Unit III Project
Odell Kruah
Columbia Southern University
Part 1
Please complete Case Study 3.1: Keflavik Paper Company on pages 111-113, and respond to the questions for discussion. Please make sure that each question is answered thoroughly using a minimum of 200 words for each case study question.
Question one
Two screening methods have been mentioned adversely as being solutions to the project management menace. The first is premised on basing new projects on the corporation’s strategic goals. The second method is screening new projects based on the concurrent projects being run by the corporation. Excessive reliance on any of these methods may breach the important factors that are considered in choosing a screening method. First is that the particular method may have a negative effect on flexibility. The reduction on flexibility means that the corporation will have a problem when trying to make adjustments based on additional factors such as tax laws and exchange rates which may change with time. By relying on one model, the ease of use for the corporation may be curtailed. Members of the company may not understand the decisions that are taken by the management. The cost of using one method may be prohibitive to the corporation seeing that it will make the management make decisions that are not fully analyzed.
Question two
There are several criteria that should be used in project selection. The first is realism which means that the model should reflect the objectives of the organization such as the mission and the firm’s strategic goals. The second criteria is that the model should be capable of responding to changing circumstances during the implementation stage of the project. The model should also factor in comparability where it should be capable of being used in more than one project.
Question three
Poor screening methods are dangerous for the stability of a corporation. They reflect a tunnel vision approach to decision making in a business. The management that is not reflective of the important factors that would affect project success is bound to lose. The corporation may bet on a project and it wins but then the same approach used on another project may cause it lose. Therefore, the management is called upon to make decisions through models that will open it to viewing all the factors that may affect project success.
Part 2
Please complete the Case Study 3.2: Project Selection at Nova Western, Inc. on pages 112-113, and respond to the questions for discussion. Please make sure that each question is answered thoroughly using a minimum of 200 words for each case study question.
Question one
There are two models that were involved, the first being the scoring method and the second being an NPV analysis. The reason for the difference is premised on the fact that the scoring method is an objective technique where relevant criteria is listed and are weighed in accordance with their importance and priorities. After this analysis, a score is awarded and the highest score is chosen. The NPV model, also the net present value model differs from the above by the fact that it shows the difference between the projects current cash outflow against the cash inflow. The project with a higher NPV will be chosen.
The benefits accrued from the NPV model is that it considers the future value of money. The limitations of the model is that it does not draw a clear picture of profits and losses that could be accrued if the organization were to embark on the project. The advantage of the scoring model is that it is relatively easy to use. It also takes into account factors that are more important as compared to other models. Decision making through this model is also based on financial methods that include tangible and intangible factors that will influence the end result. The cons of this approach is that its cost prohibitive.
Question two
The method that I would give preference to is the NPV model due to the fact that the problem to be dealt with is the downturn of profitability and operating revenues. Project Janus shows that it gives the company profits even looking at it from the short term. The purpose of the NPV model is in calculating the time value of money. Comparing project janus through the scoring method, it scores reasonably high although it does not go to the peak.
Question three
In selecting a method for a project, one should do analysis through all methods that are available. Secondly, the basis of the decision should not be solely based on a specific model but a tabulation of all the resultant effects of the end product as against the company’s future goals. For the purpose of competitiveness, the company should never ignore project selection models.
Part 3
I will be selecting a process improvement project. I worked for a process automation company and we did these types of projects all the time, upgrading systems to the latest and greatest distributed control systems (DCS) software.
Statement of Work
Date Submitted: October 26, 2018
Revision Number: 1
Project Name: PCS 9 Upgrade
Project Identification Number: 20-001
SOW Prepared by: Odell Kruah
Description and Scope
a. Summary of work requested. Giraffe Arch is requesting a DCS upgrade of system software in order to be up to date with the most current software for their ethanol plant.
b. Background. Giraffe Arch ethanol plant in Fairmont Minnesota is in need of a DCS upgrade. The DCS is currently running on Siemens PCS7 version 5.0, which in the technology age is years behind. It is slower and is costing the company time and money in small repairs here and there that force the plant to shut down numerous times during the year. One shut down could cost the plant thousands of lost dollars. The most current PCS 7 is version 9.0 and even may have a few service pack updates.
c. Description of major elements (deliverables) of the completed project and Objectives. The objective of this project is to upgrade Giraffe Arch with the latest Siemens PCS 7 DCS software. Any documents prepared by the PM such as the plans, schedules, work breakdown structures will be available to Buffalo Lake upon request.
d. Scope. Giraffe Arch will receive a full upgrade of their DCS software and all licenses that are required to run their whole system. This includes all programming upgrades, graphics updates, time on site to implement the new software, training on use of new software and graphics, assistance starting the plant back up after the software is implemented, and a certain number of service hours after the upgrade team has left the site in order to assist in problems that may come up.
e. Tasks or Requirements. The project manager will send weekly and monthly updates to Giraffe Arch to keep them up-to-date on the status of the project programming since that is the bulk of time and work will take place. The project manager requires the assistance of plant workers for plant shut down, instrument testing during shut down and workers for startup.
f. Selection Criteria. The objective standard here is for Giraffe Arch to be upgraded with new software within the 6 month timeframe allowed.
Part 4
The work breakdown structure is “a hierarchical decomposition of the project scope into work items or packages to be executed by the project team to produce the project deliverables” (Gido & Clements, 2012, p. 486). As part of the software upgrade project, VFT will be responsible for performing tasks throughout various stages of the project. The following is a list of these tasks which will result in the successful completion of the project: Kickoff, design and build phase, implementation phase and project handoff/closure phase.
Part 5
Please use at least four fictional group members, and create a responsibility matrix. You may refer to the Integrated Project in Chapter 5 on page 183 of the textbook for an example.
Gido, J., & Clements, J. (2012). Successful project management (5 th ed.). Mason, OH: South -Western.
Pinto, J. K. (2016). Project management: Achieving competitive advantage (4th ed.). Boston, MA: Pearson.
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UNIT3ProjectFinal.docx
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