Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates. • Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. • Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality work.

Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates. • Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. • Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality work.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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ASAP
Example: Undertaking by a contractor to implement a contracting for excavation works according to the scheme below, undertaking to complete the work within a period of 36 weeks with a probability of 99% between in light of the contractor's probability. The actual time period for the completion of the project within the PERT technology? Act. a b te u C.P 1-2 7 8. 6.33 1 1 *1,2 2-3 6. 9 6.33 0.66 0.443 *2 2-4 3 7 8. 6.5 0.83 .693 *1 2-5 4 6. 0.33 3-6 9. 10 8.66 0.66 0.443 *2 4-7 6. 8 11 8.166 0.83 .693 *1 5-7 4 7 5.83 0.5 6-8 7 10 7.16 0.83 .693 *2 7-8 4 8 7.5 0.83 .693 *1 8-9 4 7 9 6.83 0.83 .693 *1,2
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