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Copy of Copy of Copy of Woody's Custom Woodworking
Transcript of Copy of Copy of Copy of Woody's Custom Woodworking
Spring 2014 Project Management Course
Project Appraisal Presentation
Shannon, Danean & Chris
Project Concept and Strategy
Was the Woody 2000 project well-conceived?
The objective had been clear at project inception but was never communicated
No project plan documented or no qualified project manager
This project was unlikely to be successful
What were Woody's real objectives that could and should have been articulated?
Expand production capabilities
Meet increased demand and new market vacancies
Maintaining the same quality
Objectives should have been communicated to all of the stakeholders
What strategies were there for achieving these objectives? What would you recommend?
Current strategy was to appoint an inexperienced project manager and hire a contracting company to manage and complete the project.
Recommendations: Consult with any of the 850 SMEs throughout project lifecycle, develop a plan to maintain production, house a backlog of products on site as part of a contingency plan.
Did they consider other solutions?
Project was planned in a “vacuum”
Pricing research was only conducted after original high quote by EID
Did not pursue other options
Planning and Scheduling
Progress Monitoring and Control
Contracting for Engineering and Construction Services
Communication and People Management
Risk Identification and Management
Facility Startup and Project Closeout
Why do you suppose renovation of the President and Executive Vice President's offices were included in the project and was that a good idea?
Continued support and approval for the project
Renovations were superfluous as they did not affect the project’s objective
Write a simple project scope statement.
The Woody 2000 project will encompass expanding its current production facilities, installation of new and more modern equipment to increase its productivity and meet new market demand within an 18 month time span and a budget of $17 million dollars.
Develop a work breakdown structure.
How should quality be approached, and what does it mean?
Quality and quality control are important aspects of project management as it ensures that project deliverables and end results meet or exceed the customer's expectations
Standards and acceptance criteria should be outlined, agreed upon by the customer, and communicated
Ensures project remains on target
Why did Leadbetter not invoke the specifications to ensure quality? What was the result?
He was unaware of the requirement
Shop drawings and plans sat waiting for approval and the schedule slipped by 2 weeks
Last minute changes caused by larger than expected equipment could have been caught ahead of time
What is the importance of Quality to a project like this?
The Woody 2000 project did not include definable quality standards or measureable goals.
No testing of equipment included into the schedule of the project.
The project did not satisfy the own project goals.
Defining quality standards are a necessity to make sure the project’s objectives are met and to determine completeness of the project and its success.
What should be included in a Woody 2000 project plan? What use would it be?
The project requires the creation of a project scope, charter, schedule, budget, communication, risk, contingency, and close out plan.
Ensures projects are well defined, communicated, monitored and controlled and successful.
Evaluate Woody's plans for managing the project, including their approach to contracting for professional services and construction work. What would you have done and would that change for successive phases of the project?
There was no plan for managing the project
Mr. Leadbetter was hired as the project manager
Mr. Moneysworth hired a contracting company and gave them free reign
A contracting company does not replace the need for a professional project manager
PM to work alongside the contracting company to monitor the project as sub-contractors take on and complete tasks throughout the project’s lifecycle
Did the project plan explain how the project and any changes would be controlled? Should this be part of the plan?
Woody 2000 did not include any project change controls
$1M contingency plan fund it was not implemented
Costs due to mistakes and changes can become unmanageable
Due to so many last minute changes and costs additional funds had to be sought elsewhere at an increased price
Identify and describe a set of project schedule milestones from project concept to project completion.
Illustrate your milestones on a simple bar chart scaled to the information provided in the Case Study.
Would a good baseline plan have helped to show that the project would not meet its schedule? If so, how?
How should float on the critical path have been managed? Would this have helped to complete on time?
The importance of a baseline and projects schedule
Managing the critical path
Critical path float
Develop a high-level estimate by "guesstimation".
How should the estimate be presented?
Is life-cycle costing a factor on this project?
Cashman kept his cash flow chart a secret. Why, and what would you have done?
High Level Guesstimation & Presentation
Life Cycle Costing (Cradle to the Grave)!
A cash flow chart represent the transactions of cash which will take place over the course of a given project.
What were the contracting alternatives open to Woody's? Which would have been best and what would that have involved?
Fixed Price Contract
Cost Reimbursable (CR): which includes
Cost-Plus-Incentive Fee (CPIF)
And the winner is........Cost-plus-incentive-fee because it caps the cost of the project and provides an incentive for the contractor to control costs.
How should the contract(s) be organized and tendered?
How should they be administered?
Tendering - Selective Tendering - the company advertises the project and invites contractors to apply to be placed on a selected list of contractors who will be invited to bid for the project. The benefit is that the company can select only those contractors, who have adequate experience, are financially sound, and have the resources and skills to do the work. The disadvantage is that a contractor’s circumstances can change after they have submitted the tender and cannot guarantee avoidance of troubles.
Were the original Woody 2000 project requirements delivered?
Draw a project organization chart. What were the real relationships?
Should Leadbetter have been left to run the project? Would training have helped?
How should the Woody 2000 project plan be communicated and when?
What communication (coordination) would you expect to see during execution?
Importance of understanding the "real" relationships
Who's running this show?
Communicating & executing a project plan
Would a good baseline plan have helped to make up time?
Had Ivar (EID's Project Manager) and Ian Leadbetter (Woody's Project Manager) worked together and established a Baseline with the Key Players in conjunction with a Change Control/Management Plan many if not all of the problems encountered could have been mitigated to some degree.
Draw a responsibility chart for effective control.
See Flow Chart
What would you have done when you saw that the project would not meet its schedule?
We would have discussed resetting the baseline with all stakeholders when serious problems impacting the schedule arose and revised all assumptions ahead of immediate issue.
Project records were apparently poor. What records should have been kept and how?
Meeting minutes, draft schedules, revisions, budgets and periodic construction updates; documents pertinent to all work products
A central repository and directory structure for all project documents should be set up
Appoint a "gate keeper" or records manager to control access and what is filed
Why was EID's first price so high? Was their position reasonable?
EID's price was high due to the lack of a detailed Statement of Work and Program of Requirements. Ian Leadbetter, Kim Cashman and Spencer Moneysworth failed to accurately plan their proposed project and allowed for too many uncertainties.
Ian, Kim and Spencer made too many uninformed budgetary assumptions and never worked through the proper contracting mechanism to achieve their budget with which could have taken place early on with EID.
Cost based on the assumptions could be perceived as reasonable
When did Woody's know they were in trouble with over expenditure? What was the result?
Woody's knew they were in trouble when costs escalated due to a multitude of changes resulting in delayed completion and their expenditures exceeding the budget.
This all resulted in the project being 85% complete and extending an additional line of credit to cover additional costs.
How should the project budget and expenditures be set out for cost control?
The budget and expenditures should be mapped out using a budget-focused planning phase where a Project Definition Document is created in conjunction with parallel work flows.
Draw a simple flow chart for processing changes?
See Flow Chart
How did EID handle their risks? Was this effective? What might they have done?
EID could have done a number of things that start with a Risk Management Plan
The plan should include a profile of all the risk factors, an assessment of the risks, a risk log and probability matrix
The Risk Management Plan would also need to include a risk response plan to describe the response strategies for each identified risk
List Woody's actual surprises and add other possible surprises. What was, or should have been, done to prepare for and respond to them?
The actual surprise was the initial EID budget and schedule
EID should have worked with Woody's and mapped their project out in a budget-focused planning phase
Were there changes? What were the impacts?
There were many changes beginning with the contracting mechanism, this is not a major issue and was mutually agreed upon at the beginning. Next there were changes to the production train specifications to increase capacity.
Impacts of the production train specifications resulted in 5 additional feet to the overall length of the building. Another impact, stemming from the lack of review in addition to the production train change, all the equipment anchoring points were not laid out prior to pouring the foundation.
How was startup managed on the Woody project? How should it have been managed?
EID’s Project Manager never worked with Leadbetter or Moneysworth on user acceptance, testing, dry-running of building systems
Leadbetter and Moneysworth hadn’t conceived any meaningful either
Ivar Kontrak, EID’s Project Manager, failed to work with Leadbetter and Moneysworth on building occupancy, the two week utility shutdown and the tie-in of power
EID and Woody’s should have discussed all of these key activities in the beginning
Ivar and Leadbetter should have established a responsibility matrix outlining who would be in charge of specific activities.
The Woody 2000 project was evidently not well run. Why?
The Woody’s project was run poorly for a number of reasons, specifically because there wasn’t a plan implemented for management, control and change.
Develop a list of "Key Success Indicators" that could and should have been measured on completion.
Completes within budget
Meets all stakeholder requirements
Completes on time
Achieves original purpose
Delivered as promised
Maintain a win-win relationship