A&d_report

Priyanshu Kumar Roll no: 1311314

A&D High Tech (B) Introduction A&D High tech designed a project to start on 26th May. As of 26th August the project has gone behind schedule and it was imperative to finish the project before the holiday season i.e. 15th 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 26th 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 11th 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 1st 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 26th 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.