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Case Study: Southwestern University Stadium Construction. After six months of study, much political arm wrestling, and some serious financial...

This question was answered on May 28, 2010. View the Answer
Case Study: Southwestern University Stadium Construction. After six months of study, much political arm wrestling, and some serious financial analysis, Dr. Martin Starr, president of Southwestern University, had reached a decision. To the delight
ofits students,and to the disappointment ofits athletic boosters, SWU would not be relocating to a new football site but would expand the capacity at its on-campus stadium. Adding 21,000 seats, including dozens of luxury skyboxes, would not please everyone. The influential football coach, Bo Pitterno,had long argued the need for a first-class stadium,one with built-in dormitory rooms for his players and a palatial office appropriate for the coach of a future NCAA champion team. But the decision was made, and everyone, including the coach,would learn to live with it. The job now was to get construction going immediately after the 2002 season ended.This would allow exactly 270 days until the 2003 season opening game.The contractor,Hill Construction (Bob Hill being an alumnus, of course), signed the contract. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in the eye."I guarantee the team will be able to take the field on schedule next year,"he said with a sense of confidence."I sure hope so,"replied Starr."The contract penalty of$10,000 per day for running late is nothing compared to what Coach Pitterno will do to you ifour opening game with Penn State is delayed or cancelled." Hill,sweating slightly,did not respond.In football-crazy Texas,Hill Construction would be mudifthe 270-day target were missed. Back in his office,Hill again reviewed the data.(See Table 13.11 and note that optimistic time estimates can be used as crash times.) He then gathered his foremen."People,if we're not 75% sure we'll finish this stadium in less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days-also for 240 days.I want to be early,not just on time!"

Discussion Questions:
1. Develop a network drawing for Hill Construction and determine the critical path. How long is the project expected to take?

2. What is the probability of finishing in 270 days?

3. If it were necessary to crash to 250 or 240 days,how would Hill do so, and at what costs? As noted in the case, assume that optimistic time estimates can be used as crash times

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This question was asked on May 28, 2010 and answered on May 28, 2010.

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