Assignment:
PRTI is a company whose primary business' focus is on upgrading servers for manufacturing companies. The company has a thorough knowledge of all aspects of its business, and a structured approach to manage this type of project, as shown below.
There are some indirect costs for the project, estimated on a daily basis: the first 30 days have indirect costs of $500/day, and all subsequent days $800/day.
a) If the company requires a markup of 25%, what should be the total price charged for a normal [standard] project?
b) Examine and discuss PRTI's decision to propose a potential client to upgrade its server for a total amount of $50,000, completed in 31 days.
c) A key member of the project, recommended to the project manager to study the uncertainties exhibited in prior similar projects. The project management gathered the information and found that the duration of six of the tasks could be modeled as Beta distributions. Based on the following information (without "crushing"), what is the probability that a project could be completed between 30 and 38 days?
|
Activity
Optimist
|
Normal Time (days)
Most Likely Pessimist
|
|
Review system requirements for upgrade
|
1
|
3
|
5
|
|
Plan to upgrade customizations
|
1
|
2
|
4
|
|
Prepare your environment for upgrade
|
5
|
9
|
14
|
|
Check your Project Services database for errors that can cause upgrade to fail
|
0.5
|
1
|
2
|
|
Upgrade the Project Services database
|
5
|
8
|
12
|
|
Mount the Project Web App instance
|
0.5
|
1
|
1.5
|