Project Management Challenges Strategies and Project Selections

836 Words Apr 26th, 2011 4 Pages
MBA/MIS Project Management
Chapters 1 and 2

Project Management Challenges
Strategies and Project Selections

1. Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000. The company is very concerned about their cash flow.
Using the payback period, which project is better from a cash flow standpoint? Why?

- The project that has a better cash flow standpoint using the payback period would be the Alpha project. According to the Payback Period, the rate of return on an investment is greater with the Alpha
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In addition, United did not want their customers to wait for their luggage since several of their gates were more than a mile from the main terminal. The new system was designed was the luggage to go from the plane to the carousel within a 10 minute period. Purpose of this, is to have the luggage arrive before the passengers.
(7) What appears to be the single greatest risk in the decision to build DIA?
- There’s actually three main risks: cost, human resources and weather.
- Cost – The grading of the terminal area was completed at about $5 million under budget and grading the first runway was completed at about $1.8 million under budget. This analyst was lead to believe that the original construction cost was accurate.
- Human Resources – The economic recession was hit the hardest by Denver International Airport. At the time it had 500 estimated construction employees. In 1992, it was estimated that 6,000 construction workers would be needed. However, 3,000 were on file, but those employees were questionable if they were qualified of the position.
- Bad Weather – During the Winter months, was the greatest risks for the schedule. Lucky winters of ’89-’90 and ’90 – ’91 were decent, which was work had been completed. However, the worse came in the summer of ’90 because of bad weather.
(19) What was the function of the project management team (PMT) and why were…

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