Answered: As a project manager, what will be your…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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You are working as a Project Manager for a leading IT Service Provider company. During the deployment of one of the optical fiber cabling project, your team required a testing equipment called fluke. This machine is used for testing the termination of copper and optical fiber nodes. The machine cost approximately PKR 450,000/- plus you need to a hire a technician to handle the equipment. Technician would be hired for 3 months at a salary of Rs. 30,000/- per month (For 2 months). The total number of nodes to be tested are 345. Another solution is to outsource this project to a subcontractor which will charge Rs. 1,500/- per network node.

As a project manager, what will be your decision (based on your experience), whether to buy the device or go for outsourcing this job to the subcontractor?
Give justification to support your decision.

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