Critical path analysis method
Course:- Business Management
Reference No.:- EM1377125

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Critical Care Hospital will be buying a CATSCAN (computerized axial tomography scanner) in the next 6-months. The CATSCAN machine will be installed in radiology section and will require a significant renovation for the area. The scanner will arrive in about five months, but the construction project cannot be started until the unit is set in place. This will result in a project length of approximately 12 months. The hospital estimates the equipment will generate an income of $25,000 per month and is therefore in a hurry to complete the project. The project manager feels she may be able to cut the time on some aspects of the project, but at an increased cost. She has decided, in an effort to make the best decision, to use a resource allocation version of CPM.

Questions: What information must the project manager gather to use this method properly? How should she use this version of CPM to reduce the project time?


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