Question

The scenario is this. You have a budget for this web page project of $707k. The budget was decided when this project was conceived two years ago. Now as the time approaches to execute the project, a detailed budget analysis is done. It is discovered that the features associated with the project exceed the budget. Some features will have to be eliminated (scrubbed). The question is, which ones...to eliminate. Use the attached spreadsheet to decide. The cost associated with one unit of each feature is known and the value-added associated with one unit of each feature is also known. The objective is to gain the greatest aggregate value possible, given the budget limitation. To determine which features to scrub, follow the directions below the spreadsheet. 2 Feature Category Number Value Index Cost (1000s of $) Value Index Cost per Cumulative 3 of units per unit per unit per category category Cost 4 Service pages -- insurance, financing 10 20 5 5 Credit card checkout 1 200 12 6 Cart 1 150 10 7 Product pages 100 10 3 8 Webpage architecture/design 10 50 5 9 Summary product description 100 5 10 Competitive product comparison pages 30 5 11 Website architecture 1 1000 12 Product zoom 10 10 13 Detailed product description 100 1 2 14 Website search engine 1 60 8 15 Menu bar 1 60 3 16 Tool bar A 50 2 17 Tool bar B 30 8 18 25 4

Answer 1

Here, we have to eliminate cztegory with least value and high cost.

Feature category	Value index per category	Cost per category	Cumilative cost('000)
Service pages, insurance,financing	10*20=200	10*5=50	50
Credit card checkout	1*200=200	1*12=12	62
Cart	1*150=150	1*10=10	82
Product pages	100*10=300	100*3=30	112
Web architecture/design	10*50=500	10*5=50	162
Summary product description	500	100	260

Competitive product comparison pages	150	120	382
Website architecture	1000	25	407
Product zoom	100	40	447
Detailed product discription	100-1=99	200-2=198	647-2
Website search engine	60	8	655-2
Menubar	60	3	658-2
Toolbar A	50	2	700-2
Toolbar B	30	8	708-2=706.

Since the budget is 707k and the total cumilative cost of the project is 708k we have to eliminate category to the cost of 1k, [ ie, 708-707=1]

Here Detailed product description has least value of all items, so we eliminate / decrease the cost of detailed product description upto 1k.

Value =1 per unit

cost= 2k

So we can eliminate 1 unit of Detailed product description to reduce 2k cost to arrive within our budget.