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A&D High Tech

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Dima Sabeh Aion

on 9 March 2014

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Transcript of A&D High Tech

Managing Projects for Success
A&D High Tech
The Company
A&D High Tech. is a computer product firm which used to mainly operate by selling its products through retail stores in shopping malls and through phone orders.
Due to loss of market share, A&D decided to penetrate new markets and attract customers through Internet sales.
The project, which was to build a customized program from scratch, was to be completed by December 24, 2006.

First, we entered the data regarding each task into Excel sheets.
Second, we calculated EFT and LFT for all activities.
Then, we computed the slack for each activity in order to find out which activities are critical.
Finally, we entered the information into Microsoft Project and obtained a Gantt chart, to make sure that our results match what we found using Excel; resources consumption was taken into consideration, and project was leveled.
Option 1
Option 3
Task duration can be reduced by adding resources.
Task duration = Estimate/number of resources

Project duration = 123 days (or 127 after the project leveling)
Project would be completed ahead of schedule
Leveling Analysis
Thank You!
Critical Factors
We have to keep in mind that the company's main advantage over its competitors is its differentiated friendly customer service.
The project's duration and scope are critical for the project's success.

Estimates of task duration are accurate.
Number of resources used not taken into consideration.

Project duration =540 days
Project will not finish on time, and therefore it will fail.
Negative cost and schedule variances, as well as a cost performance and a schedule performances indexes that are less than 1
Option 2
Project duration time will lie somewhere in between the values presented in options 1 and 2 given that we add some additional resources

Currently not possible to predict with certainty how the extra resources will affect the tasks’ durations.
Critical paths is composed of 17 activities (total of 37 critical activities with the addition of critical sub activities)
High level of risk for the project not to be completed on time
Risk Management
Step 1
Step 2
Step 3
Step 4
It is recommended that A&D buys off-the-shelf software instead of going through the process of building it.
123 days of completing the project seems unfeasible, furthermore not to forget the fact that out of 59 activities 37 are critical (meaning if one of the activities is delayed this would delay the entire project as critical activities have a slack of zero).
The risk factor turned out to be 91.25% which according to the rule of thumb is extremely risky and the project should not be undertaken.

Changes in business requirements
Changes in process flows
Physical infrastructure
Project WBS
Task estimates
Project resources
Project scheduling

Due Date: Finishing the project by the Christmas vacation
The Geneva Contractor: Getting accurate estimation to avoid additional time and costs.
Maintenance of the ERP system.

Qualitative Method
Due Date: Medium likelihood of finishing after Christmas
The Geneva Contractor: High likelihood of incorrect/incomplete
estimates of resources
ERP system: Medium likelihood of occurrence of riskiness in maintenance
Inaccurate estimation of physical infrastructure: Low likelihood of occurrence
Incomplete WBS: Medium likelihood (will affect time constraints of project completion).
Change in process flow: Low likelihood (changes will add cost).
Incomplete Prototype: Medium likelihood (will result in some changes in the WBS and resource allocations).
Two of the risks might significantly impact and affect the project's completion date:
The maintenance of the ERP interface
Incomplete identification of the actual resources needed

Time constraint ---> add some reserves

Leveling helps us to:
Identify the requirements of each resource
Make sure that everything is efficiently working in its right place
It allows smoother switches between activities when using same resources
Leveling will always increase the project’s duration.

Activity 1.3.1 was increased by 4 days and overall duration also increased
Due date: 14th of November had changed to the 19th of November

Add a project buffer, set completion date on15th of December
Full transcript