Running head: WEIGHTED AVERAGE
12 Cell Battery Weighted Average and Contracts
Shanequa W. Morris
PM FP 4070: Procurement Management in Project Management
Dr. Andrew Kozack
January 18, 2020
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WEIGHTED AVERAGE
12 Cell Battery Weighted Average and Contracts
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Part A
A weighted average matrix is a very important tool used by project managers of procurement often. This document, “Is an average that takes into account the importance, or weight, of each value of a given item of criterion chosen by the project manager” (Edwards,
2019, p. 1). There are various methods in which weighted average can be calculated, and various selection criteria that can be used by the project manager.
A Real World Example of Weighted Average
An example is a person who is over a course, like a professor. He or she can take the scores from all the assignments that the students have had to include the quizzes and exams for an academic quarter. If there are 8 weeks in the mini-class, this may render 6 homework assignments, 5 quizzes, a midterm exam, and a final exam. Each weight as may be defined on the course syllabus. The weights will be different for each of the items, for example the quizzes may be 20% of total grade, the tests 30% each, and the homework assignments, 20% collectively.
“The weighted average is calculated as the sum of all of the values multiplied by their weights divided by the sum of all of the weights” (Edwards, 2019, p. 1).
Weighted Average Selection Criteria
There are at least four determinants of criterion utilized in the selection process for weighted averages. These criteria include the following:
1.) Relative Importance – The selection criteria that are chosen should have a high level of importance in procurement. A seasoned project manager or procurement specialists,

WEIGHTED AVERAGE 3 given a specific type of project has seen those things that have been successful, and those criteria that have not rendered the best results. Each criteria should however be specific to the needs of a given project at a given time. The which seems to be highest in priority, should be leading and be most readily identified as the highest n weight.
2.) Time Spent in Performance – Time is valuable, especially in projects which all have deadlines. If the deadlines are not met, it can have drastic issues on cost, and other aspects of the project. Time is occupied by those activities to which are assigned, as such selecting the appropriate criteria will speak to the value of the criteria selected.
3.) Time to Achieve Competence – In some areas, there becomes the need to ensure that there are competencies, and skillsets assured, that will ensure that overall competence of all parties involved remain intact. This too will ensure that the project can remain on track and that it can move forward.
4.) Consequence of Failure – While everyone wishes criterion will meet all standards and specifications, it becomes that preview of contingency that is always needed. “The consequences or cost of failure may take into account such things as injury to people, damage to property or equipment, disruption to colleagues or other work areas, customer dissatisfaction, diminished brand perception, legal liability, and so on” (Walton, 2020, p.
1).
The Twelve Cell Computer Battery
According to Asher Moses (2008), “Cells are individual cylindrical compartments in a battery that produce power” (Moses, 2008, p. 1). Further stated, “As many as 12 cells are used in a notebook battery” (Moses, 2008, p. 1). For the purposes of this assessment the twelve-cell computer battery will be of interest. The criteria in this matrix will be concluded upon, based

WEIGHTED AVERAGE upon the needs of the organization, as stated in classroom resources (Capella University, 2020,
4 multimedia). The matrix for the battery has been constructed below:
Company
A-Amazon
EVALUTAION CRITERIA
Cost/Price
Battery Life
Quality
Load
Capacity/Functionality
Delivery
Total
WEIGHT RATING
30 5
20 4
25
15
5
4
10
100
5
23
Company
B-
Company
C-Duracell
Energizer
SCORE RATING SCORE RATING
150
80
4
5
120
100
3
4
125
60
5
3
125
45
5
3
SCORE
90
80
125
45
50
465
3
20
30
420
4
19
40
380
The vendors chosen for this battery were Amazon, who makes their own batteries,
Energizer and Duracell; well known companies in the market who also make batteries. This is a quantitative measurement-based system, as has been calculated above. Amazon, seemingly had the best delivery options, even having the ability to receive the battery the same day. The quality of the batteries was rated high. Energizer was in a close second with an overall rating of 20.
While they were slower on delivery, they did have a longer reported battery life. Duracell, although well-known; came in last as a vendor. With advancements in need and technology, it seemed that the consumer would have to pay more than its competitors and costs many times to companies is always a large determining factor. The scale used was 1 – 5. The process of rating was performed for each vendor, until the matrix was completed.
Those criterion chosen were chosen cost or price, battery life, quality, load capacity, and delivery. Each of these criteria serve to be important to the company as follows:
Cost = Cost has a heavy weight and can be seen as a factor in any project. Costs are generally the one thing reviewed over and over, across a project’s life cycle. Because a project manager is

WEIGHTED AVERAGE given cost ahead of time when developing the scope. He or she must remain within the
5 constraints of that cost. Many want an affordable battery, so that given they have to replace it, it does not come with an inflated cost. From the standpoint of the company, they would like to be adequate enough to deplete revenues quickly and would like to achieve as many batteries as they can for a lower cost.
Battery Life = Battery life is an important criterion as well. Although the costs, which is important is vast, there also becomes the length that a person will have the ability to use the product. Consumers don’t mind paying more for a better product in quality, specifically if they can use their product on the go for example.
Quality = The quality is a large determining factor. Findings were that all the batteries researched were high in quality. The quality was measured by feedback from consumers.
“Quality measures are tools that help us measure or quantify processes, outcomes, perceptions, and organizational structure and/or systems that are associated with the ability to provide highquality products and/or that relate to one or more quality goals for a product” (CMS, 2020,p. 1).
Load Capacity = Consumers and companies alike wish to understand how the load of the battery will supply their needs. Simply stated, this allows the battery to ensure that the currents ae being effectively conveyed to the product.
Delivery = “The ability of service supplier to quickly and comprehensively understand the needs of a prospective clients can be an important competitive advantage when trying to win business”
(Oxley, 2013, p. 1). As such having a delivery option that is swift, can be a determining factor, even over that of cost for some clients.
Part B

WEIGHTED AVERAGE 6
Three Contract Types
There are various contracts that can be used during the procurement process. Some of these contracts are needed because the project manager realizes that meticulous work need be outsourced, and others are because they need specific persons with specified skills to enter at a particular level of the contract, i.e. the execution phase. Contracts can also be used in vendor relations, as an outsourcing tool to create a workflow for vendors. Contractual parties include the vendor and requestor which is generally the parent organization or project manager. The seller is generally the vendor or anyone who will be providing services for the contract in itself.
Three contract types in the area of procurement are as follows, as well as an explanation of why they appeal to project managers:
 “Fixed price contracts (FP)
 Firm Fixed Price (FFP) contracts
 Fixed Price Plus Incentive Fee (FPPI) contracts
 Fixed-Price with Economic Price Adjustment (FPEPA) Contracts
 Cost-Reimbursable contracts
 Cost Plus Fixed Fee (CPFF) contracts
 Cost Plus Award Fee (CPAF) contracts
 Cost Plus Incentive Fee (CPIF) contracts, and
 Time and Material contracts” (Ravi, 2017, p. 1)

WEIGHTED AVERAGE
Fixed priced contracts are great when the scope if fully understood. This means that not
7 only does the project manager fully understand it, but the vendor does as well. This may be for many reasons, such as the vendor and project manager have an ongoing relationship of finishing similar projects. The manager pays a fixed price, and the vendor delivers upon the work based on this price. Many managers like this because if something is altered, the price is already fixed, which will not change costing within the project.
As related to cost reimbursable contracts, “Eventually the primary model of cost reimbursable contracts is asking the buyer to pay for the cost incurred by the seller in completing the work” (Ravi, 2017, p. 1). Some of these contracts provide awards and incentives, which to some companies may be negotiable. If one wishes to save money however, this many not be an attractive option. If they have the money in budget, or if they have a high priority to get work done expeditiously; they may wish to move forward with a cost reimbursable contract.
The last of the project type is the time and material contracts also called T & M. In these contracts the seller must not only pay for the actual job to be completed, but also must pay for the materials. When the scope of the project is unclear, it may be best toc hose this format of contract as to not cause vendor/seller relationship strain.
Required Sections of a Project
Contracts can be valid or invalid. The four elements that are vital in contracts are as follows: agreement, capacity, consideration, and intention. As such this is a legally binding document that the project manager or organization and vendor is going into with one another.

WEIGHTED AVERAGE
Agreement – In order for an agreement to be whole, there must be not only the offer from the
8 project manager or company, but also an acceptance by the vendor. Differing from an invitation, terms are made. Acceptance of the contract by the vendor, is one that is not conditional. Those offers that may be countered, are not contractual, unless an acceptance is made.
Capacity
– Contracts are not to be made without an area of acceptance. But aside from acceptance, there must be an assurance that all parties understand what the contract says. If the vendors do not fully understand then they cannot be effectively bound into the contract. Those that are young or those that have mental illnesses cannot effectively be considered binding into contract.
Consideration
– Value must be in exchange, this is that which allows there to be a bind within the contract. There must be a level of satisfaction for both parties. Consideration cannot include things that are not legal, nor can sentimentally valuable items from the organization be of trade.
Intention – Intention, just simply implies that all those parties involved, understand clearly that they are about to enter into a contract, understand the contract, and are ready to move forward with the terms.
Contract Used for the 12 Cell Computer Battery
For the purposes of this project, the fixed costs may be best. Firm fixed price contracts is one that is extremely common. Some even consider this as a lump sum project type. This therefore means that no matter how much it costs the vendor; the project manager will pay one price for work needed. Not only does the vendor have to adhere to costs, but also, they must understand that the contract must be completed within a particular time commitment. There will not be incentives provided to the vendor under this contractual agreement.

WEIGHTED AVERAGE
References
Capella University. (2020). Evaluation Criteria Weighted System. Retrieved 1/20/20 from
9 http://media.capella.edu/CourseMedia/TS4068/media_eval_criteria_weigh_sys/OuterWra pper.asp
CMS. (2020, January). Quality measures. Retrieved 1/20/20 from https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-
Instruments/QualityMeasures
Edwards, A. (2019, January). How to Calculate a Weighted Average in Excel. How to Geek.
Retrieved 1/20/2019 from https://www.howtogeek.com/401826/how-to-calculate-aweighted-average-in-excel/
Moses, A. (2008, August). All about laptop batteries: Updated. CNet. Retrieved 1/20/20 from https://www.cnet.com/how-to/all-about-laptop-batteries-updated/
Oxley, P. (2013, January). Use of weighted criteria assessment to identify cost drivers in the tendering process. Parallel Project Training. Retrieved 1/20/20 from https://www.parallelprojecttraining.com/blog/use-of-weighted-criteria-assessment-toidentify-cost-drivers-in-the-tendering-process/
Ravi. (2017, August). Types of Procurement Contracts In Project Management. Scholar 99.
Retrieved 1/20/20 from https://www.scholar99.com/types-of-procurement-contractsproject-management/
Walton, S. (2020). The Importance of Weighting Selection Criteria. Fenchurch Corporate
Psychology. Retrieved 1/20/2020 from https://www.fenchurch.com.au/resources/How-toweight-selection-criteria.pdf