What should Hill Construction do to ensure that the construction of the first class stadium of Southwestern university will not exceed 270 days? II. OBJECTIVES: General: To come up with a plan of action that will guarantee the completion of the stadium on or before the start of 2010 opening game Specific: To come up with an alternative course of action that will not Just meet the required period, but will also take Into consideration the total costs of the construction and will also satisfy the preference of Hill Construction regarding the Mullen probability completion.
Ill. POINT OF VIEW: The case was analyzed from the point of view of Bob Hill of Hill Construction. IV. AREAS OF CONSIDERATION: In analyzing the case, the following factors and concepts have been identified by the researchers to be significant: Completion time. Being the major concern of Southwestern University, Hill Construction Is given a maximum of 270 days to build the stadium. Total cost. Total cost that Southwestern University will Incur In this project. It also includes the cost of crashing activities. Completion probability.
The computed number of possible days of completion gives as estimation on the probability that the set deadline of the project will be met. Another factor to be considered is the preference of Hill for an at least 75% completion probability of the project. Southwestern university (SSW) has already established Its decision to construct Its on-campus stadium In order to address the problem of increasing number of audiences at every football game. The administrators of SSW contracted Bob Hill of Bill Construction to execute the said project.
The case has provided data and assumptions that are essential in the determination of the problem stated above. The given information was analyzed using various quantitative analysis tools and concepts. In order to determine the expected completion date of the project, the concept of network modeling Is used. Figure 1. The Network Model of Construction Project of SSW Stadium for Hill Construction After the network model has been established, the probability of meeting the target date of completion which is 270 says is computed.
Probability = Target Completion Time – Expected Completion Time Project’s Standard Deviation Using the formula above, the probability of that the project will be finished in 270 days 71 . 23%. Probability = 270 days – 260 days = 0. 56 71 . 23* 17. 87 Although the probability is already high, the Bob Hill aims for higher than 75% probability of completion. They even consider crashing activities Just to lower the number of days required to finish the project. So, the probabilities of having a target date of 250 and 240 days have also been computed. . When expected completion date is 250 days: b.
When expected completion date is 240 days: Probability = 270 days – 240 days = 1. 68 95. 35% In both cases, the probability becomes higher which implies higher possibility that the project will be finished before the deadline. However, the expected completion date becomes lower due to the crashing of activities. This method incurs the firm additional cost. VI. ALTERNATIVE COURSES OF ACTION There are three alternative courses of action which Hill Construction could choose room in deciding what to do in order to ensure that the completion of the project will not exceed to 270 days.
Alternative 1: Stick with the computed expected completion time which is 260 days. Pros: -no additional cost -provides 10 days allowance before the start of the next season Cons: -has the lowest probability of completion among the all other options -conflicts with Hill’s target of at least 75% of probability that the deadline will be met Alternative 2: Crash activities which are included in the critical path to lower the expected completion time to 250 days. Sees risky because of higher probability -satisfies Bill’s preference of at least 75% probability of completion -provides 20 days allowance before start of the next season Con: -additional cost to the firm Alternative 3: Crash activities which are included in the critical path to lower the expected completion time to 240 days. Pros: -provides the highest probability of completion -least risky among all other options – provides 30 days allowance before start of the next season Con: -gives the firm the highest additional cost among the alternatives.
In order to ensure that the construction of the first-class stadium of Southwestern University will not exceed 270 days, the group recommends to Hill Construction to choose Alternative 2. Although Alternative 2 does not provide the highest probability of completion, the group fully believes that it is the best decision the Construction Company could choose. It is ideal because in terms of allowance, it gives 20 days allowance to the firm before the set target date and expected target of completion. It also satisfies the preference of Hill for an at least 75 % completion probability of the project.