03 - practice problems - contain your name, student number, name of course and professor PDF

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BUSI3309ProjectManagement PRACTICEPROBLEMSSERIES#1  Question1. Basedontheinformationprovidedinthefollowingtable:

    Strategic Criteria: Fit   Weight: 10  Project  5 ProjectA 50  3 ProjectB 30  3 ProjectC 30 2  ProjectD 20

Risk   6

3

Market Potential  7

Probability ofSuccess  5

3

3

18 4

21 5

4

24 4

35 3

20 2

24 2

15

21 5

10 3

12

35

15

 Weighted Total Score

 104  109  85  82

 1.Whichcriterionismostimportanttotheleadershipteam? a. strategicfit b. risk c. marketpotential d. probabilityofsuccess   2. Whichprojecthasthehighestprobabilityofsuccess? a. ProjectA b. ProjectB c. ProjectC d. ProjectD   3. Whichprojectwouldyouselectifyouwerelimitedtoselectingonlyoneproject? a. ProjectA  b. ProjectB c. ProjectC d. ProjectD   4. Whichprojectisleastattractivebasedonthestrategicfit?  a. ProjectA  b. ProjectB c. ProjectC d. ProjectD      

2

  Question#2 TWCInc.isconsideringthreeR&DprojectsithasidentifiedasA,B,andC.Thecompanyis not sure it will undertake all three projects so it wants to rank them in terms of profitability.Rockinghamwillusefourcriteriatorankprojects–potentialprofitability, probability of success, cost, and growth potential. Following are TWC Inc.’s pairwise comparisonsfortheprojectsforeachcriteriaandforthecriteria. ProfitPotential





Probabilityofsuccess



Project

A

B

C



Project

A

B

C

A

1

2

1/3



A

1

1/3

1/4

B

1/2

1

1/6



B

3

1

1/2

C

3

6

1



C

4

2

1

 Cost





Growthpotential



Project

A

B

C



Project

A

B

C

A

1

3

1/5



A

1

4

6

B

1/3

1

1/4



B

1/4

1

2

C

5

4

1



C

1/6

1/2

1

 Criteria

ProfitPotential

Probabilityof success

Cost

Growth potential

ProfitPotential

1

1/4

6

1/2

Probabilityof success

4

1

Cost

1/6

1/4

1

6

Growthpotential

2

4

1/6

1

4

1/4

 RanktheprojectsforTWCInc.usingAHPinincreasingorderoftheiroverallscore. 



3

 Question#3 Acompany is considering three investment projects (A,B, and C). The scoringmatrix shownbelowprovidestherelativeweightofeachevaluationcriterionandthescores for each project on each criterion. A score ofl represents unfavorable, 2 satisfactory,and3favorable . Weight

Category Consultingcosts Acquisitiontime Disruption Culturaldifferences Skill redundancies Implementationrisks Infrastructure

10 10 10 10 25 20 20

A 2 2 3 2 1 2 1

Method B 2 1 3 1 2 3 2

C 2 1 2 3 3 1 3

 Answer each of the following question independently (i.e., always start from the initialdatashowninthescoringmatrix). (a) Using the weighted score model,whichproject w o u l d  y o u  r a t e  h i g h e s t ?   (b)Whatwouldyourrecommendationbeiftheweightfortheimplementationriskswent downto15andtheweightofculturaldifferenceswentupto20? (c) Suppose instead that Project A received a score of 3 for implementation risks. Wouldyourrecommendationchangeunderthesecircumstances? (d)Thevicepresidentoffinancehaslookedatyouroriginalscoringmodelandfeels that tax considerationsshouldbeincluded in the model witha weightof 15.In addition,theVPhasscoredthemethodsontaxconsiderationsasfollows:Project Areceiveda score of 2,ProjectB receivedascoreof 1, and ProjectC received ascoreof3.Howwouldthisadditionalinformationaffectyourrecommendation? 



4

 Question4 A project team at SP inc. has generated a long list of risks for an event under consideration. For five risk events shownin the tablebelow, a ratingby each team memberisobtainedintermsofseverity,likelihood,anddetectiondifficulty. Table1:RisksforMilestoneCelebrationandtheirRatings Risk

1.InvitedVIPguestsdon't attendtheevent

2.Guestsgetfoodpoisoning

3.Clinicaltrialsprovetobe unsuccessfulbutitistoolate tocancel theevent 

Rater#

Severity

Likelihood

Detection Difficulty

Evelyn

9

3

4

Arve Kyrre

8 6

5 6

6 2

Sindre

3

6

3

Evelyn Arve

10 9

2 4

7 5

Kyrre

6

4

3

Sindre Evelyn

8 10

5 4

2 6

Arve Kyrre

9 7

4 2

9 4

8 8 7 9

5 5 6 3

3 1 1 4

5 10 9 5 8

8 5 6 3 8

1 2 1 3 2

Sindre Evelyn 4.Anothermajoreventhostedby Arve acompetitorisscheduledforthe Kyrre sameday Sindre Evelyn Arve 5.Majorrainstorm Kyrre Sindre 

a. CalculatetheindividualandaggregatedRPNscoresforeachofthefiverisks b. BasedonRPNscores,identifytherisksmostrelevantforfurtherconsideration....