Part 1:
Top management has accepted the schedule created at the end of Part. Prepare a brief memo that addresses the following questions:
1. How much will the project cost? What is the most expensive activity?
2. What does the cash flow statement tell you about how costs are distributed over the life span of the project?
Include a monthly cash flow for the project.
Once you are confident that you have the final schedule, save the file as a baseline.
Hint: Save a backup file just in case without baseline!
Part 2:
Part A
Today's date is July 8, 2015, the milestone date for the completion of the Prototype. You are charged with preparing a status report for top management. Table A2.8 summarizes progress on the Red Zuma project:
TABLE: Red Zuma Project Update
|
|
Task Name
|
Act. Start
|
Act. Finish
|
% Comp.
|
Phys. % Comp.
|
Act. Dur.
|
Rem. Dur.
|
|
1
|
1 Red Zuma
|
Fri 1/9/15
|
NA
|
46%
|
0%
|
125.85 days
|
146.4 days
|
|
2
|
1.1 Market Analysis
|
Fri 1/9/15
|
Thu 2/12/15
|
100%
|
0%
|
25 days
|
0 days
|
|
3
|
1.2 Product Design
|
Fri 2/13/15
|
Wed 4/1/15
|
100%
|
0%
|
35 days
|
0 days
|
|
4
|
1.3 Manufacturing Study
|
Fri 2/13/15
|
Fri 3/6/15
|
100%
|
0%
|
16 days
|
0 days
|
|
5
|
1.4 Product Design Selection
|
Thu 4/2/15
|
Fri 4/17/15
|
100%
|
0%
|
13 days
|
0 days
|
|
6
|
1.5 Detailed Marketing Plan
|
NA
|
NA
|
0%
|
0%
|
0 days
|
15 days
|
|
7
|
1.6 Manufacturing Process
|
NA
|
NA
|
0%
|
0%
|
0 days
|
30 days
|
|
8
|
1.7 Detailed Product Design
|
Mon 4/20/15
|
Wed 6/24/15
|
100%
|
0%
|
49 days
|
0 days
|
|
9
|
1.8 Build Prototypes
|
Wed 6/10/15
|
NA
|
39%
|
0%
|
9 days
|
14 days
|
|
10
|
1.9 Lab Test Prototypes
|
NA
|
NA
|
0%
|
0%
|
0 days
|
10 days
|
|
11
|
1.10 Field Test Prototypes
|
NA
|
NA
|
0%
|
0%
|
0 days
|
15 days
|
|
12
|
1.11 Finalized Product Design
|
NA
|
NA
|
0%
|
0%
|
0 days
|
20 days
|
|
13
|
1.12 Final Manufacturing Process
|
NA
|
NA
|
0%
|
0%
|
0 days
|
10 days
|
|
14
|
1.13 Order Components
|
NA
|
NA
|
0%
|
0%
|
0 days
|
7 days
|
|
15
|
1.14 Order Production Equipment
|
NA
|
NA
|
0%
|
0%
|
0 days
|
14 days
|
|
16
|
1.15 Install Production Equipment
|
NA
|
NA
|
0%
|
0%
|
0 days
|
35 days
|
|
17
|
1.16 Celebrate
|
NA
|
NA
|
0%
|
0%
|
0 days
|
1 days
|
Submit a professional status report to Robin Lane that addresses the following questions:
1. How is the project progressing in terms of cost and schedule?
2. What activities have gone well? What activities have not gone well?
3. How much of the project has been accomplished (PCIB)?
4. What is the forecasted cost at completion (EACf)?
5. What is the estimated completion date?
6. How is the project doing in terms of priorities (see Part 1)?
Report and interpret relevant Earned Value metrics in your report.
Include a Tracking Gantt chart as well as an Earned Value Table with your memo.
Part B
You have told Robin Lane that based on what you know now you need to revise the estimates for some of the remaining activities. Detailed Product Design is expected to take 3 days longer than planned. Build Prototypes is expected to take 2 days less than planned and Finalized Product Design is expected to take 3 days longer than planned. Final Manufacturing Process is expected to take 2 days less than planned, while Install Production Equipment is now expected to take only 30 days.
You also report that Detailed Marketing plan will be completed before the end of the New Year. She is insisting that the project be completed by January 17th in order to be ready for the Las Vegas show. She is willing to spend $50,000 from Management Reserves to expedite shipping if necessary. $25,000 would reduce the shipping of components by 5 days and/or $25,000 would reduce the shipping of manufacturing parts by 5 days (Hint: Adjust lag).
Prepare a memo to Robin that addresses the following questions:
1. What is the impact of the revised estimates for Finalized Product Design and Install Production Equipment on the project schedule and cost?
2. Would you recommend authorizing the expenditure of $50,000? Explain.
3. What, if any other recommendations, would you make so that the project can achieve Robin's deadline? Justify your recommendations.
Include a Tracking Gantt chart with variance schedule that depicts your final recommendations and revised schedule.
Hint: After adjusting the Installation of Production Equipment and Finalized Product Design, level outside of slack to eliminate any resource over allocation problems.