Challenge to ca finalists - costing


08 November 2015  

The following activities were listed during a brainstorming session on product development. Find the appropriate predecessor-successor relationships and then construct an AON network to reflect the project using the activity duration times given in the information table. Assume a five-day workweek. Find the critical path and time for the project. Find the slack for all activities.

1. Organize the sales office: Hire sales manager. (6 weeks)
2. Hire sales personnel: The sales manager will recruit and hire the salespeople needed. (4 weeks)
3. Train sales personnel: Train the salespeople hired to sell the product to the distributors. (7 weeks)
4. Select advertising agency: The sales manager will select the agency best suited to promote the new product. (2 weeks)
5. Plan advertising campaign: The sales office and advertising agency will jointly plan the advertising campaign to introduce the product to the public. (4 weeks)
6. Conduct advertising campaign: The advertising agency will conduct a ?owatch for?? campaign for potential customers. (10 weeks)
7. Design package: Have packaging engineer design the package most likely to ?osell.?? (2 weeks)
8. Set up packaging facility: Prepare to package the products when they are received from the manufacturer. (10 weeks)
9. Package initial stocks: Package stocks received from the manufacturer. (6 weeks)
10. Order and receive stock from the manufacturer: Order the stock from the manufacturer.
The time given includes the time for delivery. (13 weeks)
11. Select distributors: The sales manager will select the distributors whom the salespeople will contact to make sales. (9 weeks)
12. Sell to distributors: Take orders from the distributors for the new product, with delivery promised for the product-introduction date. If orders exceed stock, assign stock on a quota basis. (6 weeks)
13. Ship stock to distributors: Ship the packaged stock to distributors in accord with their orders or quota. (6 weeks)

What managerial problems and opportunities do you see as a result of your work?