Management Fundamentals 5th Edition by Robert Lussier

Exercise 24

Objective
To develop your skills in planning using a Gantt chart and PERT network.
Skills
The primary skills developed through this exercise are:
1. Management skill - decision making
2. AACSB competency - analytic
3. Management function - controlling
You have decided to open and manage Smith (your last name) Movies Music Shop on April 1. It is now late December. You plan to move in one month before the store opens in order to set up. During March, your assistant will help you set up while you train him or her. Assume that you have decided to use (1) a Gantt chart and (2) a PERT network. Develop both, in whichever order you prefer, following the text guides for their development. Assume that you have identified the activities and completion times listed below (the activities may not be given in sequence) and that you will start to implement the plan on January 2.
a. Lease the fixtures necessary to display your DVDs and CDs; it will take two weeks to get them.
b. Order and receive DVDs and CDs. This will take one week.
c. Recruit and select an assistant (three weeks or less).
d. Install the fixtures, paint, decorate, and so on (two weeks).
e. Form a corporation (four weeks).
f. Make arrangements to buy DVDs and CDs on credit(two weeks).
g. Find a store location (six weeks or less).
h. Unpack and display the DVDs and CDs (one week).
i. Train the assistant (one week).
j. Select the DVDs and CDs you plan to stock (one week).
k. Determine start-up costs and cash outflows per month through April 30; your rich uncle will lend you this amount (one week).
Gantt Chart
When developing the Gantt chart, use the following format, based on weeks. You may want to change the letter sequence to match the starting dates.

PERT
When developing the PERT chart, draw arrows from the start to your circles for the independent activities. Place the letter of the activity inside the circle. On the arrow to the activity, place the number of weeks needed to complete it. Then draw an arrow to the end. Also from the start, draw the first dependent activity, followed by the next dependent activity, and so on, until you get to the last one; then draw an arrow to the end. Be sure to put the number of weeks and activity/event letters on your network. After all activities have been listed, determine the critical path and draw the second arrow to indicate it. Hint: You should have five arrows to activities coming from the start; you can begin the process with either selecting movies/music or finding a store location.

Conclusion
Apply It
What did I learn from this experience? How can I use this knowledge in the future?
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