Project management case study the custom woodworking company

Meanwhile, Kim Cashman developed a monthly cash flow chart as follows. First he set aside one million for contingencies. He carefully locked the chart away in his drawer for future reference. All actual costs associated with the project would be recorded as part of the company's normal book-keeping. Upon Moneysworth's insistence, EID submitted a fixed-price quotation. After Moneysworth recovered from the shock, he persuaded Woody's management that the price and schedule were excessive. For their part, EID believed that Woody's would need considerable help with their project planning and allowed for a number of uncertainties.

Moneysworth started inquiries elsewhere but EID countered with an offer to do their own work on cost plus but solicit fixed price quotations for all sub-trade work. Under this arrangement EID would be paid an hourly rate covering direct wages or salaries, payroll burden, head-office overhead and profit. Moneysworth felt that the proposed hourly rate was reasonable and that the hours could be monitored effectively. He persuaded Woody's directors to proceed accordingly. John Carpenter suggested he use Ian Leadbetter, a bright young mechanical engineer who had specialized in programming semi-automatic manufacturing machinery.

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Moneysworth realized that this knowledge would be an asset to the project and gave Leadbetter responsibility for running the project. Ian was keen to demonstrate his software skills to his friend John Carpenter. So, while he lacked project management training and experience especially any understanding of "project life-cycle" and "control concepts" he readily accepted the responsibility. During the initial phases of the mechanical design, Ian Leadbetter made good progress on developing the necessary production line control software program. However, early in design EID suggested that Woody's should take over the procurement of the production train directly, since they were more knowledgeable of their requirements.

Miles Faster jumped at the opportunity to get involved and decided to change the production train specification to increase capacity. Because of this, the software program had to be mostly rewritten, severely limiting Leadbetter's time for managing the project. It also resulted in errors requiring increased debugging at startup. In one two-week period, during which both Faster and Leadbetter were on vacation, the manufacturing drawings for this critical long-lead equipment sat in a junior clerk's in-tray awaiting approval.

For this reason alone, the delivery schedule slipped two weeks, contributing to a later construction schedule conflict in tying-in the new services.

The Custom Woodworking Company - Essay Example

Construction Site clearing was tackled early on with little difficulty. However, as the main construction got into full swing some eight months later, more significant problems began to appear. The change in production train specification made it necessary to add another five feet to the length of the new building.

This was only discovered when holding-down bolts for the new train were laid out on site, long after the perimeter foundations had been poured. The catalogue descriptions and specifications for other equipment selected were similarly not received and reviewed until after the foundations had been poured. As a registered mechanical engineer, he knew that the specifications governed the quality of equipment, workmanship and performance. However, since these documents had still not been formally approved, he was loath to discuss the matter with Ivar Kontrak.

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Instead, he dealt directly with Amos Dent of Tinknockers Associates, the mechanical sub-contractor. This led to strained relations on the site. Another difficulty arose with the paint shop because the local inspection authority insisted that the surplus paint disposal arrangements be upgraded to meet the latest environmental standards. The members are the Owner, Design, construction, and train production manufacturer representative. A preliminary project schedule is attached as Appendix A 8. The following risks have been identified: 8.

The team should make sure that proper resources are assigned and deliveries of equipment and materials are as per the projected schedules. Work on the project can not start until most permits are secured. A projection period of 10 — 30 days will be given for the permits to be secured; this will make sure that all other work is ready to start. Close coordination among the technical staff is required. Improper planning and poor allocation of resources will cause lots of risks for the project in terms of cost, schedule plans, and poor use of management disciplines.

For the project woody there are concerns regarding the owner supplied equipment and coordination and interface with the appropriate subcontractors. Organizational Risks: Management team to make sure that enough manpower allocated for the project and there are no conflicts between the project staff and the employees of The Custom Woodworking Company. Also their required to avoid all policies that conflicts with the completion of the project schedule.

Close coordination with suppliers to make sure that all equipment and systems are approved by the appropriate regulatory agencies.

Designing A Semi Automatic Woodworking Production Train Essay

Reviewing Woody project plan, the management team should evaluate the financial consequences in project delay. Additionally, ensure that contract and orders are processed without delay. Project management to assist the finance department updating the cash flow projected with actual costs on a monthly basis. A standalone accounting system and procedure will be established; it will include its own chart of accounts, actual to projection disbursements and management of the contingency budget.

A process for review and confirming of Change Order Proposals and develop systems for accountability and documentation on both the financial and technical aspects of the project. They design consultants would be obligated to meet the overall project schedule specified in Appendix A.

Case Study: Pharma R&D Project Management

Develop bid packaging strategies and scope definitions for procurement packages including monitor the development of agreements to be awarded. Interview prospective bidders to determine who will be pre-qualified for the procurement process. Organize and execute the bidding of procurement packages. Provide the expertise relating to cost control, including budgeting, estimating, value engineering and the qualification of subcontractors. The Woody project steering committee would receive formal reports weekly from Mr Moneysworth and Mr Cashman.

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This manual will developed using simple, non-legal language with flow diagrams. The role of the project is to supply, as detailed as possible, all the procurement requirements including all the technical specifications, quantity and the date when they will be needed; this is created in a project procurement plan.

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It tracks and records all the various elements of Project management, planning, organization, meetings and reviews, site logistics, shop drawings, field orders, and document control. The system will track all problems and its impacts to the project as well as track the team responsible to take action on that problem.

As each issue is resolved, the decision tracking system closes the action, but preserves the history of the decision. The Project Manager uses the tracking system to know at any time what issues are open, who has the responsibility for dealing with the issues at the present time, and when that action needs to be taken.

The tracking system provides the foundation that allows an owner to avoid the problems brought on by indecision, and lack of awareness. Quality Control starts with the total project philosophy; and its implementation through each aspect of the project. Quality assurance and Quality management of The Woody project can only be accomplished through proactive involvement of the management team, interaction with the Owner, and design personnel.

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Special tools will be used to ensure that good quality is delivered to the Owner. This process includes quality audits performed by the project team during every project deliverable and revaluating the quality standards and any assumptions made in the quality plan. Quality assurance focuses on prevention measures during the project implementation phase and checks to see that project staff, contractors and subcontractors are following the quality standards.

Quality assurance and control of the Construction Manager and subcontractors and in field operations will begin during the design phase to determine that the contract requirements are clearly understood by all parties. Periodic inspections will be conducted to ensure that all items are in conformance, or that non-conforming items are corrected. All parties involved with the project are expected to participate and each subcontractor will be expected to sign off on our written program.

A regular quality inspection process will be documented and necessary notices to correct will be issued to the parties involved. If the quality infraction is not corrected or mitigated properly, a 24 hour notice will be given to the parties involved, requiring an immediate resolution. The subcontractors will correct items to eliminate the need for them to be added to the final punch list.

Once a subcontractor has completed their appropriate punch list, a completion certificate will be issued in order to release retainers held as per the contract documents. The project will insure a typical match to the existing design of the exterior and interior envelopes and establish a concise mobilization plan to minimize interruptions to the daily production of the existing facility. The roofing system will match the existing three ply built-up roof and an additional top coat will be installed on the entire building to eliminate the potential for water intrusion. The interior finishes will include a drywall on metal frame system with acoustical ceiling panels to match existing. The floors will have an industrial based epoxy coating and the existing facility flooring will be repaired and repainted as necessary.