Priyanshu Kumar

Roll no: 1311314

A&D High Tech (B)
Introduction
A&D High tech designed a project to start on 26
th
May. As of 26
th
August the project has gone behind
schedule and it was imperative to finish the project before the holiday season i.e. 15
th
December
(assumed). The purpose of this case analysis is to analyse possible ways to complete the project in
time and check for the possibility of incorporating a promotional bundle and still complete the project
on time.
Project Statistics at the Start and at August 26

Cost Performance Index (CPI) = 0.91
Schedule Performance Index (SPI) = 0.68
As seen from the above indices the project is both over budget and behind schedule. The critical path
as of now is given as follows:
Build ERP Interface Perform Phase 2 Testing Perform System Testing Perform Validation
Testing Implement System Deploy to production Project Wrap up
Options Available for Chris Johnson
Option 1: Hiring of Extra Test Developer for testing
In this option we tried to hire extra test developers for testing purpose as testing was a critical step.
To bring the schedule down to December 1, three test developers were required which added a lot of
cost. Hence this option was discarded.
Option 2: Removal of per item shipping charge
In this option the work was reduced by 50% in Submit order tasks while freeing up a developer. This
developer was deployed in Building ERP Interface task. Upon doing that the project timeline decreases
significantly to finish the project by 26
th
November.
Priyanshu Kumar
Roll no: 1311314
Assumption: One of the assumption made in this is removal of per item shipping charge is not
significant.
Incorporating promotional bundles
Contract developer (CD) vs Microsoft Consultant (MC): The cost of going through with CD is higher as
compared to that of MS.
Choices No of days Required Cost Total Cost
Contract Developer 15 (with training) $175/hr =8*175*15 = $21000
Microsoft Consultant 3 $500/hr =3*500*8 = $12000

Two new tasks of Pricing Rules & Performing Pricing Module were scheduled. Pricing rules will be done
by the consultant which have a lead time of procurement of one week. Hence it should be completed
before 11
th
of November. Hence the consultant should be called in the last week of October. For the
task Performing Price Module all the resources from the previous task i.e. Perform Validation Testing
are being used. The cost incurred in the process is $21,360. Using the same logic of removing the per
item shipping charge the project was taken through. It was observed that the start of Project Wrap Up
task is scheduled to start by 1
st
of December. Hence if the task of Project Wrap Up is left the project
can start on the scheduled date.
The total cost incurred for the same will be $1,014,680
With Project Wrap Up task included the CPI and SPI index were 1.1 and 0.94 respectively. Hence the
project was completed within the budget although it somewhat exceeded the initial schedule.
Risk Involved
1. Removal of per item shipping charge may turn out to be a critical process
2. The use of consultant for the project may not have enough traction with the work done inside
the firm
Estimated Cost Variance
The cost variance of the project as seen on 26
th
of August can be determined by subtracting the
baseline cost i.e. $943,480 from the projected estimated cost i.e. $1,014,680.
Estimated Cost Variance = $71200
This implies that the cost will shoot up by the above number.