Chapter 50

Worked Example 4

Battle Tank

Keywords

Activity on arrow network; Activity on node network; Battle tank; CBS; Lester diagram; Organization breakdown structure; PBS

Business Case for Battle Tank Top Secret

Memo: From: General Johnson
To: The Department of Defence
1 September 2006
Subject: new battle tank
It is imperative that we urgently draw up plans to design, evaluate, test, build and commission a new battle tank Figs 50.1–50.13.
The ‘What’
A new battle tank which
1. Has a 90 mm cannon;
2. Has a top speed of at least 70 mph;
3. Weighs less than 60 tonnes fully loaded and fuelled;
4. Has spaced and active armour;
5. Has at least two machine gun positions including the external turret machine gun;
6. Has a crew of not more than four men (or women);
7. Has a gas turbine engine and a fuel tank to give a range of 150 miles (240 km);
8. Has the cost not exceeding $5500000 each;
9. Has 500 units ready for operations by February 2008.
The ‘Why’
1. The existing battle tanks will be phased out (and worn out) in 2008.
2. Ruritania is developing a tank which is superior to our existing tanks in every way.
3. The existing tank at 80 tonnes is too heavy for 50% of our road bridges.
4. The diesel engine is too heavy and unreliable in cold weather.
5. The armour plate on our tanks can be penetrated by the latest anti-tank weapon.
6. A new tank has great export potential and could become the standard tank for NATO.
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Figure 50.1 Battle tank.
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Figure 50.2 Life cycles and phases.
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Figure 50.3 Product breakdown structure (PBS).
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Figure 50.4 Work breakdown structure (WBS).
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Figure 50.5 Cost breakdown structure (CBS).
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Figure 50.6 Organization breakdown structure (OBS).
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Figure 50.7 Responsibility matrix.
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Figure 50.8 Activity on arrow network (AoA).
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Figure 50.9 Activity on node network (AoN).
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Figure 50.10 ‘Lester’ diagram.
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Figure 50.11 Histogram and ‘S’ curve.
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Figure 50.12 Earned value table.
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Figure 50.13 Control curves.
Major risks
1. The cost may escalate due to poor project management.
2. The delivery period may be later than required due to incompetence of the contractors.
3. The fuel consumption of the gas turbine may not give the required range.
4. Ruritania will have an even better tank by 2008.
5. No matter how good our tank is, NATO will probably buy the new German Leopard Tank.
6. Heavy tanks may eventually be replaced by lighter airborne armoured vehicles.
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