The ARC Company Specializes in Developing

ARC Company

Answer of The ARC Company Specializes in Developing in $9 Only

The ARC Company specializes in developing and selling a wide range of high-quality scooters. Sales representatives report that there is a growing demand for racing scooters. ARC’s president, Robin Lane, is excited about the possibilities and predicts that one day these kinds of razor scooters will be featured in X-Game events. ARC is a small company and uses a strong matrix to optimally utilize limited manpower. The Project Priority Matrix for the Red Zuma Project is:

You are a member of a project team assigned to develop the new razor scooter code named “Red Zuma.” Table A2.5 contains the information necessary to create a project schedule. For the purpose of this case assume the following:

1. The project begins January 2, 2015.

2. The following holidays are observed: January 1, Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November), December 25.

3. If a holiday falls on a Saturday, then Friday will be given as an extra day off, and if it falls on a Sunday, then Monday will be given as a day off. If December 25th falls on a Friday then Monday will not be given a day off.

4. The project team works eight-hour days, Monday through Friday

Completed table A2.5TABLE 1IDTask NameDurationPredecessorsESEFLSLFSLACK (LS-ES)CRITICAL ACTIVITY11 Red Zuma Project26021.1 Market Analysis250250250Y31.2 Product Design302255525550Y41.3 Manufacturing Study2022545355510N51.4 Product Design Selection103, 4556555650Y61.5 Detailed Marketing Plan1556580244259179N71.6 Manufacturing Process305659512015055N81.7 Detailed Product Design45565110651100Y91.8 Build Prototypes2581101351101350Y101.9 Lab Test Prototypes1091351451401505N111.10 Field Test Prototypes1591351501351500Y121.11 Finalized Product Design207,10,111501701501700Y131.12 Final Manufacturing Process10121701801701800Y141.13 Order Components71217017719722427N151.14 Order Production Equipment14131801941802240Y161.15 Install Production Equipment3514FS+20 days, 15FS+30 days2242592242590Y171.16 Celebrate16, 162592602592600Y
The project will be completed on 8th January, 2016
The project will take a year and 6 days to complete.Based on the TABLE 1, the Critical path is 2,3,5,8,9,11,12,13,15,16,17 (activities with 0 slack)

Based on Table 1: The activity that has the greatest amount of slack is Activity 6:”1.5 Detailed Marketing Plan” with a Slack of 179 days

4. When the project has multiple critical paths then the project is considered Sensitive whereas, when there is only one critical path, and other activities have Slack, then the project is considered insensitive, Hence, this project is insensitive

The following personnel have been assigned full-time to the Red Zuma project team:

4 marketing specialists

4 design engineers

4 development engineers

4 industrial engineers

4 test riders

2 purchasing agent

Use the file from Part 1 and the information contained in Tables A2.6 and A2.7 to assign resources to the project schedule.

Table A2.6

Red Zuma: Project Resources

$Number Available
Marketing specialist$80.000yr4
Design Engineer$125.000yr4
Development Engineer$110.000yr4
Industrial Engineer$100.000yr4
Purchasing Agent$75.000yr2
Test Rider&75.00hr4

Note: MS Project considers resources in terms of percentages with one full-time worker being 100%.

TABLE A2.7 Red Zuma Resource Assignments

Task NameResources Names
Red Zuma Project
Market AnalysisMarketing Specialist [400%]
Product DesignMarketing Specialist, Design Engineer [400%], Development Engineer [200%], Industrial Engineer, Purchasing Agent
Manufacturing StudyIndustrial Engineer [400%], Development Engineer [200%]
Product Design SelectionMarketing Specialist [200%], Design Engineer [300%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%]
Detailed Marketing PlanMarketing Specialist [400%]
Manufacturing ProcessDesign Engineer, Development Engineer [200%], Industrial Engineer [300%]
Detailed Product DesignMarketing Specialist [200%], Design Engineer [400%], Development Engineer [200%], Industrial Engineer [200%], Purchasing Agent [25%]
Build PrototypesDesign Engineer [200%], Development Engineer [200%], Industrial Engineer [400%]
Lab Test PrototypesDesign Engineer [200%], Development Engineer [200%], Test Rider
Field TestsMarketing Specialist, Design Engineer [200%], Development Engineer, Industrial Engineer, Test Rider [300%]
Finalized Product DesignMarketing Specialist [200%], Design Engineer [300%], Development Engineer [300%], Industrial Engineer [200%], Purchasing Agent [25%]
Final Manufacturing ProcessIndustrial Engineer [300%], Design Engineer, Purchasing Agent [25%]
Order ComponentsPurchasing Agent
Order Production EquipmentPurchasing Agent
Install Production EquipmentDesign Engineer, Development Engineer [300%], Industrial Engineer [400%]
CelebrationDesign Engineer [400%], Development Engineer [400%], Industrial Engineer [400%], Marketing Specialist [400%], Purchasing Agent [200%]

Note: Resource assignments without brackets are 100%.

Prepare a memo that addresses the following questions:

1. Which if any of the resources are over allocated?

2. Assume that the project is time constrained and try to resolve any over allocation problems by leveling within slack. What happens?

3. What is the impact of leveling within slack on the sensitivity of the network? Include a Gantt chart with the schedule table after leveling within slack.

4. Assume that the project is resource constrained and no additional personnel are available. How long will the project take given the resources assigned? (Hint: Undo leveling performed in Part A before answering this question.)

Note: No splitting of activities is allowed.

5. How does the new duration compare with the estimated completion date generated from Part 1? What does this tell you about the impact resources can have on a schedule?

Include a Gantt chart with a schedule table displaying free and total slack depicting the resource-constrained schedule.

Part B

Top management is not happy with the resource-constrained schedule. Robin Lane, the president, has promised retailers that ARC will begin production in time for the major trade show in Las Vegas on January 22, 2016, which means the project needs to be completed by January 17, 2016. She has authorized working the first available Saturday of each month to help the project get completed sooner. She realizes that this will only reduce the project duration by 12–13 days.

After talking to the engineers, everyone agrees that they do not have to wait for the Detailed Product Design to be 100% completed before starting to build the prototype. The consensus is that Building the Prototype can start 30 days after the start of the Detailed Product Design. Likewise the Final Manufacturing Process can start 15 days after the start of Finalized Product Design.

Dewey Martin, director of product development, is also willing to add personnel to the project. He is willing to make available at least one more Development, Design, and/or Industrial Engineer to the project as well as Marketing Specialist. Since there is an acute shortage of personnel at ARC he requests that you only use additional manpower that will help meet the deadline. Your objective is to develop a schedule which will satisfy the deadline with minimum additional resource usage. Prepare a memo that addresses the following

1. What was the impact of introducing Start-to-Start lags to the schedule and budget?

2. Which, if any additional personnel assignments, would you choose to complete the project before the January 17th deadline? Explain your choices as well as the reasons for not choosing other options.

3. How have these changes affected the sensitivity of the network and the critical path?

Include a Gantt chart with a schedule table displaying free and total slack for the new schedule.

Note: Do not assign new personnel to specific tasks; simply add them to the Re- source Sheet. All new personnel are available full time (100%).

At first glance—this appears to be a very complicated, difficult assignment, but if you enter the information correctly, the computer is able to generate the answers with a few simple clicks

Part 3

Top management has accepted the schedule created at the end of Part 2.

Prepare a brief memo that addresses the following questions:

1. How much will the project cost? What is the most expensive activity?

2. What does the cash flow statement tell you about how costs are distributed over the life span of the project?

Include a monthly cash flow for the project

. Once you are confident that you have the final schedule, save the file as a baseline. Hint: Save a backup file just in case without baseline!

Part 4

Part A

Today’s date is July 8, 2015, the milestone date for the completion of the Prototype. You are charged with preparing a status report for top management. Table A2.8 summarizes progress

on the Red Zuma project:

Submit a professional status report to Robin Lane that addresses the following questions:

1. How is the project progressing in terms of cost and schedule?

2. What activities have gone well? What activities have not gone well?

3. How much of the project has been accomplished (PCIB)?

4. What is the forecasted cost at completion (EACf)?

5. What is the estimated completion date?

6. How is the project doing in terms of priorities (see Part 1)?

Report and interpret relevant Earned Value metrics in your report.

Include a Tracking Gantt chart as well as an Earned Value Table with your memo.

TABLE A2.8 Red Zuma Project Update

Task NameAct. StartAct Finish% CompPhys%Comp.Act Dur.Rem. Dur.
1 Red ZumaFri 1/9/15N/A46%0%125.85 days146.6 days
1.1 Market AnalysisFri 1/9/15Thur 2/12/15100%0%25days0 days
1.2 Product DesignFri 2/13/15Wed 4/1/15100%0%35 days0 days
1.3 Manuf. StudyFri 2/13/15Fri 3/6/15100%0%16 days0 days
1.4 Pro Des. Sel.Thu 4/2/15Fri 4/17/15100%0%13 days0 days
1.5 Detailed Mark. PlanN/AN/A0%0%0 days15 days
1.6 Manuf. ProcessN/AN/A0%0%0 days30 days
1.7 Det. Prod. DesignMon 4/20/15Wed 6/24/15100%049 days14 days
1.8 Build PrototypeWed 6/10/15N/A39%0%9 days14 days
1.9 Lab Test PrototypesN/AN/A0%0%0 days10 days
1.10 Field Test PrototypeN/AN/A0%0%0 days15 days
1.11 Finalized Prod DesignN/AN/A0%0%0 days20 days
1.12 Final Manuf. ProcessN/AN/A0%0%0 days10 days
1.13 Order ComponentsN/AN/A0%0%0 days7 days
1.14 Order production EquipN/AN/A0%0%0 days14 days
1.15 Install Production EquipN/AN/A0%0%0 days35 days
1.16 CelebrateN/AN/A0%0%0 days1 days

Part B

You have told Robin Lane that based on what you know now you need to revise the estimates for some of the remaining activities. Detailed Product Design is expected to take 3 days longer than planned. Build Prototypes is expected to take 2 days less than planned and Finalized Product Design is expected to take 3 days longer than planned. Final Manufacturing Process is expected to take 2 days less than planned, while Install Production Equipment is now expected to take only 30 days. You also report that Detailed Marketing plan will be completed before the end of the New Year. She is insisting that the project be completed by January 17th in order to be ready for the Las Vegas show. She is willing to spend $50,000 from Management Reserves to expedite shipping if necessary. $25,000 would reduce the shipping of components by 5 days and/or $25,000 would reduce the shipping of manufacturing parts by 5 days (Hint: Adjust lag). Prepare a memo to Robin that addresses the following questions:

1. What is the impact of the revised estimates for Finalized Product Design and Install    Production Equipment on the project schedule and cost?

2. Would you recommend authorizing the expenditure of $50,000? Explain.

3. What, if any other recommendations, would you make so that the project can achieve Robin’s deadline? Justify your recommendations.

Include a Tracking Gantt chart with variance schedule that depicts your final recommendations and revised schedule.

Hint: After adjusting the Installation of Production Equipment and Finalized Product Design, level outside of slack to eliminate any resource over allocation problems.

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