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A Project Manager wants to pick the most efficient vendor to test a new prototype. He has previous experience with 3 testing companies. Prototype testing is a highly variable activity as shown in the table below. (HINT: For example, Company X completes testing in 40 hours in 60% of cases while it takes 90 hours in the remaining 40% of tests).
Company Probability Hours Required Cost / Hour X 60% 40 $12 40% 90 Y 10% 10 $11 20% 20 30% 60 40% 100 Z 50% 25 $10 40% 90 10% 200 a. Which testing company should be picked if the Project Manager is primarily interested in completing the task in the shortest time?b. Which testing company should be picked if the Project Manager is primarily concerned with completing the task for the lowest cost?
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Expert response to - Project Management - In my role as project manager for my group called the the PROVISION Healthcare Technologies.
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