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TABLE OF CONTENTS

1. Introduction --------------------------------------------------------------02 2. Action Plan for Building a Cell Phone Tower ----------------------02 3. Description of Activity --------------------------------------------------03 4. Gantt Chart ---------------------------------------------------------------04 5. Project Network (using Activity on Node-AON) ------------------05 6. Calculation of Critical path --------------------------------------------05 7. Slack calculation ---------------------------------------------------------05 8. Project scheduling (PERT analysis) ----------------------------------07 9. Cost/Time trade-off: Crashing ----------------------------------------09 10.Conclusion ----------------------------------------------------------------13

Building a Cell Phone Tower

1.1) Introduction:
Being a project management student we have been assigned to submit a project proposal on constructing a Cell Phone Tower within the given period of time and resources. As we know the goals of project management should be performance based, time savings and cost effective, our ultimate goal for this project will be the same. From the definition we know project is the part of an overall program. A program is an exceptionally large long range objective thats broken down into a set of projects. The purpose of this project is to provide sound network coverage in the selected zone. The vital characteristics of a perfect project are projects exits for limited amount of time, having a definite starting and ending date, getting an opportunity to bring together the talents and skills of a wide group of people and so on. We think our project fulfill the entire basic requirement for being a perfect project.

1.2) Action Plan for Building a Cell Phone Tower:

Activity ID A Activity Name Predecessors Start Time End Time Duration (Days) 4 Cost (In TK. ,000) 50

E F G

Finalize the tower sketch and design Selecting location and getting permission Collection of hardware and accessories Hire engineer, worker and manage electricity supply Constructing the base tower Assembling hardware Activating the tower

None

01/04/2013

04/04/2013

05/04/2013

09/04/2013

100

05/04/2013

11/04/2013

700

B, C

12/04/2013

14/04/2013

10

D D E, F

15/04/2013 15/04/2013 22/04/2013

21/04/2013 18/04/2013 23/04/2013

7 4 2

35 10 5

1.3) Description of each activity:

i) Finalize the tower sketch and design (A): The first activity of this project is to make a proper design of the tower. How much strong and tall the tower will be at the end of the day that will be focused by this final design. ii) Selecting location and getting permission (B): The second most important activity is selecting location and getting permission from the land/building authority. We have to choose the best location for this purpose. iii) Collection of hardware and accessories (C): After Selecting location and getting permission we have to concentrate on the collection of hardware and accessories that is server, Mobile Switching Center (MSC), transmitter, microwave antenna and other required raw materials. Here timing of delivery and quality of materials are very much important. iv) Hire engineer, worker and manage electricity supply (D): After assuring about the timing of delivery and quality of product, it is thought to be hired engineer, worker and manage electricity supply. Because this project is basically dependent on the efficient engineer, worker. v) Constructing the base tower (E): In this step, according to the final sketch and design of the tower, engineer and worker constructing the base tower. vi) Assembling the hardware (F): Now according to the final design of server, Mobile Switching Center (MSC), transmitter, microwave antenna will be assembled. vii) Activating the tower (G): This is the last step of our assigned project. After checking all the equipment and ensuring that the system is successfully connected with the main network we will activate the transmission of signal. Through this step our assigned project will be terminated.

1.4) Gantt chart:

The Gantt chart shows planned and actual progress for a number of tasks displayed against a horizontal time scale. It is an effective and easy-to-read method of indicating the actual current status for each set of tasks compared to the planned progress for each item of the set. But Gantt charts usually do not show technical dependencies.
GANTT CHART

DATE
03/04/2013 04/04/2013 05/04/2013 06/04/2013 09/04/2013 10/04/2013 11/04/2013 12/04/2013 13/04/2013 14/04/2013 15/04/2013 16/04/2013 17/04/2013 19/04/2013 20/04/2013 21/04/2013 22/04/2013 23/04/2013 07/04/2013 08/04/2013 18/04/2013

01/04/2013

A B C D E F G

02/04/2013

Activi ty ID

1.5) Project Network (Using Activity on Node-AON) (Figure:1):

Figure:1 1

B=5

E=7

Start

A=4

D=3

G=2

Finish

C=7

F=4

1.6) Calculation of Critical Path:

Critical path means the longest path that determines expected project duration. Longest path treated as the critical path. From the above project network, these are the probable path, i) ii) iii) iv) ABDEG= 4+5+3+7+2= 21 days ABDFG= 4+5+3+4+2= 18 days ACDEG= 4+7+3+7+2= 23 days ACDFG= 4+7+3+4+2= 20 days

From the above probable path, the longest path is ACDEG= 23 days. So ACDEG is the critical path of the project.

1.7) Slack Calculation:

Slack is the allowable slippage for path that is the difference of the length of path and the length of critical path. So normally slack means how many days can an activity be delayed without affecting project life. It is very easy to calculate slack that is late start time minus early start time or late finish time minus early finish time. That means

slack = LST - EST or LFT EFT. Also we know that the activities which have 0 slack are on critical path. From the above data and the following figure we can easily calculate the slack of each EFT EST activity; those are given in following table: (Figure: 2)

Figure: 2

4 B=5

14 E=7

21

LST

LFT

6 0 Start 0 A=4 4

11 11 D=3 14

14

21 21 G=2 23 Finish 23

4 4 C=7 11

11

14 14 F=4 18

21

11

17

21

Activity A B C D E F G

LST-EST 0-0=0 6-4=2 4-4=0 11-11=0 14-14=0 17-14=3 21-21=0

LFT-EFT 4-4=0 11-9=2 11-11=0 14-14=0 21-21=0 21-18=3 23-23=0

Slack 0 2 0 0 0 3 0

Critical Path* * * * * *

From the earlier calculation, we observed that all activity of the critical path having the zero slack. Activity B and F having slack 2 & 3 that means B and F can delay by 2 or 3 days without hampering the project life path.

1.8)

Project Scheduling (PERT Analysis):

PERT, Elaboration form is Program Evaluation and Review Technique. The critical path analysis is well suited to projects that are repetitive in nature or involve activities whose duration times can be estimated with relative certainty. Some other projects, in practice, have activities whose duration times may not be known with much degree certainty. A method that designed to treat activity duration times as random variables is called Program Evaluation Review Technique (PERT).

Activity times in PERT:

Each activitys duration time is considered to be a random variable. PERT assumes that this random variable has a beta probability density. There may be in three situations. The notation of those situations is given below: O= the optimistic time M= the most likely P= the pessimistic time We know the formula of calculating Mean,
Te= To+4Tm+Tp
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Where, Te= Expected time To= Optimistic time Tm= Most likely time Tp= Pessimistic time

We also know that the formula of Variance,

(Tp-To)
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2

Where,

2= Variance To= Optimistic time Tp= Pessimistic time

Activity ID A B C D E F G

Predecessors None A A B, C D D E,F

O (To) 2 3 4 1 4 2 1

M (Tm) 3 4 6 3 6 3 2

P (Tp) 5 6 9 4 9 5 3

Mean 3.17 4.17 6.17 2.83 6.17 3.17 2

Variance 2 0.25 0.25 0.69 0.25 0.69 0.25 0.11

Using the mean values of the activities we can draw the network as following: (Figure: 3)
Figure: 3 3.17 7.34 B=4. 17 5.17 0 Start 0 3.17 A=3. 17 3.17 3.17 C=6. 17 3.17 9.34 9.34 9.34 9.34 9.34 12.17 D=2. 83 12.17 12.17 15.34 F=3. 17 15.17 18.34 12.17 18.34

E=6.1 7 12.17 18.34 18.34 G=2 20.34 Finish 20.34

18.34

Using the mean activity times, we construct the pert network and calculate the slack.

Calculation of Slack:
Activity ID A B C D E F G LST-EST 0-0=0 5.17-3.17= 2 3.17-3.17= 0 9.34-9.34= 0 12.17-12.17= 0 15.17-12.17= 3 18.34-18.34=0 LFT-EFT 3.17-3.17 =0 9.34-7.34= 2 9.34-9.34= 0 12.17-12.17= 0 18.34-18.34=0 18.34-15.34= 3 20.34-20.34=0 Slack 0 2 0 0 0 3 0 Critical Path* * * * * *

From the above table and network the critical path has found as ACDEG. The critical path time is a normal random variable. This mean expected project completion time is 20.34 days. Now we have to calculate Path Probabilities, W know the formula

Where, Specified time = If 23 days, Path Mean = (3.17+6.17+2.83+6.17+2) = 20.34 Standard deviation of critical path time,

So the Z value will be,

From the z table we find the value of Z=1.18 is 97.06%. It says that there is a possibility 97.06% of being finished the project activity by 23 days.

1.9) Cost/Time trade-off: Crashing:

The main objective of crashing the project is shortened the projects duration by increasing the amount of money spent on the project. In the following table we specify the activities of a certain project. The normal time and normal cost for an activity are the time and cost incurred if the activity is executed at normal rate. The crash time and crash cost for an activity are the time and cost incurred if the activity executed as fast as possible. Incremental cost is calculated as follows:

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Activity ID A B C D E F G Total

Predecessors None A A B, C D D E,F Time 4 5 7 3 7 4 2

Normal Cost 50 100 700 10 35 10 5 910 Time 3 4 5 2 5 3 1

Crash Cost 60 125 750 15 50 12 7 1019

Incremental Cost* 10 25 25 5 7.5 2 2

The normal schedule is following network that results from using normal time and normal cost for each activity. (Figure: 4)
Figure: 4 B=5 E=7

Start

A=4

D=3

G=2

Finish

C=7

F=4

Thus if we use normal time and cost, the project will be completed in 23 days at a cost of Tk.9,10,000.00

The crash schedule:

The crash schedule is the network that results from using crash time and crash costs for each activity. Crashing normal schedule is given below: (Figure: 5)
Figure: 5 B=4 E=5

Start

A=3

D=2

G=1

Finish

C=5

F=3

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In our problem the critical path is A-C-D-E-G. The cost to crash each of these by one day are 10 for A, 25 for C, 5 for D, 7.5 for E & 2 for G. Now we choose to crash G by 1 day. In this case activity G, it cant be crashed further because it reached the crash point. (Figure: 6)

Figure: 6 B=5 E=7

Start

A=4

D=3

G=1*

Finish

C=7

F=4

The critical path is A-C-D-E-G. The cost to crash each of these are by one day 10 for A, 25 for C, 5 for D, & 7.5 for E. Now we choose to crash D by 1 day. In this case activity D, it cant be crashed further because it reached the crash point. (Figure: 7)
Figure: 7 B=5 E=7

Start

A=4

D=2*

G=1*

Finish

C=7

F=4

Again, the critical path is A-C-D-E-G. The costs to crash each of these by one day are 10 for A, 25 for C & 7.5 for E. Now we choose to crash E by 1 day. In this case activity E, it can be crashed further because it has not reached the crash point. (Figure: 8)
Figure: 8 B=5 E=6

Start

A=4

D=2*

G=1*

Finish

C=7

F=4

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As activity has not reached at crash point, it has to be crashed further. So we will see it in new network (Figure: 9):
Figure: 9 B=5 Start A=4 C=7 D=2* F=4 E=5* G=1* Finish

Again, the critical path is A-C-D-E-G. The cost to crash each of that by one day are 10 for A & 25 for C. Now we choose to crash A by 1 day. In this case activity A, it cant be crashed further because it reached the crash point. (Figure: 10)
Figure: 10 B=5 E=5*

Start

A=3*

D=2*

G=1*

Finish

C=7

F=4

Now it is time for to crash only activity C in new network, but Activity C can be crashed further,( Figure: 11)
Figure: 11 B=5 Start A=3* D=2* E=5* G=1* Finish

C=6

F=4

Again activity C is crashed in new network and then all activity in critical path reached their crash limit. (Figure: 12)
Figure: 12 B=5 Start A=3* D=2* E=5* G=1* Finish

C=5*

F=4

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Cost of final schedule:

Description Normal schedule Cost G crashed 1 day at 2000 D crashed 1 day at 5000 E crashed 2 day at 7500/ day A crashed 1 day at 10000 C crashed 2 day at 25000/day Total Amount TK. 9.10,000 2,000 5,000 15,000 10,000 50,000 TK. 9,92,000

Calculation of Net Benefit:

Normal crash schedule =TK. 10,19,000 9,92,000 27,000

Minimum crash schedule =TK. Savings = TK.

1.10) Conclusion:
We are confident that our proposed project is very much realistic. We also believe that this project is very much competitive in the current market. We hope this project will be accepted by the higher authority and finally it will add value to the business.

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