The structured way you think about project design

Assignment Help Operation Management

Reference no: EM132307423

Based on the structured way you think about project design in your company, you’ve been made the team lead of a project. If you execute it successfully, you’ll reap the rewards.

You’ve convened a team representing di?erent functional groups in your company and the team has come up with several design alternatives (named A-C), which you’ve describe to your manager.

You’re working hard one day when your manager rushes into your o?ce and say...:

Your manager: “OK, I just had a meeting with Marketing. They say that if we produce design A, we’ll have net pro?ts of $1M if we’re successful, but lose $0.5M if we aren’t. And there’s a 50% chance we’ll be successful. If we produce design B, we’ll have net pro?ts of $5M if we’re successful, but lose $1M if we aren’t. And there’s a 25% chance we’ll be successful on that design. With design C, we’ll have net pro?ts of $0.25M if we’re successful, and come out even (lose $0) if we aren’t. And there’s a 75% chance we’ll be successful on that last design. What do you think?”

You: “Well, there are a few ways we can look at this...”

Perform the following decision analyses:

(a) Which design would you choose using the maximin and maximax rules?

(b) Graph the Hurwicz rule versus α. Can you eliminate any choices? Which one would you choose for α = 0.1? Which one would you choose for α = 0.7?

Reference no: EM132307423

Questions Cloud

Project management methodology : Can you think of a sixth Process Group or eleventh Knowledge Area that your company would require of its project management methodology?

Change within the context of globalized environment : How can human resource managers, implement and manage organizational change within the context of a globalized environment?

Employer liable to third parties for the employee actions : Is the employer liable to third parties for the employee’s actions, and if so, what is an example where the employer would not be liable?

Who is starting up new business and needs money : You have a friend who is starting up a new business and needs money.

The structured way you think about project design : Based on the structured way you think about project design in your company, you’ve been made the team lead of a project.

The facility might benefit from hosting : Using a sport facility you are familiar with, develop a SWOT analysis of an event you feel the facility might benefit from hosting.

Mid and senior-level engineers working on project : The Acme engineering staff has a number of mid and senior-level engineers working on project-X,

Which factors will affect your advertising budget decision : Clearly explain your advertising objective. Which factors will affect your advertising budget decision? Why?

Enterprise operational risk monitoring process : Assessments of an enterprise’s operational risk monitoring process will provide the BEST information about its alignment with industry-leading practices?

User Account

All Pages