. Change scope. . Outsource technology design. . Use the priority matrix (found in [ Chapter 4) to get top management to clarify their priorities. . Partner with another organization or build a research consortium to share costs and to share the newly developed technology and production methods. . Cancel the project. . Commission a break-even study for the laser printer. Very little in the way of concrete savings was identified, although there was consensus that time could be compressed to the market launch date, but at additional costs. Lauren met with the marketing (Connor), production (Kim), and design (Gage) managers, who yielded some ideas for cutting costs, but nothing significant enough to have a large impact. Gage remarked, "I wouldn't want to be the one to deliver the message to top management that their cost estimate is $1,250,000 off! Good luck, Lauren." 1. At this point, what would you do if you were the project manager? 2. Was top management acting correctly in developing an estimate? 3. What estimating techniques should be used for a mission-critical project such as this?Sharp Printing, AG Three years ago the Sharp Printing {SP} strategic management group set a goal of having a color laser printer available for the consumer and small business market for less than 3200. A few months later the senior management met osite to discuss the new product. The results ofthis meeting were a set ofgeneral technical specications along with major deliverables. a product launch date. and a cost estimate based on prior experience. Shortly afterward a meeting was arranged for middle management explaining the project goals. major responsibilities. project start date. and importance of meeting the product launch date within the cost estimate. Members ofall departments involved attended the meeting. Excitement was high. Although everyone sawthe risks as high. the promised rewards for the company and the personnel were emblazoned in their minds. A few participants questioned the legitimacy ofthe project duration and cost estimates. A couple of R&D people were worried about the technology required to produce the high-quality product for less than $200. But given the excitement ofthe moment. evelyone agreed the project was worth doing and doable. The color laser printer project was to have the highest project priority in the com p a ny. Lauren was selected to be the project manager. She had 15 years of experience in printer design and manufacture. which included successful management of several projects related to printers for commercial markets. Since she was one of those uncomfortable with the project cost and time estimates. she felt getting good bottomup time and cost estimates for the deliverables was her rst concern. She quickly had a meeting with the signicant stakeholders to create a WES identifying the work packages and organization unit responsible for implementing the work packages. Lauren stressed that she wanted time and cost estimates from those who would do the work or were the most knowledgeable. if possible. Getting estimates from more than one source was encouraged. Estimates were due in two weeks. The compiled estimates were placed in the WBSIDBS. The corresponding cost estimate seemed to be in error. The cost m estimate was S|.250.000 over the top~down senior management estimate: this represented about a 20 percent overrun! Furthermore. the bottom-up time estimate based on the project network was four months longer than the top management time estimate. Another meeting was scheduled with the signicant stakeholders to check the estimates and to brainstorm for alternative solutions. At this meeting evelyone agreed the bottomup cost and time estimates appeared to be accurate. Following are some ofthe suggestions from the brainstorming session