Read the case study below and answer ALL the questions that follow.

Automotive Manufacturer Slashes HR Service Costs by $66\%$ in Just Seven Months

Within seven months of program completion, HR expenses were reduced from US $$20$ million to $$6\mathrm{.}8$ million per year.

Company

As a multi$-$billion dollar world leader in manufacturing automotive components, this company$$s customer base includes

virtually every major manufacturer in the global automotive, commercial vehicle, and off$-$highway markets.

Challenge

As the company emerged from bankruptcy protection, its Human Resources $($HR$)$ executives wanted to reduce service

costs, which were averaging US $$20$ million annually. They developed a strategy to $$right$-$source$$ key HR functions that

had been outsourced to a single contractor. By bringing the majority of services back in$-$house, and partnering with an

array of best$-$in$-$class service providers for select elements of the program, the company expected to both improve HR

services and cut costs dramatically. Overall, there were $15$ discrete projects included in the HR Transformation Program,

encompassing all aspects of HR service delivery, such as Payroll, Benefits, Health and Welfare, and Pensions.

After eight months, however, the entire program was in jeopardy. Key milestones and deliverables were not being met for

any of the projects, and critical cost overruns were adding up$.$ With just four months remaining to complete the entire

HR Transformation Program, the CIO realized that the organization did not have the program management expertise to

achieve the expected results.

Solution

On a Thursday evening, the CIO asked PM Solutions to assume program management oversight for the HR

Transformation

Program. The following Monday morning, PM Solutions provided the first of two world$-$class Program Managers to turn

around and recover the troubled initiative.

Results

All $15$ projects within the program were completed on schedule and on budget, with no service disruptions or outages

during the pilot, transition, or go$-$live phases.

Within seven months of program completion, the client had reduced HR expenses from US $$20$ million to $$6\mathrm{.}8$ million per

year, and is targeted for a $$5$ million per year run rate.

Due to the success on this initiative, PM Solutions continued to work with this client to build an organizational project

management methodology, mature portfolio management practices, and help improve project execution across the

organization.

Q$1$

Project cost estimation can be undertaken at several levels. The project in the case study derived great value from the

prudent cost management initiatives undertaken by the team. Analyse the cost$-$estimating techniques that the case study

project team could have endorsed to accurately estimate the project costs.

Q$2$

There are many project planning methodologies available. Analyse and discuss the Waterfall project planning

methodology that was applied to a project that you are familiar with.

Q$4$

Understanding the challenges related to a functional structure and the need for using time wisely, especially within a

project environment, project managers tend to prefer a projectised organisational structure. Making reference to a project

that you are familiar with, critique the projectised organisational structure used.

Q$5$

A project has key characteristics that we are familiar with. Relate and examine these characteristics in a project that you

know of$.$