Launching tesla smartphone model pi project

Table of Contents I INTRODUCTION 1.1 OVERVIEW ABOUT BUSINESS .5 1.2 VISION, MISSION, CORE VALUE 1.3 INTRODUCTION ABOUT THE PROJECT .5 II APPROACHES TO PROJECT SCREENING 2.1 ANALYTICAL HIERARCHY MODEL 2.2 NET PRESENT VALUE III STAKEHOLDERS ANALYSIS IV OPPORTUNITIES AND CHALLENGES 12 V STATEMENT OF WORK 14 5.1 INTRODUCTION AND BACKGROUND 14 5.2 OBJECTIVES .14 5.3 LIMITATIONS 14 5.5 MILESTONES 15 5.6 APPROACH .15 5.7 CONSTRAINTS 15 VI WORK BREAKDOWN STRUCTURE 16 VII RESPONSIBILITY MATRIX 17 VIII THE ESTIMATED BUDGET 19 8.1 TOP DOWN .19 8.2 TIME PHASED - COSTING 20 IX AN IN-DEPTH SCHEDULE 21 9.1 DURATION TABLE 21 9.2 GANTT CHART 21 9.3 AON NETWORK 22 X RISK ANALYSIS 25 10.1 RISK BREAKDOWN STRUCTURE 25 10.2 QUALITATIVE RISK ASSESSMENT 26 10.3 QUANTITATIVE RISK ASSESSMENT 29 10.4 RISK MITIGATION STRATEGIES 30 XI CONCLUSION 33 REFERENCES 34 GROUP MEMBER CONTRIBUTION 34 Q1 A project has the activity duration and cost information indicated in the table where all times are in weeks There is a penalty of $5,500 per week for every week the project extends beyond 43 weeks What is the lowest total cost for completing this project? AON network Paths: ABEH: 44 weeks ABDFH: 44 weeks ACDFH: 48 weeks => Critical path ACGH: 46 weeks Decrease weeks of activity F, new Paths is: ABEH: 44 weeks ABDFH: 42 weeks ACDFH: 46 weeks => Critical path ACGH: 46 weeks => Critical path Decrease weeks of activity H, new Paths is: ABEH: 41 weeks ABDFH: 39 weeks ACDFH: 43 weeks => Critical path ACGH: 43 weeks => Critical path There is a penalty of $5,500 per week for every week the project extends beyond 43 weeks After decrease weeks of activity F, the total cost for completing project is: $126,000 + $1,500*2 + $5,500*3 = $145,500 After decrease weeks of activity H, the total cost for completing project is: $126,000 + $1,500*2 + $3,000*3 = $138,000 After decrease week of activity A, the total cost for completing project is $126,000 + $1,500*2 + $3,000*3 + $4,000 =$142,000 Therefore, the lowest total cost for completing the project is $138,000 in 43 weeks Launching Tesla Smartphone Model Pi Project I Introduction 1.1 Overview about business Tesla is an American multinational automotive and clean energy company headquartered in Austin, Texas Tesla designs and manufactures electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services Tesla is one of the world's most valuable companies and remains the world's most valuable automaker with a market capitalization of more than US$550 billion In 2021, the company had the most worldwide sales of battery electric vehicles and plug-in electric vehicles, capturing 21% of the battery-electric (purely electric) market and 14% of the plug-in market (which includes plug-in hybrids) 1.2 Vision, mission, core value Vision Tesla’s vision statement is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” The vision statement acknowledges that the world has come to an era where only renewable energy should be prioritized In the case of Tesla, the focus is on the use of electric energy to power all motor vehicles Mission Tesla’s mission statement is “to accelerate the world’s transition to sustainable energy.” The mission statement by Tesla shows the shift towards business approaches that are more futuristic The focus on sustainability indicates the compliance of the company with global demands of business methods that align with calls for green energy Tesla adopted this mission statement after abandoning the earlier one whose focus was on transitioning the world to sustainable transport In this case, the company demonstrates its focus on energy as the critical aspect of its business Core values Tesla’s core values comprise “doing the best, taking risks, respect, constant learning, and environmental consciousness.” Tesla applies these values as the principles that govern the overall attitudes and practices of all stakeholders and its workforce 1.3 Introduction about the project - Project: Launch of the Tesla Smartphone Model Pi - Time of project: year - Total investment: $5,000,000 This is a project to launch Tesla's phone to the international market This international project can bring huge profits to the company in the future.In the first half of 2023, the product will be in the testing stage, Tesla's management and Board of Directors are sure that, if the project is successful, Tesla will compete with Apple or Samsung - Industry Giants telephone industry It will be a new breakthrough for the company and open up a new opportunity for them II Approaches to Project Screening 2.1 Analytical Hierarchy Model Tesla Smartphone Financial – 65.25% Model Pi Total A1: Long term – 75% A2: Short term – 25% Strategic – 24.15% B1: Increasing Market Share – 30% B2: Strengthening Brand Awareness – 35% B3: Developing Effective Communication – 35% IT infrastructure – 10.6% C1: Minimizing Project Risk – 54.34% C2: Updating with new technologies – 45.66% 100% Allocating Weights To Criteria A B C A 1/3 1/6 B 1/3 C Total 10 4.3 1.5 It is clear that financial criterion has a much more significant impact on our project rather than two other criteria The table above illustrates the proportion importance of each criterion on the first hierarchy level All of them have subcriteria The financial benefits criterion receives a weighting value of 65.25% which is split into Long-term benefits (75%) and Short-term benefits (25%) That means the long-term financial benefits play a more crucial role than short-term financial benefits Then, by those configurations, these two criteria receive an overall weighting of: A1 = 0.6525 x 0.75 = 0.4893 A2 = 0.6525 x 0.25 = 0.1631 Next, weighting value for the Contribution to Organization Strategy criterion which have three subcriteria: Increasing market share (30%), Strengthening brand awareness (35%), and Developing effective communication (35%) that equals to 24.15% Those values are translated on the first level equal to: B1 = 0.2415 x 0.3 = 0.0724 B2 = 0.2415 x 0.35 = 0.0845 B3 = 0.2415 x 0.35 = 0.0845 Finally, the Contribution to IT infrastructure criterion was valued at 10.6% with two subcriteria: Minimizing project risks and Updating with new technologies Since the product of this project is a high-tech device, the top objectives in the operation would be to control the risks created from technologies skillfully On the first level, these values are transformed: C1 = 0.106 x 0.5434 = 0.0576 C2 = 0.106 0.4566 = 0.0483 Assigning Numerical Values To Evaluation Dimensions Our evaluation scale has five dimensions which are poor, fair, good, very good, and excellent In this figure, for purposes of illustration, we have assigned the values of 0.0, 0.1, 0.3, 0.6, and 1.00, respectively, to these dimensions · Poor – 0.00 · Fair – 0.1 · Good – 0.3 · Very Good – 0.6 · Excellent – 1.00 Evaluating Project Proposals In the final step, we are going to evaluate possible alternatives to see which is the most potential project to implement We would multiply the numeric evaluation of the project by the weights assigned to the evaluation criteria and then add the results for all criteria Those two projects have received nearly the same result which is a record 0.1341 of difference However, the higher result observed at the Model Pi Project of 0.9476 in total Although both of them are interesting choices to take into consideration, the Model Pi Project is the best option to implement for our company 2.2 Net Present Value In this project, the initial investment will be $5,000,000 We assume that the discount factor rate equals to 10%, the tax rate of 7.5% according to the U.S imposed tax on electronics (BDO Tax News, 2019) • Income Statement Analysis Year Quantity 150,000 240,000 350,000 500,000 Price ($) 550 550 570 600 82,500,000 132,000,000 199,500,000 300,000,000 3,150,000 5,250,000 7,150,000 8,200,000 Fixed Cost 15,500,000 20,000,000 33,500,000 40,500,000 Income Before Tax 63,850,000 106,750,000 158,850,000 251,300,000 4,788,750 8,006,250 11,913,750 18,847,500 59,061,250 98,743,750 146,936,250 232,452,500 Sales Variable Cost Tax (7.5%) Income After Tax • Net Present Value Year Initial Investment -5,000,000 Income After Tax Net Cashflow -5,000,000 Discount Factor (10%) NPV -5,000,000 NPV 715,353,167  59,061,250 98,743,750 146,936,250 232,452,500 59,061,250 98,743,750 146,936,250 232,452,500 0.90909 0.82645 64,967,375 119,479,938 0.75131 0.68301 195,572,149 340,333,705 The NPV of the Model Pi project is positive which means that our project is possible to implement III Stakeholders analysis The owner of the project is Tesla Inc because Tesla is the main source of funding and uses the project's supply capacity The other stakeholders of this project are: Project developers (developing the phone), planning leader (designing the project plan), Managers (coordinating the staff ), suppliers (who provide the raw materials), distributors (sending products to customers) investors (who provide financial backing for the enterprise), and customers (purchasing the cars) Stakeholders Interests Obligation Issues Tesla Inc - Earn revenue - Increase brand’s awareness - Provide None financing for the project - Take main responsibility for the project - Finalize the last resort Project developers - High income - Achievements - Opportunities of promotion - Creating the - Unsatisfactor phone that could y blueprints meet the and trials, standards set by need a lot of the project’s adjustments owner Address None - The team should meet weekly with the project owner, to be able to agree from the very beginning of the idea, then continuously update the project owner on the production process Planning leader - Accumulate more experience and achievements in the field of planning design for construction projects - High income Make a plan according to the requirements of the project owner (financial, operational, investment, ) Receive feedback from the project owner about the plan and then make adjustments Manager - Salary - Manage the - Achievements project to run - Opportunities effectively and of getting finish on time promotion - Outlining the responsibilities of the participants - Project progress management - Periodically update the project’s owner on the project's status Staff - High income Different working styles lead to misunderstandi ng the project owner's intentions So the plan may be adjusted many times Requirements should be as detailed and understandable as possible Conflict - Make sure that between each team opposing member's tasks personalities are clearly occurs soon stated after the project - Plan feedback management sessions, team is formed, monthly particularly meetings to when there is improve limited contact communication among the within the team members - The team should be transparent in discussing group objectives as well as problems that impede progress or have an effect on the team's strategy, tactics, and efforts - Finish all the - Conflict tasks that are between assigned by the opposing managers personalities in a team - Delay deadlines - The team should be transparent in discussing group objectives as well as problems that impede progress or have an effect on the ... 1.3 Introduction about the project - Project: Launch of the Tesla Smartphone Model Pi - Time of project: year - Total investment: $5,000,000 This is a project to launch Tesla'' s phone to the international... the project is to successfully bring the Tesla Smartphone Model Pi to affordable consumers within year at a cost of no more than $5.000.000 5.3 Limitations Satellite smartphone Tesla Model Pi. .. lowest total cost for completing the project is $138,000 in 43 weeks Launching Tesla Smartphone Model Pi Project I Introduction 1.1 Overview about business Tesla is an American multinational automotive