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    Case Study4 - The Sharp Printing AG

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    deepthi jacob
    The project goal was to build a color laser printer for less than $200 but the bottom-up cost estimate came out to be $1,250,000 over budget. The project manager should present the detailed WBS and cost estimates to management and suggest that the product may not be possible at the target price point given the increased production costs. Key risks include going over budget, missing the launch price, and failing to be profitable. The project's feasibility needs to be re-evaluated.

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    Case Study4 - The Sharp Printing AG

    Uploaded by

    deepthi jacob
    600 views10 pages
    The project goal was to build a color laser printer for less than $200 but the bottom-up cost estimate came out to be $1,250,000 over budget. The project manager should present the detailed WBS and cost estimates to management and suggest that the product may not be possible at the target price point given the increased production costs. Key risks include going over budget, missing the launch price, and failing to be profitable. The project's feasibility needs to be re-evaluated.

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    Case Study4- The Sharp Printing AG

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    The project goal was to build a color laser printer for less than $200 but the bottom-up cost estimate came out to be $1,250,000 over budget. The project manager should present the detailed WBS and cost estimates to management and suggest that the product may not be possible at the target price point given the increased production costs. Key risks include going over budget, missing the launch price, and failing to be profitable. The project's feasibility needs to be re-evaluated.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    600 views10 pages

    Case Study4 - The Sharp Printing AG

    Uploaded by

    deepthi jacob
    The project goal was to build a color laser printer for less than $200 but the bottom-up cost estimate came out to be $1,250,000 over budget. The project manager should present the detailed WBS and cost estimates to management and suggest that the product may not be possible at the target price point given the increased production costs. Key risks include going over budget, missing the launch price, and failing to be profitable. The project's feasibility needs to be re-evaluated.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Sharp Printing AG Case Study

    Project Manager: Lauren

    GOAL: Build a color laser printer less than $200.


    • Creating a WBS identifying the work packages and organizational unit responsible for implementing
    the work packages
    • Identified by Bottom-Up Estimates :
    • The cost estimate was $1,250,000 over the top-down senior management estimate -  20 percent overrun!
    • the bottom-up time estimate based on the project network was four months longer than the top management
    time estimate. 
     Brainstorming summary(Suggestion) :
    • Change scope. 
    • Outsource technology design. 
    •  Use the priority matrix to get top management to clarify their priorities. 
    •  Partner with another organization or build a research consortium to share costs and to share the newly developed
    technology and production methods. 
    •  Cancel the project. 
    •  Commission a break-even study for the laser printer. 
    Is this project viable?
    No -  
    • The aim was to build a color laser printer with cost less than $200. 
    • But the cost estimate from Bottom-up management was $1,250,000 over the initial cost estimation. 
    • This massive difference is identified During the multiple meetings with different stakeholders.
    What should the PM (Lauren) do, consider her vast experience in
    making a decision?

    Raising a red flag to the management.


    Presenting a detail WBS structure to the management.
    Describe the cost estimate done by bottom up estimate
    Display extended deadlines to the management
    Let management know that the product will not be available for 200$
    After the meeting come up with a new project scope and schedule for the project.
    What kind of risks are most significant in this project?

    Time Frame.
    Cost Estimates
    Failure to meet launch price less than $200 due to increase cost of production.
    Quality issues associated with the product in order to meet time frame and launch price.
    Failure to make any profit with this project
    What is the right way to estimate the cost of the project?
     Cost Management Plan : need to estimate the actual level of precision and
    accuracy for the project
     Quality Management Plan : need to identify the actual activities and resources
    required for the team to attain the quality.
     Prepare the proper Scope Baseline : Need to provide the project scope
    statement with the detailed funding constraints for the project expenditure
     Prepare a proper WBS – which gives the relationship among all project
    deliverables and their various constraints
     Risk Register : need to prepare the detailed description of Risk factors which
    are identified and Risk responses also mandatory
     Choose the appropriate Cost Estimation Tool / Technique to proceed with the
    cost estimation.
    Estimation technique ?
    Bottom –up
     Template Methods
    Estimation  Parametric
     Range Estimating
    Condition
     Cost and Time Important
     Fixed Price
     Customer wants details

     The bottom-up approach -

     Check on cost elements in the WBS


     Resource requirements can be checked.
     Time, resource, and cost estimates can be consolidated into time-phased networks, resource schedules, and
    budgets that are used for control.
     Reconcile the differences between the top-down estimates and bottom up estimates
    In what ways can you think the project can be made successful?

    Proper project estimation.

    Accurate time and cost management.

    Identify R&D work and execute it with priority.

    Feasibility Study

    Deliver the expected business value and return on investment.

    Flexible action steps that respond to risk


    Breakeven projection for the project

    Since we are dealing with


    technological product which
    planned to sell for a low cost, it is
    important to produce it for a
    reasonable quantity and it is
    important to provide a value for a
    money product unless it will not be
    successful in the long run.

    Cost Associated with Project


    - Fixed Cost
    - Variable Cost
    Project feasibility ?

    Continue Scrap
    … …

     Whole idea of making a printer


     Priority should be set with management
    available within $200 is not possible
     Cost Estimates to be revised
    due to increased cost of production and
     Time frame to be updated
    new time frames
    External Environment :PESTLE ANALYSIS

    • Tax Policies • Budget availability


    • Import and export taxes • Population • Employment law
    • Interest rates • Technical
    demographi • Health and safety • Climate and weather
    • Economic growth or constraints
    cs (age, laws conditions
    recession • Automation
    gender, • Regulatory • Geographical location
    • Inflation rate • Research and
    mobility frameworks • Natural disasters
    • Exchange rate development
    etc.)
    • Minimum wage

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