HANDSTAR

INC.
PROJECT MANAGEMENT
PROF. RUPESH KUMAR PATI

By Group – 15
Nitin Gupta – 210
Rushabh Tibrewala Shankara Bhakthula Vishwas342

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 . developed software applications for handheld computing devices  The organization had ten employees with annual sales worth $1.INTRODUCTION  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 . revenues expected and its importance in giving Handstar Inc.OBJECTIVE: OBJECTIVE OF THE CASE  To select the best project option from existing programs and three new project ideas based on the cost involved.

PROJECT SELECTION BASED ON NPV Project Type Project Name NPV Ranking Update Project 1 Integration of calendar and e-mail $1. of hours available (10000 hours) We have tried to keep maximum number of projects so as to utilize the manpower effectively.779. of hours 1 2 4 6 1875 6250 1250 400 .862.218.23 4 Update Project 2 Expense report $607.11 6 Update Project 3 Portfolio tracking system $1.898.97 2 Recommendation: Projects that we can select based on no.70 1 New Project 3 Trip Planner $2.575.324. 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.024.51 3 New Project 2 Web Browser $6.501.042.22 5 New Project 1 Spreadsheet Program $2.155.944.

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 1 Update Integration of calendar and email Moderate Moderate 2 Update Expense Report High Low 3 Update Portfolio Tracking System High Moderate 4 New Application Spreadsheet Program Moderate No 5 New Application Web Browser Low High 6 New Application Trip Planner Low High .

of hours utilized by update project 3 is very less.89 100.00 43.11 83. we choose the same 4 projects as chosen based on NPV alone The no.34 55.67 100 100 66. hence we have chosen next two projects with lesser ranks .37 33.23 8.37 66. of available hours.42 Leadership position 25% 66.65 35.95 37.67 33. we see that with no.97 17.83 50.05 4 5 3 6 1 2 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. hence leads to lot of unutilized time.37 Internet use 25% Weighted average score Rank 66.97 36.67 33.67 0 100 100 44.WEIGHTED SCORE METHOD FOR PROJECT SELECTION NPV 50% Update Project Update Project New Project New Project New Project 2 3 1 2 3 23.

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 .

but would increase the cost  The most basic assumption here is that all manpower is utilized in whatever projects we suggest  However. without considering any qualitative factors . in any organization.CONCLUSION  4 projects each can be done with available manhours  5 projects could be done with hiring one more developer. some manpower needs to kept for ongoing processes and functions  All the recommendations are solely made on NPV and weighted score basis.

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