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Final Project

1.0 Executive summary 2.0 Background Information 3.0 Chosen methodology 4.0 Analysis and interpretation of results 5.0 Conclusions and recommendations 6.0 Appendix

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1.0 Executive summary


1.1 Basic overview of the Woody 2000 project
It is assumed that an agreement was reached with the Directors and key management personnel of the Custom Woodworking Company in order to devise a project management plan to support their Woody 2000 project, aimed at expanding their manufacturing facilities.

1.2 Goal of the proposed Project Plan


The goal of the Project Plan proposed is then to clearly define the processes and techniques that would contribute to successfully achieving the objectives of one of the deliverables contemplated by the Woody 2000 project.

2.0 Background information


2.1 Background of the Woody 2000 project 2.1.1 Company overview
The Woody 2000 project was conceived by the Directors and key management personnel of the Custom Woodworking Company (also known as Woodys), a familyowned small-to-medium-sized company that produced custom furniture and cabinets to order that had also established itself as a reputable supplier of millwork to the construction industry.

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2.1.2 Key management personnel


As it is customary in family-owned enterprises that are built on the reputation of those involved, the Carpenters where highly involved in the management of the company: Ron, the founder, was chairman and CEO; his wife, Emelia, was President and ran the company; and their son, John, was Director and responsible for convincing his parents of moving the company to the subcontract work.

2.1.3 Circumstances of project conception


In the wake of a mini-boom in commercial construction and its subsequent prospect of increasing sales, the VP of Sales and Estimating persuaded the companys Directors that this unveiled a need to expand their manufacturing business. This sparked argument within the companys key management personnel that derived in a polarization of opinions: either relocate to new and more modern facilities or expand using the spare space in their premises. Since this heated discussion prevented any decision from being made, Directors and key management personnel were summoned by Ron to a meeting in order to resolve the dispute.

2.1.4 Project goals, schedule and cost definitions


It was agreed at this meeting that the company would remain on its current location and a project was proposed to expand an additional 25% the existing floor space, install an air-conditioning system, install a dust-free paint and finishing shop complete with additional compressor capacity, acquire a new woodworking production train requiring

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development and installation of software and hardware to run it and renovate the President and Executive Vice Presidents offices. Estimates of the total cost of the project office improvement not included added up to $17 million; however, Ron agreed to commit a maximum of $17 million from the company to finance the entire project and set a deadline of eighteen months for completion.

3.0 Chosen methodology


3.1 Formulation of business situation to be addressed
With the objective of capitalizing on a prospect increase of their business portfolio, the Directors and key management personnel of the Custom Woodworking Company have come to an agreement to expand their manufacturing business by increasing the production floor space in 25% and investing in the modernization of their production lines, as well as some renovation works on their offices.

3.1.1 Identification of a specific deliverable to be developed as a Project Plan


For the purpose of the Final Project, it is assumed that, of all deliverables contemplated by the Woody 2000 project, the one identified to be developed by the Project Plan is the expansion an additional 25% the existing floor space.

3.1.2 Development of Project Plan

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For the purpose of the Final Project, this Project Plan is limited to Scoping and Planning processes only. This Project Plan also excludes the analysis of market and other risks, and procurement processes not relevant to the purpose of the Final Project.

3.2 Scoping
It is assumed that Woodys Directors and key management personnel formed a team, where decision makers and operational-level staff are represented, acting as responsible stakeholders of the Woody 2000 project. Given the impossibility to conduct a scoping meeting, its deliverables (COS, requirements, etc.) are estimated from the proposed project agreed between the companys Directors and key management and used as input for the Project Overview Statement.

3.2.1 Project Overview Statement 3.2.2 Problem or opportunity


As part of the Woody 2000 project, the Custom Woodworking Company will expand an additional 25% their existing floor space in order to allocate a prospect increase of their manufacturing business.

3.2.3 Project goal


Within the scope of the Woody 200 project, this construction Project Plan will deal with the expansion of the floor space in 25%. The budget allocated for the Woody 200 project is of $ 17 million with a deadline of 18 months. The Custom Woodworking
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Company has appointed a team of stakeholders to act as responsible for the Woody 2000 project. For the purpose of this Final Project, it is assumed the construction project will be concurrent with the other deliverables contemplated in the Woody 2000 project.

3.2.4 Project objectives


The objective of this Project Plan is: Expand the production floor space in 25% o Locked budget is of $ 17 million o Deadline is of 18 months

3.2.5 Success criteria


It is assumed that the negotiated success criterion for the construction project with the team responsible for the Woody 200 project is as follows: Increase production capacity (for the purpose of this Final Project, this is not taking into account) Finishing on time Finishing on budget Finishing within agreed quality standards

3.2.6 Assumptions, risks, and obstacles


The decision making process in a family owned enterprise might affect the smooth progress of the construction project. Contracting out construction work is found to be a
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cause of delay in projects (Klemetti, 2006), hence the need to establish a milestones and milestone review meetings. It is assumed that budget allocation was done without a proper analysis, therefore financing of the construction project should be closely monitored, and, if possible, updated. For the purpose of this Final Project, no cost analysis or non-relevant risk analysis has been developed; however, comprehensive risk identification is developed during the Planning process.

3.2.7 Definition of best-fit PMLC model


It is assumed that an agreement with the team responsible for the Woody 2000 project has been reach to implement the Adaptive Project Framework (APF) as the recommended PMLC model for the construction project. Consistent with the Project Management Institute PMBOK standards, the Adaptive Project Framework (APF) has been used in a number of different projects, like software development, process improvement, product development, R&D, product design and process design. Its main characteristic is that it was designed to sequentially accommodate for changes in a project, therefore limiting planning to each cycle only. Its fundamental concept is that the scope is variable within defined time and cost constraints, maximizing business value by engaging the client as primary decisionmaker, who decides on scope adjustments at each cycle (Wysocki, 2009).

3.3 Planning 3.3.1 Work Breakdown Structure


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Based on assumptions and interpretation from relevant resources (Singh, 2009), a WBS for the construction project would be as follows:

1. Planning 1.1. Design of expansion 1.2. Timing and budgeting 2. Procurement 2.1. Contractor quoting 2.2. Contractor hiring 3. Construction 3.1. Site clearing 3.2. Excavations 3.3. Foundation 3.4. Mounting steel structure 3.5. Roofing 3.6. Mounting walls 4. Installation 4.1. Electrical installation 4.2. Plumbing installation 4.3. Mechanical installation 5. Finishing works 6. Testing 7. Client sign-off

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3.3.2 Estimates
For the task duration estimate, a three-point technique was used based on relevant information from relevant resources (Singh, 2009). For the purpose of this Final Project, only task duration and resources are estimated. 3.3.2.1 Task duration

No. A B C D E F G H I J K L M N O P

Task Name Design of expansion Timing and budgeting Contractor quoting Contractor hiring Site clearing Excavations Foundations Mounting steel structure Roofing Mounting walls Electrical installation Plumbing installation Mechanical installation Finishing works Testing Client sign-off

Optimistic 90 10 5 5 3 10 15 35 30 45 25 30 45 5 5 2

Most likely 120 15 10 10 5 15 20 50 45 60 35 40 60 10 10 5

Pessimistic 180 30 15 15 10 25 35 60 60 85 45 50 90 20 20 10

Estimate 125 17 10 10 6 16 22 49 45 62 35 40 63 11 11 5

Source: Author 3.3.2.2 Resources

Company Custom Woodworking Co. Principal, Schemers and Plotters (S&P) Expert Industrial Developers (EID) I. Beam Construction Ltd. Classic Cladding Co. Zapp Electric Co. I. C. Rain Ltd.

Area

Industrial design consultants Industrial property developers and contractors Steel fabricators and installers Cladding and roofing contractors Electrical contractors Water-proofing contractors

Resource Name Team Responsible for Woody 2000 R. Schemers I. Kontrak D. Rivett B. Leakey O. Volta C. Droppe Final Project - 9

Tinknockers Associates Project management consultants

Mechanical contractors Post-implementation audit report

A. Dent W. Easley

Source: Author 3.3.2.3 Activities, duration and resources


No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Task Name Planning Design of expansion Timing and budgeting Procurement Contractor quoting Contractor hiring Construction Site clearing Excavations Fundation Mounting steel structure Roofing Mounting walls Installation Electrical installation Plumbing installation Mechanical installation Finishing works Testing Client sign-off Duration 142 125 17 20 10 10 199 6 16 22 49 45 62 138 35 40 63 11 11 5 Resource Name Principal, Schemers and Plotters (S&P) Custom Woodworking Co. Principal, Schemers and Plotters (S&P) Custom Woodworking Co. Expert Industrial Developers (EID) Expert Industrial Developers (EID) Expert Industrial Developers (EID) I. Beam Construction Ltd. Classic Cladding Co. Expert Industrial Developers (EID) Zapp Electric Co. I. C. Rain Ltd. Tinknockers Associates Expert Industrial Developers (EID) Principal, Schemers and Plotters (S&P) Custom Woodworking Co.

Source: Author 3.3.2.4 Resources Breakdown Structure 1. Custom Woodworking Co. 1.1. R. Schemers 1.1.1. Principal, Schemers and Plotters (S&P) 1.2. I. Kontrak 1.2.1. Expert Industrial Developers (EID) 1.3. D. Rivett 1.3.1. I. Beam Construction Ltd.
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1.4. B. Leakey 1.4.1. Classic Cladding Co. 1.5. O. Volta 1.5.1. Zapp Electric Co. 1.6. C. Droppe 1.6.1. I. C. Rain Ltd. 1.7. A. Dent 1.7.1. Tinknockers Associates 1.8. W. Easley 1.8.1. Project management consultants Post-implementation audit report

3.3.3 Project network diagram

Pl nni g a n St ar t : Tue5/ 8/ 12 Fi i h: W ed11/ 21/ 12 ns Com p: 0% I D: 1 Dur : 142days

Desi nof expans i n g o St ar t : 5/ 8/ 12 Fi i h: 10/ 29/ 12 ns I D: 2 Dur : 125days

Ti i gandbudget i g mn n St ar t : 10/ 30/ 12 Fi i h: 11/ 21/ 12 ns Res : Cus t om W oodw ki gCo. or n I D: 3 Dur : 17days

Res : Pr i ci al Schem er s andPl t t er s ( S &P) n p , o

Endof Pl nni g a n M i s t oneDat e: W ed11/ 21/ 12 e l I D: 4

Pr ocur em ent St ar t : Thu11/ 22/ 12 Fi i h: W ed12/ 19/ 12 ns Com p: 0% I D: 5 Dur : 20days

Cont r act or quot i g n St ar t : 11/ 22/ 12 Fi i h: 12/ 5/ 12 ns I D: 6 Dur : 10days

Cont r act or hi i g rn St ar t : 12/ 6/ 12 Fi i h: 12/ 19/ 12 ns Res : Cus t om W oodw ki gCo. or n I D: 7 Dur : 10days

Res : Pr i ci al Schem er s andPl t t er s ( S &P) n p , o

Endof Pr ocur em ent M i s t oneDat e: W ed12/ 19/ 12 e l I D: 8

Cons t r uct i nw ks o or St ar t : Thu12/ 20/ 12 Fi i h: M on7/ 1/ 13 ns Com p: 0% I D: 9 Dur : 138days

Si ecl ar i g t e n St ar t : 12/ 20/ 12 Fi i h: 12/ 27/ 12 ns I D: 10 Dur : 6days

Excavat i ns o St ar t : 12/ 28/ 12 Fi i h: 1/ 18/ 13 ns I D: 11 Dur : 16days

Fundat i n o St ar t : 1/ 21/ 13 Fi i h: 2/ 19/ 13 ns I D: 12 Dur : 22days

M ount i gs t eel t r uct ur e n s St ar t : 2/ 20/ 13 Fi i h: 4/ 29/ 13 ns I D: 14 Dur : 49days

Roof i g n St ar t : 4/ 30/ 13 Fi i h: 7/ 1/ 13 ns Res : Cl s s i Cl ddi gCo. a c a n I D: 15 Dur : 45days

Res : Exper t I ndus t r i l aDevel per s ( EI D) o

Res : Exper t I ndus t r i l aDevel per s ( EI D) o

Res : Exper t I ndus t r i l aDevel per s ( EI D) o

Res : I . Beam Cons t r uct i nLt d. o

M ount i gw l n al s St ar t : 2/ 20/ 13 Fi i h: 5/ 16/ 13 ns I D: 16 Dur : 62days

Res : Exper t I ndus t r i l aDevel per s ( EI D) o

Endof pr el i ar ycons t r uct i nw ks m i n o or M i s t oneDat e: Tue2/ 19/ 13 e l I D: 13

Endof cons t r uct i nw ks o or M i s t oneDat e: M on7/ 1/ 13 e l I D: 17

I ns t al t i ns a l o St ar t : Tue4/ 30/ 13 Fi i h: Thu7/ 25/ 13 ns Com p: 0% I D: 18 Dur : 63days

El ct r i al s t al t i n e c i n l o a St ar t : 4/ 30/ 13 Fi i h: 6/ 17/ 13 ns Res : ZappEl ct r i Co. e c I D: 19 Dur : 35days

Pl m bi gi s t al t i n u n n l o a St ar t : 4/ 30/ 13 Fi i h: 6/ 24/ 13 ns Res : I . C. Rai Lt d. n I D: 20 Dur : 40days

M echani al s t al t i n c i n l o a St ar t : 4/ 30/ 13 Fi i h: 7/ 25/ 13 ns Res : Ti knocker s As s oci t es n a I D: 21 Dur : 63days

Endof i s t al t i ns n l o a M i s t oneDat e: Thu7/ 25/ 13 e l I D: 22

Fi i hi gw ks ns n or St ar t : Fr i 26/ 13 7/ Fi i h: Fr i 9/ 13 ns 8/ Com p: 0% I D: 23 Dur : 11days

Fi i hi gw ks ns n or St ar t : 7/ 26/ 13 Fi i h: 8/ 9/ 13 ns I D: 24 Dur : 11days

Res : Exper t I ndus t r i l aDevel per s ( EI D) o

Com pl t i nof f i i hi gw ks e o ns n or M i s t oneDat e: Fr i 9/ 13 e l 8/ I D: 25

Tes t i g n St ar t : M on8/ 12/ 13 Fi i h: M on8/ 26/ 13 ns Com p: 0% I D: 26 Dur : 11days

Tes t i g n St ar t : 8/ 12/ 13 Fi i h: 8/ 26/ 13 ns I D: 27 Dur : 11days

Res : Pr i ci al Schem er s andPl t t er s ( S &P) n p , o

Endof t est i g n M i s t oneDat e: M on8/ 26/ 13 e l I D: 28

Cl nt s i n- of f e g i St ar t : Tue8/ 27/ 13 Fi i h: M on9/ 2/ 13 ns Com p: 0% I D: 29 Dur : 5days

Cl nt s i n- of f e g i St ar t : 8/ 27/ 13 Fi i h: 9/ 2/ 13 ns Res : Cus t om W oodw ki gCo. or n I D: 30 Dur : 5days

3.3.4 Schedule
3.3.4.1 Gantt chart

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Source: Author 3.3.4.2 Milestones

Source: Author

3.3.5 Risk identification


A plan to manage potential risks has been put in place after analyzing the milestones of the construction project, using the risk management approach described by Wysocki (2009). Risk identification I. Technical risks a. Contractor infrastructure inadequate II. Project management risk a. Inadequate resources committed to the project III. Organizational risks a. Decision making process in a family owned enterprise b. Financing and payments IV. External risks a. Contractors Risk assessment
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I.

Top 3 risk drivers a. Vendor/contractor relations b. Decision making process in a family owned enterprise c. Financing

Risk mitigation I. Vendor/contractor relations a. Accept b. Since industrial construction tasks require to be outsourced, closely monitor contractor performance, especially for those tasks in the critical path II. Decision making process in a family owned enterprise a. Mitigate b. Interference in the decisions of the team responsible for the Woody 2000 project must be avoided; a decision making process must be clearly established to avoid unnecessary interference III. Financing a. Mitigate b. Payments are to be made to contractors once they complete their work and it has been verified against COS Risk monitoring I. Vendor/contractor relations a. Risk owner: Team responsible for Woody 2000 project

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b. Action to be taken: The team should make sure expectations and boundaries are set, that contractors are familiar with technology and that specifications on the work to be performed is understood; also, both are responsible for managing the relationship with vendors during contract duration c. Outcome: Considering the risk of involving outsourced work, any delay or possible slippage on schedule must be anticipated to the project manager II. Decision making process in a family owned enterprise a. Risk owner: Project manager b. Action to be taken: Establish a decision making process in order to minimize interference c. Outcome: Team responsible for Woody 2000 project should communicate any interference in the decision making process III. Financing a. Risk owner: Team responsible for Woody 2000 project b. Action to be taken: Make sure funding is guaranteed for payment to contractors and purchase of materials; immediately communicate to project manager any possible cost overrun identified c. Outcome: Procure funding for cost overrun, clearly identifying reasons and their impact

4.0 Analysis and interpretation of results


4.1 Analysis of proposed project to actual project in case study
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The proposed Project Plan objective is to address the shortcomings in project management processes of the personnel involved in the Woody 2000 project that lead to a series of concatenated errors deriving in large cost and schedule overruns as well as serious operational problems at the plant. For the purpose of this Final Project, this Project Plan is exclusively focused on the development of one deliverable of the Woody 2000 project. The first change introduced is to assume that Woodys Directors and key management personnel formed a team, where decision makers and operationallevel staff are represented, acting as responsible stakeholders of the Woody 2000 project. In the case study, the selection of whos in charge of the project was done without any analysis of the project necessities. In the case study, given that the responsible of the project had no idea of project management practices, no PMLC model was defined. In the Project Plan, an Adaptive Project Framework (APF) is the recommended PMLC model for the construction project. It is proposed a comprehensive project management plan, including all the five process groups (scoping, planning, etc.) and their proper sequencing. In the case study, there was no process guiding the project development. A communications plan will be put in place to ensure all the stakeholders are kept informed of the progress of the project. A complete project schedule with critical milestones identified is presented, along with a resources and work breakdown schedules. In the case study, there were no milestones or schedule available.

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The identified milestones will act a monitor tool to identify whether any delays are expected, and to approve work performed by contractors.

A concise risk management plan is presented. After the testing of the building and installations, the contractor should obtain the Certificates of Occupancy and Completion Certificates in order to obtain the client sign-off.

4.2 Results predicted if proposed project would be implemented


If the proposed Project Plan is implemented, not it will accomplish the goals and success criteria agreed, but will also demonstrate the effectiveness of a make-sense approach to project management.

5.0 Conclusions and recommendations


5.1 Summary evaluation and conclusion
In the development of the proposed Project Plan, all of the processes and procedures reviewed during the Introduction to Project Management course have been put into practice. The proposed Project Plan was developed after evaluating the circumstances that occurred in the case study, and proposes a corrected approach to the implementation of the Woody 2000 project. In all, a basic Project Plan has been outlined aiming to provide a formal project management approach to the solution of a business problem.

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6.0 Appendix
6.1 Documents to be used in the Project Plan
As described by Wysocki (2009, p.288), the documentation that should be included in the Project Plan is the following: Project Overview Statement (POS) Project proposal and backup data Original and revised project schedules Minutes of all project team meetings Copies of all status reports Design documents Copies of all change notices Copies of all written communications Outstanding issues reports Final report Sample deliverables (if appropriate) Client acceptance documents Post-implementation audit report

6.2 Reference List

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Fewings, P. (2005) Construction Project Management, University of Liverpool Catalogue [Online]. Available from: http://lib.myilibrary.com/?id=26774&entityid=urn:mace:eduserv.org.uk:athens:provider:li v.ac.uk (Accessed: 11 April 2012)

Klemetti, A. (2006) Risk Management in Construction Project Networks [Online] Espoo: Helsinki University of Technology. Available from: http://lib.tkk.fi/Reports/2006/isbn9512281473.pdf (Accessed: 3 April 2012)

Microsoft Corporation (2012) Project Help and How-to [Online] Available from: http://office.microsoft.com/en-us/project-help (Accessed: 11 April 2012)

Project Management Institute Inc. (2008) A Guide to the Project Management Body of Knowledge (PMBOK Guide). 4th ed. Pennsylvania: Project Management Institute Inc.

Singh, H. (2009) Construction Project Management, University of Liverpool Catalogue [Online]. Available from: http://site.ebrary.com/lib/liverpool/Doc?id=10416826 (Accessed: 11 April 2012)

Wideman, M. (n.d.) Project Management Case Study: The Custom Woodworking Company Woody 2000 Project [Online]. Available from: http://www.maxwideman.com/papers/woody2000/intro.htm (Accessed: 11 April 2012)

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Woodward, J. (2009) Construction Project Management: Getting it Right First Time, University of Liverpool Catalogue [Online]. Available from: http://ezproxy.liv.ac.uk/login?url=http://www.icevirtuallibrary.com/content/book/100221 (Accessed: 11 April 2012)

Wysocki, R.K. (2009) Effective Project Management: Traditional, Agile, Extreme. 5th ed. Indianapolis: Wiley Publishing.

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