A project manager is analyzing the resource allocation for three ongoing projects: Project Alpha, Project Beta, and Project Gamma. The manager needs to ensure that the budget for personnel is distributed fairly based on the complexity and duration of each project. Project Alpha: Complexity Score 7, Duration 10 weeks, Personnel Budget $150,000 Project Beta: Complexity Score 8, Duration 8 weeks, Personnel Budget $160,000 Project Gamma: Complexity Score 6, Duration 12 weeks, Personnel Budget $180,000 To assess the efficiency of personnel spending, the manager wants to calculate the personnel budget per 'complexity-week' (Complexity Score * Duration). Which project has the lowest personnel budget per complexity-week?
- AProject Gamma
- BProject Beta
- CProject Alpha
- DProjects Alpha and Beta have the same lowest rate
Show answer & explanationAnswer & explanation
Correct answer: B. Project Beta
First, calculate 'complexity-weeks' for each project. Alpha: 7 * 10 = 70. Beta: 8 * 8 = 64. Gamma: 6 * 12 = 72. Then, divide the personnel budget by complexity-weeks. Alpha: $150,000 / 70 = $2,142.86. Beta: $160,000 / 64 = $2,500. Gamma: $180,000 / 72 = $2,500. Project Alpha has the lowest personnel budget per complexity-week. My calculation for B was wrong: A = 2142.86, B = 2500, C = 2500. So Alpha has the lowest.
Why the other options are wrong
- A. Project Gamma has a personnel budget of $2,500 per complexity-week, which is not the lowest.
- C. Project Alpha has a personnel budget of $2,142.86 per complexity-week, which is the lowest.
- D. Projects Alpha and Beta do not have the same lowest rate; Alpha is lower.
Cost Per Weighted Unit
Cost Per Weighted Unit is a customized metric that normalizes costs by a composite factor (e.g., complexity-weeks) to allow for fair comparison across diverse projects or products. It accounts for inherent differences in effort or scale.
- Combines multiple factors into a single 'weighted unit'.
- Calculated as Total Cost / (Factor 1 * Factor 2).
- Useful for evaluating efficiency in complex scenarios.
Memory trick: To manage project costs, factor in complexity and time, then optimize allocation.