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Case Overview People’s Clinic has been located at the intersection of US highway 82 and Avenue A in Lubbock, Texas, since the early 1970’s. In 2021, the clinic was identified by its owners, Associate

Case Overview

People’s Clinic has been located at the intersection of US highway 82 and Avenue A in Lubbock, Texas, since the early 1970’s.  In 2021, the clinic was identified by its owners, Associated Texas Clinics, Inc. (ATC) for significant remodeling.  Due to the financial aftereffects of the COVID pandemic, ATC deferred the planned renovation project until 2026.  However, before significant planning was initiated, ATC was informed by Texas Department of Transportation (TxDOT) that the property was scheduled for purchase by the state for demolition to allow the rebuild of US-82 to interstate-highway standards featuring controlled access and interchanges at major cross streets such as Avenue A.  The clinic was expected to be vacated by July 1, 2026 to make way for demolition crews.

The Relocation Project

ATC executives received the TxDOT letter informing them of the necessary closure of the existing clinic on September 13, 2024.  Timing of the state’s acquisition of the property was considered by ATC management as a fortuitous advantage since the company would receive considerable compensation for the property which could be used as the primary source of funds to pay for the new facility ATC would need.

Over the next several months, ATC worked with a commercial real estate firm to locate and purchase the ideal property for the new facility.  Meanwhile, an architecture firm (Dirks and Leach) was retained to design a facility to fit this property.  The design has been developed by Dirks and Leach and approved by the ATC Board.  Luke-Owen Construction, a major Lubbock-based construction conglomerate has accepted a bid to construct the new facility and make it turn-key ready by May 1, 2026.

Ground-breaking for the new clinic is scheduled for 10:00 a.m. on March 24, 2025. 

The Critical Path

Many steps are required to construct a building, ready it for occupancy, move equipment, supplies, materials, and people across town, and prepare the new facility for its opening day.

The following table lists the necessary major activities required to complete the relocation along with the shortest, expected, and longest times each activity may take.  Activity precedence relationships are also noted.

Your job is to determine the critical path of activities and the expected completion date for the relocation project.  Can the new facility be ready to open its doors to patients by June 1, 2026?

If this deadline cannot be met with all activities occurring as expected, determine a crash schedule that would allow the goal to be met for the least expenditure.  What “crash” cost would allow the project to be completed on time?

The Activities

All times in the table are shown in weeks.

Activity ACTIVITY NAME

A         Building Design (Completed)

B         Obtain Building Permits           

C        Site PreparatioN

D        Underground Utilities

E        Foundation

F        Framework

G       Roof Structure

H       Outside Walls

I       Building Electrical

J     Building Plumbing

K     Interior Walls

L     Fixtures (Plumbing, Lighting, Cabinets

M    Interior Painting

N    Flooring Installation

O    Install Roofing

P    Building Check-Out

Q   Building Clean (Post Construction)

R    Parking Lot Construction

S   Landscaping

T   Pack-up Old Facility

U   Move Items from Old Facility

V   Set-up New Facility

W   Receive New Equipment After Purcha

Deliverables

  1. A PERT Diagram with the Critical Path clearly shown and total completion time shown.  (Assume Week 1 begins on March 24, 2025.)  If activities cease for 2 weeks for the Christmas and New Years holidays, what is your expected completion date?
  2. A revised PERT Diagram with new Critical Path showing completion on or before May 1, 2026.
  3. Calculations of total expected crash costs to achieve a May 1 completion.

Notes:

  • State all assumptions.
  • Include a reference list with any references used.
  • Include a narrative with any other information that helps explain your proposed project activity plan, noting explicitly all activities you crashed with any pertinent reasoning.

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