Project Management

Part “A”

Q.1: As a Project Manager in charge of software development team, what form of organizational structure you recommend to work within to achieve the most effective product delivery system to your clients?

Q.2: How should a PM decide which problems deserve being reported to the top management, and which are not worth the trouble when attempting to “Never Surprise the Boss”?

Q.3: In Matrix form of management, at what stage the PM can release the design architects of his project? And what is the process of doing so?

Q.4: On Matrix management structure, can you suggest any acceptable method of bonus distribution from the profits made that can be divided amongst different departments/teams working with the PM (or responsibility for costs) for a project manager who is responsible for his team’s incentive program?

Part “B”

As a Project Manager, you are assigned to design a project plan for production and marketing of a consumer electronic product, namely A/V Receivers for the US market. Based on the following tasks and assumptions, you are required to develop a plan, identifying all the necessary steps in proper sequence , and strategies you need to adopt, a time-line showing the process to complete a manufacturing process – start to full production phase – and a 5-year financial projections from start of establishing the business, showing the amount of total FUNDS you need to establish and operate this business successfully, showing the best ROI to your management for this venture. Be careful: Some activities can run parallel! and many can not!

Assumptions:

Product: A/V Receiver for home entertainment /home theater use

Selling Price: $500 each

Cost of materials & Components: $100/unit

Direct Labor: 20 Persons, their salary is $5000/month

Full Production rate: 100 Units/day

Working days/Month: 25 days

O/H costs: 15%

Profit Rate: 25%

Rate of Growth for the company: 15% per year

As the production grows, the operating costs will grow with the same rate as well

The initial funding to purchase manufacturing equipment, furniture and other office facilities & remodeling of the leased buildings is = $350,000

List of Tasks (NOT in Proper order!):

Market Research 1 months $8,000

Plan for Business 1 months $12,000

Select Location, Land/Building for manufacturing 5 weeks $7000

Select Office Space for Business 2 weeks $3,000

Strategies/Objectives 1 week $5,000

Installing manufacturing equipment/machineries 2 months $10,000

Order additional equipment/tools/machineries 2 weeks $60,000

Order Office Equipment, Furniture, etc. 1 week $10,000

Design your Product 2 months $20,000

Approvals by Management for Design & Business Plan 2 weeks $8,000

Place order for all Components & Material for Production 3 weeks $15,000

Hire Production crew 3 weeks $10,000

Train the Production Crew 1 week $5,000

Hire Office Staff and setup Management team 2 weeks $8,000

Prepare Manuals for finished products & printing 3 months $15,000

Promotions & Advertising 3 months $85,000

Prepare marketing Materials 2 months $25,000

Select Dealerships 3 months $15,000

Testing the initial batch of Products for QC,

before the mass Production starts: 2 weeks $10,000

1st yr

2nd

3rd

4th

5th

$ mil

time, year