Ajax is about to embark on a project involving the design, manufacture and intro

Question

Ajax is about to embark on a project involving the design, manufacture and introduction of a new microwave oven. The first three activities and the immediate predecessors are: Activity Predecessor A Prototype Design none B Acquisition of Materials A C Prototype Construction B However, it has not yet been decided whether the prototype materials will be purchased from a vendor (taking two weeks) or produced in another Ajax division (four weeks). What are the implications of this regarding usage of any standard project scheduling technique?

Explanation / Answer

Activity A, B ,C are planned in respective fashion and the project can be completed in total time to complete A,B and C. But the acquisition of Material (B) may be from a vendor or be produced at another Ajax division.

If Ajax purchases it from vendor, the project may be delayed by the procurement lead time but it produces by itself the project will require 2 more weeks to complete.

1-The scheduling would depend on lead time for procurement is greater or lesser than production time.

2-Assuming the procurement has lesser lead time than production time, how much is the procurement cost vs production cost. ie. whether crashing of actvity B through procurement helping in improving project completion time.

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