Week 8 IP Project

MSC PROJECT MANAGEMENT PROGRAMME

MODULE 2 - PLANING AND BUDGETING WITH RISK

INDIVIDUAL PROJECT- CASE STUDY

SEISMIC ZONE RESIDENTIAL CONSTRUCTION IMPROVEMENT

PROGRAM – R&D

MODUELE PROJECT REPORT

Subject: Week 8 - Individual Project

Student Name: Davidson J. T. Ferreira

Student #: 15799388

Report Date: 27-April-2011

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TABLE OF CONTENTS

1 PROJECT REPORT BACKGROUND ..................................................................... 3

1.1 SEISMIC ZONE RCI PROGRAM PROJECT CASE STUDY .......................... 3

1.2 COMPANY BACKGROUND ........................................................................... 3

2 PROJECT SCOPE STATEMENT ............................................................................ 4

2.1 PROJECT OBJECTIVES ................................................................................ 4

2.2 PROJECT DELIVERABLES ........................................................................... 4

2.3 PROJECT ACCEPTANCE CRITERIA ............................................................ 5

2.4 PROJECT ORGANIZATION ........................................................................... 5

3 WORK BREAKDOWN STRUCTURE ...................................................................... 6

4 RESOURCE MANAGEMENT PLAN ....................................................................... 7

4.1 IN-HOUSE RESOURCES STAFFING PLAN .................................................. 7

4.2 OUTSOURCE SERVICES .............................................................................. 7

5 COST ESTIMATES ................................................................................................. 8

5.1 RESOURCES COSTS .................................................................................... 9

5.2 OUTSOURCED SERVICES COST ESTIMATE ............................................. 9

5.3 MATERIAL COST ESTIMATE ........................................................................ 9

6 GANTT CHART ....................................................................................................... 9

7 RISK MANAGEMENT PLAN ................................................................................. 10

7.1 RISK ASSESSMENT MATRIX ..................................................................... 10

7.2 RISK RESPONSE PLAN .............................................................................. 10

8 COMMUNICATIONS PLAN ................................................................................... 11

9 QUALITY PLAN ..................................................................................................... 11

10 CHANGE MANAGEMENT PLAN .......................................................................... 12

11 PROCUREMENT MANAGEMENT PLAN .............................................................. 12

12 BIBLIOGRAPHY .................................................................................................... 13

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1 PROJECT REPORT BACKGROUND

1.1 SEISMIC ZONE RCI PROGRAM PROJECT CASE STUDY

The Research and Development unit of the Property Development Department of

the Government (PDDG) is working on a program called the Seismic Zone

Residential Construction Improvement Program. PDDG is working to assess the

effectiveness of the boxes of a particular dimension used in the foundation of

buildings. (UOL, 2011)

1.2 COMPANY BACKGROUND

Flexible models (FM), develops to-the-scale industrial models. Main FM

customers are industrial construction companies and typical FM projects

include refinery process plants, building manufacturing plants, and public

usage building, such as city halls and shopping centers. (UOL, 2011)

Additionally, FM also has customers in the residential construction segment,

although in building complexes that have more than 17,000 square meters of

usable area.

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2 PROJECT SCOPE STATEMENT

In order to successfully meet the objective above the project team will follow the

typical Traditional Project Management (TPM) approach more specifically the

linear Project Management Life Cycle (PMLC). (Wysocki, 2009)

Therefore, FM project design team will interview the client stakeholders to capture

all project requirements as well any desired features. The design team will then

review scope of work with assembly team and finally present a project execution

plan including a detail product description and features as well as scope of work,

cost and schedule to client for approval. Project manager will then launch the

project to all FM involved departments (assembly, cutting, SCM, design and new

model) to ensure all are on-board with the project execution plan. The design

department will produce the new model and along with its specification so that

assembly can take over and start production of boxes at the required numbers.

Supply Chain Management (SCM) will ensure raw material are procured cardboard

and metal sheet) are procured and pre-delivered to be available for the start of

mass production and final product are ready to be shipped to client at end of the

implementation phase. Shipment and delivery will be performed by outsourced

company at FM cost and part of project scope work deliverables and schedule.

2.1 PROJECT OBJECTIVES

FM are to design, cut, assemble, deliver to the clients site and implement

“boxes” to demonstrate the effectiveness of the scaled dimensions used in

the foundations of buildings (UOL, 2011).

2.2 PROJECT DELIVERABLES

- Furnish to scale boxes of 300 x 250 x 200 cm with a slot of 10 x 10 x 25

cm in dimension with an outer tolerance of +/- 2 cm and a slot tolerance of

0 – 3 mm in width.

- The boxes should be made of cardboard or metal sheet and smooth in

appearance.

- The boxes should be made of small cubes of dimensions of 5 x 5 x 5 cm.

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2.3 PROJECT ACCEPTANCE CRITERIA

Project objective include deliverables listed above will be completed within

client specifications and within time and budget allocated to complete the

design thru assembly and delivery of the end products(boxes) at customer

site.

2.4 PROJECT ORGANIZATION

The “boxes” project will take up resources from all technical departments of

FM. The following organization chart presents the heads of department of

each of the departments directly involved in the project.

Figure 1. Project team organization chart

The various resources from each of the department shall report directly to the

project manager for the duration of the project. Head of departments shown

on project organization chart will make available the number and skill level of

resources required at needed time to complete the project tasks.

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3 WORK BREAKDOWN STRUCTURE

The following tasks grouped into project technical phases are required to complete

the deliverables listed above:

- Requirement analysis

o Interview client stakeholders

o Product detailed analysis

o Refinement of the final draft

- Design and concept

o High level design

o Details with operation designs

- Production

o Set up

o Cutting and parts development

o Sub-assembly 1

o Sub-assembly 2

o Sub-assembly 3

o Assembly integration

o Implementation

- Material

o Cardboard sheet

o Metal sheets

o Cubes

- Delivery

o Pre-delivery

o Shipment / Delivery

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4 RESOURCE MANAGEMENT PLAN

In order to successfully complete both in-house as well as outsourced resources

will be required to complete the technical tasks. The sections bellow detail the

breakdown by task of which tasks are to be completed by resources from FM

departments (see organization chart) and outsourced tasks.

4.1 IN-HOUSE RESOURCES STAFFING PLAN

The project team assigned for the “boxes” project is listed per department as

shown on the table below:

Table 4.1 – In-house project resources (UOL, 2011)

4.2 OUTSOURCE SERVICES

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5 COST ESTIMATES

The overall project cost to completion is estimated to USD 37,740.00 as shown on

the table below.

Table 5.1 Cost and Time breakdown

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5.1 RESOURCES COSTS

From table 5.1 above, the estimated cost for in-house resources to complete

the requirement analysis, design and concept and production phase of the

project is estimated to a total of USD 22,890.00.

5.2 OUTSOURCED SERVICES COST ESTIMATE

From table 5.1 above the total cost to outsourced services is estimated in

USD 9,000.00 to cover for all tasked within delivery services.

5.3 MATERIAL COST ESTIMATE

From table 5.1 above the total cost of materials procured for the construction

and assembly of the boxes is estimated to a total of USD 5,850.00.

6 GANTT CHART

The project baseline schedule was prepare in order to capture the initial planning

for the execution of the project tasks within the project scope timeframe and

resources. Any changes to the scope, quality, cost and/or resources availability

would require the review and update of the project schedule Gantt chart.

Figure 6: Project schedule Gantt chart

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7 RISK MANAGEMENT PLAN

Initially identified there are some majors risks with negative impact to project

quality, schedule and cost. The risks identified are as follow:

- R1- Cutting and parts development task requires skilled labour.

- R2- Damage of components during shipment

- R3- Change of client specifications

- R4- Delay in arrival of raw materials

- R5- Incorrect set-up

7.1 RISK ASSESSMENT MATRIX

7.2 RISK RESPONSE PLAN

At this initial stage on the project the conservative action would be to address

Risks 1 and 5 with medium to high probability and impact and above all within

the control of the in-house project team resources.

Risk 2, 3 and 4 are not under control of the FM project team because they

can originate from outsourced supplier and customer respective, thus no

more additional effort can be implemented to reduce the probability at the

earlier stage on the project.

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Risk response plan to R1 shall include clear commitment from the head of

department for the Cutting department to ensure that both skilled labor

resources would be available for the project task assigned to them. Given the

impact on the schedule, (one day affects 6 days of delay on schedule), the

assignment should be of knowledge of the project sponsor.

Risk response plan to R5, likewise risk 4, has great impact on the quality,

thus a commitment from the Assembly head of department would ensure that

required skill leveled resources would be made available to work on the set-

up task to minimize the risk of incorrect set-up.

With the implementation of the both risk response plans for R1 and R5 the

probability of both risks can be reduced to medium and low respectively,

although the impact would still not changed.

Since the other risks (2 and 4) are out of direct control of the in-house project

team, it is for the Supply Chain Management (SCM) head of department to

ensure that supplier are aware of the critical for the success of the project.

Risk 3 (client changing project scope specifications) may not be avoided

and/or minimized, therefore, a proper change management plan will be

prepared if and when the client would request for a change in specifications.

8 COMMUNICATIONS PLAN

In order to ensure that all project stakeholders are have the correct information at

the right time. The pre-selected means of communication will be: (UOL, 2011)

- Email

- Web-based project tracking system to gather information

Additionally, in order to capture any project scope and/or specification change, the

project manager will issue an formal document as described under change

management plan for approval, via certified email signature.

9 QUALITY PLAN

The quality plan for project is of critical importance, since already early in the

project phase, two project threats were identified that have a medium to high

probability of impacting the project schedule due to re-do of tasks. Therefore, the

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quality plan shall clearly state the procedure for set-up task as well as the cutting

tasks.

10 CHANGE MANAGEMENT PLAN

The management plan should ensure that in case of client changing scope of work

and/or specifications, as already identified in risk management plan (Risk 3), that

formal document is prepared, reviewed and approved, including a thoroughly

corrective analysis of the impact on the project scope and schedule

The following change management tools shall be used: (Sanghera, 2010, p.313)

- Expert judgment

- Project progress review meetings

The expected output is a Project Change Control Document (PCCD) for formal

reject or approval from project sponsors and/or clients.

11 PROCUREMENT MANAGEMENT PLAN

In order to comply with project schedule and specification, in response to the risks

identified earlier the following tools and techniques shall be implemented to

minimize the probability of the risks: (Sanghera, 2010, p.313)

- Contract change control system

- Audits and inspection

- Records management system

- Performance reporting and procurement

- Payment system

The expected outputs would then be:

- Updates to organizational process assets and project management plan

- Change requests

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12 BIBLIOGRAPHY

Week 8 IP Project

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