Project Management Memo
Memo
To: Ray Gritsch
From: Frederick Paige
CC: Piper Industries Corporation
Date: Feb 1, 2015
Re: Ray Gritsch
Our Project Management Team has assessed the three projects that Piper Industries Corporation has proposed. Our project management team has made the following recommendations based on the available facts and projects given.
Project Keys:
Key 1: Project to be completed no later than 12 months
Key 2: Project must meet budget restrictions
Key 3: Project must generate acceptable revenue
Deliverables:
Time
Budget
Resources
Margin of error
Revenue
Proposed Project:
Project Juniper is a current enhancement of a widget that Piper Industries is expanding on. The risk completion is low and the critical path is estimated at 6 months with a cost of $325,000 to bring the product to market. ROI for this project is $250,000 for a period of 2 to 3 years with the third year forecasted to be the end of life due to advances in projected technology. Customer demand for this product is believed to be high.
Project Palomino is a new line widget using existing technology with a medium risk for completion. Scheduled production will be approximately 9 months with a cost of $665,000 initially. The forecasted ROI is $450,000 for a 5-year period with a 5% margin of error for an existing customer. The project is forecasted to be a 7-year project.
This project has been started by Research & Development with $450,00 already spent and estimated completion cost of $575,000. The risk of completing this project on time is high with the ROI of $300,000 the first year and $550,000 the second. The third year is expected to bring $750,000 with a product life of 7 years. Advantages of delivering this widget will move our company as a leader in the industry. There are some uncertainties and concerns about this widget with customers that the sales and marketing team have discussed.
Recommendation:
The Project Management Team has decided to go forth with project Palomino. The
To: Ray Gritsch
From: Frederick Paige
CC: Piper Industries Corporation
Date: Feb 1, 2015
Re: Ray Gritsch
Our Project Management Team has assessed the three projects that Piper Industries Corporation has proposed. Our project management team has made the following recommendations based on the available facts and projects given.
Project Keys:
Key 1: Project to be completed no later than 12 months
Key 2: Project must meet budget restrictions
Key 3: Project must generate acceptable revenue
Deliverables:
Time
Budget
Resources
Margin of error
Revenue
Proposed Project:
Project Juniper is a current enhancement of a widget that Piper Industries is expanding on. The risk completion is low and the critical path is estimated at 6 months with a cost of $325,000 to bring the product to market. ROI for this project is $250,000 for a period of 2 to 3 years with the third year forecasted to be the end of life due to advances in projected technology. Customer demand for this product is believed to be high.
Project Palomino is a new line widget using existing technology with a medium risk for completion. Scheduled production will be approximately 9 months with a cost of $665,000 initially. The forecasted ROI is $450,000 for a 5-year period with a 5% margin of error for an existing customer. The project is forecasted to be a 7-year project.
This project has been started by Research & Development with $450,00 already spent and estimated completion cost of $575,000. The risk of completing this project on time is high with the ROI of $300,000 the first year and $550,000 the second. The third year is expected to bring $750,000 with a product life of 7 years. Advantages of delivering this widget will move our company as a leader in the industry. There are some uncertainties and concerns about this widget with customers that the sales and marketing team have discussed.
Recommendation:
The Project Management Team has decided to go forth with project Palomino. The