Project Management Recommendation

Week 5 Project Management Recommendation

OPS/571 Operations Management

University of Phoenix

January 14, 2015

Week 5 Project Management Recommendation

Dear Mr. Gritsch,

I want to thank Piper Industries Corporate vice-president, Wendell Deirelein, for giving me the opportunity to analyze your new project considerations. Here you will find an analysis and recommendations of the Project Proposal that I know would benefit more your company. After careful consideration I feel it is in the company’s best interest to move forward with the Stargazer project.

The company has stated that it needs a completed project and for it to be generating revenue within 12 months of the Project Management Office’s (PMO) review (University of Phoenix, 2012). My recommendation is that Piper Industries Corporation goes with the Stargazer project because it fits the company’s requirements. The estimation of completing the project on time is high. But with that said, research and development have already started on the widgets (University of Phoenix, 2012). Per the company requirements, the Stargazer project is forecasted to have a return on investment of $300,000 the first year. The money spent on this project is more than the first year’s revenue. The company will not breakeven in year one, but in year two Piper Industries is estimated to pull in $275,000, in revenue. The company will be delivering an innovative product to the market place first; Piper Industries will be a leader in the industry. The product life of this project is forecasted to be seven years (University of Phoenix, 2012).

There are five phases that have been designed in order for a project to be successful. The first phase is project conception and initiation. This is where the company decides on what project they will go with and which will benefit them (Jacobs & Chase 2011). For example, Piper Industries decides to go with the team’s recommendation of the Stargazer project. The company will...