Running head: INTERNATIONAL CAPTIAL INC.

MGMT 613 Assessing and Managing Project Risk

Activity 5.9 International Capital Inc. Case Study
September 12, 2015
Embry-Riddle Aeronautical University

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Activity 5.9 International Capital Inc. Case Study

This case study deals with International Capital, Inc. which is a small investment banking
firm that specializes in securing funds for small to medium sized firms. Beth Brown has been
assigned to a client as a project manager and she wishes to have a report developed that presents
a planned schedule and expected completion time in workdays. The questions and answers
associated with this case can be seen below.
1. Include a Project Network in your report

2. How does this project stack up with the average project?

The duration of the project is currently 73 days compared to the average of 70 days. In terms
of the 95% criteria please see the calculations below:
Z = (TS TE) / Sq. root of sum of variance along CP
Z = (70 73) / Sq. root 36 = -3 / 6 = -.5
From Table A7.2 in the text we see that P = .31 which does not meet the 95% chance criteria.

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3. What would the average have to be to ensure a 95% chance of completing the
project in 70 workdays?
In order to get to 70 days and also up the chance of increasing the percentage the
schedule will have to be compressed.
Z = (TS TE) / Sq. root of sum of variance
1.7 = (70 TE) / Sq. root of 33 = 60.31
Thus, compressing the schedule to 61 days will increase the chance of meeting the 95%
but it will also probably increase the risk level which will inherently reduce the chance of
meeting the 95%.
Z = (70 - 61) / 6 = +9 / 6 = +1.5
From Table A7.2 in the text we see that P = .93

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References
Larson, E. W. & Gray, C. F. (2014). Project management: The managerial process (6th ed.). New
York, NY: McGraw-Hill.