkun 175). From this graph, the optimum cost-time point is at 17 units, and at a cost of $840. Works Cited Berkun, Scott. Making Things Happen: Mastering Project Management. Sebastopol: O'Reilly Media, Inc, 2008. Internet resource. Chin, Gary. Agile Project Management: How to Succeed in the Face of Changing Project Requirements. New York ; Toronto: AMACOM, 2004. Print. Gido, Jack, and James P. Clements. Successful Project Management. Mason, OH: South-Western Cengage Learning, 2009. Print. Gray, Clifford F, and Erik W. Larson. Project Management: The Managerial Process. Boston: McGraw-Hill/Irwin, 2008. Print. Haynes, Marion E. Project Management: Practical Tools for Success. Menlo Park, Calif: Crisp Learning, 2002. Internet resource. Martin, Paula K, and Karen Tate. Getting Started in Project Management. New York: Wiley, 2001. Internet resource. Meredith, Jack R, and Samuel J. Mantel. Project Management: A Managerial Approach. Hoboken, NJ: Wiley, 2012. Print. Morris, Peter W. G. Reconstructing Project Management. Chicester: John Wiley & Sons, 2013. Internet resource. Nagarajan, K. Project Management. New Delhi: New Age International, 2005. Print. Sears, S K, Glenn A. Sears, and Richard H. Clough. Construction Project Management: A Practical Guide to Field Construction Management. New York: John Wiley & Sons, Inc, 2010. Internet resource. Wellington, Patricia. Effective People Management. London: Kogan Page, 2011. Print. Read More