A state agency is considering two mutually exclusive alternatives for upgrading the skills of its technical staff. Alternative 1 involves purchasing software that will reduce the time required to collect background information on each client. The total cost for the purchase, installation, and training associated with the new software is $840,900. The present worth of the benefits from increased efficiency is expected to be $1,020,000. Alternative 2 involves developing multimedia training to improve the performance of the staff technicians. The total cost to develop, install, and train the technicians will be $1,780,000. The present worth of the benefits from increased performance due to training is expected to be $1,850,000. Use a B/C analysis to determine which alternative, if any, the agency should undertake.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A state agency is considering two mutually exclusive
alternatives for upgrading the skills of its
technical staff. Alternative 1 involves purchasing
software that will reduce the time required to collect
background information on each client. The
total cost for the purchase, installation, and training
associated with the new software is $840,900.
The present worth of the benefits from increased
efficiency is expected to be $1,020,000.
Alternative 2 involves developing multimedia
training to improve the performance of the staff
technicians. The total cost to develop, install, and
train the technicians will be $1,780,000. The present
worth of the benefits from increased performance
due to training is expected to be $1,850,000.
Use a B/C analysis to determine which alternative,
if any, the agency should undertake.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
