...for this week's assignment. 2-1 Basic Estimating Problem Please look at the Attached Excel sheet for answer for first problem only. 2-2 Three-point Estimate Problem (a) Data: a = the best case estimate = $0.24/lb. m= the most likely estimate = $0.30/lb. b= the worst case estimate = $0.62/lb. Answer: We have to determine the E-value: E = (a + (4*m) + b) /6 E = (0.24 + (4 * 0.30) + 0.62)/ 6 E = $0.34/lb. (b) Data: a = the best case estimate = 37 tons m= the most likely estimate = 40 tons. b= the worst case estimate = 49 tons Answer: We have to determine the E-value: E = (a + (4*m) + b) /6 E = (37 + (4 * 40) + 47)/ 6 E = 40.66 tons or 41 tons if you want to round it up. (c) Using the estimates from 1 & 2, what is the expected cost for structural steel over the life of the project? ( 41 tons * 2000lbs.) = 82,000 lbs. Therefore, the estimates would be: $0.34/lb * 82,000 lbs = $27,880 (d) Using the "Complex" three-point method, what is the expected cost for structural steel over the life of the project? Expected cost: $0.34/lb * 82,000 lbs = $27,880 Most optimistic cost: $0.24/lb * 74,000 lbs = $17,760 Most pessimistic cost: $0.62/lb * 98,000 lbs = $60,760 The final estimated cost for the material is: (($17,760 + (4 * $27,880) + $60,760))/6 = $31,673.33 2-3 Contingency Allowance Problem ...
Words: 411 - Pages: 2
...PM592 Week One You Decide TO: Kara Rose, Marketing Director and Jessie Megana, R&D Director VisionTec, 38 Washington Street, Newburyport, MA 01950 SUBJECT: New Vision System Camera for the Pharmaceutical Market In an effort to increase sales in the lucrative Pharmaceutical Market, Vision Tec is investigating a way to create a high-resolution camera system to inspect drug labels ensuring they contain the proper information to meet the ever evolving governmental standards. The Work Breakdown Structure (WBS) is graphical representations of tasks which need to be completed in order complete the project. The New Vision System project will be broken down into three sub-activities (phases). Each phase will be assigned to an organizational working group and broken down in to work packages which may be decomposed further as the project proceeds. New Vision System Project 1.0 Market Feasibility 1.1 Interview Customers 1.2 Determine market trends 1.3 Test Market 1.4 Identify Target Market 2.0 Concept Feasibility 2.1 Study System 2.3 Define User Requirements 2.4 Prepare Report 3.0 System Development 3.1 Software 3.1.1 Packaging 3.1.2 Customize Software 3.2 Hardware 3.3 Network 3.4 Prepare Report Vision Tec Project Vision Tec is an advanced technology company who develops high tech products for...
Words: 496 - Pages: 2
...Opening Coffee Shop CP1 – Project Proposal PM592 – Project Cost and Schedule Control Executive Summary – This project proposal describes and presents task and cost details of an opportunity, of opening a new coffee shop. In terms of project details, the concept is to create a speciality coffee shop, which delivers very high quality and friendly service in a highly populated and high traffic commercial area. The costs involved in starting out the project are $100,000 including set up costs of $75,000 and operating costs of $25,000. Assuming a project start date of February 1st, 2014, the project would be operational by June 5th 2014. Details on the exact costs, schedule, tasks involved in making this project a reality are discussed in detail in the remaining sections of this proposal. Project Scope Statement- This project is to open a new coffee shop within ninety days. The projected start date would be February 1st 2014, and a project completion date of May 31st 2014. The total cost of completion should not exceed $100,000. This project will consist of leasing a location for business, interior design and development of construction needs. All permits should be obtain and remain visible on premises. All subcontractors must be approved by owner. All equipment and inventory should be working and stocked within the ninety day window for completion. If the coffee shop is not completed on time there will be fine of $1,000 a week. Work Breakdown Structure – There are major...
Words: 1675 - Pages: 7
...Project Proposal: Local Grind To Hootman Investing PM592 – Summer 2011 Executive Summary When you think of coffee in the Northwest, most people know there is Starbucks and small coffee shops. Coffee shops have become a familiar feature of American communities, not only for the purchase of a morning cup of coffee and snacks, but for mid-day and evening as well. With the introduction of fancy espresso-based coffee and drinks, people are spending between $3 and $6 for their cappuccino, mocha latte, vanilla ice blended drink, or other flavored drink that may be coffee based. Privately owned coffee houses have been on the increase for over 20 years because they are relatively recession proof. Leading companies, such as Starbucks and Peet’s, are located in almost every major city in the US. Small unique coffee shops like the Local Grind are able to compete with these larger chains; they are able to develop competitive advantages by catering to the specific demographics of their location and by personalizing their services to cater local needs. Our goal is to provide quality coffee related services and products by capitalizing on an untapped demographic that has many potential un-serviced customer. To accomplish our goals, we are requesting $100,000 from your company, as an initial investment to set up operations. We plan to invest an additional 20% from our own resources, up front, for the start up operational costs. Local Grind is scheduled to open for business...
Words: 2572 - Pages: 11
...PM592 On-line – Study Guide for Final Examination The final is an open book/open notes examination. The final includes nine questions, and is worth a total of 300 points. The sample problems here represent the types of problems that may appear on the final. There are solutions to the problems at the end. There will also be discussion problems. I have provided a list of the topics from which the discussion questions will be taken. On problems, please show all calculations when you complete the final. Problems: (TCO B) Three-point estimate: Problem (TCO B) Contingency Pricing: Problem (TCO G) Crashing: Problem (TCO C) WBS: Problem (TCO E) Resource Allocation/Leveling: Problem (TCO F, G) Earned Value/PMIS: Problem (TCO C) General Budget development, sensitivity: Problem Discussion topics: (TCO D) Accounting, PMIS, and Project Control (TCO A) Budgeting processes and techniques (TCO E) Resource Allocation Matrix (TCO F) Project Control Process (TCO F, G) EVM and EAC: Discussion: Terminal Course Objectives A Given the WBS and work packages develop an understanding of budgeting processes using top-down and bottom-up techniques. B Given the WBS and work packages, analyze the various cost estimating processes and investigate approaches used to justify and allocate contingency funds. C Given the project plan, develop budget estimates in appropriate categories including but not limited to labor, non-labor, overhead...
Words: 2741 - Pages: 11
...Project Proposal: Local Grind To Investors Investing PM592 – Summer 2011 Executive Summary When you think of coffee in the Northwest, most people know there is Starbucks and small coffee shops. Coffee shops have become a familiar feature of American communities, not only for the purchase of a morning cup of coffee and snacks, but for mid-day and evening as well. With the introduction of fancy espresso-based coffee and drinks, people are spending between $3 and $6 for their cappuccino, mocha latte, vanilla ice blended drink, or other flavored drink that may be coffee based. Privately owned coffee houses have been on the increase for over 20 years because they are relatively recession proof. Leading companies, such as Starbucks and Peet’s, are located in almost every major city in the US. Small unique coffee shops like the Local Grind are able to compete with these larger chains; they are able to develop competitive advantages by catering to the specific demographics of their location and by personalizing their services to cater local needs. Our goal is to provide quality coffee related services and products by capitalizing on an untapped demographic that has many potential un-serviced customer. To accomplish our goals, we are requesting $100,000 from your company, as an initial investment to set up operations. We plan to invest an additional 20% from our own resources, up front, for the start up operational costs. Local Grind is scheduled to open for business...
Words: 2591 - Pages: 11
