Project management - Macrosoft

Macrosoft, a local software company, has recently started work on a new video game player (the Zbox 400) that has great sales potential. Managers at Macrosoft have just learned that a competitor (whose logo is a fruit) may be coming out with a competing video game player. In response, Macrosoft president Cody Parker has decided that Macrosoft should try to complete the development, production, and distribution of their new video player to meet or beat their competitor's schedule (if possible).

There are four non-overlapping phases left to complete the development and production of the new video game player, including the remaining research that currently is being conducted at a normal pace (but could be changed to a "priority" or "crash" pace). The remaining three phases can be conducted at a "priority" or "crash" level to expedite completion. The times required (in months) at these various levels are given below:

T I M E

Remaining Design of Initiate production

Level Research Development Video Player & Distribution

Normal 5 - - -

Priority 4 3 5 2

Crash 2 2 3 1

A total of $10M is available to complete the work on the video game player. The cost (in millions of dollars) at the different levels is given below:

C O S T

Remaining Design of Initiate production

Level Research Development Video Player & Distribution

Normal 1 - - -

Priority 2 2 3 1

Crash 3 3 4 2

Managers at Macrosoft must determine which level to conduct each of the four phases to minimize the time to market their new video game player (subject to the budget restriction, of course). What action would you recommend to Cody Parker? Support your answer.

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