MT5
Nov 27, 2014
MT5
Table Of Contents Title…………………………………….Slide #•Team Members…………………………3•Scope Description…………………….4•Miltech Objective……………………..5•PM’s Deliverables………………………6•Timeline…………………………………….7•Client Description…………………….8•Product Description………………….9•Product Requirements………………10•Deliverables by Teams………………..11-15
Project Management Team members•Chris Rod-Project Manager
•Tiara Stephens-Lead
•Sandeep Patel-Lead
•Ayat Elewa-Backup Lead
Scope Description•Develop a personal communication device
▫Must be built with military specs
▫Must be supplied to US government
Military services
General public
Miltech’s Objective• 1st to market
▫Computing/personal communication device
•PM Team will support each team by use of effective PM Techniques
Deliverables•New Product Project Plan
•Project Scope
•Timeline
•Project Change
•Budget
Client Description•Expand into consumer electronics market
•Create a high tech communication device
•Target market:
▫Business/corporate industry
Product Description•5G phone
•Fingerprint identification
•Touch screen
•Supports multiple OS
•Live video chat
•Hearing aid compatible
Project Requirements•Highly reliable
•Up-gradable
•Programmable
•9 months to manufacture the first 15,000 units
•15,000 units delivered per month
•Estimated cost $5,000,000
•Must break even in 1 ½ years or less
Project Deliverables By TeamsMarketing/Sales• Target Market determined
• Product features and retail price determined
• Sales literature and detailed advertising plan
Project Deliverables By TeamsDistribution• Distribution channel determined (stand
alone stores, chains, super stores. Etc)
• Complete evaluation on partnering with at least three telecommunications network providers.
• Amount of staff addition and any special staff training requirements
Project Deliverables By TeamsCustomer Support• Amount of staff addition and equipment
requirements for 24/7 telephone and web based support.
• Determine special staff training requirements
Project Deliverables By TeamsHuman Resource• Staffing Requirements
• Recruiting Plan
• Job Descriptions
Project Deliverables By Team
Finance• 5 year projection
• Break even in 1 ½ years
• Accurate amount of staff addition and any special staff training requirements
MARKETING TEAM
Table of Contents• Team Organization and Roles • Project Objectives• Deliverables
• SWOT • Market Share• Retail Pricing
• Product features• Sales growth
• Target market• Contingency plan
• Pre & Post Ads• Total Ad cost
• Lessons learned• Summary
Team Organization and Roles
• Christian Tubigan Team Leader
• Rich Ptak Project Schedule & Features
• Ann Petkevich Sales Literature & Market Share
• Eddie Lewis Advertising Costs
• John LaGiglia Target Market
Objectives
•Increase company product growth by creating a new business modelImprove brand recognition in the general
consumer marketFirst-to-market communication device18 % ROI18 month or less break-even point
Deliverables
•Determine: Target Market (Demographics)Product FeaturesRetail PriceStaffing and Markets (Geographic)Sales LiteratureBrand Recognition and Market Share
Marketing Plan
•Partnering with the three major providers:▫ T-Mobile, Verizon, AT&T
•Benchmarked where the competition is today▫Blackberry*, iPhone, Droid, Palm
•Selling MT5 product to a niche-market
Ann Petkevich
•SWOT Analysis•Competitor Analysis & Market Share•Retail Pricing
SWOT Analysis
Strengths
Weaknesses
Opportunities Thr
eats
SWOT
SWOT Analysis
•Strengths:▫ Innovative patent touch-screen, voice-to-text and
finger-print technology▫Leading supplier of military communication
devices▫Abilities to develop new products and financial
capabilities
•Weaknesses:▫Brand recognition, unknown in consumer market▫Missing expertise in marketing to consumers
SWOT Analysis•Opportunities:
▫Strong demand by business professionals for communication devices with ultimate security features.
▫Gain market share by differencing Miltech with their proven military technology and services.
•Threats:▫Large number of competitor products and services
that have large percentage of market share▫Potential price wars
Market Share Analysis
Competitor
2010Forecast
Units (millions
)
Market Share
2009Units Sold(millions)
Market Share
Growth 2010-2009
Total = 65.1 100.0% 47.2 100.0% 37.9%
RIM 28.0 43.0% 23.2 49.2% 20.5%
Apple 13.8 21.3% 10.9 23.1% 27.1%
Google 12.3 18.9% 4.6 9.7% 169.2%
Microsoft 4.7 7.2% 4.8 10.1% -1.3%
Palm 3.1 4.7% 1.4 3.1% 112.3%
Symbian 2.1 3.4% 1.5 3.2% 47.0%
Others 1.0 1.6% .8 1.7% 25.0%Source: Canalys
Retail Pricing
•Cost of MT5 to our major providers will be $599.99
•ROI for major providers starts after 4 months
Rich Ptak
•Product Features•Forecasted Sales
Growth
Miltech MT5 “Innovative” Product Features
•Breakthrough touch screen technology
•Fingerprint identification
•Proprietary telecommunication
•Superior connectivity with improved reliability
•5G capability▫Largest ram, fastest microprocessor
▫Video and television streaming
Miltech MT5“Premium” Product Features
•Measures 4.8”x2.5”x0.5”, slightly larger than most smart phones
•Weighs only 130 grams
•AMOLED screen 3.7”
•Slide out Qwerty keyboard
•MT5 has all of the comparable features
MT5Sales Growth
2011.5 Model I
2012.5 Model II
2013.5 Model III
2014.5 Model IV
2015.5 Model V
0
500
1000
1500
2000
2500
3000
5 Year Plan
Un
it x
10
0
MT52011 Marketing Timeline
MT52012 Marketing Timeline
John LaGiglia
•Target Market•Contingency Plan
Target Market MT5
Demographics
•Adults
•Business/Corporate Professionals
•Ages 25-44
•HHI $75,000 +
Marketing Channels
•(Outdoor) Airport Advertising:Airport dwellers - Median Household Income = $104,235.48% professional / managerial
•Young Adults
•Students
•Ages 18 – 24
•Facebook Generation
Contingency Plan
• Identify if sales expectations are being met
• Identify if competitor takes some unexpected action
• Reallocate the advertising budget, test ideas slowly.
• Try smaller changes, and watch for results.
• Test message, media, offer, and advertising schedule.
http://www.myprofessionaladvertising.com/Advertising%20Planning.htm
Contingency Plan in Action
•New product innovation and creation
•Promotion from famous spokesperson
•Price reduction and discount sales
Average Costs for Advertising
•Newspapers – $1,300 per week for 2” x 2” ad
•Television – $200,000 for one 30-second commercial (during prime-time)
•Radio -$120 per week on a rotator (prices higher if time slots for ad are selective)
•Magazines -$5,000 per month or per issue (depends on ad size and demographics)
Average Costs for Advertising
•Outdoor (billboard)-$500,000 minimum contract is 16 weeks
•Online -$1,800 a month plus search engine optimization $1,200 per year per banner ad on websites
Advertisement
• Pre-Launch February 2, 2011
• Post-Launch May 5, 2011
• Methods of Advertisement▫Television▫Newspaper ▫Radio▫Magazines▫Billboards▫Web
Advertisement Cost
•Initial 12 weeks Television- $2,400,000 Newspaper- $15,600 Radio- $1,800 Magazines- $45,000 Billboards- $1,200,000 (16 week contract) Web- $6,600
•Estimated Total- $3,669,000
Advertisement Cost
•Remaining 40 weeks
▫Television-$1,400,000 (7 weeks)▫Newspaper- $52,000▫Magazines- $135,000▫Web- $16,200
• Estimated Grand Total- $5,272,200
Christian Tubigan
• Market Regions• Staffing• CPI & SPI• Lessons Learned• Summary
Market Regions
WestNorth East
Mountain Nevada New England Washington Northern California Southwest Philadelphia Tri-state Virginia
Southern California Pacific New York Baltimore
North West
Mid West South
Great Plains Kansas Carolinas Georgia
Wisconsin Michigan Texas HoustonOhio Indiana Florida Golf Coast
Pennsylvania Kentucky South Central Alabama
Illinois Missouri Tennesse
Staffing
Director
Regional Manager- West
CPI & SPI
0 1 2 3 4 5 6 7 8 90
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
CPI SPI
Week
Un
itle
ss
Product Milestones (5 Year Plan)
Lessons Learned•Planning and developing marketing plan
•Working outside of curriculum
•Dynamics of working as a team
Summary
•MT5 Smart phone▫Innovative ▫Premium
•25-45 year olds Corporate and Business Professionals
•4 Key market regions
•$ 599.99 per phone
DISTRIBUTION TEAM
Sheena GutierrezRobbin MonteiroLorena Torres
Table of Contents
•Team Roles•Objectives•Deliverables•Carriers•Logistics•Q.C.•Network Providers•Risk Assessment
Team Roles
Sheena Robbin Lorena
Team Leader Status reports- Scope
Logistics
Contracts/ Telecommunication
Time sheets/Data Analysis
Customer Survey/Data
Sheena Gutierrez
Objectives
•Develop and setup of the software system
•Comply with ISO 9000
•Develop guidelines on contracts for carriers
•Contracts with telecommunication networks
•Training requirement set up
• Shipping Setup
• To develop a setup for cross docking
Deliverables•Establish a Relationship with Partners
•Specifications for Quality Control
•Recommendations for Contracts
•Establish High Market Carriers
• Implementation Plans for the Logistics operations.
Deliverables
•Develop a guideline for Staffing Positions
•Recommendations for Training requirements
•Develop Safety suggestions
•Provide Software Help
Carriers• FedEx
Quality TruckerInsures CargoQuick Delivery and Tracking
• UPSParent company- EstablishedMilitary ProductsTracking Options- Emails
• All Contracts Will be Handled by the Legal Department
Plan- Time Line
Network Providers
Criteria•T-Mobil
Cheaper ServicePresence in Consumer Market
•Verizon WirelessCustomer SupportReturns
•AT&TCommercialsEstablish a PresenceMarketing Muscle
Distribution Channels
Future Changes in Marketing Strategies
•Individuals
•Kiosks
•Super stores
•Other locations
Software - Cargo Wise EDI
•Parent Company Training
•Customer Orders/Invoices
•Shipment Management
•Manager Information
•AR and AP
•Customer and Employee Tracking
Lorena TorresLogistics
Topics
•Quality Control
•Process of Logistics
•Cross Dock Line Process
•Loading Truck with CargoWiz
•Shipping Dock
•Launch Time Line
Quality Control
Advantages
•Cross Dock saves time and Money
•Insure quality Packages
•Avoid unnecessary mistakes
Quality Control (cont.)
•Shipment Labels Must have Correct Address
•Before Shipping; Random Inspection
•Prevent Costly Repackaging and Defect-Free Crates
•1 out of 5 Phones will be Inspected For Defects
Logistics Process
• Package Received
•Send to Cross Dock
•Re-label with New Address
•Inspected
•Moved to Shipping
Cross Dock Line•Remove the Old Label
• Remove old Packing List
•Insert New Packing List
•Place new Shipping Label
•Send it to Q. A.
Quality Control•Inspect and repack damage boxes
•Properly packaged
•Comply with ISO 9000
• Send to shipping
Loading Truck Logistics• CargoWiz Software
3 easy steps Container Cargo Size Load Container
• Plenty of space for more freight using the smallest truck 20’
• 3 days guarantee delivery
Shipping Dock
Insert Crates Into Truck
and
Ship Product to Clients
Estimated Values
Risk Assessment
Risks Severity Contingency Plan
Loss Data High Back Up
Language Barriers Low Negotiate Language
Packaging High Secure
Risk Assessment
Risks Severity Contingency Plan
Time Zone Low 24 Customer support/Shifts
Weather Low Tracking
Rate Increase- Trucking
High Alternative truckers
Risk Assessment
Risks Severity Contingency Plan
Employee Turnover
High Employee List
Sold Customer Information
High Contract Terms and Conditions
Lost Inventory Low Stock
Risk Assessment
Risks Severity Contingency Plan
Safety High Training
Strikes High Negotiation
Shipping LTL High Greater QuantitiesFTL
Robbin Monteiro
Staffing Additions
•Shipping/Receiving Clerks (2) @ 14.00 Hr
•Inventory Clerks (2) @ $10.00 Hr
•Warehouse/Forklift Operators (4) @ $ 12.00 Hr
•Order Processors (2) @ $14.00 Hr
Staffing Additions
•Resources
•Positions
•Training Onsite
•Training seminar
Distribution ExpensesPre Launch
Wrap-up
•Planning
•InitiatingUsing Proven Vendors
•ContractsTerms and Conditions
•LogisticsShipping
•Charge Back
Learned Experiences
•Pursuit for Excellence
•Time Management / Organize
•Problem solving
•Communicate effectively
•Team collaboration
Learned Experiences
•Participation
•Patience
•Listening
•Accept Constructive Criticism
•Forecasting Cost
Team Expense
•Projected Team Cost $28,000
•Actual Cost $20,800
•CPI = 1.34
•SPI = 1.1
Projected and Actual Team Cost
Weekly Metrics
CUSTOMER SUPPORT
Customer Support Roles and Members
Rich Minchuk Team Lead
Mark Boen Project Coordinator
Magda Gutierrez Administrator
Hussain Zaidi Information Technology
Customer Support Scope
•Develop a customer support department
that will provide an exceptional level of
quality service using state of the art
technology and skilled professionals to
meet all of our clients needs.
Objectives
•Develop specifications for a 24/7 telephone and web based support system
•Develop specifications for a networked computing environment
•Determine staffing needs for customer service department.
•Determine staff training requirements
Deliverables
•Phone system/Recovery plan•Network•Customer database•Staffing•Costs•Learning experiences•Project recommendations
Customer Support – Phone System
Avaya 2410Features and Benefits:
Already being used by Miltech
Call logging management
Income and outgoing call management
Direct e-mail
Fax messaging
Avaya 2410
Advantages of Avaya Phone System• Fast • Reliable• Fewer equipment• Customer service
Customer Support - Network and Database
Network •Servers
▫HP ProLiant - DL180 G6 Server - 10 GB RAM - 2.26 GHz – up to 14 TB GB HDD
•Workstation ▫HP Business Compact 7900
2GB RAM 2.5 GHz Dual Core CPU 22” LCD monitors
Advantages of using HP Hardware
•Dell- You can start with a $499 computer and bring it to over $1000 depending on what options you pick.-Dell’s website is built very user friendly-Provides excellent customer service.
•HP-In most cases provides cheaper systems than Dell.
• -Plans start $399 much cheaper than Dell.-More models to choose from than Dell.-HP website provide award winning customer service
• -Almost the same amount of options as Dell
HP vs Dell
Database
•Requirements▫Store▫Monitor▫Security▫Disaster Recovery Plan
Database
•Specifications:
▫Oracle Database 11g Enterprise edition (cost $40,000)
▫Upgraded security features
▫Upgraded performance and scalability
Customer Support -Staffing
Staffing Timeline
Customer Support Staff Members•Customer service representative•Technical support •IT support•Database administrator•Management
Customer Support Staff Schedule•Day will be divided into three shifts
•1st shift: 7am-3pm
•2nd shift: 3pm-11pm
•3rd shift: 11pm-7am
Customer Support Staff1st Shift staff requirements:
▫2 Managers▫2 Supervisors▫20 CSR’s▫15 Technical support▫2 IT support▫2 Database administrators
Customer Support Staff Schedule
2nd Shift staff requirements:
▫2 Supervisors▫15 CRS’s▫15 Technical support ▫2 IT support▫2 Database administrators
Customer Support Staff Schedule
3rd Shift staffing requirements:
▫2 Supervisors▫10 CRS’s ▫5 Technical support▫2 IT support▫2 Database administrators
Customer Support Staff Training•Training and development program for
CSRs▫Avaya phone system training▫Network software training▫Database training▫Client support training
Training will begin one month prior to launch and
given by HR Dept.
Customer Support - Costs
Phone/Network/Database Costs
•Avaya phone cost $45,000
•Network cost $119,500
•Database cost $40,000
Team Costs
Hourly Rate: $100.00
Total project cost: $11,050.00
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
hrs 16.50 16.50 18.50 14 16 13 16
AC $1,650.00 $1,650.00 $1,850.00 $1,400.00 $1,600.00 $1,300.00 $1,600.00
Learning Experiences
•Team Learning Experiences
▫Time management
▫Communication problems – mainly e-mail (cc:)
▫Functioning as a team with new people
▫Developing communication processes with the other departments
Team Project Metrics•CPI & SPI
Summary•We developed the specifications for the
phone system•Selected network and computing
environment for the call center•Projected staffing requirements •Completed all projects on time •Coordinated with different teams to get the
project done on time.
HUMAN RESOURCESFouad HusainAngelica AyalaMarie NemecRadhika Patel
HR Member Roles
Fouad Husain Project LeadAngelica Ayala Training
Manager Marie Nemec Human Resources
Manager Radhika Patel Recruiting Manger
Mission/Objectives
•Develop plans and procedures for staffing, recruiting, and training.
•Determine staff requirements to implement the new MT5 Personal Communications Product.
•Meet the projected nine month development and production cycle timeline while staying within budget.
Deliverables• Job Description
• Recruiting Plans
• Interview Schedules
• Salary Plans
• Staffing Plans
• Training Plans
Assumptions
• Benefits and compensations arranged through parent company
•HR processes the additional staffing needs
•Putting in recommendations before project launches
•Policy and procedures handbook are provided through parent company
Project Status •Months 1-3
▫Recruiting and hiring process•Months 4-6
▫Process of hiring and conduct interviews•Months 6-8
▫ process of training and development
Recruiting Plans• Hiring Ad
Monster.com Career Builder.com Daily Harold Yahoo hot jobs
• Outsourcing Aerotek Staffing Agency
• Internal
Hiring Process•Completed by the six month
Background checks
Drug test
Physicals, if needed
Staffing • Completed by the eighth month of project
• DistributionSix Full Timers
Set salaries for all positions
• Marketing17 Full Timers
Director
Regional Managers
Account Executives
Set salaries for all positions
Staffing cont...
•Customer Service33 Full Timers
Set salaries for all positions
• Project ManagementNo employees needed at this time
•Finance No employees needed at this time
Training Schedules
• Marketing Training for Regional managers to be completed by
eight month
Training for Account Executives to be completed by end of eight month
• Distribution Training for Distribution Manager to be completed by
sixth moth
Training for Supervisors, packaging operators, and shipping & Receiving associates will be completed by end of eight month
.
Training Schedules continued…• Customer Service
▫ Training for Customer Service Manager and Customer Service Supervisors to be completed by sixth month
▫ Training for first shift Customer Support Representatives completed by sixth month
▫ Training for second and third shift Customer Support Reps to be completed by eight month
Specialized Training• Distribution
▫ System and Equipment Training
• Customer Service
▫ Data Base, Problem Solving, Effective Customer Service
ScheduleSchedule Matrix
Duration (Days) Start Finish
1 Hiring Requirements 31 3/8/2010 4/8/2010
1.1 Number and position of 10 3/8/2010 3/18/2010
employees per dept
1.2 Create job descriptions 10 3/18/2010 3/28/2010
1.3 Determine Salaries 11 3/28/2010 4/8/2010
2 Recruiting 61 4/9/2010 6/9/2010
2.1 Create recruiting plan 21 4/9/2010 4/30/2010
2.2 Select recruiting media 30 4/30/2010 5/30/2010
2.3 Post jobs 10 5/30/2010 6/9/2010
3 Hiring Materials 30 6/10/2010 7/10/2010
3.1 Create all necessary forms 6/10/2010 7/10/2010
and applications
Task
Schedule cont…
Schedule MatrixDuration (Days) Start Finish
4 Interviewing 60 7/11/2010 9/9/2010
4.1 Review resumes 60 7/11/2010 9/9/2010
4.2 Select potential candidates 60 7/11/2010 9/9/2010
4.3 Screen candidates 60 7/11/2010 9/9/2010
4.4 Set up interviews 60 7/11/2010 9/9/2010
4.5 Select final candidates 60 7/11/2010 9/9/2010
4.6 Final interviews 60 7/11/2010 9/9/2010
4.7 Continue interviews as needed 9/9/2010 As needed
5 Training 61 10/8/2010 12/8/2010
5.1 Develop training plan 10 10/8/2010 10/18/2010
5.2 Create training manuals & material 10 10/18/2010 10/28/2010
5.3 Hire/train training trainer 10 10/28/2010 11/7/2010
5.4 Set up orientation 5 10/20/2010 10/25/2010
5.5 Begin orientation & training 30 11/8/2010 12/8/2010
5.6 Continue training process as 12/8/2010 As Needed
needed
Task
SPI/CPI
•COST Performance Index• CPI = .29• Cost overrun
• SCHEDULE Performance Index• SPI = .90• Work is slightly behind schedule
Recommendations•Additional staff needed when required
•Federal and State laws
•Training
•Review plans within a year
Learning Experience• Time Management
• Communication
• Figuring out details
• Team work
• Finalizing the project
FINANCE TEAM
TEAM MEMBERS & ROLES
Dave Schneck - Team Leader-Directs Activities Of The Project -Reviewing Other Member’s Work
Corey Lockwood - Financial Analyst-Spokesperson-Communication With Other Teams -Financial Analysis
TEAM MEMBERS & ROLES
Salma Ajmeri - Financial Analyst-Time Phase Budget-Financial Analysis
Malgorzata Glab - Financial Analyst-Midterm & Final Presentations-Financial Analysis
OBJECTIVES
•Five Year Financial Forecast
Break Even Point Within 18 monthsNet Present Value At 18.5% Return On Investment AnalysisIncome StatementWhat-If Analysis
DELIVERABLES
Develop & Provide Financial Projections
Changes To Timeframe & Budget
Price & Sales Volume Suggestion
Dave Schneck
Project Financial Analysis•Start-Up Expense Summary
Expenses Costs Manufacturing $5,000,000
Advertising $6,000,000
Salaries & Direct Labor $3,269,875
Network, Hardware, Software
$ 164,050
Consulting Expenses $ 192,000
Supplies $ 238,440
Total $14,864,365
Project Financial Analysis•Break-Even Analysis
Price per unit $600
Fixed Costs $14,864,365
Variable Costs $200 per Unit
Break-Even Point 46,211 Units
Break-Even Date 4th Month After Launch
Break-Even in Dollars $ 27,726,573
Project Financial Analysis•On-Going Expense Summary
Year Costs 1 $10,860,025
2 $25,442,317
3 $24,589,586
4 $ 28,337,801
5 $ 32,086,980
Total $121,316,709
Project Financial Analysis•Projected Sales Revenue
Year Units Sold Per Year
Revenue ($millions)
1 460,000 $276
2 600,000 $360
3 600,000 $360
4 600,000 $ 360
5 600,000 $ 360
Total 2,860,000 $1,716
Project Financial Analysis•Net Income Statement
($mil) 1 2 3 4 5
Sales $276 $360 $360 $360 $360
COGS (92) (120) (120) (120) (120)
Gross Profit 184 240 240 240 240
Op Exp (10.86)
(25.44) (24.59) (28.34) (32.09)
EBT 173 214 215 212 208
Chgbk (27.60) (36.00) (36.00) (36.00) (36.00)
PT Inc 145 178 179 175 171
Taxes (50) (62) (63) (61) (60)
Net Inc $95 $116 $116 $114 $111
What-If Analysis•Discount Price
Production Cost $120M
Sales Volume 600,000 units
Retail Price $500
Sales In Dollars $300M
Gross Profit $180M
What-If Analysis: Worst Case•15,000 Units Sold Per Month
Production Cost $36M
Sales Volume 180,000 Units
Retail Price $400
Sales In Dollars $72M
Gross Profit $36M
Net Present Value Analysis (18.5%)
Period NPV ($ Millions)
Year 1 146Year 2 153Year 3 129Year 4 107Year 5 89
Total NPV 625
Return On Investment Analysis
Period ROI
Year 1 168%
Year 2 148%
Year 3 149%
Year 4 143%
Year 5 137%
SALMA AJMERI
Forecasted Vs Actual Expenses
Forecasted Expense By Week 8 : $20,500
Actual Expense By Week 8 : $20500
100% Work Completed
CPI & SPICost Performance Index
CPI – 8.81Under Budget
Schedule Performance Index SPI – 1.00Work Is On Schedule
Summary
•Sales Volume
•Levels Of Production
•Break-Even Within 1 ½
Learning ExperiencesFinance
Teamwork
Communication
Project Management
PM TEAM WRAP-UP
Product Description
•5G phone
•Fingerprint identification
•Touch screen
•Supports multiple OS
•Live video chat
•Hearing aid compatible
Critical Milestones
•Product Planning: March 10, 2010
•Target Market Determined: March 26, 2010
•Product Designed: April 19, 2010
•Approval Deadline: May 5, 2010
•Production Start Date: August 5, 2010
•Product Launch Date: May 5, 2011
Start-Up Expense
•Total of $14,864,365•Includes:
▫Manufacturing Expense▫Advertising Costs▫Salaries & Direct Labor▫Network, Hardware, and Software Expense▫Consulting Expenses▫Supplies
Post-launch Expense 5 year total of $121,316,709
YEAR 1: $10,860,025
YEAR 2: $25,442,317
YEAR 3: 24,589,586
YEAR 4: $28,337,801
YEAR 5: $32,086,980
Break-Even Point•Price per unit $600
•Break-even in units: 46,211 unit
•Break-even date: 4 month after launch
Projected Sales Revenue•5 year total revenue: $1,716 million
▫Year 1: $276 million
▫Years 2 - 5: $360 million / year
•Total units sold in 5 yrs: 2,860,000
▫Year 1: 460,000 units
▫Years 2 – 5: 2,860,000 units / year
Return On Investment (ROI)
• Year 1: 168%
• Year 2: 148 %
• Year 3: 149%
• Year 4: 143%
• Year 5: 137%
Recommendations•Initial investment of $ 14.8 million dollars
will be recovered within 4 months
•First year expected profit is $95 million
•Projected financial return over 5 years is $552 million
•Average ROI: 149%
•Net profit of $36 million during first year of product launch
PM team Budget
Team Members
Hours Worked
Rate per Hour
Total Individual
Pay
Actual Budget
Chris Rod 17 $100 $1,700 1600
Tiara Stephens 17 $100 $1,700 1600
Sandeep Patel 17 $100 $1,700 1600
Ayat Elewa 17 $100 $1,700 1600
Totals 68 $100 $6,800 $6,400
PM Team Overall CPI & SPI
•Cost Performance Index
•CPI = 0.94
Over budget
•Schedule Performance Index
•SPI = 1
Right on schedule
Learning Experiences
•Time management skills are imperative
•Team communication and collaboration
•Good team leadership and general management skills
•Resolving conflict
Summary
• 5G phone
• Never been marketed technology
• Projected 5 year income: $552 Million
• ROI on first year: 168%
• 9 month start-up cycle
• Break-even in 4 month
• Expected Launch Date: May 5, 2011