Just do paraphrasing for the answers.
hw_3…pdf

Unformatted Attachment Preview

1. Read the Case “Friendly Assisted Living Facility –I” Answer the four(4) questions at the end of the chapter.
( 2pts) Question #1: Define the project deliverables.
Deliverables of the project are:


Construction of a 100 unit facility
Provide a positive return on investment and contribute to overall business
Project outcomes that will be measured to determine project effectiveness are:



Increase utilization of existing hospital outpatient services
Develop more services focused on wellness and preventative medicine
Increase census of inpatient units
( 1.5 pts) Question #2: Define project constraints and assumptions.
Project assumptions are:




For-profit subsidiary of St. Dismal
Free standing apartment construction design
Facility will be constructed to provide easy access to St. Dismas’ services such as kitchen area, outpatient
therapy areas, etc.
100 units, some designed for heavy-assisted, and most light-assisted.
Project constraints are:


Construction cannot begin until after November 1999
Open facility in July 2000
( 1 pts)Question #3: Develop a level 1 WBS.
Outline the broad steps in the project, for example;
Number Step
1
Start ALF project
2
Building design
3
Construction
4
Define food service needs
5
Define housekeeping needs
6
Define staffing needs
7
Develop policies and procedures
8
Create budget for facility
9
Create financial systems
(payroll, accounting, etc)
10
Identify telecommunications &
information systems needs
11
Develop marketing plan
(including ground breaking
event)
12
Develop communications plan
13
Define clinical services needed
14
Develop management structure
15
Identify all regulatory
requirements
16
Complete Project
( 1pt) Question #4: Develop the RACI matrix for this project based on the Level 1 WBS.
Step
COO
CFO
Fred
Splient
Rehab
Medical
Director
Construction
Manager
Director
Info
Services
VP Business
Dev
Start ALF project
R, A
C
C
I
C
I
I
Building design
R, A
C
C
C
C
C
C
Construction
C
C
C
I
R, A
I
I
Define food service needs
C
C
C
R, A
Define housekeeping needs
C
C
C
R, A
Define staffing needs
C
C
C
C
R, A
C
Develop policies and
procedures
C
C
C
Create budget for facility
C
R, A
C
Create financial systems
(payroll, accounting, etc)
C
R, A
C
C
Identify telecommunications
& information systems needs
C
C
C
R, A
Develop marketing plan
(including ground breaking
event)
Develop communications plan
R, A
C
C
C
C
Define clinical services
needed
C
C
C
R ,A
C
R, A
C
R, A
Develop management
structure
C
C
R, A
C
Identify all regulatory
requirements
C
C
R, A
C
R, A
C
C
I
Complete Project
C
C
C
C
C
C
C
I
I
(1pt) Question #5: Would a Project Charter have been useful here?
Consider the list of items to include in a charter shown in Section 3.1. Out of this list, it would have been useful to:






Clarify the assumptions underlying the project concerning future health levels, state of the economy, patient
preferences, etc.
Constraints facing the Center on this project (staff, money, etc.)
High-level risks
Milestones for control phase gates to review and reconsider project progress
Identify key stakeholders such as the local community, regulatory agencies, etc
Boundaries as to what is out of scope on the project.
1. 1 (3pts) Find the best alternative given the cost outcomes below. The probability of rain is 0.3, clouds is
0.2, and sun is 0.5.
Alternativ
e
State
Expecte
Sunny d Value
Rainy
Cloudy
a
6
3
4
4.4
b
2
4
5
3.9
c
5
4
3
3.8
d
5
4
3
3.8
0.3
0.2
0.5
Probabilit
y
Options c and d have the lowest expected cost.
2. (3pts) In Exericse 1, base your decision instead on the worst possible outcome for each alternative. Now
consider a decision based on the best possible outcome. When might both of these give you the same
decision?
These are costs so a higher number is worst. The worst for each alternative are a(6), b(5), c(5), and d(5). Given this,
the answer is a three-way tie: b, c, and d.
The best for each alternative are a(3), b(2), c (3), and d(3). Given this, the answer is b has the best possible (lowestcost) option.
When a particular option had both the highest and lowest cost, that option would be selected using both rules.
3. (3pts)Laptops-R-Me keeps detailed data on their laptop sales. In the last 300 days the number of laptops
sold was as shown in the table …
a. The frequency distribution of sales is:
Number Sold
Frequency
0
5%
1
10%
2
29%
3
47%
4
9%
b. The average number of laptops sold daily is:
0(.05) + 1(.1) + 2(.29) + 3(.47) + 4(.09) = 2.45 laptops
c. The yearly profit is:
2.45 laptops sold per day × 50 weeks/yr × 5 days/week × $65 profit/laptop = $39,812.50
3. Do Exercises 1 and 2 Chapter 4 page 138.
1. (3pts) Your firm designs PowerPoint slides for computer training classes, and you have just received a request
to bid on a contract to produce the slides for an 8-session class. From previous experience, you know that your
firm follows an 85 percent learning rate. For this contract it appears the effort will be substantial, running 50
hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed
$600 per session. The customer will pay you a flat fixed rate per session. If your nominal profit margin is 20
percent, what will be the total bid price, the per session price, and at what session will you break even?
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.
2. (3pts) If unit 1 requires 200 hours to produce and the labor records for an Air Force project of 50 units
indicates an average labor content of 63.1 hours per unit, what was the learning rate?
Calculation of learning rate:
First begin be calculating the total labor hours required to complete the contract of 50 units as follows: 50 units ×
63.1 average hours = 3,155 hours.
Next, set up a spreadsheet like the one shown in the Media One Consultants example in the chapter as shown
below.
Finally, using a trial and error approach, plug in alternative values of the Learning Rate to get a cumulate time for
the first 50 units as close as possible to 3,155 hours. A 75% learning rate yields a cumulative time of 3155.2 hours.
What total additional number of labor-hours would be required for a follow-on Air Force Contract of 50 units?
What would be the average labor content of this second contract? Of both contracts combined?
Using the spreadsheet, the total time for the first 100 units would be 4,836 hours. Subtracting out the 3,155 hours for
the first contract of 50 yields 1,681 hours for the second 50. The average labor content of the second contract is thus
33.62 hours (1,681/50).
The average labor content of both contracts combined is 48.36 hours (4,836/100).
If labor costs the vendor $10/hour on this second contract and the price to the Air Force is fixed at $550 each,
what can you say about the profitability of the first and second contracts, and hence the bidding process in
general?
At a labor rate of $10/hour, the first 50 cost $631 each so they lose money. The second contract of 50 cost $336.20
each and thus make money. Between both contracts, they cost $483.60 each, on average, so the net result is a
profit of $550 – 484 = $66 each or a total profit of $6,600.
One implication is to bid under cost to get a contract and then make a profit on follow-on contracts. Indeed, if this
strategy is not pursued, the organization may never get the first contract and not have the opportunity to move
down the learning curve.

Purchase answer to see full
attachment