Project Management Email Individual Paper Essay

With the available information from the previous email regarding the projects of Juniper, Palomino and Stargazer, I feel it is in the company’s best interest to go with the Palomino project moving forward. The reason for not selecting the other two options is because Juniper carries too low of a risk for completion. Stargazer is not worth the high risk of completion and the unfamiliarity of how the final product will be with the customer. The method applied for making this decision was by utilizing the feasibility study. The main purpose of this is because using this project would have to make sense to the company as a whole. Answering all of the questions on Return On Investment (ROI), length of project, risk and overall benefit to Piper Industries. Using the feasibility study for the Juniper and Stargazer projects, it was a basic understanding that previously mentioned material would not be present as with the Palomino model. There are five different phases in project management that involve the  Palomino project and those are (Jacobs & Chase 2011): †¢Project conception and initiation: The main focus of this phase is to ensure the project being presented is realistic and will benefit the company. †¢Project definition and planning: The scope of the project will need an outline so the work which needs to be performed is available. Prioritizing, budgets and timelines are in this phase as well. †¢Project launch or execution: Tasks are assigned and each team is made aware of their responsibilities. †¢Project performance and control: The status and progress will be checked against the actual plan to ensure everything is running smoothly. The project manager will make adjustments as need to keep the original project on target. †¢Project close: Once all tasks are complete and the customer is content with the final product, a lesson learn plan will need to be established†¦ Content: Project Management Recommendation Name: Institution: Date: Dear Ray I duly received your email and we reviewed the three projects with my team. After critical analysis the board felt that the second project on your email (Palomino) was the best project for investment. The risk for completion is average; therefore, it does not put the company at a high risk of losing Dear Mr. Gritsch, Our team wants to thank Piper Industries Corporate vice-president, Wendell Deirelein, for choosing our team to analyze the projects. In the attached document you will find our analysis and recommendation of the Project Proposal that benefits your company. Thank you, Project Manager Project Management Recommendation Project to be Implemented Piper Industries needs a completed project and for it to be generating review within 12 month’s of the Project Management Office’s (PMO) review (University of Phoenix, 2012). The project that fits the company’s  requirements is the Stargazer project. The Stargazer project is efficient and the expectation of the project being completed on time is high. The research and development has already started on the widgets (University of Phoenix, 2012). According to the project descriptions, $450,000 has been spent on the product and they average a total of $575,000 being spent in order to bring the product to the market (University of Phoenix, 2012). Even though the dollar amount spent in this project is high, the return on investment for this project is high; by the third year the product is forecasted to have a return of investments of $750,000 (University of Phoenix, 2012). The product life of this project is forecasted to be 7 years (University of Phoenix, 2012). This product is still not being used, meaning Piper Industries will be the first company to launch the product to the market. By bringing such an innovative product into the marketplace, it can make Piper Industries the leader in the industry (University of Phoenix, 2012). Five Phases According to Stricker (2013), â€Å"Whether a project is large or small, the stages of a project are ultimately the same. Initiate the project, and then move into planning, followed by execution†¦. Project Management Recommendation Piper Industries Corp. wants to make a decision on the appropriate project to invest in based on three recommendations. First, Juniper is an enhancement of a current widget being offered by the company, while Palomino is a new line of widget products including enhancements using existing technology, and Stargazer is a production of completely new widgets, which research and development have already started on. The company assigned our team to analyze the three projects and make recommendations on which project the company should invest in. The recommendation must include our description of the five phases of the project and the key deliverables (project completion date and cost) for each project (University of Phoenix, 2013). The Project Recommendation Based on the break-even analysis for the Juniper project it basically shows the company will not, or barely break-even, during the life cycle of the production of these widgets due to technology advancements causing this product line to become obsolete after three years? It has a cost of $325,000 and Return on Investment only producing $250,000 for the two to three years of production with the third year being the end of life for this product. If the company chooses the Palomino project it will also have a hard time breaking-even and producing revenue streams over the life-time of the production with a 5% margin of error with the seventh year being the end of life for the product. The strength of the economy plays a large determining factor in this forecast due to 5% differential in the life cycle of this product. Palomino will cost $655,000 with the Return of Investment being $450,000 over a five year period with that 5%, plus or minus, margin of error. Profit would then start to be recognized in the sixth and seventh year of the life cy†¦ Thank you for choosing our team to analyze the three projects your company has proposed. After meeting with my team and analyzing the data of the three projects, we have to come to an agreement that the project your company should invest in is the Juniper project. Since your company is currently somewhat familiar with the product involved in this project, it will be more efficient and cost effective to continue the enhancement of this product. There are five phases of the project that must take place in order for the project to be a success. The first phase is the planning phase which includes a product approval and launch of the actual product development process. This also includes a mission statement that includes the target market of the product, business goals, key assumptions and constraints. The second phase is concept development. This phase is focused more on the needs of the target market, alternative product concepts which will need further testing and development. The concept is key in this phase because it describes the form, function and features of the product that are accompanied by a set of specifications and an economic justification for the project (Jacobs, pg. 74). The third phase is design detail which entails the specific parts of the product and all standard parts that are needed  from the supplier. This process also includes drawings and computer files that describe the geometry of each tool, purchased parts and process plans. The fourth phase is testing and refinement. This phase is includes construction and evaluation of multiple versions of the preproduction of the product. This is the time when we would be prototypes in order to determine if the product satisfies customer needs. The final phase is the production ramp-up. The product is made of intended production system. The purpose of the ramp-up is to get the workforce trained and to work out a remaining issues that may arise during the process such as†¦ Dear Mr. Gritsch: In continuation of your email dated February 10, 2014, I have completed analysis of three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project. Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. In continuation of your email dated February 10, 2014, I have completed analysis of three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project. Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. In continuation of your email dated February 10, 2014, I have completed analysis of three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project. Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. My feasibility study focused on Return on Investment (ROI), length of project, risk level and overall benefit to Piper Industries. See below for the results. Juniper: Return on Investment (ROI): 77% or $250,000 for a period of 2 to 3 years Length of project: Uncertain Risk of completion on time: Low Overall benefit: Enhancement of current product, increased product demand Palomino: Return on Investment (ROI): 69% or $450,000 for a period of 5 years Length of project: 7 Years Risk of completion on time: Medium Overall benefit: New product, use of existing technology, custom part, constant demand Stargazer: Return on Investment (ROI): 278% or $1,600,000 for a period of 3 years Length of project: 7 Years Risk of completion on time: High Overall benefit: Research & Development of a new product, market leader, project recommend that the board invest in the project, Stargazer; particularly because the company has Reference Jacobs, F. R. & Chase, R. (2011). Operations and Supply Chain Management (13th ed.) Boston, MA: McGraw-Hill Irwin.