Logistics Management System (LMS) Project Assignment Solutions


Assignment Brief:

  • Topic : Engineering Management 1
  • Words – 2500


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Maxispeed, a multinational company has planned to invest in a new project. This project is to develop an alternative online management system that supports the supply chain and logistics to function effectively. Due to the enormous growth in its operations, it can no longer rely on the manual processes. Therefore, the company has decided to mandate the implementation of a new supply-chain and logistics management system. Troy O’Connor has been assigned the responsibility owing to his past experience with similar type of projects. He is currently the department manager for engineering sub-division. He and his team have come up with the following list of activities and the three time estimates for each of the activities. He has to proceed to developing a project schedule to determine the cost-time-quality equilibrium. Listed below are the activities involved.






Immediate Predecessors Estimated time


a m b
A Set up the project team 1 3 5
B Write down the project requirements A 2 2 2
C Develop proposal evaluation B 1 2 3
D Identify and select potential contractors A 0.5 1 1.5
E Request for proposal from contractors B, D 2 5 8
F Select and finalise one contractor C, E 1 2 3
G Prepare functional requirements F 2 6 10
H Develop system testing plan G 2 3 4
I System customisation phase 1 G 10 12 14
J Purchase and install components G 2 3 4
K Test the first release H, I, J 1 1 1
L Develop training plan for users K 1 2 3
M Train the users L, O 1.5 3 4.5
N System customisation phase 2 K 3 6 9
O Test the second release N 1 2 3
P System customisation phase 3 O 2.5 3 3.5
Q Test the final release P 1 3 5
R System deployment and project sign-off Q 2 4 6

Table 1


1.  Draw the network diagram to determine the critical path, the expected duration of the project, project variance and standard deviation of the project.


(Note: You need to compute the expected time, variance and standard deviation for all the activities in the project.)

[6 marks]


2.  With these uncertainties on-hand, calculate the probability that the project can be completed in less than 46 weeks. Also, compute the project duration for which the team can be 80% confident to complete the project.

[4 marks]


A sub-project has the following activities as listed in the table below. The sub-project has been allotted with 5 workers and one unit of machines M1, M2 & M3. Allocate the resources and determine a realistic project schedule that accommodates the resource constraint.



Activity Immediate




No. of workers Machine(s)
A 5 3 M1
B 2 2 M2
C 5 3 M2, M3
D A 5 2 M2
E A 8 2 M1
F B 3 2 M3
G C 3 3 M1, M3
H E, F 2 2 M3
I D, H 3 2 M2


3.  Determine the project duration of this sub-project after constructing the network diagram. Show the early start, early finish, late start, late finish times and floats of each activity in the AON network diagram.

[4 marks]


4.  Develop a resource loading chart for workers and machines required according to the original schedule.

[4 marks]


5.  Perform resource leveling to develop a realistic schedule accommodating the resource limitations.

[4 marks]



The project manager of a task force planning a complementary project to the above-mentioned logistics project had hoped to be able to complete all the activities prior to the start of the main logistics project. After reviewing the activity duration estimates, it now appears that a certain amount of crashing will be needed to ensure project completion before the logistics project begins. Given the following information, determine a minimum-cost crashing schedule that will save five weeks off the project length.





Immediate Predecessors Normal Duration


Normal Cost ($) Crashing Costs ($)
First Week Second Week
A 12 75,000 15,000 20,000
B A 14 38,000 10,000 10,000
C 10 15,000 5,000 5,000
D C 17 62,000 20,000 21,000
E C 18 57,000 16,000 18,000
F C 12 25,000 12,000 15,000
G D 15 48,000 24,000 24,000
H E 8 64,000
I F 7 90,000 30,000
J I 12 65,000 25,000 25,000
K B 9 32,000 10,000 10,000
L G 3 23,000
M H 11 117,000 40,000
N H, J 8 89,000 20,000 20,000

Table 3


6.  Compute the normal cost and duration of this sub-project after constructing the network diagram. Show the early start, early finish, late start, late finish times and floats of each activity in the AON network diagram.

[4 marks]


7.  Identify which activity/ activities will have to be crashed to save five weeks off the normal project duration to help the main logistics project to start without delay. Calculate the new project cost after crashing activity/ activities.

[5 marks]


8.  With the limitations on the available crash times for each activity as given in the table; determine the shortest possible duration to complete this project and then, compute the new project cost.

[5 marks]


9.  If project budget is a constraint and the project manager has been requested to develop a schedule that is of lowest cost, evaluate what will be the least cost plan for this project (not the least time).

[4 marks]


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