...TITLE PAGE Quantity of Workers | Quantity of Ovens | Quantity of Loaves of Bread Produced | Cost of Ovens | Cost of Workers Per Week | Total Cost | 0 | 2 | 0 | 500 | 0 | 500 | 1 | 2 | 50 | 500 | 450 | 950 | 2 | 2 | 125 | 500 | 900 | 1400 | 3 | 2 | 210 | 500 | 1350 | 1850 | 4 | 2 | 300 | 500 | 1800 | 2300 | 5 | 2 | 410 | 500 | 2250 | 2750 | 6 | 2 | 550 | 500 | 2700 | 3200 | 7 | 2 | 625 | 500 | 3150 | 3650 | 8 | 2 | 660 | 500 | 3600 | 4100 | 9 | 2 | 700 | 500 | 4050 | 4550 | 10 | 2 | 730 | 500 | 4500 | 5000 | Average total cost=Total costTotal output Marginal product of labor=ΔQuantity of breadΔWorkers Average product of labor=Quantity of breadQuantity of workers Marginal cost=ΔTCΔQ Average variable cost=Cost of workersQuantity of output Average fixed cost=Cost of ovenQuantity of output Average Total Cost | Marginal product of labor | Average product of labor | Marginal Cost | Average Variable Cost | Average Fixed Cost | --- | --- | --- | --- | --- | --- | 950 | 50 | 50 | 19 | 9 | 10 | 700 | 75 | 62.5 | 11.2 | 7.2 | 4 | 616.67 | 85 | 70 | 8.80 | 6.43 | 2.38 | 575 | 90 | 75 | 7.67 | 6 | 1.67 | 550 | 110 | 82 | 6.71 | 5.49 | 1.22 | 533.33 | 140 | 91.67 | 5.82 | 4.91 | 0.91 | 521.42 | 75 | 89.29 | 5.84 | 5.04 | 0.8 | 512.5 | 35 | 82.5 | 6.21 | 5.45 | 0.76 | 505.55 | 40 | 77.78 | 6.5 | 5.79 | 0.71 | 500 | 30 | 73 | 6.85 | 6.16 | 0.68 | Cost in dollars Cost in dollars Quantity of output Quantity of output Legend: ...
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...by management. The objective of these decisions is to select investments in real assets that will increase the value of the firm. (Kidwell and Parrino, 2009) Capital budgeting techniques help management systematically analyze potential business opportunities in order to decide which are worth undertaking. (Kidwell and Parrino, 2009) There are many techniques used in the process of capital budgeting. The most common methods are payback, discounted payback period, net present value (NPV), internal rate of return (IRR), accounting rate of return (ARR), and modified internal rate of return (MIRR). This paper will examine each of these techniques, weighing the pros and cons of each, and determining which technique in correct in theory. Payback Period The payback period is not a sophisticated capital budgeting technique. With using the payback period for evaluating projects, a project is accepted if the payback period is below a special threshold. (Kidwell and Parrino, 2009) The payback period is defined as the number of years that it will take a project to recover the initial investment of a company. This period can be easily calculated by adding the years before cost recovery to the remaining cost to recover divided by the cash flow during the year. It is because of the simplicity of this method is the most widely preferred tool for evaluating capital projects. Outside of its simplicity, the payback method provides a basic measure of the liquidity of the project. This...
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...Quality Management includes the process in which determines the quality policies, objectives, and responsibilities performed so that the project will satisfy the needs for which it was undertaken. Implementation of the policies and procedures within the project’s context will ensure that the project and product requirements are met and validated (PMI, pg 227). It is also the ability to plan and control quality and performs quality assurance. If you include these processes in your Project Quality Management process, your will improve the quality of your current and future projects. The first process of Project Quality Management understands the scope and deliverables of the project. In order to give high quality to your customer or stakeholders, you must know their expectation of the service or product. The basic approach of quality management is compatible with ISO International Organization for Standardization quality standards. Every project should deliver quality to which a set of inherent characteristics fulfill requirements with a grade as a design intent assigned to deliverables having the same functional use but different technical characteristics. The project team will need to apply appropriate levels of accuracy and precision for use in the quality management plan. Applying ISO compatibility to quality management, you will need to take the approaches below: • Customer satisfaction –Customers expectations are met (PMI, pg 229). • Prevention over inspection...
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...predominant in project management are: functional, matrix, and pure project. Organizational structures, refers to the way in which project groups within an organization are structured. Organizational structures, is a description of the methods of management used to organize the procedures of departments and individuals that contribute to achieving a common goal. Maintaining a basic understanding about organizational structure allows for leadership to make educated decisions concerning to the best structure for their organization. Another critical component to an organization is to have effective communication and coordination. This paper will compare and contrast the three primary project management organizational structures: functional, matrix, and pure project. Each structure has advantages and disadvantages and if used correctly the structure can help with the completion of the project. Functional Structure Functional organization structure has been around forever and is considered to be one of the oldest structures. In a functional structure there is usually a vertical hierarchy through the organizational breakdown structure. Within a project management functional structure, projects usually fall into two different categories. There are some projects that have a functional manager who combines with others who assign and share the work. Then, there are projects that are assigned to various departments that complete their portion of the project and report to the...
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...Phoenix Achieving Excellence in the Management of Human Services Organizations, (2002), There are four organizational structures that human services agencies have adapted as what is known as the “Formal and the Informal Organizational Charts” These organizational structures are known as Departmentalization, Matrix organizations, the project team, and the collegial model. There are five ways that an organization can be departmentalized; by function, by process by market, by consumer/client and by geographic area. Departmentalization breaks the organization down into parts or different departments within the organization. The advantage to this organizational structure is that it breaks the organization down into smaller departments. This helps to ensure that the clients get the services they need and that they are not shuffled from worker to worker. It also makes things easier on the supervisors or managers when something needs to be addressed. As disadvantage to departmentalization is that some personnel might be trained in more than one area and being stuck doing the same thing can sometimes lead to them being unsatisfied in their employment. Matrix organizations are more flexible than departmentalization is. A big advantage to matrix organizations is that pretty much the entire organization works together as a team. Employees in these organizations also have more than one supervisor; this can be both an advantage and a disadvantage. According to University of Phoenix, Achieving...
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...financial management is the goal of maximising shareholder wealth. Pertaining to this goal is the methodology of capital budgeting, referred to as Net Present Value analysis(NPV). This concept evaluates a capital investment project measuring the difference between its cost and the present value of its expected cash flows (Parrino et al. 2014, p.339). More simply, the NPV tell us the amount by which the benefits from a capital expenditure exceed its costs (Parrino et al. 2014, p.339). Along with any valuation method for a capital project are associated advantages and disadvantages essential to determining its relevance when compared with other methods of analysis. The advantages of NPV include, but are not limited to: the inclusion and importance of the 'time value of money (Accounting-Management 2014),' consideration of cash flows before, during and after a business venture, consistency with financial management goals and the high priority of profitability and risk involved in capital investment (Accounting-Management 2014). The inclusion of the time value of money is the most notable advantage of NPV supported by the notion, 'a dollar today is worth more than a dollar in the future (Investopedia 2014).' Present currency holds more value due to three reasons, accruing interest on investments, future money is subject to inflation and finally there is always the risk of not receiving promised money (Investopedia 2014). An organisation is unlikely to want to invest in a project that...
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...Research on Lean Project Management Summary This report explains theories and assumptions of current project management methods, and compares it to the Lean Production Delivery System (LPDS) by showing advantages and disadvantages of each method. This report also includes how the LPDS is more efficient than other methods by eliminating wastes and save cost and duration. Introduction: Client needs nowadays are getting more stylish due to the continuous new challenges in the environment, economy, technology and society for the necessity of creating or upgrading new projects. Meeting these requirements involves changing old methods in managing projects into new ones which are more essential to meet the needs of the market. Moreover, new concepts have been considered in addition for the time, cost and quality to guaranty the success of a project. Many new concepts could be presented for production management, but the Lean Production Delivery System (LPDS) is one of the most successful practices concerning the development of project management. For this matter, this report will include an investigation and discussion comparing the advantages and disadvantages of current project management methods and Lean Production Delivery Systems (LPDS). Current project management methods, Advantages and Disadvantages: As described in the text, ―Project Management is the application of knowledge, skills...
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...[pic] Course Title: Project Management Course Code:MGMT3314 Course Objectives: The aim of this course is to equip students with the knowledge of project management and skills that a successful project manager uses for effective initiation, implementation and termination of a project. Students get knowledge of different players involved in projects as well as an in depth information regarding organizational structure and communication etc. for project. Students are also taught how to prepare project feasibility study which is the core outcome of this subject. In addition to the regular course work, students will be indulged in discussion of articles and case studies also. 1. Introduction to Project Management: 1.1: Definition of a Project, 1.2: Importance of Project Management, 1.3: Project Management Life Cycle, 1.4: Types of Projects, 1.5: Project scope triangle 1.6: Characteristics of a Project 2. Project management life cycle 2.1: Scoping the project 2.2: Planning 2.3: Launching the plan 2.4: Monitoring and controlling 2.5: Closing out the project 3. Project manager skills and competencies 3.1: Classifying Project Managers 3.2: Skills and competencies 3.3: Business Achievement Competencies 3.4: Problem-Solving Competencies 3.5: Influence Competencies 3.6: People Management Competencies 3.7: Self Management Competencies, 4 Management organization/ organization structure 4.1: Pure Functional structure ...
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...MGMT 4135 Project Management Chapter-3 Organization Structure & Culture 1 Chapter-3 Organization Structure and Culture How will approved projects be implemented? • Three different project management structures to choose from: 1. Functional organization 2. Projectized or dedicated teams 3. Matrix structure 2 Chapter-3 Organization Structure and Culture How will approved projects be implemented? • Functional Organization 1. Even though top management decides to implement the project, implementation and coordination is managed by functional management. 2. One functional area plays a dominate role or has a dominate interest in the success of the project 3. While several functional organizations may have a role in the project the overall project will be managed within the normal hierarchy. 4. The project will be part of the working agenda of top management. 3 Chapter-3 Organization Structure and Culture How will approved projects be implemented? • Functional Organization Advantages 1. No change. Projects are managed within the functional structure of the organization to administer and complete project. No radical change in the operations of the parent company; status quo. Flexibility: Specialists in different functional units can temporarily work on the project then return to their normal work. In-Depth Expertise: The functional unit is assigned primary responsibility and in-depth experts within the unit can concentrate on the most crucial aspects...
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...Lean Project Management Research on Lean Project Management Summary This report explains theories and assumptions of current project management methods, and compares it to the Lean Production Delivery System (LPDS) by showing advantages and disadvantages of each method. This report also includes how the LPDS is more efficient than other methods by eliminating wastes and save cost and duration. Introduction: Client needs nowadays are getting more stylish due to the continuous new challenges in the environment, economy, technology and society for the necessity of creating or upgrading new projects. Meeting these requirements involves changing old methods in managing projects into new ones which are more essential to meet the needs of the market. Moreover, new concepts have been considered in addition for the time, cost and quality to guaranty the success of a project. Many new concepts could be presented for production management, but the Lean Production Delivery System (LPDS) is one of the most successful practices concerning the development of project management. For this matter, this report will include an investigation and discussion comparing the advantages and disadvantages of current project management methods and Lean Production Delivery Systems (LPDS). Current project management methods, Advantages and Disadvantages: As...
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...Project Management Organizational Structures MGT437 February 6, 2012 Susan Braun Project Management Organizational Structures When organizations receive a project, the most efficient way to complete it successfully is to incorporate it into an organizational structure. There are three structures available that companies can choose from; functional, pure, and matrix. This paper compares all three, showing the advantages and disadvantages of each. Functionally organized businesses use the project as part of the organization, making it part of a functional division within the firm. The project goes to the division that has the necessary qualifications and will benefit most if the project is successful. The project could fall under more than one division. There are advantages and disadvantages of using this form of organizational structure. The functional organizational structure allows the staff to be flexible. Employees can contribute as needed, and return to their normal position because all projects in that division are directly related to their field of work. Another benefit of functional organization is the shared knowledge and experience of the group, which provides a potential source of creative solutions to any problems that may arise. Some of the disadvantages of these organizational structures are that the client is not the main focal point of the project. The staff within the specified unit has their everyday workload to complete. This...
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...Beijing EAPS Consulting, Inc. The case study, “Beijing EAPS Consulting, Inc.” in the Custom Book, (2011), examines the project management structure of the Beijing EAPS Consulting (BEC) company. This case study also addresses about project plan itself and how the co-workers are struggling with this communication between both mangers. This project plan has demonstrated many strengths and weakness. The one thing that the project plan needs put into action are safeguards to insure that the project is completed on time. BEC has taken on the matrix organizational structure. This type of structure combines functional and divisional organization structure styles. There are advantages and disadvantages in utilizing this type of organizational structure. Advantages include resource utilization, specialization, cross functional areas, communication and flexibility. Resource utilization allows for the project departmental managers to focus on their strengths. Also, it allows for the managers to all the workers to specialize in an area of important for that project. In turn, it uses people across the company who specialize in a field that relates to the project at hand. This matrix structure permits cross departmental communication and flexibility to work on different projects across the company structure.( Guzman, 2012) However, with advantages come disadvantage with this type of matrix organizational structure. This structure increases complexity within the organization by leading...
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...Project management Name: Institution: Course: Tutor: Date of submission: Introduction to project management Program Evaluation and Review Technique This is simply the project managing method which in turn gives the time used by each factor of a project, and the amount of time needed for it to be finished. PERT tends to divide the project keen on activities and events that should be done. It comes up with a sequence which revolves around associations, and period in a structure of network. Basically the lines that are used in the link of the events are called paths, and also there is the longest path of connection that is linked with all the events which is known as the critical path. When looking at the span of the critical path, it is also the particular time a project will take in that order. If by any chance there is a delay of any kind, it will also delay the entire project. In conclusion PERT is a scheduling tool and it is not used in the lookout of the best or shortest methods of completion of any given project. (Baca, 2008). Critical Path Method This is a gradually method used in process planning. It gives account of the critical and also the non- critical duties basing on the aim of avoiding time casing troubles and method bottlenecks. The CPM is mainly placed to projects that are attached to various activities which are widely related. Some of the steps that can be used in the application of the CPM include the definition of the task at hand and writing them...
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...Project Motorcycles West End Manufacturer is a medium-sized manufacturer of motorcycle cruisers. We specialize in fuel-efficient cruisers with engine sizes ranging from 500 cc to 1000 cc. We have successfully manufactured and marketed the best- selling cruisers for the middleweight class. Our success has been greatly attributed to having an effective and efficient Project Management Office. However, the executives at West End Manufacturer are now interested in producing larger motorcycles in the touring class for income ranges from $55,000 to $100,000. In this paper, I will present which project organization best suits the development of the larger touring class motorcycles, outline the process steps the company will take in order to develop the motorcycle and provide a reason for the response. In this paper, I will recommend one strategy to the senior executives that the organization might use to balance short- and long-term needs; specify crucial resources needed during the production of the touring class motorcycles; suggest a project management leadership style that will be best for overseeing the operation of the business growth plan; and I will recommend at least three risk mitigation strategies to address project plan details that may be overlooked. Project Organization The Project Organization I selected that would best suit the development of the large touring class motorcycles is the Matrix Organizational Form. The reason I selected the matrix organizational form...
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...running a new development project. Hundreds of different kinds of models are known and used. Some of these include waterfall, code and fix, spiral, rapid prototyping, unified process, agile methods extreme programming, and COTS. Many are minor variations on just a small number of basic models. It is important to survey the main types of model and to consider how to choose between them. A lifecycle model is a description of the sequence of activities carried out in an SE project, and the relative order of these activities. . By changing the lifecycle model we can improve and/or trade off development speed, product quality, project visibility, administrative overhead, risk exposure, and customer relations. Here is a quick overview along with some advantages and disadvantages of five different lifecycles. The waterfall model is the classic life cycle model. It is widely known, understood, and used. In some respect the waterfall is the “common sense” approach. It was introduced by Royce in 1970. Advantages include that they are easy to understand and implement, that they are widely used and known, and that it reinforces good habits: define-before-design, and design-before-code. It identifies deliverables and milestones, its document driven, and works well on mature products and weak teams. Disadvantages include that it’s idealized and doesn’t reflect iterative nature of exploratory development, it’s unrealistic to expect accurate requirements early in a project, and that its software...
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