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12-1 Using the information in Table 12-7, construct a PERT network and answer each of the following questions:
Activity
Predecessor
Time Estimates
(weeks)
A
Secure state approval
4
B
Identify 20-bed unit to be used
1
C
Move existing residence
D
Clean space
2
E
Develop architectural plan
9
F
Install heating and ventilation system
G
Install security systems
H
Move walls; renovate
I
Identify new equipment
J
Order new equipment
K
Unpack and inspect new equipment
L
Install new equipment
D,K,H
3
M
Reassign staff
N
Identify new staffing needs
O
Advertise for new staff
P
Interview for new staff
Q
Select new hires
R
Develop care plan protocols
S
Train staff
R, Q, M, L
T
Modify quality assurance plans
U
Coordinate with hospital discharge planners
V
Complete Internal Audit
U,G
a. What is the expected project completion data?
b. What is the scheduled start and completion date for each activity?
c. Which activities are on the critical path?
d. How long can noncritical path activities be delayed without jeopardizing the overall completion date for this project?
12-2 Assess the impact of the following changes to the time estimates provided in question 12-1. Individually, what is the impact if:
New Time Estimate
O. Advertise for new staff
P. Interview for new staff
6
Q. Select new staff
Collectively, what is the impact of these changes?
Time
t + 1
t + 2
t + 3
t + 4
Service Revenues (net)
$425
$500
$580
$700
Expenses
$400
$450
$525
$600
Depreciation Expense
mce_markernbsp;35
Net Income
($ 10)
mce_markernbsp;15
mce_markernbsp;20
mce_markernbsp;65
60%
20%
mce_markernbsp;40,000
$20,000
mce_markernbsp;60,000
$30,000
mce_markernbsp;80,000
mce_markernbsp; 75,000
$40,000
$100,000
$50,000
$125,000
t + 5
c. Purchase an upgraded analyzer for the laboratory. Based on forecasts of laboratory utilization, the net cash flows for this project are:
Net Cash Flow
$75,000
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