Reynolds and L.L Bean Cases

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E:I:IE!J ~ Harvard Business School 9-675-017 Rev. November 1, 1974 Reynolds Construction Company' In 1973, Reynolds Construction Company had purification system for the city of Oakmont By the fall of system, however it was apparent that work on a special finished earlier than originally planned if the main system Mr. James Mr. Henry Phillips, the construction of which the job could received a contract to construct a water 1974 work was nearly complete on the main remote control building would have to be was to be completed on time. Alison, field construction supervisor for Reynolds had arranged a meeting with project engineer, to restudy the arrow diagram of their critical path schedule for the remote control building in an effort to determine the shortest possible time in be done without spending more money than necessary. Reynolds used the Critical Path Method as a too to assist in project planning and control. Two documents are used in this control system, an activity network and a cost table. A list of the activities for the remote control site are in Exhibit 1. The activity network, Exhibit 2, shows all the activities and the sequence in which they can be performed. No activity can begin until all the previous ones on its path have been completed. The Cost Table, Exhibit 3, lists the activities and their duration along with the cost needed to complete them in this "normal time." The Cost Table also lists the minimum amount of time for each activity, called the "crash" time; and the costs needed to achieve this minimum time. In addition, a final listing in the Cost Table showed how much it cost to shorten each activity one week. The sequence of consecutive activities requiring the longest time to complete before the end of the project is known as the "critical path" for that project The path is considered because any delay in the particular

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