HANDSTAR

INC.
PROJECT MANAGEMENT
PROF. RUPESH KUMAR PATI

By Group 15
Nitin Gupta 210
Rushabh Tibrewala Shankara Bhakthula Vishwas342

INTRODUCTION
Handstar Inc. developed software applications for handheld computing devices
The organization had ten employees with annual sales worth $1.5 million
Its first Product was an Expense Report Application

Additional software products:

A program for tracking and measuring the performance of investment portfolios
Calendar program
A program that allowed users to download their email messages from their PC

New project ideas:

Development of a Spreadsheet Program
Web Browser
Trip Planner Program

OBJECTIVE:

OBJECTIVE OF
THE CASE

To select the best project option from existing programs and three new project ideas based

on the cost involved, revenues expected and its importance in giving Handstar Inc. a strong
market position

Assumptions:
We have assumed that all projects are completed at the same time
The lifetime (revenue generation) of each project starts at the same time ie from the date of

completion of each project

The total manpower available can be used for the suggested projects and no other existing project is

requiring manpower

PROJECT SELECTION
BASED ON NPV

Project Type

Project Name

NPV

Ranking

Update Project 1

Integration of calendar and e-mail

$1,575,155.23

Update Project 2

Expense report

$607,862.11

Update Project 3

Portfolio tracking system

$1,218,324.22

New Project 1

Spreadsheet Program

$2,501,024.51

New Project 2

Web Browser

$6,779,898.70

New Project 3

Trip Planner

$2,944,042.97

Recommendation: Projects that we can select based on no. of hours

available (10000 hours)
We have tried to keep maximum number of projects so as to utilize the manpower effectively,
so project ranked 6 is also taken as with less man-hours required it could easily fit in available
time
Ranking
New Project 2
New project 3
Update Project 1
Update Project 2

Total no. of hours

1
2
4
6

1875
6250
1250
400

WEIGHTED SCORE METHOD

FOR PROJECT SELECTION
We have to take into consideration two aspects: Will the project attain a

leadership position in the market and extent of its internet usage

Sno.

Project Type

Project

Leadership
Position

Internet Usage

Update

Integration of calendar and email

Moderate

Moderate

Update

Expense Report

High

Low

Update

Portfolio Tracking System

High

Moderate

New Application

Spreadsheet Program

Moderate

No

New Application

Web Browser

Low

High

New Application

Trip Planner

Low

High

WEIGHTED SCORE METHOD FOR

PROJECT SELECTION
NPV

50%

Update Project Update Project New Project New Project New Project
2
3
1
2
3
23.23
8.97
17.97
36.89
100.00
43.42

Leadership
position

25%

66.67

100

100

66.67

33.37

33.37

Internet use
25%
Weighted average
score
Rank

66.67

33.37

66.67

100

100

44.95

37.83

50.65

35.11

83.34

55.05

1250

400

750

2500

1875

6250

Criteria

Weight

Development Hrs

Update
Project 1

Assuming the weight of NPV twice the leadership and internet usage aspect, we see that with no. of
available hours, we choose the same 4 projects as chosen based on NPV alone
The no. of hours utilized by update project 3 is very less, hence leads to lot of unutilized time, hence
we have chosen next two projects with lesser ranks

HIRING ADDITIONAL SOFTWARE

DEVELOPERS

Available Man-hours on hiring one software engineer: 12500 hours

Following projects would be chosen with new manpower: 5 projects in each case

(highlighted in yellow)

ON NPV BASIS
Update Project 1
Update Project 2
Update Project 3
New Project 1
New Project 2
New Project 3

Integration of calendar and e-mail

Expense report
Portfolio tracking system
Spreadsheet Program
Web Browser
Trip Planner

Hours
1250
400
750
2500
1875
6250

Rank (based on Npv)

4
6
5
3
1
2

12275
ON WEIGHTED AVG SCORE
BASIS
Update Project 1
Update Project 2
Update Project 3
New Project 1
New Project 2
New Project 3

Hours

Integration of calendar and e-mail

Expense report
Portfolio tracking system
Spreadsheet Program
Web Browser
Trip Planner

1250
400
750
2500
1875
6250
10525

Unutilized manpower

1975

Rank (based on
Weighted Avg score)
4
5
3
6
1
2

CONCLUSION
4 projects each can be done with available manhours
5 projects could be done with hiring one more developer, but would

increase the cost

The most basic assumption here is that all manpower is utilized in

whatever projects we suggest

However, in any organization, some manpower needs to kept for ongoing

processes and functions

All the recommendations are solely made on NPV and weighted score

basis, without considering any qualitative factors