Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 3, Problem 1ED

Ethical Dilemma

Two examples of massively mismanaged projects are TAURUS and the “Big Dig.” The first, formally called the London Stock Exchange Automation Project, cost $575 million before it was finally abandoned. Although most IT projects have a reputation for cost overruns, delays, and underperformance. TAURUS set a new standard.

But even TAURUS paled next to the biggest most expensive public works project in U.S. history—Boston’s 15-year-long Central Artery/Tunnel Project. Called the Big Dig, this was perhaps the poorest and most felonious case of project mismanagement in decades. From a starting $2 billion budget to a final price tag of $15 billion, the Big Dig cost more than the Panama Canal, Hoover Dam, or Interstate 95, the 1,919-mile highway between Maine and Florida.

Read about one of these two projects (or another of your choice) and explain why it faced such problems. How and why do project managers allow such massive endeavors to fall into such a state? What do you think are the causes?

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Summary Introduction

Introduction: Projects are enormously done in all companies and in recent time high emphasis have been given to project management because of its cost effectiveness when being properly executed and its expensive nature when proper planning and execution is not done. Such unplanned and improperly executed projects which cost $575 million before it was dropped out is project TS. TS is one of project with poor planning, execution with delays which made cost overruns.

Another project which was more unsuccessful than TS was project BD. The poorest and most felonious case of project mismanagement started from $2 billion budget to $15 billion.

To determine: The reason why the project faced such problems and why did the project managers allowed such problem to happen and its causes.

Explanation of Solution

Reason why the project faced such problems and why did the project managers allowed such problem to happen and its causes:

Project: TS

What is Project TS:

Project TS is an effort to move the manual paper based trading system to a computerized system. In 1980’s when share trading had been much popular and was rapidly growing, there was an attempt to convert all the manual paper based works to computerized system.

Reason for failure of project TS:

Project TS failed mainly due to two reasons. The first is creation of central database which would act as a hub and execution of the transactions. This demanded entire modification in the process of trading and it also resulted in the loss of registration business which the professionals highly opposed.

Another reason is the failure by design committee and lack of proper governance by the project managers and poor strategic decision making and failure to convince the stakeholders.

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3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project. Investment required Expected economic lifetime R200 000 5 years. Minimum required rate of return 10% Net annual cash inflows 1st year 2nd year R40 000 R100 000 R90 000 3rd year R40 000 4th year R30 000 5th year
Now Need the below questions support according the above details: Feasibility/Risk Assessment: • Calculate individual scores for TELOS feasibility factors. Calculate an overall score. Important: providejustification/explanation for the scores, including the overall score. For example, if you assign theTechnical feasibility a score of 9, then please explain why.• Technical–Is it likely that our staff can build it?• Economic–Is the projected return worth the investment?• Legal–Will doing this project violate laws or contractual agreements?• Operational–If built, is it likely that the system will really address or solve the business problem?• Schedule–Is it likely to be built in time to realize benefits and/or meet constraints?
Answer the questions in this section.Important note: Questions that require diagrams can be answered on a Word document. Ensure that your answers are clearly labelled.QUESTION:Manufacturers is considering renovating their offices at their head office.1. Use the generated information to calculate the Net Present Value of the project, to decide whether to go ahead with the project.Investment required R200 000Expected economic lifetime 5years.Minimum required rate of return 10%Net annual cash inflows1st year R40 0002nd year R100 0003rd year R90 0004th year R40 0005th year R30 000

Chapter 3 Solutions

Principles Of Operations Management

Ch. 3 - Prob. 10DQCh. 3 - Define earliest start, earliest finish, latest...Ch. 3 - Students are sometimes confused by the concept of...Ch. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Would a project manager ever consider crashing a...Ch. 3 - How is the variance of the total project computed...Ch. 3 - Describe the meaning of slack, and discuss how it...Ch. 3 - How can we determine the probability that a...Ch. 3 - Name some of the widely used project management...Ch. 3 - What is the difference between the waterfall...Ch. 3 - The work breakdown structure (WBS) for building a...Ch. 3 - James Lawson has decided to run for a seat as...Ch. 3 - Prob. 3PCh. 3 - Refer to the table in Problem 3.3. a) Draw the AON...Ch. 3 - Draw the activity-on-node (AON) project network...Ch. 3 - Given the activities whose sequence is described...Ch. 3 - Prob. 7PCh. 3 - Roger Ginde is developing a program in supply...Ch. 3 - Prob. 9PCh. 3 - The activities described by the following table...Ch. 3 - Prob. 11PCh. 3 - The activities needed to build a prototype laser...Ch. 3 - Prob. 13PCh. 3 - Dave Fletcher (sec Problem 3.12) was able to...Ch. 3 - Ross Hopkins, president of Hopkins Hospitality,...Ch. 3 - A renovation of the gift shop at Orlando Amway...Ch. 3 - Kelle Carpet and Trim installs carpet in...Ch. 3 - The estimated times and immediate predecessors for...Ch. 3 - Prob. 21PCh. 3 - Four Squares Productions, a firm hired to...Ch. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - Development of Version 2.0 of a particular...Ch. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 1.1VCCh. 3 - Prob. 1.2VCCh. 3 - Project Management at Arnold Palmer Hospital The...Ch. 3 - Prob. 1.4VCCh. 3 - Managing Hard Rocks Rockfest At the Hard Rock...Ch. 3 - Managing Hard Rocks Rockfest At the Hard Rock...Ch. 3 - Managing Hard Rocks Rockfest At the Hard Rock...Ch. 3 - Managing Hard Rocks Rockfest At the Hard Rock...
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