16 Case study &D PROJECT MANAGEMENT Project manager: My biggest problem is working with these diverse groups that arent sure what they want. My job is to develop new products that can be introduced into the marketplace. I have to work with engineering, marketing, product management, manufacturing, quality assurance, finance, and accounting. Everyone wants a detailed schedule and product cost breakdown. How can I do that when we arent even sure what the end item will look like or what materials are needed? Last month I prepared a detailed schedule for the development of a new product, assuming that everything would go according to the plan. I worked with the R&D engineering group to establish what we considered to be a realistic milestone. Marketing pushed the milestone to the left because they wanted the product to be introduced into the marketplace earlier. Manufacturing then pushed the milestone to the right, claiming that they would need more time to verify the engineering specifications. Finance and accounting then pushed the milestone to the left, asserting that management wanted a quicker return on investment. Now how can I make all of the groups happy? Vice president: Whom do you have the biggest problems with? Project manager: Thats easymarketing! Every week marketing gets a copy of the project status report and decides whether to cancel the project. Several times marketing has canceled projects without even discussing it with me, and Im supposed to be the project leader. Vice president: Marketing is in the best position to cancel projects because they have inside information on profitability, risk, return on investment, and competitive environment. Project manager: The situation that were in now makes it impossible for the project manager to be dedicated to a project where he does not have all of the information at hand. Perhaps we should either have the R&D project managers report to someone in marketing or have the marketing group provide additional information to the project managers. SMALL-CUSTOMER PROJECT MANAGEMENT Project manager: I find it virtually impossible to be dedicated to and effectively manage three projects that have priorities that are not reasonably close. My low-priority customer always suffers. And even if I try to give all of my customers equal status, I do not know how to organize my work and have effective time management on several projects. Project manager: Why is it that the big projects carry all of the weight and the smaller ones suffer? Project manager: Several of my projects are so small that they stay in one functional department. When that happens, the line manager feels that he is the true project manager operating in a vertical environment. On one of my projects, I found that a line manager had promised the customer that additional tests would be run. This additional testing was not priced out as part of the original statement of work. On another project, the line manager made certain remarks about the technical requirements of the project. The customer assumed that the line managers remarks reflected company policy. Our line managers dont realize that only the project manager can make commitments on resources to the customer as well as on company policy. I know this can happen on large projects as well, but it is more pronounced on small projects. QUESTIONS 1. Can 13 project managers be controlled and supervised effectively by one vice president? 2. Can the 13 managers under this vice president work effectively with the four product managers under the vice president of marketing/sales?