Cost Estimates for World Satellite Telephone Exchange Project

Cost Estimates for the World Satellite Telephone Exchange Project Student’s Name Institutional Affiliation Cost Estimates for the World Satellite Telephone Exchange Project Conducting an effective cost analysis and pricing strategy for a project can be vital in ensuring that the project reaches its set objectives within the outlined time frame. Superficially, both cost analysis and pricing strategies play a role in establishing the viability and suitability of a project, supporting strategic decision-making, and ensuring competitive pricing and market positioning, especially in a dynamic operational setting. To a more specific extent, the calculations can be critical in outlining what the stakeholders could foster in key project factors like research and development, costs of materials, as well as labor. This analysis focuses on the case of the Norwegian Satellite Development Company (NSDC) is contracted to produce eight satellites for Alaska Telecom, Inc. At its completion, the project should help to steer global portable telephone connectivity. Assessing the costs and pricing strategies in this project should help NSDC to make decisions on research and development, material costs, and labor while also considering the changes in the curve to affect the listed variables. Project Variables The NSDC project estimates are wide-ranging and must consider the changes in the operational setting. Principally, the focus is on strategizing for labor, materials, and R&D. However, those estimates are within the anticipated improvement curve of 80%, which led to a profit goal of 25% of the total cost. However, the project is subject to dynamism. That is, mid-way through the project, NSDC realizes that an improvement curve of 75% will be more suitable for the project. Additionally, NSDC has had contact from Deutsch Telefon AG which has shown interest in acquiring 4 additional and identical satellites. The changes both in the number of satellites required as well as the adjustment of the improvement curve from 80% to 75% are poised to affect the key variables of the project like labor, R&D, and material costs. Hence, new and more befitting calculations are needed for all the variables. Labor Hour Est...