Transcript
GROUP INTRODUCTION
Sana Riaz (0185)
Saira Khalid (0201)
Aymen Javed (0020)
Hifza Azeem (0075)
Company : S and S Limited
Business : Textile Firm
Place : Karachi
DECISION MAKING:
Mr. A is the owner of this company whose business is in Karachi
.He wants to expand his business in the near future. He wants to
decide that whether he should :
Alternatives Good Market Bad market
Small building 40,000 -10,000
Large building 60,000 -20,000
Do Nothing 0 0
Probabilities 55% 45%
Table (without conducting
study):
Results Good Market Bad Market
Favorable results 72% 28%
Unfavorable results 25% 75%
Chances of Favorable results: 45%
Chances of unfavorable results: 55%
If we conduct study:
DECISION:
What alternative he should choose1. Small Building
2. Large Building
3. No
Whether he should conduct study or not
Survey charges =5000
According to Decision Trees we decided not to conduct
study and our decision is :
End Result of Decision Tree:
Construction of a Large Building
DECISION TREE
START OF PROJECT OF EXTENSION
OF A LARGE BUILDING
EXTENSION OF BUILDING
Activity Description
A Site Clearing -
B General Excavation -
C Grading General Areas A
D Excavation of utility trenches A
E Placing from work & reinforce concrete B,C
F Installing Sewer Lines C,E
G Installing Electricity Connections D,E
H Pouring Concrete F,G
I Installation of Machinery G,H
Activities Estimated Time Predecessors Budgeted Cost
A 2 - 20000
B 5 - 40000
C 3 A 35000
D 6 A 15000
E 4 B,C 60000
F 2 C,E 45000
G 3 D,E 80000
H 2 G,F 50000
I 4 G,H 30000
PROJECT NETWORK AND
SCHEDULING:
Activity t EST EFT LST LFT SLACK CRITIC
AL
A 2 0 2 0 2 0 YES
B 5 0 5 0 5 0 YES
C 3 2 5 2 5 0 YES
D 6 2 8 3 9 1 NO
E 4 5 9 5 9 0 YES
F 2 9 11 10 12 1 NO
G 3 9 12 9 12 0 YES
H 2 12 14 12 14 0 YES
I 4 14 18 14 18 0 YES
Critical Paths: A -B-C-E-G-H-I
Project Length: 18 Weeks
BUDGETING
BUDGETING
Activities t Budgeted Cost Weekly cost
A 2 20000 10000
B 5 40000 8000
C 3 35000 11667
D 6 15000 2500
E 4 60000 15000
F 2 45000 22500
G 3 80000 26667
H 2 50000 25000
I 4 30000 7500
CONTROLLING
CONTROLLING:
Activity Total
Budgetin
g Cost
%age
Complet
ed
Value of
Work
Completed
Actual
Cost
Activity
Difference
A 20000 100 20000 18000 -2000
B 40000 100 40000 38000 -2000
C 35000 100 35000 35000 0
D 15000 30 4500 4800 300
E 50000 20 12000 11000 -1000
F 45000 20 9000 8000 -1000
G 80000 10 8000 8600 0
H 50000 0 0 0 0
I 30000 0 0 0 600
Total 128500 123400 -5100
CONTROLLING
Activity Difference = Actual Cost-Value of Work
Completed
= 123400-128500
= -5100
There is under run of 5100 means they are spending less than
they actually should spend For Example up to 7th week they
should had spent 137051 but they only spent 123400 which
also shows that cost is under run and our project is behind the
schedule.
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