Project Management Email Paper

In: Business and Management

Submitted By nycbabe41
Words 374
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Project Management Email
March 21, 2016

Project Management Email
To: Wendell Deirelein/Vice President of Operation Management
From: Team Operation Intel
Date: March 21, 2016
Re: Piper Industries Corporation
Mr. Deirelein as per your request Team Operation Intel has proposed the following recommendation in regards to the three projects and have provided the information that you have requested along with the completion date and cost for each project. The recommendation is listed below:
Project Juniper:
Schedule Risk: Low
Cost: $325000
Durations to completion: 6 months
ROI: $250,000 yearly for 2 years total = $ 500,000
Project life: 2-3 years
* Product can be executed. * Risk is manageable * Forecasting risk is low. * Product breakeven is around 1.3 years. Breakeven cost = Cost/ROI= 325000/250000= 1.3 years. * Meets client requirement of product launch in next 12 months.
Cons: Company’s future at risk as product life is only 2-3 years.
Recommendation: Sustainability is not ensured so not recommended.
Project Stargazer:
Schedule Risk: Very High
Cost: $ 1025000
Durations to completion: More than 1year
ROI: ROI of $300,000 first year; $550,000 the second year; and $750,000 the third year.
ROI total = $ 1600 000
Project life: 7 years
* Product is futuristic
* Risk is high * Forecasting has high variance. * Product breakeven is around 2.23 year’s years. ROI for first 2 years = 850000 and another 175000 of cost component will require 0.23 years of the third year. * Does not meet client requirement of product launch in next 12 months.
Recommendation: Although a sunk cost is involved but investing further has no guarantee of returns and also the product timelines don’t meet the client’s schedule. Need high level analysis for making any investment decision.
Project Palomino:…...

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