PROJ 592 Project Cost and Schedule

Topics: Project management, Work breakdown structure, Cost accounting Pages: 5 (2102 words) Published: September 22, 2014
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PROJ 592 Project Cost and Schedule
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...
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