Nitrogen plant management wants to increase plant production. They decided to upgrade the plant by purchasing new high speed machine. They got two quotations from vendor. Management decided to use Internal Rate Return (IRR) and Net Present Value (NPV) to decide which option is worth to invest in? Management want to know the profitability of which investment is most attractive.
In the previous Blog a statistical analysis was conducted on the blog posting data in order to be validated measured whether the process was in- control or not. The outcome of the analysis proved that the data was valid. However, to further the investigation on this topic a statistical analysis will be conducted on the whole Takatuf- PMI- 2014 teams’ data. As illustrated in the previous blog this exercise is imported, as it provides a tool to measure the current status of the project and allows the team to monitor, control and improve the performance of the process for the rest duration of the project.
Hence, the topic of this blog will be analyzing statistically the process of blog posting for the Takatuf PMI team using SPC methods and explore manners of improvements.
1.Problem Definition
The point of total assumption (PTA) is a price determined by a fixed price plus incentive fee contract (FPIF) above which the seller bears all the loss of a cost overrun. It is also known as the “most pessimistic cost” because it represents the highest point beyond which costs are not expected to rise, given reasonable issues. It is considered as a risk trigger as beyond this Point, the seller’s profitability decreases, and their initiative and interest to complete the project may diminish too. So, we should know very well how to calculate this point to take all care not to approach it in the project course.
1. Problem Definition
In the blog 6 A project manager used flatten WBS to know the division of works in multi-level system in order to manage whole project. But he found this way would not let him evaluate the other things such as who will do the work, when the work can be done what is the cost of the work at the same time.
PMI-Oman 2014 