Questionsexercises

4.1 For the activity data related to a small project, as shown, draw the PERT chart and find a. the critical path and its expected time b. the slack in all other paths c. the standard deviation associated with the project end date

Activity

Three Time Estimates (weeks)

A-B

1-3-5

B-D

1-2-3

A-C

1-2-3

C-D

2-4-6

C-F

4-6-8

C-E

1-4-7

D-F

1-2-3

E-F

1-3-5

4.2 Design a cost monitoring report that expands the data provided in Table 4.1.

4.3 You are at the 18-month point of a 24-month project with a $400,000 budget. The schedule variance has been estimated as $30,000 and the cost variance as $20,000. Find the following:

a. BCWS

b. ACWP

c. BCWP

d. ECAC

e. ETAC

Compare these results with those in the EVA example in the text. Why are they different?

4.4 In general, for a project:

a. If BCWP > BCWS, is the project early or late? Explain.

b. If ACWP > BCWP, is the project over or under cost? Explain.

c. If ACWP < BCWS, what conclusion, if any, can you draw? Explain.

4.5 What role does the Project Manager play in controlling fringe, overhead, and G&A costs and rates? How does the PM deal with increases in these rates that might result in a cost overrun?

4.6 Enter the data from Table 4.1 into a spreadsheet. Print out graphs of the results. Do the graphs provide insights into cost status that might not be revealed in columns of numbers? Explain.

4.7 The chapter provides twelve suggestions for dealing with firm fixed price bids or contracts. Identify three additional actions that might be employed in this regard in order to reduce risk. Explain your rationale.

4.8 Carry out a situation analysis for the following situations:

a. As a PM, you discover, at month 8 in a ten-month project, that you are 8% over cost. Your Chief Systems Engineer tells you that you can meet budget if the entire project team works a 48-hour week. Your Project Controller estimates only a 50% chance of success with that strategy, but claims that 5% of the work done has been ''out of scope.'' You have a project status review planned with the customer in two days. What should you do, and in what sequence?

b. As a PM, it is Friday afternoon at 4 p.m. and you receive a call from your customer complaining about the quality of your company's last report and a bad attitude on the part of your on-site lead engineer. Your customer wants to see you in his office at 9 a.m. next Monday. What should you do and in what sequence?

REFERENCES

4.1 Frame, J. D. (1991). Managing Projects in Organizations. San Francisco: Jossey-Bass.

4.2 Kezsbom, D. S., D. L. Schilling, and K. A. Edward (1989). Dynamic Project Management. New York: John Wiley.

4.S Kerzner, H. (2QQQ). Project Management: A .Systems Approach to Planning, Scheduling and Controlling, 7th edition. New York: John Wiley.

4.4 Malcolm, D. G., J. H. Roseboom, C. E. Clark, and W. Fazar (1959). ''Application of a Technique for Research and Development Program Evaluation,'' Operations Research 7: 646-669.

THE AND

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