Assignment2,Chapter11, Exercise 4

Chapter11, Exercise 4
Suppose your organization is deciding which of four projects to bid on. Information on each is in the table below. Assume that all up-front investments are no to be recovered, so they are shown as a negative profits. Write a few paragraph on which projects you will bid on. Be sure to use the EMV information and your personal risk tolerance to justify your answer.

Answer:
In a course of Bidding, there may be different projects in hand, all the project looks same. It is very difficult to identify the best project to bid. There are certain calculations, whose result can help to identify the best project. Process includes Quantitative risk analysis like decision tree and expected monetary value (EMV). EMV is a product of risk event probability and the risk event's monetary value.

Project 1's EMV= $60000-$25000= $35000

Project 2's EMV=$30000+$20000-$18000= $32000

Project 3's EMV=$14000-$1500= $12500

Project 4's EMV= $12000+$9000+$4000-$10000= $15000

Since the Project 1 has the greatest value of EMV which is equals to $35000, therefore Project 1 the best. It is beneficial for the organization to bid in the Project 1.

Assignment2,Chapter12 Exercise 3

Chapter 12Exercise 3

Suppose your company is trying to decide whether it should buy special equipment to prepare some of its high quality publications itself or lease the equipment from another company. Suppose leasing the equipment cost $240 per day. If you decide to purchase the equipment, the initial investment is $6800 ,and operations will cost $70 per day. After how many days will the lease cost be the same as the purchase cost for the equipment? Assume your company would only use this equipment for 30 days. Should your company buy the equipment or lease it?
Ans :

Calculation for leasing the equipments,
Cost Per day=$ 240
Number of days to use equipments= 30
Therefore the total cost of leasing the equipment= 30* $240
=$7200


Calculation for buying decision,

Initial investment=$6800
operation cost per day=$70
Number of days to use equipments= 30
Total Operation Cost for the project=$70*30
=$2100
Therefore the total cost for the project if the equipment is purchased is=$6800+$2100
=$8900

Leasing cost and purchase cost becomes almost equal in= $8900/$240 days
=37.08 days
approx=37 days

From the calculations done, according to the above scenario for the company, it can be clearly noticed that the company is able to save its cost, if it decides to lease the equipment from the other company for the high quality publications. As the cost for it is only $7200.
But in case of the purchase of the equipment it has to spend $8900 to carry out the same project for 30 days. If this amount is utilized for leasing the equipment then the company has the opportunity to use that equipment for about 37 days and can add more profit.

Assignment2, Chapter10, Excercise3

Chapter 10, Exercise 3

How Many Different communication channels does a project team with six people have?How many more communications channels would there be if the team grew to ten people.?

Ans:
Communication channel is a very important part of the project. If the communication channel is good then automatically the flow of information is also good. Flow of information become complex with the increasing number of people. The complexity increases because the number of communication channel increases with the number of people. Number of communication channels can be calculated with respect to the number of people.

The formula Says,
Number of communications channels = n(n-1)/2

Where n is the number of People involved.
Here given,
number of people n = 6
Now,
According to the formula,
Number Of Communication channels= 6(6-1)/2
=(6*5)/2
=30/2
=15
therefore the project team with 6 members have 15 communication channels.
If the number of the people in a project team increases from 6 to 10 then, n =10,
According to the formula,
Number of communication channel=10(10-1)/2
=(10*9)/2
=90/2
=45
If the team grew to ten people then there will be 45 communication channels.

Assignment2 Chapter9 Excercise1

Chapter9 Excercise1
Your company is planning to launch an important new project starting January 1, which will last one year. Your estimate that you will need one full-time project manager, two fulltime business analysts for the first six months, two full-time senior programmers for the whole year, four full-time junior programmers for the months of July, August, and September, and one full-time technical writer for the last three months. Use Microsoft Excel to create a stacked column chart showing a resource histogram for this project, similar to the one shown in Figure 9-6. Be sure to include a legend to label the types of resources needed. Use appropriate titles and axis labels.

Assignment2, Chapter 8, Exercise 2

Chapter 8, Exercise 2

Create a Pareto Diagram based on the information in the table below। First, create a spreadsheet in the Excel, using the data in the table below। List the most frequent customer problem first। Add a column called “% of Total” and another one called “cumulative %”। Then enter formulas to calculate those items। Next, use the Excel Chart Wizard to create a Pareto diagram based on this data। Use the line-Column on 2 Axis custom type chart so your resulting chart looks similar to the one in figure 8-1.

Ans:According to the given information,Pareto Diagram is constructed. A table with a % of Total and cumulative % column is also included. Pareto Diagram is a way to identify the quality problem in the system. It is also sometimes reffered as 80-20 rule, that means 80% of the problem is due to the 20% of the causes. This pareto diagram will help to identify and priotize the problems