Assignment 2

Topics: Project management, Critical path method, Variable cost Pages: 59 (13545 words) Published: July 29, 2012
 Haeryip Sihombing 

1. Identify and briefly describe the five commonly traded organizational currencies. • • • • • Task-related; the ability to contribute to others accomplishing their work, Position-related; the ability to enhance others' positions within their organization, Inspiration-related; the ability to enhance people's desire to make a difference and add meaning to their lives, Relationship-related; the ability to form relationships that transcend normal professional boundaries and extend into friendship, Personal-related; the extent to which one can help others feel a sense of importance and personal worth.

2. Identify and compare the old-fashioned view of managing projects and the new perspective of managing projects. The old-fashioned view of managing projects emphasized directing and controlling subordinates; the new perspective emphasizes managing project stakeholders and anticipating change as the most important jobs.

3. Under what conditions would the top-down approach to estimating project times and costs be the best choice? In the early stages of a project to help develop the initial plan, in making strategic decisions, in projects of high uncertainty, in small internal projects, or in projects with an unstable scope.

4. Under what conditions would the bottom-up approach to estimating project times and costs be the best choice? When low cost, efficient estimates are needed, when time and cost are important, when working on a fixed price contract, or when the customer wants details.

5. In the network computation process what is a forward pass and what three things does it determine? Starting with the first activity, each path is traced forward through the network, adding times until the end of the project. This determines 1. how soon each activity can start, 2. how soon each activity can finish, and 3. how soon the entire project can be completed.

6. What is a risk profile and what benefits does it provide to risk management? A risk profile is a list of questions that address traditional areas of uncertainty on a project. The questions have been developed and refined from previous, similar projects. These profiles are generated and maintained by the project office and are updated and refined during the life of the project. This historical file assists in identifying risks for future projects.


 Haeryip Sihombing 

7. What is Change Control Management and what function does it perform? Change Control Management is the formal process for making and tracking changes once a project has started. Any changes must be detailed and accepted by the project team. Risks associated with making changes are thus assessed and documented.

8. Why would a project manager use heuristics rather than a mathematical solution to level resources? Mathematical models work on small networks and a small number of resources. Larger projects have massive data requirements. Heuristics tend to yield a good solution without the heavy burden imposed by math models.

9. Identify and briefly describe five reasons for attempting to reduce the duration of a project. 1. imposed durations made by top management, 2. market demands created by competition and rapid technology advances, 3. incentive contracts that pay for early project completion, 4. recovery of unforeseen project delays, 5. to reduce project costs by reducing charges created by high overhead costs, 6. to reassign key resources to other projects.

10. Why is the project duration with the lowest direct costs seldom the optimum duration for a project? Indirect costs, those accumulating each day, will at some point outweigh the reduction in direct costs leading to an increase in total costs. The Project Cost-Duration graph is a model that demonstrates this.


 Haeryip Sihombing 

Problem Statement 1 Prem Binny Appliances wants to establish an assembly line to manufacture its new product, the Mini-Me Microwave...
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