1.(TCO B) Estimating Procedures (a) You are the project manager fo

1.(TCO B) Estimating Procedures (a) You are the project manager fo

Apr 10, 2020 | Business

1.(TCO B) Estimating Procedures (a) You are the project manager fo

1.(TCO B) Estimating
Procedures

(a) You are the project manager for a new high rise office building. You
are working on estimating the exterior landscaping for the new
development. The landscaping requires the use of a special landscape
stone. Based on recent experience the most likely price for the material is
$120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability.
The most optimistic price estimate is $80.00/ton, and the most pessimistic
estimate is $180.00/ton.
What is the expected price of the material?
Round to two decimal places.

(b) In addition to price fluctuations, you are also uncertain of how much
of the material will be required for the project. Scope changes and site
conditions will affect the amount of material actually needed. The most
likely amount required is 36 tons. However, as little as 28 tons, and as
much as 56 tons might be required.
What is the expected amount of the material
needed for the project?

(c) Using the estimates from (a) & (b), what is the expected cost for
the material over the life of the project using the COMPLEX method?
(Points
: 30)

2.(TCO
B) Contingency Allowance:

ITEM

COST
ESTIMATE

TYPE
OF ESTIMATE

Case

$20.00

Order of Magnitude

Handset

$12.00

Definitive

Labor

$2.00

Definitive

Speaker

$2.50

Budget

Mouthpiece

$5.50

Budget

Antenna

$1.70

Definitive

Keypad

$3.00

Order of Magnitude

Circuit boards (handset)

$6.50

Budget

Circuit boards (base unit)

$8.50

Definitive

Battery

$1.20

Order of Magnitude

Charger

$16.00

Order of Magnitude

Total cost

$78.90

The estimating department currently defines
estimate accuracy as follows:

Order of Magnitude

-25%, +85%

Budget

-10%, +25%

Definitive

-5%, +10%

(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The
markup demanded by retailers is 50%. Based on cost factors, write a brief
rationale for acceptance or rejection of the project, including any
recommendations you have regarding the cost estimates. (Points : 30)

3.(TCO C) Work Breakdown
Structure WBS

Eurocash has decided to develop a mutual fund comprised almost entirely
of East European companies with a high growth potential. The
process of developing a new mutual fund begins with concept development,
which includes establishing a clear definition of the project’s objectives
that is agreed upon by senior management and developing a marketing
strategy.

A business analysis is then performed that
includes assessments of market feasibility, internal feasibility (budgetary
resource requirements), and regulatory feasibility.

If the proposed fund passes the business
analysis, the fund design is developed.

The design process consists of product design,
service design, internal review and authorization, and SEC registration
(assuming a U.S. market).

As the design process nears completion,
generally recognized as a positive preliminary review by the SEC, employee
training is performed.

After completion of the employee training
and final regulatory approval, the product is launched, and post-launch
reviews are conducted at predetermined intervals.

Prepare a work breakdown structure (WBS) for this project with activities
corresponding to a two level task and sub-task hierarchy. Provide
columns showing the WBS code and activities. Number and indent the WBS
codes so that the level of each activity is clearly identified. (Points
: 30)

4.(TCO
A) Budgeting processes and techniques

A company builds custom yachts for the high-end boating market. They
develop and build these custom designs as a single individualized
unit. The orders are generated by the marketing and sales department
with help from the owners, who participate in the management of the
company. Each new order is assigned to a project team which starts by
making an estimate to the customer before a contract is signed. The project
teams have a great deal of experience in these projects.

As would be expected, the owners are hands-on and have opinions on the
estimates. The marketing folks also provide suggestions on what the
customer is willing to pay.

What are some processes and techniques that you would suggest to make the
budgeting process work well? Start with general but also provide some
specifics as relate to creating detailed project budgets. Be sure to
justify why you think your recommendations will work. (Points : 30)

1.(TCO
C) Schedule Crashing

Using the network below and the additional information provided, find:

(a) The crash cost per day per activity.
(b) Which activities should be crashed to meet a project deadline of 13
days at minimum cost? State the number of days you will crash each
activity.
(c) What is the additional cost to crash the project?

Critical path = B-C-D = 15

.jpg”>

Activity

Normal
time

Normal
total cost

Crash
time

Crash
total cost

300

360

250

330

400

550

150

250

(Points
: 30)

2.(TCO
E) Responsibility Assignment Matrix

There are many stakeholders and participants in projects, and they often
get confused as to who is doing what. You decide to use a Responsibility
Assignment Matrix (RAM) to help with this situation. Your manager is
wondering why you are spending your time on this tool when you already have
resources assigned to tasks in your schedule.

(a) What do you tell management to justify your time creating the RAM?
(b) What are the best ways to create the RAM? (Points : 30)

3.(TCO
E) Resource Allocation/Leveling

The following data were obtained from an in-house MIS project:

Activity

Duration

Predecessors

Personnel
/ Cost

3
Days

—

1
Systems Analyst/$260 day

6
Days

—

2
Programmers/$200 day each

3
Days

2
Programmers/$200 day each

3
Days

2
Hardware Specialists/$280 day each

3 Days

1
Hardware Specialist/$280 day

2
Days

C,
D

1
Test Engineer/$300 day

Personnel
Available

Quantity

Systems
Analysts

Programmers

Hardware
Specialists

Test
Engineers

The software manufacturer has only the above
personnel available for the project. Additional personnel can be hired from
an agency at a 90% cost premium if needed.

(a) Identify any resource conflicts in the above project. State the
activities involved, the time frame of the conflict(s), the personnel in
conflict and the number of people involved.

(b) Note that operations cannot be split; what is the least cost method of
resolving the conflict(s), assuming the project duration must not be
extended? What additional cost, if any, will be incurred?
(Points
: 30)

1.(TCO
G) Estimate At Completion forecast (EAC)

A project has been estimated to take eight weeks and cost $65,000. The
critical path is A – D. Cost and earned value data are provided
below:

Budget

BCWP

– BCWS

SPI

– ACWP

CPI

$8,500

$ –

1.00

$7,500

$1,000

1.13

$15,000

$ –

1.00

$13,000

$2,000

1.15

$6,800

$2,530

$2,700

($170)

0.94

$4,000

($1,470)

0.63

$18,000

$900

$3,000

($2,100)

0.30

$1,200

($300)

0.75

$16,000

$ –

Project:

$64,300

26,930

29,200

($2,270)

0.92

$25,700

$730

1.05

(i) Calculate the Estimate At Completion (EAC)
considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as
it has to date.
(iii) Using either of these two numbers discuss the status of the project
and if the project manager needs to take corrective actions. Justify your
comments.
(Points
: 30)

2.(TCO
D) PMIS and cost accounting

Monitoring of projects and especially using an earned value system will
give a project manager the ability to exercise proper project control. The
Earned Value process requires detail data which we can obtain from proper
Project Cost Accounting System (PCAS).

(a) What are the primary types of data we require for Earned Value
Analysis?
(b) What are some of the benefits of PCAS? (Points : 30)

3.(TCO
F) Earned Value

The following data were obtained from a project to design a new software
package:

Activity

Duration

Predecessors

Budgeted
Cost

3
Days

—

$8,320

6
Days

—

$11,740

4
Days

$11,550

2
Days

C,
B

$7,850

3
Days

$10,750

2
Days

D,
E

$8,600

At the end of day 5, the status of the project is as follows:

Activity

%
Complete

Actual
Cost

100%

$7,200

50%

$6,370

25%

$8,250

80%

$8,560

(a) Calculate the Cost and Schedule Variances
and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.

(b) Write a brief analysis of the status of the project at this time,
including task level, project level, and critical path.
(Points
: 30)

(b)
Write a brief analysis of the status of the project at this time, including
task level, project level, and critical path.

1.(TCO B) Estimating
Procedures

(a) You are the project manager for a new high rise office building. You
are working on estimating the exterior landscaping for the new
development. The landscaping requires the use of a special landscape
stone. Based on recent experience the most likely price for the material is
$120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability.
The most optimistic price estimate is $80.00/ton, and the most pessimistic
estimate is $180.00/ton.What is the expected price of the material?
Round to two decimal places.

(b) In addition to price fluctuations, you are also uncertain of how much
of the material will be required for the project. Scope changes and site
conditions will affect the amount of material actually needed. The most
likely amount required is 36 tons. However, as little as 28 tons, and as
much as 56 tons might be required.What is the expected amount of the material
needed for the project?

(c) Using the estimates from (a) & (b), what is the expected cost for
the material over the life of the project using the COMPLEX method?(Points
: 30)2.(TCO
B) Contingency Allowance:

You are a project manager for the development of Motorola’s new 4G, HD,
Touch Screen Cell Phone which is supposed to take the cell phone industry
by storm. Listed below are the initial cost estimates for the materials and
labor for one of the phones:ITEMCOST
ESTIMATETYPE
OF ESTIMATECase$20.00Order of MagnitudeHandset$12.00DefinitiveLabor$2.00DefinitiveSpeaker$2.50BudgetMouthpiece$5.50BudgetAntenna$1.70DefinitiveKeypad$3.00Order of MagnitudeCircuit boards (handset)$6.50BudgetCircuit boards (base unit)$8.50DefinitiveBattery$1.20Order of MagnitudeCharger$16.00Order of MagnitudeTotal cost$78.90NAThe estimating department currently defines
estimate accuracy as follows:Order of Magnitude-25%, +85%Budget-10%, +25%Definitive-5%, +10%
(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The
markup demanded by retailers is 50%. Based on cost factors, write a brief
rationale for acceptance or rejection of the project, including any
recommendations you have regarding the cost estimates. (Points : 30)3.(TCO C) Work Breakdown
Structure WBS

A business analysis is then performed that
includes assessments of market feasibility, internal feasibility (budgetary
resource requirements), and regulatory feasibility.
If the proposed fund passes the business
analysis, the fund design is developed.
The design process consists of product design,
service design, internal review and authorization, and SEC registration
(assuming a U.S. market).
As the design process nears completion,
generally recognized as a positive preliminary review by the SEC, employee
training is performed.
After completion of the employee training
and final regulatory approval, the product is launched, and post-launch
reviews are conducted at predetermined intervals.
Prepare a work breakdown structure (WBS) for this project with activities
corresponding to a two level task and sub-task hierarchy. Provide
columns showing the WBS code and activities. Number and indent the WBS
codes so that the level of each activity is clearly identified. (Points
: 30)4.(TCO
A) Budgeting processes and techniques

As would be expected, the owners are hands-on and have opinions on the
estimates. The marketing folks also provide suggestions on what the
customer is willing to pay.

1.(TCO
C) Schedule Crashing

Using the network below and the additional information provided, find:

Critical path = B-C-D = 15

.jpg”>ActivityNormal
timeNormal
total costCrash
timeCrash
total costA43003360B32501330C74004550D51503250(Points
: 30)2.(TCO
E) Responsibility Assignment Matrix

(a) What do you tell management to justify your time creating the RAM?
(b) What are the best ways to create the RAM? (Points : 30)3.(TCO
E) Resource Allocation/Leveling

The following data were obtained from an in-house MIS project:ActivityDurationPredecessorsPersonnel
/ CostA3
Days–1
Systems Analyst/$260 dayB6
Days–2
Programmers/$200 day eachC3
DaysA2
Programmers/$200 day eachD3
DaysB2
Hardware Specialists/$280 day eachE3 DaysB1
Hardware Specialist/$280 dayF2
DaysC,
D1
Test Engineer/$300 day
Personnel
AvailableQuantitySystems
Analysts1Programmers4Hardware
Specialists2Test
Engineers1The software manufacturer has only the above
personnel available for the project. Additional personnel can be hired from
an agency at a 90% cost premium if needed.

(a) Identify any resource conflicts in the above project. State the
activities involved, the time frame of the conflict(s), the personnel in
conflict and the number of people involved.

1.(TCO
G) Estimate At Completion forecast (EAC)

A project has been estimated to take eight weeks and cost $65,000. The
critical path is A – D. Cost and earned value data are provided
below: EVPV AC BudgetBCWP – BCWSSVSPI – ACWPCVCPIA$8,500$8,500$8,500$ -1.00$7,500$1,0001.13B$15,000$15,000$15,000$ -1.00$13,000$2,0001.15C$6,800$2,530$2,700($170)0.94$4,000($1,470)0.63D$18,000$900$3,000($2,100)0.30$1,200($300)0.75E$16,000$0$0$ – $0$ – Project:$64,30026,93029,200($2,270)0.92$25,700$7301.05(i) Calculate the Estimate At Completion (EAC)
considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as
it has to date.
(iii) Using either of these two numbers discuss the status of the project
and if the project manager needs to take corrective actions. Justify your
comments.(Points
: 30)2.(TCO
D) PMIS and cost accounting

(a) What are the primary types of data we require for Earned Value
Analysis?
(b) What are some of the benefits of PCAS? (Points : 30)3.(TCO
F) Earned Value

The following data were obtained from a project to design a new software
package:ActivityDurationPredecessorsBudgeted
CostA3
Days–$8,320B6
Days–$11,740C4
DaysA$11,550D2
DaysC,
B$7,850E3
DaysA$10,750F2
DaysD,
E$8,600

At the end of day 5, the status of the project is as follows:Activity%
CompleteActual
CostA100%$7,200B50%$6,370C25%$8,250D0%$0E80%$8,560F0%$0(a) Calculate the Cost and Schedule Variances
and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.

(b) Write a brief analysis of the status of the project at this time,
including task level, project level, and critical path.(Points
: 30)(b)
Write a brief analysis of the status of the project at this time, including
task level, project level, and critical path.

1.(TCO B) Estimating Procedures (a) You are the project manager fo

1.(TCO B) Estimating Procedures (a) You are the project manager fo

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