Friendly Assisted Living Facility Update

Running Head: FRIENDLY ASSISTED LIVING FACILITY –I 1
Friendly Assisted Living Facility -I
Institutional Affiliation
Date
FRIENDLY ASSISTED LIVING FACILITY –I 2
Question #1: Define the project deliverables.
The project deliverables include;
• 100 unit facility construction.

• Provision of positive investment returns and overall business contribution.
The effectiveness of the project will be measured by the following project outcomes;
• Increased utilization of present outpatient services.

• More services development based on preventive and wellness medicine.
• Increased inpatient census units.
Question #2: Define project constraints and assumptions.
Assumptions for the project include;
• St. Dismal’s profit subsidiary.

• Construction apartment freestanding designs.
• Facility construction aims at the provision of the easy access of the kitchen and outpatient
therapy area services in St. Dismal.
• 100 units out of which some are heavy assisted designs while most of them are light
assisted.
Project constraints include the following;
• Construction is set to begin after the November of 1999.

• Facility opening will be on July of 2000.
Question #5: Would a Project Charter have been useful here?
Section 3.1 contains item lists that can be useful when developing a charter. From the list, it
would be important to:
• Clarify the project's assumptions by taking consideration of factors such as the state of
economy and preferences of the patients.
• Project constraints faced by the center such as staff and funds.
• High-risk levels.
• Control phase milestones as well as the review progress for the status of the project.
• Key stakeholder identification as it would be with the case of regulatory agencies and the
local community.
• Project scope limitations.
Question #5: 1 Find the best alternative given the cost outcomes below. The probability of
rain is 0.3, clouds is 0.2, and sun is 0.5.
C & d present low expected cost
Question #5: 2. In Exericse 1, base your decision instead on the worst possible outcome for
each alternative. Now consider a decision based on the best possible outcome. When might
both of these give you the same decision?
Given that this is an analysis on cost, getting big numbers is not advisable. The alternatives that
give the worst combinations include; a(6), b(5), c(5), & d(5). With that analyzed, the correct
answer about cost can be given by; b, c & d while each alternative best options are: a(3), b(2), c
(3), & d(3). The best solution which has the lowest cost is therefore b. it should, however, be
noted that in the case when an option has high and low costs, its selection is done by the
application of both rules.
3. Do Exercises 1 and 2 Chapter 4 page 138.
1. (3pts) Your firm designs PowerPoint slides for computer training classes, and you have
just received a request to bid on a contract to produce the slides for an 8-session class.
From previous experience, you know that your firm follows an 85 percent learning rate.
For this contract it appears the effort will be substantial, running 50 hours for the first
session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed
$600 per session. The customer will pay you a flat fixed rate per session. If your nominal
profit margin is 20 percent, what will be the total bid price, the per session price, and at
what session will you break even?
From the table presented below, the preparation of slides, in a learning rate of 85%, in hours is
50, 42.5, 36.1 and 30.7 for the sections 1, 2, 4 and 8 consecutively. Therefore, the cost for each
session can be calculated which would also lead to the calculation of the total eight sessions.
A total cost of $34,479 is calculated to be eight sessions total cost from which a 20% profit
margin is added to give $41,375 bid price for the firm. After breaking down the cost, $5,172 is
the price for each session whereupon cumulative revenue comparison, the firms break even will
be attained in session three.
2. (3pts) If unit 1 requires 200 hours to produce and the labor records for an Air Force
project of 50 units indicates an average labor content of 63.1 hours per unit, what was the
learning rate?
Learning rate calculations:
First calculation will be for the total required labor hours for 50 units completion as follows: 50
(units) × 63.1 (average hours) ═ 3,155 hours.
The set up that follows is a spreadsheet as one in the example of Media One Consultations in the
below-shown chapter.
Finally, there is the application of the trial & error method, whereby the Learning Rate
alternative values are plugged in to get the first 50 units closest possibility to 3,155 hours. A
learning rate of 75% gives 3,155.2 hours cumulative time.
What total additional number of labor-hours would be required for a follow-on Air Force
Contract of 50 units? What would be the average labor content of this second contract? Of
both contracts combined?
By applying the spreadsheet results, 4,836 hours would be first 100 units’ total time. By taking
away the 3,155 hours used in the first 50 units, the second 50 would require 1,681 hours.
Therefore, the second contract’s labor content would thus be 33.62 hours (1,681÷50) which
would further translate to averagely 48.36 hours (4,836÷100) for the two combined contracts.
If labor costs the vendor $10/hour on this second contract and the price to the Air Force is
fixed at $550 each, what can you say about the profitability of the first and second
contracts, and hence the bidding process in general?
Given a $10/hour labor rate, they lose money for the first contract since it costs $631. For the
second contract, they make money because it costs $336.30. Averagely, each contract costing
can be taken to be $483.60 so when calculating for the profit for each it will result from to$550 –
484 = $66 which is translated to $6,600 total profit. The proposition here is to make an underbid
cost but make profits on the contracts of the follow-on. Lack of applying this strategy will lead to
the organization not getting the first contract and therefore there will be no opportunity for the
organization for learning curve movement.

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Running Head: FRIENDLY ASSISTED LIVING FACILITY –I 1

Friendly Assisted Living Facility -I

Question #1: Define the project deliverables.

The project deliverables include;

• 100 unit facility construction.

• Increased utilization of present outpatient services.

Question #2: Define project constraints and assumptions.

Assumptions for the project include;

• St. Dismal’s profit subsidiary.

Project constraints include the following;

• Construction is set to begin after the November of 1999.

Question #5: Would a Project Charter have been useful here?

C & d present low expected cost

3. Do Exercises 1 and 2 Chapter 4 page 138.

Learning rate calculations:

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