Devry PROJ 592 Final Exam Latest

(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)

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:

The estimating department currently defines estimate accuracy as follows:

(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)

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)

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)

Answer –

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

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(Points : 30)

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)

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

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)

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:

(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)

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)

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

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

(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)