Problem 21
Category Weight A B C
Labor costs 20 1 2 3
Labor productivity 20 2 3 1
Labor supply 10 2 1 3
Union relations 10 3 3 2
Material supply 10 2 1 1
Transportation costs 25 1 2 3
Infrastructure 5 2 2 2 Scores 165 210 225 Location C is the best Problem 22 a
Category Weight A B C
Labor costs 20 1 2 3
Labor productivity 20 2 3 1
Labor supply 10 2 1 3
Union relations 25 3 3 2
Material supply 10 2 1 1
Transportation costs 10 1 2 3
Infrastructure 5 2 2 2 Scores 195 225 210 Location B is the best Problem 22 b
Category Weight A B C
Labor costs 20 1 2 3
Labor productivity 20 2 3 1
Labor supply 10 2 1 3
Union relations 10 3 3 2
Material supply 10 2 1 1
Transportation costs 25 3 2 2
Infrastructure 5 2 2 2 Score 215 210 200 Location A is the best
Problem 22 c
Category Weight A B C
Labor costs 20 1 2 3
Labor productivity 20 2 3 1
Labor supply 10 2 1 3
Union relations 10 3 3 2
Material supply 10 2 1 1
Transportation costs 25 1 2 3
Infrastructure 5 2 2 2
Tax considerations 15 3 2 1 Score 210 240 240 Locations B and C are the best
Problem 2.
Below is a project WBS with cost apportioned by percents. If the total project cost is estimated to be $600,000, what are the estimated costs for the following deliverables?
a. Design? $240,000 = 40% * $600,000
b. Programming? $120,000 = 20% * $600,000
c. In-house testing? $240,000 = 40% * $600,000
What weaknesses are inherent in this estimating approach?
a. If total cost estimate is off, all other costs will be off.
b. The breakdown of the project in terms of its components and subcomponents must be very similar to past projects for so that historical percentages may be used.
c. Requires accurate historical data.
Problem 3.
a. The original organizational chart for Adelphi Technologies is shown below:
b. A project