The ARC Company specializes in developing and selling a wide range of high-quality scooters. Sales representatives report that there is a growing demand for racing scooters. ARCs president, Robin Lane, is excited about the possibilities and predicts that one day these kinds of razor scooters will be featured in X-Game events. ARC is a small company and uses a strong matrix to optimally utilize limited manpower. The Project Priority Matrix for the Red Zuma Project is:

You are a member of a project team assigned to develop the new razor scooter code named Red Zuma. Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following:

1. The project begins January 2, 2015.

2. The following holidays are observed: January 1, Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November), December 25.

3. If a holiday falls on a Saturday, then Friday will be given as an extra day off, and if it falls on a Sunday, then Monday will be given as a day off. If December 25th falls on a Friday then Monday will not be given a day off.

4. The project team works eight-hour days, Monday through Friday

Completed table A2.5

TABLE 1

ID	Task Name	Duration	Predecessors	ES	EF	LS	LF	SLACK (LS-ES)	CRITICAL ACTIVITY
1	1 Red Zuma Project	260
2	1.1 Market Analysis	25		0	25	0	25	0	Y
3	1.2 Product Design	30	2	25	55	25	55	0	Y
4	1.3 Manufacturing Study	20	2	25	45	35	55	10	N
5	1.4 Product Design Selection	10	3, 4	55	65	55	65	0	Y
6	1.5 Detailed Marketing Plan	15	5	65	80	244	259	179	N
7	1.6 Manufacturing Process	30	5	65	95	120	150	55	N
8	1.7 Detailed Product Design	45	5	65	110	65	110	0	Y
9	1.8 Build Prototypes	25	8	110	135	110	135	0	Y
10	1.9 Lab Test Prototypes	10	9	135	145	140	150	5	N
11	1.10 Field Test Prototypes	15	9	135	150	135	150	0	Y
12	1.11 Finalized Product Design	20	7,10,11	150	170	150	170	0	Y
13	1.12 Final Manufacturing Process	10	12	170	180	170	180	0	Y
14	1.13 Order Components	7	12	170	177	197	224	27	N
15	1.14 Order Production Equipment	14	13	180	194	180	224	0	Y
16	1.15 Install Production Equipment	35	14FS+20 days, 15FS+30 days	224	259	224	259	0	Y
17	1.16 Celebrate	1	6, 16	259	260	259	260	0	Y

The project will be completed on 8th January, 2016

The project will be completed on 8th January, 2016

Based on the TABLE 1, the Critical path is 2,3,5,8,9,11,12,13,15,16,17 (activities with 0 slack)

Based on Table 1: The activity that has the greatest amount of slack is Activity 6:"1.5 Detailed Marketing Plan" with a Slack of 179 days

4. When the project has multiple critical paths then the project is considered Sensitive whereas, when there is only one critical path, and other activities have Slack, then the project is considered insensitive, Hence, this project is insensitive

The following personnel have been assigned full-time to the Red Zuma project team:

4 marketing specialists

4 design engineers

4 development engineers

4 industrial engineers

4 test riders

2 purchasing agent

Use the file from Part 1 and the information contained in Tables A2.6 and A2.7 to assign resources to the project schedule.

Table A2.6

Red Zuma: Project Resources

		$		Number Available
Marketing specialist		$80.000yr		4
Design Engineer		$125.000yr		4
Development Engineer		$110.000yr		4
Industrial Engineer		$100.000yr		4
Purchasing Agent		$75.000yr		2
Test Rider		&75.00hr		4

Note: MS Project considers resources in terms of percentages with one full-time worker being 100%.

TABLE A2.7 Red Zuma Resource Assignments

Task Name	Resources Names
Red Zuma Project
Market Analysis	Marketing Specialist [400%]
Product Design	Marketing Specialist, Design Engineer [400%], Development Engineer [200%], Industrial Engineer, Purchasing Agent
Manufacturing Study	Industrial Engineer [400%], Development Engineer [200%]
Product Design Selection	Marketing Specialist [200%], Design Engineer [300%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%]
Detailed Marketing Plan	Marketing Specialist [400%]
Manufacturing Process	Design Engineer, Development Engineer [200%], Industrial Engineer [300%]
Detailed Product Design	Marketing Specialist [200%], Design Engineer [400%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%]
Build Prototypes	Design Engineer [200%], Development Engineer [200%], Industrial Engineer [400%]
Lab Test Prototypes	Design Engineer [200%], Development Engineer [200%], Test Rider
Field Tests	Marketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider [300%]
Finalized Product Design	Marketing Specialist [200%], Design Engineer [300%], Development Engineer [300%], Industrial Engineer [200%], Purchasing Agent [25%]
Final Manufacturing Process	Industrial Engineer [300%], Design Engineer, Purchasing Agent [25%]
Order Components	Purchasing Agent
Order Production Equipment	Purchasing Agent
Install Production Equipment	Design Engineer, Development Engineer [300%], Industrial Engineer [400%]
Celebration	Design Engineer [400%], Development Engineer [400%], Industrial Engineer [400%], Marketing Specialist [400%], Purchasing Agent [200%]

Note: Resource assignments without brackets are 100%.

2.a. Which if any of the resources are overallocated?

Base on Gantt chart, some activities which supported by overallocated resource may involve on this subject such as detailed marketingplans, detailed product design and install product equipment.

Part 3

Top management is not happy with the resource-constrained schedule. Robin Lane, the president, has promised retailers that ARC will begin production in time for the major trade show in Las Vegas on January 22, 2016, which means the project needs to be completed by January 17, 2016. She has authorized working the first available Saturday of each month to help the project get completed sooner. She realizes that this will only reduce the project duration by 1213 days. After talking to the engineers, everyone agrees that they do not have to wait for the Detailed Product Design to be 100% completed before starting to build the prototype. The consensus is that Building the Prototype can start 30 days after the start of the Detailed Product Design. Likewise, the Final Manufacturing Process can start 15 days after the start of Finalized Product Design.

Dewey Martin, director of product development, is also willing to add personnel to the project. He is willing to make available at least one more Development, Design, and/or Industrial Engineer to the project as well as Marketing Specialist. Since there is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the deadline. Your objective is to develop a schedule which will satisfy the deadline with minimum additional resource usage.

3.a. How much will the project cost? What is the most expensive activity?

3.b. Include a monthly cash flow for the project.