Read the following Case Study and answer the questions that follow. Quasar Communications, Inc. Quasar Communications, Inc. (QCI), is a thirty-year-old, $350 million division of Communication Systems International, the world's largest communications company. QCl employs about 340 people of which more than 200 are engineers. Ever since the company was founded thirty years ago, engineers have held every major position within the company, including president and vice president. The vice president for accounting and finance, for example, has an electrical engineering degree from Purdue and a master's degree in business administration from Harvard. QCI, up until 1986, was a traditional organization where everything flowed up and down. In 1986, QCI hired a major consulting company to come in and train all their personnel in project management. Because of the reluctance of the line managers to accept formalized project management, QCI adopted an informal, fragmented project management structure where the project managers had lots of responsibility but very little authority. The line managers were still running the show. In 1989, QCI had grown to a point where most of their business base revolved around twelve large customers and thirty to forty small customers. The time had come to create a separate line organization for project managers, where everyone could be shown a career path in the company and the company could benefit by creating a body of planners and managers dedicated to the completion of a project. The project management group was headed up by a vice president and included the following full-time personnel: - Four individuals to handle the twelve large customers - Five individuals for the thirty to forty small customers - Three individuals for R\&D projects Project manager: "That's easy-marketing! 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 I'm supposed to be the project leader." Vice president: "Marketing is in the best position to cancel the project because they have the inside information on the profitability, risk, return on investment, and competitive environment." Project manager: "The situation that we're 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 myself 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's remarks reflected company policy. Our line managers don't 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." 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 myself 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's remarks reflected company policy. Our line managers don't 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." CAPITAL EQUIPMENT PROJECT MANAGEMENT Project manager: "My biggest complaint is with this new priority scheduling computer package we're supposedly considering installing. The way I understand it, the computer program will establish priorities for all of the projects in-house, based on the feasibility study, cost-benefit analysis, and return on investment. Somehow I feel as though my projects will always be the lowest priority, and l'll never be able to get sufficient functional resources." Project manager: "Every time I lay out a reasonable schedule for one of our capital equipment projects, a problem occurs in the manufacturing area and the functional employees are always pulled off of my project to assist manufacturing. And now I have to explain to everyone why l'm behind schedule. Why am I always the one to suffer?" "Everyone wants a detailed schedule and product cost breakdown. How can I do that when we are not even sure what the end-item will look like or what materials are needed? "With reference to the extract, highlight the importance of having a detailed project schedule and cost breakdown