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The general manger of a distribution centre has asked you to manage a project which...

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Accounting

The general manger of a distribution centre has asked you to manage a project which will see the construction of a warehouse loading dock. You have identified 9 major activities for the project. The cost and duration of each activity are shown in the following table.

Activity

Preceding Activity(s)

Duration (months)

Cost ($000s)

A

-

1

30

B

A

3

99

C

A

1

75

D

B

3

183

E

C

2

33

F

D

4

108

G

D,E

3

78

H

F

4

96

I

G,H

2

61

Complete the network diagram/critical path diagram and determine and show the following: -

1. The activities of the critical path.

2. Identify the duration of the project

3. Briefly explain the relationship between the critical path and the project duration showing the importance of the critical path and the implications for project managers.

4.

Complete the Gantt chart showing cash flows on a monthly basis for the duration of the project

Assume costs associated with an activity are incurred equally over the duration of that activity and that each of the activities that are part of the critical path require the full duration to complete. Start tasks not part of the critical path at the earliest possible time.

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