Ch8 Project Case Study.docx

Project Management Module 8: Project Case Study Notes Assignment 1: Preliminary Evaluation Assess current state of project organization Confirm formal and informal communications channels Study deadlines, financial penalties, risks Evaluate impact and probability Check state of existing contracts, and new contracts needed Assignment 2: Regarding Individual and Team Issues Review: Planning and costing calculations Time & cost control procedures Pre-design stages The project manager: Provides advice on all aspects of the project during feasibility (detailed investment appraisals, economic analyses, cost-benefit analyses, and financial modeling) Co-ordinates the development of the project brief (formalizes the client requirements) Advises on the appointment of specialist feasibility-study consultants Provides monitoring and co-ordination of all approvals and consents Establishes an overall conceptual program for the project Establishes cost control and reporting procedures (Implementation, Monitoring, and Control System-IMCS) Formation of Project Team PM advises the client on the selection and appointment of external consultants Establishes the project team and initiates the project team-building process Develops a project task responsibility matrix (TRM) which links individual responsibilities with time deadlines Develops proposed monitoring and control systems for planning, authorizing, controlling, and directing all aspects of the project team Evolves the team building process, including standards and targets Provides levels and standards of leadership Provides life-cycle leadership Interfaces with client and organization Negotiates or coordinates negotiation with suppliers and clients Manages project resources Monitors and controls project status Identifies issues and problem areas Resolves team conflicts Conflict & stress management & motivation and reward systems Design Stages In the design stage, the project manager: Coordinates all aspects of design Develops initial time, cost, & quality objectives Develops of project statement of works (SOW) Develops a work breakdown structure (WBS) Develops a cost accounting code (CAC) based on the WBS elements and primes each work package with a budget total using a computerized database estimating system (CDES) Using CAC system, develops a precedence diagram using CPM or PERT, develops a draft master schedule (DMS) Presents the DMS to the client, and analyzes time, cost, & quality trade-offs Applies the trade-off solution to generate a PMS Ensure the designs comply with all internal and external design requirements: including statutory requirements If needed, coordinates the design and implementation of a prototype Sets up cost and budget plan Sets up a suitable EVA reporting system Tender and Award Inviting prices for work based on the SOW Complete a pre-tender cost check Coordinates the preparation of full SOW Advises on tender to be accepted Insurance, performance bonds, tendering company checks Project Execution Coordinates the efforts of the design team Establishes a suitable performance monitoring and control system Establishes a suitable cost monitoring and control system Establishes a suitable quality management & control system Operates an EVA variance and analysis system Isolates the variances and records them as part of a PVAR system Uses these Variance reports or executive recommendations for action Monitors and controls the team development and team building process Tactical leadership at all levels Monitors and controls project team performance Etc, etc. Project commissioning and use Advises on effective method for commissioning the project Advises on making use of the project Appoints external specialists Develops suitable procedures for the collection and use of feedback Risk Management Contractors and suppliers: risk assessment Tenants, consultants, contracts with associated companies or partners Risk Grid (Plotting impact vs probability) Organization structure Create OBS Create communication link diagram Time planning and control: Create Gantt Chart Cost Planning and Control EVA system Table 8.16 Rates of progress and costs at week 8   Progress (%)   Costs (£)       Planned Actual   Planned Actual Demolition 100 100   12 000 12 000 Structural 75 60   9 750 10 000 Alterations 50 50   12 500 14 000 Redecoration 25 20   2 000 2 000 Values for budgeted cost of the works performed (BCWP), budgeted cost of the works scheduled (BCWS) and actual cost of the works performed (ACWP) are now as given in Table 8.17. Table 8.17 Schedule of costs at week 8   Planned Actual Budget BCWP BCWS ACWP Demolition 100% 100% 12 000 12 000 12 000 12 000 Structural 75% 60% 13 000 7 800 9 750 10 000 Alterations 50% 50% 25 000 12 500 12 500 14 000 Redecoration 25% 20% 8 000 1 600 2 000 2 000 The cost variance (CV), schedule variance (SV), cost variance index (CVI), and schedule variance index (SVI) values can now be calculated on the basis of the following formulae: Table 8.18 Schedule of costs and parameters at week 8   Budget BCWP BCWS ACWP CS SV CVI SVI Demolition 12 000 12 000 12 000 12 000 0 0 1 1 Structural 13 000 7 800 9 750 10 000 2 200 ?1 950 0.78 0.8 Alterations 25 000 12 500 12 500 14 000 ?1 500 0 0.893 1 Redecoration 8 000 1 600 2 000 2 000 ?400 ?400 0.8 0.8 Positive variance values are good as they represent works that are ahead of programme and/or under cost; similarly, index values greater than 1.0 are good. Negative variances or indices less than 1.0 are unfavourable. A glance at the last four columns of the table above shows that the variance values are all zero or negative, giving corresponding indices of less than 1.0. This process would be repeated for whatever reporting cycle is required. The process would typically be carried out on a weekly basis, with the analysis being used as the basis for the cost- and progress-reporting system. Longer-term tracking might reveal the figures shown in Table 8.19. Table 8.19 CV and SV values for the project as a whole     Week                   1 2 3 4 5 6 7 8 Demolition CV 0 0 100 ?100 0 0 0 0   SV 0 0 0 0 0 0 0 0 Structural CV 0 ?250 ?350 ?500 ?900 ?1300 ?1700 ?2200   SV 0 0 ?150 ?350 ?800 ?1200 ?1400 ?1950 Alterations CV 0 0 0 0 0 ?250 ?1000 ?1500   SV 0 0 100 ?250 0 0 0 0 Redecoration CV 0 300 0 250 ?400 0 0 ?400   SV 0 0 0 0 0 0 0 ?400                     CV total     50 ?250 ?350 ?1300 ?1550 ?2700 ?4100 SV total       ?50 ?600 ?800 ?1200 ?1400 ?2350 CM System Outline/Map of all information databases and their relationship to each other.