APPENDIX TWO Computer Project Exercises In developing the exercises, trade-offs had to be made to enrich the learning experi ence. One of the major problems students initially encounter is data and detail over- load. This reduces their ability to identify project and data problems and to compare alternatives. Although the project found in the exercises is real, it has been reduced and detail has been eliminated many times to concentrate on applying project management principles and understanding linkages. In addition, other simplifying assumptions have been made so that students and instructors can trace problems and discuss outcomes. These assumptions detract from reality, but they keep the focus on the objectives of the exercises and reduce student frustration with software intricacies. Moving from these exercises to real projects is primarily one of increas ing detail The POM+ Project Big Kola Company has been concerned that specialized fruit drinks have been crod- ing their cola market. The CEO mandates that if you can't heat them, join them." Grape juice was the first product that was successful after an advertising blitz claim ing the antitoxin benefits. Lately, competition is compressing grape juice margins and profits. Months of additional market surveys and focus groups have resulted in three potential high-margin drinks: cranberry, blueberry and pomegranate. All these choices represent antitoxins. The decision is to produce the pomegranate drink that has many health claims. For example, the relative ability of these juices to eliminate harmful free radicals (antitoxins) is 71 percent for pomegranate 33 percent for blue berry, and 20 percent for cranberry (Technion Institute of Technology). The market potential appears very attractive and should have a higher profit margin than the other potential juice products. Another appeal for pomegranate juice is its familiarity in the Middle East and Asia. The Priority Matrix for the POM+ Project is Time Scope Cost Constrain Enhance Accept Om Gay. Erk Larsen, Piyorut Sombor. Rats College of Best Wester 616 Appendix 2 Computer Project Dereses 67 Connor Gage, the project manager. has formed his project team and the members have come up with the following work breakdown structure 1.0 POM+Project 1.1 R&D product development 11.1 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 13.4 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 the software available (save your file). 2. Use this file and the information provided below to create a project schedule 3. 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 and 26 4. 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 off. 5. The project team works cight-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 b. What is the critical path? c. Which activity has the most total slack? d. How sensitive is this network? c. Identify two sensible milestones and explain your choice. take? 69 Appendix 2 cm jest to Include the following (one page) printouts A Gantt chart. A network diagram highlighting the critical path A schedule table reporting ES. LS, EF. LF. and slack for each activity Hints Change the timescale to months and wecks. The estimated duration of the project is 135 days Remember: Save your files for future exercises! The following information has been derived from the WBS. Note that the activity number is what appears in the software with the complete WBS entered. Duration 20 15 6 7 9 10 11 12 13 15 15 12 Activity Need Survey Set product Specs Shelf report Nutrition report Select fruits Entra Production tras Quality trials Quality Quality training Marketesting Package design Select distributors Complete FDA certification Register trademark Prepare product launch Predecessors None 3 4 4 5.6 4 7.9 10 11 12 5.6 15 56 7.15 7.15 13, 16, 17, 19FS +25 days, 20F5+15 days 20 21 Part 2 Remember the old saying, "A project plan is not a schedule until resources are com- mitted." This exercise illustrates this sometime subtle, but important point. Using your files from Part 1 input resources and their costs if you have not already done so. All information is found in Tables A2.1 and A22 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 by leveling within slack What happen! 3. What is the impact of leveling within slack on the sensitivity of the network? 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? Appendix 2 Computer Project Exercise 619 TABLE A2.1 Resource Assignments Activity Need survey Set product specs Shelf life report Nutrition report Select fruit suppliers Equipment rehab Production trials Quality trials Quality metrics Quality training Market testing Package design Select distributors Complete FDA certification Register trademark Prepare product launch Resources MRKT (500%) R&D (400%). MRKT (200%) R&D (300%) R&D (300%) PURCH (100%) ENG (1.000%), PROD (2,000%) PROD (1.500%), PURCH (100%), ENG (1,000%) QUAL (300%). PROD (500%) QUAL (300%). PROD (100%) QUAL(300%). PROD (1,500%) MRKT (500%) DESIGN (300%), MRKT (100%) MRKT (500%) LEGAL (300%) LEGAL (300%) QUAL (300%), PURCH (200%), PROD (1.500%). MRKT (500%), ENG (500%), R&D (100%) TABLE A2.2 Resources Availability and Pay Rates Resource Marketing staff R&D Engineering Purchasing Quality engineers Designers Legal staff Production Abbrev MRKT R&D ENG PURCH QUAL DESIGN LEGAL PROD Available 5 5 10 2 3 3 3 20 Hourly rate $ 80/hr $ 80/ht $100/hr $ 60/hr $ 80/hr $ 60/hr $120/hr $ 60/hr 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 percent). All resources must be assigned 100 percent. APPENDIX TWO Computer Project Exercises In developing the exercises, trade-offs had to be made to enrich the learning experi ence. One of the major problems students initially encounter is data and detail over- load. This reduces their ability to identify project and data problems and to compare alternatives. Although the project found in the exercises is real, it has been reduced and detail has been eliminated many times to concentrate on applying project management principles and understanding linkages. In addition, other simplifying assumptions have been made so that students and instructors can trace problems and discuss outcomes. These assumptions detract from reality, but they keep the focus on the objectives of the exercises and reduce student frustration with software intricacies. Moving from these exercises to real projects is primarily one of increas ing detail The POM+ Project Big Kola Company has been concerned that specialized fruit drinks have been crod- ing their cola market. The CEO mandates that if you can't heat them, join them." Grape juice was the first product that was successful after an advertising blitz claim ing the antitoxin benefits. Lately, competition is compressing grape juice margins and profits. Months of additional market surveys and focus groups have resulted in three potential high-margin drinks: cranberry, blueberry and pomegranate. All these choices represent antitoxins. The decision is to produce the pomegranate drink that has many health claims. For example, the relative ability of these juices to eliminate harmful free radicals (antitoxins) is 71 percent for pomegranate 33 percent for blue berry, and 20 percent for cranberry (Technion Institute of Technology). The market potential appears very attractive and should have a higher profit margin than the other potential juice products. Another appeal for pomegranate juice is its familiarity in the Middle East and Asia. The Priority Matrix for the POM+ Project is Time Scope Cost Constrain Enhance Accept Om Gay. Erk Larsen, Piyorut Sombor. Rats College of Best Wester 616 Appendix 2 Computer Project Dereses 67 Connor Gage, the project manager. has formed his project team and the members have come up with the following work breakdown structure 1.0 POM+Project 1.1 R&D product development 11.1 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 13.4 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 the software available (save your file). 2. Use this file and the information provided below to create a project schedule 3. 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 and 26 4. 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 off. 5. The project team works cight-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 b. What is the critical path? c. Which activity has the most total slack? d. How sensitive is this network? c. Identify two sensible milestones and explain your choice. take? 69 Appendix 2 cm jest to Include the following (one page) printouts A Gantt chart. A network diagram highlighting the critical path A schedule table reporting ES. LS, EF. LF. and slack for each activity Hints Change the timescale to months and wecks. The estimated duration of the project is 135 days Remember: Save your files for future exercises! The following information has been derived from the WBS. Note that the activity number is what appears in the software with the complete WBS entered. Duration 20 15 6 7 9 10 11 12 13 15 15 12 Activity Need Survey Set product Specs Shelf report Nutrition report Select fruits Entra Production tras Quality trials Quality Quality training Marketesting Package design Select distributors Complete FDA certification Register trademark Prepare product launch Predecessors None 3 4 4 5.6 4 7.9 10 11 12 5.6 15 56 7.15 7.15 13, 16, 17, 19FS +25 days, 20F5+15 days 20 21 Part 2 Remember the old saying, "A project plan is not a schedule until resources are com- mitted." This exercise illustrates this sometime subtle, but important point. Using your files from Part 1 input resources and their costs if you have not already done so. All information is found in Tables A2.1 and A22 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 by leveling within slack What happen! 3. What is the impact of leveling within slack on the sensitivity of the network? 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? Appendix 2 Computer Project Exercise 619 TABLE A2.1 Resource Assignments Activity Need survey Set product specs Shelf life report Nutrition report Select fruit suppliers Equipment rehab Production trials Quality trials Quality metrics Quality training Market testing Package design Select distributors Complete FDA certification Register trademark Prepare product launch Resources MRKT (500%) R&D (400%). MRKT (200%) R&D (300%) R&D (300%) PURCH (100%) ENG (1.000%), PROD (2,000%) PROD (1.500%), PURCH (100%), ENG (1,000%) QUAL (300%). PROD (500%) QUAL (300%). PROD (100%) QUAL(300%). PROD (1,500%) MRKT (500%) DESIGN (300%), MRKT (100%) MRKT (500%) LEGAL (300%) LEGAL (300%) QUAL (300%), PURCH (200%), PROD (1.500%). MRKT (500%), ENG (500%), R&D (100%) TABLE A2.2 Resources Availability and Pay Rates Resource Marketing staff R&D Engineering Purchasing Quality engineers Designers Legal staff Production Abbrev MRKT R&D ENG PURCH QUAL DESIGN LEGAL PROD Available 5 5 10 2 3 3 3 20 Hourly rate $ 80/hr $ 80/ht $100/hr $ 60/hr $ 80/hr $ 60/hr $120/hr $ 60/hr 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 percent). All resources must be assigned 100 percent