Project Initiation Analysis - Essay Example

The new product would require a market-oriented production approach as there are similar products available in the market. Thus the project manager must be from the marketing department.

The Project will produce Room Size Container s. expected to increase the company’s market presence and increase its turnover in new markets for the sales channel, lay the foundation for add-on products, and generate new revenues. The preliminary sketches are promising in terms of market competency and production feasibility.

The Sized Plastic containers are to be launched in the market within 9 months. Primarily it is expected to increase the company’s market presence by 50% by the third year. However, this product will be a foundation for add-on products and further revenue generation.

As the company is already involved in similar products and as the company has the injection mould of the required size, the Project will not include major Capital investment.

The largest risk in the implementation of the project is its market competence. It must be noted that there is a similar product which has secured ample market presence. This would affect the quantum of sales resultantly delaying the achievement of breakeven. However, the fact that the new product won’t involve a high increase in production cost would ensure that the product would easily survive the market establishment phase and consequently bring in revenue for Winston Manufacturing Company.

As the company have all the resources for this project. There are no major constraints identified except the requirement of some extra human resources.

The projects will involve an extra 10% of Human Resources. This could be utilized by other departments. 10 new labourers will have to be appointed to the production team. Other human resources may be tapped from the existing staff strength. The project would demand extensive cooperation among various departments. All the stakeholders of the project.

The Company will use the existing injection mould to produce room-size containers. The existing sources of inputs will be utilized. The project would attain break even earlier, as the new product won’t involve much capital investment in terms of production line, resulting in early returns. This must be read together with the fact that the company can use the already existing production system for the new product. Read More