PMAN 635 University of Maryland Statistics and Project Management Discussion

User Generated

Fcnexm1920

Business Finance

PMAN 635

University of Maryland Global Campus

PMAN

Description

Please complete all questions.

One question requires access to Crystal Ball. Please post the simulation as well.

Crystal Ball Access: https://vdi.umuc.edu/Citrix/UMGCWeb/

Password: Comcast2020&

Unformatted Attachment Preview

PMAN635- Spring 2020 Session 5 Individual Assignment – IA-5 Name: Answer/complete both of the following two questions. Submit your work products through the appropriate assignments folder by the close of the session. Ensure each file you post includes your last name in the file name. Question 1: Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm follows an 80% learning rate. For this contract, it appears that the effort will be substantial, running 300 hours for the first session. Your firm has an average cost of labor of $80/hour and the overhead is expected to run a fixed $1200 per session. The customer will pay you a flat fixed rate per session (Per Session Price.) If your profit markup is 10%, what will be the Total Price, the Per Session Price, and at what session will you break even? Answer the following four questions: a. What is the Total Price? This is what you would charge the customer so that you can have your profit markup of 10% over all of your costs. To calculate this, first figure out your cost per each session, add them up, and then add your profit. b. What is the Per Session Price? This is the revenue that the customer pays you each time you complete a session. It is calculated by dividing the Total Price by the number of sessions. c. What is the Break Even Point? At the beginning, your cost per session is more than your revenue per session. As each session is completed, however, your costs for the session declines so that eventually your cumulative revenue exceeds the cumulative cost. The break-even point is the session at which, for the first time, your revenue exceeds your cost. d. Assume you win the contract and your customer likes the training so much, she orders a ninth course at the same price as the first eight. What will your profit be on the 9th course? Question 2: You have just been assigned as Project Manager (PM) to the Kuraiz-Reconda Fiber Optic Cable (KRFOC) project. You are preparing your cost estimate for the project and your Project Engineer (PE) tells you it will take 425 hours to complete the design effort. Your Finance Manager (FM) tells you that engineering labor is $125 an hour. Fortunately for you, unfortunately for them, you are a graduate of UMUC, specializing in project management in general and advanced project management techniques in particular. Upon questioning, your PE admits that the 425 hours is just a guess, that under the best circumstances, meaning you quit bugging him with inane questions, it may take only 375 hours. However, it could take as long as 700 hours (if you do not leave him alone to do his job). He stands by his estimate that it will normally take 425 hours. Hint: this is a triangular distribution. PMAN635- Spring 2020 Thinking back to your UMUC days, you wonder if all engineers cost $125 per hour. Upon questioning, your FM admits that this is an average cost, that some are higher, some are lower. You direct him to give you the distribution of all engineer labor rates. With a lot of help (your FM does not have the benefit of your UMUC education), he replies that the labor rate is normally distributed with a mean of $125 and a standard deviation (he is still not sure what that is) of $25. Please answer the following two questions: a. Using this information and a wonderful tool you mastered at UMUC, Crystal Ball (CB), what is the mean cost of your engineering effort? b. You are about to present your cost estimate to your sponsor when you remember that he was once a Professor at UMUC. You recall, too, that he wore both a belt and suspenders and you suspect that this meant he might be a bit conservative. You therefore decide to provide an engineering cost estimate such that you are confident that 95% of the time your actual costs would be less than that value and that no more than 5% of the time would you exceed that value. What is your new estimate of engineering costs? c. You present your cost estimate to your sponsor. He rejects it as way, way too high. He asks what you intend to do about it. Do you: 1) Fire your engineer. 2) Write your PMAN 635 Professor and ask him where you went wrong (after all, you got a D+ in his course). 3) Request the sponsor give you another probability that he is comfortable with and re-run the estimate of costs. Be sure to provide the results of your CB simulation.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hello, attached is only question one, I am unable to complete the rest without the login username. Please send the login username

𝑅𝑢𝑛𝑛𝑖𝑛𝑔 ℎ𝑜𝑢𝑟𝑠 = 300 hrs
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑙𝑎𝑏𝑜�...


Anonymous
I use Studypool every time I need help studying, and it never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags