You, as part of the project planning team, participate in planning the project in the context of the project management discipline described in the textbook. The result of your work must be documented in an Extended Project Charter. This document is called extended because it contains a bit more than a conventional project charter.

So, what is an Extended Project Charter (EPC)?

Usually, a project charter is a formal document that authorizes the project and guides all project decisions. It identifies the project scope, reason for the project and what it is intended to accomplish, it identifies the project sponsors, it assigns implementation responsibility and spending authority, it identifies milestones and gives special directions and constraints and it contains high-level risk management and communication plans.

However, in our case, we are asking for a bit more. The EPC should cover as a minimum:

Overview: The Ronnys Excellent Project

RON (RONNY) Carpenter = CEO and chief executive officer EMILIA Carpenter = runs the company, Rons wife JON carpenter = runs the management of the company, Rons son

KIM Qualey = executive and vice-president BRUCE Scharpe = VP Sales and Estimating MILES Faster = VP Production

KARL Cashman = controller

SPENCER Moneysworth = VP Finance and Administration

MOLLY Bussell = VP personnel

IAN Leadbetter = engineer specialized in semi-automatic programming

JON insistences to include construction industry work into the company.

Opportunity

This opportunity came out when Iceland has been booming for several years.

1. BRUCE and MILES pushed Ronnys directors to expand their manufacturing business.
2. JON who already had computer-controlled automation of the working process, pushed his father RONNY to consider this idea.
3. RONNY talked with his wife EMILIA.
4. EMILIA involved KIM and SPENCER in the debate.
5. KIM and SPENCER didnt like this idea because:
   1. There was already spare land on their property to extend the manufacturing.
   2. Moving the company means stopping the production and so wasting time.
   3. The nearest potential location was 25km further out from the residential area, it disadvantages almost all workers
6. RONNY called the key personal and his directors for a meeting.
7. In the end they decided not to move the company.

The project Concept

Idea:

1. Increase of 25% the manufacturing adding some new machines.
2. These machines need the development and installation of software and hardware which makes them work semi-automatically.
3. The President and Executive Vice Presidents' offices would be renovated.
4. MOLLY proposed that the project should be called RONNYs Excellence.
5. SPENCER becomes project manager of the RONNYs Excellence.

Cost and schedule:

1. The total cost of the work (not including office renovation) was estimated at 50 million.
2. RONNY accepted the project concept, but He doesnt want to spend more the 50 million and the project should be 18-months long.

Planning

SPENCER covers the part of the finance and administration manager.

1. SPENCER was enthusiastic about the project that quickly called an expert Industrial Developers (EID) to quote on the planned expansion.
2. SPENCER did not involve the production people in the planning.
3. Meanwhile, KARL developed a monthly cash flow:
   1. 5 million = contingencies (before to start)
   2. 5 million = the first and the last month
   3. 2,3m = each month
   4. All the other cost would be recorded as part of the company's normal book-keeping
4. EID presented a project cost of 80 million.
5. SPENCER wanted to reject the EID proposal because its cost and He started inquiries elsewhere.
6. At this moment, EID proposed an hourly rate to pay all the workers involved into the project.
7. SPENCER found this idea interesting because He thought It was easy to manage workers' schedules
8. In the end, SPENCER called all the RONNYs directors to make the project runs.

The design

1. Some months after the project started, SPENCER realized he needed help with paperwork.
2. So JON called IAN, an engineer specialized in semi-automatic programming, to help SPENCER.
3. IAN had good programming skills but no experience in this area above all about "project life-cycle" and "control concepts".
4. EID suggested that RONNYs directors should take care of the production train directly cause IAN didnt have experience in that area.
5. Meanwhile, MILES changed the production train specification to increase capacity, these new specifics involved a change about the software.
6. It put IAN in difficulty to write the code for the new software.
7. SPENCER and IAN skipped some review and approval procedures by the suppliers of the production train, actually, they didnt know about these procedures.
8. For this mistake, the delivery schedule slipped two weeks and it brought other conflicts for the new services.

Construction

1. After they changed the production train specification, they realized that the new space they were building wasn't bigger enough
2. That was a big issue because the foundations had already been poured.
3. They first built and then they checked the compatibility of the machines (big mistake!).
4. Meanwhile, IAN was not satisfied with the installation of the machines and instead of talking with EID's Project Manager (He didnt it because the documents havent been approved yet), He talked with the mechanical sub-contractor: this brought new conflicts.
5. Thus, the working was going on with old surplus paint disposal arrangement and the official inspection authority figured it out and forced the company to change disposals: this brought new conflicts.

Startup

After two years they started the project

1. SPENCER and IAN had not prepared any meaningful planning for completion such as:
   1. inspection and acceptance of the building
   2. testing
   3. dry-running and production start-up of the production train
   4. They didnt obtain any building certificate by EID
2. SPENCER and IAN delayed the delivery of the project, It involved:
   1. Troubles with energy contracts for the train production
   2. Troubles with customers who already had contracts.
      1. Some of them deleted the contract.
      2. Some of them received the furniture with a long delay
3. The company was failing, the last stock was exhausted and other sales opportunities were also lost.
4. RONNY 's reputation collapsed.

Questions:

1-Scope the project.

2-Define project objectives (SMART).

3-Prepare numbered WBS.

4-Prepare OBS for the project