CIS 311 - Project Management Make or Buy Analysis A5 (54 points = 5%) This assignment will give you experience analyzing pertinent data from a possibly meaningless and entirely overwritten scenario narrative and then performing the simple mathematical steps required for a basic MakeorBuy (BuyorLease; BuyorBuild) Analysis. What you need to do: I Watch video lecture L18 I Read / reread the MakeorBuy section of Chapter 5 (pages 208211) I Using the concepts introduced in the text and video lecture, provide a BuildorBuy recommendation based on the following scenario: 0 Your company has suffered a serverfarm meltdown, and the person responsible for the backups hasnt returned from a trip he took to Tahiti early last year. All your companys data will need to be reentered by hand and all hardware will be replaced and updated. You, the Project Manager, have to decide whether you should perform this monumental task inhouse (Build), or outsource it to Lukes Sensitive Data and Recovery, located in Portland, Oregon (Buy). The costs for this project will be substantial, so a careful analysis is required. Estimates for each option are as follows: (20) BUILD - Create the equation to build using the following information: I Hardware Costs: nine (9) new computers will be needed for this project, since all the available computers your company currently owns need to be updated. Each new computer will cost $1,855.00. You will also need to purchase the Extended Warranty at a price of $450.00 per machine. I Service Costs: Your current Computer Maintenance Services Company will cover the new machines at 1/3 their normal rate of $165 per machine per day for the first year, at which time the machines will be useless, completely obsolete, and given away as Door Prizes at the semiannual company Arbor Day party. The perday charge is nonnegotiable, applied every day of the week (whether the machines are in use or not), and each years charges must be paid for up front, in cash. I Labor Costs: Since your company CEO has a really bad habit of hiring unqualified and inexpensive staff, you will need to staff your new computers with Software Engineers (SE) and Computer Programmers (CP). Each of the three (3) SEs assigned to your project make $88 per hour (8 hour day), and each of the four (4) CPs make $67 per hour (8 hour day). Since this project is so important, and since all your SEs and CPs have threatened to quit because they want a raise, management has also agreed to pay Key Assignment Bonuses to the seven (7) employees to get them onboard. Each SE will be paid a $10,100 cash bonus, and each CP will be paid a $7,800 cash bonus. SEs and CPs are both assigned to work on this project 7 days per week (8 hour day), with no additional overtime or benefit costs incurred. I Training will be provided for all new employees. Two trainers will be brought in, each charging $50 per hour. The training will be for 2 weeks; 10 8hr days total. The trainers will be paid in full before training begins.

This text was automatically generated from the attachment. Please refer to the attachment to view this question.

This question was created from A5-Make or Buy Analysi