See MSProjectHW2Solution.mppSee Appendix_02.pdfCompletePart A of Part 3 of the Conveyor Belt Project.Your deliverables are:1) An .mpp file after adding the resources in part A. Name MSProjEx3_LastName_A1.2) An .mpp file after you do the levelling for questions 1-3 of Part A. Name MSProjEx3_LastName_A2.3) An .mpp file after you do the levelling for Questions 4-5 of Part A. Name MSProjEx3_LastName_A3.4) A .docx file providing a professionally formatted memo answering questions 1-5. Name MSProjEx3_LastName_MemoA.Part B. The project must complete by 2/2/16. Provide an .mpp file of the final schedule you come up with and another .docx file explaining what you did. (Up to 50 pts extra credit). Name the files MSProjEx3_LastName_MemoB.Lar03342_app2_625-641.indd Page 625 2/3/10 9:06:02 PM user-f498Lar03342_app2_625-641.indd Page 625 2/3/10 9:06:02 PM user-f498APPENDIX/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208TWOComputer ProjectExercisesIn developing the exercises, trade-offs had to be made to enrich the learningexperience. One of the major problems students initially encounter is data and detailoverload. This reduces their ability to identify project and data problems and tocompare alternatives. Although the project found in the exercises is real, it has beenreduced and detail has been eliminated many times to concentrate on applying projectmanagement principles and understanding linkages. In addition, other simplifyingassumptions have been made so that students and instructors can trace problems anddiscuss outcomes. These assumptions detract from reality, but they keep the focus onthe objectives of the exercises and reduce student frustration with software intricacies.Moving from these exercises to real projects is primarily one of increasing detail. Thesimplifying assumptions are given below (make sure they are included in default,preferences, and/or options sections of the software used):The POM1 Project*Big Kola Company has been concerned that specialized fruit drinks have beeneroding their cola market. The CEO mandates that If you cant beat them, jointhem. Grape juice was the first product that was successful after an advertisingblitz claiming the antitoxin benefits. Lately, competition is compressing grapejuice margins and profits. Months of additional market surveys and focus groupshave resulted in three potential high-margin drinks: cranberry, blueberry, andpomegranate. All these choices represent antitoxins. The decision is to produce thepomegranate drink that has many health claims. For example, the relative ability ofthese juices to eliminate harmful free radicals (antitoxins) is 71 percent for pomegranate, 33 percent for blueberry, and 20 percent for cranberry (Technion Instituteof Technology). The market potential appears very attractive and should have ahigher profit margin than the other potential juice products. Another appeal forpomegranate juice is its familiarity in the Middle East and Asia.The Priority Matrix for the POM1 Project is:TimeConstrainEnhanceAcceptScopeCostXXX* Cliff Gray, Erik Larson, & Pinyarat Sirisomboonsuk, doctoral candidate at Rawls College of Business, Texas Tech University.625Lar03342_app2_625-641.indd Page 626Lar03342_app2_625-641.indd Page 6262/9/102/9/102:06:19 AM user-f4992:06:19 AM user-f499/Users/user-f499/Desktop/Temp Work/Don’t Delete Job/MHBR165:Larsen:2/Users/user-f499/Desktop/Temp Work/Don’t Delete Job/MHBR165:Larsen:20626 Appendix 2 Computer Project ExercisesConnor Gage, the project manager, has formed his project team and the membershave come up with the following work breakdown structure.1.0 POM1Project1.1 R&D product development1.1.1 Need survey1.1.2 Set product specs1.1.3 Shelf life report1.1.4 Nutrition report1.2 Secure fruit suppliers1.3 Initial Production1.3.1 Equipment rehab1.3.2 Production trials1.3.3 Quality trials1.3.4 Quality metrics1.3.5 Quality training1.4 Distribution1.4.1 Market testing1.4.2 Package design1.4.3 Select distributors1.5 Legal1.5.1 Complete FDA certification1.5.2 Register trademark1.6 Prepare product launchPart 11. Develop the WBS outline using the software available (save your file).2. Use this file and the information provided below to create a projectschedule.3. The following holidays are observed: January 1, Martin Luther King Day (thirdMonday in January), Memorial Day (last Monday in May), July 4th, LaborDay (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 eight-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 dayswill it take?b. What is the critical path?c. Which activity has the most total slack?d. How sensitive is this network?e. Identify two sensible milestones and explain your choice.Lar03342_app2_625-641.indd Page 627 2/3/10 9:06:03 PM user-f498Lar03342_app2_625-641.indd Page 627 2/3/10 9:06:03 PM user-f498/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208Appendix 2 Computer Project Exercises 627Include 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 weeks. The estimated duration of theproject is 135 days.Remember: Save your files for future exercises!The following information has been derived from the WBS. Note that the activitynumber is what appears in the software with the complete WBS entered.#*Activity34567910111213151617192021Need surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsQuality metricsQuality trainingMarket testingPackage designSelect distributorsComplete FDA certificationRegister trademarkPrepare product launchDuration20151052030152051530152515515Predecessor(s)None3445, 647, 91011125, 6155, 67, 157, 1513, 16, 17, 19FS 1 25days, 20FS 1 15 daysFS = Finish to Start lagPart 2Remember the old saying, A project plan is not a schedule until resources arecommitted. 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 A2.2.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 overallocationproblems by leveling within slack. What happens?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 overallocationproblems by leveling outside of slack. What happens?Lar03342_app2_625-641.indd Page 628Lar03342_app2_625-641.indd Page 6282/2/102/2/1012:54:22 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:22 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U628 Appendix 2 Computer Project ExercisesTABLE A2.1TABLE A2.2Resources Availabilityand Pay RatesActivityResourcesNeed surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsQuality metricsQuality trainingMarket testingPackage designSelect distributorsComplete FDA certificationRegister trademarkPrepare product launchResource AssignmentsMRKT (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%)ResourceAbbrevAvailableHourly rateMarketing staffR&DEngineeringPurchasingQuality engineersDesignersLegal staffProductionMRKTR&DENGPURCHQUALDESIGNLEGALPROD5510233320$ 80/hr$ 80/hr$100/hr$ 60/hr$ 80/hr$ 60/hr$120/hr$ 60/hrInclude a Gantt chart with the schedule table after leveling outside of slack.Note: No splitting of activities is allowed.Note: No partial assignments (i.e., 50 percent). All resources must be assigned100 percent.Part 3Top management has accepted the July 19th completion schedule created at theend of Part 2. Prepare a brief memo that addresses the following questions:1. How much will the project cost? What is the most expensive activity?2. What does the cash flow statement tell you about how costs are distributed overthe life span of the project?Include a monthly cash flow for the project.Once you are confident that you have the final schedule, save the file as a baseline. Hint: Save a backup file just in case without baseline!Lar03342_app2_625-641.indd Page 629 2/3/10 9:06:03 PM user-f498Lar03342_app2_625-641.indd Page 629 2/3/10 9:06:03 PM user-f498/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208Appendix 2 Computer Project Exercises 629TABLE A2.3Status ReportMarch 31, 2012ActivityNeed surveySet product specsShelf life reportNutrition reportEquipment rehabActual StartActual FinishActual DurationRemaining Duration1/3/122/3/122/29/123/14/122/29/122/2/122/28/123/13/123/19/12221810423000012Part 4 AAssume that today is March 31, 2012, and Table A2.3 contains the tracking information for the project up till now. Enter this information into your saved baselinefile and prepare a status report for the first three months of the POM1 project.Your status report should also address the following questions:1. How is the project progressing in terms of cost and schedule?2. What activities have gone well? What activities have not gone well?3. What do the PCIB and PCIC indicate in terms of how much of the project hasbeen accomplished to date?4. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?5. Report and interpret the TCPI for the project at this point in time.6. What is the estimated date of completion?7. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include an Earned Value table and a Tracking Gantt Chart.Note: Insert March 31, 2012, as the status date in the Project Information box.Part 4 BAssume that today is May 31, 2012, and Table A2.4 contains the tracking information for the project up till now. Enter this information into your saved baselinefile and prepare a status report for the POM1 project.Your status report should address the following questions:1. How is the project progressing in terms of cost and schedule?2. What activities have gone well? What activities have not gone well?3. What do the PCIB and PCIC indicate in terms of how much of the project hasbeen accomplished to date?4. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?5. Report and interpret the TCPI for the project at this point in time.6. What is the estimated date of completion?7. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include an Earned Value table and a Tracking Gantt Chart.Note: Insert May 31, 2012, as the status date in the Project Information box.Lar03342_app2_625-641.indd Page 630Lar03342_app2_625-641.indd Page 6302/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U630 Appendix 2 Computer Project ExercisesTABLE A2.4Status ReportMay 31, 2012ActivityActual StartNeed surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsMarket testingPackage designSelect distributorsComplete FDAcertificationActual FinishActual DurationRemaining Duration1/3/122/3/122/29/123/14/124/3/122/29/124/17/125/7/124/4/125/10/125/28/122/2/122/28/123/13/123/19/124/30/124/11/125/4/125/31/125/9/125/25/12221810420311418261240000000000185/11/125/31/12140Blue Zuma ProjectThe ARC Company specializes in developing and selling a wide range of high-qualityscooters. Sales representatives report that there is a growing demand for racingscooters. ARCs president, Robin Lane, is excited about the possibilities and predictsthat one day these kinds of razor scooters will be featured in X-Game events. ARC isa small company and uses a strong matrix to optimally utilize limited manpower.The Project Priority Matrix for the Blue Zuma Project is:TimeConstrainEnhanceAcceptScopeCostXXXPart 1You are a member of a project team assigned to develop the new razor scootercode named Blue Zuma. Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following:1. The project begins January 2, 2008.2. The following holidays are observed: January 1, Memorial Day (last Mondayin May), July 4th, Labor Day (first Monday in September), Thanksgiving Day(4th Thursday in November), December 25 and 26.3. 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.4. The project team works eight-hour days, Monday through Friday.Construct a network schedule for this project and prepare a memo that answersthe following questions:1. When is the project estimated to be completed? How long will the project take?2. What is the critical path for the project?Lar03342_app2_625-641.indd Page 631Lar03342_app2_625-641.indd Page 6312/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 631TABLE A2.5 Blue Zuma ProjectIDTask NameDurationPredecessors123Product development projectMarket analysisProduct design25 days40 days245Manufacturing studyProduct design selection20 days10 days23,4678Detailed marketing planManufacturing processDetailed product design15 days30 days50 days555910Test prototypeFinalized product design10 days25 days87,9111213Order componentsOrder production equipmentInstall production equipment7 days14 days35 days14Celebrate101011F-S 1 20 days,12F-S 1 40 days6,131 day3.4.5.6.ResourcesMarketing (4)Marketing (1) Design (4)Development (2) Industrial (1)Purchasing (1)Industrial (4) Development (2)Marketing (2) Design (3)Development (2) Industrial (2)Purchasing (.25)Marketing (4)Design (1) Development (2) Industrial (4)Marketing (2) Design (4)Development (2) Industrial (2) Purchasing (.25)Design (3) Development (2)Marketing (2) Design (3)Development (3) Industrial (2)Purchasing (1)Purchasing (1)Development (3) Industrial (4) Design (1)Development (4) Industrial (4)Design (4) Marketing (4) Purchasing (1)Which activity has the greatest amount of slack?How sensitive is this network?Identify two sensible milestones and explain your choices.Compare the advantages/disadvantages of displaying the schedule as a networkversus a Gantt chart.Include the following printouts:A Gantt chart.A network diagram highlighting the critical path.A schedule table reporting ES, LS, EF, LF, and slack for each activity.Part 2The following personnel have been assigned to the Blue Zuma project team:4 marketing specialists4 design engineers4 development engineers4 industrial engineers1 purchasing agentUse the file from Part 1 and the information contained in Tables A2.5 and A2.6 toassign resources to the project schedule.Lar03342_app2_625-641.indd Page 632Lar03342_app2_625-641.indd Page 6322/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U632 Appendix 2 Computer Project ExercisesTABLE A2.6Blue Zuma ProjectResourcesResourceMarketing specialistDesign engineerDevelopment engineerIndustrial engineerPurchasing agent$/hourNumber Available$60$90$80$70$5044441Part APrepare a memo that addresses the following questions:1. Which if any of the resources are overallocated?2. Which activities involve overallocated resources?3. Assume that the project is time constrained and try to resolve any overallocation problems by leveling within slack. What happens?4. 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.Part BPrepare a memo that addresses the following questions:1. Assume that the project is resource constrained and no additional personnelare available. How long will the project take given the resources assigned? (Hint:Undo leveling performed in Part A before answering this question.)Note: No splitting of activities is allowed.2. How does the new duration compare with the estimated completion date generated from Part 1? What does this tell you about the impact resources can haveon a schedule?Include a Gantt chart with a schedule table depicting the resource-constrainedschedule.Part 3Top management is not happy with the resource-constrained schedule generatedat the end of Part 2. Robin Lane, the president, has promised retailers that production of the new scooters would start on February 1, 2009.1. What options are available to meet this new deadline if the project is not resource constrained?2. What options are available to meet this deadline if the project is resourceconstrained?Dewey Martin, director of product development, has managed to make the following personnel available to work on specific activities on the project. Sincethere is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the new deadline. Your objective is to develop a schedule which will satisfy the deadline with minimum additional resourceusage. The available personnel and impact on activity duration are presented inTable A2.7.Lar03342_app2_625-641.indd Page 633Lar03342_app2_625-641.indd Page 6332/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 633TABLE A2.7Blue Zuma ProjectCrashing OptionsActivityAdditional ResourcesRevised Duration EstimatesDetailed marketing planDetailed product designInstall production equipmentMarketing (2)Design (1) Development (1)Industrial (1) Development (1)10 days42 days27 daysPay rates for additional personnel: Marketing, $70/hour; Design, $100/hour; Development, $90/hour; and Industrial, $80/hour.Prepare a memo that addresses the following questions:1. Which additional personnel assignments would you choose to complete theproject before the February 1st deadline? Explain your choices as well as thereasons for not choosing other options.2. How have these changes affected the sensitivity of the network?Include a Gantt chart with a schedule table presenting the new schedule.Note: You cannot go back and relevel resources. These new resources are onlyavailable for the stated specific tasks according to the schedule created at the endof Part 2.Part 4Robin Lane and top management have approved the schedule generated at theend of Part 3. Save the file containing this schedule as a baseline schedule.Prepare a memo that addresses the following questions:1.2.3.4.How much is the project estimated to cost?What activity is estimated to cost the most to complete?What resource commands the greatest total cost?During which month of the project are the highest and lowest costs expected tooccur? What are those costs?5. What likely costs are not contained in this budget?Include a table containing the estimated costs for each activity and a cash flowschedule for each month of the project.Part 5Todays date is August 16, 2008. Table A2.8 summarizes the information regarding activities accomplished to date.Robin Lane has requested a written status report for the Blue Zuma project.1. Your status report should include a table containing the PV, EV, AC, BAC,EAC, SV, CV, and CPI for each activity and the whole project. The reportshould also address the following questions:TABLE A2.8Blue Zuma ProjectUpdateActivityMarket analysisProduct designManufacturing studyProduct design selectionManufacturing processDetailed product designTest prototypeStart DateFinish DateActual Duration1/2/082/4/083/21/084/23/088/1/085/14/088/1/082/1/083/20/084/22/085/13/08233423151155117/31/088/15/08Remaining Duration25Lar03342_app2_625-641.indd Page 634Lar03342_app2_625-641.indd Page 6342/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U634 Appendix 2 Computer Project Exercisesa. How is the project progressing in terms of cost and schedule?b. What activities have gone well? What activities have not gone well?c. What do the PCIB and PCIC indicate in terms of how much of the projecthas been accomplished to date?d. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?e. Report and interpret the TCPI for the project at this point in time.f. What is the estimated date of completion?g. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include a tracking Gantt chart with your report.Note: Enter August 15 as the status report date since you are preparing your report on the 16th.2. While preparing your report you receive a phone call from Jim Keltner, a fellowproject manager. He is calling to see if one of the industrial engineers assignedto your project would be available to work on his project from August 22 to 27,2008. What would you tell him?Part 6Robin Lane has authorized using Management Reserves to expedite the shippingof components at an additional cost of $50,000. She has asked you to updatecompletion and cost estimates for the Blue Zuma project. Table A2.9 presents therevised estimates generated by the Blue Zuma project team.Based on this new information prepare a memo that answers the followingquestions:1. When will the project be completed? How does this compare with the baselinecompletion date?2. What is the new estimated cost at completion (EAC)? What is the new VAC?How does this compare with VAC based on the EACf generated in Part 5?Which of the two VACs would you have the greatest confidence in and why?3. How do you think Robin will react given the priorities for this project?Include a tracking Gantt with a cost table for the estimated completion schedule.TABLE A2.9Blue Zuma ProjectRevised Estimates toCompletionActivityMarket analysisProduct designManufacturing studyProduct design selectionDetailed marketing planManufacturing processDetailed product designTest prototypeFinalized product designOrder componentsOrder production equipment *Install production equipmentCelebrate* Add $50,000 expediting costs.Start DateFinish DateActual Duration1/2/082/4/083/21/084/23/0810/28/088/1/085/14/088/1/089/19/0810/31/0810/17/0812/9/081/23/092/1/083/20/084/22/085/13/0811/24/089/18/067/31/088/15/0810/16/0811/6/0811/3/081/22/091/23/09233423152034551120512301Lar03342_app2_625-641.indd Page 635Lar03342_app2_625-641.indd Page 6352/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 635Conveyor Belt ProjectPart 1Project DescriptionThe new computer-controlled conveyor belt is an exciting project that moves andpositions items on the conveyor belt within ,1 millimeter. The project will produce a new system for future installations, and for replacement of those in thefield, at a low cost. The computer-controlled conveyor belt has the potential to bea critical unit in 30 percent of the systems installed in factories. The new system isalso easier to update with future technologies.The Project Priority Matrix for the Conveyor Belt Project (CBP) is:TimeConstrainEnhanceAcceptScopeCost…See MSProjectHW2Solution.mppSee Appendix_02.pdfCompletePart A of Part 3 of the Conveyor Belt Project.Your deliverables are:1) An .mpp file after adding the resources in part A. Name MSProjEx3_LastName_A1.2) An .mpp file after you do the levelling for questions 1-3 of Part A. Name MSProjEx3_LastName_A2.3) An .mpp file after you do the levelling for Questions 4-5 of Part A. Name MSProjEx3_LastName_A3.4) A .docx file providing a professionally formatted memo answering questions 1-5. Name MSProjEx3_LastName_MemoA.Part B. The project must complete by 2/2/16. Provide an .mpp file of the final schedule you come up with and another .docx file explaining what you did. (Up to 50 pts extra credit). Name the files MSProjEx3_LastName_MemoB.Lar03342_app2_625-641.indd Page 625 2/3/10 9:06:02 PM user-f498Lar03342_app2_625-641.indd Page 625 2/3/10 9:06:02 PM user-f498APPENDIX/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208TWOComputer ProjectExercisesIn developing the exercises, trade-offs had to be made to enrich the learningexperience. One of the major problems students initially encounter is data and detailoverload. This reduces their ability to identify project and data problems and tocompare alternatives. Although the project found in the exercises is real, it has beenreduced and detail has been eliminated many times to concentrate on applying projectmanagement principles and understanding linkages. In addition, other simplifyingassumptions have been made so that students and instructors can trace problems anddiscuss outcomes. These assumptions detract from reality, but they keep the focus onthe objectives of the exercises and reduce student frustration with software intricacies.Moving from these exercises to real projects is primarily one of increasing detail. Thesimplifying assumptions are given below (make sure they are included in default,preferences, and/or options sections of the software used):The POM1 Project*Big Kola Company has been concerned that specialized fruit drinks have beeneroding their cola market. The CEO mandates that If you cant beat them, jointhem. Grape juice was the first product that was successful after an advertisingblitz claiming the antitoxin benefits. Lately, competition is compressing grapejuice margins and profits. Months of additional market surveys and focus groupshave resulted in three potential high-margin drinks: cranberry, blueberry, andpomegranate. All these choices represent antitoxins. The decision is to produce thepomegranate drink that has many health claims. For example, the relative ability ofthese juices to eliminate harmful free radicals (antitoxins) is 71 percent for pomegranate, 33 percent for blueberry, and 20 percent for cranberry (Technion Instituteof Technology). The market potential appears very attractive and should have ahigher profit margin than the other potential juice products. Another appeal forpomegranate juice is its familiarity in the Middle East and Asia.The Priority Matrix for the POM1 Project is:TimeConstrainEnhanceAcceptScopeCostXXX* Cliff Gray, Erik Larson, & Pinyarat Sirisomboonsuk, doctoral candidate at Rawls College of Business, Texas Tech University.625Lar03342_app2_625-641.indd Page 626Lar03342_app2_625-641.indd Page 6262/9/102/9/102:06:19 AM user-f4992:06:19 AM user-f499/Users/user-f499/Desktop/Temp Work/Don’t Delete Job/MHBR165:Larsen:2/Users/user-f499/Desktop/Temp Work/Don’t Delete Job/MHBR165:Larsen:20626 Appendix 2 Computer Project ExercisesConnor Gage, the project manager, has formed his project team and the membershave come up with the following work breakdown structure.1.0 POM1Project1.1 R&D product development1.1.1 Need survey1.1.2 Set product specs1.1.3 Shelf life report1.1.4 Nutrition report1.2 Secure fruit suppliers1.3 Initial Production1.3.1 Equipment rehab1.3.2 Production trials1.3.3 Quality trials1.3.4 Quality metrics1.3.5 Quality training1.4 Distribution1.4.1 Market testing1.4.2 Package design1.4.3 Select distributors1.5 Legal1.5.1 Complete FDA certification1.5.2 Register trademark1.6 Prepare product launchPart 11. Develop the WBS outline using the software available (save your file).2. Use this file and the information provided below to create a projectschedule.3. The following holidays are observed: January 1, Martin Luther King Day (thirdMonday in January), Memorial Day (last Monday in May), July 4th, LaborDay (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 eight-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 dayswill it take?b. What is the critical path?c. Which activity has the most total slack?d. How sensitive is this network?e. Identify two sensible milestones and explain your choice.Lar03342_app2_625-641.indd Page 627 2/3/10 9:06:03 PM user-f498Lar03342_app2_625-641.indd Page 627 2/3/10 9:06:03 PM user-f498/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208Appendix 2 Computer Project Exercises 627Include 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 weeks. The estimated duration of theproject is 135 days.Remember: Save your files for future exercises!The following information has been derived from the WBS. Note that the activitynumber is what appears in the software with the complete WBS entered.#*Activity34567910111213151617192021Need surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsQuality metricsQuality trainingMarket testingPackage designSelect distributorsComplete FDA certificationRegister trademarkPrepare product launchDuration20151052030152051530152515515Predecessor(s)None3445, 647, 91011125, 6155, 67, 157, 1513, 16, 17, 19FS 1 25days, 20FS 1 15 daysFS = Finish to Start lagPart 2Remember the old saying, A project plan is not a schedule until resources arecommitted. 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 A2.2.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 overallocationproblems by leveling within slack. What happens?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 overallocationproblems by leveling outside of slack. What happens?Lar03342_app2_625-641.indd Page 628Lar03342_app2_625-641.indd Page 6282/2/102/2/1012:54:22 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:22 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U628 Appendix 2 Computer Project ExercisesTABLE A2.1TABLE A2.2Resources Availabilityand Pay RatesActivityResourcesNeed surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsQuality metricsQuality trainingMarket testingPackage designSelect distributorsComplete FDA certificationRegister trademarkPrepare product launchResource AssignmentsMRKT (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%)ResourceAbbrevAvailableHourly rateMarketing staffR&DEngineeringPurchasingQuality engineersDesignersLegal staffProductionMRKTR&DENGPURCHQUALDESIGNLEGALPROD5510233320$ 80/hr$ 80/hr$100/hr$ 60/hr$ 80/hr$ 60/hr$120/hr$ 60/hrInclude a Gantt chart with the schedule table after leveling outside of slack.Note: No splitting of activities is allowed.Note: No partial assignments (i.e., 50 percent). All resources must be assigned100 percent.Part 3Top management has accepted the July 19th completion schedule created at theend of Part 2. Prepare a brief memo that addresses the following questions:1. How much will the project cost? What is the most expensive activity?2. What does the cash flow statement tell you about how costs are distributed overthe life span of the project?Include a monthly cash flow for the project.Once you are confident that you have the final schedule, save the file as a baseline. Hint: Save a backup file just in case without baseline!Lar03342_app2_625-641.indd Page 629 2/3/10 9:06:03 PM user-f498Lar03342_app2_625-641.indd Page 629 2/3/10 9:06:03 PM user-f498/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208/Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208Appendix 2 Computer Project Exercises 629TABLE A2.3Status ReportMarch 31, 2012ActivityNeed surveySet product specsShelf life reportNutrition reportEquipment rehabActual StartActual FinishActual DurationRemaining Duration1/3/122/3/122/29/123/14/122/29/122/2/122/28/123/13/123/19/12221810423000012Part 4 AAssume that today is March 31, 2012, and Table A2.3 contains the tracking information for the project up till now. Enter this information into your saved baselinefile and prepare a status report for the first three months of the POM1 project.Your status report should also address the following questions:1. How is the project progressing in terms of cost and schedule?2. What activities have gone well? What activities have not gone well?3. What do the PCIB and PCIC indicate in terms of how much of the project hasbeen accomplished to date?4. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?5. Report and interpret the TCPI for the project at this point in time.6. What is the estimated date of completion?7. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include an Earned Value table and a Tracking Gantt Chart.Note: Insert March 31, 2012, as the status date in the Project Information box.Part 4 BAssume that today is May 31, 2012, and Table A2.4 contains the tracking information for the project up till now. Enter this information into your saved baselinefile and prepare a status report for the POM1 project.Your status report should address the following questions:1. How is the project progressing in terms of cost and schedule?2. What activities have gone well? What activities have not gone well?3. What do the PCIB and PCIC indicate in terms of how much of the project hasbeen accomplished to date?4. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?5. Report and interpret the TCPI for the project at this point in time.6. What is the estimated date of completion?7. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include an Earned Value table and a Tracking Gantt Chart.Note: Insert May 31, 2012, as the status date in the Project Information box.Lar03342_app2_625-641.indd Page 630Lar03342_app2_625-641.indd Page 6302/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U630 Appendix 2 Computer Project ExercisesTABLE A2.4Status ReportMay 31, 2012ActivityActual StartNeed surveySet product specsShelf life reportNutrition reportSelect fruit suppliersEquipment rehabProduction trialsQuality trialsMarket testingPackage designSelect distributorsComplete FDAcertificationActual FinishActual DurationRemaining Duration1/3/122/3/122/29/123/14/124/3/122/29/124/17/125/7/124/4/125/10/125/28/122/2/122/28/123/13/123/19/124/30/124/11/125/4/125/31/125/9/125/25/12221810420311418261240000000000185/11/125/31/12140Blue Zuma ProjectThe ARC Company specializes in developing and selling a wide range of high-qualityscooters. Sales representatives report that there is a growing demand for racingscooters. ARCs president, Robin Lane, is excited about the possibilities and predictsthat one day these kinds of razor scooters will be featured in X-Game events. ARC isa small company and uses a strong matrix to optimally utilize limited manpower.The Project Priority Matrix for the Blue Zuma Project is:TimeConstrainEnhanceAcceptScopeCostXXXPart 1You are a member of a project team assigned to develop the new razor scootercode named Blue Zuma. Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following:1. The project begins January 2, 2008.2. The following holidays are observed: January 1, Memorial Day (last Mondayin May), July 4th, Labor Day (first Monday in September), Thanksgiving Day(4th Thursday in November), December 25 and 26.3. 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.4. The project team works eight-hour days, Monday through Friday.Construct a network schedule for this project and prepare a memo that answersthe following questions:1. When is the project estimated to be completed? How long will the project take?2. What is the critical path for the project?Lar03342_app2_625-641.indd Page 631Lar03342_app2_625-641.indd Page 6312/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 631TABLE A2.5 Blue Zuma ProjectIDTask NameDurationPredecessors123Product development projectMarket analysisProduct design25 days40 days245Manufacturing studyProduct design selection20 days10 days23,4678Detailed marketing planManufacturing processDetailed product design15 days30 days50 days555910Test prototypeFinalized product design10 days25 days87,9111213Order componentsOrder production equipmentInstall production equipment7 days14 days35 days14Celebrate101011F-S 1 20 days,12F-S 1 40 days6,131 day3.4.5.6.ResourcesMarketing (4)Marketing (1) Design (4)Development (2) Industrial (1)Purchasing (1)Industrial (4) Development (2)Marketing (2) Design (3)Development (2) Industrial (2)Purchasing (.25)Marketing (4)Design (1) Development (2) Industrial (4)Marketing (2) Design (4)Development (2) Industrial (2) Purchasing (.25)Design (3) Development (2)Marketing (2) Design (3)Development (3) Industrial (2)Purchasing (1)Purchasing (1)Development (3) Industrial (4) Design (1)Development (4) Industrial (4)Design (4) Marketing (4) Purchasing (1)Which activity has the greatest amount of slack?How sensitive is this network?Identify two sensible milestones and explain your choices.Compare the advantages/disadvantages of displaying the schedule as a networkversus a Gantt chart.Include the following printouts:A Gantt chart.A network diagram highlighting the critical path.A schedule table reporting ES, LS, EF, LF, and slack for each activity.Part 2The following personnel have been assigned to the Blue Zuma project team:4 marketing specialists4 design engineers4 development engineers4 industrial engineers1 purchasing agentUse the file from Part 1 and the information contained in Tables A2.5 and A2.6 toassign resources to the project schedule.Lar03342_app2_625-641.indd Page 632Lar03342_app2_625-641.indd Page 6322/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U632 Appendix 2 Computer Project ExercisesTABLE A2.6Blue Zuma ProjectResourcesResourceMarketing specialistDesign engineerDevelopment engineerIndustrial engineerPurchasing agent$/hourNumber Available$60$90$80$70$5044441Part APrepare a memo that addresses the following questions:1. Which if any of the resources are overallocated?2. Which activities involve overallocated resources?3. Assume that the project is time constrained and try to resolve any overallocation problems by leveling within slack. What happens?4. 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.Part BPrepare a memo that addresses the following questions:1. Assume that the project is resource constrained and no additional personnelare available. How long will the project take given the resources assigned? (Hint:Undo leveling performed in Part A before answering this question.)Note: No splitting of activities is allowed.2. How does the new duration compare with the estimated completion date generated from Part 1? What does this tell you about the impact resources can haveon a schedule?Include a Gantt chart with a schedule table depicting the resource-constrainedschedule.Part 3Top management is not happy with the resource-constrained schedule generatedat the end of Part 2. Robin Lane, the president, has promised retailers that production of the new scooters would start on February 1, 2009.1. What options are available to meet this new deadline if the project is not resource constrained?2. What options are available to meet this deadline if the project is resourceconstrained?Dewey Martin, director of product development, has managed to make the following personnel available to work on specific activities on the project. Sincethere is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the new deadline. Your objective is to develop a schedule which will satisfy the deadline with minimum additional resourceusage. The available personnel and impact on activity duration are presented inTable A2.7.Lar03342_app2_625-641.indd Page 633Lar03342_app2_625-641.indd Page 6332/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 633TABLE A2.7Blue Zuma ProjectCrashing OptionsActivityAdditional ResourcesRevised Duration EstimatesDetailed marketing planDetailed product designInstall production equipmentMarketing (2)Design (1) Development (1)Industrial (1) Development (1)10 days42 days27 daysPay rates for additional personnel: Marketing, $70/hour; Design, $100/hour; Development, $90/hour; and Industrial, $80/hour.Prepare a memo that addresses the following questions:1. Which additional personnel assignments would you choose to complete theproject before the February 1st deadline? Explain your choices as well as thereasons for not choosing other options.2. How have these changes affected the sensitivity of the network?Include a Gantt chart with a schedule table presenting the new schedule.Note: You cannot go back and relevel resources. These new resources are onlyavailable for the stated specific tasks according to the schedule created at the endof Part 2.Part 4Robin Lane and top management have approved the schedule generated at theend of Part 3. Save the file containing this schedule as a baseline schedule.Prepare a memo that addresses the following questions:1.2.3.4.How much is the project estimated to cost?What activity is estimated to cost the most to complete?What resource commands the greatest total cost?During which month of the project are the highest and lowest costs expected tooccur? What are those costs?5. What likely costs are not contained in this budget?Include a table containing the estimated costs for each activity and a cash flowschedule for each month of the project.Part 5Todays date is August 16, 2008. Table A2.8 summarizes the information regarding activities accomplished to date.Robin Lane has requested a written status report for the Blue Zuma project.1. Your status report should include a table containing the PV, EV, AC, BAC,EAC, SV, CV, and CPI for each activity and the whole project. The reportshould also address the following questions:TABLE A2.8Blue Zuma ProjectUpdateActivityMarket analysisProduct designManufacturing studyProduct design selectionManufacturing processDetailed product designTest prototypeStart DateFinish DateActual Duration1/2/082/4/083/21/084/23/088/1/085/14/088/1/082/1/083/20/084/22/085/13/08233423151155117/31/088/15/08Remaining Duration25Lar03342_app2_625-641.indd Page 634Lar03342_app2_625-641.indd Page 6342/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/U634 Appendix 2 Computer Project Exercisesa. How is the project progressing in terms of cost and schedule?b. What activities have gone well? What activities have not gone well?c. What do the PCIB and PCIC indicate in terms of how much of the projecthas been accomplished to date?d. What is the forecasted cost at completion (EACf)? What is the predicted VACf ?e. Report and interpret the TCPI for the project at this point in time.f. What is the estimated date of completion?g. How well is the project doing in terms of its priorities?Try to present the above information in a form worthy of consideration by topmanagement.Include a tracking Gantt chart with your report.Note: Enter August 15 as the status report date since you are preparing your report on the 16th.2. While preparing your report you receive a phone call from Jim Keltner, a fellowproject manager. He is calling to see if one of the industrial engineers assignedto your project would be available to work on his project from August 22 to 27,2008. What would you tell him?Part 6Robin Lane has authorized using Management Reserves to expedite the shippingof components at an additional cost of $50,000. She has asked you to updatecompletion and cost estimates for the Blue Zuma project. Table A2.9 presents therevised estimates generated by the Blue Zuma project team.Based on this new information prepare a memo that answers the followingquestions:1. When will the project be completed? How does this compare with the baselinecompletion date?2. What is the new estimated cost at completion (EAC)? What is the new VAC?How does this compare with VAC based on the EACf generated in Part 5?Which of the two VACs would you have the greatest confidence in and why?3. How do you think Robin will react given the priorities for this project?Include a tracking Gantt with a cost table for the estimated completion schedule.TABLE A2.9Blue Zuma ProjectRevised Estimates toCompletionActivityMarket analysisProduct designManufacturing studyProduct design selectionDetailed marketing planManufacturing processDetailed product designTest prototypeFinalized product designOrder componentsOrder production equipment *Install production equipmentCelebrate* Add $50,000 expediting costs.Start DateFinish DateActual Duration1/2/082/4/083/21/084/23/0810/28/088/1/085/14/088/1/089/19/0810/31/0810/17/0812/9/081/23/092/1/083/20/084/22/085/13/0811/24/089/18/067/31/088/15/0810/16/0811/6/0811/3/081/22/091/23/09233423152034551120512301Lar03342_app2_625-641.indd Page 635Lar03342_app2_625-641.indd Page 6352/2/102/2/1012:54:23 AM user-f497 sers/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:212:54:23 AM user-f497/Users/user-f497/Desktop/Tempwork/Fabuary 2010/01:02:10/MHBR165:larson:/UAppendix 2 Computer Project Exercises 635Conveyor Belt ProjectPart 1Project DescriptionThe new computer-controlled conveyor belt is an exciting project that moves andpositions items on the conveyor belt within ,1 millimeter. The project will produce a new system for future installations, and for replacement of those in thefield, at a low cost. The computer-controlled conveyor belt has the potential to bea critical unit in 30 percent of the systems installed in factories. The new system isalso easier to update with future technologies.The Project Priority Matrix for the Conveyor Belt Project (CBP) is:TimeConstrainEnhanceAcceptScopeCost…