Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9781259666094
Author: Erik W. Larson, Clifford F. Gray
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 5RQ
Why is it difficult to estimate mega project (e.g., airports, stadiums, etc.) costs and benefits?
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What is the difference between project feasibility study done by those under private sector and thos under government sector?
How are potential projects identified?
Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed in 18 weeks, before the next Joint Commission survey. Project activity times are listed in the table attached as an image.
Determine the minimum cost-schedule for this project to be completed in 18 weeks.
Assume a linear relationship between crash cost and crash time. For example, crash cost per week for activity A can be calculated as: ($650 - $200)/(4-2) = $225.
2. What is the difference in total project costs between the earliest completion time of the project using normal times and the minimum cost-schedule you found in part 1?
Chapter 5 Solutions
Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
Ch. 5.1A - How many labor hours should the eighth satellite...Ch. 5.1A - How many labor hours for the whole project of...Ch. 5.1A - What price would you ask for the project? Why?Ch. 5.1A - Midway through the project your design and...Ch. 5.1A - Near the end of the project, Deutsch Telefon AG...Ch. 5 - Why are accurate estimates critical to effective...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - What are the major types of costs? Which costs are...Ch. 5 - Why is it difficult to estimate mega project...
Ch. 5 - Define what a white elephant is in project...Ch. 5 - Calculate the direct cost of labor tor a project...Ch. 5 - Mrs. Tolstoy and her husband, Serge, are planning...Ch. 5 - Exercise Figure 5.1 is a project WBS with cost...Ch. 5 - Firewall Project XT. Using the complexity...Ch. 5 - At this point, what would you do if you were the...Ch. 5 - Prob. 5.1.2CCh. 5 - What estimating techniques should be used for a...Ch. 5 - Assume you are either Mike or Josh; how would you...Ch. 5 - Prob. 5.2.2CCh. 5 - After cost, what other factors should be...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Give an example of a project which is a failure in cost estimation and give suggestions for making it appropriate.arrow_forwardTwo new Internet site projects are proposed to a young start -up company. Project A will cost $250,000 to implement and is expected to have annual net cash flows of $75,000. Project B will cost $150,000 to implement and should generate annual net cash flows of $52,000. The compnay is very concerned about their cash flow. Using the payback period, which project is better, from a cash flow standpoint?arrow_forwardCosts are need to identify in every projects. what are the components of capital costs of a project?arrow_forward
- Investigate the use of sustainability metrics in project analysis. How can projects be evaluated not only for financial success but also for their environmental and social impact?arrow_forwardHow might the inclusion of contingency funds or buffers affect a project's cost estimation accuracy?arrow_forwardWhat is PMO (Project management Office) and example of PMO?arrow_forward
- A leading artist is working with a specialist metalworking firm to produce an ambitious piece of public art that will stand in the main square of a city. The project is controversial – many citizens feel the artwork will clash with the traditional architecture of surrounding buildings. However, the mayor is firmly behind the project. A large share of the cost of the artwork is being met by a donation from a successful local entrepreneur. They have made it clear that they will stop the funding at any time if they feel the project is not being properly managed and there is a risk that the artwork will have the kind of construction and public safety problems that similar artworks have had elsewhere. Suggest four ways you think would keep this person supporting the project as the work proceeds. For each of these ways, state who would be responsible for it. How, when and where would each way be done?arrow_forwardThe estimated annual cash flows for a proposed municipal government project are costs of $850,000 per year, benefits of $930,000 per year, and disbenefits of $300,000 per year. Calculate the conventional B/C ratio at an interest rate of 9% per year, and determine if it is economically justified.The B/C ratio is______The project is economically ((Click to select)arrow_forwardRefer to either Case 7.1 Alaska Fly-Fishing Expedition, 7.2 Silver Fiddle Construction, 7.3 Trans LAN Project, and 7.4 XSU Spring Concert of your text. Each of these cases presents you with a project scope statement for a fictional project. You are to pick 1 of these cases on which to perform a risk analysis. After picking a case of your choice, you should address the following: Use a risk assessment form to analyze identified risks.arrow_forward
- How does the role of a Solution Consultant differ from a Business Analyst when gathering project requirements?arrow_forwardWhy are preliminary estimates prepared?arrow_forwardYou are the project manager of the software installationproject in Table 7.12. You would like to find the minimum-costschedule for your project. There is a $1,000-per-week penaltyfor each week the project is delayed beyond week 25. In addi-tion, your project team determined that indirect project costsare $2,500 per week.a. What would be your target completion week?b. How much would you save in total project costs with yourschedule?arrow_forward
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