Logins $-$ Regent Business school

BCOM$\_$PM$200-$AD$-1$

$170\_$S$1\_$Assignment$\%201.$pdf

$1$

of $2$

MODULE: PRONECT MANAGEMENT $3$

Total Marks: $,70$

QUESTION ONE

$(40)$

CASE STUDY: THE GREEN COMPANY $-$ PROJECT OVERRUN

Functional manager: "Our problem was that the custorner could not provide us with a fixed set of specifications, because the final set of specifications depended on OSHA and EPA requirements, which could not be confirmed until initial testing of the new plant. Our people, therefore, were asked to commit to man$-$hours before specifications could be reviewed. "Six months after project go$-$ahead, Green Company issued the final specifications. We had to remake $6,000$ production units because they did not live up to the new specifications." Project manager: "The customer was wiling to pay for the remake units. This was established in the contract. Unfortunately, cur coritract people didnt tell me that we were still liable for the penalty payments if we didn't adhere to the criginal schedule." Phil Graham: "Don't you feel that misinterpretation of the terms and condtions is your responsibility? Project manager: "I guess III have to take some of the blame."

Functional manager: $"$We need specific documentation on what to do in case of specification changes. I don't think that our peciple realize that user approval of specification is not a contract agreed to in blood. Specifications can charge, even in the middle of a project. Our peoplo must understand that, as well as the necsesary prosedures for implementing change." Phil Graham: Projed. What stheir gree? Fundional manager: $"$We were directed to cut out all overtime on all projects. But when the Green Prapect gat rite trouble, overtime became a way of life. For nine months, the functional empioyese on the Green Propet had as much over time as they wanted. This made the functional enployese on ceter projecte very unhappy. To make matters worse, the functional empioyees got used to a big take heme pay check and started living beyond their means. When the projed ended, so did their overtine. Now, they claim that we should give them the opportunity for more overtine. Everybody hates ua$."$

Phil Graham: Well, now we know the causes of the problem. Any recommendations for cures and future prevention activities?

$1\mathrm{.}1$ When the project overruns, project $q,$ are affected.

$1\mathrm{.}2$ Phirs intentions are dear, and they are to identify $q,$ eant

$(1)$

$1\mathrm{.}3$ Identify three major things from the exercise that Phil canducted with stakeholdars which contributed to the overun $($time and cost$).$

$(6)$

$1\mathrm{.}4$ The assumption is that "The Green Company" did nat follow the project its cycle because one of the key stages in the lffe cycle is "Planning", which could have asaibled in many of the key things that were overlooked. Help Phil and the stakehalders by evaluating the importance$/$benefits of project life cycle to them.

$15$ Discuss stx $(6)$ disadvantages of the praject life cyde.

$1\mathrm{.}6$ Part of the reasons for cost escalation is scape that is not well documented. Assiat the Company to wite a process on the major points to look for when documenting scope.

$()$

$1\mathrm{.}7$ further summarise what should be included in a scope management plan.