SEISMIC ZONE RESIDENTIAL CONSTRUCTION IMPROVEMENT PROGRAM (UoL, 2011 ) Seismic Zone Residential Construction Improvement Program project development is based on the lectures given in the books ‘PMP ® in depth: project management professional study guide for the PMP ® exam’ (Sanghera, 2010) and ‘Effective Project Management: Traditional, Agile, Extreme’ (Wysocki, 2009). Individual project assignment, resources, costs and schedule for working out this project are given in material handed over by University of Liverpool/Laureate Online Education (UoL, 2011). Flexible Models Industrial Model Developers and Builders Research and Development Unit Property Development Department of the Government (PDDG) Someplace Somewhere Project: The Seismic Zone Residential Construction Improvement Program SEISMIC ZONE RESIDENTAL CONSTRUCTION IMPROVEMENT PROGRAM PROJECT SCOPE STATEMENT Scope is defined as description of the project boundaries and is defining what project will deliver, what is needed and organizations affected. Flexible Models (FM) will design, produce and assemble specified ‘PDDG Box Mk3’ on the site designated by Property Development Department of the Government (PDDG) in order that PDDG can start their work on effectiveness assessment of the boxes. Planned project duration is 51 day with cost of $121,794.00 and project plan is shown in the Gantt chart as part of this scope. Given plan, in Appendix A is created with assumption that there will be no delays in transport, specifications given are final and that PDDG will prepare site for assessment in time to receive shipment and that implementation may begin. As per Stoller (2010) The Gantt chart will help project manager and stakeholders in communication by visualizing timelines and their interrelation as well as dependencies. Project will be created in Microsoft Project instead of previously planned OpenProj, which change should not bring any alternations to the plan itself but will enhance control and communication as MS Project offers availability of connection to our Web‐based project tracking system which is offering information on the project at any moment in time. Quality of the delivered boxes is depending entirely on quality of the material specified by PDDG while FM is guaranteeing best possible design and production from their end. The quality of the project itself will be controlled trough the Quality Management Plan, which consists of the details on quality assurance, quality control and continuous improvement.
Transcript
SEISMIC ZONE RESIDENTIAL CONSTRUCTION IMPROVEMENT PROGRAM (UoL, 2011) Seismic Zone Residential Construction Improvement Program project development is based on the lectures given in the books ‘PMP® in depth: project management professional study guide for the PMP® exam’ (Sanghera, 2010) and ‘Effective Project Management: Traditional, Agile, Extreme’ (Wysocki, 2009). Individual project assignment, resources, costs and schedule for working out this project are given in material handed over by University of Liverpool/Laureate Online Education (UoL, 2011).
Flexible Models Industrial Model Developers and Builders
Research and Development Unit Property Development Department of the Government (PDDG) Someplace Somewhere Project: The Seismic Zone Residential Construction Improvement Program SEISMIC ZONE RESIDENTAL CONSTRUCTION IMPROVEMENT PROGRAM PROJECT SCOPE STATEMENT
Scope is defined as description of the project boundaries and is defining what project will deliver, what is needed and organizations affected.
Flexible Models (FM) will design, produce and assemble specified ‘PDDG Box Mk3’ on the site designated by Property Development Department of the Government (PDDG) in order that PDDG can start their work on effectiveness assessment of the boxes. Planned project duration is 51 day with cost of $121,794.00 and project plan is shown in the Gantt chart as part of this scope. Given plan, in Appendix A is created with assumption that there will be no delays in transport, specifications given are final and that PDDG will prepare site for assessment in time to receive shipment and that implementation may begin. As per Stoller (2010) The Gantt chart will help project manager and stakeholders in communication by visualizing timelines and their interrelation as well as dependencies.
Project will be created in Microsoft Project instead of previously planned OpenProj, which change should not bring any alternations to the plan itself but will enhance control and communication as MS Project offers availability of connection to our Web‐based project tracking system which is offering information on the project at any moment in time.
Quality of the delivered boxes is depending entirely on quality of the material specified by PDDG while FM is guaranteeing best possible design and production from their end. The quality of the project itself will be controlled trough the Quality Management Plan, which consists of the details on quality assurance, quality control and continuous improvement.
Resources for production are available in all departments except in 'Cutting and parts development' department which is scheduled for work on the earlier contracted projects, however, they may be available for this project exclusively if we reschedule them from other projects which action may result in increase of cutting costs as we will have to hire sub‐contractors for other ongoing projects or utilize them when they are free from their assignments elsewhere which may cause schedule extension for 6 days for each day delayed in this particular task. Cost of exclusive availability is shown in the cost estimation. Work Breakdown Structure (WBS) is created and shown in Appendix B and based on it Requirement Breakdown Structure (RBS) and Staffing (Resources) Management Plan are created in the next chapter of this paper. Portny (2010) stating that WBS is laying foundation of the project’s success by putting down on the paper all work required to be done in order to accomplish stated objectives, further, WBS must be comprehensive and friendly to understand to others by organizing it in accordance with immediate and final deliverables. In his article on significance of WBS, Zhao (2006) wrote following: ‘The level of detail shall be driven by a well established work breakdown structure (WBS), which shall be inherently built into a contingency risk model. When the contingency amount is derived, it will be automatically dispersed into appropriate accounts based on the risk levels and cost weighing factors. He is also writing that ‘using the WBS to help break down the estimate has far reaching effects for both cost management and contingency depletion, because: ‐ Future changes can be attributable to the associated WBS accounts; ‐ Human errors can be traceable back to appropriate WBS home domains; ‐ Responsible individuals can be accountable for respective WBS contingency; ‐ Potential savings can be recognizable in corresponding risk free WBS’. Scope of work is remaining the same as described in the Project Proposal. Schedule (Wysocki, 2009, pp.242‐244) is presented in the Gantt chart – Appendix A, with possible prolongation of 12 days if PDDG decline option for the cost compensation in order to secure 'Cutting and parts development' department specialists availability. Deliverable of this project is boxes production, delivery and their implementation on the site designated by PDDG. FM is not bearing any responsibility for the quality of material specified by PDDG, further there is no fault or any responsibility of FM if delivery or implementation is delayed due to natural causes (weather conditions) or PDDG failure to prepare implementation site timely. Product, boxes of a particular dimension used in the foundation of buildings is designated as ‘PDDG Box Mk3’ and specification for it is set by Research and Development Unit (RDU) of PDDG. Product will be accepted if quality control confirms conformity with specifications after assembly integration is completed.
Project stakeholders: Name Position Department Company
Mario Hajdin Project Manager Project FM Roy Benjamin General Manager Designing and Drafting FM
Michael Gartner General Manager Cutting FM Philip Cloony General Manager Assembly FM Jim Stanford General Manager Supply Chain
Management FM
John Morris Vice President New Model FM Caroline Smith Marketing Chief Marketing FM
Paul Lee Technical Lead RDU PDDG Program Manager Seismic Zone PDDG
Joseph Bukhmann Chief Editor Construction Consortium Journal
STAFFING (RESOURCES) MANAGEMENT PLAN Resources requirement is estimated by use of Estimate Activity Resources process, which purpose is to give us estimation on resource types needed and estimation on quantity of each type of needed resource (Sanghera, 2010). In order to create Resources Management Plan following Requirement Breakdown Structure (RBS) is developed in the table shown bellow (Wysocki, 2009, pp.63‐65):
3.2 Metal sheet purchasing Supply Chain Management
Caroline Smith
3.3 Cubes Purchasing Supply Chain Management
Caroline Smith
4 ‐ Production 4.1 Set up Assembly Philip Cloony 4.2 Cutting and parts
development Cutting Michael Gartner
4.3 Sub‐Assembly 1 Assembly Philip Cloony 4.4 Sub‐Assembly 2 Assembly Philip Cloony 4.5 Sub Assembly 3 Assembly Philip Cloony 4.6 Assembly integration Assembly Philip Cloony
Staffing (resources) management plan is shown in Appendix C and project network schedule in Appendix D. COST ESTIMATION Hamilton (2006) is stating that ‘cost management is the process of estimating, control, and data analysis to establish a continuous cycle of information for the efficient implementation of projects’. In his article Good (2009) is stating that defined project scope is base of cost estimation. He is writing following: ‘The development team and cost estimator must provide their best estimate of actual required quantities. Quantities will developed using a variety of sources, including the cost estimators knowledge and experience, comparable industry projects, company databases, functional experts, and historical factors. Pricing is typically sourced from procurement groups, recent comparable past projects, and vendors/contractors’. Good (2009) further establishing that cost estimate always must have back‐up which is showing origin of the numbers and what assumptions were made and that is very important that there is no hidden contingencies in cost estimation, simply because, he says, hidden contingencies regardless whether they coming from inflating prices or quantities, degrading quality of cost estimation, eroding management confidence in cost estimation and may ultimately show the picture of uneconomic project. Cost calculation for Seismic Zone Residential Construction Improvement Program is made based on methodology given in Sanghera’s book (2010, pp.357‐361) and final project description handed by University of Liverpool (UoL, 2011).
Task ID Cost Description Duration Total Cost $ 1.1 work 4 4,800.001.2 work 6 14,400.001.3 work 2 1,200.002.1 work 4 2,400.002.2 work 6 10,800.003.1 material 1,000.003.2 material 1,250.003.3 material 9,000.004.1 work 4 3,600.004.2 work 3 2,430.004.3 work 6 10,800.004.4 work 6 10,800.004.5 work 4 4,800.004.6 work 3 2,700.005.1 Fixed cost 2 3,000.005.2 Fixed cost 14 6,000.00
5.3 work 7 18,900.00 Grand Total $: 107,880.00 Initial calculation showing estimated total cost at $107,880, however, final cost will be determined after Risk Management Plan analysis is performed. According to Ciraci and Polat (2009) accurate cost estimate made in planning stage is having potential of averting many problems. RISK MANAGEMENT PLAN Bragdon (2007) is stating that ‘risk identification is iterative; it must be properly executed on a continuing basis in order for the overall risk management effort to add any value. Nevertheless, there is no surefire formula for success. Successful risk identification requires discipline and creativity, urgency and patience, technical knowledge and intuition’. ‘Risk is the uncertainty of occurrence of a phenomenon which, if happens, has a positive or negative effect on project objectives. Risk indicates the impact of a future event on current projects and measures the degree of deviation from the objectives of the project proposed standards. Any activity requires knowledge and risk taking. For successful activity is necessary to identify all possible risks, their quantification, and taking entire period of their progress’ (Melnic, 2010). For this project risk identification was conducted in the initial project risk assessment meeting. Risks have been identified and as schedule is quite stringent those risks are included in the Risk Register. It is still remaining to conduct Risk Assessment Meeting of senior project team members and stakeholders and eventual additional risks identified should be also entered in the Risk Register. Risks in this project will be managed and controlled within the management, interproject, technical and time constraints. All of identified risks must be evaluated in order to determine how they affect those constraints. The project manager, with the project team assistance, will determine the best way of response for each risk in order to ensure compliance with those constraints. Risk management plan for Seismic Zone Residential Construction Improvement Program Risk ID
Constraint type
Risk Identification Risk Mitigation Person in Charge
1 Management
Interproject
Two leading cutters from Cutting Department may
not be available for scheduled dates
Rescheduling their tasks in order to ensure that they are available on required days
Michael Gartner
2 Management Rescheduling and transfer of designers and assemblers from task to
task
Updated list on personnel deployment must be kept and reviewed daily in order to make timely transfer
Roy Benjamin Philip Cloony
3 Management Possible schedule creep Management team must monitor the project at all times and keep up to date
with activities.
Department Heads
Mario Hajdin
4 Technical Tasks 1.3 and 4.6 are critical for the project
Heads of Departments must control given schedule and
Roy Benjamin Philip Cloony
and delay with timely completion of any of these two will cause
chain of delays
ensure that required resources are available for scheduled
days
5 Technical Possible delay of Shipmen/Delivery, task
5.2
Person in charge of the hiring subcontractor for the task must stress situation to the subcontractor and ensure
severe contractual penalty in case of delay which must cover costs created by that
delay
Jim Stanford
6 Technical Possible damage to the components during pre‐
delivery and shipment/delivery
Person in charge of the hiring subcontractors for the tasks must stress that fact to the subcontractor and ensure
severe contractual penalty in case of delay which must
cover additional costs created by damage
Jim Stanford
7 Technical Weather conditions on the implementation site
Site must be protected from rain, secure required
protection accessories from PDDG
Mario Hajdin
Jim Stanford
8 Technical Change in client requirements after
cutting stage
Contract between FM & PDDG must cover such possibility and allow change of the
schedule, reimbursement of the costs caused by
requirement change as well as covering costs of requirements
change.
Mario Hajdin
9 Technical Delay in the arrival of raw materials
There is enough time to arrange for timely delivery and SCM is having enough time to get the quotes well in advance
and make preliminary agreement on delivery of
material
Jim Stanford
10 Technical Incorrect set up Historical data for similar projects in the past must be
reviewed and stringent control of set up must be observed.
Philip Cloony
11 Time Tight schedule Management team must monitor the project at all times and keep up to date
with activities.
Mario Hajdin
Department Heads
Risk with highest probability at the moment and prospective highest damage to the cost and schedule is Risk #1, Task 4.2 which must be eliminated. Elimination is of utmost importance as impact of Risk#1 is irreparable to the schedule and the cost. Mario Hajdin and Michael Gartner will coordinate with leaders of other projects and arrange for cutters availability on required days which will eliminate this risk. ‘Traditionally, there has been a 0.3 probability of components getting damaged during shipment and the costs should incorporate 30% of additional budgeting for these incidences’ (UoL, 2011). Affected Tasks in case of damage
Cost Description
Calculated cost $
Additional Budgeting %
Cost with Additional Budgeting $
3.1 material 1,000.00 30 1,300.003.2 material 1,250.00 30 1,625.003.3 material 9,000.00 30 11,700.004.1 work 3,600.00 30 4,680.004.2 work 2,430.00 30 3,159.004.3 work 10,800.00 30 14,040.004.4 work 10,800.00 30 14,040.004.5 work 4,800.00 30 6,240.004.6 work 2,700.00 30 3,510.00
Grand Totals $ 46,380.00 60,294.00 It is visible that activities 3 and 4 will be affected in the case of the damages and additional material must be purchased in order to replace damaged and with that additional labor must be hired in order to meet schedule requirements. For that purpose additional funds in the budget must be added in amount of $13,914.00 which is setting total cost of the project at $121,794.00 as final. COMMUNICATION PLAN ‘The right policy, with both letter and spirit, can guide workers toward effective communications. Especially as organizations introduce electronic management information systems, with communication applications such as shared data‐bases, electronic mail, or computer‐generated routine reports and letters, the need for communication policy would appear to become critical’ (Gilsdorf, 1987) In order to achieve highest possible efficiency and contact with clients, FM is developed and using Web‐based project tracking system which helps management, team and clients to obtain any information on the project and offer their feedback and comments. Such developed Web‐based tracking system offering and welcoming active participation to all stakeholders in the project. As primary mean of communication FM is using e‐mail and telephone contacts, and for that purpose project stakeholders directory is created and distributed to all stakeholders. PROJECT STAKEHOLDER DIRECTORY
Communication plan for the project is as shown in Appendix E. QUALITY PLAN Oakland (2011) wrote that effective Total Quality Management (TQM) is ensuring that strategic overview of quality is adopted by management and focuses to prevent not to detect possible problems. That is in essence way how to plan, organize and understand each activity and it is depending on each team member at each level. Further, Oakland (2011) stating that ‘quality policy requires top management to: 1. Identify the end customer’s needs (including perception); 2. Assess the ability of the organization to meet these needs economically; 3. Ensure that any bought‐in materials meet the required standards of performance and efficiency; 4. Ensure that subcontractors or suppliers share the values and process goals; 5. Concentrate on the prevention rather than detection philosophy; 6. Educate and train for quality improvement and ensure that any subcontractors do so as well; 7. Measure customer satisfaction at all levels, the end customer as well as customer satisfaction between the links of the supply chain; 8. Review the quality management systems to maintain progress. Quality plan for the project is as shown in Appendix F. References: University of Liverpool, (2011), PLANNING AND BUDGETING WITH RISK (MPM).20110505.203 (UKL1.PBWRSK.20110505.203) WEEK 4 ASSIGNMENTS [Online]. Available from: University of Liverpool/Laureate Online Education (Accessed: 25 May 2011)
Sanghera, P. (2010), PMP® in depth: project management professional study guide for the PMP® exam. 2nd ed. Boston: Course Technology/Cengage Learning. Wysocki, R.K. (2009), ‘Effective Project Management: Traditional, Agile, Extreme’, 5th ed., Indianapolis, USA, Wiley Publishing Inc. Stoller, J. (2010), 'The world according to Gantt', CMA Management, 84, 5, pp. 33‐34, Business Source Premier, EBSCOhost, (Accessed: 18 March 2011). Portny, S.E. (2010), 'Improving Project Performance With Three Essential Pieces of Information', Journal for Quality & Participation, 33, 3, pp. 18‐25, Business Source Premier, EBSCOhost, (Accessed: 31 March 2011). Zhao, J. (2006), 'Significance of WBS in Contingency Modeling', AACE International Transactions, pp. 5.1‐5.5, Business Source Premier, EBSCOhost, (Accessed: 22 June 2011). Hamilton, A.C. (2004), 'Cost Management', AACE International Transactions, p. 1, Business Source Premier, EBSCOhost, (Accessed: 22 May 2011). Good, G.K. (2009), 'Project Development and Cost Estimating ‐ A Business Perspective', AACE International Transactions, pp. TCM.01.1‐TCM.01.14, Business Source Premier, EBSCOhost, (Accessed: 22 May 2011). Ciraci, M. & Polat, D. (2009), 'Accuracy Levels of Early Cost Estimates, in Light of the Estimate Aims', Cost Engineering, 51, 1, pp. 16‐24, Business Source Premier, EBSCOhost, (Accessed: 22 May 2011). Bragdon, D.J. (2007), 'The Importance of Risk Identification', Defense AT&L, 36, 3, pp. 13‐16, Business Source Premier, EBSCOhost, (Accessed: 2 June 2011). Melnic, A. (2010), 'RISK RESPONSE STRATEGIES IN PROJECT MANAGEMENT', Metalurgia International, pp. 74‐78, Computers & Applied Sciences Complete, EBSCOhost, (Accessed: 2 June 2011). Gilsdorf, J.W. (1987), 'Written Corporate Communication Policy: Extent, Coverage, Costs, Benefits', Journal of Business Communication, 24, 4, pp. 35‐52, Business Source Premier, EBSCOhost, (Accessed: 10 June 2011). Oakland, J. (2011), 'Leadership and policy deployment: the backbone of TQM', Total Quality Management & Business Excellence, 22, 5, pp. 517‐534, Business Source Premier, EBSCOhost, (Accessed: 22 June 2011)
ID Task Name Duration Start Finish Predece Resource Names
TeamStatus Pending: No 51 days Mon 6/27/11 Mon 9/5/111 Interview clients stakeholders 4 days Mon 6/27/11 Thu 6/30/11 Design Department
2 Product detail analysis 6 days Mon 6/27/11 Mon 7/4/11 Design Department,Assembly Department
3 Refinement of the final draft 2 days Wed 7/6/11 Thu 7/7/11 1,2 Design Department
4 High level design 4 days Fri 7/8/11 Wed 7/13/11 3 Design Department
5 Details with operation designs 6 days Tue 7/12/11 Tue 7/19/11 3 Design Department
6 Set up 4 days Wed 7/20/11 Mon 7/25/11 4,5 Assembly Department
7 Purchase required material - Card 1 day Wed 7/20/11 Wed 7/20/11 5 Supply Chain
8 Purchase required material - Meta 1 day Thu 7/21/11 Thu 7/21/11 5 Supply Chain
9 Purchase required material - Cub 1 day Fri 7/22/11 Fri 7/22/11 5 Supply Chain
10 Cutting and parts development 3 days Tue 7/26/11 Thu 7/28/11 6,7,8,9 Cutting Department
11 Sub-Assembly 1 6 days Tue 7/26/11 Tue 8/2/11 6,7,8,9 Assembly Department
12 Sub-Assembly 2 6 days Tue 7/26/11 Tue 8/2/11 6,7,8,9 Assembly Department
13 Sub-Assembly 3 4 days Tue 7/26/11 Fri 7/29/11 6,7,8,9 Assembly Department
14 Assembly Integration 3 days Wed 8/3/11 Fri 8/5/11 10,11,12 Assembly Department
15 Pre-delivery 2 days Tue 7/26/11 Wed 7/27/11 6 Pre-Delivery
16 Shipment 14 days Mon 8/8/11 Thu 8/25/11 14,15 Shipment/Delivery
17 Implementation 7 days Fri 8/26/11 Mon 9/5/11 16 Design Department,Assembly Department
S M T W T FJun 19, '11
Task
Split
Progress
Milestone
Summary
Project Summary
External Tasks
External Milestone
Deadline
Page 1
Project: Seizmic ZoneDate: Tue 6/28/11
APPENDIX A - PROJECT SCHEDULE
Design Department
Design Department,Assembly Department
Design Department
Design Department
Design Department
Assembly Department
Supply Chain
Supply Chain
Supply Chain
Cutting Department
Assem
Assem
Assembly Department
Pre-Delivery
S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W TJun 26, '11 Jul 3, '11 Jul 10, '11 Jul 17, '11 Jul 24, '11 Jul 31, '11
Task
Split
Progress
Milestone
Summary
Project Summary
External Tasks
External Milestone
Deadline
Page 2
Project: Seizmic ZoneDate: Tue 6/28/11
APPENDIX A - PROJECT SCHEDULE
bly Department
bly Department
Assembly Department
Shipment/Delivery
Design Department,Assembly Departm
F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T WAug 7, '11 Aug 14, '11 Aug 21, '11 Aug 28, '11 Sep 4, '11 Sep 11, '11
Task
Split
Progress
Milestone
Summary
Project Summary
External Tasks
External Milestone
Deadline
Page 3
Project: Seizmic ZoneDate: Tue 6/28/11
APPENDIX A - PROJECT SCHEDULE
Project
Completion
Purchasing
MaterialProductionRequirement
Analysis
Design and
ConceptDelivery
Pre‐deliveryProduct detail analysis
Interview clientstakeholders
APPENDIX B – WORK BREAKDOWN STRUCTURE
Cardboard SheetPurchasing
Metal SheetPurchasing
CubesPurchasing Implementation
Delivery
Refinement ofthe final detail
High level design
Details with operation design
Assembly integration
Cutting and Parts developm.
Sub‐Assembly 1
Sub‐Assembly2
Sub‐Assembly 3
Set up
APPENDIX C – STAFFING (RESOURCES) MANAGEMENT PLAN
Activity
ID Task ID Requirement Period Days Total Rqre
per Task Transfer to Task ID
Transfer from Task
ID
Remark Total Required Availability for Activity
1 1.1 Designer 27.06‐30.06 4 8 1.2 After completion of task 1.1 transfer to 1.2
1.2 Designer 27.06‐30.06 4 10 Required 10 designers for first 4 days of 1.2
1.2 Designer 03.07‐04.07 2 10 1.3 1.1 8 designers transferred on completion of 1.1
1.2 Assembler 27.06.‐04.07 6 6 6 1.3 Designer 06.07‐07.07 2 4 1.2 After completion of
task 1.2, 4 designers transferred to task 1.3
18
2 2.1 Designer 08.07‐13.07 4 4 2.2 After completion of task 2.1 transfer to 2.2
2.2 Designer 12.07‐13.07 2 12 Required 12 designers for first 2 days of 2.2
2.2 Designer 14.07‐19.07 4 8 2.2 After completion of task 2.1, 4 designers transferred to task 2.2
16
4 4.1 Assembler 20.07‐25.07 4 6 4.3 & 4.4 After completion of task 4.1, 3 assemblers transfer to task 4.3 and other 3 to task 4.4
