Overview
You only have to do (PART 4A and 4B)
BACKGROUND
For the past few years, the Nebsi Company has been struggling with the rise in popularity of specialized drinks, which have been eroding and taking market share away from their cola products. The chief executive officer has instructed the company to develop its own sparkling drink to compete with these specialized drinks. Nebsi first introduced the sparkling apple cider drink to enter the market. The drink was successful afteradvertising its antioxidants benefits. Due to fierce competition, the company is looking for alterative drinks. The company has conducted market research and focus groups, which have identified three potential high-margin drinks: sparkling apple-grape, sparkling apple-cranberry, and sparkling pear cider. All ofthese choices were deemed to be a great source of antioxidants.After considering various factors, the company has decided to produce the apple-cranberry drink, which has a number of health benefits among them its high level of antioxidants with its relatively high ability to eliminate harmful free radicals. The market potential for the apple-cranberry drink appears to be very attractive and is expected to have a higher gross margin than the apple cider drink. Additionally, the product mix appears to be attractive by consumers in Europe and Asia Pacific.
PRIORITY MATRIX
Time | Scope | Cost | |
Constrain | X | ||
Enhance | X | ||
Accept | X |
WORK BREAKDOWN STRUCTURE
Dave Albert, the program manager at organization, has put together a project team. The members of the team came up with the following WBS:
1.0 Sparkling Project
1.1 R&D Product Development
1.1.1 Need Survey
1.1.2. Set Product Specs
1.1.3. Shelf-Life Report
1.1.4. Nutrition Report
1.2. Secure Fruit Suppliers
1.3. Initial Production
1.3.1. Equipment Rehab
1.3.2 Production Trials
1.3.3. Quality Trials
1.3.4. Quality Metrics
1.3.5. Quality Training
1.4. Distribution
1.4.1. Market Testing
1.4.2. Package Design
1.4.3. Select Distributors
1.5. Legal
1.5.1. Complete FDA Certification
1.5.2. Register Trademark
1.6. Prepare Product Launch
PART 1
1. Develop the WBS outline using MS Project
2. Use the WBS and the information provided below to create a project schedule.
3. The following holidays are observed:
a. Martin Luther King Day: 3rd Monday in January
b. Memorial Day: Last Monday in May
c. July 4th: 4th of July
d. Labor Day: First Monday in September
e. Thanksgiving Day: 4th Thursday in November
f. Christmas: December 25 and 26
4. If a holiday falls on a Saturday then Friday will be given an extra day off, and if it falls on a Sunday then Monday will be given off.
5. The project team works eight-hour days, Monday through Friday.
6. The project will begin on January 3, 2012
7. Based on this schedule, submit a memo that answers the following questions:
a. When is the project estimated to be completed? How many working days will it take?
b. What is on the critical path?
c. Which activity has the most slack?
d. How sensitive is this network?
e. Identify two sensible milestones and explain your choices.
f. Include the following (one-page) printouts:
i. A Gantt Chart. Include the Entry Table and the Gantt Chart.
ii. A Network diagram highlighting the critical path
iii. A schedule table reporting ES, LS, EF, LF, and slack for each activity
iv. Hint: Change the timescale to months and weeks. The estimated duration of the project is 135 days.
8. Save a copy of the Project Plan as “Part 1.1”. The file will be part of the submission package.
The following information has been derived from the WBS. Note that the activity number is what appears in the MS Software with the complete WBS entered.
# | Activity | Duration | Predecessor(s) |
3 | Need survey | 20 | None |
4 | Set product specs | 15 | 3 |
5 | Shelf life report | 10 | 4 |
6 | Nutrition report | 5 | 4 |
7 | Select fruit suppliers | 20 | 5,6 |
9 | Equipment rehab | 30 | 4 |
10 | Production trials | 15 | 7,9 |
11 | Quality trials | 20 | 10 |
12 | Quality metrics | 5 | 11 |
13 | Quality training | 15 | 12 |
15 | Market testing | 30 | 5,6 |
16 | Package design | 15 | 15 |
17 | Select distributors | 25 | 5,6 |
19 | Complete FDA certification | 15 | 7,15 |
20 | Register trademark | 5 | 7,15 |
21 | Prepare product launch | 15 | 13,16,17, 19FS + 25 days, 20FS + 15 days |
FS = Finish to Start Lag
PART 2
Using your files from Part 1, input resources and their costs based on the tables below. All activities should be treated as “Fixed Duration”.
Table 1 - Resource Assignments
Activity | Resources |
Need survey | MRKT (500%) |
Set product specs | R&D (400%), MRKT (200%) |
Shelf-life report | R&D (300%) |
Nutrition report | R&D (300%) |
Select fruit suppliers | PURCH (100%) |
Equipment rehab | ENG (1,000%), PROD (2,000%) |
Production trials | PROD (1,500%), PURCH (100%), ENG (1,000%) |
Quality trials | QUAL (300%), PROD (500%) |
Quality metrics | QUAL (300%), PROD (100%) |
Quality training | QUAL (300%), PROD (1,500%) |
Market testing | MRKT (500%) |
Package design | DESIGN (300%), MRKT (100%) |
Select distributors | MRKT (500%) |
Complete FDA certification | LEGAL (300%) |
Register trademark | LEGAL (300%) |
Prepare product launch | QUAL (300%), PURCH (200%), PROD (1,500%), MRKT (500%), ENG (500%), R&D (100%) |
Resource | Abbrev | Available | Hourly Rate |
Marketing Staff | MRKT | 5 | $80 /hr. |
R&D | R&D | 5 | $80 /hr. |
Engineering | ENG | 10 | $100 /hr. |
Purchasing | PURCH | 2 | $60 /hr. |
Quality Engineers | QUAL | 3 | $80 /hr. |
Designers | DESIGN | 3 | $60 /hr. |
Legal Staff | LEGAL | 3 | $120 /hr. |
Production | PROD | 20 | $60 /hr. |
Prepare a memo that addresses the following questions:
1. Which if any of the resources are overallocated?
2. Assume that the project is time constrained and try to resolve any overallocation problems be leveling within slack. What happens?
3. What is the impact of leveling within slack on the sensitivity of the network?
Save the file as Part 2A. Include a Gantt chart with the schedule table after leveling within slack.
4. Assume the project is resource constrained and resolve any overallocation problems by leveling outside of slack. What happens?
Save the file as Part 2B. Include a Gantt chart with the schedule table after leveling outside of slack.
Note: No splitting of activities is allowed.
Note: No partial assignments (e.g. 50%). All resources must be assigned 100%.
PART 3
Top management has accepted the July 19th completion schedule created at the end of Part 2. 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 cost flow (Chart & Table format) for the project.
IMPORTANT: Once you are confident that you have a final schedule, save the file as a baseline.
Hint: Save backup file just in case without baseline.
Part 4A
Assume that today is March 31, 2012, and Table below contains the tracking information for the project up till now. Enter this information into your saved baseline file and prepare a status report for the first three months of the Sparkling project.
Activity | Actual Start | Actual Finish | Actual Duration | Remaining Duration |
Need survey | 1/3/12 | 2/2/12 | 22 | 0 |
Set product specs | 2/3/12 | 2/28/12 | 18 | 0 |
Shelf life report | 2/29/12 | 3/1312 | 10 | 0 |
Nutrition report | 3/14/12 | 3/19/12 | 4 | 0 |
Equipment rehab | 2/29/12 | 23 | 12 |
Your status report should also address the following questions:
1. How is the project progressing in terms of cost and schedule? Do not just report numbers but report what they mean as well.
2. What activities have gone well? What activities have not gone well?
3. What do the PCIB and PCIC indicate in terms of how much of the project has been accomplished to date?
4. What is the forecasted cost at completion (EACf)? What is the predicted VACf?
5. Report and interpret the TCPI for the project at this point in time. What does TCPI depend on? Also, what factors would you adjust to complete the project at the initial planned budget?
6. What is the estimated date of completion?
7. How well is the project doing in terms of priorities?
Try to present the above information in a form worthy of consideration by top management.
Include an Earned Value table (PV, EV, AC, BAC, EAC, SV, CV, and CPI for each activity and the whole project) and a Tracking Gantt Chart.
Note: Insert March 31, 2012 as the status date in the Project Information Box.
Part 4B
Assume today is May 31, 2012, and Table below contains the tracking information for the project up till now. Enter this information into your saved baseline file and prepare a status report for the Sparkling project.
Activity | Actual Start | Actual Finish | Actual Duration | Remaining Duration |
Need survey | 1/3/12 | 2/2/12 | 22 | 0 |
Set product specs | 2/3/12 | 2/28/12 | 18 | 0 |
Shelf life report | 2/29/12 | 3/13/12 | 10 | 0 |
Nutrition report | 3/14/12 | 3/19/12 | 4 | 0 |
Select fruit suppliers | 4/3/12 | 4/30/12 | 20 | 0 |
Equipment rehab | 2/29/12 | 4/11/12 | 31 | 0 |
Production trials | 4/17/12 | 5/4/12 | 14 | 0 |
Quality trials | 5/7/12 | 5/31/12 | 18 | 0 |
Market testing | 4/4/12 | 5/9/12 | 26 | 0 |
Package design | 5/10/12 | 5/25/12 | 12 | 0 |
Select distributors | 5/28/12 | 4 | 18 | |
Complete FDA certification | 5/11/12 | 5/31/12 | 14 | 0 |
Your report should address 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. What do the PCIB and PCIC indicate in terms of how much of the project has been accomplished to date?
4. What is the forecasted cost at completion (EACf)? What is the predicted VACf?
5. Report and interpret the TCPI for the project at this point in time.
6. What is the estimated date of completion?
7. How well is the project doing in terms of priorities?
Try to present the above information in a form worthy of consideration by top management.
Include an Earned Value table and a Tracking Gantt Chart.
Note: Insert May 31, 2012, as the status date in the Project Information box.