PRTI is a software development company that operates from Jayuya: it’s considered a 3PL company. The primary business’ focus is on the development of ERP systems for PYMES. The company has a thorough knowledge of all aspects of the software development project, as shown below.
|
Activity |
Immediate Predecessor |
Normal Time (weeks) |
Crash Time (weeks) |
Normal Cost |
Crash Cost |
|
Scope (S) |
None |
3 |
2 |
$2,000 |
$5,000 |
|
Analysis/Software Requirements (ASR) |
S |
9 |
7 |
$14,000 |
$36,000 |
|
Design (DE) |
S |
5 |
3 |
$7,500 |
$15,000 |
|
Development (DP) |
ASR & DE |
5 |
4 |
$7,000 |
$10,000 |
|
Testing (T) |
DP |
3 |
1 |
$5,000 |
$9,000 |
|
Training (TR) |
T |
8 |
5 |
$6,000 |
$12,000 |
|
Documentation (D) |
T |
6 |
3 |
$9,000 |
$12,000 |
|
Pilot (P) |
D, TR |
8 |
5 |
$7,000 |
$10,000 |
|
Deployment (DM) |
P |
10 |
— |
$12,000 |
— |
|
Post Implementation Review (PIR) |
DM |
6 |
4 |
$3,000 |
The indirect costs for the project are determined on a weekly [duration] basis. The first 30 weeks have indirect costs of $3,000/week, and all subsequent weeks $1,750/week.
- a) What should be the minimum price for a standard software development project?
- b) ExaminePRTI’sdecisiontoproposeapotentialclientaservice(i.e.,asoftware development project) for $290,000, completed in 44 weeks.
- c) Based on the following information, what is the probability that a standard software development project could be completed between 54 and 44 weeks?
|
Activity |
Immediate Predecessor |
Normal Time (weeks) |
||
|
Optim. |
Most Likely |
Pessim. |
||
|
Scope (S) |
None |
2 |
3 |
4 |
|
Analysis/Software Requirements (ASR) |
S |
6 |
9 |
12 |
|
Design (DE) |
S |
3 |
5 |
6 |
|
Development (DP) |
ASR & DE |
5 |
5 |
5 |
|
Testing (T) |
DP |
2 |
3 |
4 |
|
Training (TR) |
T |
7 |
8 |
12 |
|
Documentation (D) |
T & TR |
4 |
6 |
8 |
|
Pilot (P) |
D |
6 |
8 |
11 |
|
Deployment (DM) |
P |
7 |
10 |
12 |
|
Post Implementation Review (PIR) |
DM |
3 |
6 |
10 |
