Chapter 1

6. The advantages that are lost if the sum of the weights in a weighted scoring approach
does not add up to 1.0 is the ability to see the contribution that each of the criteria makes
on the project. Since it is normalized to 1, if a criterion receives a 0.3, then you can see
that it contributes to 30% of the score of the project that is being considered. It is
suggested that factors with less than 2 or 3 percent impact not be considered in this
approach because the impact of the criteria on the final score is insignificant compared to
the other criteria.
8. It is important for a project to have flexibility because there are always some events
that cannot be predicted that will greatly impact and delay the project. For example, the
project manager cannot predict that a rain storm will come and prevent the construction
of a building for a week during the planning stages of a project.
13. In figure 1-11, the distribution of large and small circles and squares across the four
boxes that would characterize a strong, well-positioned product development business
would be distribution of circles and squares across all the four boxes that are related to
the overall goal of the company. A weak and poorly positioned product development
business would have most of their circles and squares in the Derivative projects section
and the projects will be poorly linked to the overall goal of the company.
21. Set factory at location C.
Locati
on
Category
Labor Cost
Labor
Productivity
Labor Supply
Union
relations
Material
Supply
Transport

Weigh
t
A
20
1

B
2

C
3

20
10

2
2

3
1

1
3

10

10
25

2
1

1
2

1
3

Cost
Infrastructure 5
Total
100

2
165

2
210

2
790

22.
a) If the weight of for transportation cost went down to 10 and the weight for union
relations went up to 25, I would suggest to set up the factory at location C.
Locati
on
Category
Labor Cost
Labor
Productivity
Labor Supply
Union
relations
Material
Supply
Transport Cost
Infrastructure
Total

Weigh
t
20

A
1

B
2

C
3

20
10

2
2

3
1

1
3

25

10
10
5
100

2
1
2
195

1
2
2
225

1
3
2
295

b) If the weights remained the same as the given weights and location A received a score
of 3 for transport cost and location C received a score of 2 for transport cost, my
recommendation would change to location A.
Locati
on
Category
Labor Cost
Labor
Productivity
Labor Supply
Union
relations
Material
Supply
Transport Cost
Infrastructure
Total

Weigh
t
20

A
1

B
2

C
3

20
10

2
2

3
1

1
3

10

10
25
5
100

2
3
2
215

1
2
2
210

1
2
2
200

c) If the weights remained the same as given in the problem and the additional weight of
15 for tax considerations and the scores for each location were added, this would affect
my recommendation in two ways. The first way in which this would affect my
recommendation is that the sum of the weights will no longer be 100. This makes it
harder to see how each criterion affects the project selection. The second way that this
would affect my recommendation is that now location B and C have the same values. I
would now have to go back and reconsider the importance of each category in order to
select one of the two locations.
Locati
on
Category
Labor Cost
Labor
Productivity
Labor Supply
Union
relations
Material
Supply
Transport Cost
Infrastructure
Tax
Considerations
Total

Weigh
t
20

A
1

B
2

C
3

20
10

2
2

3
1

1
3

10

10
25
5

2
1
2

1
2
2

1
3
2

15
115

3
210

2
240

1
240