Project Management
Juniper
Low Risk
Project Cost
Profit
Palomino
Medium Risk
Project Cost
Profit
Stargazer
High Risk
Estimated Cost
Profit
All three projects are feasible from a financial standpoint because they all offer a decent return. The breakeven point for all three projects is greater than one year and less than two years. The largest return is to be found on the project with the highest risk associated with it; which is not surprising. Although the risk of completing this project on time is high. The product life is forecasted to be 7 years for this product. Furthermore, the project has already been mostly funded. Although the current expenditures could be considered a sunk cost, it is close to completion.
Not only does this project offer the greatest returns, there are also many other subsidiary benefits. By introducing an innovative product to the market place before the competition, the organization will be seen as a leader in this industry. I would recommend that this project take priority. The organization could implement a full risk management strategy to eliminate as many risks as possible. The organization could put their top talent on the project to ensure that they get the best result as possible.
Part B
A total quality management (TQM) strategy could also be implemented to support the project's quality and the final project's quality as well. A total quality management strategy will empower employees to improve process as opportunities are identified. This strategy also eliminates the quality control department and in a TQM model often times there is no or a limited quality control function. Quality is the responsibility of all the employees during the production process. Everyone is responsible for their own quality and is expected to perform to the best of their abilities. Many research studies have found that TQM practices are positively correlated with customer satisfaction and service quality in many service organizations (Ooi, Lin, Tan, & Chong, 2011).
Works Cited
Ooi, K., Lin, B., Tan, B., & Chong, A. (2011). Are TQM practices supporting customer satisfaction and service quality? The Journal of Service Marketing, 25(6), 410-419.
