A Project Manager Ascertained That Five Different Resources Are Needed

question 59

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? $$\begin{array} { | l | l | } \text { Resource } & \\ \text { Number } & \text { Daily Rate } \\\hline 1 & \$ 1,000 \\\hline 2 & \$ 1,200 \\\hline 3 & \$ 500 \\\hline 4 & \$ 750 \\\hline 5 & \$ 800 \\\hline\end{array}$$ $$\begin{array} { | l | l | l | l | } \hline \text { Activity } & \text { Length } & \text { Activity } & \text { Length } \\\hline \mathbb { H } & 3 & \text { S } & 3 \\\hline \mathbb { M } & 9 & \text { T } & 1 \\\hline \mathbb { P } & 6 & \text { W } & 4 \\\hline \mathrm { B } & 7 & T & 4 \\\hline \mathbb { R } & 9 & \mathrm { G } & 4 \\\hline \mathrm { F } & 5 & \mathrm {~K} & 10 \\\hline\end{array}$$

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Definitions:

Term Deposit

A deposit at a financial institution that has a fixed term and typically offers a higher interest rate than a regular savings account.

Simple Interest

A method of calculating interest where the charge is based on the original principal amount alone, without compounding.

Interest

Interest is the cost of borrowing money, typically expressed as a percentage of the principal amount.

Rate Of Interest

The percentage of principal charged by the lender for the use of its money.