Project Management Essay

First, develop swan survival of the fittest criteria and a high level physical process for mounting the criteria and managing the portfolio. The criteria should be consistent with the trading purlieu for the industry, consistent with your comp anys oerall perpetration/strategies, and consistent with the mission and strategies of your strategic business unit. You ar proposing a process, non individual roves. The deliverable for subroutine 1 is a written final cause for the bemuse woof criteria and a high level exposition of a proposed portfolio management process.You whitethorn as well be expected to make an informal presentation of the writing in class. The proposal should be in the form of a entry to your Vice chair (your instructor) outlining your proposal. The memorandarandum should be no more than 10 pages, including any figures and tables. It should be double-spaced, 10 or 12 item compositors case with one-inch margins. This is a summary for an executive, so be concise, to the point, and leave out the fluff. If you acquiret need 10 pages to document your proposal fully, I am sure that your Vice President go out be happy with little as long as it is complete.Using impound grammar, spelling, punctuation, and sentence building go away be part of your grade. The actual proposal should include the chase 1. A description of the proposed portfolio process. You are explaining it to the executives. 2. The reasons it was trained (tie to strategies as appropriate. ) 3. A description of the proposed plectron criteria. How will the process be applied in your SBU? 4. The method for applying the selection criteria, and the justification for both. How are you going to score the parturiencys and evaluate the scores?This is non a complete project proposal or even a complete status report. You are making a specific proposal to management of a shake off Portfolio Evaluation and Selection Process. wholly reports and memos to executives should include an executive summary at the fetchning. This one is no exception. The tidings of the organization should be limited to how the SBU organization supports projects and the PPM process. It is not necessary to dissertate the total society. Pay attention to the specifics requested in the deliverables. Do non make your memo a list of questions and answers.That is not the way a business memo is written. It is easy to select a process that is presented in a reference but you must propose one that actionings for your SBU. When you think you are finished put yourself in the role of mortal who was not working on the solution and read your presentation. You can tire you know the basics of PPM. Does your presentation provide a good description of the process and how it will be applied? Are there diaphanous questions that it raises that are not answered? This is not a classroom assignment, it is a business memo.Also it is not a research report and you are not trying to demonstra te your academic expertise and how well you are read. Part 2 In Part 1 of the project, the new Vice President (your instructor) of your Strategic Business Unit had asked you to create a portfolio management process and project selection criteria for use by the SBU. It is now cadence to apply this process in selecting this years projects for your portfolio. In the annual calculate cycle, your SBU was allocated $24 cardinal dollars of funding uniformly dole out over the succeeding(prenominal) year for your portfolio.This means you stick out $6 one million million dollars to sp blockade any given quarter. You may select any of the below projects to be include in your portfolio, but you cannot spend more than the allotted dollars allocated to your SBU. Your task is to select those projects, using your selection criteria, that most benefit the overall follow without stupendous you quarterly budget of $6 million dollars. You must also jell out a plan for what quarter your selec ted projects will start in. infra are your possible projects purge Call Center shortly you have no title center to cover up customer complaints or strike orders.Customers must use the internet to fill out an online form to address their complaints or service needs. These forms are processed by employees in your department. Currently the turnaround time on any given form is amongst four to ogdoad hours. This creates a number of other customer complaints. leap out Call Center is designed to reduce this turnaround time by 75% by creating and staffing a call center in Tampa. create acquisition, building renovations, building fit out, IT system upgrades, and hiring and training of staff are estimated to follow $8. 5 million dollars.This $8.5 million dollars can be compensable evenly in any two quarters in the next year. In addition, seven new employees will need to be employ at $40,000 burdened labor costs per year to staff the call center. Management of this project could e asily be done with the current in-house staff. almost of the work of this project would be outsourced and will have minimal wallop on day-to- trading operations. Project Ordering Upgrade Currently ordering process is done online. The software and hardware used in this system are about ten age old. As such, order processing is a long, arduous process for the fifteen individual staff.Upgrading this process to a farming of the art system would cost approximately $2. 5 million dollars, and it is a onetime pay in full internal charge to your SBU. It would also result in a reduction in the fifteen person staff by 7 individuals and reduce order processing time by 50%. Each individual in this department is nonrecreational $35,000 burdened labor costs a year. Most of the work of this project could be done internally with existing staff. One weekend of operations will be shamed by the project in its entirety. Project Rocky The Alaskan sheet ship industry is booming. For some reason, s pate like to look at icebergs.Unfortunately, our company is servicing no cruise ships in Alaska. Project Rocky is to expand into the Alaskan market. This project will require the acquisition of place in Alaska, renovation of that property, and staffing of the facility. This project is seen as a major money maker for the company and has a NPV of $19 million dollars over five age. Its costs would be $13 million dollars to initially set up the project and $400,000 a year to guide the facility. This initial cost can be spread evenly over each of four quarters of the entire year. These initial costs should be recovered within the first two or three years of operation.Most of the work of this project would be outsourced and management of the project would credibly be difficult. Project Europa The Mediterranean cruise ship industry is booming. Unfortunately, our company is servicing no cruise ships in the entire European area. Project Europa is to expand into the Mediterranean market. This project will require the acquisition of property in Italy, renovation of that property, and staffing of the facility. The current governmental overspending and austerity issues may impact this project. However, this project is seen as a major money maker for the company and has a NPV of $15 million dollars over seven years.Its costs would be $11 million dollars to initially set up the project and $500,000 a year to operate the facility. This initial cost can be spread evenly over each of the four quarters of the entire year. These initial costs should be recovered within the first three years of operation. Most of the work of this project would be outsourced and management of the project would be extremely difficult. Project Robot Our key distribution center is in St. Petersburg, Florida. It has a staff of 100 individuals to process the linens for the Florida cruise industry. Automation would spare us to reduce staff by 35 individuals.The average burdened labor costs of each of these individuals is $45,000 dollars a year. The cost of such mechanisation would be in the neighborhood of $17 million dollars. This initial cost can be spread evenly over the entire year. This project would also apt(predicate) disrupt the facility for about 3 months era the work is being done. Upon completion, the newly remodeled facility will be 1/3 smaller allowing our need for warehousing space to be lessen by 1/3. This would allow us to sublet this space for an estimated $2 million dollars a year in revenue. Most of the work of this project would be outsourced.Project Tableware In order to become the provider of woof for the cruise industry, our company needs to expand to more than just linens. A suggestion was made to expand into supplying tableware to the cruise industry, as more than tableware is lost every cruise to breakage. Currently this need is supplied by a number of smaller companies that we could easily compete with. This project would involve creating a Jus t In Time process to receive and supply the cruise ships. It would also involve the need for a minimal warehouse facility. This project is likely to cost $5.5 million dollars and have a NPV of $1 million dollars over five years.All initial costs can be spread over any two quarters of the upcoming year. It would likely take four years to recover the initial costs of this project. It would however cost approximately $300,000 dollars a year to operate this facility. All of the work of this project would be outsourced. Your Assignment Your task is to use your portfolio process to specialise which of the above projects best fit into your portfolio and create a time ground plan by quarters as to when each project selected should begin and be paid for.Once this is accomplished, you need to write an internal memo to your Vice President denoting the projects selected, the time based plan in quarters, and wherefore you chose as you did. The document should be double-spaced, 10 or 12 point font with one inch margins. This is a Recommendation Memo for an executive, so be concise and to the point. If you dont need more than eight pages to document your plan adequately, I am sure that your manager will be happy with it as long as it is complete. The use of appropriate grammar, spelling, punctuation, and sentence structure is part of your grade. Submit This Document to the Dropbox by the end of Week 5.