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Case: Stone worth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stone worth the contract, they stipulated a 1% penalty for each week Stone worth was late on a completion date. Preston Flintrock, the project coordinator for Stone worth, began to notice that the last two jobs were three weeks late, and the paving job that was due to be completed in the next two weeks was behind schedule. When Preston went in the field to investigate, he found the job to be understaffed, supplier delays, and a high work rejection/repaving needed. As a result, Preston decided to establish a better system of project control and present it to the boss.
Question 1: If you were Preston, what characteristics would you be looking for in a new control system? Explain
Question 2: Will a new control system be adequate for the problem? Explain.
Estimated time for critical path is 120 days. Sum of all activities variances is 64, while sum of variances along activities path is 36. Probability which project will be completed among 108 also 120 is?
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