Product Management: Yankee Chair Company

The Yankee Chair Company was anxious to get a new model rocking chair onto the market. Past efforts to introduce new models had resulted in frustrating failures. Bret Ricks, president of Yankee Chair, was determined that it would not happen again with the newest model. He had no confidence in his current management team, so he hired Jan Dymore, a local consultant, to organize and manage this project. He assigned a Yankee Chair manager, Tom Gort, to work with Dymore to start developing some talent for project management within the company. Dymore decided to set up a PERT network and guided Gort through the process of listing activities, assigning precedence, and estimating completion times. She also explained the critical path concept to Gort, who by this time had a reasonable grasp of the project direction. At the first review session with Mr. Ricks, the PERT approach was accepted enthusiastically, but toward the end of the review Dymore made some critical remarks about the product design and was subsequently released from the project.

Ricks then asked Gort if he could carry on the PERT approach by himself. Gort jumped at the chance, but later in his office he began to question whether or not he really could use the PERT network effectively. Dymore had made a guess at what the critical path would be and how long the project would take, but she had also told Gort that several other calculations had to be made in order to calculate the exact time estimates for each activity and the variances of those activity times. Gort really did not understand the mathematics involved and certainly did not want to look bad in Ricks’ eyes, so he decided to take Dymore’s guess at the critical path and get the best possible estimates of those activity times. By concentrating his attention on the critical path activities and ignoring the variance issues, he figured he could bring the project in on time.

Questions: Will Gort’s approach work? How much more of a gamble is Gort taking than any project manager normally takes? What should Gort watch out for?

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