Monday, October 29, 2007
Reference:
Schwalbe, K (2006), Information technology project management, 4th edn, Course
Technology/Thompson Learning, Cambridge, MA: Course Technology / Thompson Learning.
ITC 493 Assessment 2: Task 5
Chapter 12, Exercise 3
Suppose your company is trying to decide whether it should buy special equipment to prepare some of its high-quality publications itself or lease the equipment from another company. Suppose leasing the equipment costs $240 per day. If you decide to purchase the equipment, the initial investment is $6,800 and operations will cost $70 per day. After how many days will the lease cost be the same as the purchase cost for the equipment? Assume your company would only use this equipment for 30 days. Should you company buy the equipment or lease it?
Answer:
For Leasing:
Equipment cost/day = $240
Duration of lease = 30 days
So, total cost for leasing equipment = $240 * 30
= $7,200
For Purchase:
Initial Investment = $6,800
Operations cost per day = $70
So, total cost for the purchase = $6,800 + $70 *$30
= $8,900
To calculate number of days after which the lease cost is the same as the purchase cost for the equipment is as follows:
Number of days = Total cost of purchase / per day cost for lease
= $8,900 / $240
= 37.08 days.
From the above calculation we can say that approximately after 37.08 days the lease cost will be the same as the purchase cost for the equipment.
Equipment cost/day = $240
Duration of lease = 30 days
So, total cost for leasing equipment = $240 * 30
= $7,200
For Purchase:
Initial Investment = $6,800
Operations cost per day = $70
So, total cost for the purchase = $6,800 + $70 *$30
= $8,900
To calculate number of days after which the lease cost is the same as the purchase cost for the equipment is as follows:
Number of days = Total cost of purchase / per day cost for lease
= $8,900 / $240
= 37.08 days.
From the above calculation we can say that approximately after 37.08 days the lease cost will be the same as the purchase cost for the equipment.
ITC 493 Assessment 2: Task 4
Chapter 11, Exercise 4:
Suppose your organization is deciding which of four projects to bid on. Information on each is in the table below. Assume that all up-front investments are not recovered, so they are shown as negative profits. Draw a diagram and calculate the EMV for each project. Write a few paragraphs explaining which projects you would bid on. Be sure to use the EMV information and your personal risk tolerance to justify your answer.
Answer:
Figure: Decision Tree
Above figure shows probability and outcomes for Project1, Project 2, Project 3, and Project 4.
There is a 50 percent probability that project_1 will earn $120,000 and 50 percent probability that it will lose $50,000. The EMV for Project 1 is $35,000
.5($120,000) - .5(-$50,000) = $60,000- $25,000 = $35,000
There is a 30 percent probability that project_2 will earn $100,000, 40 percent probability that project_2 will earn $50,000 and 30 percent probability that it will lose $60,000. The EMV for Project 2 is $32,000
.3($100,000) + .4($50,000) - .3(-$60,000) = $30,000 + $20,000- $18,000
= $32,000
There is a 70 percent probability that project_1 will earn $20,000 and 30 percent probability that it will lose $5,000. The EMV for Project 1 is $12,500
.7($20,000) - .3(-$5,000) = $14,000- $1,500 = $12,500
There is a 30 percent probability that project_4 will earn $40,000, 30 percent probability that project_4 will earn $30,000, 20 percent probability that it will earn $20,000 and 20 percent probability that it will lose $50,000. The EMV for Project 4 is $15,000
.3($40,000) + .3($30,000) + .2($20,000) - .2(50,000)
= $12,000 + $9,000 + $4,000 - $10,000
= $15,000
From the above calculation Project 1 has a higher EMV so my organization will decide to big for the Project 1.
Above figure shows probability and outcomes for Project1, Project 2, Project 3, and Project 4.
There is a 50 percent probability that project_1 will earn $120,000 and 50 percent probability that it will lose $50,000. The EMV for Project 1 is $35,000
.5($120,000) - .5(-$50,000) = $60,000- $25,000 = $35,000
There is a 30 percent probability that project_2 will earn $100,000, 40 percent probability that project_2 will earn $50,000 and 30 percent probability that it will lose $60,000. The EMV for Project 2 is $32,000
.3($100,000) + .4($50,000) - .3(-$60,000) = $30,000 + $20,000- $18,000
= $32,000
There is a 70 percent probability that project_1 will earn $20,000 and 30 percent probability that it will lose $5,000. The EMV for Project 1 is $12,500
.7($20,000) - .3(-$5,000) = $14,000- $1,500 = $12,500
There is a 30 percent probability that project_4 will earn $40,000, 30 percent probability that project_4 will earn $30,000, 20 percent probability that it will earn $20,000 and 20 percent probability that it will lose $50,000. The EMV for Project 4 is $15,000
.3($40,000) + .3($30,000) + .2($20,000) - .2(50,000)
= $12,000 + $9,000 + $4,000 - $10,000
= $15,000
From the above calculation Project 1 has a higher EMV so my organization will decide to big for the Project 1.
ITC 493 Assessment 2: Task 3
Chapter 10, Exercise 3:
How many different communications channels does a project team with six people have? How many more communications channels would there be if the team grew to ten people?
Answer:
Given formula for the communications channels is:
Number of communication channels = (n(n-1))/2
Communications channels for a project team with six people have
= (6(6-1))/2
= 15
Project team with six people have 15 communication channels.
Communications channels for a project team with ten people have
= (10(10-1))/2
= 45
Project team with six people have 45 communication channels.
From the above calculation we can say that 30 more communications channels would there be if the team grew to ten people.
How many different communications channels does a project team with six people have? How many more communications channels would there be if the team grew to ten people?
Answer:
Given formula for the communications channels is:
Number of communication channels = (n(n-1))/2
Communications channels for a project team with six people have
= (6(6-1))/2
= 15
Project team with six people have 15 communication channels.
Communications channels for a project team with ten people have
= (10(10-1))/2
= 45
Project team with six people have 45 communication channels.
From the above calculation we can say that 30 more communications channels would there be if the team grew to ten people.
ITC 493 Assessment 2: Task 2
Chapter 9, Exercises 1.
Your company is planning to launch an important new project starting January 1, which will last one year. You estimate that you will need one full-time project manager, two full-time business analyses for the first six months, tow full-time senior programmers for the whole year, four full-time junior programmers for the months of July, August, and September, and one full-time technical writer for the last three months. Use Microsoft Excel to create a stacked column chart showing a resource histogram for this project, similar to the one shown in Figure 9-6. Be sure to include a legend to label the types of resources needed. Use appropriate titles and axis labels.
Answer:
ITC 493 Assessment 2: Task 1
Chapter 8, Exercise 6:
Review the concepts in this chapter related to improving the quality of software. Write a one-pate paper describing how you could apply these concepts to software development projects.
Improving the quality of software requires customer satisfaction, prefers prevention to inspection, and recognizes management responsibility for quality. Some other important issues involved in improving the quality of software are: Strong leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organization’s overall maturity level in software development and project management can all assist in improving quality.
Answer:
Strong Leadership:
Leadership provides an environment conducive to producing quality. Management must publicly declare the company’s philosophy and commitment to quality, implement company-wide training programs in quality concepts and principles, implement measurement programs to establish and track quality levels, and actively demonstrate the importance of quality. When every employee understands and insists on producing high-quality products, then top management has done a good job of promoting the importance of quality.
The cost of Quality:
The cost of quality is the cost of conformance plus the cost of nonconformance. Conformance means delivering products the meet requirements and fitness for use. The cost of nonconformance means taking responsibility for failures or not meeting quality expectations.
The five major cost categories related to quality include:
1. Prevention cost: The cost of planning and executing a project so that it is error-free or within an acceptable error range.
2. Appraisal cost: The cost of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range.
3. Internal failure cost: A cost incurred to correct an identified defect before the customer receives the product.
4. External failure cost: A cost that relates to all errors not detected and not corrected before delivery to the customer.
5. Measurement and test equipment costs: The capital cost of equipment used to perform prevention and appraisal activities.
Review the concepts in this chapter related to improving the quality of software. Write a one-pate paper describing how you could apply these concepts to software development projects.
Improving the quality of software requires customer satisfaction, prefers prevention to inspection, and recognizes management responsibility for quality. Some other important issues involved in improving the quality of software are: Strong leadership, understanding the cost of quality, providing a good workplace to enhance quality, and working toward improving the organization’s overall maturity level in software development and project management can all assist in improving quality.
Answer:
Strong Leadership:
Leadership provides an environment conducive to producing quality. Management must publicly declare the company’s philosophy and commitment to quality, implement company-wide training programs in quality concepts and principles, implement measurement programs to establish and track quality levels, and actively demonstrate the importance of quality. When every employee understands and insists on producing high-quality products, then top management has done a good job of promoting the importance of quality.
The cost of Quality:
The cost of quality is the cost of conformance plus the cost of nonconformance. Conformance means delivering products the meet requirements and fitness for use. The cost of nonconformance means taking responsibility for failures or not meeting quality expectations.
The five major cost categories related to quality include:
1. Prevention cost: The cost of planning and executing a project so that it is error-free or within an acceptable error range.
2. Appraisal cost: The cost of evaluating processes and their outputs to ensure that a project is error-free or within an acceptable error range.
3. Internal failure cost: A cost incurred to correct an identified defect before the customer receives the product.
4. External failure cost: A cost that relates to all errors not detected and not corrected before delivery to the customer.
5. Measurement and test equipment costs: The capital cost of equipment used to perform prevention and appraisal activities.
Sunday, September 16, 2007
REFERENCE
Reference:
Schwalbe, K (2006), Information technology project management, 4th edn, Course Technology/Thompson Learning, Cambridge, MA: Course Technology / Thompson Learning.
Schwalbe, K (2006), Information technology project management, 4th edn, Course Technology/Thompson Learning, Cambridge, MA: Course Technology / Thompson Learning.
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