Challenges Associated with Watson Ltds Expansion Project - Case Study Example

Note: network diagram is in the other file. It is not complete yet as I having difficulty computing the early start, late finish, etc. (copy of Field and Keller will help a lot) but I will complete it . Please check this out and send me a message if you want to add anything. Managing Projects 1. Mangeist Ltd. 1.1 Background Mangeist Ltd is an organisation which provides plant and materials to the building sector and now require a list of activities for that can be use to source a new range of industrial forklift trucks for the supply sector. The following is a network diagrams of these activities containing all the timings detailed by Field and Keller (2007) in each node. 1.2 Network Diagram See separate diagram in “network diagram.doc” 1.3 Determining the Timing of Activities and Total Float The timing of activities were determined using the start date provided for the first act activity (Task A ) which is January, 7, 2013 plus the task duration provided in this assignment. Therefore, if Task A will start on 1/7/2013 which is DAY 1 and should be completed after 4 days then its completion or earliest finish date will be 1/10/2013 or DAY 4 of the project. Similarly, if Task B will start after Task A is completed (which is 4 days since project start) and should be completed after 5 days then Task B’s completion is DAY 9 of the project. This is on the assumption that Task B can only start on DAY 5 as Task A’s completion is at the end of DAY 4. Moreover, DAY 5 is a Friday (the last working day) thus next work for Task B should commence 2 days after or DAY 6 (Holiday not counted) of the project and continue till DAY 9 (January 17, 2012). All the following activities timing are computed in this manner. Note that this timing is based on 8 hours work, 5-day working week with no holidays except Saturday and Sunday, and Monday as the first days of the working week. Float is the leeway time existing within the noncritical path tasks or the difference between the late finish and early finish times (Knutson & Bitz, 1991, p.69). Following the formula provided by the same author the EF (Early Finish) = ES (Early Start) + Duration. Note that Early Start of the first activity is zero thus Task A should have an EF of 4. Now, if LF (Late Finish) = Early Finish of the last task then LF for Task A is also equals to 4. Therefore LF- EF=0 total float which is in the critical path. If the Early Start of the following activity is equals to the Early Finish of the immediate predecessor (Knutson & Bitz, 1991, p.69) then Task B should have an ES of 4 which is the EF of Task A (the immediate predecessor). Task B then should have an EF of 9 or (EF=ES+5). Now, LF (4) –EF (9) = 5 total float which is non-critical. The path with activities zero slack is the critical path while those with more belong to the non-critical path. 1.4 Determining Project Duration and the Critical Path The project duration is determined by the adding the duration of each task in the critical path or the longest path in the sequence of activities. The critical path on the other hand was identified using the slack or float. Those with the least amount of float are considered critical (Schwalbe, 2010, p.228) as shown in the network diagram above. Note that task A, D, G, H, I, K, L, M, N, P, & Q are in the critical path because they represent the longest path from the first and last activity which is 88 days instead of 116 days (total duration if all activities are added regardless of critical path). Moreover, the total float or the time a task may be started late without affecting project completion (Heldman & Cram, 2004, p.130) of Task A, D, G, H, I, and so on are all zero while the total float of Task B, C, E, F, and others that are non-critical are more as shown in the network diagram. For instance, instance, Task O is not critical because its slack time of float is 72 days while Task C has 4 days. In summary, the project duration is the total duration of all the task or activities in the critical path with the least amount of float or slack time. 1.5 Earliest date of Completion using Five Day Working Week The earliest date of completion is dependent on the total duration of the longest path or critical path. As calculated above, the critical path is 88 days long and if the project start on January 7, 2013, the project’s earliest completion time is May 8, 2013 or DAY 88. Logically, 5 working days working week is 20 days work in a month and counting 88 days from January 7, 2013 is May 8, 2013. 1.6 Effect on the Duration of the Whole Project a. Activity B is delayed 1 day Activity B does not belong to the critical path because it has slack time higher than zero. In fact as computed earlier, it has more than a day of float and therefore cannot affect the duration of the whole project. b. Activity P is delayed 1 day Activity P belongs to the critical path as it has zero float and therefore could delay the duration of the whole project. c. Activity O is delayed 2 days Activity O is not on the critical path as it has a slack of around 72 days if computed using the same formula used earlier. Activity O is the 15th activity but its predecessor is Activity B and succeeded by Activity Q (the last activity), which is also in the non-critical path. Delaying Activity O by 2 days therefore will never affect the whole project duration. 1.7 Limitations of the Network Diagrams Network diagrams are highly reliant on the Critical Path Method and therefore subject to the limitations of CPM. For instance, network diagrams only look good when used in small projects because there are only small numbers of activities and dependencies involve. In large and complex projects, a network diagram (done manually) is never a good choice because it involves hundreds or thousands of activities with multifaceted interdependencies. Moreover, it may difficult for project managers to re-draw the precedence in case the plan changes particularly during project execution. Most small projects that built their network diagrams using computer and software are printed and posted in the project area but for large projects, this can be very difficult, as they need to put the printed pieces together and post them in a large area. According to Stelth & Le Roy (2009), the main disadvantage of the critical path method include the technical and conceptual factors involved in the critical path process because too many interconnecting activities in a large project can result in a complicated network diagram where the risk of making mistake is high. Another is the assumption that project teams can reasonably predict the scope, schedule, and cost of each project which in practice is way beyond control. Moreover, a network diagram is only easy to use when there is one critical path because two or more critical paths parallel and feed into a common node in the network is far more complex and confusing. Lastly, using total float as a measure for assigning activities either critical or non-critical paths may be problematic when calculating total float in as built schedules where dates have been changed by actual dates (p.14). 2. Watson Ltd. 2.1 Background Working as a consultant with Watson Ltd is a bit challenging considering the extent of work required to meet the demands of large global organizations. For instance, the feasibility of having a larger building (35,000 square metres) using the number of staff should be carefully examined. Another is the skills and competencies required for such project and project management processes that should be employed particularly in ensuring timely delivery of products produced within the agreed budget. 2.2 Outline of Activities for Managing New Initiative a. Define scope of the project (Scope Management) This activity details the key input required in the development of a scope management plan that at the minimum contains policies and procedures, historical information about previous projects, and environmental factors that may affect the project (i.e. market condition and so on). Scope definition is critical as it enhance the accuracy of time, cost, and resources estimates, enable monitoring and measurement, and control of project by defining the baseline (Schwalbe, 2006, p.100). A clear scope management plan is valuable to this project as it can help the project team identity the work and control them in a manner compliant to the objectives and goals of the project. It must therefore contain a detailed description of the deliverables, a WBS ( breaking down deliverables into manageable pieces of work), method of verification and measurement for deliverables, and process for controlling scope changes (Heldman, 2009, p.108). b. Analyse Work and Determine Resources Availability (WBS – Work Breakdown Structure) This activity will ensure that delivery of the project’s objectives and outcomes and to avoid re-planning and extensions, unclear work assignments, scope creep, and others (Norman et al, 2010, p.6). This will subdivide the work into family-tree like structure that include products, deliverables, tasks and services required to complete the project (Harrison & Lock, 2004, p.103). A clear work breakdown structure can help the project team identify potential risks and detecting missing work. Moreover, since WBS is a hierarchy of work, it will ensure that each level contains all the work required including breakdown of associated cost and other consequences (Kendrick, 2009, p.61). In other words, it will let the team look at the project at a great level of detail and get a clear picture of all the work that must done as shown below (Reynolds, 2009, p.73). Figure 1 -Sample WBS taken from Task 1 c. Develop Project Baseline Plan and Work Schedule An effective project management is one that can measure actual progress, able to compare it with planned progress on regular basis, and can take necessary corrective measures instantly (Gido & Clements, 2008, p.210). For this reason, a project baseline plan and work schedule should be developed for Watson Ltd’s new “Signage” project to ensure that activities performed during the execution phase are in sequence, adequately resourced, executed as planned, and controlled according to agreed level (Westland, 2007, p.7). The emphasis is to stick to the agreed plan and measure any variations. If this variation is large enough to warrant a change such as budget constraints then some manoeuvring may be required (O’Toole & Mikolaitis, p.17). d. Determine Critical and Non-Critical Stages of the Project with the Project Team Stages of the project are activities that must be performed in a certain point in time but it can also be arranged depending on the magnitude of the risk that the project team can tolerate (Kerzner, 2009, p.66). Non-critical key stages have float time (Young, 2007, p.157) so it can be done in a later time and replaced with critical work to reduce the total project. However, care should be taken as overrun of critical stages can change the critical path or deprive non-critical stages of resources (Young, 2007, p.157). In contrast, critical stages of a project are those involving higher risks (Venables, 1994, p.50) such as building the staffing structure of the project to meet the design and supply of signage or resources directly required in manufacturing the product. According to Wood (2001), successful projects has the ability to anticipate potential difficulties and implement a contingency plans if they actually occur (p.2). For instance, technology being used in manufacturing signages can fail and depending on the damage, will take time to repair. Another example of a critical stage is one that involves procurement since delayed ordering and delivery can significantly affect the work schedule and the whole project as well (Masterman, 2002, p.67). e. Review and make necessary project adjustment Reviewing project plans, assumptions, and constraints is necessary to ensure smooth project execution. For instance, if in doubt, project objectives along with work strategy can be revalidated. Moreover, since projects are all unique, project team should review the life cycle or major milestones identified earlier and check if they can actually withstand significant project changes such as staff turnover or business reorganization (Kendrick, 2010, p.164). f. Start the Project The execution stage is the longest activity of the project where deliverables are actually built and delivered to the customer (Westland, 2007, p.132). The activities in this stage must not be started unless all of the above activities are completed. The project team should ensure that all activities defined in the project schedule will be implemented in time, at agreed cost, and quality. Means of communication and coordination should be in place while roles and responsibilities are clearly defined (Xavier, 2004, p.78). g. Monitor and Document Project Progress Monitoring of actual progress often lead better understanding of the project needs and status. It can tell the project team how well the objectives are being attained at a certain point in time or the quality of actual work compared to the quality of work agreed during the initial phases of the project (Jenny, 2007, p.134). Similarly, monitoring of documents associated with the progress of work should be check against the agreed standards, completeness, accuracy, consistency, and comprehensiveness (Jenny, 2007, p.135). Documentation help the project team communicate the progress of the project to the stakeholders such as listing of risk and issues that can impact the project and reports on deliverables produced (Panneerselvam & Senthilkumar, 2010, p.19). h. Perform Project Closure At this point, the project team is required to determine if all work required was completed correctly and in accordance with agreed quality. Activities include procurement audit, updating records to reflect the final results (Schwalbe, 2006, p.272). Project closure is both the responsibility of the project manager and contract administrator and must be planned for with separate time table and budget (Kerzner, 2009, p.74) 2.3 Analysis of the Project Watson Ltd is already a successful company and since 2005, they managed to establish itself as reputable SME in the design and supply of signage using a single warehouse measuring about 25,000 square metres. Moreover, it had maintained its success with seems minimal number of managers and staff which according to management will reflect the staffing structure of the new building. Evidently, the new project site is larger than the main warehouse but it does not necessarily translate to larger workforce. For this reason, the focus should be in the skills and competencies of the people who would be working with project including the Project Manager responsible for overseeing the planning, execution, and completion of the project. Managing the lifecycle of this major project requires a highly skilled project manager familiar with all aspects of project management. These include the ability to effectively use people skills, communicate and work with others, negotiate and encourage organizational change (Flannes & Levin, 2005, p.2). Aside knowledge of common management functions and other expected attributes, the project manager according to Ramakrishna (2010) must be able to plan, organize, direct, implement, monitor and control the project from beginning to end. For instance, the project manager in the initial stages of the project must concentrate on planning and organizing ideas. A good communicator, the project manager should deal with staff, customers, suppliers, subcontractors, stakeholders, and others objectively particularly during project execution. Moreover, he should be a leader well equipped with abilities that can lead the team towards success, with good amount of common sense, persuasive, confident, flexible, accommodative, and efficient despite pressures and tight schedules (p.25). Analysis of the project requirement reveals that the primary concerns are selecting the right members of the project team, production and timely delivery of products, and budget. In selecting the right members of the project team, the project manager may in his capacity, evaluate the previous experience of potential members and recommend the most competent. He may also organize training and coaching to increase the productivity of the team and avoid clashes between cultures and personalities (Binder, 2007, p.139). The selection should occur early in the project’s life cycle including team building and personality development that can support the entire life cycle (Futrell & Shafer, 2002, p.184). This is necessary because there is always risk with any personal decision (Wysocki, 2011, p.3) and that includes imperfect selection of team members. However, it will be easier if the core team members at the minimum are committed to the project, willing to share responsibility, flexible, task oriented, consistent, open-minded, knowledgeable of project management tools and able to leverage technology in carrying out assigned responsibilities (Wysocki, 2011, p.3). The purpose of project management is risk reduction and timely delivery (Hallows, 2005, p.11). This means timely delivery of materials, high degree of efficiency, effective coordination with production (Ramakrishna, 2010, p.180) which in this case are materials required in producing signage. The project shall have an expediting ability to ensure purchase order are issued and may find it necessary to check the manufacturer’s production calendar, method of transportation, and data regarding carrier and shipment routing (Sears et al, 2008, p.8). The project manager and the team should be aware of the importance of unity of command, span of control, and lay down a clear channel of authority, decision-making, and communication. They must be aware of their accountability, nature of work, project character and execution times, moral and competence of the people, capability of their chosen leaders at various levels, and management policy that may affect production and delivery of products (Chitkara, 2002, p.243). More importantly, since nobody can really predict the future accurately, the plans for the project must be flexible particularly in the production environment where efficiency improvement is necessary (Turner & Simister, 2000, p.68). Project cost and schedules change for a variety of reasons such as design errors, environmental mitigation requirements, scope creep or uncontrolled changes and others (Turnbull, 2004, p.124). It is therefore necessary to have some form of strategy that can assess and understand the reason for these changes and help in implementing immediate corrective action. In this case, the project manager may consider applying performance measures to project delivery in order to enable effective utilization of funds. For instance, performance measure data can help summarize project costs, track changes in project scope, and monitor changes in delivery schedule. Moreover, project delivery information can assist the project manager in determining future resource requirements and cash flow needs (Turnbull, 2004, p.125). In summary, dealing with challenges associated with the Watson Ltd’s expansion project is not easy, as it requires skills and competencies way beyond the capacity of a traditional project manager. His leadership must be strong so he can lead his team towards success. More importantly, he should be familiar with all aspect of project management including innovative techniques and advanced project management tools. 3. 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