project management
DESCRIPTION
Answer of Project Management Solution to selection ExcersicesThe only project SIMSOX should consider is Voyagers. Each of the othertwo projects would not satisfy the high rate of return SIMSOX expects fromits projects.TRANSCRIPT
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611
A P P E N D I X O N E
Solutions to Selected ExercisesChapter 22-2. Payback 5 Investment/Annual Savings Project Alpha: $150,000/$40,000 5 3.75 years Project Beta: $200,000/$50,000 5 4.0 yearsProject Alpha is the better payback.
2-5. The only project SIMSOX should consider is Voyagers. Each of the other two projects would not satisfy the high rate of return SIMSOX expects from its projects.
Project: Dust Devils
Year Inflows Outflows Net flow Discount Factor NPV
0 500,000 (500,000) 1.00 (500,000)1 50,000 50,000 0.81 40,5002 250,000 250,000 0.66 165,0003 350,000 350,000 0.54 189,000
Total: $(105,500)
If calculated in EXCEL: $(106,020)
Project: Ospry
Year Inflows Outflows Net flow Discount Factor NPV
0 250,000 (250,000) 1.00 (250,000)1 75,000 75,000 0.81 60,7502 75,000 75,000 0.66 49,5003 75,000 75,000 0.54 40,5004 50,000 50,000 0.44 22,000
Total: $(77,250)
If calculated in EXCEL: $(77,302)
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612 Appendix 1 Solutions to Selected Exercises
Project: Yoyagers
Year Inflows Outflows Net flow Discount Factor NPV
0 75,000 (75,000) 1.00 (75,000)1 15,000 15,000 0.81 12,1502 25,000 25,000 0.66 16,5003 50,000 50,000 0.54 27,0004 50,000 50,000 0.44 22,0005 150,000 150,000 0.36 54,000
Total: $(56,650)
If calculated in EXCEL: $(55,714)
Chapter 66-3. Activity C is a burst activity. Activity G is a merge activity.
AIdentify
topic
Group Term Paper
BResearch
topic
CDraftpaper
DEdit
paper
GFinaldraft
F
References
E Create
graphics
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Appendix 1 Solutions to Selected Exercises 613
ID
Legend
DUR
ES
SL
LS
Description
EF
LF
30 10
5 35
15 25
115
120
125135
145140
130
130
C
30
5
0
5
Trafficdesign
35
35
F
15
115
15
130
Illumination
CP = A, C, E, G, J
130
145
G
30
115
0
115
Drainage
145
145
H
25
115
5
120
Landscape
140
145D
5
5
25
30
Lotlayout
10
35
J
10
145
0
145
Bid proposal
155
155
A
5
0
0
0
Survey
5
5
E
80
35
0
35
Approvedesign
115
115
B
20
5
10
15
Soilsreport
25
35
I
20
115
10
125
Signing
135
145PARK AND RIDEDESIGN
6-11.
A 1
1
0 B 61
D 119
0
2 119
5 61
0 0
0 1
Identifytopic
Researchtopic
C 96
3 96
0 Draftpaper
E 10
11
9
110
1 Creategraphics
G 12
12
11
111
0 Finaldraft
F 10
11
9
110
1 References
Editpaper
ID
Legend
DUR
ES
SL
LS
Description
EF
LF
Group Term Paper
0 1 2 3 4 5 6 7 8 9 10 11 12
Identify topic
Research topic
Draft paper
Edit paper
Create graphics
References
Final draft
6-13.
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614 Appendix 1 Solutions to Selected Exercises
6-20.
C 10
10
2
8
F 22
22
15
15
0 0
7
I
4
D 11
119
G
4
J
7
B 95
6
11 15
6
4
E
2
H
5
K
3
A 20
0 0 0 0
0 2 2 2
LAG 5
LAG 7
LAG 4
The only activities that have the start or finish on the critical path are E and K
LAG 10 LAG 8
LAG 8
LAG 5
LAG 109 27
27
0 0
32
32
6
15 17
0
17
2
2
0 0 0 0 0 0
11 25
25
32
3211
15
15
22
11
33 37
11
26 32
37 40
5 0
40
ID
Legend
DUR
ES
SL SL
LS
EF
LF
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Appendix 1 Solutions to Selected Exercises 615
Chapter 88-4.
DUR ES
PLAN
RESOURCE SCHEDULELF SL 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15RES
4
5
4
5
3
2
ID
A
B
C
D
E
F
0
0
5
5
9
12
5
5
9
12
12
14
1 1 1 1 1
1 1 1 1 1
2 2 2 2 2
X 2
X X XX
X X
2 2 2
2 2
2 2 2
0
0
2
0
0
Resources scheduled
3Resources available 3 3 3 3 3 3 3 3 3 3 3 3 3
3 3 3 3 2 3 3 3 3 3 2 2 2 2
ID
DURLS
SL
LF
ES EF
Legend
SL
Resource
1
2
2
1
2
2
A
4
0 4
11
1 5
1
B
5
0 5
00
0 5
2
C
4
4 8
22
6 10
2
D
5
5 10
00
5 10
1
F
2
10 12
00
10 12
2
E
3
5 8
22
7 10
2
Use the following heuristics:Minimum slackSmallest durationLowest identification number
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616 Appendix 1 Solutions to Selected Exercises
8-7. You should not spend time planning how you are going to spend your bonus. The schedule will take 16 days.
DUR ES LF SL 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18RES
2
1
3
1
2
3
2
2 2 2
0
5
2
6 2
7
9 1 1 1
12 2 2
14
2
6
5
7
9
12
14
16
0
0 2
0
0
0
0
0
0
ID
A
B
C
D
E
F
G
H
Resources scheduled
2Resources available 2 2 2 2 2 2 2 22 2 2 2 2 2 2
2 2 2 2 2 2 2 2 12 1 1 2 2 2 2
2
2
2
2
2
1
2
2
A
2
0 2
00
0 2
2
B
1
2 3
22
4 5
2
C
3
2 5
00
2 5
2
D
RESOURCE SCHEDULE
PLAN
1
5 6
00
5 6
2
E
2
6 8
00
6 8
2
F
3
6 9
11
7 10
1
Use the following heuristics:Minimum slackSmallest durationLowest identification number
G
2
8 10
00
8 10
2
H
2
10 12
00
10 12
2
ID
DURLS
SL
LF
ES EF
Legend
SL
Resource
2 2
2 2 2
2 2
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Appendix 1 Solutions to Selected Exercises 617
8-10.
0 1 2 3 4 5 6 7 8 9 10 11 12Budg
etID
A
B
C
D
E
F
Total
Cumulative
40 10 10 10 10
32 8 4 8 84
48 12 12 12 12
18 6 2 2 2 6
28 8 8 12
40
206 18 14 18 14 20 26 22 26 2 6 20 20
20 20
18 32 50 64 84 110 132 158 160 166 186 206
A
4
0 4
11
1 5
B
5
0 5
00
0 5
C
4
4 8
22
6 10
D
5
5 10
00
5 10
F
2
10 12
00
10 12
E
3
5 8
22
7 10
Cost by Week
A
B
C
D
E
F
10
8
12
6
8
20
10
4
12
2
8
20
10
8
12
2
12
10
4
12
2
8
6
ID
DURLS
SL
LF
ES EF
Legend
SL
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618 Appendix 1 Solutions to Selected Exercises
Chapter 99-2.
A1X
A1X
B D
B3
D2X
F
C3X
EC
E
3
3 3F
2X
3X
2X
2X
Total direct cost: 1,210
Activities changed:F90
Total direct cost: 1,340
Activities changed:D60
E 70
TIME: 9
TIME: 8
C
FA1X
A1X
A1X
B
DB
D
B3
D3
F
C3X
EC
E
4E4
4
33
3 3
3
F3
NormalTIME: 12
3X
3
3
Total direct cost: 1,000
Total direct cost: 1,050
Activities changed:C 50
Total direct cost: 1,120
Activities changed:E 70
TIME: 11
TIME: 10
Normal Normal Maximum CrashActivity Time Cost Crash Time Cost
A 1 100 0 0B 3 150 2 100C 4 200 1 50D 3 200 1 60E 4 200 2 70F 3 150 1 90
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Appendix 1 Solutions to Selected Exercises 619
9-8.
Normal Normal Maximum CrashActivity Time Cost Crash Time Cost
A 3 150 0 0B 4 200 2 100C 3 250 1 60D 4 200 1 40E 2 250 0 0F 3 200 2 30G 2 250 1 20H 4 300 2 60I 2 200 1 200
D IA3X
A3X
C
GB
H
B4
D3X
F3
E2X
G2
I
C3
H
4
24F3
3E2X 4
2
4
2
Total direct cost: 2040CP=A+B+D+H+IActivities changed:
Normal time:
CP=A+B+D+H+I
17
Time:
D
16
Total direct cost: 2000
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620 Appendix 1 Solutions to Selected Exercises
D IA3X
A3X
C
GB
H
B4
D3X
F3
E2X
G2
I
C3
H
3X
24F3
3E2X 3
2
2X
2
Total direct cost: 2160CP=A+B+D+H+I
Activities changed:
Time:
CP=A+B+D+H+I
15
Time:
H
14
Total direct cost: 2100
A+B+F+G+I
Activities changed:H
D I3X
A3X
C H
B3X
D3X
F3
E2X
G2
I
C3
H
3X
F3
3E2X 2X
2
2X
1X
Total direct costs: 2460CP=A+B+D+H+I
Activities changed:
Time:
CP=A+B+D+H+I A+B+F+G+I
13
Time:
I
12
Total direct costs: 2260
A+B+F+G+I
Activities changed:B
G2
A
B3X
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Appendix 1 Solutions to Selected Exercises 621
Chapter 1313-4.
Status Report: Ending Period 2 ($000)
Task % Complete EV AC PV CV SV
A 75% 30 25 20 5 10B 50% 16 12 12 4 4
Cumulative Totals 46 37 32 9 14
Status Report: Ending Period 4 ($000)
Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0B 100% 32 24 24 8 8
Cumulative Totals 72 59 64 13 8
Status Report: Ending Period 6 ($000)
Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0B 100% 32 24 32 8 0C 75% 36 24 24 12 12D 0% 0 0 6 0 26E 50% 14 10 8 4 6
Cumulative Totals 122 93 110 29 12
Status Report: Ending Period 8 ($000)
Task % Complete EV AC PV CV SV
A 100% 40 35 40 5 0B 100% 32 24 32 8 0C 100% 48 32 48 16 0D 33% 6 20 10 214 24E 100% 28 20 28 8 0
Cumulative Totals 154 131 158 23 24
Duration Direct Cost Indirect Cost Total Cost
17 2000 1500 350016 2040 1450 349015 2100 1400 350014 2160 1350 356013 2260 1300 366012 2460 1250 3860
The optimum time cost schedule would be 16 weeks at a cost of $3490.
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622 Appendix 1 Solutions to Selected Exercises
Performance Indixes Summary ($000)
Period EV AC PV SPI CPI PCIB
2 46 37 32 1.44 1.24 22%4 72 59 64 1.13 1.22 35%6 122 93 110 1.11 1.31 59%8 154 131 158 .97 1.18 75%
Forecast Costs at Completion
EACf 5
1BAC 2 EV2
1EV/AC21 AC
5
1206 2 1542
1154/13121 131
5 175
VACf 5 BAC 2 EACf VACf 5 206 2 175
VACf 5 31
At the end of the 8th period three-quarters of the project has been completed at a savings of $23,000. If the project continues to get $1.18 worth of work for each dollar spent the project will be $31,000 under budget at completion. The project appears to be slightly behind of schedule.
13-8. Part A
Status Report: Ending Period 1 ($000)
Task % Complete EV AC PV CV SV
A 25% 25 50 50 225 225
Cumulative Totals 25 50 50 225 225
Status Report: Ending Period 2 ($000)
Task % Complete EV AC PV CV SV
A 50% 50 100 100 250 250
Cumulative Totals 50 100 100 250 250
Status Report: Ending Period 3 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 0% 0 0 100 0 2100C 0% 0 0 150 0 2150
Cumulative Totals 100 200 350 2100 2250
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Appendix 1 Solutions to Selected Exercises 623
Status Report: Ending Period 4 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 60% 150 100 150 50 0C 50% 225 200 300 25 275
Cumulative Totals 475 500 550 225 275
Status Report: Ending Period 5 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0
Cumulative Totals 800 800 800 0 0
Status Report: Ending Period 6 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 75% 150 100 100 50 50
Cumulative Totals 950 900 900 50 50
Status Report: Ending Period 7 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 20% 60 100 0 40 60F 5% 15 50 0 235 15
Cumulative Totals 1075 1100 1000 225 75
Status Report: Ending Period 8 ($000)
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 100% 300 350 200 250 100F 10% 30 100 100 270 270
Cumulative Totals 1330 1400 1300 270 30
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624 Appendix 1 Solutions to Selected Exercises
Performance Indixes Summary ($000)
Period EV AC PV SPI CPI PCIB
1 25 50 50 .50 .50 2%2 50 100 100 .50 .50 3%3 100 200 350 .29 .50 5%4 475 500 550 .86 .95 24%5 800 800 800 1.00 1.00 40%6 950 900 900 1.06 1.06 48%7 1075 1100 1000 1.08 .98 54%8 1330 1400 1300 1.02 .95 67%
EACf 5
1BAC 2 EV2
1EV/AC21 AC
VACf 5 BAC 2 EACf
2105 5
12000 2 13302
11330/140021 1400
2105 5 2000 2 2105
With two-thirds of the project completed the forecast is that the project will be $105,000 over budget at completion.
13-8 Part B.
Revised Estimates: Ending Period 14
Task % Complete EV AC PV CV SV
A 100% 100 200 100 2100 0B 100% 250 200 250 50 0C 100% 450 400 450 50 0D 100% 200 150 200 50 0E 100% 300 350 300 250 0F 100% 300 500 300 2200 0G 100% 200 150 200 50 0H 100% 200 200 200 0 0
Cumulative Totals 2000 2150 2000 2150 0
EACre 5 AC 1 ETCre 2150 5 1400 1 750
VACre 5 BAC 2 EACre 2150 5 2000 2 2150
Revised Estimates indicate that the project will be one period behind schedule and $150,000 over budget.
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