Project Management: a Systems Approach to Planning, Scheduling, and Controlling - Essay Example

It is evident that widget products in Juniper would be outdated after three years due to advances in technology. Palomino is forecasted to be in the market for seven years. The new line of widget products will be a significant part of one of the company’s strategic customers. Stargazer is also forecasted to have a product life of seven years, but at a cost for the derivative product.

            A market assessment study indicates that Palomino is the most viable project. One strategic customer, with a 5% margin of error, indicates that the widget products would have a positive response in the market. According to marketers, Juniper is expected to have a positive response in the market. The major problems are that the product will become obsolete after three years and the forecast is subjective to the marketers’ opinions. Stargazer widget products face some doubts among the company’s strategic clients. The market assessment study indicates that Palomino is the most viable project.

            There are five basic phases for successful project management that explain a project’s lifecycle (Kerzner, 2001). They include;

• Project initiation- a project concept arises.
• Project planning- the project’s objectives are laid down.
• Project execution-this stage describes the actual implementation of the project.
• Project performance and management- the project is evaluated at this stage to ensure that it is in line with the set objectives.
• Project closure- the project is terminated after it has successfully completed its objectives.

Juniper has a critical path of six months at a cost of $325,000. The products from this project will become obsolete after three years generating a return on investment of $250,000 for a span of two to three years. The project might be unable to reach its breakeven point over its life span. Palomino has a critical path of nine months at a cost of $655,000. The products from this project will have a stable return on investment of $450,000 for 5 years. The products will honor the company’s wish of generating revenue within 12 months of the PMO Review. Stargazer has no production plan to determine the critical path for the widget products. It is expected to cost $575,000 at the time it is made available to customers. Research and development activities (project execution) have amounted to $450,000 for the project. Although the product is forecasted to have a return on investment of $300,000-year 1, $550,000-year 2, and $750,000-year 3, the breakeven point for this project is not certain.

Piper Industries Corporation should invest in Palomino because it is the most viable among the three projects.