Submitted By andypicken

Words 484

Pages 2

Words 484

Pages 2

Equipment/Material

$15,000 +$35,000= $ 50,000.00

(400 feet at $25 per foot) 400(25)= 10,000.00

2 pieces of equipment at $600= 1,200.00

(3,700 of equipment at $2.70 per pound) 3,700(2.70) = 9,990.00

Total Equipment/Material $ 71,190.00

Installation/Labor (2 maintenance specialist for 2 days at 8 hours per day at $35 per hour)

$35.00(8)= $280.00 per person per day

$280.00(2)=$560.00 per person for 2 days

$560.00 (2)= $1,120.00 for installation 1,120.00

Fixed Labor = 7,500.00

Installation/Labor $ 8620.00

Overhead Engineering 15% of 71,190 10,678.50 Inspection 3% of $8620 258.60 General and Administrative Expenses

5% of $71,190=$3559.50 + 5% of $8620.00= $431.00 $3559.50 + $431.00 = 3,990.50 Total Overhead $ 14,927.60

Total Project Cost: $71,190.00 + $8620.00 + $14,927.60= $ 94,737.60 2-2 Three-point Estimate Problem

A)

Price for the material is $0.30/ lb

The most optimistic price estimate is $0.24/lb

The most pessimistic estimate is $0.62/lb

The expected price of the material:

Pexp = (Popt + 4 x Pmost + Ppess)/6

Pexp = (0.24 + (4 x 0.30 + 0.62) / 6

Pexp = 0.24 + (1.2 + 0.62) / 6

Pexp = 0.24 + 1.82/ 6

Pexp= 2.06 /6

Pexp = 0.34/ lb

B)

One Ton = 2,000 lbs

Popt = Optimistic Cost = 37 Tons

Pmost = Most Likely Cost = 40 Tons

Ppess = Pessimistic Cost = 49 Tons

Pexp = (Popt + 4 x Pmost + Ppess) / 6

Pexp = (37 + 4 x 40 + 49) / 6

Pexp = 37 + 160 + 49/ 6

Pexp = 246/ 6

Pexp = 41 tons

C) Simple Method:

Expected Cost = $0.34 lbs x (41 tons(2,000)

$.34 x 82,000= $27,880.00 D) Complex Method:

Expected Cost: $0.34/lb x 82,000lbs = $27,880

Most Optimistic Cost: $0.24 x (37) (2,000)…...

...cost estimates, and to assign management and task responsibilities. In a WBS the top layer is very general, and each subsequent layer is more and more specific. Every level in the WBS is the detailed explanation of the level above it. Building a WBS helps to: * Provide a detailed and comprehensive illustration of project scope. * Monitor progress – because the tasks on the WBS become the basis for monitoring progress because each is a measurable unit of work. * It also helps to create accurate cost and schedule estimates - it provides a detailed structure to estimate and capture costs for equipment, labor, and materials on each task. * Finally it helps to build project teams – because every team member wants clear works assignments and a sense of how his or her work fits into the overall effort – a good WBS does both. The project team’s commitment to the plan is further increased by having them to participate in building the WBS. The WBS can be created using a graphic chart format or as an indentured list. The indentured list format is presented in this report; however the graphic chart format is also available should you require it. Often times the top levels of the WBS identify the physical deliverables to be produced. By subdividing a project like this, according to physical deliverables, it is easy to attach performance, cost, and time requirements to each deliverable and to assign responsibility for meeting those requirements. Problem at Hand A......

Words: 775 - Pages: 4

...Pm592 Week 5 Assignment PM 592 Week 5 Assignment Problem 5-1 – Earned Value Calculation 1. What are the PV, EV and AC for the project at the end of end Day 6? PV = $101,000 AC = $88,880 EV = (PV x % Completed) = 101,000 x 6/7 = $86,860 2. What are the SV, CV, SPI and CPI for the project? SV = (EV-PV) = $86,860 - $88,880 = $-14,140 (Project is behind schedule) CV = (EV-AC) = $86,860 - $88,880 = $-2,020 (Project is over budget) SPI = (EV/PV) = .86 (If the number is below 1.0 which means the project is behind schedule) CPI = (EV/AC) = .97 (If the number is below 1.0, so the cost is greater than budget (over-budget) 3. Asses the project performance to date? Do you get to have the celebration. No celebration. The project at the end of day 6 is overbudget and behind schedule. Problem 5-2 – 1. Calculate the schedule variance for each task and the total project. - (EV-PV) Task A – (1600 – 1600) = 0 Task B – (4000 – 4000) = 0 Task C – (12,645 – 14050) = -1405 Task D – (580 – 1450) = -870 Task E – (0 – 2000) = -2000 Task F- = 0 Task G = 0 Total SV = -4275 2. Calculate the cost variance for each task and the total project. - (EV-AC) Task A – (1600 – 1800) = -200 Task B – (4000 – 4500) = -500 Task C – (12,645 – 13500) = -855 Task D – (580 – 500) = 80 Task E – (0 – 0) = 0 Task F- = 0 Task G = 0 Total C = -1475 3. What is your......

Words: 320 - Pages: 2

... A 4 weeks -- 1 Cutting Platform/$800 day. | B 4 weeks -- 1 Sand Blast Machine/$1,000 day. | C 3 weeks B 1 Rolling Mill/$750 day. | D 2 weeks A,C 1 Automatic Welder/$1,000 day. | E 3 weeks B 1 Rolling Mill/$750 day. | F 5 weeks D,E 1 Sand Blast Machine/$1,000 day. | The fabricator has only one machine of each type available at the above costs, and operations cannot be split (i.e. once started, the task must finish). Additional equipment can be rented at a 75% cost premium if needed. Hint: A premium implies you pay an amount above and beyond the current amount. a. Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the resources in conflict and the quantity of resource involved. Hint: The key to this problem is the layout you choose for the project. To identify resource conflicts, the schedule will have to include a timescale. b. What is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? Hint: The Project Manager may have to be creative here to propose the optimal solution. Check answer: There is a 3 day conflict and there is extra cost involved in resolving. Answer: a. Conflict exists during weeks 5, 6, &......

Words: 812 - Pages: 4

...5-1 through 5-2 (Graded) 5-1 Earned Value Calculation You are 4 months into a 6 month project. The project is linear, which means that the progress and spending occurs at a constant rate. Our crack project team of highly skilled associates has worked diligently and put in extra hours to keep the project going. Our accounting department has provided the following data at the end of month 4: Actual cost to date = $88,800 Planned expenditures to date = $101,000 The CFO is excited and has sent you an email congratulating you for being 12.07% under budget. However, is it really time to hold a team celebration? That would be fun but your project manager mentality kicks in. Those numbers look good but how are we ‘really’ doing? To understand the true project performance, we need to apply earned value techniques. The missing piece we need is Earned Value (i.e. what we have actually accomplished so far). You meet with your team and find that only 6 of the 7 tasks scheduled to be complete by the end of month 4 have actually been completed. Task 7 isn’t even started! This information gives you the final data you need to apply ‘Earned Value’ and develop an objective analysis. 1. What are the PV, EV, and AC for the project at the end of month 4? 2. What are the SV, CV, SPI, and CPI for the project? 3. Assess the project performance to date? Do you get to have the celebration? 1. PV - $101,000 AC -$88,800 EV = $101,000 X 6/7(.857) = $86,571 2. SV=......

Words: 679 - Pages: 3

...all 3 multi-part problems for this week's assignment. 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Check answer: Total project cost = $94,737.60 Answer – Material/Equipment Amount ($) Totals Equipment #1 15000 =15,000 Equipment #2 35000 =35,000 Electrical hookup......

Words: 677 - Pages: 3

...PM 592 Week 5 Assignment Problem 5-1 – Earned Value Calculation 1. What are the PV, EV and AC for the project at the end of end Day 6? PV = $101,000 AC = $88,880 EV = (PV x % Completed) = 101,000 x 6/7 = $86,860 2. What are the SV, CV, SPI and CPI for the project? SV = (EV-PV) = $86,860 - $88,880 = $-14,140 (Project is behind schedule) CV = (EV-AC) = $86,860 - $88,880 = $-2,020 (Project is over budget) SPI = (EV/PV) = .86 (If the number is below 1.0 which means the project is behind schedule) CPI = (EV/AC) = .97 (If the number is below 1.0, so the cost is greater than budget (over-budget) 3. Asses the project performance to date? Do you get to have the celebration. No celebration. The project at the end of day 6 is overbudget and behind schedule. Problem 5-2 – 1. Calculate the schedule variance for each task and the total project. - (EV-PV) Task A – (1600 – 1600) = 0 Task B – (4000 – 4000) = 0 Task C – (12,645 – 14050) = -1405 Task D – (580 – 1450) = -870 Task E – (0 – 2000) = -2000 Task F- = 0 Task G = 0 Total SV = -4275 2. Calculate the cost variance for each task and the total project. - (EV-AC) Task A – (1600 – 1800) = -200 Task B – (4000 – 4500) = -500 Task C – (12,645 – 13500) = -855 Task D – (580 – 500) = 80 Task E – (0 – 0) = 0 Task F- = 0 Task G = 0 Total C = -1475 3. What is your assessment of the project at this time? The project is behind schedule and overbudget at the......

Words: 316 - Pages: 2

...problems for this week's assignment. 2-1 Basic Estimating Problem Please look at the Attached Excel sheet for answer for first problem only. 2-2 Three-point Estimate Problem (a) Data: a = the best case estimate = $0.24/lb. m= the most likely estimate = $0.30/lb. b= the worst case estimate = $0.62/lb. Answer: We have to determine the E-value: E = (a + (4*m) + b) /6 E = (0.24 + (4 * 0.30) + 0.62)/ 6 E = $0.34/lb. (b) Data: a = the best case estimate = 37 tons m= the most likely estimate = 40 tons. b= the worst case estimate = 49 tons Answer: We have to determine the E-value: E = (a + (4*m) + b) /6 E = (37 + (4 * 40) + 47)/ 6 E = 40.66 tons or 41 tons if you want to round it up. (c) Using the estimates from 1 & 2, what is the expected cost for structural steel over the life of the project? ( 41 tons * 2000lbs.) = 82,000 lbs. Therefore, the estimates would be: $0.34/lb * 82,000 lbs = $27,880 (d) Using the "Complex" three-point method, what is the expected cost for structural steel over the life of the project? Expected cost: $0.34/lb * 82,000 lbs = $27,880 Most optimistic cost: $0.24/lb * 74,000 lbs = $17,760 Most pessimistic cost: $0.62/lb * 98,000 lbs = $60,760 The final estimated cost for the material is: (($17,760 + (4 * $27,880) + $60,760))/6 = $31,673.33 2-3 Contingency......

Words: 411 - Pages: 2

...Instructors: Both questions and answers have been provided to assist you with the grading process. The correct answers can be found in blue text. 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Check answer: Total project cost = $94,737.60 Equipment and Material Two pieces......

Words: 771 - Pages: 4

...Week 2 Assignment Problems 2-1 Basic Estimating Problem: * Equipment / Material: 1. $15,000 + $35,000 = $50,000.00 2. 400ft x $25.00 per ft. = $10,000.00 3. $600 x (2) pcs of equipment= $1,200.00 4. 3,700 lbs @ $2.70 per pd= $9,990.00 Total Equipment/ Material = $71,190.00 * Installation/Labor: 5. $35.00 per hour x (8) hours = $280.00 per day per person $280.00 per person x (2) = $560.00 per person x (2) days = $1,120.00 6. Fixed Labor = $7,500.00 Total Installation/Labor = $8,620.00 * Overhead: 7. Engineering 15% of $71,190 = $10,678.50 8. Inspection 3% of $8,620 = $ 258.60 9. Equipment 5% of $71,190= $ 3,559.50 + $8,620 x 5% = $431.00 = $3,990.50 Total Overhead= $14,927.60 Total Project Cost = $94,737.60 * 2-2 Three Point Estimate Problem A) Price for the material is $0.30/ LB The most optimistic price estimate is $0.24/LB The most pessimistic estimate is $0.62/LB The expected price of the material: Pexp = (Popt + 4 x Pmost + Ppess)/6 Pexp = (0.24 + (4 x 0.30 + 0.62) / 6 Pexp = 0.24 + (1.2 + 0.62) / 6 Pexp = 0.24 + 1.82/ 6 Pexp= 2.06 /6 Pexp = 0.34/ LB B) One Ton = 2,000 lbs Popt = Optimistic Cost = 37 Tons Pmost = Most Likely Cost = 40 Tons Ppess = Pessimistic Cost = 49 Tons Pexp = (Popt + 4 x Pmost + Ppess) / 6 Pexp = (37 + 4 x 40 + 49) / 6 Pexp = 37 + 160 + 49/ 6 Pexp = 246/ 6 Pexp = 41/ Tons C) Expected Cost for......

Words: 464 - Pages: 2

...Problems 5-1 through 5-2 (Graded) 5-1 Earned Value Calculation You are 4 months into a 6 month project. The project is linear, which means that the progress and spending occurs at a constant rate. Our crack project team of highly skilled associates has worked diligently and put in extra hours to keep the project going. Our accounting department has provided the following data at the end of month 4: Actual cost to date = $88,800 Planned expenditures to date = $101,000 The CFO is excited and has sent you an email congratulating you for being 12.07% under budget. However, is it really time to hold a team celebration? That would be fun but your project manager mentality kicks in. Those numbers look good but how are we ‘really’ doing? To understand the true project performance, we need to apply earned value techniques. The missing piece we need is Earned Value (i.e. what we have actually accomplished so far). You meet with your team and find that only 6 of the 7 tasks scheduled to be complete by the end of month 4 have actually been completed. Task 7 isn’t even started! This information gives you the final data you need to apply ‘Earned Value’ and develop an objective analysis. 1. What are the PV, EV, and AC for the project at the end of month 4? 2. What are the SV, CV, SPI, and CPI for the project? 3. Assess the project performance to date? Do you get to have the celebration? 5-2 Earned Value Calculation Project Schedule and Budget Data......

Words: 455 - Pages: 2

...Michael West, D00474854 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Check answer: Total project cost = $94,737.60 Equipment & Materials Cost Equipment $15,000 $35,000 Total $50,000 Materials for Electrical Hookup 400/ft * $25.00 per......

Words: 1173 - Pages: 5

... Week two assignment 2-1 Basic Estimating Problem Equipment Costs $15,000.00 $35,000.00 $50,000.00 Electrical Hook-up 400 Feet $25.00/Ft $10,000.00 Equipment Controls 2 $600.00 $1,200.00 Start-up Materials 3700 Lbs $2.70/Lb $9,990.00 Total Equipment & Material $71,190.00 Personnel 2/day for 8 hours 32 Hours $35.00 Per Hour $1,120.00 Contract Labor Fixed Costs $7,500.00 $7,500.00 Total Installation & Labor $8,620.00 $8,620.00 Engineering Costs for Equip & Materials 15% $10,678.50 Inspections 3% $00,258.60 General & Admin 5% $03,990.50 2-2 Three-point Estimate Problem (a) Use the three-point estimating process to determine the expected price of the material. =(0.24+(4*0.30)+0.62)/6 = $0.34/lb. (b) Use the three-point estimating process to determine to determine the expected amount of structural steel needed for the project? =(37+(4*40)+49)/6 = 41 tons (c) Using the estimates from 1 & 2, what is the expected cost for structural steel over the life of the project? $ 0.34 * 82,000 = $27,880 (d) Using the "Complex" three-point method, what is the expected cost for structural steel over the life of the project? Expected cost: 0.34 * 82,000 = $27,880 Most optimistic cost: 0.24 * 74,000 = $17,760 Most pessimistic cost: 0...

Words: 436 - Pages: 2

...Instructions: Please complete all 3 multi-part problems for this week's assignment. 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Check answer: Total project cost = $94,737.60 2-2 Three-point Estimate Problem (a) A project requires the use of structural steel in......

Words: 828 - Pages: 4

...Budget Report Week 2 Assignment ID Task Name Total Cost 1 Equipment Equipment 1 $15,000 Equipment 2 $35,000 Electrical hook up $10,000 Equipment total cost $60,000 2 Material Start up material $9,990 2 controls for each piece of equipment $1,200 Material total cost $11,190 Equipment and Material Total Cost $71,190 3 Installation Company labor $1,120 Installation total cost $1,120 4 Labor Contract labor $7,500 Labor total cost $7,500 5 Overhead Engineering estimated to be 15% of (equipment /Material) $10,679 Inspection estimated to be 3% of labor cost $259 General and Administrative expenses are estimated to be 5% of the total of equipment/material and labor $3,991 Overhead total cost $14,928 Total project cost $94,738 2.2 Three Point estimate Problem (A) Expected price = (0.24 + (4 x 0.3) + 0.60/6 $0.34 lbs (B) Expected Steel usage = (49tons + (4 x 40tons) + 37tons) / 6 41 Tons 82000.00 lbs ( C) Expected......

Words: 364 - Pages: 2

...Instructions: Please complete all 3 multi-part problems for this week's assignment. 2-1 Basic Estimating Problem Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 – 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9). 1. Two pieces of equipment costing $ 15,000 and $ 35,000 2. Material required for electrical hook-up is 400 feet at $ 25 per foot 3. Controls for each piece of equipment are estimated at $ 600 each 4. Required start-up material is 3,700 pounds at $ 2.70 per pound 5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour 6. Contract labor is estimated at a fixed price of $ 7,500 7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience 8. Inspection is estimated to be 3% of (labor) cost based on past experience 9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience. Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9. Check answer: Total project cost = $94,737.60 2-2 Three-point Estimate Problem (a) A project requires the use......

Words: 828 - Pages: 4