Assignment 1 - Case Study: Gadget Toy Company

Kumar, project manager at Gadget Toy Company (Gadget), had just submitted a proposal for funding to the new product review committee. He recommended that Gadget introduce, through its retail distribution network, a new children's toy based on a popular cartoon character. Kumar felt that if he could get the product out by Christmas, Gadget could take advantage of what he felt would be strong market demand. He estimated that the sales could reach $200,000. However, due to the volatility of the market for these types of games, Kumar could not be certain that the product would have the same level of market acceptance the following year. It was now May 6, 2019, and Kumar knew he would have to manage the timing of the project carefully to meet the delivery date of September 13th, 2019 just 19 weeks away. Gadget's head office was in Klang, Selangor, where it also operated a manufacturing plant and distribution center. Whenever possible, Gadget preferred to manufacture its products in-house. Kumar expected feedback from the committee the end of the week, at which time he would begin coordinating the launch of the project. Since Kumar was an experienced project manager, he established a preliminary list of activities, as shown in Exhibit 1. Based on his schedule, Kumar felt he could start work on some activities immediately, such as finalizing the product design and placing an order for the equipment. However, many of the activities had to be performed sequentially. For example, he could not train the workers until the equipment was installed and the tools for the machine were completed. Similarly, he could not order the raw material until the engineering work was complete and the advertising plan was completed, since the advertising plan would influence colour selection. Concerned about the delivery schedule, Kumar investigated opportunities to cut the project time. After talking with the marketing manager, Sheila, Kumar learned that he could reduce product advertising. Sheila anticipated only a small 1% reduction in sales for each week of lost advertising. However, she indicated that Kumar could not get away with less than six weeks of advertising for a new product of this nature. Kumar also spoke with Steven, the production manager at the tool shop. Steven offered to speed up the tool build by working two weekends, for a total cost of $10,000. Steven thought he could improve their delivery time by two weeks if Kumar authorized this extra cost.

QUESTIONS:

1. Prepare the network diagram for the above project. How long will it take to complete the project?

2. Establish the 'float' or 'slack' times for each activity.

3. Based on the information in the case study, evaluate the options Kumar can do to meet the September 15th deadline. What is your recommendation?

EXHIBIT 1: ACTIVITIES NEEDED FOR NEW PRODUCT INTRODUCTION Activity Description Immediate Predecessor Estimated Time [weeks] obtain funding approval 82 finalize engineering A C3 deliver now equipment A D4 build digi/took 12 ES install equipment C F 6 train workon D. E 1 do bug proces establish advertising plan A 19 finalice package and art H 2 work J 10 Odvertise 12 KII raw material delivery D. I 2 L 12 Initial production run 3 M 13 ship product J.L 1 "End of Asdanment"