QUESTION ONE[40]CASE STUDY: THE GREEN COMPANY - POJECT OVERRUNFunctional manager: 'Our problem was that the customer 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 confined unti initial testing of the new plant. Our people. therefore, were asked to commit to man-hous before specifications could be reviewed. "Six months after project go-ahead, Green Company issued the final specifications. We had to remake 8,000 production units because they did not live up to the new specifications." Project manager: "The customer was willing to pay for the remake unla. This was established in the contract. Unfortunalely, our contract people didn't lelt me that we were stall liable for the penaty payments If we didn't adhere to the original schedule." Phil Graham: "Don't you feel that misinterpretation of thie terms and conditions is your responsiblity? Project manager: "1 guess Il have to take some of the blame."Functional manager: "We need specific documertation on what to do in case of specification changes. I don't think that our people realtre that user approval of specification is not a contract agreed to in blood. Specifications can change, even in the midsle of a project. Our people must understand that, as well as the neossary procedures for implementing change." Phil Graham: "Tve heard that the functional erployees on the assembly line ave grumbling about the Green Project. What's their gripe? Functional manager: We were directed to cut out all overtine on all projects. But when Be Crem Breject got into to Ble, overtme became a way of life. For nine morths, the functional employees on the Green Project had as much over time as they warted. This made the functional employees on cefer projects very unhappy. "To make matters worse, the functional employees got used to a big take home paycheck and started living beyond their means. When the prepect ended, so did their overtime. Now, they claim that we should give them the opportunity for more overlme. Everybody hates us." Phi Graharr: Weil, now we know the causes of the problem. Any recommendations for cures and flaure prevention activetes?