Dubai government has signed an agreement for construction of a 228,000 sq. ft. e

Question

Dubai government has signed an agreement for construction of a 228,000 sq. ft. electronics and specialised waste recycling plant at Dubai Industrial Park by December 2018. The construction will cost 3m AED and ongoing operating costs are estimated to be 500k AED annually. The facility will serve as the region's largest centre of expertise for electronic waste management. The plant will recycle the entire range of end-of-life electrical and electronic equipment ranging from consumer and industrial to commercial and military appliances, such as air conditioners, batteries, IT equipment, household appliances, military avionics and mobile phones. Phase 1 of the plant will comprise state-of-the-art equipment to process 50,000 tonnes of electronic waste annually. Phase 2, which will go live at the end of the second year of operation and cost another 1m AED for construction, will increase capacity to 75,000 tonnes annually. Each tonne generates 50 AED of revenue through resale or reuse. The cost of capital is 10%.

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QUESTION: PREPARE A PROJECT PLAN FOR AN ACTIVITY AND DETERMINE THE CRITICAL PATH

Explanation / Answer

The following are the phases in the project

1) Agreement sign-off for construction
2) Contruction of Phase 1 of the plant - Capcaity for 50,000 tonnes
3) Construction of phase 2 of the plant

Now the time required for each specific task is not mentioned in the question. Hence the critical path cannot be calculated. However the cashflow can be shown as below.

Given the lack of information, the following can be the tasks in the project plan. To find the critical path we will need to assume the task durations and find the critical path.

1. Loan for 3m AED and Procurement Phase 1
2. Excavation
3. Procurement Phase 2
4. Foundation completion
5. Column construction
6. Frame building
7. Procurement Phase 3
8. Infrastructure - Machines, etc
9. Consumables
10. Final touch-up
11. Phase 1 completion
12. Operationalize Phase 1
13. Loan for 1m AED for contructing Phase 2
14. Repeat of steps from Phase 1.

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