A Project Manager Ascertained That Five Different Resources Are Needed

question 68

Essay

A project manager ascertained that five different resources are needed to complete a project that has been estimated to last 37 days.Just to be on the safe side,the project manager told the client that the project would definitely be delivered in 40 days and 40 nights and arranged to rent the resources for that period of time.The project manager goes to the local rental center at the start of day 1 of the project,signs a 40-day lease agreement for all five resources,and brings them to the site to begin the project.Analyze the Gantt chart and resource list (activity durations are in parenthesis)and determine how much money is being wasted with this rental plan.If each resource could be rented for just the time it takes to complete each activity,what would the charge to the project be?
$$\begin{array} { | l | l | } \hline \text { Resource } & \\ \text { Nurnber } & \text { Daily Rate } \\\hline 1 & \$ 1,000 \\\hline 2 & \$ 1,200 \\\hline 3 & \$ 500 \\\hline 4 & \$ 750 \\\hline 5 & \$ 800 \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | } \hline \text { Activity } & \text { Length } & \text { Activity } & \text { Length } \\\hline \mathrm { H } & 3 & \mathrm {S } & 3 \\\hline \mathrm { M } & 9 & \mathrm {~J} & 1 \\\hline \mathrm { P } & 6 & \mathrm {~W} & 4 \\\hline \mathrm {B } & 7 &\mathrm { T }& 4 \\\hline \mathrm { R } & 9 & \mathrm { G } & 4 \\\hline \mathrm { F } & 5 &\mathrm {K } & 10 \\\hline\end{array}$$

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Definitions:

Voidable

A term describing a contract that may be affirmed or rejected at the option of one of the parties.

Policy

The contract of insurance.

Life Insurance Policy

A contract between an insurer and a policyholder that pays a designated beneficiary a sum of money upon the death of the insured person.

Beneficiaries

Individuals or entities designated to receive benefits or assets from a will, trust, insurance policy, or other legal agreement.