Whitbread World Sailboat Race Question:Their rationale for project crashing.The relationship between the project duration and crash costs.Risks related to crash costs. As Bjorn begins to think of a project plan, he sees two parallel paths runningthrough the project design and construction and crew training. Last year's boatwill be used for training until the new entry can have the crew on board to learnmaintenance tasks. Bjorn calls Karin and Trygve together to develop a projectplan. All three agree the major goal is to have a winning boat and crew ready tocompete in next year's competition at a cost of $3.2 million. A check of Bjorn'scalendar indicates he has 45 weeks before next year's vessel must leave port for theUnited Kingdom to start the race.THE KICKOFF MЕЕTINGBjorn asks Karin to begin by describing the major activities and the sequencerequired to design, construct, and test the boat. Karin starts by noting that de-sign of the hull, deck, mast, and accessories should only take six weeks giventhe design prints from past race entries and a few prints from other countries'entries. After the design is complete, the hull can be constructed, the mast or-dered, sails ordered, and accessories ordered. The hull will require 12 weeks tocomplete. The mast can be ordered and will require a lead time of eight weeks;the seven sails can be ordered and will take six weeks to get; accessories can beordered and will take 15 weeks to receive. As soon as the hull is finished, the bal-last tanks can be installed, requiring two weeks. Then the deck can be built,which will require five weeks. Concurrently, the hull can be treated with specialsealant and friction-resistance coating, taking three weeks. When the deck iscompleted and mast and accessories received, the mast and sails can be installed,requiring two weeks; the accessories can be installed, which will take six weeks.When all of these activities have been completed, the ship can be sea-tested,which should take five weeks. Karin believes she can have firm cost estimates forthe boat in about two weeks.Trygve believes he can start selecting the 12-man or woman crew and securingtheir housing immediately. He believes it will take six weeks to get a committedcrew on-site and three weeks to secure housing for the crew members. Trygve re-minds Bjorn that last year's vessel must be ready to use for training the momentthe crew is on-site until the new vessel is ready for testing. Keeping the old vesseloperating will cost $4,000 per week as long as it is used. Once the crew is on-siteand housed, they can develop and implement a routine sailing and maintenancetraining program, which will take 15 weeks (using the old vessel). Also, once thecrew is selected and on-site, crew equipment can be selected, taking only twoweeks. Then crew equipment can be ordered; it will take five weeks to arrive.When the crew equipment and maintenance training program are complete, crewmaintenance on the new vessel can begin; this should take 10 weeks. But crewmaintenance on the new vessel cannot begin until the deck is complete and themast, sails, and accessories have arrived. Once crew maintenance on the new ves-sel begins, the new vessel will cost $6,000 per week until sea training is complete.After the new ship maintenance is complete and while the boat is being tested,initial sailing training can be implemented; training should take seven weeks.Finally, after the boat is tested and initial training is complete, regular sea trainingcan be implemented-weather permitting; regular sea training requires eightweeks. Trygve believes he can put the cost estimates together in a week, given lastyear's expenses.Bjorn is pleased with the expertise displayed by his team leaders. But he believesthey need to have someone develop one of those critical path networks to see if they can safely meet the start deadline for the race. Karin and Trygve agree. Karinsuggests the cost estimates should also include crash costs for any activities thatcan be compressed and the resultant costs for crashing. Karin also suggests theteam complete the following priority matrix for project decision making:FIGURE C9.1TimePerformanceCostProject PriorityMatrix: WhitbreadProjectConstrainEnhanceАссeptTWO WEEKS LATERKarin and Trygve submit the following cost estimates for each activity and corre-sponding crash costs to Bjorn (costs are in thousands of dollars):NormalNormalCrashCrashActivityTimeCostTimeCostA DesignB Build hullC Install ballast tanksD Order mastE Order sailsF Order accessoriesG Build deck$ 401,00062$12221008100120040156002100200H Coat hull340Install accessories63001100J Install mast and sailsК TestL Sea trialsM Select crewN Secure housingO Select crew equipmentP Order crew equipmentQ Routine sail/maintenanceR Crew maintenance trainingS Initial sail training40140601408200125010110301053015403301010012407502150Total direct cost$2,990Bjorn reviews the materials and wonders if the project will come in within thebudget of $3.2 million and in 45 weeks. Advise the Whitbread team of theirsituation.

Name: Whitbread World Sailboat Race Question:Their rationale for project cra
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Description: Whitbread World Sailboat Race Question:Their rationale for project crashing.The relationship between the project duration and crash costs.Risks related to crash costs. As Bjorn begins to think of a project plan, he sees two parallel paths runningthro

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Whitbread World Sailboat Race Question:Their rationale for project crashing.The relationship between the project duration and crash costs.Risks related to crash costs. As Bjorn begins to think of a project plan, he sees two parallel paths runningthrough the project design and construction and crew training. Last year's boatwill be used for training until the new entry can have the crew on board to learnmaintenance tasks. Bjorn calls Karin and Trygve together to develop a projectplan. All three agree the major goal is to have a winning boat and crew ready tocompete in next year's competition at a cost of $3.2 million. A check of Bjorn'scalendar indicates he has 45 weeks before next year's vessel must leave port for theUnited Kingdom to start the race.THE KICKOFF MЕЕTINGBjorn asks Karin to begin by describing the major activities and the sequencerequired to design, construct, and test the boat. Karin starts by noting that de-sign of the hull, deck, mast, and accessories should only take six weeks giventhe design prints from past race entries and a few prints from other countries'entries. After the design is complete, the hull can be constructed, the mast or-dered, sails ordered, and accessories ordered. The hull will require 12 weeks tocomplete. The mast can be ordered and will require a lead time of eight weeks;the seven sails can be ordered and will take six weeks to get; accessories can beordered and will take 15 weeks to receive. As soon as the hull is finished, the bal-last tanks can be installed, requiring two weeks. Then the deck can be built,which will require five weeks. Concurrently, the hull can be treated with specialsealant and friction-resistance coating, taking three weeks. When the deck iscompleted and mast and accessories received, the mast and sails can be installed,requiring two weeks; the accessories can be installed, which will take six weeks.When all of these activities have been completed, the ship can be sea-tested,which should take five weeks. Karin believes she can have firm cost estimates forthe boat in about two weeks.Trygve believes he can start selecting the 12-man or woman crew and securingtheir housing immediately. He believes it will take six weeks to get a committedcrew on-site and three weeks to secure housing for the crew members. Trygve re-minds Bjorn that last year's vessel must be ready to use for training the momentthe crew is on-site until the new vessel is ready for testing. Keeping the old vesseloperating will cost $4,000 per week as long as it is used. Once the crew is on-siteand housed, they can develop and implement a routine sailing and maintenancetraining program, which will take 15 weeks (using the old vessel). Also, once thecrew is selected and on-site, crew equipment can be selected, taking only twoweeks. Then crew equipment can be ordered; it will take five weeks to arrive.When the crew equipment and maintenance training program are complete, crewmaintenance on the new vessel can begin; this should take 10 weeks. But crewmaintenance on the new vessel cannot begin until the deck is complete and themast, sails, and accessories have arrived. Once crew maintenance on the new ves-sel begins, the new vessel will cost $6,000 per week until sea training is complete.After the new ship maintenance is complete and while the boat is being tested,initial sailing training can be implemented; training should take seven weeks.Finally, after the boat is tested and initial training is complete, regular sea trainingcan be implemented-weather permitting; regular sea training requires eightweeks. Trygve believes he can put the cost estimates together in a week, given lastyear's expenses.Bjorn is pleased with the expertise displayed by his team leaders. But he believesthey need to have someone develop one of those critical path networks to see if they can safely meet the start deadline for the race. Karin and Trygve agree. Karinsuggests the cost estimates should also include crash costs for any activities thatcan be compressed and the resultant costs for crashing. Karin also suggests theteam complete the following priority matrix for project decision making:FIGURE C9.1TimePerformanceCostProject PriorityMatrix: WhitbreadProjectConstrainEnhanceАссeptTWO WEEKS LATERKarin and Trygve submit the following cost estimates for each activity and corre-sponding crash costs to Bjorn (costs are in thousands of dollars):NormalNormalCrashCrashActivityTimeCostTimeCostA DesignB Build hullC Install ballast tanksD Order mastE Order sailsF Order accessoriesG Build deck$ 401,00062$12221008100120040156002100200H Coat hull340Install accessories63001100J Install mast and sailsК TestL Sea trialsM Select crewN Secure housingO Select crew equipmentP Order crew equipmentQ Routine sail/maintenanceR Crew maintenance trainingS Initial sail training40140601408200125010110301053015403301010012407502150Total direct cost$2,990Bjorn reviews the materials and wonders if the project will come in within thebudget of $3.2 million and in 45 weeks. Advise the Whitbread team of theirsituation.

Accepted Answer

Here are some basic reasons for project crashing:

Commanded deadline in which disfavor will be…

Whitbread World Sailboat Race Question: Their rationale for project crashing. The relationship between the project duration and crash costs. Risks related to crash costs.