Incidents For Discussion

Bryce Power Tool Company

George Ertle is the director of engineering for the Bryce Power Tool Company. A decision was made recently to modernize Bryce's entire tool line. The president of Bryce has indicated that he expects the modernization program to result in a significant improvement in design technology. Ertle is concerned with the possibility that his department will not have adequate resources to support the modernization program. Ertle believes he has enough staff to handle the aggregate engineering requirements, but he is not too sure he will be able to supply engineering personnel at the times and quantities requested by the company's project manager.

To complicate matters further, the tool modernization program will be under the control of four different project managers. Each major market segment has been recognized as a separate business unit with the authority to modernize the key tools for that segment based on a schedule that makes sense for it.

Ertle knows a little bit about resource allocation techniques. He remembers that one of the most effective allocation techniques is to work first on the activity with the minimum slack, so he has instructed his staff to approach any tasks they are assigned as members of a project team on that basis.

11. The network shown in the table has a fixed cost of $90 per day, but money can be saved by shortening the project duration. Find the least cost schedule.

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