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 review 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...