THE BATHTUB PERIOD

The award of the Scott contract on January 3, 1987, left Park Industries elated. The Scott Project, if managed correctly, offered tremendous opportunities for follow-on work over the next several years. Park's management considered the Scott Project as strategic in nature.

The Scott Project was a ten-month endeavor to develop a new product for Scott Corporation. Scott informed Park Industries that sole-source production contracts would follow, for at least five years, assuming that the initial R&D effort proved satisfactory. All follow-on contracts were to be negotiated on a year-to-year basis.

Jerry Dunlap was selected as project manager. Although he was young and eager, he understood the importance of the effort for future growth of the company. Dunlap was given some of the best employees to fill out his project office as part of Park's matrix organization. The Scott Project maintained a project office of seven full-time people, including Dunlap, throughout the duration of the project. In addition, eight people from the functional department were selected for representation as functional project team members, four full-time and four half-time.

Although the workload fluctuated, the manpower level for the project office and team members was constant for the duration of the project at 2,080 hours per month. The company assumed that each hour worked incurred a cost of $60.00 per person, fully burdened.

At the end of June, with four months remaining on the project, Scott Corporation informed Park Industries that, owing to a projected cash flow problem, follow-on work would not be awarded until the first week in March (1988). This posed a tremendous problem for Jerry Dunlap because he did not wish to break up the project office. If he permitted his key people to be assigned to other projects, there would be no guarantee that he could get them back at the beginning of the follow-on work. Good project office personnel are always in demand.

Jerry estimated that he needed $40,000 per month during the “bathtub” period to support and maintain his key people. Fortunately, the bathtub period fell over Christmas and New Year's, a time when the plant would be shut down for seventeen days. Between the vacation days that his key employees would be taking, and the small special projects that his people could be temporarily assigned to on other programs, Jerry revised his estimate to $125,000 for the entire bathtub period.

At the weekly team meeting, Jerry told the program team members that they would have to “tighten their belts” in order to establish a management reserve of $125,000. The project team understood the necessity for this action and began rescheduling and replanning until a management reserve of this size could be realized. Because the contract was firm-fixed-price, all schedules for administrative support (i.e., project office and project team members) were extended through February 28 on the supposition that this additional time was needed for final cost data accountability and program report documentation.

Jerry informed his boss, Frank Howard, the division head for project management, as to the problems with the bathtub period. Frank was the intermediary between Jerry and the general manager. Frank agreed with Jerry's approach to the problem and requested to be kept informed.

On September 15, Frank told Jerry that he wanted to “book” the management reserve of $125,000 as excess profit since it would influence his (Frank's) Christmas bonus. Frank and Jerry argued for a while, with Frank constantly saying, “Don't worry! You'll get your key people back. I'll see to that. But I want those uncommitted funds recorded as profit and the program closed out by November 1.”

Jerry was furious with Frank's lack of interest in maintaining the current organizational membership.

Case Study Questions:

Should Jerry go to the General Manager? Why or why not? Think back to what is expected of a project manager and the project charter.

Should the key people be supported on overhead? Why or why not?

If this were a cost-plus program, would you consider approaching the customer with your problem in hopes of relief? Why or why not?

If you were the customer of this cost-plus program, what would your response be for additional funds for the bathtub period, assuming cost overrun? Why or why not?

Would your previous answer change if the program had the money available as a result of being under budget? Why or why not?

How do you prevent this situation from recurring on all yearly follow-on contracts?

Ocean World is considering purchasing a water park in Charlotte, North Carolina, for $2,100,000. The new facility will generate annual net cash inflows of $535,000 for eight years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depreciation. Its owners want payback in less than five years and an ARR of 10% or more. Management uses a 12% hurdle rate on investments of this nature. Requirements Requirement 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment Requirement 2. Recommend whether the company should invest in this project

On the Miller Park Stadium project who had the ultimate responsibility to make sure that wind loads on the roof trusses were included in the engineered lift of the roof trusses. (From YouTube Video)

1. Engineered lift planning engineer
2. Sling and hardware design engineer
3. Project manager
4. Project owner
5. Project safety manager

6.) Concerning flammability limits in a confined space, a mixture that is above the UEL/UFL is considered to be too __________ to burn.

1. Rich
2. Lean
3. Diffuse
4. Concentrated
5. None of the above

7.) The displacement of the atmosphere in a permit space by a noncombustible gas (such as nitrogen) to such an extent that the resulting atmosphere is noncombustible is referred to as __________.

1. Isolation
2. Deletion
3. Engulfment
4. Inerting
5. Substitution

Hyde Park Elementary has plans to build a new playground in 2017. They received a $120,000 government grant to be used for building the playground. They are hoping to break ground in May 2017 and complete the project by the start of school in September. Before they can start the project, however, they must dismantle the existing playground that has become unsafe based on current safety standards. They are also planning to complete soil testing once the existing playground is dismantled as a number of residential properties in the community have tested positive for soil contamination. Due to recent news articles, parents are very concerned about the potential for soil contamination and are demanding a full test to ensure their kids are not playing on a contaminated playground.

Sonya Muhammed, the school principal, has compiled the following estimates related to the new playground:

The costs for installation, resurfacing, landscaping, and soil removal are the costs quoted by professional contractors. Sonya was approached by the president of the student council, Josh Schwinn, who has volunteered the council’s time for installing and landscaping the new playground. This will save the school approximately $25,000 in costs and Sonya has decided to accept this offer as two of the council members who will be helping are journeymen carpenters.

The school has two options in terms of dealing with the contaminated soil. The first option is to not partake in the soil testing and to simply resurface the play area with a poured-rubber matting that can cover the entire play surface. This will cost, as Sonya indicated in her estimates above, approximately $55,000 – a large chunk of the playground budget. The other option is to perform the soil testing. A municipal worker has estimated that there is a 40% chance that the soil is contaminated. If this is the case, the school will either need to resurface the area for $55,000 or it can have the contaminated soil removed and replaced for a hefty cost of $73,000 plus the cost of gravel. However, there is a 60% chance that the soil will not be contaminated. Sonya is wondering what they should do and has asked for your help.

REQUIRED

Prepare an analysis of the potential project costs for the following scenarios. Note: There is no need for gravel in the resurfacing scenario.

1. Resurface ground without doing soil testing .
   
2. Complete the soil testing. In this case there are two outcomes:

1. remove/replace the soil if contaminated.
2. resurface if contaminated.
   

Use the probabilities provided by the municipal worker to determine a weighted cost for each of these outcomes.

3. What option would you recommend for the school? Why? Are there other non-financial considerations that you need to include in your decision?

One day while walking in the park, you observe a squirrel munching on an acorn,
when suddenly a hawk comes and grabs and eats the squirrel. What is the squirrel in
this situation?
A. Predator
B. Primary consumer
C. Prey
D. Secondary consumer
E. Both B and C
F. Both A and D
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You have formulated a hypothesis: "Pineapples contain more vitamin C than
oranges." To test this hypothesis you measure vitamin C levels in 20 oranges and 20
pineapples from trees that were grown in the same orchard under the same
environmental conditions (temperature, rain, sunlight). Select all statements that are
true about this experiment.
a The independent variable is the type of fruit
b The dependent variable is the number of each fruit
c The dependent variable is the orchard
d The independent variable is the vitamin C levels
e The temperature is a controlled variable

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A man carries the mutation for colorblindness on his X chromosome. Who will he
pass this mutation on to?
a Half of his sons
b All of his daughters
c All of his sons
d Half of his daughters
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In the scientific method, a hypothesis ______ .
a. is a proposed explanation based on observations
b. should be broad and non-specific
c. is a question asked by the researcher
d. is a statement of scientific fact
e. is a summary of scientific results

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What is the sequence of the mRNA made from the gene TTAGCGGAACT?
a. UCAAGGCGAUU
b. AAUCGCCUUGA
c. AGUUCCGCUAA
d. UUAGCGGAACU
e. TTAGCGGAACT
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When two atoms have the same atomic number but different atomic masses, what
are they called?
a. radioactive
b. ions
c. elements
d. isotopes
e. electrons

4. Mrs Garcia, a physics enthusiast, goes to a water park in South Padre Island to test the concepts learned during class. She goes on a water slide that is 265 meters long and is built at an angle with the ground of θ = 30 degrees. – What is her final velocity at the end of the slide?

5. A goalkeeper kicks a soccer ball that is initially resting on the ground. She kicks the ball with an initial velocity of 8 m/s. The initial angle between the ground and the trajectory of the ball is θ=27 degrees. – How long is the ball in the air? – How far does the ball travel? – How high does the ball go? Hint: Use equations of motion and the definition of range and maximum height for projectile motion.

6. Solve the following quadratic equations: 2x 2 + 6x + 1 = 0 (1) 4x 2 + 12x + 2 = 0 (2) 9x 2 − 4x + 12 = 0 (3) (x − 1) x + 3 + 3 (x − 1) = (4 − x) (x − 1)(x − 1) (4) Hint: Factor and simplify using (x − 1).

Elaine was enjoying a pleasant day on the ski slopes at Winter Park. When she got on the lift to the top of Parsenn Bowl (12,000 ft), the weather was fine—windy, but sunny. During the 5- or 10-minute ride, the weather changed suddenly; it became a white-out, with icy surface snow, blowing snow, a very strong wind, and extremely low visibility. Many people fell as they got off the lift, including Elaine. However, she got up and joined her family members as they stood, wondering just how they were going to get down the mountain. Meanwhile, the lift closed due to the terrible conditions (50-mile-an-hour wind and a temperature of −20° F). As she adjusted her stance, Elaine somehow twisted and fell again, which resulted in external rotation of her right knee. There was no pain at the time and she thought she could get up and prepare to get down the mountain, but her knee was too unstable. While she sat on the icy surface, her husband notified the lift operator to call the Ski Patrol. In about 20 minutes they arrived and put her on a sled, which they skied down the slope; when they reached the Ski Patrol headquarters, they transferred the sled to a snowmobile and promptly got her down the mountain and into the emergency room.

What would happen to her body if the homeostatic mechanism failed?

What areas of the body would be the most vulnerable to frostbite?

What are the signs and symptoms of frostbite?

Give an example of a negative feedback mechanism that is describing her condition right now. Label all of the components and put what is occurring in her body at this time.

You may need to use the appropriate technology to answer this question.

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use α = 0.05.

Find the value of the test statistic for method of loading and unloading.

Find the p-value for method of loading and unloading. (Round your answer to three decimal places.)

p-value =

State your conclusion about method of loading and unloading.

Because the p-value > α = 0.05, method of loading and unloading is not significant.Because the p-value ≤ α = 0.05, method of loading and unloading is significant.     Because the p-value ≤ α = 0.05, method of loading and unloading is not significant.Because the p-value > α = 0.05, method of loading and unloading is significant.

Find the value of the test statistic for type of ride.

Find the p-value for type of ride. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of ride.

Because the p-value ≤ α = 0.05, type of ride is not significant.Because the p-value ≤ α = 0.05, type of ride is significant.     Because the p-value > α = 0.05, type of ride is not significant.Because the p-value > α = 0.05, type of ride is significant.

Find the value of the test statistic for interaction between method of loading and unloading and type of ride.

Find the p-value for interaction between method of loading and unloading and type of ride. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between method of loading and unloading and type of ride.

Because the p-value > α = 0.05, interaction between method of loading and unloading and type of ride is significant.Because the p-value > α = 0.05, interaction between method of loading and unloading and type of ride is not significant.     Because the p-value ≤ α = 0.05, interaction between method of loading and unloading and type of ride is significant.Because the p-value ≤ α = 0.05, interaction between method of loading and unloading and type of ride is not significant.

2. You may need to use the appropriate technology to answer this question.

The calculations for a factorial experiment involving four levels of factor A, three levels of factor B, and three replications resulted in the following data: SST = 282, SSA = 26, SSB = 22, SSAB = 179.Set up the ANOVA table. (Round your values for mean squares and F to two decimal places, and your p-values to three decimal places.)

Test for any significant main effects and any interaction effect. Use α = 0.05.

Find the value of the test statistic for factor A. (Round your answer to two decimal places.)

Find the p-value for factor A. (Round your answer to three decimal places.)

p-value =

State your conclusion about factor A.

Because the p-value ≤ α = 0.05, factor A is not significant.Because the p-value ≤ α = 0.05, factor A is significant.     Because the p-value > α = 0.05, factor A is not significant.Because the p-value > α = 0.05, factor A is significant.

Find the value of the test statistic for factor B. (Round your answer to two decimal places.)

Find the p-value for factor B. (Round your answer to three decimal places.)

p-value =

State your conclusion about factor B.

Because the p-value ≤ α = 0.05, factor B is significant.Because the p-value ≤ α = 0.05, factor B is not significant.     Because the p-value > α = 0.05, factor B is not significant.Because the p-value > α = 0.05, factor B is significant.

Find the value of the test statistic for the interaction between factors A and B. (Round your answer to two decimal places.)

Find the p-value for the interaction between factors A and B. (Round your answer to three decimal places.)

p-value =

State your conclusion about the interaction between factors A and B.

Because the p-value > α = 0.05, the interaction between factors A and B is not significant.Because the p-value ≤ α = 0.05, the interaction between factors A and B is not significant.     Because the p-value ≤ α = 0.05, the interaction between factors A and B is significant.Because the p-value > α = 0.05, the interaction between factors A and B is significant.

A company is using the breakeven chart to evaluate the decision of buying new machinery that will increase its fixed costs by $200,000 Below is the information of the company Variable cost per unit = $60 Total revenue = $1,360,000 Units sold = 8,500 units Total Cost = $710,000

a. Total fixed costs after increase of $200,000 is:

b. Total variable cost of the company:

c. New total costs after addition of $200,000

d. Breakeven point is equal to (after increase of fixed costs):

e. What is the margin of safety at an output level of 5,000 and the new TC after addition of $200,000? (Profit = Total revenue - Total costs)

f. If the company decided to lease a more advanced machine instead of buying the older one, the fixed cost will increase by $300,000 but the variable cost will decrease to be $40 per unit. Calculate the new break-even point (approximate)