MOdule: Project management QUESTION ONE [40]CASE STUDY: THE GREEN COMPANY POJECT OVERRUNFunctional manager: Our problem was that the customer could not provide us with a fixed setof specifications, because the final set of specifications depended on OSHA and EPArequirements, 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. Sixmonths after project go-ahead, Green Company issued the final specifications. We had toremake 6,000 production units because they did not live up to the new specifications. Projectmanager: The customer was willing to pay for the remake units. This was established in thecontract. Unfortunately, our contract people didnt tell me that we were still liable for the penaltypayments if we didnt adhere to the original schedule. Phil Graham: Dont you feel thatmisinterpretation of the terms and conditions is your responsibility? Project manager: I guessIll have to take some of the blame.Functional manager: We need specific documentation on what to do in case of specificationchanges. I dont think that our people realize that user approval of specification is not a contractagreed to in blood. Specifications can change, even in the middle of a project. Our peoplemust understand that, as well as the necessary procedures for implementing change. PhilGraham: Ive heard that the functional employees on the assembly line are grumbling aboutthe Green Project. Whats their gripe? Functional manager: We were directed to cut out allovertime on all projects. But when the Green Project got into trouble, overtime became a wayof life. For nine months, the functional employees on the Green Project had as much over timeas they wanted. This made the functional employees on other projects very unhappy. Tomake matters worse, the functional employees got used to a big take home paycheck andstarted living beyond their means. When the project ended, so did their overtime. Now, theyclaim that we should give them the opportunity for more overtime. Everybody hates us.Phil Graham: Well, now we know the causes of the problem. Any recommendations for curesand future prevention activities?QUESTION 1[40]1.1 When the project overruns, project are affected. (1)1.2 Phils intentions are clear, and they are to identify learnt. (1)1.3 Identify three major things from the exercise that Phil conducted with stakeholders whichcontributed to the overrun (time and cost).(6)