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Dear Project Manager: We have three project proposals to consider in next week's Project Management Office's (PMO) Review. Piper Industries Corp. needs the projects to be complete and to be generating revenue within 12 months of next week's PMO Review. Wendell Deirelein, our vice-president, has assigned your team to analyze the three projects below and make a recommendation on which project the company should invest in. The recommendation must include your team description of the five phases of the project and the key deliverables (project completion date and cost) for each project. Project Code Name: Juniper This is an enhancement of a current widget being offered by our company.Risk of completion of this project on time is low.Product plan shows the critical path to be 6 months at a cost of $325,000 to bring the product to market.Product is forecasted to have a ROI of $250,000 for a period of 2 to 3 years.The third year is forecasted to be the end of life for this product line due to advances projected in technology.This is a standard product line that marketing believes many customers will want to purchase.Project Code Name: Palomino This is a new line of widget products including enhancements using existing technology.Risk for completion of this project on time is medium.Production plan shows the critical path to be 9 months at a cost of $655,000 to bring the product to market.Product is forecasted to have a ROI of $450,000 for a period of 5 years.This product will be a custom part for one of your strategic customers-historically the forecasts from this customer have a 5% margin of error.The seventh year is forecasted to be the end of life for this product by the customer.Project Code Name: Stargazer Research and development has already started on our new widgets. The company has spent $450,000 on this product so far and the estimate to bring this product to market is $575,000.Risk of completing this project on time is high.Product is forecasted to have ROI of $300,000 first year; $550,000 the second year; and $750,000 the third year. The product life is forecasted to be 7 years for this product. (This forecast included derivative product which will cost more).By delivering such an innovative product to the market place first, your organization will be seen as a leader in this industry.Your sales and marketing teams have discussed this type of product with a few of your strategic customers; while some are interested, there are many questions about the business. Sincerely, Ray GritschPiper Industries Corporation
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