VMH wants to launch a new telemedicine procedure and the project is time-critical. You will provide project management assistance to Jim Hernandez in VMH's Marketing department. Comments from your meeting follow.
"Hello, I'm Jim Hernandez. Here's the project I have in mind for you. We have a new telemedicine procedure ready to be introduced at the clinic on the Indian reservation (some 85 miles west of clinic). It is imperative to get the project completed as we have made several promises to the tribal council. We also don't want another hospital or health care provider getting their business instead of us. The procedure requires the acquisition, installation, and marketing of a new telemedicine communications system. Dr. Jim Suver of our Emergency Department is responsible for its implementation. He has given me a list of activities that need to be completed before the new system can be implemented. There are four stages: 1) develop the criteria and systems, 2) write the simplified instructions on using the system, 3) order the computers and telephone equipment, and 4) begin working with the tribal council. The systems and the selection and training of the Emergency Department (ED) nurses needs to be completed before the system shakedown can begin. The Human Resources Department insists that they must carefully recruit and hire the proper nursing staff for each location before turning us loose to market the new service. When the equipment is installed at the first location and the nurses are sufficiently trained, we have promised the JCAHO that we would have a test period of about four weeks before launching the new system. Take a look at Activities for Tribal Telecommunications System Chart (select Marketing)."
"Since we are anxious for the project to be completed as soon as possible, we have the option of paying additional costs to accelerate some of the activities. For example, the normal time required for the communications contractor to finalize criteria can be reduced by one week at an additional cost of $1200. Another example is that Materials Management (MM) could ship by UPS Ground and save one week. This option would cost an additional $1800. Using FEDEX would save a total of two weeks but costs $4000 more. The training period for the nurses can be reduced by one week if Human Resources allows the nurses to work overtime at an additional cost of $1000. For the criteria development, $4000 in overtime can be saved if this activity is allowed to take five weeks to complete."
Assignment Questions
1. Determine the shortest possible time in which the telecommunications project can be completed if no activities are crashed.
2. Determine the shortest possible time if activities on the critical path are crashed.
3. Calculate the additional cost resulting from crashing all the activities possible.
4. Explain how you can minimize the additional cost of crashing the project and still complete the project in the same amount of time.
5. Describe any additional suggestions that you have which might reduce project completion time.