UEME4253 Project Management

Tutorial 1 Solutions to Problems

1. Answer: As can be seen from the following Table, the number of hours needed to prepare the slides (given an 85% learning rate) would be 50 hours in session 1, 42.5 hours in session 2, 36.1 hours in session 4, and 30.7 in session 8. This enables the total cost per session to be calculated and thus the total for the eight sessions.
Session 1 2 3 4 5 6 7 8 Total Hours 50 42.5 38.6 36.1 34.3 32.8 31.7 30.7 V.C. $5,000 $4,250 $3,865 $3,613 $3,428 $3,285 $3,168 $3,071 Fixed Cost Total Cost Cum Cost Cum Rev $600 $5,600 $5,600 $5,172 $600 $4,850 $10,450 $10,344 $600 $4,465 $14,915 $15,516 $600 $4,213 $19,127 $20,688 $600 $4,028 $23,155 $25,860 $600 $3,885 $27,040 $31,032 $600 $3,768 $30,809 $36,204 $600 $3,671 $34,479 $41,376 $34,479

The total cost for the eight sessions is $34,479 to which your firm adds a 20 percent profit margin to give a bid price of $41,375. The per session price, therefore, is $5,172. Comparing the cumulative revenue with the cumulative cost, your firm will break even in the third session.

Project Budget

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UEME4253 Project Management

2. Answer: As shown in the table below, alternative d has the lowest expected cost and is thus the best alternative.
Alternative a b c d Rainy 0.3 6 2 1 5 Cloudy 0.2 3 4 2 4 Sunny 0.5 4 5 7 3 Expected Cost 4.4 3.9 4.2 3.8

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UEME4253 Project Management

3. Answer: The worst possible outcomes for Alternatives a, b, c and d are 6, 5, 7 and 5 respectively.
Alternative a b c d Rainy 0.3 6 2 1 5 Cloudy 0.2 3 4 2 4 Sunny 0.5 4 5 7 3 Worst Case 6 5 7 5

Alternatives b and d have the best (lowest) worst outcome.

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4. Answer: In the spreadsheet shown below the project cost, non-engineering labor hours, material cost, and downtime hours were all modeled using a triangular distribution. The engineering labor hours were modeled using a uniform distribution over the range of 510 to 690 hours.

Project Cost

amb 3 900000 1000000 1200000 3 RM1033333

amb 3 510 600 690 3 600 Hours Engineerin g Labour Cost 600 Hours RM80 RM 48000 Engineerin g Labour Hours

Non Engineerin g Labour Hours

amb 3 1200 1500 2200 3 1633 Hours Non Engineerin g Labour Cost 1633 Hours RM35 RM 57167
amb 3 100000 135000 155000 3 RM 130000

Material Cost

Downtime

amb 3 105 110 120 3 111.67 Hours

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UEME4253 Project Management

Downtime Cost 111.67 Hours RM500 RM 55833 Total Cost 1033333 48000 57167 130000 55833 RM 1324333

Probabilit y

1324333 100% 1425000 92.94%

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