The ARC Company specializes in developing and selling a wide range of high-quality scooters. Sales representatives...

 
 
 
 
 
 

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The ARC Company specializes in developing and selling a wide range of high-quality scooters. Sales representatives report that there is a growing demand for racing scooters. ARC's president, Robin Lane, is excited about the possibilities and predicts that one day these kinds of razor scooters will be featured in X-Game events. ARC is a small company and uses a strong matrix to optimally utilize limited manpower. Page 644 The Project Priority Matrix for the Red Zuma Project is: Time Scope Cost Constrain Enhance X Ассеpt X Part 1 You are a member of a project team assigned to develop the new razor scooter code named "Red Zuma." Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following: TABLE A2.5 Red Zuma: Project Schedule ID Task Name Duration Predecessors 1 1 Red Zuma Project 260 days 2 1.1 Market Analysis 25 days 3 1.2 Product Design 30 days 2 4 1.3 Manufacturing Study 20 days 5 1.4 Product Design Selection 10 days 3, 4 6 1.5 Detailed Marketing Plan 15 days 7 1.6 Manufacturing Process 30 days 5 8 1.7 Detailed Product Design 45 days 5 9 1.8 Build Prototypes 25 days 8 1.9 Lab Test Prototypes 10 days 10 11 1.10 Field Test Prototypes 15 days 9 1.11 Finalized Product Design 20 days 7,10,11 12 13 1.12 Final Manufacturing Process 10 days 12 14 1.13 Order Components 7 days 12 15 1.14 Order Production Equipment 14 days 13 16 1.15 Install Production Equipment 35 days 14FS+20 days,15FS+30 days 17 1.16 Celebrate 1 days 6, 16 LO Note: FS refers to a Finish-to-Start lag. 1. The project begins January 2, 2015. 2. The following holidays are observed: January 1, Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November), December 25. 3. If a holiday falls on a Saturday, then Friday will be given as an extra day off, and if it falls on a Sunday, then Monday will be given as a day off. If December 25th falls on a Friday then Monday will not be given a day off. 4. The project team works eight-hour days, Monday through Friday. Part 2 The following personnel have been assigned full-time to the Red Zuma project team: 4 marketing specialists 4 design engineers 4 development engineers 4 industrial engineers 4 test riders 2 purchasing agents Use the file from Part 1 and the information contained in Tables A2.6 and L A2.7 to assign resources to the project schedule. TABLE A2.6 Red Zuma Project Resources Number available Marketing specialist $80,000/yr 4. Design engineer $125,000/yr 4 Development engineer $110,000/yr 4 Industrial engineer $100,000/yr 4. Purchasing agent $75,000/yr 2 Test rider $70/hr 4 TABLE A2.7 Red Zuma Resource Assignments Task Name Resource Names Red Zuma Project Market Analysis Marketing Specialist [400%] Marketing Specialist, Design Engineer [400%), Product Design Development Engineer [200%], Industrial Engineer, Purchasing Agent Industrial Engineer [400%], Development Engineer Manufacturing Study [200%] Marketing Specialist [200%], Design Engineer [300%), Product Design Selection Development Engineer [200%), Industrial Engineer [200%], Purchasing Agent [25%] Detailed Marketing Plan Marketing Specialist [400%] Design Engineer, Development Engineer [200%], Industrial Engineer [300%] Manufacturing Process Marketing Specialist [200%], Design Engineer [400%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%] Detailed Product Design Design Engineer [200%], Development Engineer [200%], Industrial Engineer [400%] Build Prototypes Design Engineer [200%], Development Engineer [200%], Lab Test Prototypes Test Rider Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider Field Tests [300%] Marketing Specialist [200%], Design Engineer [300%], Development Engineer [300%), Industrial Engineer [200%], Purchasing Agent [25%] Finalized Product Design Industrial Engineer [300%], Design Engineer, Final Manufacturing Process Purchasing Agent [25%] Order Components Purchasing Agent Order Production Equipment Purchasing Agent Design Engineer, Development Engineer [300%], Industrial Engineer [400%] Install Production Equipment Design Engineer [400%], Development Engineer [400%], Celebration Industrial Engineer [400%], Marketing Specialist [400%], Purchasing Agent [200%] Part 3 Top management has accepted the schedule created at the end of Part 2. Prepare a brief memo that addresses the following questions: Page 648 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 cash flow for the project. Once you are confident that you have the final schedule, save the file as a baseline. Hint: Save a backup file just in case without baseline! The ARC Company specializes in developing and selling a wide range of high-quality scooters. Sales representatives report that there is a growing demand for racing scooters. ARC's president, Robin Lane, is excited about the possibilities and predicts that one day these kinds of razor scooters will be featured in X-Game events. ARC is a small company and uses a strong matrix to optimally utilize limited manpower. Page 644 The Project Priority Matrix for the Red Zuma Project is: Time Scope Cost Constrain Enhance X Ассеpt X Part 1 You are a member of a project team assigned to develop the new razor scooter code named "Red Zuma." Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following: TABLE A2.5 Red Zuma: Project Schedule ID Task Name Duration Predecessors 1 1 Red Zuma Project 260 days 2 1.1 Market Analysis 25 days 3 1.2 Product Design 30 days 2 4 1.3 Manufacturing Study 20 days 5 1.4 Product Design Selection 10 days 3, 4 6 1.5 Detailed Marketing Plan 15 days 7 1.6 Manufacturing Process 30 days 5 8 1.7 Detailed Product Design 45 days 5 9 1.8 Build Prototypes 25 days 8 1.9 Lab Test Prototypes 10 days 10 11 1.10 Field Test Prototypes 15 days 9 1.11 Finalized Product Design 20 days 7,10,11 12 13 1.12 Final Manufacturing Process 10 days 12 14 1.13 Order Components 7 days 12 15 1.14 Order Production Equipment 14 days 13 16 1.15 Install Production Equipment 35 days 14FS+20 days,15FS+30 days 17 1.16 Celebrate 1 days 6, 16 LO Note: FS refers to a Finish-to-Start lag. 1. The project begins January 2, 2015. 2. The following holidays are observed: January 1, Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November), December 25. 3. If a holiday falls on a Saturday, then Friday will be given as an extra day off, and if it falls on a Sunday, then Monday will be given as a day off. If December 25th falls on a Friday then Monday will not be given a day off. 4. The project team works eight-hour days, Monday through Friday. Part 2 The following personnel have been assigned full-time to the Red Zuma project team: 4 marketing specialists 4 design engineers 4 development engineers 4 industrial engineers 4 test riders 2 purchasing agents Use the file from Part 1 and the information contained in Tables A2.6 and L A2.7 to assign resources to the project schedule. TABLE A2.6 Red Zuma Project Resources Number available Marketing specialist $80,000/yr 4. Design engineer $125,000/yr 4 Development engineer $110,000/yr 4 Industrial engineer $100,000/yr 4. Purchasing agent $75,000/yr 2 Test rider $70/hr 4 TABLE A2.7 Red Zuma Resource Assignments Task Name Resource Names Red Zuma Project Market Analysis Marketing Specialist [400%] Marketing Specialist, Design Engineer [400%), Product Design Development Engineer [200%], Industrial Engineer, Purchasing Agent Industrial Engineer [400%], Development Engineer Manufacturing Study [200%] Marketing Specialist [200%], Design Engineer [300%), Product Design Selection Development Engineer [200%), Industrial Engineer [200%], Purchasing Agent [25%] Detailed Marketing Plan Marketing Specialist [400%] Design Engineer, Development Engineer [200%], Industrial Engineer [300%] Manufacturing Process Marketing Specialist [200%], Design Engineer [400%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%] Detailed Product Design Design Engineer [200%], Development Engineer [200%], Industrial Engineer [400%] Build Prototypes Design Engineer [200%], Development Engineer [200%], Lab Test Prototypes Test Rider Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider Field Tests [300%] Marketing Specialist [200%], Design Engineer [300%], Development Engineer [300%), Industrial Engineer [200%], Purchasing Agent [25%] Finalized Product Design Industrial Engineer [300%], Design Engineer, Final Manufacturing Process Purchasing Agent [25%] Order Components Purchasing Agent Order Production Equipment Purchasing Agent Design Engineer, Development Engineer [300%], Industrial Engineer [400%] Install Production Equipment Design Engineer [400%], Development Engineer [400%], Celebration Industrial Engineer [400%], Marketing Specialist [400%], Purchasing Agent [200%] Part 3 Top management has accepted the schedule created at the end of Part 2. Prepare a brief memo that addresses the following questions: Page 648 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 cash flow for the project. Once you are confident that you have the final schedule, save the file as a baseline. Hint: Save a backup file just in case without baseline!

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