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Mgmt 340 Essay

440 words - 2 pages

Chapter 3 Problems/Exercise Questions 2 & 4

2. What are some sources of risk in a systems analysis and design project, and how does a project manager cope with risk during the stages of project management?

~”Risks might arise from the use of new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in regulatory actions due to the construction of a system, or team member inexperience with technology or the business area. A project manager should continually try to identify and assess project risk throughout each stage of a project.”
Hoffer, J. V. J. G. J. A. (2012). Essentials of ...view middle of the document...

If there isn’t one, then the initial phase is not as difficult. I would speak with the district or store management to see exactly what is to be included in the inventory, par levels, and how often inventory is ordered.

Chapter 4 Problems/Exercise Questions 1 & 6

1. The economic analysis carried out during project identification and selection is rather superficial. Why is this? Consequently, what factors do you think tend to be most important for a potential project to survive this first phase of the life cycle?

~Economic analysis in the identification phase is superficial because there is no way to determine all the cost needed to do the project without diving deeper into the project with constant ongoing evaluation of need. Factors that are important to the project survival is all parties to the project have to agree on the plan and direct of the project. The project plan has to have the who, what, where, when, and why showing the benefits, costs, risks, and resource requirements in order to understand the project.

6. Assuming monetary benefits of an information system at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a five-year time horizon, calculate the net present value of these costs and benefits of an information system. Also calculate the overall return on investment of the project and then present a break-even analysis. At what point does breakeven occur?

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