USE RESOURCES BELOW TO ANSWER QUESTIONS:

1. How much will the project cost? What is the most expensive activity?
2. What does cash flow statement tell you about how costs are distributed over the life span of the project?
3. Include a monthly cash flow
4. Save file as baseline

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 Predecessors Duration 260 days 1 I Red Zuma Project 2 1.1 Market Analysis 25 days 3 1.2 Product Design 30 days 2 4 1.3 Manufacturing Study 20 days 2 5 10 days 3.4 1.4 Product Design Selection 1.5 Detailed Marketing Plan 6 15 days 5 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 10 1.9 Lab Test Prototypes 10 days 9 11 1.10 Field Test Prototypes 15 days 9 12 1.11 Finalized Product Design 20 days 7,10,11 13 1.12 Final Manufacturing Prucess 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, 1SFS+30 days 17 1.16 Celebrate 1 days 6, 16 Nate: 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. TABLE A2.7 Red Zuma Resource Assignments Task Name Resource Names Red Zuma Project Market Analysis Marketing Specialist (400%] Product Design Marketing Specialist, Design Engineer [400%], Development Engineer [200%], Industrial Engineer, Purchasing Agent Manufacturing Study Industrial Engineer (400%), Development Engineer (200%) Product Design Selection Marketing Specialist (200%], Design Engineer [300%). Development Engineer [200%), Industrial Engineer (200%), Purchasing Age Detailed Marketing Plan Marketing Specialist (400% Manufacturing Process Design Engineer, Development Engineer (200%). Industrial Engineer (300%) Detailed Product Design Marketing Specialist [2002], Design Engineer [400%], Development Engineer [200%], Industrial Engineer (200%], Purchasing Age Build Prototypes Design Engineer (200%). Development Engineer (200%). Industrial Engineer (400%) Lab Test Prototypes Field Tests Design Engineer [2002], Development Engineer [2002], Test Rider Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider (300%] Marketing Specialist (200%], Design Engineer [300%], Development Engineer (300%). Industrial Engineer [200%], Purchasing Age Finalized Product Design Final Manufacturing Process Industrial Engineer [300%], Design Engineer, Purchasing Agent (25%) Order Components Purchasing Agent Order Production Equipment Purchasing Agent Install Production Equip Design Engineer, Development Engineer (300%). Industrial Engineer (400%] Celebration Design Engineer [400%], Development Engineer [400%], Industrial Engineer [400%], Marketing Specialist (400%], Purchasing Age Part 2 The following personnel have been assigned full-time to the Red Zuma project team: 4 marketing specialists 4 design engincers 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 A2.7 to assign resources to the project schedule. TABLE A2.6 Red Zuma Project Resources Number available 4 Marketing specialist Design engineer Development engineer 4 $80,000/yr $125,000/yr $110,000/yr $100,000/yr 4 Industrial engineer 4 Purchasing agent $75,000/yr 2 Test rider $70/hr 4 Part B Top management is not happy with the resource-constrained schedule. Robin Lane, the president, has promised retailers that ARC will begin production in time for the major trade show in Las Vegas on January 22, 2016, which means the project nceds to be completed by January 17, 2016. She has authorized working the first available Saturday of each month to help the project get completed sooner. She realizes that this will only reduce the project duration by 12-13 days. After talking to the engineers, everyone agrees that they do not have to wait for the Detailed Product Design to be 100% completed before starting to build the prototype. The consensus is that Building the Prototype can start 30 days after the start of the Detailed Product Design. Likewise the Final Manufacturing Process can start 15 days after the start of Finalized Product Design. Dewey Martin, director of product development, is also willing to add personnel to the project. He is willing to make available at least one more Development, Design, and/or Industrial Engineer to the project as well as Marketing Specialist. Since there is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the deadline. Your objective is to develop a schedule that will satisfy the deadline with minimum additional resource usage. Prepare a memo that addresses the following questions: 1. What was the impact of introducing Start-to-Start lags to the schedule and budget? 2. Which, if any additional personnel assignments, would you choose to complete the project before the January 17th deadline? Explain your choices as well as the reasons for not choosing other options. 3. How have these changes affected the sensitivity of the network and the critical path? Include a Gantt chart with a schedule table displaying free and total slack for the new schedule. Note: Do not assign new personnel to specific tasks, simply add them to the Resource Sheet. All new personnel are available full time (100%). 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 Predecessors Duration 260 days 1 I Red Zuma Project 2 1.1 Market Analysis 25 days 3 1.2 Product Design 30 days 2 4 1.3 Manufacturing Study 20 days 2 5 10 days 3.4 1.4 Product Design Selection 1.5 Detailed Marketing Plan 6 15 days 5 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 10 1.9 Lab Test Prototypes 10 days 9 11 1.10 Field Test Prototypes 15 days 9 12 1.11 Finalized Product Design 20 days 7,10,11 13 1.12 Final Manufacturing Prucess 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, 1SFS+30 days 17 1.16 Celebrate 1 days 6, 16 Nate: 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. TABLE A2.7 Red Zuma Resource Assignments Task Name Resource Names Red Zuma Project Market Analysis Marketing Specialist (400%] Product Design Marketing Specialist, Design Engineer [400%], Development Engineer [200%], Industrial Engineer, Purchasing Agent Manufacturing Study Industrial Engineer (400%), Development Engineer (200%) Product Design Selection Marketing Specialist (200%], Design Engineer [300%). Development Engineer [200%), Industrial Engineer (200%), Purchasing Age Detailed Marketing Plan Marketing Specialist (400% Manufacturing Process Design Engineer, Development Engineer (200%). Industrial Engineer (300%) Detailed Product Design Marketing Specialist [2002], Design Engineer [400%], Development Engineer [200%], Industrial Engineer (200%], Purchasing Age Build Prototypes Design Engineer (200%). Development Engineer (200%). Industrial Engineer (400%) Lab Test Prototypes Field Tests Design Engineer [2002], Development Engineer [2002], Test Rider Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider (300%] Marketing Specialist (200%], Design Engineer [300%], Development Engineer (300%). Industrial Engineer [200%], Purchasing Age Finalized Product Design Final Manufacturing Process Industrial Engineer [300%], Design Engineer, Purchasing Agent (25%) Order Components Purchasing Agent Order Production Equipment Purchasing Agent Install Production Equip Design Engineer, Development Engineer (300%). Industrial Engineer (400%] Celebration Design Engineer [400%], Development Engineer [400%], Industrial Engineer [400%], Marketing Specialist (400%], Purchasing Age Part 2 The following personnel have been assigned full-time to the Red Zuma project team: 4 marketing specialists 4 design engincers 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 A2.7 to assign resources to the project schedule. TABLE A2.6 Red Zuma Project Resources Number available 4 Marketing specialist Design engineer Development engineer 4 $80,000/yr $125,000/yr $110,000/yr $100,000/yr 4 Industrial engineer 4 Purchasing agent $75,000/yr 2 Test rider $70/hr 4 Part B Top management is not happy with the resource-constrained schedule. Robin Lane, the president, has promised retailers that ARC will begin production in time for the major trade show in Las Vegas on January 22, 2016, which means the project nceds to be completed by January 17, 2016. She has authorized working the first available Saturday of each month to help the project get completed sooner. She realizes that this will only reduce the project duration by 12-13 days. After talking to the engineers, everyone agrees that they do not have to wait for the Detailed Product Design to be 100% completed before starting to build the prototype. The consensus is that Building the Prototype can start 30 days after the start of the Detailed Product Design. Likewise the Final Manufacturing Process can start 15 days after the start of Finalized Product Design. Dewey Martin, director of product development, is also willing to add personnel to the project. He is willing to make available at least one more Development, Design, and/or Industrial Engineer to the project as well as Marketing Specialist. Since there is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the deadline. Your objective is to develop a schedule that will satisfy the deadline with minimum additional resource usage. Prepare a memo that addresses the following questions: 1. What was the impact of introducing Start-to-Start lags to the schedule and budget? 2. Which, if any additional personnel assignments, would you choose to complete the project before the January 17th deadline? Explain your choices as well as the reasons for not choosing other options. 3. How have these changes affected the sensitivity of the network and the critical path? Include a Gantt chart with a schedule table displaying free and total slack for the new schedule. Note: Do not assign new personnel to specific tasks, simply add them to the Resource Sheet. All new personnel are available full time (100%)