Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9781259666094
Author: Erik W. Larson, Clifford F. Gray
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 3E
Exercise Figure 5.1 is a project WBS with cost apportioned by percentages. If the total project cost is estimated to be $600,000, what are the estimated costs for the following deliverables?
a. Design
b. Programming
c. In-house testing
What weaknesses are inherent in this estimating approach?
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Students have asked these similar questions
1. Analyze the cost variance metric, and include the equation and what the acronyms stand for.
1. Describe one project software program that could help a project manager control costs.
Justify the use of earned value management (EVM) to control expenses and monitor the effectiveness of a project, and speculate as to why it is not used more often. How can one determine if a cost variation, a schedule variance, a cost performance index, or a schedule performance index is favorable or unfavorable? What are some general criteria to follow?
please help, project management. I need part D,Eand 2Â
1) Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV=$22,000 EV=$20,000 AC=$25,000 BAC=$120,000
a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? Show your calculations.
b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain.
c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain.
d) Use the SPI to estimate how long it will take to finish this project.
e) Sketch the earned value chart for this project.
2) Write a one-page summary explaining how is project cost management different when using an Agile approach? Make sure to document any cited…
Chapter 5 Solutions
Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 5.1A - How many labor hours should the eighth satellite...Ch. 5.1A - How many labor hours for the whole project of...Ch. 5.1A - What price would you ask for the project? Why?Ch. 5.1A - Midway through the project your design and...Ch. 5.1A - Near the end of the project, Deutsch Telefon AG...Ch. 5 - Why are accurate estimates critical to effective...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - What are the major types of costs? Which costs are...Ch. 5 - Why is it difficult to estimate mega project...
Ch. 5 - Define what a white elephant is in project...Ch. 5 - Calculate the direct cost of labor tor a project...Ch. 5 - Mrs. Tolstoy and her husband, Serge, are planning...Ch. 5 - Exercise Figure 5.1 is a project WBS with cost...Ch. 5 - Firewall Project XT. Using the complexity...Ch. 5 - At this point, what would you do if you were the...Ch. 5 - Prob. 5.1.2CCh. 5 - What estimating techniques should be used for a...Ch. 5 - Assume you are either Mike or Josh; how would you...Ch. 5 - Prob. 5.2.2CCh. 5 - After cost, what other factors should be...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- After six months of work on the project’s site, your company collected the following information relating to work done so far on the project BAC=$156,478.00, planned value=$95,565.24, Earned value =$92, 985.56, Actual cost =$95986.60. Calculate the cost and schedule performance indices and interpret your resultsarrow_forwardCan you help me with this problem   The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential projects. Following are five projects under consideration.   1. Using the scoring matrix in the following chart, which project would you rate highest? Lowest?   2. If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection change? What are the three highest-weighted project scores with this new weight?   3. Why is it important that the weights mirror critical strategic factors?arrow_forwardGive an example of a project which is a failure in cost estimation and give suggestions for making it appropriate.arrow_forward
- Use the information in this table to calculate the weighted score for project 2 Criteria Weight Project1 Project2 Project3 Project4 Supports of key business objectives 5% 90 90 50 20 Has strong internal sponsor 10% 70 90 50 20 Has strong customer support 5% 50 90 50 20 Realistic level of technology 10% 25 90 50 70 Can be implemented in one year or less 30% 20 20 50 90 Provides positive NPV 10% 50 70 50 50 Has low risk in meeting scope, time, and cost goals 30% 20 50 50 90arrow_forwardThe optimistic cost for a project is $6,000. The pessimistic cost estimate is $24,000 and the most likely cost is $12,000. The project uses 3 sigma estimates. Using PERT what is the range of this estimate?arrow_forwardgiven the following information for a 1-year project, answer the following questions. Assume you have actual and earned value data at the end of the second month. Recall that PV is the plan value, Evie is the earned value, AC is the actual cost, and BAC is the budget at completion.pv =$ 23,000ev = 20,000ac= 25,000bac = 130,000a. what is the cost variance, schedule variance, cost performance index CPI and schedule performance index SPI for the project?B. how is the project progressing? Is it ahead of schedule or behind schedule? Is it under budget or over budget?C. use the CPI to calculate the estimate at completion EAC for this project.d. use the SPI to estimate how long it will take to finish this project.e. sketch the earned value chart for this project, use the figure below as a guide. Assume the data for month one is half of the values given for Pv, Ev and ac at the end of month 2arrow_forward
- which feasibility measure estimates the cost/benefit of the project and how it is measured?arrow_forwardplease help, project management 1) Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV=$22,000 EV=$20,000 AC=$25,000 BAC=$120,000 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? Show your calculations. b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain. c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain. d) Use the SPI to estimate how long it will take to finish this project. e) Sketch the earned value chart for this project. 2) Write a one-page summary explaining how is project cost management different when using an Agile approach? Make sure to document any cited references.arrow_forwardplease help, project management  1) Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion. PV=$22,000 EV=$20,000 AC=$25,000 BAC=$120,000 a) What is the cost variance, schedule variance, cost performance index (CPI), and schedule performance index (SPI) for the project? Show your calculations. b) How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? Explain. c) Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? Explain. d) Use the SPI to estimate how long it will take to finish this project. e) Sketch the earned value chart for this project. 2) Write a one-page summary explaining how is project cost management different when using an Agile approach?arrow_forward
- Project selection criteria are typically classified as _? Select one: a. Short-term and long-term b. Strategic and tactical c. Financial and non-financial O d. Required and optionalarrow_forwardIn order to promote the College of Engineering, IT and Environment, the college asks you to organize an information session to the prospective students and parents (which can be considered as a project). The project is expected to be completed within 3 weeks and this event should be held in CDU Casuarina campus. The project budget is AUD 3,000.00. Answer the following questions (you can make assumptions in answering the questions). Question 1Â c) Assess the risks. d) Explain what can be considered as quality metrics for this projectarrow_forwardIf earned value management (EVM) is so beneficial, why is it not used more often? Explain how it may be used to track costs and evaluate the success of a project. When evaluating cost variation, schedule variance, cost performance index, and schedule performance, what criteria should be used as a starting point?arrow_forward
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