“For Value-Driven Project and Portfolio Manage in the Pharmaceutical Industry.”

Thus far in the course, you have completed a case study overview and a project charter. In this milestone, you will develop a project scope statement using the template provided. A data set for this case study has also been provided for your benefit.

Your project scope statement should include the following critical elements:

1.  

I. Introduction: A concise overview of the project.

II. Purpose and Justification: How does the project support business goals and objectives?

III. Scope Description: All known characteristics of the project’s product or service.

IV. High-Level Requirements: All known requirements of the project’s product or service.

V. Boundaries: What should and should not be included in the project?

VI. Strategy: Strategy to be used by the project team to manage the project.

VII. Acceptance Criteria: Criteria that must be met for the project to be considered “complete.”

VIII. Constraints: Limitations due to time, budget, technology, or other resources.

IX. Assumptions: Assumptions under which all stakeholders are making decisions.

X. Cost Estimate: Estimate of funding needed to successfully complete the project.

XI. Cost/Benefit Analysis: Analysis of organizational costs versus organizational benefits.

Prompt II

Once you completed your scope statement, you will set up your project using MS Project software. As you do this, you will be creating a WBS. In your WBS, you will identify what tasks need to be developed and the relationship among the tasks. This WBS will be used in planning your project. There is no need to go any further than a Level 3 in creating your WBS.

As part of the MS Project assignment, include project milestones and create relationships with all tasks with a start-to-finish dependency; create a project start time and document any assumptions you make in the task note field. If you choose to use it, a MS Project file has been created for your benefit. You can start with this and modify it as necessary, or you can create your own project using the software.

As needed, use the Infobase tutorials provided in the module resources to help you set up your project using MS Project software.

Your MS Project file should be a WBS that includes the following critical elements:

I. Project milestones

II. Relationship of tasks to one another

III. Notes in the task note field as necessary

Sheet1

Lifecycle Pharmaceutical Interest Rate = 5%
Assumptions for Valuation
Drug Candidate Current Stage Complete Phase I Complete Phase II Complete Phase III Drug Approval Remaining Development Costs
LC-1 Phase II NA Q2 2004 Q1 2006 Q2 2007 $100 MM
LC-2 Phase II NA Q2 2006 Q2 2008 Q1 2009 $300 MM
LC-3 Phase II Q1 2004 Q4 2007 Q2 2008 Q2 2008 $600 MM
LC-4 Preclinical Q2 2005 Q4 2007 Q1 2009 Q2 2009 $220 MM
PTC-Ph 1 PTC-Ph 2 PTC Ph-3 Probability of Approval PTC = Probability of Technical Success
LC-1 100% 40% 65% 75%
LC-2 100% 60% 50% 50%
LC-3 80% 60% 60% 75%
LC-4 70% 50% 75% 80% Clinical Phase Durations (estimates)
Phase I 1 year
Peak Sales Profit Margins Annual Expenses Phase II 730 days
LC-1 $600 MM 90% $40 MM Phase III 3 years
LC-2 $800 MM 90% $65 MM Drug Regulatory Submission 0.5 year
LC-3 $1,000 MM 80% $80 MM
LC-4 $750 MM 82% $65 MM

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