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

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 4 WORK BREAKDOWN STRUCTURE ...................................................................... 6 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 7 GANTT CHART ....................................................................................................... 9 RISK MANAGEMENT PLAN ................................................................................. 10 7.1 RISK ASSESSMENT MATRIX ..................................................................... 10 7.2 RISK RESPONSE PLAN .............................................................................. 10 8 9 COMMUNICATIONS PLAN ................................................................................... 11 QUALITY PLAN ..................................................................................................... 11

10 CHANGE MANAGEMENT PLAN .......................................................................... 12 11 PROCUREMENT MANAGEMENT PLAN.............................................................. 12 12 BIBLIOGRAPHY .................................................................................................... 13

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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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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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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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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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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.

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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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 setup 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.

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.

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

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