The project was behind schedule and over budget as of August 26th. Two options were considered to complete the project on time: 1) Hiring additional testers, which increased costs too much, or 2) Removing a per-item shipping charge, freeing up a developer to help complete a critical task earlier. This option allowed completion by November 26th. Incorporating promotional bundles further delayed completion to December 1st unless the final project wrap-up task was removed. The estimated total cost was $1,014,680, over the baseline cost by $71,200.
The project was behind schedule and over budget as of August 26th. Two options were considered to complete the project on time: 1) Hiring additional testers, which increased costs too much, or 2) Removing a per-item shipping charge, freeing up a developer to help complete a critical task earlier. This option allowed completion by November 26th. Incorporating promotional bundles further delayed completion to December 1st unless the final project wrap-up task was removed. The estimated total cost was $1,014,680, over the baseline cost by $71,200.
The project was behind schedule and over budget as of August 26th. Two options were considered to complete the project on time: 1) Hiring additional testers, which increased costs too much, or 2) Removing a per-item shipping charge, freeing up a developer to help complete a critical task earlier. This option allowed completion by November 26th. Incorporating promotional bundles further delayed completion to December 1st unless the final project wrap-up task was removed. The estimated total cost was $1,014,680, over the baseline cost by $71,200.
A&D High Tech (B) Introduction A&D High tech designed a project to start on 26 th May. As of 26 th August the project has gone behind schedule and it was imperative to finish the project before the holiday season i.e. 15 th December (assumed). The purpose of this case analysis is to analyse possible ways to complete the project in time and check for the possibility of incorporating a promotional bundle and still complete the project on time. Project Statistics at the Start and at August 26
Cost Performance Index (CPI) = 0.91 Schedule Performance Index (SPI) = 0.68 As seen from the above indices the project is both over budget and behind schedule. The critical path as of now is given as follows: Build ERP Interface Perform Phase 2 Testing Perform System Testing Perform Validation Testing Implement System Deploy to production Project Wrap up Options Available for Chris Johnson Option 1: Hiring of Extra Test Developer for testing In this option we tried to hire extra test developers for testing purpose as testing was a critical step. To bring the schedule down to December 1, three test developers were required which added a lot of cost. Hence this option was discarded. Option 2: Removal of per item shipping charge In this option the work was reduced by 50% in Submit order tasks while freeing up a developer. This developer was deployed in Building ERP Interface task. Upon doing that the project timeline decreases significantly to finish the project by 26 th November. Priyanshu Kumar Roll no: 1311314 Assumption: One of the assumption made in this is removal of per item shipping charge is not significant. Incorporating promotional bundles Contract developer (CD) vs Microsoft Consultant (MC): The cost of going through with CD is higher as compared to that of MS. Choices No of days Required Cost Total Cost Contract Developer 15 (with training) $175/hr =8*175*15 = $21000 Microsoft Consultant 3 $500/hr =3*500*8 = $12000
Two new tasks of Pricing Rules & Performing Pricing Module were scheduled. Pricing rules will be done by the consultant which have a lead time of procurement of one week. Hence it should be completed before 11 th of November. Hence the consultant should be called in the last week of October. For the task Performing Price Module all the resources from the previous task i.e. Perform Validation Testing are being used. The cost incurred in the process is $21,360. Using the same logic of removing the per item shipping charge the project was taken through. It was observed that the start of Project Wrap Up task is scheduled to start by 1 st of December. Hence if the task of Project Wrap Up is left the project can start on the scheduled date. The total cost incurred for the same will be $1,014,680 With Project Wrap Up task included the CPI and SPI index were 1.1 and 0.94 respectively. Hence the project was completed within the budget although it somewhat exceeded the initial schedule. Risk Involved 1. Removal of per item shipping charge may turn out to be a critical process 2. The use of consultant for the project may not have enough traction with the work done inside the firm Estimated Cost Variance The cost variance of the project as seen on 26 th of August can be determined by subtracting the baseline cost i.e. $943,480 from the projected estimated cost i.e. $1,014,680. Estimated Cost Variance = $71200 This implies that the cost will shoot up by the above number.