Project Management Email

Project Management Email
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Project Management Email
Project 1 – Project Code Name: Juniper
Feasibility study: This project has a low risk of completing it on time and it will cost $325,000 to bring the product to the market. Return on Investment (ROI) is $250,000 per year for 3 years amounts to ROI of $750,000. Computing the break-even analysis shows that it would take one year and three months to get to the point where the costs equal revenues. The life of this product will end in the third year which is rather short.
Five phases:
First phase: project conception and initiation
For this project, the scope and objective is to enhance a current widget that is being provided by the company. The preliminary cost is $325,000 and the preliminary timeline is 6 months; hence if the project commences in January 10, 2015, the completion date will be June 10 2015 – this is also the deliverable. With regard to the benefits of this project, it is expected to have ROI of $250,000 for 2-3 years, and total ROI is $750,000 for 3 years. The recommendation is that the company has to discontinue this project. It should be stopped primarily because its ROI is low compared to the ROI of the other projects. Since the company will not continue with this project, the other four phases of project management are not relevant here.
Project 2 – Project Code Name: Palomino
Feasibility study: the risk of completing this project on time is medium. It will cost $655,000 and the expected ROI is $450,000 per year for five years. The total ROI for the five years is $2,250,000 which is higher than that of Juniper project and Stargazer project. The product will have a lifespan of 7 years which is more than that of Juniper but the same as that of Stargazer. Computing the break even analysis shows that it will take 1 year and 4½ months to get to the point where the costs equal revenues.
Five phases:
First phase: project conception and initiation
For this project, the scope and objective is to develop a new line of widget products including enhancements using existing technology. The project will cost $655,000 and the preliminary timeline is 9 months – the deliverables. The benefit of this project is a forecasted ROI of $450,000 for 5 years which adds up to $2,250,000 for those five years. The recommendation is that the company has to discontinue this project. This project is not as advantageous and profitable for the firm in the long term in comparison to Stargazer project. Since the company will not continue with this project, the other four phases of project management are not relevant here.
Project 3 – Project Code Name: Stargazer
Feasibility study: the risk of completing this project on time is high and will cost $575,000. The ROI for the 1st, 2nd, and 3rd years is forecasted to be $300,000, $550,000, and $750,000 respectively; hence...