Safe_n_Sound': Project 2 Status Report May 2ndProject SummaryProject 2 will produce an update model of our best-selling 'Safe_n_Sound' in house 'safe room' product. This updatemodel was requested by the marketing department to meet a market need for enhanced security and increased comfortand to allow us to hold and grow our market share as competitors launch their latest high comfortable 'safe room'models.The marketing department believe the potential for the updated model of this product for the company is in the regionof $40 million profit annually if it can be produced at a cost of $30,000 and sold for $45,000 (a price point marketing hassaid our competitors cannot compete against). Should we delay and not update the model they believe we are likely tolose $10, 000 profit annually until our product is no longer a viable product for the market place within four years.The budgeted cost for the project is $1,000,000

Project Deliverables and milestones

Project Specifications (Marketing Department product requirements) March 10

High Level Design (Engineering) April 1

1st Pass Model (Project Team) April 15

Field Test 1 May 1

2nd Pass Model (Project Team) May 15

Field Test 2 June 1

Project Review and Closure June 15

Major Issues and their impact

None to date

SPI: 1.01

CPI: 0.9

ETC: $720,000

Change Requests

Accepted: None to date

Open: Request to reduce the project deadline by two weeks to allow for launch at a new trade show in Las Vegas, allowing for a bump in advance sales and taking market share from our competitors. This change request will cost us an additional $100,000 in project costs.

Risks

Risk One: Reduce the project deadline by two weeks to allow for launch at a new trade show in Las Vegas, allowing for a bump in advance sales and taking market share from our competitors in the region of $1,000,000.

Response: Hire additional personnel for development and trade show launch at a cost of an additional $100,000 to the project - needs management approval.

1. Explain the importance of status reporting
2. How to proceed with each project, and