Tutorial 8: Cost Benefit Analysis

Cost Benefit Analysis estimates and totals up the equivalent money value of the benefits and costs to the community of the projects to establish whether they are worthwhile. All benefits and costs of a project should be measured in terms of their equivalent money value. By reducing the positive and negative impacts of a project to their equivalent money value Cost Benefits Analysis determines whether on balance the project is worthwhile.
Generally, for a project to be successful, the ROI of the project should be more than 0.5. My group's ROI for this project on the kinetic bicycle is 0.65 thus it would be profitable and safe.

I've learnt the importance of cost benefit analysis as it helps to determine on the justification and feasibility of the project and it also involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much.

               

 

Tutorial 7: Cost Table for Project

Above is the picture of the cost table for our project on the kinetic powered bicycle. My team has made use of the cost table for cost tabulation. Through this table, we manage to come out the selling price of the kinetic powered bicycle.
I learnt that it is important to do a cost evaluation in every project to ensure that the amount spent is within the budget. Overspending the budget would cause severe consequences as the company might not have enough funds to cover the costs. From this cost table, we are able to decide and plan how much to sell our product in order to make profits. Thus, I feel that this table is very important in managing and tracking our costs.

Tutorial 6: Risk Management

Updated WBS

For this week tutorial, we learnt about risk management and used it on our project. The picture above shows the possible risks that can happen in our project and the level of impact which can affect the project if the risks were to happen.
I feel that it is important to carry out risk management in a project as it helps the team estimate the extra time and delay needed to encounter the problems. Thus, we will be able to plan ahead and set aside additional time to finalise the completion of our project.