Concept explainers
Interpretation:The real life situations of the cost time curve in comparison to the assumption of its being linear.
Concept Introduction: Everyactivity /a set of activities have the costs to be incurred and the time of completion. The time and the cost always have a relationship i.e. cost of completion in a given time and vice versa i.e. time of completion for a given cost budget. Both are variable and each may or may not vary in direct proportion to the variation in the other variable. This is discussed below in terms of normal time/cost; crash time/cost; de-crashed time/cost wart projects.(De-crashing is used to reduce costs of non-critical activities by increasing the times because such time increase does not increase the total project time but reduces the resource requirements).
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EBK PRODUCTION AND OPERATIONS ANALYSIS
- Thunderbird Manufacturing purchases a new stamping machine for $40,000. Its useful life is estimated to be 250,000 units with a salvage value of $5,000. Prepare a units-of-production (UOP) depreciation schedule based on the given annual usage (units produced) as shown below. chart attachedarrow_forwardExplain the importance of conducting a Business Impact Analysis (BIA) in the development of a continuity plan. What information does it provide, and how does it inform decision-making?arrow_forwardCase Study: Read and examine the case thoroughly Decision-making time horizons: a hotel group A group of hotels demonstrates the different levels of decision-making and the differing time horizons that are usually involved with each level. In a group of hotels, most of the staff will be concerned with ensuring that the daily schedule of bookings run to plan and are delivered satisfactorily. The manager and senior hotel staff will, however, have wider concerns. They will probably have weekly, monthly and annual budgets and sales targets to hit. These requirements of their roles mean that they will need to consider the hotel's position up to a year ahead. The chief executive of the whole group of hotels may have a longer time frame as this person and their senior team may be considering what the potential threats and opportunities in the marketplace might be and how this particular hotel group might respond.Questions - Explain why the hierarchy of decision-making might be different in…arrow_forward
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- Discuss the assumption that the cost–time curve is linear. What shape might bemore realistic in practice?arrow_forwardList the types of costs incurred when employees are laidoff. What costs are difficult to estimate in monetary terms?Suppose that a firm is facing a downturn in business, eachemployee has skills valued at $40,000 per year, and it costs$100,000 to lay off an employee. If business is expected to im-prove in one year, are layoffs financially justified? What is the“payback” period for the layoff decision?arrow_forwardIn the context of continuity planning, what is the significance of a Business Impact Analysis (BIA)? How does it inform decision-making?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,