Project Pomegranate Juice – Part-1

Project Pomegranate Juice – Part-1

In developing the exercises, trade-offs had to be made to enrich the learning experience. One of the major problems students initially encounter is data and detail overload. This reduces their ability to identify project and data problems and to compare alternatives. Although the project found in the exercises is real, it has been reduced and detail has been eliminated many times to concentrate on applying p roject management principles and understanding linkages. In addition, other simplifying assumptions have been made so that students and instructors can trace problems and discuss outcomes. These assumptions detract from reality, but they keep the focus on the objectives of the exercises and reduce student frustration with software i ntricacies. Moving from these exercises to real projects is primarily one of increasing detail. The simplifying assumptions are given below (make sure they are included in “default,” “preferences,” and/or “options” sections of the software used):

Big Kola Company has been concerned that specialized fruit drinks have been eroding their cola market. The CEO mandates that “If you can’t beat them, join them.” Grape juice was the first product that was successful after an advertising blitz claiming the antitoxin benefits. Lately, competition is compressing grape juice margins and profits. Months of additional market surveys and focus groups have resulted in three potential high-margin drinks: cranberry, blueberry, and pomegranate. All these choices represent antitoxins. The decision is to produce the pomegranate drink that has many health claims. For example, the relative ability of these juices to eliminate harmful free radicals (antitoxins) is 71 percent for pomegranate, 33 percent for blueberry, and 20 percent for cranberry (Technion Institute of Technology). The market potential appears very attractive and should have a higher profit margin than the other potential juice products. Another appeal for pomegranate juice is its familiarity in the Middle East and Asia. The Priority Matrix for the POM1 Project is:

	Time	Scope	Cost
Constrain			X
Enhance		X
Accept	X

* Cliff Gray, Erik Larson, & Pinyarat Sirisomboonsuk, doctoral candidate at Rawls College of Business, Texas Tech University.

625

626 Appendix 2 Computer Project Exercises

Connor Gage, the project manager, has formed his project team and the members have come up with the following work breakdown structure.

1.0 POM1Project

1.1 R&D product development

1.1.1 Need survey

1.1.2 Set product specs

1.1.3 Shelf life report

1.1.4 Nutrition report

1.2 Secure fruit suppliers

1.3 Initial Production

1.3.1 Equipment rehab

1.3.2 Production trials

1.3.3 Quality trials

1.3.4 Quality metrics

1.3.5 Quality training

1.4 Distribution

1.4.1 Market testing

1.4.2 Package design

1.4.3 Select distributors

1.5 Legal

1.5.1 Complete FDA certification

1.5.2 Register trademark

1.6 Prepare product launch

Part 1

Develop the WBS outline using the software available (save your file).

Use this file and the information provided below to create a project schedule.

The following holidays are observed: January 1, Martin Luther King Day (third Monday in January), Memorial Day (last Monday in May), July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in November), December 25 and 26.

If a holiday falls on a Saturday then Friday will be given as an extra day off, and if it falls on a Sunday then Monday will be given off.

The project team works eight-hour days, Monday through Friday.

The project will begin on January 3, 2012.

Based on this schedule, submit a memo that answers the following questions:

W hen is the project estimated to be completed? How many working days will it take?

What is the critical path?

Which activity has the most total slack?

How sensitive is this network?

Identify two sensible milestones and explain your choice.

Appendix 2 Computer Project Exercises 627

Include the following (one page) printouts:

A Gantt chart.

A network diagram highlighting the critical path.

A schedule table reporting ES, LS, EF, LF, and slack for each activity.

Hints: Change the timescale to months and weeks. The estimated duration of the project is 135 days.

Remember: Save your files for future exercises!

The following information has been derived from the WBS. Note that the activity number is what appears in the software with the complete WBS entered.