Information Technology Project Management
9th Edition
ISBN: 9781337101356
Author: Kathy Schwalbe
Publisher: Cengage Learning
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Expert Solution & Answer
Chapter 7, Problem 4DQ
Explanation of Solution
Example of preparing rough order:
- In order to provide new mobile devices for 50 people, we can have a cost estimate of around $25,000.
- It is important to have a detailed and accurate estimation rather than using a rough estimate.
- A rough order of magnitude estimate can be done 3 or more years earlier before completing the project.
- In order to take purchasing decisions on any project, we need to make fixed estimates for final project costs.
- For example, if projects require 1000 mobiles, initially they are planning to buy 50 mobiles in the next few months.
- For this we need a clear cost estimate for evaluating supplier proposals.
- The accuracy of this estimate is 5 percent loss or 10 percent more than the definitive estimate.
Examples of using tools or techniques for creating a cost estimate:
We have many tools or techniques to calculate ROM estimate. These tools and techniques are as follows:
Analogous estimate:
It uses the actual cost of mobile devices that have been purchased in any other organization or institutes...
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Students have asked these similar questions
Prepare and print a one-page cost model for the project, similar to the one provided in Figure 7-2. Use the following WBS, and be sure to document assumptions you make in preparing the cost model. Assume a labor rate of $100/hour for the project manager and $60/hour for other project team members. Assume that none of the work is outsourced, labor costs for users are not included, and there are no additional hardware costs. The total estimate should be $200,000. 1. Project management 2. Requirements definition
Give examples of when you would prepare rough order of magnitude (ROM), budgetary, and definitive cost estimates for an IT project.
At Riverside Financial, where you work as a project manager, you have been asked to conduct
user training sessions during the implementation phase for a new information system. You must
develop a specific schedule for the tasks (the estimated task duration for each is shown in
parentheses):
First, you need to send an e-mail message to all department managers announcing the training
sessions (3 days). After the e-mail message goes out, two tasks can begin at the same time: You
can develop the training material (7 days) and confirm arrangements for the training facility you
plan to use (15 days). As soon as the training material is complete, you can work on two tasks at
once: Arrange to have copies of handout material printed (7 days) and develop a set of PowerPoint
slides (8 days). When the PowerPoint slides are ready, you conduct a practice training session with
the instructor who will assist you (3 days). Finally, when the practice session is over, the handout
material is ready, and…
Chapter 7 Solutions
Information Technology Project Management
Knowledge Booster
Similar questions
- A work breakdown structure, project schedule, and cost estimates are outputs of the ____________ process. initiating planning executing monitoring and controlling closingarrow_forwardYou have been made project coordinator for an upcoming tourism workshop to be held in the island of Anguilla. Local, regional and international participants will be in attendance. You have invited 25 participants and 12 presenters as part of your planning. In addition, there are several other tasks to be performed: i. Letters of invitation are to be sent with relevant information. ii. Overall estimates for workshop funding need to be calculated. iii. During the workshop, all attendees and equipment requests will be documented for reporting purposes and also to be used for future analysis when compared with other possible workshops. iv. Final reports will be written to document those persons who attended the workshop as well as to compare the pre- and post-funding estimates. v. Extra expenses incurred at the workshop are also to be noted. vi. A brief presentation highlighting various aspects of Anguilla’s culture and island is to be made to all participants at the beginning of the…arrow_forwardSteps that can be taken to crash the project to the shortest time at the lowest cost.arrow_forward
- Exactly what is the function of cost accounting in the management of projects?arrow_forwardExplain how requirements gathering and project scope definition are integral to this phase.arrow_forwardAn IT project's ROM, budgeted, and final cost estimates should be given examples on when to develop them. Give an example of how comparable, parametric, and bottom-up cost estimation methodologies might be used.arrow_forward
- A team of 9 engineers must be split in three groups of 4, 3, and 2 engineers to complete different parts of a project. In how many ways can the team manager split the team considering that each engineer must be in exactly one team? Explain your solution (the rules and theorems you used) and write all your work, including formulas, toarrow_forwardFor the information shown in table below, 1- Draw the network diagram by using AOA method to estimate the project time and prepare a table containing ES, EF, LS, LF, TF, FF, and critical path. 2- Allocate the resources required to complete the project on earliest and latest start time and then identify the most reasonable of them, and why? Activity Duration Preceded by No. resources A 3 2 B 5 2 C 6 2 D 5 A,B 3 E 4 3 1 4 B 2 G 4 D D,F J 3 E,I,J 1arrow_forwardWhen using a project triangle to illustrate conflicting priorities, Microsoft suggests that if the problem is in the fixed leg, work on the other two legs. For example, if the project must not exceed the budget and it is starting to run over, adjust the schedule, or the scope, or both. However, if the problem is not related to the fixed leg, the adjustment might have to be in the remaining leg. So, when faced with an inflexible budget (fixed leg) and the schedule is slipping (problem leg), the project’s scope (remaining leg) might have to be adjusted. Why is explaining this situation to management sometimes a very difficult task for the systems analyst?arrow_forward
- Justify the use of Earned Value Management (EVM) to control costs and monitor project progress, and hypothesis as to why it is not used more often. For example, what are some general rules of thumb for deciding whether or not a cost fluctuation, a schedule variation is positive or negative?arrow_forwardGantt chart is widely used to illustrate the planning and scheduling of a project. Show a common use of Gantt Chart in a project of your choice from inception to commissioning.arrow_forwardProject expenditure management may be overlooked by many IT professionals, which may have a negative influence on the project's completion. Explanation of the budgeting process for a new project. What is a "sunk cost" and how do you define it? Both IT and human sunk costs should be included in the examples. What is it about them that makes it so difficult to ignore them?arrow_forward
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