MAN 4504 – Homework 3 Spring, 2017

There are 6 questions worth 50 points and two bonus questions (worth an additional 5 more – no penalty if answered incorrectly).

Date Homework Assignment was made available:  Saturday April 8th

HW 3 Due Date:  11:59 p.m. on Monday, May 1st  

1. Using the traditional method of CPM and the diagram shown below.  Different node colors are different resources.  Duration times (in days) for each activity are “padded” (uncut). 

a)     Identify the various paths through the network? [+2 points]

b)     Layout the network in a Gantt Chart format – drawn to scale (use the Excel template and explanation about how to stretch or shrink the size of the activities) provided.  [+2 pts.]

c)     What activities are on the critical path? [+1 pt.]

d)    

What is the expected total lead time of the project? [+2 pts.] 

1. Using CCPM and the project network from question 1 to complete and answer the questions below:

a)     Correctly layout the project network that should be used to help determine the Critical Chain TO SCALE and WITHOUT inserting the buffers.  Use the Excel template provided to help you do so.  Identify the Critical Chain.  [+2 pts.] 

b)     What is the Critical Chain duration time for Activity D?  [+1 pt.] 

c)     Identify between which two activities each Feeding Buffer should be located (or show them inserted as properly-sized blocks into another copy of the Gantt Chart) and specify how large should each one be?  [+3 pts.] 

d)     What resource buffers are needed and where should they be positioned?  [+2 pts.]

e)     How big should be Project buffer be? [+1 pt.], and what is the total project lead time? [+1 pt.]

1. It is common for activities in projects to run late.  What should be DONE when this happens differs between traditional Critical Path Method (CPM) and TOC’s Critical Chain Project Management (CCPM).   

The upper-most of the two diagrams that follow is a typical CPM Gantt Chart schedule/layout.   The lower of the two diagrams is a typical CCPM schedule (with resource, feeding and project buffers included).

a)     What is the scheduled START date for CPM (upper chart) activity G20?  What is the scheduled FINISH date for CPM (upper chart) activity E20?  Explain both of your answers.  [+2 pts] 

b)     With the traditional CPM schedule (upper chart): the project has been underway for 34 days (it is the start of Day 35).   Activity B20 was delayed (thus, it didn’t start until Day 11) AND that it took 2 days longer than planned.  The Yellow resource working Activity E20 says she is only halfway through with that activity.

                           i.         What specific information does this tell you about your project (explain why you’re making this claim)?  [1 pt.]

                         ii.         What, if you know NOTHING about CCPM and given that you’ve been exposed to MAN 3506 content re: Project Management, do project managers in your shoes have to now do?  [1 pt.]

c)     With TOC’s CCPM schedule (lower chart), what is the scheduled start date for activity E10? [1 pt.]  What are all the things that happen if A6 takes twice as long as planned?  [2 pts]

d)     With the TOC-based CCPM schedule (lower chart): the project has been underway for 20 days (it is the start of Day 21).  You know that Activities B10 and C10 EACH took 2 days longer than planned and you’ve just been given the news by the yellow resource working activity E10 that she’s still going to need 8 more days to finish!  Is your project’s due date in jeopardy?  Explain how you would know or not.  [2 pts.]

1. Regarding “the Beer Game”. 

a)     Insert a copy of your completed “beer game” result. (+.5 pt.)   Identify which “link” in the Beer Game’s supply chain you attempted (or supported for those in the live classes) (+.5 pt.) and describe the problems that you experienced in the first run of “The Beer Game” simulation you had to do.  [+2 pt.]

b)     State whether you agree with the following assertion or not and explain/defend your answer.  “The key to the improve results for the lecture’s Run 2 of the Beer Game was that each link was provided with an accurate forecast of demand.”   (+2 pts.).

c)     In the second ‘run’ of the Beer Game:

                             i.     Many people state that a needed improvement is that there be “improved communication”.  What specifically should be done to “improve communication”? [+1 pt.]   How would this be done by companies in reality? [+1 pt.]

                            ii.     You are the distributor in the Beer Game with 20 units in your facility.  You have 10 units ready to be delivered and 15 units in the pipeline to BE delivered in another week.  You know that the customer this week has bought 25 cases of beer.   How much should you order once you meet demand (explain how to derived that amount)? [+1 pt.]

                          iii.     A “buffer” (one part of the solution for “the Beer Game”) is said to act as a “shock absorber”.  Explain how/why that analogy is made and how this demonstrates a key point regarding variation and statistics made on Handout 4 Slide 23.  [+2 pts.] 

1. You manage inventory for a “Super Center” take-out deli department that is open 7 days a week.  Your best seller is the fried chicken prepared in the store.  You order every four days – and it takes the vendor three days to get your order to the store.  Historically, you’ve never sold more than 3 cases of chicken parts per day.  Applying the principles of continuous replenishment – and showing/explaining your reasoning:

a)     What is your time to be reliably replenished? [+3 pts.]

b)     What would the appropriate initial buffer size be with the data?  [+3 pts.]

Use the following scenario for question 6:

1. Doggie Haven produces two models of outdoor pens: Deluxe and Super Duper requiring the work center processing times and materials at the costs shown in the process diagram at the top of the next page.  The price charged for a Deluxe model is $80 (demand is for 50 units per week).  The price charged for a Super Duper model is $100 (and demand is for 60 units per week).  Each work center is staffed by a worker who works only at that workstation and is paid $16 per hour.  The plant operates 40 hours per week with no overtime.  Overhead costs are $2000 per week.  Answer each of the following questions:

a)     Using the traditional method, which bases decisions solely on a product’s contribution to profits and overhead, what is the optimal product mix? [2 pts.]

b)     What is the overall profitability of the product mix calculated in item a above? [2 pts.]

c)     Using the bottleneck-based method, what is the optimal product mix? [2 pts.]

d)     What is the overall profitability of the product mix calculated in item c above? [2 pts.]

BONUS QUESTION(S):  Answering these questions correctly or well will earn you a maximum of 5 bonus points.  There are no deductions if you do poorly, the “base” used to calculate your grade for this assignment remains at 50 but any bonus question points you obtain will increase your points eared (the numerator) into which 50 is divided.

Bonus Question 1:

A project you’ve scheduled using Critical Chain Project Management (CCPM) has 100 critical chain days planned.  It is now day 30 and you have 20 days left in your project buffer. Do you need to intervene or not?  Explain WHY you answered as you did using the “fever chart” provided below.  [+2 pts.]

BQ 2:  (Build a simple two-column table that) contrasts CCPM w/ traditional PERT/CPM, or traditional inventory vs. Pull Distribution (Continuous Replenishment). CAUTION:  do NOT simply do a cut/paste from the internet… your answer MUST show me that you understand what is written.  And definitely, if you DO some research and find some neat and convenient table or source, be sure to attribute (cite) it properly…  That still doesn’t absolve you of ensuring that your answer explains the points of contrast of the table or comparison you cite… [+3 pts.]

• CAUTION:  do NOT simply do a cut/paste from the internet… your answer MUST show me that you understand what is written.   If you DO some research and find some neat and convenient table or source that does the above [you must STILL put sufficient explanation that indicates you know what you’ve duplicated  AND be sure to attribute (cite) it properly…  Failure to do so will result in no credit for item a above.