Project
The ARC Company specializes in developing_ and selling a wide range of high-quality scooters. Sales representatives report that there is a growing demand for racing scooters. ARC's president. Robin Lane. is excited about the possibilities and predicts that one day these kinds of razor scooters will be featured in X-Game events. ARC is a small company and uses a strong matrix to optimally utilize limited manpower.
The Project Priority Matrix for the Red Zuma Project is:
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Time
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Scope
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Cost
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Constrain
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X
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Enhance
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X
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Accept
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X
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Part 1
Abu are a member of a project team assigned to develop the new razor scooter code named "Red Zuma." Table 1 contains the information necessary to create a project schedule. For the purpose of this case assume the following:
I. The project be6ns January 2. 2015.
2. The following holidays are observed: January 1, Martin Luther King Day (third Monday in January). Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September). Thanksgiving Day (4th Thursday in November). December 25.
3. If a holiday falls on a Saturday. Then Friday will he given as an extra day off, and if it falls on a Sunday. Then Monday will be given as a day off. If December 25th falls on a Friday then Monday will not he given a day off.
4. The project team works eight-hour days. Monday through Friday.
TABLE 1: Red Zuma: 'Project Schedule.
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ID
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Task Name
|
Duration
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Predecessors
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|
1
|
1 Red Zuma Project
|
260 days
|
|
| 2 |
1,1 Market Analysis |
25 days |
|
|
3
|
1.2 Product Design
|
30 days
|
2
|
|
4
|
1.3 Manufacturing Study
|
20 days
|
2
|
|
5
|
1.4 Product Design Selection
|
10 days
|
3,4
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|
6
|
1.5 Detailed Marketing Plan
|
15 days
|
5
|
|
7
|
1.6 Manufacturing Process
|
30 days
|
5
|
|
8
|
1,7 Detailed Product Design
|
45 days
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5
|
|
9
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1,8 guild Prototypes
|
25 days
|
8
|
|
10
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1.9 Lab Test Prototypes
|
10 days
|
9
|
|
11
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1.10 Field Test Prototypes
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15 days
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9
|
|
12
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1,11 Finalized Product Design
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20 days
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7,10,11
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|
13
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1.12 Final Manufacturing Process
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10 days
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12
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14
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1.13 Order Components
|
7 days
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12
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15
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1.14 Order Production Equipment
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14 days
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13
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16
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1.15 Install Production Equipment
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35 days
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14FS+20 days,15FS+30 days
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17
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1.16 Celebrate
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1 days
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6, 16
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Note: ES refers to a Finish-to-Start lag.
Construct a network schedule for this project and prepare a memo that answers the following questions:
1. When is the project estimated to be completed? How long will the project take?
2. What is the critical path for the project?
3. Which activity has the greatest amount of slack?
4. How sensitive is this network?
5. Identify two sensible milestones and explain your choices.
Include the following printouts:
A Gantt chart.
A network diagram highlighting the critical path.
A schedule table reporting ES, LS, EF, LF, and slack for each activity.
Part 2
The following personnel have been assigned full-time to the Red Zuma project team:
4 marketing specialists 4 design engineers
4 development engineers 4 industrial engineers
4 test riders
2 purchasing agent
Use the file from Part 1 and the information contained in Tables 2 and 3 to assign resources to the project schedule.
TABLE 2: Red Zuma Project Resources
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Task Name
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Resource Names
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|
Red Zuma Project
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|
|
Market Analysis
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Marketing Specialist 1400%1
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Product Design
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Marketing Specialist Design Engineer [400%), Development Engineer 19))0%1, Industrial Engineer, Purchasing Agent
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Manufacturing Study
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Industrial Engineer [400%], Development Engineer [200%]
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Product Design Selection
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Marketing Specialist [1200%], Design Engineer [300%], Development Engineer WAJ, Industrial Engineer [200%], Purchasing Agent [25%]
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Detailed Marketing Plan
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Marketing Specialist [400%]
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Manufacturing Process
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Design Engineer, Development Engineer 1200%1, Industrial Engineer 1300%]
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Detailed Product Design
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Marketing Specialist [200%], Design Engineer [400%], Development Engineer 12101/41, Industrial Engineer [200%], Purchasing Agent [25%]
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Build Prototypes
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Design Engineer [200%], Development Engineer [200%], Industrial Engineer [400%]
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Lab Test Prototypes
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Design Engineer [200%], Development Engineer [200%], Test Rider
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Field Tests
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Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider [300%]
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Finalized Product Design
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Marketing Specialist [200%], Design Engineer [300%], Development Engineer [300%], Industrial Engineer [200%], Purchasing Agent [25%]
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Final Manufacturing Process
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Industrial Engineer 1300%), Design Engineer, Purchasing Agent [25%]
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Order Components
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Purchasing Agent
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Order Production Equipment
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Purchasing Agent
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Install Production Equipment
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Design Engineer, Development Engineer 1300%), Industrial Engineer [400%]
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Celebration
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Design Engineer [400%], Development Engineer [400%], Industrial Engineer [400%], Marketing Specialist [400%], Purchasing Agent [200%]
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Part A
Prepare a memo that addresses the following questions;
1. Which if any of the resources are over allocated?
2 Assume that the projects are time constrained and try to resolve any over allocation problems by leveling within slack. What happens?
3. What is the impact of leveling within slack on the sensitivity of the network?
Include a Gantt chart with the schedule table after leveling within slack.
4. Assume that the project resource constrained ad no additional personnel are available. How long, Will the project take give the resource assigned?
5. How does the new duration compare with the estimated completion date generated from Part ? What does this tell you about the impact resources can have on a schedule?
Part B
Top management is not happy with the resource-constrained schedule. Robin Lane, the president, has promised retailers that ARC Will begin production in time for the major trade show in Las Vegas on January 22, 11)16, which minis the project needs to be completed by January 17, 2016. She has authorized working the first available Saturday of each month to help the project get completed sooner. She realizes that this will only reduce the project duration by 12 13 days.
After talking to the engineers, everyone agrees t hat they do not have to wait for the Detailed Product Design to be 100% completed before starting to build the prototype. The consensus is that Building the Prototype can start .10 days after the start of the Detailed Product Design. Likewise the Final Manufacturing Process can start 15 days after the start of Finalized Product design.
Dewey Martin, director of product development, is also willing to add personnel to the project, He is willing to make available at least one more Development. Design, and/or Industrial Engineer to the project as well as Marketing Specialist. Since there is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the deadline. Your objective is to develop a schedule which will satisfy the deadline with minimum additional resource usage.
Prepare a memo that addresses the following questions:
1. What was the impact of introducing Start-to-Start lags to the schedule and budget?
2. Which, if any additional personnel assignments, would you choose to complete the project before the January I 7th deadline? Fxpl tin your choices as well as the reasons Ibr not choosing other options.
3. How have these changes affected the sensitivity of the network and the critical path?
Include a Gantt chant with a schedule table displaying free and total lack for the new schedule.
Note: Do not assign new personnel to specific tasks, simply add them to the Resource Sheet. All new personnel are available kill time (100").
At first glance -this appears to be. Very complicated, difficult assignment, but it you enter the information correctly, the computer is able to generate the answers with a levy simple clicks.
Part 3
Top management has accepted the schedule created at the end of Part 2. Prepare a brief memo that addresses the 1011owing questions:
1. How much will the project cost? What is the most expensive 'activity?
2. What does the cash how statement tells you about how costs are distributed over the life span of the project?
Include a monthly cash flow liar 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 4
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:
Submit a professional status report to Robin Lane that addresses the fo11owing 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 (PCI13)?
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.
TABLE 3: Red Zuma Project Update
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Task Name
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Act. Start
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Act. Finish
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Comp.
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Phys. %
Comp.
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Act. Our.
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Rem. Dur.
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1
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1 Red Zuma
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Fri 1/9/15
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NA
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46%
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0%
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125.85 days
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146.4 days
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2
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1.1 Market Analysis
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Fri 1/9/15
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Thu 2/12/15
|
100%
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0%
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25 days
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0 days
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3
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1.2 Product Design
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Fri 2/13/15
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Wed 4/1/15
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100%
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0%
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35 days
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0 days
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4
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1.3 Manufacturing Study
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Fri 2/13/15
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Fri 3/6/15
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100%
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0%
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16 days
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0 days
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5
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1.4 Product Design Selection
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Thu 4/2/15
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Fri 4/17/15
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100%
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0%
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13 days
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0 days
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6
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1.5 Detailed Marketing Plan
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NA
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NA
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0%
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0%
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0 days
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15 days
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|
7
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1.6 Manufacturing Process
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NA
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NA
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0%
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0%
|
0 days
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30 days
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|
8
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1.7 Detailed Product Design
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Mon 4/20/15
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Wed 6/24/15
|
100%
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0%
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49 days
|
0 days
|
|
9
|
1.8 Build Prototypes
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Wed 6/10/15
|
NA
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39%
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0%
|
9 days
|
14 days
|
|
10
|
1.9 Lab Test Prototypes
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NA
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NA
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0%
|
0%
|
0 days
|
10 days
|
|
11
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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 |
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 in-sisting 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 Prod¬uct Design, level outside of slack to eliminate any resource over allocation problems.