A&D HIGH TECH MANAGING SCOPE CHANGE Harvard Case Solution & Analysis

A&D HIGH TECH  MANAGING SCOPE CHANGE Case Study Solution

Problem Diagnosis

A&D High Tech is a US based computer manufacturer and it is looking forward to complete a $25 million project. The sales and the marketing department of the company wants the web based online ordering system to be completed before the beginning of the Thanksgiving season. However, if the project is delayed and it misses the deadline then it will not only cost more resources and money to the company, but the company would also lose useful market share to the competitors.

Three months have passed since the project had began, the previous project manager has been fired and Chris Johnson has been appointed as the interim project manager, to determine the problems with the project, estimate the project completion costs and fix all the problems. Along with this, the scope of the project has also changed as the Vice President of the Marketing Department has introduced additional requirements of promotional bundling.

Thus, the scope of the project needs to be changed and additional changes need to be made to the current activities of the project so that the project is completed before the holiday season or at least before the start of December. The first step is to determine the current cost and the completion time of the project. In the next step, the additional project requirements would be checked and incorporated within the project based on the earned value analysis by extracting the data from MS project. The next step is to reassign the resources and incorporate additional activities associated with the promotional bundle requirement.

Case Analysis

First of all, we determine the current projected cost and the project completion time as of August 26. Earned value analysis would also be performed to determine that whether the project is suffering from the cost overrun problems or the schedule has been missed by the project to complete the project by the agreed date. After this, we change the scope of the project to incorporate the promotional bundles and the tasks associated with this requirement of the online store plan. Apart from this, we will also introduce certain changes to the resources and the time periods of the different activities so that the project is completed by December 1.

Projected Costs and Schedule

The projected costs as of the case date are $ 844,980 approximately and the entire project would be completed by December 15, 2003, which is a total of 127 days. The trend of the earned value analysis shows that there is a small negative cost variance and a much larger negative work variance. The project is lagging in terms of the work that is being performed by the current workers. The critical path of the project lies within the design and development of the ERP interface and this could be seen within the earned value analysis in the MS project file of the specific project. It is explained in the next section below.

Earned Value Analysis

The results of the earned value analysis have been extracted from the MS Project file and the ratio calculations for schedule impact, cost impact and the control ratios are shown in the table below.

A&D HIGH TECH MANAGING SCOPE CHANGE Harvard Case Solution & Analysis

 

 

The data for the actual cost of work performed, budgeted cost of the work performed and the budgeted cost of work scheduled has been extracted from the MS project plan. The earned value analysis for all the parameters of the above there cost measures shows that there is a small negative cost variance and a much larger negative work variance. In simple words, we can state that the project is earning good money and is earning the money that is being spent however; the project is substantially behind the plan. The patterns of the data suggests that the project has minimum or does not have enough staff members to perform the work on the project.....................

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