Project Juniper
The project is clearly at the initiation stage (Reiss, 2007). The risk profile for this project is lowest. It is likely to be complete in six months and making a profit within one year – one of the deliverables of this project analysis. Although investing in this project does not serve the company’s long-term needs, because technology will render it obsolete, it is a profit-making investment.
I would rather make profits then invest a another project in three years because, in comparison, the project that will last a long time does not look long-term – 7 years is not much. These actions and thoughts are clearly the first two steps of Project Management – initiation and planning (Schwalbe, 2012).
Project Palomino
The project is better than Juniper on two major fronts. First, it caters to the company’s long-term needs as it employs existing technology. Second, the Return on Investment (ROI) is also higher though with higher overall investment (Jacobs & Chase, 2011). Ana analysis of budget and time reveals that I would prefer Juniper to Palomino. Additionally, the risk profile is greater which may compromise implementation necessary risk mitigation techniques are not employed (Jacobs & Chase, 2011).
The critical path is the longest route in a network diagram that indicates the time the project will take. It is hard to construct a network diagram for a project with complex times and huge budgets but the availability of software for that purpose makes it easy. In this project, the techniques may be useful to the project manager in evaluating the progress of the project.
Project Stargazer
This project’s recommendation of getting to the deep end of the swimming pool is too risky. Bringing in a new innovative product to the market requires too much investment in the analysis of the project (Jacobs & Chase, 2011). Hence, the cost of analysis, which is not reflected in the description, may take up any profits that the company is likely to make in the first month. Making profits in the first month is one of the deliverables of this project.
The forecasted product life of 7 years is quite appealing but risky too. However, this project, is successful, may set the company apart from the others. The management will be happy for been the innovative house. Customers will appreciate the company’s innovativeness, which they will reciprocate with trust. Hence, the future may look so bright for the company (Jacobs & Chase, 2011).
Recommendation
In light of key deliverables – profits within the first year, time, and budget – Project Stargazer is the riskiest. The budgets are high and the possibility of non-completion quite high too. However, I would recommend the project for implementation stage (Jacobs & Chase, 2011). The initiation and planning stages take up quite some investment in budget. The stages are also quite speculative. Implementation is likely to reveal greater loopholes.
The company will be investing in more than just this project because the future of the company as an innovation house will be guaranteed. Its NPV is greatest and its payback period second best. Although the budgets are almost double the other two projects, Project Stargazer’s benefits far outweigh the budgetary thinking. This project’s project manager may find it quite useful to engage the use of a Gantt chart in managing complexity in cost and time.
References
Jacobs, R. & Chase, B. (2011). Operations and supply management: The core. Boston: McGraw-Hill Higher Education
Reiss, G. (2007). Project Management Demystified. New York, NY: Routledge.
Schwalbe, K. (2012). An introduction to project management. Minneapolis: Kathy Schwalbe LLC.