Applying the Learning Curve Theory to a Project & Establishing a Project Time-Line plus costs involved Time and cost estimates are important to project management for the following reasons: Estimates are key inputs to project planning and control. Estimates support good decisions. Estimates are used to determine project duration and cost. Estimates are used to develop time-phased budgets and establish the project baseline. Without estimates, you have inaccuracies, which result in time and cost under/overruns. Most project tasks are unique and require the project manager to estimate duration/cost for each and every task separately; however, projects may also have repetitive tasks completed by the human resources assigned to the project. To estimate the labor hours/cost for these tasks the project manager may use an estimating technique that relies on learning curve theory to estimate the time and/or cost for completing repetitive tasks. In this assignment, you will: Task #1. Define and thoroughly discuss the Learning Curve Theory and how it applies to project management. Task #2. Explain how you would apply the principles of the Learning Curve Theory to a real project in which you are familiar (as a project manager, team member, or one that you have read about in current events). Task #3. Complete the following exercise on learning curves (see Page 2 of this assignment). Instructions for completing the assignment: Search out scholarly resources related to the subject of this assignment;You may also use your textbook as a resource. In MS Word, compose a paper of 300-400 words (approximately 1 page) that addresses Task #1 and Task #2. Insert your response to the Exercise on learning curves (Task #3) and include all supporting calculations. Using the concept of Learning Curves for Estimating (Chapter 8, Pinto) consider the following scenario and respond to each question (all work should be shown in your Word document): Suppose that you are the assigning costs to a major project to be undertaken this year by your firm, University Applications. One particular coding process involves many labor-hours, but highly redundant work. You anticipate a total of 200,000 labor-hours to complete the first iteration of the coding and a learning curve rate of 70%. You are attempting to estimate the cost of the twentieth iteration of this coding sequence. Based on this information and a $60 per hour labor rate, what would you expect to budget as A. The cost of the twentieth iteration? B. The cost of the fortieth iteration? EXERCISE 2 - Plan for delivery schedule & cost of a Business entity: For a company engaged in design and delivery of a nursing home in Maryland, the following tasks (Not in a proper order), with corresponding duration and cost for each task are envisaged for the plan. Please fill the following table by listing all the necessary tasks involved in proper sequence, showing start & finish of each task and associated costs on a Gantt Chart, then find the total project proposed value/price to client by including 12% for the overhead, and 15% for profits: Locate and survey the land 3 weeks $15,000 Approvals 1 week ------ Select Contractors 2 week $3000 Design details and develop business plan 14 weeks $48,000 Grading of the land, Water & Sewer lines 3 weeks $25,000 Install Security System 1 week $12,000 Build Frame structure & walls 5 weeks $65,000 Install Windows & Doors 2 weeks $20,000 Install Air-conditioning System 2 weeks $25,000 Build Foundations 3 weeks $30,000 Install Electrical lines, Plumbing 2 weeks $18,000 Flooring 1 week $15,000 Carpeting & Clean up 1 week $12,000 Painting 1 week $14,000