Project Management Recommendation
Project Management RecommendationAnthony CampbellOPS/571March 14, 2016Margarita Salas-AmaroProject Management RecommendationDear Mr. Gritsch, In accordance with your email request, the team was able to put together an analysis of all three projects, Juniper, Palomino, and Stargazer. The risk levels for each of them are as follows: Juniper is assessed as low, Palomino has medium risk, and Stargazer has the highest risk associated. However, it is recommended that the company moves forward with the Stargazer project. Per your instruction, the selected project should generate revenue within 12 months of next week’s PMO review, and that consideration should also be given to the degree of risk involved with one-time completion critical path requirement and cost, the life cycle and projected ROI. Stargazer was chosen primarily because of it feasibility, and high risk of completion. Results from the market studies show that customers are already interested in the product. Therefore, recommendations are with this project, as the company has already sunk $450,000 into the investment, and the ROI is high. The study focused on five areas to helped to determine which project would be best suited for the company. These areas included: ROI, length of the project, a break-even analysis, risk assessment, and overall value to the organization.
Here are the findings as they relate to each project:JuniperProject Cost: $325,000Critical Path: 6 monthsRIO is 77%, or $250,000 in two to three years. Break-even can be under three years providing ROI is reached within the second yearLength of time: LowRisk of completion on time: LowBenefit: Increased demand for the product.PalominoProject cost: $655,000Critical Path: 9 monthsROI is 69%, or $450,000 for a period of five years. Break-even would be in five years with a 5% margin of error. Length of the time: seven yearsRisk of completion on time: MediumBenefit: Introduction of a new product, while utilizing existing technology, product should be in constant demand.StargazerProject cost: $575,000 R&D cost: invested is $450,000 ROI: 278% or $1,600,000 for three yearsLength of time: 7 years with Break-even being about a year and a half Risk of completion on time: HighBenefit: Research and development of the product, position to be the market leader, project in progress.Project phasesThis project will be taken ono in 5 phases and each will be detailed below:Conception and initiation of the new product including research and development, which is contingent on approval from the CEO.Project, and planning definition will consist of defining the scope, and desired outcomes if they meet all constraints. It will also define a budget, set timelines, identify available resources and materials, and expertise needed to clarify roles and responsibilities, and identify road blocks to ensure on-time completion.Execution: The project comes to life and is discussions about the plans and tasks are divided and assigned to teams.Performance and control: Project manager takes control of the project. He or she will monitor performance and control, ensuring all team members are handling their tasks responsibly.Close of the project: Project will only be closed upon approval of the client to determine that the project has met all needs of the evaluation.Key DeliverablesIf the product is developed as specified in the plan, and the estimated budget is met, and the budget is met at the projected $575,000, then the project would have met all substantial product deliverables. The second point to this is if the Company can deliver the product within a 12-month period, then Piper Industries will have met the project schedule deliverables.