Product Management Recommendation - Essay Example

Dear Gritsch, After a careful evaluation of the three projects, we recommend that Piper Industries Corp. proceeds with project Stargazer. Our recommendation is based on a number of factors. For one, the organization has already invested heavily on the project. The amount remaining for the project to be completed is far less than the amounts that projects Juniper and Palomino require for their successful completion. Secondly, it is evident that Stargazer has a high rate of return (278%) compared to its counterparts, Juniper and (0.77) Palomino (68%).

Thirdly, the project is worth implementing considering that it has a long life cycle (seven years) which means that the company will probably reap more from it, beyond the time used for the forcast. While the project may cost more in the long run, the benefits it will give the company in respect of reputation and brand strength greatly outweigh the costs. While the project is associated with higher risk, the benefits of its success far outweigh these risks. What’s more, the project, like all the others is associated with a short payback period approximated at one year at the most.

The five main phases of a project include initiation, planning, execution, control, and closing.From our analysis, we realize that the project is technically and economically feasible given that it has a high rate of return and can be completed in time with good planning. We anticipate that in three years, the project will bring a return of roughly $1600,000 with the investment of an extra $125,000. For the project to be ready for business in good time, it should be completed set up and running by March 20, 2015.

To beat this deadline, the project team which includes engineers, designers, financial analysts, and technicians need to get to serious business on November 23, 2014. The procurement department will have ordered all the necessary items before this date in readiness for the project launch. The project manager and supervisors will work together in evaluating the progress of the project. They will track the level of completion of the project, the resources used, and the income generated against the original budget, estimates, and forecasts.

The project manager will make adjustments to the schedules as will be necessary. At the end of the project lifecycle in March December 2021, the success or failure of the project will be established. The project will be deemed to be a success if it draws a return of at least $3,800,000 at a maximum total cost of $775,000. Sincerely,Joseph xxxxx.Projects Coordinator.