PROJECT MANAGEMENT
TEXT BOOK: Project Management Achieving Competitive Advantage (4thEdt.)
All assignments must be:
Essay Responses: All questions need to be answered in essay format (must be typed, doubled spaced, Times New Roman, 12 point font, with 1" margins, and all sources must be sited).
Mathematical Responses: Students must show all the formulas and all procedures. Answers only will not be accepted, make sure to show all your work. Answers must be typed, double spaced, Times New Roman, 12 point font, with 1" margins).
For this assignment you will need to complete the following questions in essay format:
Chapter 8: Questions 8.2, 8.3 (page 283) and Problems 8.3, 8.6, 8.8 (pages 284-285)
QUESTIONS:
8.2 How has the global economy affected the importance of cost estimation and cost control for many project organizations?
8.3 Why is cost estimation such an important component of project planning? Discuss how it links together with the Work Breakdown Structure and the project schedule.
SOLVE PROBLEMS:
8.3 Calculate the fully loaded cost of labor for the project team using the following data. What are the costs for the individual project team members? What is the fully loaded cost of labor?
|
Name
|
Hours Needed
|
Overhead Charge
|
Personal Time Rate
|
Hourly Rate
|
Fully Loaded Labor Cost
|
|
Sandy
|
60
|
1.35
|
1.12
|
$18/hr
|
|
|
Chuck
|
80
|
1.75
|
1.12
|
$31/hr
|
|
|
Bob
|
80
|
1.35
|
- 0 -
|
$9/hr
|
|
|
Penny
|
40
|
1.75
|
1.12
|
$30/hr
|
|
|
Total Fully Loaded Labor Cost =
|
|
|
8.6 Using the following information about work package budgets, complete the overall time-phased budget for your project. (All cost figures are in $000s). Which are the weeks with the greatest budget expense?
Table for Problem 8.6
|
Task
|
Budget
|
Week 1
|
Week 2
|
Week 3
|
Week 4
|
Week 5
|
Week 6
|
Week 7
|
Week 8
|
|
A
|
5
|
3
|
2
|
|
|
|
|
|
|
|
B
|
8
|
1
|
4
|
3
|
1
|
|
|
|
|
|
C
|
12
|
|
2
|
7
|
3
|
|
|
|
|
|
D
|
7
|
|
|
3
|
3
|
1
|
|
|
|
|
E
|
14
|
|
|
|
5
|
5
|
2
|
2
|
|
|
F
|
6
|
|
|
|
|
|
1
|
2
|
3
|
|
Plan
|
52
|
4
|
8
|
|
|
|
|
|
|
|
Cumulative
|
|
4
|
12
|
|
|
|
|
|
|
1.For Problems 8 through 10, refer to the chart of learning curve coefficients (unit and total time multipliers) shown at the bottom of this page.
The simplified formula for calculating learning rate time using the table coefficients is given as:
TN=T1CTN=T1C
where
TN=Time needed to produce the nth unitT1=Time needed to produce the first unitC=Learning curve coefficientTN=Time needed to produce the nth unitT1=Time needed to produce the first unitC=Learning curve coefficient
2.8.8 It took MegaTech, Inc., 100,000 labor-hours to produce the first of several oil-drilling rigs for Antarctic exploration. Your company, Natural Resources, Inc., has agreed to purchase the fifth (steady state) oil-drilling rig from MegaTech's manufacturing yard. Assume that MegaTech experiences a learning rate of 80%. At a labor rate of $35 per hour, what should you, as the purchasing agent, expect to pay for the fifth unit?
Chapter 9: Questions 9.3, 9.5 (page 325) and Problems 9.5, 9.7, 9.10 (page 325-327)
9.3 List three methods for deriving duration estimates for project activities. What are the strengths and weaknesses associated with each method?
9.5 "The shortest total length of a project is determined by the longest path through the network." Explain the concept behind this statement. Why does the longest path determine the shortest project length?
PROBLEMS:
9.5 Construct a network activity diagram based on the following information:
|
Activity
|
Preceding Activities
|
|
A
|
-
|
|
B
|
-
|
|
C
|
A
|
|
D
|
B, C
|
|
E
|
B
|
|
F
|
C, D
|
|
G
|
E
|
|
H
|
F
|
|
I
|
G, H
|
9.10 An advertising project manager has developed a program for a new advertising campaign. In addition, the manager has gathered the time information for each activity, as shown in the following table.
|
Time Estimates (week)
|
|
Activity
|
Optimistic
|
Most Likely
|
Pessimistic
|
Immediate Predecessor(s)
|
|
A
|
1
|
4
|
7
|
-
|
|
B
|
2
|
6
|
10
|
-
|
|
C
|
3
|
3
|
9
|
B
|
|
D
|
6
|
13
|
14
|
A
|
|
E
|
4
|
6
|
14
|
A, C
|
|
F
|
6
|
8
|
16
|
B
|
|
G
|
2
|
5
|
8
|
D, E, F
|
a. Calculate the expected activity times (round to nearest integer).
b.Calculate the activity slacks. What is the total project length? Make sure you fully label all nodes in the network.
c. Identify the critical path. What are the alternative paths and how much slack time is associated with each non-critical path?
d.Identify the burst activities and the merge activities.
e. Given the activity variances, what is the likelihood of the project finishing on week 24?
f. Suppose you wanted to have a 99% confidence in the project finishing on time. How many additional weeks would your project team need to negotiate for in order to gain this 99% likelihood?