Probability

The summation of durations for the expected completion of activities on a critical path of 36.5 and a variance of 6 is given by:

Z= (32-34)/2.4495=-0.81799

From the normal table, the probability of – 0.81799 is 0.33

If the number of days were reduced by four days, the following process would be undergone. First a PERT analysis would be performed in order to calculate the value of I for all critical activities (Snyder, 2013). The next step requires one to pick an activity that has the smallest value of I. the duration of the activity would be shortened as much as possible. This means that it should be reduced until it reaches the crash time or when another activity path becomes critical. The last step is conditional such that if the time can no longer be reduced any further, the one should stop. Otherwise the second step should be retrieved until a modified crash program is reached.

Project cost basically refers to the approved budget which is composed of all the expenses that are likely to occur in the course of the project (Snyder, 2013). In order to come up with an accurate budget for the project, requirements such as the materials that are going to be used, transport costs, administrative costs, overhead costs and other direct costs must be skillfully estimated. During the conduction of the project, techniques such as cost aggregation, reserve analysis and funding limit reconciliation are used (Snyder, 2013).

Changes in timing and costs of a project can results to the following of implication. First, the initial time frame does not capture the changes and hence the over budgets are not implemented (Snyder, 2013). Other implications include increased maintenance costs, deferring of the benefits cancellation of the project among other possible implications. The concepts of time and cost management of a project can be applied in areas such as education and training of staff, risk management, project integration and cost management among other areas (Snyder, 2013).

 

 

 

Reference

Top of Form

Snyder, C. (2013). A project manager's book of forms: A companion to the PMBOK guide, fifth edition. Hoboken, N.J: Wiley.

Bottom of Form