PROJ 592 Final Exam 1

PROJ 592 Final Exam 1
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 $60.00/ton, and the most pessimistic estimate is $160.00/ton. What is the
expected price of the material?
(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 or 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?

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:
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.

3.(TCO C) Work Breakdown Structure WBS
Speedy Computer, Inc. (SCI) is going to introduce its first laptop computer.
Although SCI recognizes that it is a late entry into the market, it believes
that there is room for an inexpensive product at the low end of the market. Its
design process will start with a conceptual design performed concurrently with
the disassembly and analysis of a select group of the competitor’s products.
The best components consistent with the conceptual design will then be used as
the basis for the working design.
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.

4.(TCO A) Budgeting processes and techniques
A company modifies production automobiles to create custom hybrid vehicles for
the high-end auto enthusiast market. They develop and build these custom
designs as a single unit or at times in multiples of as many as 20 for larger
orders. The orders are generated by the marketing department with help
from the owners who participate in the management of the company.
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.

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?

2.(TCO E) Responsibility Allocation Matrix
Projects often cross many functional boundaries with team members reporting to
different functional managers. This cross functional aspect can create problems
with roles and responsibilities. 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) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM?

3.(TCO E) Resource Allocation/Leveling
The following data were obtained from a project to design a new software
package: The software manufacturer has only the above personnel available for
the project. Additional personnel can be hired from an agency at an 80%
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 can be split if required: 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?

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: (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.

2.(TCO D) PMIS and cost accounting
Effective project monitoring requires access to projects data, and therefore a
Project Cost Accounting System (PCAS) is essential.
(a) What are the primary types of data collected by such a system?
(b) What are some of the benefits of PCAS?

3.(TCO F) Earned Value
The following data were obtained from a project to design a new software
package:
(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.

PROJ
592 Final Exam 2
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?
(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?

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: 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 75%. Based on cost factors, write a brief
rationale for acceptance or rejection of the project, including any
recommendations you have regarding the cost estimates.

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 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.

4.(TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. 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.

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?

2.(TCO E) Responsibility Allocation Matrix
Projects often cross many functional boundaries with team members reporting to
different functional managers. This cross functional aspect can create problems
with roles and responsibilities. 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) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM?

3.(TCO E) Resource Allocation/Leveling

The following data were obtained from a project to design a new software
package:
The software manufacturer has only
the above personnel available for the project. Additional personnel can be
hired from an agency at an 80% 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 can be split if required: 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?

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:
(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.

2.(TCO D) PMIS and cost accounting
An Earned Value system can be a very effective way to monitor projects.
However, Earned Value Analysis requires a Project Cost Accounting System
(PCAS).
(a) What are some of the benefits of PCAS?
(b) What are some of the software solutions for establishing a PCAS?

3.(TCO F) Earned Value
The following data were obtained from a project to design a new software
package:
(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.