ACME Fabricators Project Management - Case Study Example

Post-Project Review Name: Tutor: Course: Date: Executive Summary Project Management review is critical during post-project assessment and evaluation. In the case of ACME Fabricators, there is a close link between project failure and lack of proper project management practices. Despite the project being termed complete, several issues emerge regarding the failure to use of project management techniques and processes. The report provides insights into topical areas such as initiation, planning, implementation, change management and closure. Arbor, the main contractor to undertake landscaping on behalf of ACME failed to incorporate a project charter and plans that were important in tracking activities, balancing tasks and costing operations. The report found some issues such as contract initiation and risks were not exhaustively conducted. The apparent failure of the project to meet budgeted costs and desired quality were a result of rigidity to change management on the part of the sponsor, ACME. It can also be observed that there was no consideration on many verbal agreements. The lack of commitment in writing on the part of the project sponsor and the manager made succession issues difficult for ACME. The report purposed to look into the key area such as costs, schedules and quality as critical areas in planning. Despite meeting the schedule, the project failed on quality. There were cost overruns which made Arbor go into losses. The project did not document some of the risks alongside their impact and magnitude so as to provide contingency measures. Some of the risks were major and could have been ranked high in the risk scoring template. The report offers recommendations to both parties, sponsor and project manager in a bid to resolve the issue related to legal tussles. Finally, there project manager provides areas in which professional assistance is required. In conclusion, the project manager should be rewarded for work completed but with consultation with ACME for approval despite the missing documentation. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Post Project Review 4 1.1 Introduction 4 1.2 Project Initiation 4 1.2.1 Project Scope 4 1.2.2 Outsourcing 5 1.2.3 Kick-off meeting 5 1.3 Project Planning 5 1.3.1 Project Risks 5 1.3.2 Schedules 6 7 Figure 1: ACME Fabricators Landscaping schedule 7 1.3.3 Human Resourcing 7 1.3.4 Quality 7 1.3.5 Costs 7 1.3.6 Schedules 8 1.4 Project Implementation 8 1.4.1 Reporting and Documentation of Project Progress 8 1.4.2 Change Management 8 1.5 Recommendations 9 1.5.1 Recommendations to ACME 9 1.5.2 Recommendation to Arbor 9 References 11 1.0 Post Project Review 1.1 Introduction The post project review is prepared to evaluate the performance of the project against the stated objectives and goals. It also compares the performance of costs, time and quality with those in the baseline studies. The review would seek the roles and achievements of every member of the team to ascertain their influence in the project (Archer & Ghasemzadeh, 1999). This will involve taking interviews with the relevant stakeholders to establish their point of view regarding performance and achievement of deliverables or milestones. The review may also demand documented financial expenses, evidence of schedules and project specification documents. The review exercise will involve reviewing the project scope and charter as well as lessons learned in the event. Change management is also an issue to be looked into since adjustments in cost, time and quality could compromise the desire project. Risk management becomes an area of concern in unraveling the uncertainties and failures to full delivery of the project (Carly, 2004). The review also looks into areas of human resource, communication management and scheduling. Finally, it provides for lessons learned from undertaking such a demanding project. The project review will be structured as; project initiation, planning, implementation, monitoring and evaluation and closure. Planning will involve issues such as human resource, communication and reporting, change, WBS, scheduling and risk (PMBOK® Guide, 2005). Finally, the review will provide independent recommendations to both ACME Fabricators and Arbor. 1.2 Project Initiation 1.2.1 Project Scope The project scope consisted of project specifications which were not based on any previous experience. For example, the senior group executive collected pictures of a contoured landscape without getting details of how it was done. Secondly, the fixed a budget of $232,000 without any breakdown on individual costs. The project failed to consider some assumptions such as funds available within the scheduled duration (Hillson & Webster, 2004). Having undertaken the previous projects successfully, Arbor should have learned the need for a comprehensive project management plan. 1.2.2 Outsourcing ACME Fabricators announced for an open tender, obviously settling for the lowest bidder. Arbor having been awarded the tender for being the lowest bidder but did not undertake baseline studies. The aim of the study was to obtain a more realistic view of finances, human resources, equipment, accessibility, and provision of amenities based on data from the site and not the tender (Kerzner, 2004). There was no mention of hiring of experts in semi-rural landscaping since the existing workforce were competent of inner city landscaping work. 1.2.3 Kick-off meeting The meeting with the sponsors did not address key issues such as availability of funding, conditions, milestones and deliverables in detail. The meeting should have brought out the specific project plans. These meetings were verbal and lack of documentation made it difficult to follow up on progress of succeeding meetings. 1.3 Project Planning 1.3.1 Project Risks Damage of the site by heavy vehicles, sourcing of additional finances from project crashing and failure of plants to grow were unforeseen risks. Destruction of plants by rabbits and hares, attack by pests and instant lawns delivered during hot gusty northern winds were not anticipated. Inadequate supply of sprinkler water during windy conditions also became a new risk. These risks were not documented in the project risk template. Risk scoring helps to identify the risk, assess, evaluate and provide contingency measures if it happens (Mulcahy, 2003). 1.3.2 Schedules Schedules of tree and shrub planting were not sequentially ordered with laying of lawns. Listing of procurement requirements delayed causing delays in delivery of instant lawns from commercial lawn growers. Lack of documentation on the schedule and position of the project became difficult for the incoming ACME project manager to understand the project progress. Every contact meeting did not have minutes and members present. It did not provide any recommendations or commitments from the parties. Work break down structure (WBS) was needed to define the roles of each individual in the team and their suitability to the job descriptions (Mathis, 2009). The Gantt chart below will describe the possible scheduling for this event. Table 1: ACME Fabricators Landscaping Gantt chart ID Item Duration (days) Sequence Responsibility A Site preparation 2 - Tubman B Leveling 1 A Craig C Planting(shrubs, bushes and small trees) 4 C Jude D Larger trees 7 B Jude E Erecting tree guards 1 C,D Jude F Growing grass 2 E Tubman G Watering 7 G Sue The arrangement of the Gantt is also described in the figure below. Figure 1: ACME Fabricators Landscaping schedule The Critical Path (CP) is the longest path taken to complete the project. This means that Arbor will take 19 days to complete the landscaping project. By crashing the project by 3 days to 16 days, it will require extra manpower in event D to save 3 days out of the 7 days. This will reduce on the daily direct costs of $24,000. 1.3.3 Human Resourcing ACME manager would have required adaptive skills to respond to the changes in the project. Communication skills would also help to ensure that proper reporting structures are instituted such as adoption of a communication plan (Chapman, 1997). Interpersonal skills to help relate with Arbor project manager and executive board members and forge a better working relationship. Clerical and record keeping skills was also required to ensure proper and effective documentation of minutes of meetings, receipts of expenses incurred, invoices of money paid out and a list of both debtors and creditors. Each individual role in the team should match their job description and experience. 1.3.4 Quality Attempt to save on costs compromised on the quantity and quality of trees to be planted. Smaller trees were planted instead of the larger ones earlier agreed in the project scope. Lawn had lots of patches and small plants differed with those on the project brief. Quality was compromised which led to project decline by the sponsor. The effect on quality was anticipated given that most of the activities had indicated changes in specifications to allow for savings on costs (Mooz & Cotterman, 2007). 1.3.5 Costs The firm had budgeted for $232,000 but Arbor settled for $175,000. Project risks resulted in cost over-runs of $25,100. There were new demands for additional $25,000 to $30,000 demanded by Arbor project manager. In results based project planning, the project will emphasize on the deliverables and milestones and less on costs. It is evident that Arbor was working on delivering quality on schedule based on the original budget of $175,000. These estimates were not based on market rates and actual bill of quantities. It is possible that the cost of trees, shrubs, instant lawns and labor were understated. The project needed to have gained experience from earlier projects regarding the costs of procuring seedlings, laying lawns and compensating for labor. 1.3.6 Schedules The project managed to be on time by three weeks. Though the project scored in this aspect, the poor performance of trees could have been a result of lack of proper schedule. A Gantt chart would have helped to logically plan by starting with planting of tall trees, then shrubs followed by grass (Carly, 2004). Planting of trees and shrubs before grass affected growth of grass in those areas. Project crashing did not help to reduce costs. For example, though there was savings on time, the ultimate direct costs such as additional labor increased the cost of the project. 1.4 Project Implementation 1.4.1 Reporting and Documentation of Project Progress I will need to seek advice on enforcement of contracts based on verbal agreements. To the best interest of the project, Arbor had committed their human and financial resources but failed to document or give evidence on project progress. I will also need a response on the various costs of trees, labor and materials to establish whether these costs are true or overstated. I will also need to know why ACME project manager was not flexible or failed to contact the executive board on the progress of the project. This means that I need to know the organizational structure of ACME and how decisions are made to allow for inquiry into their decision-making methods. To the best interest of both parties, I would require a consultant to conduct cost-benefit analysis to find out whether the project has more benefits compared to the costs. 1.4.2 Change Management The first meeting to discuss changes was not documented. The ACME project manager will not have a basis to release additional funds to the project. Arbor will not hold any claims to funds without documentation. Purchase of tree guards. Release $57,000 which was a buffer for contingencies. Emphasis on savings from the fixed contract made Arbor to compromise on quality. Change of the project sponsor contact person when the project was mid way impacted on the delivery of the lawn. The new ACME project manager could have salvaged the project by updating the project plan to reflect on progress of costs, schedule and quality. This would have necessitated the release of $57,000 put as contingency to address any unforeseen costs. To save on time and direct costs, the project incurred costs overruns and delivered a shoddy project (Palmer, 2009). 1.5 Recommendations 1.5.1 Recommendations to ACME i) Documentation and Reporting: The project needs to be documented and reports of project progress be discussed. This happens through monitoring and evaluation where costs, schedule and quality and constantly evaluated with baseline requirements. This means that communications plans were important to reflect progress reports through e-mails, board meetings (project view) and site visits by ACME finance manager. ii) Change Management: The project is subject to changes especially with regard to scope. The sponsor needs to review and makes changes to the project while in progress and not wait until it fails. Since costs accrue daily, quick decisions are required regarding release of additional funds to meet delays and unforeseen risks (Charvat, 2005). iii) Project Brief: There was need for a project brief detailing on the objectives, goals, deliverables, expected costs and duration. This is a binding agreement which should have been sealed by both parties and kept for further reference. The assumptions should also be made regarding susceptibility of the project to vagaries of weather. 1.5.2 Recommendation to Arbor i) Learning: Having carried out several projects on landscaping, the project manager should have known the need of teamwork, project risk management, change management, communication and reporting, planning and project crashing. The project should have learned to be accountable and responsible to the project team, suppliers, community and project sponsor (Galbraith, 2001). Through learning on previous projects, it is easier to know when to plan for landscaping in the unpredictable Australian weather. ii) Risk Management: The project manager should have exhausted most of the uncertainties by adopting a project risk management plan. The risk template would list the risk, assess the level of impact to the project, understand the probability of occurrence, assign responsibility and obtain a contingent measure if it occurs. iii) Feasibility Studies: It was important for the project team that is used to working in metropolitan areas to also conduct feasibility studies in semi-rural Angle Vale. The studies would have brought out new risks to be included into the risk plan of which could have compromised project quality and cost. iv) Stakeholder Analysis: It is important for every project to carry out stakeholder analysis. This would help identify the various stakeholders such as community, suppliers, customers, sponsors and the project team. Their role involves what they will do for the project and what they demand from the project (Thieraus, et al. 2009). For example, the project manager would have known what they expect from the neighboring community in keeping off hares and rabbits. Suppliers of wire mesh guards would have been contacted if the community had been contacted for advice. References Archer N. P., & Ghasemzadeh F, (1999). An Integrated Framework for Project Portfolio Selection. International Journal of Project Management, 17, 4 (1999) 207-216. Carly, L. (2004). Project Management Primer. Bureau of Reclamation, p. 2. Chapman, J R. (1997). Project control management. New York, Xavier Press. Charvat, J. (2005). Project Management Methodologies: Selecting, Implementing, and Supporting Methodologies and Processes for Projects, John Wiley & Sons. Galbraith, J.R. (2001). Matrix Organization Designs: How to combine functional and project forms. In: Business Horizons. Hillson, D. & Webster R. M. (2004). Understanding and Managing Risk Attitude. Murrey Press. Kerzner, H. (2004). Project Management: A Systems Approach to Planning, Scheduling and Controlling, Eighth Edition, John Wiley & Sons. Mathis, M. (2009). Work Breakdown Structure: Purpose, Process and Pitfalls. Wiley &Sons. Mooz, H. PMP, & Cotterman, H. (2007). Visualizing Project Management: A Model for Business and Technical Success, Second Edition, Kevin Forsberg, Ph.D, John Wiley & Sons Mulcahy, R. (2003). Risk Management: Tricks of the Trade for Project Managers. Boston. Palmer, J. (2009). Change management in practice: Why does change fail? Allan Press. New York. PMBOK® Guide, (2005). Newtown Square, Pennsylvania, Project Management Institute, 3rd Edition. 2004, p. 16. Thieraus, R J et al. (2009). Project scheduling: PERT/CPM. Project management handbook. Yale: Blackwell publishers. Read More