Project Management Recommendation
Dear Mr. Gritsch:
In continuation of your email dated February 10, 2014, I have completed analysis of three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project.
Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high.
My feasibility study focused on Return on Investment (ROI), length of project, risk level and overall benefit to Piper Industries. See below for the results.
Juniper:
Return on Investment (ROI): 77% or $250,000 for a period of 2 to 3 years
Length of project: Uncertain
Risk of completion on time: Low
Overall benefit: Enhancement of current product, increased product demand
Palomino:
Return on Investment (ROI): 69% or $450,000 for a period of 5 years
Length of project: 7 Years
Risk of completion on time: Medium
Overall benefit: New product, use of existing technology, custom part, constant demand
Stargazer:
Return on Investment (ROI): 278% or $1,600,000 for a period of 3 years
Length of project: 7 Years
Risk of completion on time: High
Overall benefit: Research & Development of a new product, market leader, project in-progress
Five Phases of a Project:
A project can have any number of phases depending on how you break it down. A project for land reclamation in dump site would probably have three phases such as:
1. Facility Decommissioning Phase
2. Waste removal phase
3. Landscaping Phase.
While a project involving the building of a new factory may contain four phases such as:
1. Environmental Impact Assessment Phase
2. Design Phase
3. Construction
In continuation of your email dated February 10, 2014, I have completed analysis of three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project.
Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high.
My feasibility study focused on Return on Investment (ROI), length of project, risk level and overall benefit to Piper Industries. See below for the results.
Juniper:
Return on Investment (ROI): 77% or $250,000 for a period of 2 to 3 years
Length of project: Uncertain
Risk of completion on time: Low
Overall benefit: Enhancement of current product, increased product demand
Palomino:
Return on Investment (ROI): 69% or $450,000 for a period of 5 years
Length of project: 7 Years
Risk of completion on time: Medium
Overall benefit: New product, use of existing technology, custom part, constant demand
Stargazer:
Return on Investment (ROI): 278% or $1,600,000 for a period of 3 years
Length of project: 7 Years
Risk of completion on time: High
Overall benefit: Research & Development of a new product, market leader, project in-progress
Five Phases of a Project:
A project can have any number of phases depending on how you break it down. A project for land reclamation in dump site would probably have three phases such as:
1. Facility Decommissioning Phase
2. Waste removal phase
3. Landscaping Phase.
While a project involving the building of a new factory may contain four phases such as:
1. Environmental Impact Assessment Phase
2. Design Phase
3. Construction