The POM+ Project\" Big Kola Company has been concerned that specialized fruit drinks have been eroding their cola market. The CEO mandates that "If you can't beat them. join them.\" Grape juice was the rst product that was successful after an advertising blitz claiming the antitoxin benets. Lately, competition is compressing grape juice margins and prots. Months of additional market surveys and focus groups have resulted in three potential high-margin drinks: cranberry. blueberry, and pomegranate. All these choices represent antitoxins. The decision is to produce the pomegranate drink that has many health claims. For example. the relative ability of these juices to eliminate harmful free radicals (antito'xins) is 7'1 percent for pomegranate. 33 percent for blueberry, and 20 percent for cranberry (Technion Institute of Tech nology). The market potential appears very attractive and should have a higher prot margin than the other potential juice products. Another appeal for pomegranate juice is its familiarity in the Middle East and Asia. The Priority Matrix for the POM+ Project is: Time Scope Cast Chintnin X Enhance X Accent X Connor Gage, the project manager, has formed his project team and the members have come up with the following work breakdown structure. 1.0 POM+ Project 1.1 R&D product development 1.1.1 Need survey 1.1.2 Set product specs 1.1.3 Shelf life report 1.1.4 Nutrition report 1.2 Secure fruit suppliers 1.3 Initial production 1.3.1 Equipment rehab 1.3.2 Production trials 1.3.3 Quality trials 1.3.4 Quality metrics 1.3.5 Quality training 1.4 Distribution 1.4.1 Market testing 1.4.2 Package design 1.4.3 Select distributors 1.5 Legal 1.5.] Complete FDA certication 1.5 .2 Register trademark 1.6 Prepare product launch Part 1 1. Develop the WBS outline using the software available (save your file). 2. Use this file and the information provided below to create a project schedule. 3. 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 and 26. 4. 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 off. 5. The project team works eight-hour days, Monday through Friday. 6. The project will begin on January 3, 2012. 7. Based on this schedule, submit a memo that answers the following questions: a. When is the project estimated to be completed? How many working days will it take? b. What is the critical path? c. Which activity has the most total slack? d. How sensitive is this network? e. Identify two sensible milestones and explain your choice. Include the following (one page) printouts: . A Gantt chart. . A network diagram highlighting the critical path. . A schedule table reporting ES, LS, EF, LF, and slack for each activity. Hint: Change the timescale to months and weeks. The estimated duration of the project is 135 days. Remember: Save your files for future exercises! The following information has been derived from the WBS. Note that the activity number is what appears in the software with the complete WBS entered. Activity Duration Predecessor(s) 3 Need survey 20 None Set product specs 15 5 Shelf life report 10 Nutrition report 5 4 Select fruit suppliers 20 5. Equipment rehab 30 4 10 Production trials 15 7. 9 11 Quality trials 20 10 12 Quality metrics un 11 13 Quality training 15 12 15 Market testing 30 5.6 16 Package design 15 15 17 Select distributors 25 5.6 19 Complete FDA certification 15 7. 15 20 Register trademark un 7, 15 21 Prepare product launch 15 13, 16, 17, 19FS + 25 days, 20FS + 15 days FS = Finish to Start lag.Part 2 Remember the old saying, "A project plan is not a schedule until resources are committed." This exercise illustrates this sometime subtle, but important point. Using your files from Part 1, input resources and their costs if you have not already done so. All information is found in & Tables A2.1 and 4 A2.2. Prepare a memo that addresses the following questions: TABLE A2.1 Resource Assignments Activity Resources Need survey MRKT (500%) Set product specs R&D (400%). MRKT (200%) Shelf life report R&D (300%) Nutrition report R&D (300%) Select fruit suppliers PURCH (100%) Equipment rehab ENG (1,000%). PROD (2.000%) Production trials PROD (1,500%), PURCH (100%), ENG (1,000%) Quality trials QUAL (300%), PROD (500%) Quality metrics QUAL (300%), PROD (100%) Quality training QUAL (300%). PROD (1,500%) Market testing MRKT (500%) Package design DESIGN (300%). MRKT (100%) Select distributors MRKT (500%) Complete FDA certification LEGAL (300%) Register trademark LEGAL (300%) Prepare product launch QUAL (300%). PURCH (200%), PROD (1,500%), MRKT (500%), ENG (500%), R&D (100%) TABLE A2.2 Resources Availability and Pay Rates Resource Abbrev Available Hourly rate Marketing staff MRKT 5 $ 80/hr R&D R&D 5 $ 80/hr Engineering ENG 10 $ 100/hr Purchasing PURCH 2 $ 60/hr Quality engineers QUAL 3 $ 80/hr Designers DESIGN 3 6 60/hr Legal staff LEGAL $ 120/hr Production PROD 20 $ 60/hr 1. Which if any of the resources are overallocated? 2. Assume that the project is time constrained and try to resolve any overallocation problems by leveling within slack. What happens? 3. What is the impact of leveling within slack on the sensitivity of the network? Include a Gantt chart with the schedule table after leveling within slack. 4. Assume the project is resource constrained and resolve any overallocation problems by leveling outside of slack. What happens? Include a Gantt chart with the schedule table after leveling outside of slack. Note: No splitting of activities is allowed. Note: No partial assignments (e.g., 50 percent). All resources must be assigned 100 percent.Part 3 Top management has accepted the July 19th completion 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. Hint: Save a backup file just in case without baseline!POM+ Project Part 4 Part 4A: Assume that today is March 31, 2012 and Table A2.3 contains the tracking information for the project up until now. Enter this information into your saved baseline file and prepare a status report for the first three months of the POM+ project. YLE #13 Slum \"on .'II'II 31. 2012 m man man chlllnlull- nun-In. MI- Need m mm mm 22 0 sum w 213\": mm: I: 0 mm mm 2mm mm: I0 0 Nun-mm 3mm 3mm 4 0 mm. mm: 2.1 I2 Your status report should also address the following questions: [\"4 5. 6. 7. How is the project progressing in terms of cost and schedule? What activities have gone well? What activities have not gone well? What do the PCIB and PCIC indicate in terms of how much of the project has been accomplished to date? What is the forecasted cost at completion (EAC)? What is the predicted variance at completion {VAC}? Report and interpret the TCPI for the project at this point in time What is the estimated date of completion? How well is the project doing in terms of its priorities? Try to present the above information in a form worthy of consideration by top management. Include an Earned Value table and a Tracking Gantt Chart. Note: Be sure to use March 31, 2012 as the status date in the Project Information box. Part 4B: Assume that today is May 31, 2012 and Table A2.4 contains the tracking information for the project up until now. Enter this information into your saved baseline file and prepare a status report for the POM+ project. TABLE A2.4 Status Report May 31, 2012 Activity Actual Start Actual Finish Actual Duration Remaining Duration Need survey 1/3/12 2/2/12 22 0 Set product specs 2/3/12 2/28/12 18 0 Shelf life report 2/29/12 3/13/12 10 Nutrition report 3/14/12 3/19/12 Select fruit suppliers 4/3/12 4/30/12 20 Equipment rehab 2/29/12 4/11/12 31 Production trials 4/17/12 5/4/12 Quality trials 5/7/1 3/31/12 Market testing 4/4/12 5/9/12 26 Package design s/orl 5/25/12 Select distributors 5/28/12 Complete FDA certification 5/11/12 5/31/12 Your status report should also address 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. What do the PCIB and PCIC indicate in terms of how much of the project has been accomplished to date? 4. What is the forecasted cost at completion (EAC)? What is the predicted variance at completion (VAC)? 5. Report and interpret the TCPI for the project at this point in time 6. What is the estimated date of completion? 7. How well is the project doing in terms of its priorities? Try to present the above information in a form worthy of consideration by top management. Include an Earned Value table and a Tracking Gantt Chart. Note: Be sure to use May 31, 2012 as the status date in the Project Information box