Case Study “Sharp Printing, AG”

1.1.At this point what would you do if you were the project manager?

1.2. Was top management acting correctly in developing an estimate?

1.3. What estimating techniques should be used for a mission critical project such as this?



This report is focused on answering the key questions from the case “Sharp Printing, AG”. The organization needed to acquaint a color laser printer with buyers and organizations for under $200. The top administration chose with real deliverables, item dispatch dates and evaluated expenses of the whole venture based on their experience. Meeting with the center level administration was booked where every one of the particulars and venture points of interest were given out. Lauren was picked as the task administrator of the undertaking who was cynic of the high danger of the venture. An estimation of the whole venture was attempted to choose the objectivity of the top administration. The results of the evaluations were that the expense were 5125.000, 20% over the normal cost and time required was additionally 4 months more than anticipated to assemble the innovation.



Introduction of the case

Lauren was chosen to be the project administrator of a task of actualizing a color laser printer for customer and business market at a sensible cost. However there were issues in expense and time estimates. Contextual investigation is about what requirements to done by the undertaking supervisor to conquer this issue.


At this point what would you do if you were the project manager?

The present state is that the laser printer is a prominent, key undertaking to build income. Time to market is imperative. It is sensible to expect the base up appraisal is more precise than the underlying macro estimate. If I were a project manager, I would use the priority matrix in order to help the top administration to develop clear priorities. Time is considered as one of the significant factors as the color printer is a technology where a short delay could cause the rivals to introduce the same product with particularly low price that could make the whole project valueless. Hence, the time to market would be focused on. On the other hand, performance is considered to be the critical factors in developing the product that also has reasonable quality. Hence, it is significant to offer the value for money for the item except the product will be unsuccessful in the long time period. Another area of the priority matrix is the cost. This factor is due to the fact that the estimate showed that the price has already amplified than the estimate of the senior management where the efforts of cost cutting which included talking with the design, production and marketing administrators were not capable of creating the great impact. Hence, time is considered as the important factor while performance is also needed, so the only choice that we have to admit is increased costs.

In addition to this, I would also plan a meeting with the senior administration in order to explain the priority matrix while getting the consent to augment the cost. At the similar period, I would take certain decisions in order to change the scope of the project where necessary. I would observe whether producing within the organization or outsourcing technology can decrease the issue of cost. On the other hand, I will also conduct the break even analysis with the different estimated cost in order to get know whether the company could attain the full profit which the senior managers expected. I would also use the work breakdown structure which would better assess the risks connected with the cost and time of the project while inspiring the use time phased budget when conducting the estimations. Lastly, I would also conduct a meeting with the project team in order to entail them the revised budget estimate as well as revised work breakdown structure. I would also get their feedback about the revisions. In case the project team becomes satisfied with the revised plan, I would continue the project and also license the project.


Was top management acting correctly in developing an estimate?

Based on the analysis of the situation, it seemed that the senior administration has made the judgment call by relying on the faulty and inaccurate information. The project is known not a noteworthy leap forward in the business. Determinations, including the cost appraisal, were set up exclusively in light of their related knowledge. There was insufficient thought in building up an estimate. Both sides neglected to achieve an agreement on their evaluations. There was additionally miscommunication between top administrations. They have utilized macro estimate which are just adequate to organize ventures, yet not for the precise task gauge. Top administration was as well “blinded” with the “guaranteed rewards”. The promising figure for evaluations was plainly improbable.

What estimating techniques should be used for a mission critical project such as this?

In spite of the fact that it is anything but difficult to propose assessing down to the work package level, there are mission basic activities where time is basic and expense must be precisely controlled. If the printer costs the company excessively, the company might not be capable for selling it for no more than $200 without losing cash.  As this project includes the elements which both estimating techniques are utilized in, the company must utilize both bottom-up and top-down methods in order to determine the necessities. A top-down method which must be utilized is the consensus methodology. This method utilizes the past experiences of senior management in order to give a rough knowledge about the time and cost which the project might entail. On the other hand, additional useful top-down methodology is the function point’s method. This method offers an enhanced in-depth look at the single deliverables as well as the difficulty included in accomplishing them.

Other methods such as apportionment and ratio methods must not be used for the mission critical projects. This is because these methods tend to rely largely on the information from previous projects. As mission critical projects involve exploiting something which is never done beforehand (Assante et al., 2013), information and data from previous projects would result in a flawed estimate.