BUSS380 – Project Scheduling and Cost Management

Week 3 Case Study Template

Part I - Create a cost/benefit analysis based on Jane’s three options. From your cost/benefit
analysis, provide in detail the risks associated with each option. Select the option that’s best for
Jane.

Options First Payment Month 1 Month 2 Month 3 Month 4

Buy New $ 800.00 $ 312.50 $ 312.50 $ 312.50 $ 312.50
Phone
($2050)
Buy Less $ 400.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
Expensive
Phone ($400)
Keep Current $ 0 $0 $0 $0 $0
Phone ($0)

High monthly payments are a risk with a new expensive phone.

Financial ramifications are possible.
The risk of a less expensive phone has a negative financial impact.
There is a chance that the product will not work.
Current phone risk: Risk of continued tardiness and attendance

Part II - You are now Jane. You attempt the initial recommendation from Part 1. However,
circumstances have made it impossible for you implement this option. From the Cost Benefits
Analysis completed in Part 1, write an essay that provides the risks associated with each of the
two remaining options. Next, select one as your contingency and provide a detailed explanation
for your decision. Support your selection.

Solution
Taking into consideration all of the options, each one holds its own set of risks to ponder. In
reference to purchasing the new phone for $ 2,050, Jane will have to take on 5 considerably large
payments in order to fully benefit from this purchase.
Risk Analysis
It will be difficult to understand the full extent of risk associated with this purchase unless
you have all of the details. We can only assume that if Jane buys this phone, she will be able to
make the payments without jeopardizing her other obligations. If she is unable to support this
purchase, it is possible that her other responsibilities will suffer. She will have to decide which of
her current commitments will be ignored. Option number two, purchasing a less expensive phone
for $ 400.00, also carries risks. Of course, the initial cost has a financial impact that may also put
Jane behind schedule.
Although, the fact that there is no guarantee that the hardware will work properly with this new
phone introduces a new financial risk without the benefits of the initial goal. Furthermore, if she
purchases this and the product does not solve the initial problem of tardiness and attendance,
Jane's job may be jeopardized.

Finally, there is the option of Jane keeping her current phone; as with option two, it is likely that
Jane's job will suffer if she continues down the same path she is attempting to correct. Jane's pay
could be reduced as a result of disciplinary action, or, in the worst-case scenario, she could be
fired for failing to arrive on time. If she is unable to resolve this issue, her situation will
undoubtedly deteriorate.
After reviewing the cost/benefit analysis, Jane's only logical option based on the data provided is
to keep her current phone. While the issue is with Jane's punctuality and timing, there are other
options for Jane to consider before making a purchase that could have a negative financial
impact. Jane has other options she can pursue before spending money she may or may not have
readily available.
In my view, Jane should consider other options before making a decision that could have a
negative impact on her finances. She can set alarms to keep herself on track. In reality, Jane is
more familiar with weather patterns and her own driving habits than any app could ever be While
the expensive phone guarantees that anyone will arrive at any location on time, the final decision
maker of this "guarantee" is the person and their time management skills. They will never arrive
at their destinations on time if they do not have the ability or capability to simply leave their
home on time. Regardless of the hollow promises made by this product. This is a fantastic idea,
and it has merit; however, no machine or hardware, such as this, could ever make this guarantee
solely.

First of all and primarily, Jane's desire to be on time for work will have to be her own. She must
be motivated enough to recognize that enough is enough and that things must change. She will
not be able to achieve the desired result unless she takes this first (free) step. Time management
is a simple concept that many people struggle with. Being proactive is a critical component of
mastering punctuality. As previously stated, she is the most familiar with her vehicle and driving
techniques. Knowing your options and alternate routes can and will help you with this new
approach. She'll have to figure out how long it will take her to get to work. Jane must remember
to be generous with her time. She would have to figure out the travelling time, traffic conditions,
and how far she would have to walk from her car to her work area.