Business Question

Project Management Principles:, DNSC6261, Spring 2024Instructor: Dr. Homayon Khamooshi
Group Semester Assignment (GSA): Case Study: VA Condos
This assignment is worth 20% of your summative assessment for the course or 200/1000.
Please pay close attention:
• Answer all the questions within a business report. In your report, make sure not only all the
questions are answered and addressed explicitly but also critical evaluation of the situation and
the analysis method used to answer these questions are addressed.
• This is a group assignment, so you need to make a statement about the contribution of each
team member and sign that all the team members contributed equally(integrity statement).
• One submission per team in pdf format.
• Please use the following name convention: Group X-GSA-Last name of the person submitting
the report on behalf of the group.
• You are required to use no more than 10 pages for the report (excluding appendix)
This assignment is due on 28th of April 2024.
CASE 1: VA Condos
Clark Construction is building a set of new condominiums in the Virginia Beach. The project
consists of eighteen buildings, each housing twelve condominiums. Each building will border the
Virginia Beach Golf Course designed by J. M. Architects. The minimum price for a condominium unit
is $300,000, and buyers expect a high-quality project. Response to the initial promotion was so great
that CLARK Construction pre-sold all 216 units based solely on an architect’s conception and
schematic plans of the project. One reason for the quick sell-out may have been the -YOU CAN MOVE
IN BY OCTOBER- campaign. As part of this campaign, CLARK promised rebates of $20,000 cash
to all 216 buyers if all the facilities, buildings, and other amenities were not completed by October 15.
As of mid-January, the project is well underway. The following PERT/CPM network details the
precedence for the activities of the tasks remaining to be completed in the project. R and T will be
subcontracted.
Three-time estimates (in days) for each of the other activities needed for each condo have been
determined and are given in the following table (Note: all the condos will be constructed concurrently)
You are required to use a full day as the smallest unit for scheduling the activities:
ACTIVITY CODE AND DESCRIPTION
Estimated Activity Duration (a, m, b) Dependencies
optimistic
most likely
pessimistic
days
A1. Land measurements
5
8
11
–
B2. Layout of measurement stakes
7
12
17
A
C3. Analysis of surrounding environment
10
17
24
A
D4. Building of foundation
12
22
32
B
E5. Approval of construction papers
6
13
20
C
F6. Layout of building framework
11
15
19
C
G7. Gas line instalment
9
18
27
C
H8. Electrical wiring
25
27
29
B, G
I9. Interior plumbing
18
20
22
E, B
J10. Wall construction
12
25
38
D, H
K11. Insulation
10
23
36
I, F
L12. Drywall
15
20
25
F, I
M13. Roofing
3
10
17
K, J
N14. Restaurant construction
25
40
55
G
O15. Swimming pool
9
20
31
J, K, L, G
P16. Fencing
6
10
14
J, K, L, G
Q17. Telephone lines
12
22
32
M, O
R18. Completion of underground
S19. Snack bar
M, O
10
20
30
T20. Stream building
N
N
U.21 Outside lighting
8
12
16
P, S
V22. Parking lots
3
5
7
P, S, Q,
W23. Drainage construction
5
10
15
P, S, Q, T
X24. Safety inspection
9
15
21
U, W
Y25. Landscaping
6
24
42
R, V
Z26. Final permits/releases
10
15
20
X, Y
Activity R, the underground sewer activity, consists of installing pipes and connections to join
all eighteen buildings to the main city sewer system. CLARK Construction selected the Comey
Construction alternative for this activity.
Comey Construction has submitted a bid of $300,000 for the design and construction of the
required sewer project. It estimates a most likely completion time of 25 days, with a difference of
plus or minus three days for the optimistic and pessimistic time estimates.
Activity T, the stream building activity, involves building a stream that runs throughout the project
and connects the western and eastern boundaries. CLARK has selected the Lakeport Inc. alternative:
CLARK has received a bid of $400,000 from Lakeport, Inc. to design and build a meandering
stream that will most likely be finished in 30 days, give or take five days.
Each activity is estimated to need 3 people with a cost of $100/day per person. The indirect cost
of the project is estimated to be $3500/day. Assume that today is January 14, and that all the work
is to be done on a five-day-per-week basis including holiday periods. Prepare a report for this
project within which you address the followings:
•
A1-Develop tentative (preliminary) target start and completion dates for each activity. A
Gantt Chart, list of critical activities, and a tabular schedule is required.
•
A2-Assuming unlimited resources optimize the schedule.
•
B-Give a date by which you are 90 and 95% and 99% sure that the entire project will be
completed based on your preliminary schedule. Complete analysis and discussion are
needed.
•
C-Recommend whether to spend $25,000 for additional legal assistance that would reduce
the most likely time to attain the final permits and releases (activity Z) to 8-10-12
(optimistic-most likely-Pessimistic) days. Discuss.
•
D-Develop a budget for the project based on your recommended plan. And provide any
financial analysis you can provide.
•
Note: The cost of many of the resources needed and the material required are not included
in this case study.
Introduction:
In this report, we outline the strategic approach Clark Construction will take as project managers to
ensure the timely completion of eighteen condominium buildings in Virginia Beach, each comprising
twelve units. All 216 units have been pre-sold based on initial architectural designs, with buyers
anticipating top-notch quality. To fulfil the commitment made under the “You Can Move in By
October” initiative, which promises a $20,000 rebate to each buyer if all facilities, structures, and
amenities are not finished by October 15, we present a detailed execution plan.
Executive Summary:
In this executive summary, we aim to address the key inquiries presented to us as project managers,
providing comprehensive insights supported by relevant graphs and charts:
Section A:
We present essential project management tools including the Task Sheet, Gantt Chart, Network
Diagram, and a list of scheduled critical activities. This section delineates start and end dates, duration
calculations, and the sequential flow of project tasks. We delve into dependencies and subcontracted
activities to ensure clarity in project execution.
Section B:
Here, we conduct a meticulous analysis to ascertain the probability of project completion by specific
dates. Utilizing standard deviation, variance of the critical path, and z-scores, we offer estimations for
reaching 90%, 95%, and 99% certainty levels regarding project completion.
Section C:
Our recommendation regarding the allocation of $25,000 for additional legal support, aimed at
expediting the acquisition of final permits and releases, is outlined here. Through thorough calculation
and analysis, we decide on this potential investment.
Section D:
This segment provides a comprehensive breakdown of direct costs, indirect costs, revenue projections,
and potential rebate expenditures. We include a financial analysis to navigate potential contingencies
and outline expected profit values under various scenarios, ensuring sound decision-making in project
management.
A1-Develop tentative (preliminary) target start and completion dates for each activity. A Gantt
Chart, list of critical activities, and a tabular schedule is required.
1. Task Sheet: This document outlines the individual activities necessary to accomplish the
project’s objectives.
2. Duration: Each task’s required time for completion is detailed, contributing to the total project
duration of 181 days.
3. Start and End Dates: Clear delineation of the commencement and conclusion dates for each
task, spanning from January 16th, 2023, to September 23rd, 2023.
4. Dependencies: Relationships between tasks are elucidated, indicating which activities are
reliant on others for completion and which can proceed concurrently. These dependencies are
represented through predecessors, illustrating the sequence of tasks.
5. Critical Activities: Critical activities, denoted in red within the Gantt chart, signify tasks
crucial for maintaining the project’s timeline. Ensuring the timely completion of these
activities is paramount for meeting project deadlines.
Network Diagram:
The network diagram serves as a graphical depiction of Clark Construction’s project schedule,
illustrating task relationships and dependencies. This visual representation highlights the sequential
flow of activities necessary for project completion, along with their respective start and end dates. Its
primary function is to offer a lucid overview of the project timeline, aiding in identifying the critical
path—the sequence of tasks crucial for meeting the project’s scheduled timeframe.
Critical Activities:
Identifying critical tasks is pivotal in directing our focus and resources towards the most essential
aspects of project success. Vigilant monitoring of these activities enables early detection of potential
delays or challenges, facilitating prompt corrective measures to maintain project momentum. The
critical path, derived from meticulous analysis of task dependencies, delineates the longest sequence
of activities within the project schedule, as depicted below.
LIST OF CRITICAL ACTIVITIES
A1 – Land measurements
C3 – Analysis of surrounding environment
G7 – Gas line installment
H8 – Electrical wiring
J10 – Wall construction
O15 – Swimming pool
Q17 – Telephone lines
V22 – Parking lots
Y25 – Landscaping
Z26 – Final permits/releases
TOTAL
MEAN
8
17
18
27
25
20
22
5
24
15
181
VARIANCE STD.DEV.
1.00
1.00
5.44
2.33
9.00
3.00
0.44
0.67
18.78
4.33
13.44
3.67
11.11
3.33
0.44
0.67
36.00
6.00
2.78
1.67
98.44
9.92
B-Give a date by which you are 90 and 95% and 99% sure that the entire project will be
completed based on your preliminary schedule. Complete analysis and discussion are needed.
The initial project schedule outlines the critical path spanning from A to C, then to B; followed by G
to D, and H to J, K, and L. Additionally, it encompasses G to M, O to P, S, and Q to R, as well as V to
X, and finally, Y. Each critical path activity’s average duration provides insights into variance and
standard deviation, as detailed in the accompanying document.
Activities
A1. Land measurements
B2. Layout of measurement stakes
C3. Analysis of surrounding environment
D4. Building of foundation
E5. Approval of construction papers
F6. Layout of building framework
G7. Gas line instalment
H8. Electrical wiring
I9. Interior plumbing
J10. Wall construction
K11. Insulation
L12. Drywall
M13. Roofing
N14. Restaurant construction
O15. Swimming pool
P16. Fencing
Q17. Telephone lines
R18. Completion of underground
S19. Snack bar
T20. Stream building
U21. Outside lighting
V22. Parking lots
W23. Drainage construction
X24. Safety inspection
Y25. Landscaping
Z26. Final permits/releases
O
M
P
Mean
(te)
5
7
10
12
6
11
9
25
18
12
10
15
3
25
9
6
12
22
10
25
8
3
5
9
6
10
8
12
17
22
13
15
18
27
20
25
23
20
10
40
20
10
22
25
20
30
12
5
10
15
24
15
11
17
24
32
20
19
27
29
22
38
36
25
17
55
31
14
32
28
30
35
16
7
15
21
42
20
8
12
17
22
13
15
18
27
20
25
23
20
10
40
20
10
22
25
20
30
12
5
10
15
24
15
Variance
1
2.777778
5.444444
11.11111
5.444444
1.777778
9
0.444444
0.444444
18.77778
18.77778
2.777778
5.444444
25
13.44444
1.777778
11.11111
1
11.11111
2.777778
1.777778
0.444444
2.777778
4
36
2.777778
Based on the total variance of 98.44 and a standard deviation of 9.92, we utilize the normal
distribution to determine the likelihood of completing the project by specific dates, considering an
expected completion time of 181 days.
=NORM.INV (Probability, Mean, Standard Deviation)
Standard
deviation
1
1.6666667
2.3333333
3.3333333
2.3333333
1.3333333
3
0.6666667
0.6666667
4.3333333
4.3333333
1.6666667
2.3333333
5
3.6666667
1.3333333
3.3333333
1
3.3333333
1.6666667
1.3333333
0.6666667
1.6666667
2
6
1.6666667
90% Confidence Level
0.9 193.7154 =NORM.INV(B30,$C$35,$E$35) 10/10/2024
=NORM.INV (0.9,181,9.92)
=193.7 Days ~ 194 Days
95% Confidence Level
0.95
197.3201 =NORM.INV(B31,$C$35,$E$35)
10/16/2024
=NORM.INV (0.95,181,9.92)
=197.3 Days ~ 197 Days
99% Confidence Level
0.99 204.0818 =NORM.INV(B32,$C$35,$E$35)
=NORM.INV (0.99,181,9.92)
=204.08 Days ~ 204 Days
10/24/2024