ISE 380 Project Management Homework 2 Due November 1st

ISE 380 Project Management
Homework 2
Due November 1st
1. Compare the estimates in Figures 7.5 and 7.6 with the following estimates based on MAD MAR and the tracking signal.
Period
1
2
3
4
5
6
7
8
Estimate
179
217
91
51
76
438
64
170
2. NSDC has a contract to produce eight satellites to support a worldwide telephone system (for Alaska Telecom Inc.) that allows individuals to use a single portable telephone in any location on earth to call in and out. NSDC will develop and produce the eight units. NSDC has estimated that the R&D costs will be NOK (Norwegian Krone) 12000000. Material costs are expected to be NOK 6000000. They have estimated the design and production of the first satellite will require 100000 labor hours and an 80 percent improvement curve is expected. Skilled labor cost is NOK 300 per hour. Desired profit for all projects is 25 percent of total costs.
How many labor hours should the eighth satellite require?
How many labor hours for the whole project of eight satellites?
What price would you ask for the project? Why?
Midway through the project your design and production people realize that a 75 percent improvement curve is more appropriate. What impact does this have on the project?
18 PROJECT MANAGEMENT: THE MANAGERIAL PROCESS
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