Questions
1. When would the project be completed using the normal durations?
2. Is it possible to complete the project in 18 weeks? What would the associated additional cost be? Which activities would need to be completed on a crash basis?
3. Is there some time frame shorter than the 18 weeks Vera has recommended that would make more sense in terms of profits?
The Fantasy Products Company (disguised name) is a manufacturer of high-quality small appliances intended for home use. The company’s current product line includes irons, a small hand-held vacuum, and a number of kitchen appliances such as toasters, blenders, waffle irons, and coffeemakers. Fantasy Products has a strong R&D department that continually searches for ways to improve existing products as well as developing new ones.
Currently, the R&D department is working on the development of a new kitchen appliance that will chill foods quickly much as a microwave oven heats them quickly, although the technology involved is quite different. Tentatively named The Big Chill, the product will initially carry a price tag of around $125, and tire target market consists of upper- income consumers. At this price, it is expected to be a very profitable item. R&D engineers now have a working prototype and are satisfied that, with the cooperation from the production and marketing people, tire product can be ready in time for the all-important Christmas buying season. A target date has been set for product introduction that is 24 weeks away.