BMGT485 Pop Quiz, Monday, May 8th
Version B
NAME: ______________________________
Topics:
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Reducing Project Duration
Monitoring Project Performance
Project Selection
Guidelines:
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This assessment is closed-book, closed notes.
Electronics are NOT allowed except for a calculator.
Raise your hand to seek clarification about questions. Topic/content questions cannot be
answered during the quiz.
Students are not allowed to leave the classroom while taking the quiz.
For quiz grading and feedback, keep the last page and submit answers on Canvas.
Honor Pledge:
“I pledge on my honor that I have not given or received any unauthorized assistance on this
examination.”
Signature: _____________________________________
Good luck!
1) (5 points) Below is the network representation of a project. Estimate the project duration.
Calculate the earliest start, earliest finish, latest start, latest finish, and slack for each activity.
Report the critical path.
Project Duration:
Critical Path:
2) (15 points) Find the crash point for the previous project network. Compress one time unit
per move using the least-cost method. Assume the total indirect cost for the project is $1300
and there is a savings of $80 per time unit reduced. Record the total direct, indirect, and
project costs for each duration. Reduce project duration until crash point.
Activity Slope
A
B
C
D
E
F
Iteration
(Duration)
100
60
50
30
110
Max
Crash
1
1
2
1
1
Activities
Crashed
Normal
$200
$140
$80
$100
$60
$200
Crashed Cost
Total Direct
Cost
Total Indirect
Cost
Total Cost
What is the optimal project duration?
What is the minimum total cost?
Create a graph to show Total Direct Cost, Total Indirect Cost and Total Cost for different project
durations. (You may skip the graph as it will not be graded for the quiz.)
3) Below is the budget for each task in the previous project network. Create a time phased
budget for the project.
Task
A 3 4 4
B 2 3
C 2
D 2 2 2 3 3
E 3 2 3 2 3
F 2 2 2
a. (5 points) Create a time-phased budget for the project.
Task
Budget 0
A
B
C
D
E
F
Total
Cumulative
1
2
3
4
5
6
7
8
9
10
11 12
b. (10 points) At the end of week 7, the amount of work completed and actual cost so far for
each task is as follows:
Task
A
B
C
D
E
F
AC
100% 10
100%
4
100%
2
60%
7
80% 10
Calculate cost variance and cost performance index.
Calculate schedule variance and schedule performance index.
What percentage of the project has been completed based on the budgeted cost? PCIB
Plot the planned value, variances, and performance indices in the appropriate chart. (You may
skip the graph as it will not be graded for the quiz.)
What is the overall status of the project?
A)
B)
C)
D)
Over budget and ahead of schedule
Over budget and behind schedule
Under budget and ahead of schedule
Under budget and behind schedule
Explain:
4) The Uber Bike Company has set up a weighted scoring matrix for evaluation of potential
software applications to enhance its service.
a. (3 points) Calculate the payback period for each project.
The Alpha project needs a $280,000 initial investment and it will generate $120,000 the first year
and $60,000 annually after. The Beta project needs a $240,000 initial investment and it will
generate $45,000 annually. Lastly, Gamma needs $380,000 and it will generate $200,000 on the
first year and $300,000 on the second year.
What is the payback period for each project? Show your work.
Project
Alpha
Beta
Gamma
Payback Period (in years)
b. (9 points) Complete the scoring matrix and calculate the weighted total score for each
project.
For cost, the company uses the following scoring system:
Estimated cost
Score
$250,000 or less
5
More than $250,000 to $500,000
4
More than $500,000
2
For payback period, the company uses the following scoring system:
Payback period
Score
Less than 2 years
5
2 to 5 years
4
More than 5
2
Criteria
Weight
Alpha
Beta
Gamma
Supports Business Cost
Strategy
20
40
5
3
2
Payback
Period
40
Weighted
Total
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c. (3 points) Interpret results. Answer the following questions:
Which project should be selected based on weighted total score? ___________________
If “supports business strategy” is a must objective for the company (project must have a score of
3 or higher in that criterion for consideration),
Which project should be discarded? __________________
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correctly!
Version: A or B
Question 1
Project Duration:
Critical Path:
Question 2
What is the optimal project duration?
What is the minimum total cost?
Question 3
Calculate cost variance and cost performance index.
Calculate schedule variance and schedule performance index.
What percentage of the project has been completed based on the budgeted cost?
PCIB
A) B) C) D)
Question 4
Project selected? ___________________
Project discarded? __________________