PRM301 Introduction to Project Management SLP Module 1: Project Selection and Initiation George F. Rosa The younger generation of the company's leadership wanted to see Woody's enlarged so it could take a greater market share and respond to increases in demand. While these goals might have been creditable, the project suffered from a great deal of lack of foresight and planning, major communication issues among the various project leaders and designers, and an overall lack of control that led to many expenditures, a significant loss in productivity, and a near-total failure that had a negative impact on morale and company loyalty. No one acted with malicious intent or even laziness in order to lead to the outcome in the attempted expansion project, but a lack of expertise and over-ambition caused a failure nonetheless. The solution to this problem would be to start out with a better project plan, maintaining a more centralized project leadership team so that all elements remained coordinated and ensuring that adequate communication took place between all stakeholders as each phase of the project was planned and then implemented, as well as more client involvement. Leveraging a program such as Microsoft Project to track and report on the project would greatly improve the project's success, allowing for a more detailed WBS structure and following project management methodologies. Weekly status meetings and project status reports to stakeholders would also be a great benefit in addition to: Paying greater attention to documentation follow up Updating the risk management plan Coordinating design reviews at every stage with stakeholder signoff Following those recommendations it will be realistic to successfully implement the project, reaching the project goals and delivering the project within the defined time frame and budget limits. PRM301 Introduction to Project Management SLP Module 2: Project Planning George F. Rosa The Woody 2000 venture was set up by the administration of The Custom Woodworking Company(also known as Woody's) situated at a current office in Industrial Estates, Someplace, BC and millwork producing office and was begun in 1954. The official administration group incorporates Mr. Ron Carpenter, Chairman; Mrs. Emelia Carpenter, President; Ms. Kim Qualey, Executive Vice President Mr. John Carpenter, Director. The organization is secretly held with the real shareholder being Emelia Holdings Ltd. The organization in the blink of an eye has roughly 850 workers and has yearly incomes of around $93,250,000. The organization has a supporting administration staff that incorporates Mr. Miles Faster, Vice President of Production; Mr. Spencer Moneysworth, Vice President of Finance; Ms. Molly Bussell, Vice President of Personnel; Mr. Bruce Sharpe, Vice President of Sales and Estimating; and Mr. Kim Cushman, Controller. b. Items and administrations gave by the organization The organization makes furniture, cabinetry, and custom millwork. Amid late years with the expansion in business development action, Woody's has moved their center to subcontracted millwork for new advertisement development. The organization has had an amazing notoriety in the commercial center and has delighted in higher benefit on their most recent undertakings. . History of proposed extension In 1989, Mr. Bruce Sharpe influenced the official administration that there was a requirement for development because of the conceivable outcomes of expanded deals from an extending arrangement of development undertakings. Mr. Miles Faster presented extending their offices to another area to Mr. John Carpenter, who thus conveyed the thought to the official group for examination with Mr. Kim Cashman and Mr. Spencer Moneysworth. The gathering talked about what was offered and Mr. Cashman and Mr. Moneysworth couldn't help contradicting moving the office and suggested an extension at the present office. Mr. Ron Carpenter held a meeting with the official administration and key pioneers, and through much talk and open deliberation it was resolved that there would be a 25 percent extension to the current floor space of the building. The proposed extent of work included development option of the building, establishment of new ventilating framework, establishment of a dust free paint shop with extra compressor limit, the advancement and establishment of another creation train including new equipment and programming, and redesign of the official workplaces. C. History of proposed extension In 1989, Mr. Bruce Sharpe induced the official administration that there was a requirement for development because of the potential outcomes of expanded deals from a growing arrangement of development activities. Mr. Miles Faster presented growing their offices to another area to Mr. John Carpenter, who thusly conveyed the thought to the official group for dialog with Mr. Kim Cashman and Mr. Spencer Moneysworth. The gathering talked about what was offered and Mr. Cashman and Mr. Moneysworth couldn't help contradicting moving the office and suggested an extension at the present office. Mr. Ron Carpenter held a meeting with the official administration and key pioneers, and through much discourse and level headed discussion it was resolved that there would be a 25 percent development to the current floor space of the building. The proposed extent of work included development option of the building, establishment of new ventilating framework, establishment of a dust free paint shop with extra compressor limit, the improvement and establishment of another creation train including new equipment and programming, and redesign of the official workplaces. d. Endorsed budgetary duties for the proposed Woody 2000 undertaking At a meeting with the official administration and key pioneers, Mr. Ron Carpenter consented to submit $17 million dollars as the greatest cost to finish the whole venture and he set up a deadline for consummation of the undertaking in year and a half. It was resolved that Mr. Moneysworth would be in charge of the task. Amid the arranging stage, Mr. Moneysworth chose not to include contribution from the generation staff and welcomed a surely understood contractual worker called Expert Industrial Developers(EID) to cite the venture. There was no composed arrangement or configuration reports at the time. Mr. Cashman built up a 12 month income based with the first and a month ago spending plan being 1 million dollars and the remaining 10 months at 1 million every month, furthermore, a 1 million dollar possibility was put aside. The graph was not utilized as an administration apparatus to survey genuine to figure and really was secured away his work area. It was likewise established that all real expenses to the task would be recorded in the organization's typical accounting methods. e. Foundation on contractual worker procurement 1. Unique citation got Mr. Moneysworth asked for that EID present an altered value proposition and the preparatory evaluation was $20 million in view of a 18 month plan. The proprietor did not give a composed project, drawings or nitty gritty details bringing about an excessively cushioned citation from EID. 2. Contract arranged Subsequent to arranging, EID consented to give development administrations in view of a completely reimbursable contract without an ensured greatest price(GMP). The agreement depended on an expense in addition to on settled contracts with the proprietor paying for delicate cost reimbursable costs. The temporary worker was in charge of the building, obtainment, development and dispatching of the office and they subcontracted the outline to Schemers and Plotters (S&P). The EID proposition was endorsed by official administration. There will be some issues with respect to the agreement that will be assessed later in this anticipate arrangement. 3. Last temporary worker citation and discharge Subsequent to arranging and marking of the agreement, EID was given the approval to start the undertaking. There was no formal notification to continue given and the term of the venture was not nearly checked or contractually indicated. f. History of outline stage 1. The arrangement of a proprietor's illustrative As the outline stage was in progress, it was resolved that a proprietor delegate would be important to speed up proprietor choices and endorsements. Mr. Ian Leadbetter, a mechanical and programming designer, was named as the proprietor agent despite the fact that he needed task administration preparing and encounter. 2. Proprietor gave obtainments i. Generation train ii. Programming configuration and establishment Mr. Leadbetter gave impressive commitments to the mechanical and programming side of the undertaking, yet he did not have the important venture administration strategies and procedures. Right on time inside the gear and programming outline stage, EID asked for that the proprietor deal with the acquisition of the creation train. Because of disgraceful change request systems, Mr. Miles Faster ventured in and changed the generation train particulars keeping in mind the end goal to expand limit. 3. Disappointments in submittal audits Mr. Leadbetter was possessed with the product advancement and does not have an institutionalized procedure set up for the endorsement of submittals and other key task administration proprietor forms. 4. Plan process disappointments There was not a procedure that was set up to manage the extension of the generation train. This change brought on the product outline work that was finished to be disposed of bringing about Mr. Ledbetter's have to concentrate on overhaul of the product and not on his obligations of encouraging and imparting data between all gatherings. Since there were no procedures on request for submittal surveys and endorsements, there was a noteworthy postponement in the conveyance of the generation train gear. 5. Proprietor to subcontractor interface Amid the development stage, there were various issues that came about including between coordination of shop drawings to plan bringing about the structure of the working to be composed five feet not exactly required for the generation train, proprietor delegates leading business with subcontractors without the temporary worker being available, and different issues with procedure and specialized administration. There was not an interchanges arrangement set up for the task and it appeared as though everybody was "doing well in their own eyes". g. Foundation on task close out and dispatch 1. Disappointments in finish plan 2. Issues with inhabitance grants 3. Outcomes of venture fulfillment disappointment 4. Taken a toll invades and the requirement for extra financing The venture was nearing finish two years after dispatch and there were deferrals because of various shortages in the undertaking administration framework. The administration neglected to consider EID responsible for undertaking fulfillment and closeout creating delays in timetable. EID did not give the building occupation license nor did they consent to planning necessities for utility tie-ins bringing about a few weeks in lost generation. Because of the deferrals, numerous clients crossed out their requests and inventories were drained. There was a clear diminishing is deals incomes amid this period. The income was further influenced when Mr. Cashman found that the task was over spending plan and just at 85 percent finish. They acquired an extra credit extension, at an unnecessary premium, with a specific end goal to cover the extra costs caused on the task. h. Decrease in deals 1. Market powerlessness 2. Staff disagreement 3. Procuring of advisor for inner inspecting 4. Requirement for the proposition and examination of appropriate undertaking arranging and execution Because of the current situation with the economy. 1. Outline audit We would audit Architectural and Engineering Design Services Agreements and guarantee that these understandings have authoritative date limitations and outline to spending plan parameters. They plan specialists would be committed to meet the general task plan determined as Exhibit A. 2. Survey Programming Objectives a. Affirm the Woody group general wishes, expectations, objectives and targets for their extension and build up a complete needs evaluation. The requirements evaluation would be aggregated amid the key arranging sessions and individual office center gathering gatherings. b. Affirm the long range office techniques and the essential deals and showcasing systems expected to keep the new creation train generative for its appropriate creation to payback proportion. Survey Programming Documents a. Affirm the appraisal and review of Owner's current offices and decide particular needs to anticipated incomes. Furthermore, we should survey existing operations to guarantee that generation is not influenced by the development procedure. b. Affirm client meetings of existing spaces to decide nature of space, backing and logistics by center gathering sessions with fitting office agents. c. Affirm the Owner's office needs are completely reported by the utilization of a system manual and requirements evaluation log. d. Coordinate with the official group the general asked for project to translate amongst requirements and needs and acquire important endorsements. 3. Audit/Maintain Overall Project Budget (OPB) a. Affirm the Owner's needs and imperatives with respect to general venture spending plan and create brief planning all through configuration advancement stage. b. Affirm coordination of the financial backing with the system to guarantee adequate assets are put aside and that the sequencing of work is in accordance with anticipated income. c. Decide income necessities and projections for the span of the expert calendar and organize with the account office. d. Get ready intermittent reports to archive the arranged income versus real income and report to the Woody 2000 official directing panel. 4. Survey/Maintain Overall Project Schedule (OPS) a. Accept the preparatory timetable and grow the last venture plan and distinguish significant breakthroughs and the basic way for undertaking. b. Approve real colleague's needs, obligations and point by point planning of colleague's work including proprietor supplied hardware, subcontractors, and the whole venture workforce. c. Build up timing of real endorsements whether inside the group or by the legislature or nearby group. 5. Survey Site Due Diligence d. Zoning and Surveys - Coordinate and affirm endorsements for appropriate allowing. a. Transportation - Confirm the need of an activity administration plan to guarantee the 850 existing representatives have abundant stopping and are not influenced by the development. b. Legitimate limitations - Confirm endorsements for gear and new paint shop zone. c. Easements and Covenants - Confirm that there are no easements where the proposed expansion would be developed. d. Ecological reports and Soils examination - Confirm that all dirts reports are adequate for the new building footers and structure. e. Presence and limit of utilities and framework - Coordinate with the fitting service organizations to affirm that all extended utilities are planned legitimately and immediately. f. Decide government offices and group organizations that need to been required in the undertaking. g. Decide appropriate government and group organization prerequisites, endorsements and grant. b. Plan Process 1. Affirm Procurement Agreements - Design Services a. Affirm rundown of specialists, temporary workers and merchants whose administrations might be required in the acquiring of configuration administrations. b. On the off chance that vital, create or affirm the improvement by others of degree definitions for obtainment bundles including offer bundling techniques. c. Screen the advancement of understandings to be recompensed to effective bidders, all required contracts must be founded on hard numbers or ensured most extreme estimating. 2. Execution Compliance a. Coordinate the particular of materials with the Owner's needs there ought to be cautious thought given to the generation train hardware. b. With the configuration experts, create techniques for material testing and test reporting. 3. Advisor Coordination a. Screen the coordination of advisors and sellers in such territories as the creation train gear and other specific hardware important for the development space. 4. Program and Design Compatibility a. Affirm with the configuration advisors that the creating outlines are good with the project, expert timetable, expert spending plan and quality desires. b. Affirm with the outline experts that the configuration as created is perfect with the Owner's needs. 5. Submittals a. Screen outline submittals and endorsements. b. Coordinate acquiring Owner endorsement for the remaining strides of the configuration procedure. 6. Protection a. Affirm that outline advisors have and keep up protection as per the Owner's needs. 7. Taken a toll Control a. Oversee acquisition of reasonable appraisals of development expenses. b. Help with quality designing thoughts. Woody case 2000 1 PRM301 Introduction to Project Management SLP Module 3: Project Execution and Control George F. Rosa Woody case 2000 2 Question One Based on the case presented on Woody's there was a lot of errors done leading to the start-up of the project, it's lay out and it's contracting. The project would have been more successful if they hired a contracting company and hire a well experienced and trained contractor to handle the process. This would have saved them a whole load of costs as all it would have required is conducting a few interviews, pick the right choice in terms of contracting costs and past projects done. The contracts should have been organized according to the areas they want fixed that is divide the tenders into groups that will be awarded to the best company to carry out that project according to the level of expertise it has. In that particular area. The tender should have been awarded in merit to the company that provides a better plan at a convenient cost not due to the relationship shared as was the case in this case. This proved to be costly later as they did the exact opposite of what was supposed to be done. As a result the original project requirements and estimates were not delivered this is because first the project ended up taking more time that it had been originally scheduled to and that went also to the costs involved which happened to be more than the one that the Woody's management expected the project would consume. Question Two The project was managed by various people the owner and CEO was Mr Ron Carpenter, her wife Mrs Emelia carpenter was the President and the executive Vice president was Mr Kim Qualey. And the son of the owner John Carpenter was the director. The other people with regards Woody case 2000 3 to the handling of the projects was Miles Faster who was the VP production, the VP finance and administration was Mr Spencer Moneysworth, the VP Personnel was Mr Bussell, the controller being Kim Cashman and the VP sales and estimating was Mr Bruce Sharp. Ian Leadbetter was the Project manager for Woody's project with Randy the principal Schemers and Plotters Industrial design consultants. The various relationships people held in the performance and before the performance of this project was the reason why this project never lived to achieve its full potential. For example if Leadbetter was just not given the job because of wanting to prove himself to John maybe the project would have survived. The other thing was that should have Leadbetter have been given training on project management the results would have been different because then contrary to the case now he would have known what was expected of him and what should be done in the event any complication popped up. Another problem was in the communication of the project. The project was communicated outside the confines of proper discussion channels. A big project like this would have involved suppliers and distributors to be involved in the decision making as long as other partners in a meeting that was supposed to be inclusive of everybody even the workers because once it starts it would have affected a lot of people. During execution therefore it would be wise for the executing parties before making a move they should consult with the other arms of people within the firm to ensure that there is no mistake of having duties duplicated or assumed altogether as a result of dangerous misunderstanding will ever take place. The other thing is that in future before making a big decision Leadbetter should consult with the CEO who I believe has a vast knowledge in almost everything given he was the founder. Woody case 2000 4 Question 3. In this case a baseline plan would have been super helpful. A baseline plan enables one to be able to keep things in control especially the time, costs and goal factors of the plan as well as the physical outlook of the plan. It sets targets as to when the project should be done, how and the costs that should be achieved however if the baseline plan is handed to people with little experience in the project management area it is equal to just being useless. In this project the responsibilities would have been assigned differently. This was supposed to be in the form of Commodity Release manager Informed Informed Project manager Program Manager Responsible Accountable Developer of the commodity Consulted Responsibility Plan commodity Accountable Develop Informed commodity Release Responsible Accountable Informed Informed commodity This is a RACI chart that shows how communication should take place in a project and who should be accountable and responsible to who with regards to the project. R stands for responsibility, A stands for accountability, C stands for Consulted and I for informed. On the next issue if I had seen the project had no taken its desired cause the first thing any reasonable person would have done is to a) Call for an impromptu meeting to get to know why whatever is happening is happening. b) If there is anyone found responsible for the mishaps, they should be dismissed. c) Replace any supplier or contractor that's delaying the project. d) Set a strict deadline for the people in charge with the project then. The project records were poorly kept and that's how the firm got itself left behind in carrying out the project. Should the records for the proposal plan been have kept and followed properly and the deadlines adhered to the following problems would not have occurred. Accounting information, deadlines and cost estimations should have been kept well and everybody in the Woody case 2000 5 firm instructed to treat the project work with urgency. This would have created a whole new situation. Question Four. At first EIDs project was ranked high at first because according to them, Woody's having not have taken another huge project like that before they would have needed considerable help from them, this coupled with a lot of uncertainties that clouded the project EID gave a budget of 20 million instead of the estimated 18. Woody's knew they were in trouble with expenditure when they found out that the expenses that were now riddling the project had gotten way out of hand and that the money they had set aside for completion of the project had been all but used and now they were to dig deep into money that was not supposed to be used for the project just when the project was 85% complete. The result was that Woody's found themselves overusing money to the extent that now they were spending it on everything to keep the project and the company running that other areas of the company got hurt leading to a mass exodus of consumers and suppliers as well because of the delay in service provision the above situation brought. The project budget and expenditure should be set out that in the event the expenses goes over the top, the company should set aside funds to meet that need. This reduces the chances of a firm going for last minute panic loans like in the case of Woody's project with crazy interest rates and which jeopardizes the future of the firm. FLOW CHART FOR PROCESSING CHANGES. Woody case 2000 6 Start of the project The request for change is received if the change is a good idea progress if not place it on the problems list Does the change require changing of plan or just the rating? No (change) yes (cont.) Define the type of result the change is likely to have. Woody case 2000 Finish the result part of the change plea form if the change is approved continue if not then place it on the problems list make the planned change. 7 Woody case 2000 8 QUESTION 5 EID did not handle their risks as expected this is because should they have handled it the way it was supposed to be handled the mess Woody got into should not have happened. They did not give Woody's the advice needed to have them set the structure up in the right place. Instead they let the project go on without providing direction and counsel. They should have done the job they were hired to do by providing direction and refusing to carry on with the project if their demands are not met, that's how they should have gone about that issue. Woody's surprises were a couple. They included: a) High costs than expected. b) The time they had set to have the project completed was not enough. c) They lost clients and potential business in the process especially in the portfolio they were known to be good in. d) Other surprises should have been the closure of the business due to debts should they have continued. To solve all this as earlier stated would have been; Woody case 2000 9 a) Hire competent contractor b) Make a baseline plan. c) The management should not have allowed holidays for two important people handling the project all at once. After the company started experiencing losses the management started fixing this issue by trying to settle anything that came up with borrowed money. This affected the credit worthiness of the company and led to delays in the provision of services by the firm. This meant that the company had to invest in a PR exercise but it was too late the damage had already been done. REFERENCES Cattani, G., Ferriani, S., Frederiksen, L. and Florian, T. (2011) Project-Based Organizing and Strategic Management, Advances in Strategic Management, Vol 28, Emerald, Woody case 2000 10 Harold Kerzner (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (8th Ed.). Wiley. F. L. Harrison, Dennis L. (2004). Advanced project management: a structured approach. Gower Publishing, Ltd. Khazanchi, D. (2005). Patterns of Effective Project Management in Virtual Projects: An Exploratory Study. Project Management Institute. Bjarne Kousholt (2007). Project Management -. Theory and practice.. Nyt Teknisk Forlag