This week we learned about work orders and contracts. We also covered management topics such as bidding, controlling projects, risk management, and understanding cost and schedule variance.For your initial post this week, read the following scenario below and reflect back on your learning to provide a response:Bob runs a flower delivery service. The service only has two employees: himself and one other person. Bob is considering buying a new delivery van that costs $45,000. The new van would keep flowers at precise temperatures, which will prevent wilting or flower shock during very cold days. Bob works out the risks of making this purchase. Some of those risks include incurring new car note payments, handling maintenance and repairs, and paying a new-car insurance premium. Also, the van would require a loan which could result in loss of the business if the loan is defaulted on. However, Bob is also considering other investments. Instead of buying a new delivery van, he could also use the money to hire two more staff members and purchase a new GPS software system that improves delivery accuracy and routes for quicker delivery.This leaves Bob with two risks:If Bob doesnt purchase the van, he might see the quality of his flowers diminish.If Bob doesnt hire new staff and purchase the GPS system, then deliveries may be made late because of lack of staff and poor GPS system.Evaluate both of Bobs options and select which risk is more urgent to mitigate. Justify your rationale.
