Part 3 Page 648 Top management has accepted the schedule created at the end 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 over the 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. Part A D Today's date is July 8, 2015, the milestone date for the completion of the Prototype. You are charged with preparing a status report for top management. Table A2.8 summarizes progress on the Red Zuma project. TABLE A2.8 Red Zuma Project Update Task Name Act. Start Act. Finish % Comp. Phys. % Comp. Act. Dur. Rem. Dur. 1 1 Red Zuma Fri 1/9/15 NA 46% 0% 125.85 days 146.4 days 2 1.1 Market Analysis Fri 1/9/15 Thu 2/12/15 100% 096 25 days o days 3 1.2 Product Design Fri 2/13/15 Wed 4/1/15 100% 096 35 days o days 4 1.3 Manufacturing Study Fri 2/13/15 Fri 3/6/15 100% 09 16 days o days 5 1.4 Product Design Selection Thu 4/2/15 Fri 4/17/15 100% 096 13 days o days 6 1.5 Detailed Marketing Plan NA NA 0% 096 o days 15 days 7 1.6 Manufacturing Process NA NA 0% 0% o days 30 days 8 1.7 Detailed Product Design Mon 4/20/15 Wed 6/24/15 100% 096 49 days o days 9 1.8 Build Prototypes Wed 6/10/15 NA 39% 096 9 days 14 days 10 1.9 Lab Test Prototypes NA NA 0% 09 o days 10 days 11 1.10 Field Test Prototypes NA NA 0% 096 o days 15 days 12 1.11 Finalized Product Design NA NA 0% 096 o days 20 days 13 1.12 Final Manufacturing Process NA NA 0% 096 o days 10 days 14 1.13 Order Components NA NA 0% 096 o days 7 days 15 1.14 Order Production Equipment NA NA 0% 096 o days 14 days 16 1.15 Install Production Equipment NA NA 0% 09 o days 35 days 17 1.16 Celebrate NA NA 0% 0% o days 1 days Submit a professional status report to Robin Lane that addresses 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. How much of the project has been accomplished (PCIB)? 4. What is the forecasted cost at completion (EAC)? 5. What is the estimated completion date? 6. How is the project doing in terms of priorities (see Part 1)? Report and interpret relevant Earned Value metrics in your report. Include a Tracking Gantt chart as well as an Earned Value Table with your memo. Part B You have told Robin Lane that based on what you know now you need to revise the estimates for some of the Page 649 remaining activities. Finalized Product Design is expected to take 3 days longer than planned. Final Manufacturing Process is expected to take 2 days less than planned, while Install Production Equipment is now expected to take only 30 days. You also report that Detailed Marketing plan will be completed before the end of the New Year. She is insisting that the project be completed by January 17th in order to be ready for the Las Vegas show. She is willing to spend $50,000 from Management Reserves to expedite shipping if necessary. $25,000 would reduce the shipping of components by 5 days and/or $25,000 would reduce the shipping of manufacturing parts by 5 days (Hint: Adjust lag). Prepare a memo to Robin that addresses the following questions: 1. What is the impact of the revised estimates for Finalized Product Design and Install Production Equipment on the project schedule and cost? 2. Would you recommend authorizing the expenditure of $50,000? Explain. 3. What, if any other recommendations, would you make so that the project can achieve Robin's deadline? Justify your recommendations. Part 3 Page 648 Top management has accepted the schedule created at the end 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 over the 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. Part A D Today's date is July 8, 2015, the milestone date for the completion of the Prototype. You are charged with preparing a status report for top management. Table A2.8 summarizes progress on the Red Zuma project. TABLE A2.8 Red Zuma Project Update Task Name Act. Start Act. Finish % Comp. Phys. % Comp. Act. Dur. Rem. Dur. 1 1 Red Zuma Fri 1/9/15 NA 46% 0% 125.85 days 146.4 days 2 1.1 Market Analysis Fri 1/9/15 Thu 2/12/15 100% 096 25 days o days 3 1.2 Product Design Fri 2/13/15 Wed 4/1/15 100% 096 35 days o days 4 1.3 Manufacturing Study Fri 2/13/15 Fri 3/6/15 100% 09 16 days o days 5 1.4 Product Design Selection Thu 4/2/15 Fri 4/17/15 100% 096 13 days o days 6 1.5 Detailed Marketing Plan NA NA 0% 096 o days 15 days 7 1.6 Manufacturing Process NA NA 0% 0% o days 30 days 8 1.7 Detailed Product Design Mon 4/20/15 Wed 6/24/15 100% 096 49 days o days 9 1.8 Build Prototypes Wed 6/10/15 NA 39% 096 9 days 14 days 10 1.9 Lab Test Prototypes NA NA 0% 09 o days 10 days 11 1.10 Field Test Prototypes NA NA 0% 096 o days 15 days 12 1.11 Finalized Product Design NA NA 0% 096 o days 20 days 13 1.12 Final Manufacturing Process NA NA 0% 096 o days 10 days 14 1.13 Order Components NA NA 0% 096 o days 7 days 15 1.14 Order Production Equipment NA NA 0% 096 o days 14 days 16 1.15 Install Production Equipment NA NA 0% 09 o days 35 days 17 1.16 Celebrate NA NA 0% 0% o days 1 days Submit a professional status report to Robin Lane that addresses 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. How much of the project has been accomplished (PCIB)? 4. What is the forecasted cost at completion (EAC)? 5. What is the estimated completion date? 6. How is the project doing in terms of priorities (see Part 1)? Report and interpret relevant Earned Value metrics in your report. Include a Tracking Gantt chart as well as an Earned Value Table with your memo. Part B You have told Robin Lane that based on what you know now you need to revise the estimates for some of the Page 649 remaining activities. Finalized Product Design is expected to take 3 days longer than planned. Final Manufacturing Process is expected to take 2 days less than planned, while Install Production Equipment is now expected to take only 30 days. You also report that Detailed Marketing plan will be completed before the end of the New Year. She is insisting that the project be completed by January 17th in order to be ready for the Las Vegas show. She is willing to spend $50,000 from Management Reserves to expedite shipping if necessary. $25,000 would reduce the shipping of components by 5 days and/or $25,000 would reduce the shipping of manufacturing parts by 5 days (Hint: Adjust lag). Prepare a memo to Robin that addresses the following questions: 1. What is the impact of the revised estimates for Finalized Product Design and Install Production Equipment on the project schedule and cost? 2. Would you recommend authorizing the expenditure of $50,000? Explain. 3. What, if any other recommendations, would you make so that the project can achieve Robin's deadline? Justify your recommendations