Unit III Project
Sonia I. Armstrong
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.
1. Pinto discusses four different methods to screen projects, they are as follows: checklist model, simplified scoring models, analytical hierarchy process, and finally profile models. Each one of these models can be used in different project situations. All of the methods have pros and cons, therefore you must carefully select the method that best fits the project. For example, “the scoring model has a limitation that for a new user, ease of use may blind novice users to the false assumptions that underlie” (Pinto, 2016, p. 84). One advantage of the profile model is “it offers another method by which to compare project alternatives, in terms of risk/return trade-off” (Pinto, 2016, p. 85). Constantly relying on the same screening method leads to tunnel vision or a one-size fits all type of mentality. Keflavik company was selecting projects that were diverse and not matched to their strategic goals and applying the same screening method which lead to difficulty in management.
2. There are six criteria when screening models according to Pinto that should be considered and they are as follows: realism, capability, flexibility, ease of use, cost and comparability. Realism says that the project must fit into the firm or companies strategic goals. Selecting projects that are outside the company’s strategic goals lead to loss of resources. Capability says “the project must be flexible enough to respond to changes in the conditions which projects are carried out” (Pinto, 2016, p. 78). Flexibility says that the project must be able to change easily when the situation requires. Ease of use says the model must be easy to use, even for the most junior employees working on the project. Cost says that the model must be cost effective. Finally, comparability allows for the model to be used in multiple projects.
3. The case of the Keflavik Paper Company demonstrates or confirms how dangerous the method of using the same screening method for a number of different projects can be for a company. The choices to select projects that did not fit into the company’s mission or goal bled into other areas causing negative effects such as projects being over budget, late projects, and performance has been inconsistent. The project manager found it difficult to manage all the different projects because they were so mismatched. Project managers could not apply lessons learned from project to project because of how diverse the projects were from each other. This caused a lot of failure in keeping projects within time and budgets constraints.
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.
1. There were two different methods employed for this decision making process, one was the scoring method and the second was a financial analysis, each of these methods brought about different conclusions, which is expected because they are different models. Just because they are evaluating the same projects, does not mean that the methods will yield the same results. They are two different models evaluating based on different criteria which will of course yield different outcomes. It is up to management which outcome is more important to the company, financial gains or key strategic categories important to the company. Advantages of the NPV model is it allows firms to link project alternatives to financial performance, thus saying use of those resources will generate the most profit (Pinto, 2016). A disadvantage of the NPV model is that long term, it is difficult to stay accurate on long term predictions. One disadvantage of the scoring model is that because of its ease of use, it may “blind novice users to the false assumptions that sometimes underlie them” (Pinto, 2016, p. 84). An advantage of the scoring method is that it is easy to use and tie in the company’s strategic goals.
2. Since the company is concerned with the downturn of operating revenues and profitability, I would choose the NPV model and Project Janus to bring to the table because even in the short term, profitability for the company is high. The NPV model focuses on the time value of money. Although the project does not score high in the scoring method is does still score within a reasonable range for selection, meaning some of the criteria are within the company’s strategic goals.
3. As stated before, different projects use different selection methods and based on the company’s goals or needs at the time, this will determine which selection method you use. It never hurts to try different selection methods on the same project either. In fact you should always try different selection methods just to see how the projects score in the different methods. Use brain storming sessions to talk about the outcomes of each method. Project selection methods are very important to use in every organization, especially if you want to remain competitive and maintain positive results on all the company’s projects.
Part 3
Prepare a fictional group project. You may use one of the following for your model:
enterprise resource planning (ERP) system implementation,
website development project,
a marketing plan for a new product,
a process improvement project, or
an information system development project.
**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.
Develop a statement of work for the project using the following format:
background,
objectives,
scope,
tasks or requirements,
selection criteria,
deliverables or delivery schedule,
security,
place of performance, and
period of performance.
You may refer to the statement of work section in the textbook on pages 150-151 as well as the template on Table 5.2 on page 152 for an example.
Statement of Work
Date Submitted: February 10, 2018.
Revision Number: 1
Project Name: PCS 7 Upgrade
Project Identification Number: 18-001
SOW Prepared by: Sonia Armstrong
Description and Scope
a. Summary of work requested. Buffalo Lake 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. Buffalo Lake 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 Buffalo Lake 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. Buffalo Lake 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 Buffalo Lake 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 Buffalo Lake to be upgraded with new software within the 6 month timeframe allowed.
Part 4
Next, create a work breakdown structure (WBS) for the project. What are the key steps, including work packages, tasks, and any related subtasks for the project? You may refer to the Integrated Project in Chapter 5 on page 182 of the textbook for an example.
Work Breakdown Structure
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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