The key objectives of the project are to accomplish project within time and allocated budget. Additionally, project objective is to ensure execution of business operations in accordance with the environmental standards and quality standards set out by the regulatory authorities. Some risk factors associated with this project are linked with cost and quality factors. Poor quality food items will cause legal issues by food authority. While on the other hand, cost excess is also a risk which can result in the decrease of project profitability.
The critical path for the said project is evaluated by using the project activities by using various alphabets. The critical path is shown by providing each activity with respective duration (Investopedia, 2019).
Activity Immediate Predecessors Duration
The preceded & the succeeded node is given below along with the edges.
The network diagram for the project, along with activity time, is as given:
a)Work package Planning
For the critical path analysis, below is given the forward pass method
for the critical path analysis, below is given the backward pass method
the below network diagram is providing with the critical path for the said project.
For the project, the critical path is: 1-2-3-4-5-6-7-8-9-10-11-12-13-14-15-16-17-18-19.
the critical activities are as given: A, B, C, D, E, F, G, H, I, J, K, L, d, N, O, d, Q, R.
The total time for the project is 113 days.
The network diagram for the project, along with E-values and L-values, is as given:
In the table below, for each non-critical activity, the total float, free float as well as the independent float calculations are as given:
Project Cost Management
Expected cost includes hiring and staffing, training, salaries, raw material purchase, building rent, furniture, and decoration cost. In the following table all cost are calculated as annual cost.
Cost of business operations is considered as project implementation cost in the following table. Expected cost includes all project related cost and expenditures which are required to be adjusted in the allocated budget.
Expected Cost
Concept $5,000
development $18,000
Implementation $565,000
Project Close out $11,000
Reserves $50,000
Total cost of Project $649,000
In the following graph, implementation cost is greater than all other project costs. Implementation cost relates to longer time duration as compared to other project costs which are related to just a few months or days only. Project implementation cost includes all expenditure and cost to be incurred in the project during one year operations of bakery.
Expected Benefit
Expected benefits are calculated through subtracting cost and expenses from possible sales or revenue amount earned by the bakery during first year operations. According to the analysis business require at least $580000 to cover all cost. In other words, operating income starts after $580000. Considering this, bakery would require to have at least $48,000 monthly income to cover all costs and expenditures linked with project.
References of the environmental standards and quality standards
Investopedia. (2019, November 10). Critical Path Analysis (CPA). Retrieved from https://www.investopedia.com/terms/c/critical-path-analysis-cpa.asp
