1- List all the benefits identified in the case study noting:

1.1 Drivers for Achievements

1.2 Scale of measure - Tangible vs intangible- Direct vs indirect- Planned vs emergent.

1.3 Metrics Adopted in the case study.

This document contains ink, shapes and i... This case study has been used to demonstrate how to properly follow the project throughout its life to benefits realization. It highlights the value of a robust benefits specification, both as a scope clarity mechanism and also to challenge whether the project has been successful. Situation: The case study is based on a project initiated for a major refurbishment of a pharmaceutical manufacturing complex. The facility manufactures a number of (chemical process) stages of a product which was coming under: - increasing pressure from generic competition - the need for low-cost supply for developing countries - fluctuating demands. The case study is structured around the project lifecycle but focuses on the benefits activities of each stage. The four stages of the project lifecycle are: 1. Business case development - the need for the project and its impact on the business. 2. Project delivery planning - how the project will be delivered. 3. Project delivery - delivering the project. 4. Benefits delivery - ensuring that the project delivers the anticipated business benefits. In terms of the benefits, the four stages essentially focus on the following questions: 1. Identification - what are the benefits? 2. Planning - how will they be delivered? 3. Monitoring - are they being delivered? 4. Reviewing - is the business seeing the benefit? Project approval and delivery process: Within the organization, project approval, funding and delivery are very prescriptive processes developed around the typical engineering roadmap: Conceptual design - initial funding is established by the site and the output of this stage is an estimate and outline benefits case for corporate approval to move to the next stage. Detailed design - funding (usually a fraction of the total estimate) is sanctioned at divisional level and is used to establish a comprehensive cost and benefits estimate for the next stage. Procurement/construction/commissioning - full funding is committed at divisional level and the major costs are incurred. Customer acceptance/handover - marks the point at which the project ceases direct involvement and the site assumes operational responsibility. This is also the point at which an after-action review is undertaken to evaluate project delivery and confirm the project met its target deliverables and benefits. Project selection: The preexisting physical assets at the facility (e.g. vessels and pipework) were in good condition, and a preliminary analysis of the production processes showed that major contributors to production costs were: - Raw material Costs - Labor costs. - Energy for process heating/cooling. Initiatives are in place to address the procurement costs for raw materials and energy. A project to reduce labor costs and improve vield and consistency through the use of automation was selected for further investigation. Conceptual design: A study was undertaken to evaluate the feasibility, benefits and cost of automating the manufacturing complex processes. It was a large-scale study taking approximately 3 months and involving a team of 6 engineers from various disciplines, as well as local site personnel. The study looked at: - Process operation (through evaluation of, e.g. pipework and instrumentation drawings (P \& IDs), standard operating procedures (SOPs)). - People (through interviews across all site personnel). - Problems (e.g. recurrent errors, waste, losses). A concept design was developed with the following key deliverables: 1. New instrumentation - the existing instrumentation is dated and inadequate to support automation. 2. Process control system providing full automation. 3. Electronic data capture and recording - to replace current manual methods of recording important information. 4. Electronic Batch Record System (EBRS) - to replace the existing paper record system. 5. The mapping of these deliverables against benefit areas is shown in Table below This document contains ink, shapes and i... Table 1: Impact of deliverables on benefit areas Benefit estimation: The benefits estimation activity involves expanding the impact assessment (Table 1) to explore the detailed benefit in each key area (Table 2). The benefits definition should then be developed through formal specification: identifying Specific, Measurable, Appropriate, Realistic and Timebased (SMART) metrics (Table 3). The output of the study was a cost and benefit summary to 30% (with comprehensive backup detail) outlining the potential for the project. This output was used to justify funding to move to the next, detailed design phase. Detailed design and project delivery planning: The aim of this phase of the project is to complete the detailed design to the point at which project procurement and implementation can start, and to establish costs to 10%, allowing full funding to be requested and the project formally initiated. This document contains ink, shapes and i... production throughput of approximately 10% Project Management Toolkit - Benefits Specification Table 3 The detailed design phase essentially took the conceptual design and expanded the specifics to establish costs from customary norms. The costs were therefore established relatively quickly. However, elaborating and justifying the benefits was significantly more difficult. The implementation of this type of technology at the site was new (the use of electronic batch records were novel within the division), so the site personnel review of the benefits was very extended (almost 6 months), involving repeated value engineering and challenges. From the benefits map, it is clear that the instrumentation and control components of the project appear to deliver significantly more hard benefits than the data capture or EBRS components. The novelty of the technology (particularly EBRS) also introduces an element of risk that the project costs could escalate or that the benefits would not be achieved. Within the project, a formal value engineering exercise was then undertaken to challenge the The extent of the instrumentation required to deliver the benefits (replace only the poorest performing instrumentation) and to challenge the viability of the data capture component and EBRS. The challenge with the data capture and EBRS components was much more of a 'soft ' issue than a 'hard ' project deliverable. There was significant resistance to the change in ways of working (WoW) and the potential regulatory impact. To address these, a series of workshops were carried out during the detailed design phase. The workshops covered the following: Technology awareness and understanding - a fundamental pre-requisite to looking at WoW. Business process - WoW and the impact on personnel. Regulatory - what will the impact be from an internal and external perspective? The workshops took place both with local site personnel and, especially in the regulatory area, with divisional representation. The principle aim of the workshops was to establish that the technology worked, that the change to business process was achievable and that there were no obstacles to delivering the benefits. Ultimately, the data capture and EBRS elements were considered essential in light of some of the anticipated soft benefits. These included. - Improving the potential of the facility for new product introduction. - Enhanced compliance and traceability. - Support for process analysis and improvement. - Enabling remote support of the facility. Whilst not delivering direct benefit to the project, these soft factors did in fact meet previously unvoiced stakeholder needs, through the positioning of the facility for additional business within the company. This phase of the project highlights two important aspects during benefits planning: - A clear understanding and agreement from the key project stakeholders in what and how benefits will be delivered is essential. Otherwise there is a very high risk that during project delivery one or more of the benefit areas will be sacrificed to short-term project expediency. - There is a need to look beyond the direct benefit areas to try and establish other 'soft ' or ' hard ' benefits that could drive stakeholder acceptance and support. At the end of the detailed design phase, a comprehensive business plan was completed and submitted for formal approval