Project

Add the highlighted information to the project.

•Schedule PERT Analysis

•Schedule reduction (project crash) ◦Including Recommendations to reduce the schedule length and calculate impact on the budget (include examples of outsourcing with applicable example contracts)

•Resource loading and leveling

•Schedule baseline

•Budget management plan ◦From Plan Cost Management, Section 7 of PMBOK® Guide 5 (Submitted in WBS 6)

•Project Budget

•Including time phased cash flow plan

•Earned Value Analysis and Report

Project Objective:

This project will transition the SMS LAB Engineering helicopter production line from its current location in Barstow, CA to a newer and more centralized location, just south collocated with a local regional airport in Aerial Acres, CA. The move will be completed in 6 weeks (42 calendar days), safely and with a cost not to exceed $1.2 million.

Rationale for Project:

There is a business need to move the helicopter production line from its current facility that is 50 miles from the flight test center to a newer location more centralized to the overall organization’s operations. Once the new location is operational there will be a realized savings in lease costs, reduced risk, and reduced transportation costs of moving the helicopters to the flight test center.

Currently the lease for the building where the production line is located is ending and the organization has decided to not renew due to budgetary constraints and have opted to centralize operations.

Stakeholders Analysis:

The stakeholders that are involved with the movement of the helicopter production line from the Barstow facility to the new Aerial Acres facility are spread amongst the entire company. The stakeholders will be evaluated and classified using a power/influence grid method. It is important to be able to keep all participant levels of the project informed and with this grid evaluation, status updates and meetings can be tailored to the requirements of that specific group of stakeholders.

As depicted in the grid evaluation there are four main groups of stakeholders. All have different levels of power and participation/influence over the execution and overall outcome of the project. Upper management has high power but not as much influence as the middle managers because the middle managers will be actually working hands on with the project move while upper management will just be given updates as the project progresses. The hourly workers have little power about making decisions but their participation in the project will be high thus their influence will be high. The support staff has little power or influence as to the outcome of the project. Aircraft customers are not directly involved in the move but because of delivery requirements they have a vested interest to have the move be successful.

Project updates will be disseminated to the stakeholders weekly in face-to-face meetings due to the close geographical location of all parties involved. The general weekly meetings will be kept to a brief slideshow updating the following:

· Show progress in the network diagram/Gantt chart

· Critical upcoming deliverables

· Budget and questions

Project managers will provide additional information to stakeholders if questioned pertaining to the following as well:

· Project status reports

· Changes in scope

· Gating decisions

· Action items

· Deliverable issues

· Team status meetings

· Accepted request changes

· Milestone reports

Statement of Work:

The project scope will achieve the following deliverables:

· Research hangars available for new location

· Develop production impact and forecasting plan

· Acquire lease ownership of new facility

· Develop floor layout plan to maximize efficiency

· Prepare office space for administrative duties

· Relocate shop equipment

· Relocate shop personnel

· Relocate office equipment

· Relocate office personnel

· Prepare hangar space for production work

· Close out work in progress if possible

· Transition all work in progress, to new facility, if unable to close out

· Fit-up tests and Trial runs at new facility

· Start of work at new facility

· Finalization of turnover of old facility

Risk Assessment:

There are a number of risks associated with a project of this nature due to the planning and infrastructure requirements of a helicopter production line.

· Failure to meet customer delivery schedule due to interference relating to the move

· Risk of aircraft damage during movement from old to new location

· Risk of damage to major tooling and work platforms during move

· New facility may not have required floor plan/ infrastructure required of the production line

· Risk of not obtaining building codes and occupancy certifications in time so as to not impact planned production

Timeline:

The production line move will be fully operational by June 26, 2017 which is six weeks from the start date.

Scope Statement Development

The scope of the project is to relocate SMS LAB Engineering helicopter production line; to include (1) production line equipment, (2) production line personnel, (3) management office equipment, (4) management office personnel, and (5) current work being fabricated from Barstow, CA to Aerial Acres, CA within six weeks (42 calendar days) and at a cost not to exceed $1.2M. Total delay in production schedule not to exceed 15 business days.

WBS Structure

1. Facility (Major Deliverable #1)

1.1. Potential Locations

1.2. Risk assessments

1.3. Chosen Location

1.4. Lease

2. Facility Layout (Major Deliverable #2)

2.1. Development of production floorplan

2.1.1. Outline of equipment layout

2.1.1.1. Outline of build positions

2.1.1.2. Flow map of build processes

2.2. Development of office layout blueprint

3. Facility Readiness - All Permits obtained (Major Deliverable #3)

3.1. Equipment

3.1.1. Electrical equipment

3.1.2. HVAC system

3.1.3. Security system

3.1.4. Communications and network system

3.2. Operational permit

3.3. Building code inspections

3.4. Certificate of occupancy

3.5. Environmental clearance

4. Administrative department move

4.1. Office Equipment

4.2. Office Personnel

4.3. IT Network

5. Production department move

5.1. Production Equipment

5.2. Production Personnel

5.3. IT Network

6. Production at new facility (Major Deliverable #4)

6.1. First article inspections

6.2. Fit-up tests

6.3. First Run

6.4. Production evaluation

6.5. Lessons Learned

6.6. Production approved

6.7. Start of Production

7. Final Closeout old facility (Major Deliverable #5)

7.1. Restoration to acceptable conditions

7.2. unused equipment

7.3. Property turnover and end of lease

WBS Dictionary
WBS Code	Element Name	Definition	Responsible Organizational Unit
1	Facility	Facility lease obtained	Management
1.1	Potential Locations	Find three potential hangar/facility locations and define their characteristics	Management
1.2	Risk Assessments	Review of the risks associated with each of the facilities	Management and Operations
1.3.	Chosen Location	After review of the facilities, a decision must be made on which to select to lease	Management
1.4.	Lease	Lease is obtained for the selected facility	Management
2.	Facility Layout	Completion of all blueprints and layout plan	Management and Operations
2.1	Floor Production Plan	Development of the production facility layout	Management and Operations
2.1.1	Outline of equipment layout	Outline of equipment layout	Management and Operations
2.1.1.1	Outline of build positions	Outline of build positions completed	Operations
2.1.1.2.	Flow Map of build processes	Flow map of build processes completed for maximum efficiency in production	Operations
2.2	Office Layout Blueprint	Some equipment must be outsourced for moving between locations.	Management
3	Facility Readiness	Facility Readiness including all necessary permits having been obtained	Operations
3.1	Equipment	Installation of all equipment	Operations
3.1.1	Electrical Equipment	All electrical equipment installed	Operations
3.1.2	HVAC system	HVAC systems installed	Operations
3.1.3	Security System	Security System installed	Operations
3.1.4	Communications and Network System	Communications and network systems installed	Operations
3.2	Operational Permit	Operational permit obtained	Operations
3.3	Building code inspections	Building code inspections passed	Operations
3.4	Certificate of occupancy	Certificate of occupancy obtained	Operations
3.5	Environmental Clearance	Environmental clearance received	Operations
4	Administrative department move	Completion of Administrative department move	Management and Operations
4.1	Office equipment	Relocation of office equipment	Operations
4.2	Office personnel	Relocation of office personnel	Operations
4.3	IT Network	IT verification of network and office equipment readiness	IT Staff
5	Production department move	Completion of production department move	Operations
5.1	Production Equipment	Relocation of Production Equipment including aircraft in work completed	Operations
5.2	Production Personnel	Relocation of Production Personnel completed	Operations
5.3	IT Network	IT verification of network and office equipment readiness	Management and Operations
6	Production at new facility	Start of Production at new facility	Management and Operations
6.1	First article inspections	Completion any first article inspections required after moving tooling to a new address	Operations
6.2	Fit-up tests	Fit-up test with all machinery and moving parts	Operations
6.3	First Run	First production run on test item completed	Operations
6.4	Production Evaluation	Production evaluation on test run product	Operations
6.5	Lessons Learned	Review of Lessons learned during test run	Management and Operations
6.6	Production Approval	Management buyoff on approval to commence commercial production	Management
6.7	Production	Start of commercial production	Operations
7	Final Closeout of Old Facility	Final Closeout of old facility	Management
7.1	Restoration to acceptable conditions	Clean floors, Repair and repaint as necessary	Operations
7.2	Removal of Unused equipment	Removal of any unused equipment at old facility	Operations
7.3	Property turnover and end of lease	Property turnover and end of lease	Management and Operations

Scope Baseline Maintenance

● Scope will be maintained by following the WBS strictly ● Meet the 15-day delay requirement by adjusting production schedule in advance. Contingency plan includes overtime work to meet this requirement. ● Scope will be closely monitored, especially in the facility readiness section where review of documents submitted for permits is out of the team’s hands.

Scope Change

● If the six-week time frame is in jeopardy then budget increases could be considered to facilitate meeting the time deadline. ● Float will have to be included in the timeline to account for the external risk during review of documents to obtain permits. If the float is used up then the team will have to increase costs by working overtime in areas such as the production and office building movement of personnel and equipment to make up for the lost time.

Deliverable Acceptance

Major deliverables will be satisfied when: ● Facility acquisition- a new facility is under contract with a completed risk assessment. ● Layout - a functional flow for production is laid out and with required build positions and support staff. ● Facility readiness - all infrastructure improvements are completed. ● Production restarts - all basic tests are complete, (every build position is populated and runs through a full statement of work). ● Old facility close out - all materials and equipment are removed and floors are cleaned.

Scope and Requirements Integration

● There is a requirement to leave the old facility due to an expiring lease, the scope outlines how to fulfill this requirement. Furthermore, more specific requirements are added including movement of office, production equipment, and personnel into the new office as well as closing and completing the turnover of the old facility. ● There is a requirement to maintain a production schedule to meet expectations of customers. The scope accounts for how to meet this by defining within the WBS the tasks required. Additionally, contingency plans are included to ensure this requirement is met. ● The scope also mentions a not to exceed cost. This requirement maybe sacrificed in order to meet the lead-time on this project if it falls behind.

Schedule Methodology
Critical Chain Method would suit the project as most activities are sequential, with a few possible parallel paths, (this could include moving admin while production infrastructure is being built or beginning production at the new facility while the old facility is being prepped for closeout). The buffers referenced in the PMBOK (P. 178) would be an appropriate way to manage delays based on permitting or infrastructure improvements.
Schedule Tools
Crashing - Approving overtime as needed to make up delays that would jeopardize customer delivery requirements. Fast tracking - The initial schedule is primarily run in series, but there are opportunities to run actions in parallel, (eg. moving admin while production infrastructure is being worked and beginning production at the new facility while the old one is being prepped for close out). The critical feature here would be resource availability. As an option, contracting additional help during this phase may provide the project team with the needed extra resources for an added cost.
Level of Accuracy	Units of Measure	Variance Thresholds
+/- 5%	Days	Comparison of planned activity finish dates to actual finish dates
Schedule Reporting and Format
A summary schedule bar chart will be used to report the progress of the project. The size of the project lends itself to this style will make identifying bottlenecks in process more obvious.
Process Management
Activity identification	A comprehensive activity list will be used in identifying specific activity attributes, to include predecessors, successors, logical relationships, level of effort (LOE), resources required, and list project milestones. (PMBOK, 2013, p.153)
Activity sequencing	The method used for activity sequencing will be by precedence diagramming to logically relate activities as predecessors or successors. Specifically a start to finish (SF) logical relationship.
Estimating resources	The expert judgement of personnel from each department section in a Bottom-Up estimating at the work package level.
Estimating effort and duration	The tools and techniques for estimating activity effort and activity duration will be based on the expert judgement of personnel from each department section, to determine duration in days and what the level of difficulty an activity requires, example, Administrative personnel, will estimate how many days will be needed to have the computers up and running for shipping and receiving. We will also apply analogous estimates based on similar past activities to determine schedule durations.
Updating, monitoring, and controlling	Expert judgement will be used by the management team to monitor and control the processes. Updating the status of the project can be accomplished through meetings and face-to-face reviews.

Project Estimate

The team 4 project estimates the costs of labor, outsourcing services, and inspections and permits for the relocation of the SMS LAB Engineering helicopter production line from Barstow, CA to Aerial Acres, CA. There is a contingency fund, should the need arise to manage the time, costs, or quality performance of the project.

Project Estimate Bottom-Up and Expert Judgement Approach

The project estimates depend on the rank and file who will be active on the work packages to get an idea of the level of effort and resources involved in both labor hours and costs. The estimates identified major areas of expenditures listed below to complete the project on time and within budget:

· Labor

· Outsourced Services

· Inspections and Permits

· Contingencies

The project completion end date is 42 days from start, a cost limit of $1.2M for the project and an accuracy of +/- 5% or 2 days by comparing the planned activity finish dates to actual finish dates.

Labor

Employees number 80 with administrative staff numbering 30 and averaging $20/hour for 42 days equals $6,720/employee or $201,600 during the project. Production Line Technicians number 50 and average $25/hour for 42 days equals $8,400/employee or $420,000 during the project. Totaling $621,600 or 51% of the project costs.

Outsourced Services

· Architectural Plans & Layouts 80,000

· Subcontractors Electrical $60,000

· Subcontractors HVAC $60,000

· Subcontractors IT Communication Network $50,000

· Subcontractors Security System $40,000

· Aircraft Transportation $20,000

· Equipment Transportation $10,000

· Administrative Office Transportation $10,000

Totaling $330,000 or 27% of project costs.

Inspections and Permits

Analogous estimates have provided an estimation of the various costs during the subcontractor stages of the project along with the Inspection and Permit process.

· Deposits 20,000

· Inspections 25,000

· Permits 20,000

· Totaling $65,000 or 5% of project costs.

Contingencies

Extra fund for resolving schedule conflicts through techniques of schedule compression with fast tracking activities and or crashing an activity, will require a fund for mitigating unforeseen issues quickly and keeping the critical path on schedule. Totaling $183,400 or 15% of project costs for overtime labor costs paid at a rate of time and a half, $30/hour average administrative rate and $37/hour for the production line technicians. (Larson & Gray, 2014, p.133)

Budget Summary

In conclusion the sum of the labor costs, outsourced costs, inspection and permitting costs, and contingencies total $1.2M meeting all of the budgetary restrictions.

References

Larson, E. W. & Gray, C. F. (2014). Project Management: The Managerial Process (Sixth Edition). New York, NY: McGraw-Hill Education.