TechNova is developing a next-generation wearable device. A…
TechNova is developing a next-generation wearable device. A competing product is scheduled to launch in 9 months, while TechNova’s original launch timeline was 15 months. To remain competitive, the company must accelerate its project schedule. The development process consists of three critical phases: Core Technology Integration Hardware Design Product Launch Preparation Each phase can be executed at one of three pace levels: Normal, Priority, or Crash, with corresponding time and cost tradeoffs. Due to time pressure, Normal pace is not permitted for the Hardware Design and Launch Preparation phases. TechNova has a budget limit of $18 million for the entire project. Time Requirements by Pace Level Level Core Technology Integration Hardware Design Launch Preparation Normal 4 months — — Priority 3 months 4 months 2 months Crash 2 months 3 months 1 month Cost by Pace Level Level Core Technology Integration Hardware Design Launch Preparation Normal $3 million — — Priority $5 million $6 million $4 million Crash $7 million $8 million $5 million Objective: Determine the optimal pace level for each phase to: Minimize the total project duration Ensure the total project cost does not exceed $18 million Questions: What is the minimum duration of the project? [duration] months What is the optimal policy (pace level) for the Core Technology Integration phase? [strategy] What is the total cost of the optimal project plan? $[cost] million
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