Chp 9, Review Questions 2. What are the advantages and disadvantages of reducing project scope to accelerate a project? What can be done to reduce the disadvantages? One such advantage is that the project is more likely to stay on time, and on budget. It helps keep the focus of the project in check and also reduces the duration or budget accordingly of the project. On the other hand, the disadvantage lies in the fact that the requirements that were determined initially have to be altered and prioritized. The good idea could be rejected by making that it’s out of scope. The disadvantages could be reduced by documenting the reasons or risks associated with including some of the items and a timeline could be figured out as to when and how these items could be addressed later on in the project is the possibility arises. 4. Identify four indirect costs you mig ht find on a moderately complex project? Why are these costs classified as indirect? Indirect costs are costs that cannot be attributed to a specific activity or work package. Some of these include supervision, consultants, debt interest charges, and machinery common to several activities, accounting and information processing, public relations, penalties or incentives for early or late completion. These project compression decisions are made without considering indirect costs and can adversely affect the project. 7. It is possible to shorten the critical path and save money. Explain how? One way to shorten the critical path and saving money is to have indirect costs, which are greater than the additional direct costs of shortening the critical path one unit of time. This results in saving money. Exercise 5. If the indirect costs for each of the durations are $1,200 for 16 weeks, $1,130 for 15 weeks, $1,000 for 14 weeks, $900 for 13 weeks, $860 for 12 weeks, $820 for 11 weeks, and $790 for 10 weeks, compute

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Reducing Project Duration

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Chp 9, Review Questions

2. What are the advantages and disadvantages of reducing project scope to accelerate a project? What can be done to reduce the disadvantages?

One such advantage is that the project is more likely to stay on time, and on budget. It helps keep the focus of the project in check and also reduces the duration or budget accordingly of the project. On the other hand, the disadvantage lies in the fact that the requirements that were determined initially have to be altered and prioritized. The good idea could be rejected by making that it’s out of scope. The disadvantages could be reduced by documenting the reasons or risks associated with including some of the items and a timeline could be figured out as to when and how these items could be addressed later on in the project is the possibility arises.

4. Identify four indirect costs you might find on a moderately complex project? Why are these costs classified as indirect?

Indirect costs are costs that cannot be attributed to a specific activity or work package. Some of these include supervision, consultants, debt interest charges, and machinery common to several activities, accounting and information processing, public relations, penalties or incentives for early or late completion. These project compression decisions are made without considering indirect costs and can adversely affect the project.

7. It is possible to shorten the critical path and save money. Explain how?

One way to shorten the critical path and saving money is to have indirect costs, which are greater than the additional direct costs of shortening the critical path one unit of time. This results in saving money.

Exercise

5. If the indirect costs for each of the durations are $1,200 for 16 weeks, $1,130 for 15 weeks, $1,000 for 14 weeks, $900 for 13 weeks, $860 for 12 weeks, $820 for 11 weeks, and $790 for 10 weeks, compute the total costs for each of the durations. Plot these costs on a graph. What is the optimum cost-time schedule?

Act Crash Cost (Slope) Maximum Crash Time Normal Time Normal CostA 10 1 4 30B 70 2 7 60C 0 0 1 80D 20 2 4 40E 50 3 5 110F 200 3 2 90G 30 1 2 60H 40 1 2 70I 0 0 2 140 680

Time unit = 1 week