Three years ago the Sharp Printing (SP) strategic manage ✓ Solved

Three years ago the Sharp Printing (SP) strategic manage

Three years ago the Sharp Printing (SP) strategic management group set a goal of having a color laser printer available for the consumer and small business market for less than $200. Shortly afterward, a meeting was arranged for middle management explaining the project goals, major responsibilities, the project start date, and importance of meeting the product launch date within the cost estimate. The color laser printer project was to have the highest project priority in the company. Lauren was selected to be the project manager. She had 15 years of experience in printer design and manufacture.

Since Lauren was uncomfortable with the project cost and time estimates, she quickly had a meeting with the significant stakeholders to create a WBS identifying the work packages and organizational unit responsible for implementing the work packages. The cost estimate was $1,250,000 over the senior management estimate; this represents about a 20 percent overrun! The time estimate from the developed project network was only four months over the top management time estimate.

Another meeting was scheduled with the significant stakeholders to check the estimates and to brainstorm for alternative solutions. Suggestions for the brainstorming session included changing scope, outsourcing technology design, using the priority matrix to clarify top management priorities, partnering with another organization, canceling the project, or commissioning a break-even study for the laser printer. At this point, what would you do if you were the project manager?

What estimating techniques should be used for a mission-critical project such as this?

Paper For Above Instructions

Project management is a discipline that relies on careful planning, execution, and monitoring of projects to meet specific goals. In the case of the Sharp Printing (SP) color laser printer project, numerous factors need to be considered, especially given the significant discrepancies between the estimates provided by top management and those derived from middle and operational management. If I were the project manager, Lauren, I would adopt a strategic approach to tackle the challenges presented during the development of this project.

Evaluation of Current Estimates

First, it is essential to acknowledge the importance of accurate cost and time estimates in project management. The initial cost estimate set by senior management was significantly lower than what was later determined. A $1,250,000 overrun represents a critical issue that must be addressed promptly to strategize solutions including potentially altering timelines, project scope, or resources.

One of the first steps to address this discrepancy would be to conduct a thorough analysis of the WBS (Work Breakdown Structure). In this analysis, I would categorize each component of the project, focusing on obtaining detailed estimates based on historical data. Engaging team members with firsthand knowledge of the tasks involved is crucial because they can provide realistic insights into the complexities involved.

Team Collaboration and Brainstorming

Another essential aspect is fostering collaboration among team members involved in different departments (production, marketing, design, etc). I will organize workshops to brainstorm potential ways to mitigate costs while preserving the integrity and quality of the product. Outsourcing specific components or collaborating with other organizations to share the cost of technology and expertise are two viable options. These solutions can often lead to innovative approaches that align with project goals.

Estimation Techniques for Critical Projects

Considering the critical nature of this project, it's also important to employ robust estimating techniques. Techniques such as Parametric Estimating could be useful, as they utilize historical data to establish cost and time expectations for components of the project. A more detailed approach known as Three-Point Estimating can also be utilized, where the project manager calculates the average of optimistic, pessimistic, and most likely estimates to reach a more reliable estimate.

Communication with Senior Management

In addition, I recognize the importance of transparent communication with senior management regarding the overrun. It is vital to present a well-researched analysis that underscores why the original estimates fell short. Rather than simply stating the numbers, I would seek to explain the dynamics that contributed to the estimate variances, leveraging data to support the findings.

Prioritizing Product Quality

Ultimately, while maintaining a focus on cost and time efficiency is important, a balance must be achieved with quality. Underestimating project costs can lead to rushed production and compromised product quality, potentially harming the company's reputation in the long term. Engaging with team leaders like Connor (marketing), Kim (production) and Gage (design) should yield ways to refine processes that enhance productivity without compromising on quality.

Concluding Thoughts

In conclusion, as the project manager of the SP color laser printer, a multifaceted approach must be adopted in dealing with budget overrun and timeline challenges. By fostering collaboration amongst team members, employing reliable estimating techniques, prioritizing transparent communication with senior management, and ultimately keeping the product quality in focus, the project can adapt dynamically to its challenges. The cumulative insights from team members will be invaluable in steering the project towards success.

References

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