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Woody 2000 Lifecycle Costing and High Level Estimations

a. Develop a high-level estimate by " guesstimate".

b. How should the estimate be presented?

c. Was there life-cycle costing a factor on this project?

d. Kim Cashman kept his cash flow chart a secret. Why did he do so, and what would you have done?


Solution Preview

A. Based on the information provided in the project and taking into account both Woody's and EID's estimations, a rough estimation can be made by taking into account the following factors:

1. Absolute maximum initially budgeted for all proposed work was $17 million
2. Kim Cashman budgeted a monthly $1 million for the first and last months of the project, with $1.4 million in the intervening months.
3. $1 million dollars was set aside for contingencies ( which did occur so we can assume it was spent)
4. The original target completion time was 18 months from initiation but the project was completed in 24 ...

Solution Summary

This solution is comprised of of an original detailed explanation of:

1. A high level estimation for the Woody 2000 project
2. An description of how the estimated for the Woody 2000 project should be presented
3. The life cycle costing factor for the Woody 2000 project
4. The rationale for why Kim Cashman kept the cash flow chart for the Woody 2000 project
5. Attachment for the Woody 2000 project overview