PMP575_Team1_Case_sharonConstructionCompany_Final

PMP575_Team1_Case_sharonConstructionCompany_Final - Sharon...

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Sharon Construction Corporation Nirali Patel John Wenc Daniel Sosa William Haselberger
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Question no.1 Analyze the five proposals and make recommendations based on expected cost.
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About the Company: Sharon Construction Company is awarded the contract of 20,000 seat stadium Construction must start by February 15 and completed within one year Contract states the penalty of $ 15000 per week of delay beyond February 15 of next year
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Some Aspects to be taken into Consideration: Labor agreements expires on Nov 30 Past Experiences indicates 50-50 chances of the strike Perspective length of the strike reveals that – - 70% chances that strike last 8 weeks - 30% chances that strike last 12 weeks Colder December might be expected, which was not consider during earlier estimation, - If so concrete pouring will cause cost of 500$/week for heating In case of any delay, Overhead expense of $500/ week would be incurred
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Scenarios that could happen based on given Case: 1)There will be no Strike and no colder December 2)The weather is cold in December and no Strike 3)The Strike occurs and no cold December with two sub-scenario - a) 70% chance strike last 8 weeks b) 30 % chance strike last 12 weeks 4) Both strike (obviously with two sub scenarios) occurs and weather is colder in December
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Critical Path according to Appendix:
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Proposal 1: Expedite the pouring of the seat gallery supports. This would cost $20,000 and cut the duration of the activity to six weeks.
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Pros of following Proposal 1: The Critical Path does not change. The project would complete 6 weeks ahead of schedule. Other tasks can be done in parallel. When the task is complete the project will be completed. It will buy you 6 weeks for any other unexpected delays. (Penalty is $15,000 per week if project is delayed)
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Critical Path for proposal 1:
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Cons of following Proposal 1: If December is cold as predicted you will be spending the $20,000 for crashing and you will be also adding additional cost for special equipment. If the union goes on strike, the $20,000
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This note was uploaded on 11/08/2010 for the course MBA PMP 575 taught by Professor Drack during the Spring '10 term at RMU.

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PMP575_Team1_Case_sharonConstructionCompany_Final - Sharon...

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