Proj 586 Case Study
PROJ 587 – Advanced Program Management
Executive Summary A medium-sized firm Clean fabrics Inc in United States has increased the company’s revenues strategically about $350 million dollars per year. The company struggles to meet the objectives of expanding the company along with the cost control. The vision of the company is to provide the right choice to the clients and supplying the support services for the cruise ship industry in the different parts of the world operating in the areas of hotel and travel. The services are supplied to major hotel chains and cruises including linen services in the south east area of United States. Comparatively, the cruise ship industry provides the company with an …show more content…
If the discounted cash flows are to be considered, the team involved in the project determines whether the annual growth rate of the company is increased by 10% and the revenues are increased by 15%. If the project meets the above criteria, then it is selected. The rate of return can be calculated basing on the company’s revenues increasing by 15%. Hence, a project which yields a higher rate of returns which in turn leads to an increase in revenues is selected.
If the cost benefit analysis which comes under constrained optimization method is to be considered; objectives like operating costs, costs of warehousing and overhead costs are evaluated. If the costs are higher than the benefits of the project, the score falls down and such projects are rejected.
If the Project Call Center increases the customer satisfaction by 15% and meets the company’s goals, the projects are scored higher. If the project meets the company’s financial limits of $8.5 million dollars against the $24 million dollars allotted, the projects are scored