Sharp Printing, AG case study
Read through the Sharp Printing, AG case found in chapter 5 of the textbook. This case refers to Lauren, an experienced employee who is assigned as the project manager to the project at hand. According to the WBS, the estimate on this project was increasingly over budget. In preparation for a meeting with stakeholders, Lauren brainstormed suggestions to resolve some of the estimates originally compiled.
Decide what you would do if you were the project manager on this project. Identify which suggestions offered were supportive to the end result of the project. Sharp Printing, AG case study.
Answer the corresponding questions provided at the end of the case (500-750 words). Use references from the reading materials to support your response.
APA format is not required, but solid academic writing is expected.
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Case Study “Sharp Printing, AG”
1.1.At this point what would you do if you were the project manager?
1.2. Was top management acting correctly in developing an estimate?
1.3. What estimating techniques should be used for a mission critical project such as this?
Abstract
This report is focused on answering the key questions from the case “Sharp Printing, AG”. The organization needed to acquaint a color laser printer with buyers and organizations for under $200. The top administration chose with real deliverables, item dispatch dates and evaluated expenses of the whole venture based on their experience. Meeting with the center level administration was booked where every one of the particulars and venture points of interest were given out. Lauren was picked as the task administrator of the undertaking who was cynic of the high danger of the venture. An estimation of the whole venture was attempted to choose the objectivity of the top administration. The results of the evaluations were that the expense were 5125.000, 20% over the normal cost and time required was additionally 4 months more than anticipated to assemble the innovation Sharp Printing, AG case study.
Introduction of the case
Lauren was chosen to be the project administrator of a task of actualizing a color laser printer for customer and business market at a sensible cost. However there were issues in expense and time estimates. Contextual investigation is about what requirements to done by the undertaking supervisor to conquer this issue.
At this point what would you do if you were the project manager?
The present state is that the laser printer is a prominent, key undertaking to build income. Time to market is imperative. It is sensible to expect the base up appraisal is more precise than the underlying macro estimate. If I were a project manager, I would use the priority matrix in order to help the top administration to develop clear priorities. Time is considered as one of the significant factors as the color printer is a technology where a short delay could cause the rivals to introduce the same product with particularly low price that could make the whole project valueless. Hence, the time to market would be focused on. On the other hand, performance is considered to be the critical factors in developing the product that also has reasonable quality. Hence, it is significant to offer the value for money for the item except the product will be unsuccessful in the long time period. Another area of the priority matrix is the cost. This factor is due to the fact that the estimate showed that the price has already amplified than the estimate of the senior management where the efforts of cost cutting which included talking with the design, production and marketing administrators were not capable of creating the great impact. Hence, time is considered as the important factor while performance is also needed, so the only choice that we have to admit is increased costs.
In addition to this, I would also plan a meeting with the senior administration in order to explain the priority matrix while getting the consent to augment the cost. At the similar period, I would take certain decisions in order to change the scope of the project where necessary. I would observe whether producing within the organization or outsourcing technology can decrease the issue of cost. On the other hand, I will also conduct the break even analysis with the different estimated cost in order to get know whether the company could attain the full profit which the senior managers expected. I would also use the work breakdown structure which would better assess the risks connected with the cost and time of the project while inspiring the use time phased budget when conducting the estimations. Lastly, I would also conduct a meeting with the project team in order to entail them the revised budget estimate as well as revised work breakdown structure. I would also get their feedback about the revisions. In case the project team becomes satisfied with the revised plan, I would continue the project and also license the project.
Was top management acting correctly in developing an estimate?
Based on the analysis of the situation, it seemed that the senior administration has made the judgment call by relying on the faulty and inaccurate information. The project is known not a noteworthy leap forward in the business. Determinations, including the cost appraisal, were set up exclusively in light of their related knowledge. There was insufficient thought in building up an estimate. Both sides neglected to achieve an agreement on their evaluations. There was additionally miscommunication between top administrations. They have utilized macro estimate which are just adequate to organize ventures, yet not for the precise task gauge. Top administration was as well “blinded” with the “guaranteed rewards”. The promising figure for evaluations was plainly improbable.
What estimating techniques should be used for a mission critical project such as this?
In spite of the fact that it is anything but difficult to propose assessing down to the work package level, there are mission basic activities where time is basic and expense must be precisely controlled. If the printer costs the company excessively, the company might not be capable for selling it for no more than $200 without losing cash. As this project includes the elements which both estimating techniques are utilized in, the company must utilize both bottom-up and top-down methods in order to determine the necessities. A top-down method which must be utilized is the consensus methodology. This method utilizes the past experiences of senior management in order to give a rough knowledge about the time and cost which the project might entail. Sharp Printing, AG case study, On the other hand, additional useful top-down methodology is the function point’s method. This method offers an enhanced in-depth look at the single deliverables as well as the difficulty included in accomplishing them.
Other methods such as apportionment and ratio methods must not be used for the mission critical projects. This is because these methods tend to rely largely on the information from previous projects. As mission critical projects involve exploiting something which is never done beforehand (Assante et al., 2013), information and data from previous projects would result in a flawed estimate.
SHARP PRINTING CASE STUDY
At this point, what would you do if you were the project manager?
Performing a detailed and in-depth analysis so that different constraints and risks are identified. This helps the project manager to clearly understand and analyze the situation in the most effective manner.
Another relevant option from the viewpoint of the project manager is to arrange a meeting with the top management. This would help in identifying the company priorities specific to the project. The different constraints associated with the project could be discussed collectively in the presence of top management so that approval can be obtained and clarifications can be made regarding major decisions. Sharp Printing, AG case study.
As per discussion with the top management, fresh and better efficient project scope can be prepared so that actions can be taken as per plan and probabilities of positive results are boosted.
Was top management acting correctly in developing an estimate?
The estimates prepared were not accurate because the formulated estimates about the cost and time was more than that estimated by the top management. The top management has already fixed figures for time and cost. As the estimates generated were more than that of the top management’s figures, they need to be revised.
Top managements effectiveness in making the estimates were not excellent in a sense that it had variations. Further measures should be taken to generate a more effective estimate with proper strategies to improve the efficiency of data analysis Sharp Printing, AG case study.
What estimating techniques should be used for a mission critical project such as this?
Two kinds of estimation techniques can be used in this case:
Time Estimating
Cost Estimating
The different techniques that can be used to perform Time Estimation are:
Project Evaluation Review Technique (PERT) – This technique helps analyze different tasks and steps involved in a project and give time estimation with better accuracy and reliability.
Three point estimate technique – Taking three scenarios to get assumptions on project activity and the time taken.
Top down estimation – Involving senior management to get a time based estimation of the project.
Bottom up estimation – Involving the workforce to get a time based estimation.
The different techniques that can be used to perform Cost estimation are:
Top down estimation – Involving information from top management and using historical data to obtain cost estimation.
Bottom up estimation – Using the sum of individual costs obtained from estimates of individual department costs.
Three points estimation technique – using the three estimates – optimistic, pessimistic and normal estimates to determine the cost involved.
Use of software – Using various software tools to estimates costs involved Sharp Printing, AG case study