CASE 7.3 PAPUA PETERA VILLAGE PROJECT The Papua Petroleum Company is building a
ID: 331319 • Letter: C
Question
CASE 7.3 PAPUA PETERA VILLAGE PROJECT The Papua Petroleum Company is building a village to support workers for an oil field in Sumatra The principle work of the project involves five work packages: build road, clear site, erect build- ings, erect power generation plant, and build water purification system. Figure 7.27 is a high-level network diagram for the project. C, Buildings A, RoadB, SiteD, P E, Water Figure 7.27 Papua Petera Village Project. lo explore ways to speed up the project, Papua asked its contractors to submit information about e and cost for crews working as many as three shifts a day. (Portable lighting technology wo the following estimat hat are fixed regardless of work times. ontinue at night-time for second and third shifts. The contractors responded with es, which excludes costs for materials, supplies, components, and systemsExplanation / Answer
Plan1 (When the alternative is to choose the lowest cost for project)
A- One shift makes 0.1 km per day so to make 10 km it will take =100 days
B- One shift can clear site in 10 days
C- Using one shift 3 buildings can be made in a week of 5 days so like this it takes 13 weeks i.e 65 days and for another building to build it will take around 2 days.So total days = 67
D-With one shift per day it takes 10 weeks i.e 10*5 = 50 days
E - With one shift it takes 8 weeks i.e. 8*5 = 40 days
the cost calculation is sown in the excel sheet below
Formula in excel
Please note the work element C, D, and E are the parallel element so they can be done simultaneously and maximum f the duration between them will be added to the A and B duration
Case 2(Lowest time period for Project)
With Maximum shifts possible
A- takes 10/0.3 = 34 days nearly
B - with 3 shifts per day 4 days duration
C - With 3 shifts it can make 9 building per week and so 36 buildings can be made in 4 weeks i.e 20 days time and another 2 buildings will take 5/9*4 days i.e nearly 2 days with three shifts. So total time is 24 days
D- with two shifts 5 weeks i.e 5*5 25 days
E -With two shifts 4 weeks i.e 4 *5 =20 days
The calculation here is per shift basis, please note
In the case 1 Total duration was 177 days and the total cost was $2996000
In the case2 Total duration was 63 days and the total cost was $2609000
Please comment if any doubt.
Plan1 (Only First Shift Lowest cost) Work element Duration(in days) Cost Indirect cost Total Cost A(Road making) 100 1200000 531000 2996000 B(Clear site) 10 120000 C(Erect Buildings) 67 335000 D (Power) 50 450000 E(Water) 40 360000 Total Project duration 177Related Questions
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