Project Management

Project Overview:

Step 1: Project Introduction

The project aims to introduce a computer system for the customer's new premises.

Step 2: Components of the Project

The project consists of three major components:

 Development of high-speed intelligent terminals for ten remote sites.

 Implementation of a fast, secure, enterprise-wide management information system (ERP).
 The ERP includes standard order entry, financial management, logistics management
(including inventory control, distribution planning, and vehicle routing) across all sites.

Step 3: Main Contractor and Subcontractors

 Strathclyde Systems is the main contractor responsible for project delivery.

 The project involves several subcontractors, including Fast Memory Products Limited,
Werner & Scheiss, Powerpax Limited, OPTO Cablayers Limited, and Acme Installers Ltd.

Step 4: Hardware and Software Responsibilities

 Strathclyde Systems is responsible for supplying all the hardware.

 MANSCI will supply proprietary software, with modifications to meet local requirements.
 MANSCI is responsible for the programming of the software, while Strathclyde is responsible
for the full system test, consultancy, staff training, and commissioning.

Step 5: Terminal Specification

A detailed specification for the high-speed intelligent terminals has been agreed upon.

Step 6: Phased Implementation

The project will be implemented in phases:

 Initially, MANSCI will start using the system at the site closest to the new premises.
 Three additional sites will be connected to the system three months after successful tests of
the first site.
 The remaining six sites will have their terminals installed within the following six months.

Step 7: New Premises

 The new premises will serve as the central hub for the computer system.
 It will provide office space for various personnel, including computer operators,
programmers, planning staff, and management.

Step 8: Initial Usage

Initially, the computer system will be used for payroll and materials management.

Step 9: Future Scope

The system's ultimate purpose is to provide management global information services company-wide.
Step 10: Project Value and Contract

The Strathclyde System's part of the project is valued at approximately £5 million.

The contract is based on a fixed cost, with penalties for any delinquent performance.

Step 11: Monitoring Request

MANSCI has requested accurate, timely, and detailed monitoring of the project to ensure its
successful execution.

Step 1: Customer's Contract Features

 The computer room must be ready for the computer by week 42, which is forty-two weeks
after the contract signing.
 Penalties will be incurred if the computer room is not ready within five weeks after week 42.
The penalty rate is £25,000 per week for each week of delay.
 The customer (MANSCI) commits to making all reasonable efforts to ensure that the
software programming is not a source of delay for the hardware contractor. They aim to
complete program writing by week 40.
 After the computer to terminal link testing, there will be nine weeks allocated for final
program trials, followed by a two-week phase for final program trials. Then, there will be a
four-week period for operational trials.

Step 2: Supplier's Contract Features

 The supplier (Strathclyde Systems) is committed to installing the mainframe computer and
client server within three weeks of the computer room being ready, which is expected by
week 42.
 The supplier, however, is not obliged to complete the installation until the end of week 47.
Penalties will apply if they go beyond week 47, with a rate of £30,000 per week.
 The supplier is responsible for supervising the final operational trials with the customer's
software.

Step 3: Main Contractor's Plans

 Strathclyde Systems has planned to build the mainframe and client server by week 33 in their
own factory.
 Following the factory build, a full system test, using the first terminal, will run for three
weeks in their Elab facility.
 The high-speed intelligent terminal, which arrived in week 30, has ten weeks for
modifications, new covers, and testing before being integrated with the computer for the
system tests.
 Advanced fiber optic cables are needed for the terminal sites, with a long delivery time of 35
weeks, and the installation will take an additional three weeks.
 Strathclyde will purchase the cables, and OPTO Cablayers will carry out the necessary routing
and cabling work.
 Terminals two to four are planned to arrive at week 36 and will require five weeks for
modification and testing before being sent to the next three sites.

Step 4: Overview of Strathclyde Systems

  Strathclyde Systems is the main contractor, a medium-sized computer systems supplier with
approximately 2,800 employees.
 The company is part of the Cosco group and has headquarters in Glasgow, Scotland, along
with other offices in Bonn and San Francisco.
 They are currently experiencing strong growth in business activity.
 While they manufacture various hardware systems, including client servers, specialized
printed circuit boards (PCBs), and packet switching equipment, they are contemplating a
strategic shift towards outsourcing manufacturing work and focusing on project-managed
solutions.

Step 5: Company Facilities

 Strathclyde Systems operates one site as a manufacturing, warehouse, and assembly

location.
 Another site serves as a final test and projects facility, known as 'the Bin.'
 These facilities are located in Scotland and another site is located three hundred miles away
in England.

Stakeholders:

 ManSci International Ltd (MANSCI): They are the customer and project sponsor, representing
the organization's interests and goals.
 Strathclyde Systems: The main contractor responsible for project delivery.
 Fast Memory Products Limited (FMP): A supplier of memory stores, playing a role in
providing components for the project.
 Werner & Scheiss: The German company supplying intelligent terminals, with a significant
role in the project.
 Powerpax Limited: A local subcontractor providing power supplies.
 OPTO Cablayers Limited: A company responsible for cable installation at terminal sites.
 Acme Installers Ltd: A local subcontractor used by Strathclyde for fittings and finishing.
 Mercurial Communications: Providing high-bandwidth fiber optic landlines for the project.
 Project Management Team: Including Angus Stuart, Gordon Brown, Chris Larsson, Bill
Ferguson, Rod Green, and Isabel Baird from Strathclyde Systems.
 Corporate Commercial Organization: Represented by Bill Ferguson for contract negotiations
and arrangements.
 Sales Executive (Isabel Baird): Responsible for sales and customer relations.

End Users:

 ManSci International Ltd (MANSCI) Staff: Employees of MANSCI who will use the computer
system for various purposes, including payroll and materials management.
 Employees at New Premises: Those working in the new premises who will rely on the
computer system for their day-to-day tasks, including computer operators, programmers,
planning staff, and management.
 Remote Site Personnel: Individuals at the ten remote sites using the intelligent terminals for
their specific tasks.
 Global Management Personnel: Those in the organization who will rely on the enterprise-
wide management information system (ERP) for decision-making and operations at a
company-wide level.
  Customers and Suppliers: External parties who may interact with the system in various
capacities, such as order entry and distribution planning.

These stakeholders and end users have different interests and roles in the successful execution and
use of the project's computer system. It's essential to consider their needs and expectations
throughout the project to ensure its success.

Monday morning meeting of Week 31

Terminal Laser Fault: Angus Stuart confirmed a basic fault in the terminal laser system. Werner &
Scheiss, the subcontractor, had also experienced similar issues. The correction kits would not be
available for at least five weeks, requiring two additional weeks for installation and retesting.

Cost Overruns: Chris Larsson reported cost overruns and complications in modifying the terminal-
server communications. Original estimates had significantly increased, impacting the project's
budget.

Timescale Delays: Fast Memory Products Ltd's delay in delivering the Fast Memory Chipset would
postpone the computer build completion by four weeks, with no alternative arrangement available.

Omissions in Project Plan: Two omissions were noticed by the project management team: the
installation of the terminal after dispatch, taking up an additional week, and the dismantling and
dispatch of mainframe/client server and terminals, requiring three weeks in total.

Concerns and Rumors: Rumors of OPTO Cablayers nearing financial collapse raised concerns. A fax
from Werner & Scheiss proposed charging £7,000 for each modification kit, claiming financial losses
due to the initially low price. The budget performance figures were yet to be collected but were a
source of concern.

Additionally, concerns were raised about the quality of work by Acme Installers Ltd, and Powerpax
Limited was struggling with the reliability of power supplies for the terminals. These discussions
highlighted various challenges and uncertainties in the project, including technical issues, cost
overruns, and concerns regarding subcontractors' financial stability.

During Monday's lunchtime in Week 31, the project manager had a conversation with the group
accountant, who informed him about concerns regarding OPTO Cablayers' financial stability. OPTO
Cablayers was responsible for cabling in the terminal sites, and their financial troubles could impact
the project. The accountant suggested considering this factor in the project planning. Additionally,
the project manager was asked about the overdue update report on project costs. These discussions
highlighted potential financial risks and the need to monitor project expenses closely.
During Monday afternoon in Week 31, the project management team discussed potential time
extensions due to Werner & Scheiss and memory store delays. Werner & Scheiss suggested a shorter
delay with extra costs, but Strathclyde was hesitant to pay, believing it was the subcontractor's
responsibility. They also considered reprioritizing work to save time, which might affect one of Isabel
Baird's projects.

On Tuesday morning in Week 31, the project management team met with Ian Simpson and Isabel
Baird. They discussed delays in building and software development, considered duplicating terminals
in each site due to potential hardware issues, and addressed the capacity of the client server. Isabel
Baird offered to provide a quote for this additional work after discussing potential engineering and
system concerns.

On Thursday morning in Week 31, the project management team discussed the addition of
terminals and agreed that the required switching was standard and not technically problematic. They
noted that the equipment needed to be fitted before testing, which would take one week, but there
were no delivery issues.

Additionally, they received a fax from Werner & Scheiss, proposing costs to reduce the delay in
terminal modifications, which would help reduce the extension to the modification period.

Solution:

Risk Assessment:

 Identify and document all potential risks to the project, including delays, cost overruns, and
supplier issues.
 Prioritize these risks based on their impact and likelihood.

Stakeholder Communication:

 Maintain regular and transparent communication with the customer (ManSci International)
to discuss project delays and address their concerns.
 Keep the project team and stakeholders informed about any critical developments.

Supplier Management:

 Engage in constructive discussions with suppliers like Werner & Scheiss regarding the
terminal laser system fault.
 Determine if the cost-sharing proposal to reduce the delay is acceptable and financially
justifiable.
 Collaborate with suppliers to expedite delivery wherever possible.

Scope Management:

 Reevaluate the need for terminal duplication at each site in light of potential project delays.
Ensure that the duplication is necessary and cost-effective.
Cost Control:

 Continuously monitor project costs and establish a revised budget, taking into account the
increased costs for terminal modifications and the potential financial troubles of OPTO
Cablayers.
 Reassess the profitability of the project under these new cost conditions.

Schedule Management:

 Update the project schedule to reflect the new estimated timeframes for the terminal
modifications, memory stores delay, and other challenges.
 Consider revising the project timeline to accommodate these delays and evaluate the impact
on the final delivery date.
 Add the previously omitted tasks, such as the installation of terminals after dispatch and the
transfer of mainframes and terminals to Elab and respective sites.

Quality Assurance:

 Address concerns related to the quality of work by Acme Installers and Powerpax Limited.
Consider conducting inspections and quality assurance checks to ensure that the project's
quality standards are met.

Financial Health of Suppliers:

 Keep a close eye on the financial stability of critical suppliers like OPTO Cablayers. Develop
contingency plans if they face financial issues to prevent disruptions.

Resource Allocation:

 Assess whether additional resources are required to overcome the delays, particularly for the
terminal modifications.

Alternative Solutions:

 Explore alternative suppliers for critical components or services in case primary suppliers
cannot meet project requirements.

Document Management:

 Keep comprehensive records of all project discussions, decisions, and agreements with
suppliers and customers. Maintain clear documentation for potential legal and contractual
matters.

Change Management:

 Implement a formal change management process for any adjustments to the project scope,
schedule, or budget.

Continuous Monitoring and Contingency Planning:

 Regularly monitor the project's progress, risk factors, and budget performance.
 Develop contingency plans and strategies to mitigate risks and delays as they arise.
Review with Customer:

 Present the revised project timeline and budget to the customer and discuss any
adjustments or concerns.
 Seek customer input and approval for changes to the project plan.

Team Collaboration:

 Ensure all team members understand the updated project plan and their responsibilities in
addressing challenges.

Note : Based on our requirement we need to use one of these

below models

Table of Contents
 Waterfall Methodology
 Agile Methodology
 Scrum Methodology
 PMI / PMBOK
 Critical Path Method (CPM)
 Kanban Methodology
 Extreme Programming (XP)
 Lean Methodology
 Six Sigma
 PRINCE2