Quantitative Techniques

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.