Earned Value

Project C: This project will be a scale-up of a project done last year. All the same processes will be used. The costs for the material and other resources should be scalable based on last year’s costs.

Choose from the list of problem scenarios below. Using the steps involved in problem solving that were discussed in this chapter, describe how you would go about solving this problem.

2. Architect paid $250K and has completed an unknown, but small amount of renovation work so far. He has not invested anywhere near $150K into renovations

P = F(1 + i)-N where i is 15% as mentioned in the case suggestions and N is 8 as we found above, and F is $1.2375B

c) The present value of $500 to be received in one year when the opportunity cost rate is 8 percent (discounting):

From the e-Activity, compare the components of the incentive type of contract mentioned in the article that you read against the incentive contracting types referenced in Chapter 5 of your text. Expand on the difference(s) that you have found and give your opinion as to which component makes more sense

(b) Which activities should be crashed to meet a project deadline of 12 days at minimum cost?

Problem 12 (page 82) Table 2.5 on page 82 contains information about an environmental clean-up project. Shorten the project three weeks by finding the minimum-cost schedule. Assume that project indirect costs and penalty consts are negligible. Identify activities to crash while minimizing the additional crash costs. Solution: AON Diagram for the environmental project:

The team leaders' projections show that the cost of starting the race under normal circumstances would be $3,152,000 (see table 2), however, normal conditions also dictate that the project will require 50 weeks to finish. As with any solid plan, the team leaders have also calculated crash times and costs as backup options in case the project experiences delays, or in this circumstance an imposed deadline; the start of the race 45 weeks from now. Analyzing crash times and costs we see that if each activity were crashed the project could be finished in 42 weeks, however, the budget would skyrocket to $4.952 million (see table 5). Therefore, the team will need to analyze the project network and its critical path to determine which individual activities can be crashed while maintaining the integrity of the budget.

TABLE OF CONTENTSQuestion 1a ……………………………………………………………………………………………………………………….3b ……………………………………………………………………………………………………………………….3c ……………………………………………………………………………………………………………………....4Question 2 …………………………………………………………………………………………………………………………………5Question 3 …………………………………………………………………………………………………………………………………6Question 4 …………………………………………………………………………………………………………………………………6References …………………………………………………………………………………………………………………………………7QUESTION 1a.Calculate the cost of the activities for France.

Placing the events in a Gantt chart will help clarify and organize the events, the order in which they will occur, as well as any preceding activities that must be accomplished. Table 5 shows the project 's normal conditions, their timeframes and associated costs. As noted, normal conditions require 50 weeks to complete and therefore, cannot be used. Table 6 is a similar chart showing the project under ultimate crash conditions. As mentioned earlier, the project can be accomplished in as little as 42 weeks if every activity is crashed. This scenario is not desired however, because the project 's budget then approaches $5 million in associated costs, over 50% beyond the original allotted expenditure.

is only three years. Second; the payback period for the project A is 3 years and for G

4. During which month of the project are the highest and lowest costs expected to

The change in incremental cash flow can be examined through looking at the factors causing change

In this project, the critical path is the A + B + C + G + I + J = 3 + 4 + 4 + 2 + 2 + 1 = 16 days which consists the activities of pouring the foundation which takes 3 days; building the frame takes 4 days as well as placing the roof; setting the rough-in frame takes 2 days as well as painting the garage; and clean-up takes 1 day. To sum up, the duration of the project would take 16 working days, which means that there will be a deduction of $100 from the $500 bonus due to the one-day extra work.