Essay About Project Management Emaildear Mr. Gritsch And Project Proposals

Project Management Recommendation-Email Response
Project Management RecommendationClinton DouglasOPS/571March 21, 2016Rich WilliamsProject Management RecommendationRE: Project Management EmailDear Mr. Gritsch:My team has analyzed all three of the project proposals being considered in next week’s PMO Review as required by Mr. Deirelen.  Based on our analysis, we recommend that Piper Industries Corp. invest in and implement the Palomino project.Recommendation ReasoningIdeally, we would have preferred to use the net present value approach to compare the three projects since it is the most accurate valuation method regarding capital budget problems (Pinkasovitch, 2016).  However, given the information we had at hand, we could calculate the payback period of each project.  This method seemed to make the most sense due to Piper Industries’ requirement of project completion and revenue generation within a 12 month time frame.  The payback periods for each project all saw break-even points that fell into the second year of the investment, but at slightly differing points (within a 2.5 month span) during that year.In light of this, our team decided to consider additional factors for the recommendation.  The risk level of missing the project completion time, product life cycles, and total ROI for the projects were these factors.  Although the Juniper project was very likely to meet its completion deadline, its product life cycle was the shortest at three years and it carried the lowest ROI.  The Stargazer project did look quite promising, but our team felt it was too great of a risk for Piper Industries to take on at this time and would be better suited as a longer term project.  This is due to the high likelihood that the project won’t be ready to take to market within 12 months, as well as seeing increased costs from the derivative product(s).  We believe the Palomino project is the best fit in this situation due to having an acceptable break-even point, a favorable and consistent 5 year ROI, a longer product life cycle, and an additional three month buffer to ensure meeting the 12 month timeframe.Project Phases In order to complete the Palomino project and start generating revenue within Piper Industries specified timeframe, it must have a detailed plan set in place.  The following are the five phases defined by Esposito (2015) that should be the road map to accomplishing this project.Project Initiation – This phase is where the project is defined at a broad level and determined if it is a feasible under-taking.  It is also where the necessary stakeholders will help decide if the project receives a “green light” to proceed.  If so, a project charter outlining its purpose and requirements should be written.Project Planning – This is crucial to successful project management.  It develops the “roadmap” for everyone involved in the project to follow through the setting of goals.  Two types of goal setting are commonly used in this phase; SMART and/or CLEAR.  Also, the project’s scope is defined during this phase, as well as the roles and responsibilities.  Some of the documents created during this phase include a scope statement, work breakdown schedule, milestones, a Gantt chart, a communication plan, and a risk management plan.Project Execution – In this phase, deliverables are developed and completed.  A majority of the tasks are completed during this time and include items like team development, resource assignment, setting up tracking systems, status meetings, and plan modifications as needed.Project Performance/Monitoring – This phase is where the project’s progression is measured while ensuring that everything aligns with the project management plan.  Here, key performance indicators (KPIs) are used to monitor if the project is on track to meet its goals.Project Closure – This is the phase where the project is completed and closed out.  A project manager should hold a meeting to evaluate what went well and where there were any project failures during this phase.  Additionally, they should perform a final budget and prepare a final project report.  Key DeliverablesDuring the project execution phase, key deliverables are developed which are basically derived from the projects goals.  These deliverables are items produced as part of a project and can either be tangible, or intangible.  They also typically satisfy a milestone or due date that come from the project plan.