Assignment 4
Situation: Just like in the team project, you are the
project manager for a home construction company. Another tropical storm is on
the way. You are familiar with the possible costs and risks if the storm hits
and causes a two week delay since you experienced the storm that hit your San
Leo home while it was under construction. You are currently building another
San Leo home, and it is essentially in the same condition as the previous home
was on July 1. You have two choices: accept the risk that the storm will not
hit, or accelerate the construction to get the roof and shingles on before the
storm is scheduled to make landfall. If the storm hits while the roof is under
construction but not finished, you will have to reconstruct half of what was
completed for a cost of $12,000. The weather channel predicts a 60 percent
chance of the storm making landfall close enough to your location to cause this
damage. If you accelerate construction, it will cost you $8,000
Assignment: Update your risk register with the new
information. Develop a decision tree with two alternatives:
(1) accept the risk and continue construction, or (2)
accelerate construction to avoid the risk. You have two states of nature, the
storm causes damage 60% probability and the storm does not cause damage. Use
expected monetary value analysis for these two decisions and select the
preferred alternative (PMBOK® Guide, p. 339).
Also, summarize how you can apply the processes used by
project managers to incorporate the core value of responsible stewardship into
project monitoring and controlling. Prepare a 500-word minimum response on how
you would document your analysis and recommendation in a memorandum to your
supervisor. Your response to responsible stewardship should be about 20% of
your response. Also include at least three credible references in addition to
the PMBOK® Guide with at least one of these being a peer-reviewed journal
article. Properly cite your response. While working on this assignment, refer
to the Assignment Rubric for guidance.
Submit this assignment to the Dropbox as a Word document no
later than Sunday 11:59 PM EST/EDT. (This Dropbox basket is linked to
Turnitin.) When you save your document, please make sure it includes this
format:
“Lastname_Firstname-Assignment_4.”
