E4_project_risk_key - Event 4 Project Cost Estimation with...

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1 Event 4 – Project Cost Estimation with Risk 1. A project to design and install an assembly line has the WBS below. We are uncertain about the WP costs of the project. The managers for the various tasks have estimated the mean and standard deviations of the work package costs. For this problem we use the normal distribution for the cost models. Throughout this event assume the WP costs are independent. Description Mean Std. dev. 1Process design 14 5 2Capacity Planning 23 2 3Material handling 11 2 4Facilities planning 17 2 5Purchasing 107 10 6Development of training 18 5 7Actual training 51 4 8Installation and Integration 32 10 9Management of Project 35 3 For this problem you may use Excel, but not the Estimate or Random Variables add-ins. What is the expected (or mean) value of the project cost? 308 What is the standard deviation of the project cost? 16.94 Use the 60 th percentile for point estimates for each WP. What is the point estimate of the project cost? 318.89
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This note was uploaded on 05/13/2010 for the course ME 01953 taught by Professor Bard during the Spring '10 term at University of Texas at Austin.

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E4_project_risk_key - Event 4 Project Cost Estimation with...

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