1/1/07

Project Management Case Study

The Custom Woodworking Company Woody 2010 Project
R Ma! Wideman
AEW Services, Vancouver, BC, Canada, 2007
Project Manageent !raining "nstitute #PM!"$
"ntroduction
"n 2002, Vancouver, BC, Canada, %on t&e rig&t to &ost t&e '()*ic Winter +aes in 2010, !&is ajor
c&a((enge -or t&e cit) attracted a (ot o- attention, a (ot o- *u.(ic investent in in-rastructure, and a(so a (ot
o- investent in .ui(ding and coercia( deve(o*ent, !&e conse/uence %as a severe s&ortage o- s0i((ed
(a.or and a &ig& rate o- in-(ation -or construction activities,
!&is u*dated version o- a case stud) t&at " origina(() asse.(ed .ac0 in 1112 is set in t&is econoic
environent, More i*ortant(), it is su.ject to t&e c&anges in t&is environent, "nteresting(), t&e
econo) o- t&e area, *ro.a.() (i0e econoies in ost areas, su--ers -ro signi-icant econoic activit)
c)c(es tered 3.oo and .ust3, As )ou %i(( see, i- )ou don4t start )our *roject soon enoug& on t&e
u*s%ing, or )ou e5*erience a *rotracted de(a), )ou a) -ind )ourse(- %it& a good *roduct, as in a
success-u( *roject, .ut a .usiness -ai(ure .ecause no one %ants it an) (onger, 6ou ig&t .e (uc0) i- )ou
can ride out t&e 3.ust3 *art o- t&e c)c(e 7 .ut -e% *eo*(e can,
!&e case stud) is a co*osite o- t&e sorts o- t&ings t&at " &ave *ersona(() e5*erienced in ) *roject
anageent career, So t&e incidents descri.ed are re*resentative o- t&e events encountered in rea( (i-e
a(t&oug&, &o*e-u((), t&e) don4t &a**en on )our *rojects and certain() not a(( on t&e sae *roject8 !&e
conse/uences are not necessari() t&e -au(t o- t&e *roject anager %&ose jo. it is to de(iver, "t is ore
(i0e() t&e -au(t o- t&e s*onsoring anageent i- t&e) don4t understand *roject anageent and its
*rocesses, and -ai( to co*re&end t&e ris0s invo(ved and &o% to anage t&e,
!&is stor) -o((o%s t&e natura( (i-e s*an o- t&e *roject so )ou can see &o% it un-o(ds in t&e environent
descri.ed, !&e *ro.(es are not di--icu(t to s*ot, .ut can )ou see %&) t&e) &a**ened and %&at ste*s )ou
cou(d ta0e to avoid t&e9 !&e stor) is, o- course, entire() -ictitious and .ears no re(ation to an)one (iving,
Company #ackground
!&e Custo Wood%or0ing Co*an) is a sa((:to:ediu si;ed custo -urniture and ca.inet a0ing
co*an), %it& &ead:o--ice and a s*acious *(ant site at "ndustria( Estates in Soe*(ace just outside
Vancouver, BC, Canada, "ts C&airan and C&ie- E5ecutive '--icer is <on Car*enter no% in &is (ate:
si5ties, =is %i-e Mrs, Ee(ia Car*enter, .eing an aggressive .usiness%oan and soe%&at )ounger t&an
&er &us.and, no% e--ective() runs t&e co*an),
<on Car*enter is a--ectionate() 0no%n to a(( as 3Wood)3 and so t&e co*an) is genera(() 0no%n as
3Wood)4s3, Wood), a-ter an a**rentices&i* as a ca.ineta0er, started &is sa(( -urniture anu-acturing
.usiness .ac0 in 11>2 and &e and &is %i-e oved to t&eir *resent (ocation in 1172, !&e co*an) /uic0()
gained a re*utation -or attractive() designed and %e(( constructed -urniture, using i*orted &ard%oods
and indigenous so-t%oods -or its *roducts, Wood)4s no% *roduces custo -urniture to order, severa(
(ines o- -urniture -or %&o(esa(er/retai(ers, and a nu.er o- variations o- standard 0itc&en and .at&roo
ca.inets, inc(uding units ade to order,
'ver t&e )ears t&e Car*enters continued to *ros*er and .ui(t u* a (o)a( sta-- and %or0 -orce, More
AEW Services, Vancouver, BC 2007 Email: max_wideman@su!ca
Wood" 20#0 $ro%ec& $a'e 2 o (
recent() t&eir son, ?o&n Car*enter, &as joined t&e co*an)4s anageent a-ter &aving o.tained &is
Masters in Business Adinistration, At ?o&n4s insistence, (ured .) (onger *roduction runs and t&e
*ossi.i(it) o- &ig&er and ore consistent ar0:u*s, t&e co*an) oved into su.contract %or0 su**()ing
and insta((ing counter:to*s, ca.inets and sii(ar -i5tures -or ne% &ig&:end residentia( and coercia(
deve(o*ent, !o t&is tie, Wood)4s &ad esta.(is&ed a %e((:-ounded re*utation -or su**()ing i((%or0 to
t&e construction industr),
Woody$s Corporate Pro%i&e
=ead '--ice@ Soe*(ace, BC
Business@ Aurniture anu-acturing, custo i((%or0, and &ard%ood i*orterB -edera( c&arter 1172B
*rivate() &e(dB nu.er o- e*(o)ees a**ro5, CD0, Major S&are&o(der@ Ee(ia =o(dings
Etd, At Fece.er 21, 111G, tota( assets %ere H217,000,000, "n -isca( 111G, sa(es %ere
H111,100,000 %it& net earnings o- H7,CD0,000,
Firectors@
C&airan I CE' <on Car*enter
President Mrs, Ee(ia Car*enter
E5ecutive Vice President Ji Kua(e)
Firector ?o&n Car*enter
Je) Personne(@
VP Production Mi(es Aaster
VP Ainance and Adin S*encer Mone)s%ort&
VP Personne( Mo(() Busse((
VP Sa(es and Estiating Bruce S&ar*e
Contro((er Ji Cas&an
'ther (ey P&ayers in this Case Study)
", Eead.etter #"an$@ Wood)4s Project Manager,
<, Sc&eers #<and)$@ Princi*a(, Sc&eers and P(otters #SIP$, industria( design consu(tants
A, Ao%(er #A(-red$@ Firector, E5*ert "ndustria( Feve(o*ers #E"F$, industria( *ro*ert)
deve(o*ers and contractors
", Jontra0 #"var$@ E"F4s Project Manager
F, <ivett #Fave$@ ", Bea Construction Etd,, stee( -a.ricators and insta((ers
B, Eea0e) #Bert$@ C(assic C(adding Co,, c(adding and roo-ing contractors
C, Fro**e #C&ar(ie$@ ", C, <ain Etd,, %ater*roo-ing contractors
A, Fent #Aos$@ !in0noc0ers Associates, ec&anica( contractors
', Vo(ta #'(a-$@ La** E(ectric Co,, e(ectrica( contractors
E, Aorgot #Eddie$@ Pieceea( Cor*oration, e/ui*ent su**(iers
W, Eas(e) #Win$@ Project anageent consu(tant
The 'pportunity
"n 2002, Vancouver, BC Canada %as a%arded t&e &onor o- &osting t&e Winter '()*ic +aes to .e &e(d
2010, !&is %ou(d eventua(() trigger a ini:.oo in residentia(, coercia( and in-rastructure
deve(o*ent, S*otting t&e *ossi.i(ities in 200M, Bruce S&ar*e, Wood)4s VP Sa(es and Estiating,
*ersuaded t&e co*an)4s directors t&at t&e) %ere %e(( *(aced to e5*and t&eir anu-acturing .usiness,
Mi(es Aaster, regu(ar() co*(aining t&at t&e co*an)4s *roduction e--icienc) %as .eing t&%arted .) (ac0
o- anu-acturing s*ace, ade a *itc& to ?o&n Car*enter -or oving to co*(ete() ne% and ore odern
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e . o (
-aci(ities, ?o&n Car*enter, %it& a vision o- gro%t& .ased on co*uter:contro((ed autoation, ta(0ed over
t&e idea %it& &is -at&er, Wood) discussed it %it& &is %i-e %&o in turn .roug&t Ji Cas&an and S*encer
Mone)s%ort& into t&e de.ate,
Cas&an and Mone)s%ort& -e(t strong() t&at t&e) s&ou(d reain %&ere t&e) %ere, since t&ere %as s*are
(and on t&eir *ro*ert), even t&oug& not t&e ost convenient -or *(ant e5*ansion, !&e) argued t&at not
on() %ou(d t&is avoid t&e costs o- .u)ing and se((ing *ro*ert) .ut a(so, and ore i*ortant(), it %ou(d
avoid t&e interru*tion to *roduction %&i(e re(ocating t&eir e5isting e/ui*ent, Besides, t&e nearest
*otentia( (ocation at an attractive *rice %as at (east -i-teen i(es -urt&er out -ro t&e residentia( area
%&ere ost o- t&e (ived, Po(ari;ation o- o*inions ra*id() .ecae evident and so, in t&e s*ring o- 2002,
Wood) ca((ed a eeting o- t&e directors and 0e) *ersonne( to reso(ve t&e issue, A-ter a visit to t&e -actor)
-(oor and a *ro(onged and soeties .itter arguent (asting into t&e ear() &ours, it %as agreed t&at t&e
co*an) %ou(d sta) *ut on its e5isting *ro*ert),
The Project Concept
"t %as agreed at t&e eeting t&at additiona( *roduction ca*acit) %ou(d .e added e/uiva(ent to 2DN o- t&e
e5isting -(oor area, !&e o**ortunit) %ou(d a(so .e ta0en to insta(( air:conditioning and a dust:-ree *aint
and -inis&ing s&o* co*(ete %it& additiona( co*ressor ca*acit), E/ui*ent %ou(d inc(ude a sei:
autoatic %ood%or0ing *roduction train, re/uiring t&e deve(o*ent and insta((ation o- so-t%are and
&ard%are to run it, !&e President and E5ecutive Vice Presidents4 o--ices %ou(d a(so .e renovated,
At t&e eeting, t&e tota( cost o- t&e %or0, not inc(uding o--ice renovation, %as roug&() estiated at H21
i((ion, Wood) agreed to coit t&e co*an) to a .udget o- H21 i((ion as an a.so(ute a5iu -or all
*ro*osed %or0 and t&e target date -or *roduction %ou(d .e eig&teen ont&s -ro no%, !o give Wood)4s
*ersonne( a -ee(ing o- o%ners&i*, Mo(() Busse(( *ro*osed t&at t&e *roject s&ou(d .e ca((ed Wood) 2010,
S*encer Mone)s%ort& %ou(d ta0e res*onsi.i(it) -or Project Wood) 2010,
P&anning
Mone)s%ort& %as 0een to s&o% &is adinistrative a.i(ities, =e decided not to invo(ve t&e *roduction
*eo*(e as t&e) %ere a(%a)s too .us) and, an)%a), t&at %ou(d on() de(a) *rogress, So, not one -or
%asting tie #on *(anning$ Mone)s%ort& iediate() invited E5*ert "ndustria( Feve(o*ers #E"F$ to
/uote on t&e *(anned e5*ansion, =e reasoned t&at t&is contractor4s *roinence on t&e industria( estate
and t&eir 0no%(edge o- industria( %or0 %ou(d resu(t in a (o%er tota( *roject cost,
Mean%&i(e, Ji Cas&an deve(o*ed a ont&() cas& -(o% c&art as -o((o%s, Airst &e set aside one i((ion
-or contingencies, !&en &e assued t&at e5*enditure %ou(d .e H1,2D i((ion in eac& o- t&e -irst and (ast
ont&s, %it& an intervening ten ont&s at H1,7D i((ion, =e care-u(() (oc0ed t&e c&art a%a) in &is dra%er
-or -uture re-erence, A(( actua( costs associated %it& t&e *roject %ou(d .e recorded as *art o- t&e
co*an)4s nora( .oo00ee*ing,
O*on Mone)s%ort&4s insistence, E"F su.itted a -i5ed:*rice /uotation, "t aounted to H2M i((ion and
an eig&teen:ont& sc&edu(e, A-ter Mone)s%ort& recovered -ro t&e s&oc0, &e *ersuaded Wood)4s
anageent t&at t&e *rice and sc&edu(e %ere e5cessive, #Aor t&eir *art, E"F .e(ieved t&at Wood)4s
%ou(d need considera.(e &e(* %it& t&eir *roject *(anning and a((o%ed -or a nu.er o- uncertainties$,
Aurt&er negotiations -o((o%ed in %&ic& E"F o--ered to underta0e t&e %or0 .ased on a -u(() rei.ursa.(e
contract,
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e - o (
Mone)s%ort& started in/uiries e(se%&ere .ut E"F countered %it& an o--er to do t&eir o%n %or0 on cost
*(us .ut so(icit -i5ed *rice /uotations -or a(( su.:trade %or0, Onder t&is arrangeent E"F %ou(d .e *aid
an &our() rate covering direct %ages or sa(aries, *a)ro(( .urden, &ead:o--ice over&ead and *ro-it, !&is rate
%ou(d e5tend to a(( engineering, *rocureent, construction and coissioning -or %&ic& E"F %ou(d
e*(o) Sc&eers and P(otters #SIP$ -or t&e .ui(ding and industria( design %or0, Mone)s%ort& -e(t t&at
t&e *ro*osed &our() rate %as reasona.(e and t&at t&e &ours cou(d .e onitored e--ective(), =e *ersuaded
Wood)4s directors to *roceed according(),
The *esign
A cou*(e o- ont&s (ater as SIP coenced t&eir *re(iinar) designs and raised /uestions and issues -or
decision, Mone)s%ort& -ound &e needed assistance to co*e %it& t&e *a*er %or0, ?o&n Car*enter
suggested &e use "an Eead.etter, a .rig&t )oung ec&anica( engineer %&o &ad s*ecia(i;ed in
*rograing sei:autoatic anu-acturing ac&iner), Mone)s%ort& rea(i;ed t&at t&is 0no%(edge
%ou(d .e an asset to t&e *roject and gave Eead.etter res*onsi.i(it) -or running t&e *roject, "an %as 0een
to deonstrate &is so-t%are s0i((s to &is -riend ?o&n Car*enter, So, %&i(e &e (ac0ed *roject anageent
training and e5*erience #es*ecia(() an) understanding o- a *roject (i-e s*an and *roject contro( conce*ts$
&e readi() acce*ted t&e res*onsi.i(it),
Furing t&e initia( *&ases o- t&e ec&anica( design, "an Eead.etter ade good *rogress on deve(o*ing t&e
necessar) *roduction (ine contro( so-t%are *rogra, =o%ever, ear() in design E"F suggested t&at
Wood)4s s&ou(d ta0e over t&e *rocureent o- t&e *roduction train direct(), since t&e) %ere ore
0no%(edgea.(e o- t&eir re/uireents, Mi(es Aaster ju*ed at t&e o**ortunit) to get invo(ved and decided
to c&ange t&e *roduction train s*eci-ication to increase ca*acit), Because o- t&is, t&e so-t%are *rogra
&ad to .e ost() re%ritten, severe() (iiting Eead.etter4s tie -or anaging t&e *roject, "t a(so resu(ted in
errors re/uiring increased so-t%are de.ugging at startu*,
Peit&er Mone)s%ort& nor Eead.etter %as conscious o- t&e need -or an) revie% and a**rova( *rocedures
-or s*eci-ications and s&o* dra%ings su.itted direct() .) eit&er SIP or .) Eddie Aorgot o- Pieceea(
Cor*oration, t&e su**(iers o- t&e *roduction train, "n one t%o:%ee0 *eriod, during %&ic& .ot& Aaster and
Eead.etter %ere on vacation, t&e anu-acturing dra%ings -or t&is critica( (ong:(ead e/ui*ent sat in a
junior c(er04s in:tra) a%aiting a**rova(, Aor t&is reason a(one, t&e de(iver) sc&edu(e s(i**ed t%o %ee0s,
contri.uting to a (ater construction sc&edu(e con-(ict in t)ing:in t&e ne% services,
Construction
Site c(earing %as tac0(ed ear() on %it& (itt(e di--icu(t), =o%ever, as t&e ain construction got into -u((
s%ing soe eig&t ont&s (ater, ore signi-icant *ro.(es .egan to a**ear, !&e c&ange in *roduction train
s*eci-ication ade it necessar) to add anot&er -ive -eet to t&e (engt& o- t&e ne% .ui(ding, !&is %as on()
discovered %&en &o(ding:do%n .o(ts -or t&e ne% train %ere (aid out on site, (ong a-ter t&e *erieter
-oundations &ad .een *oured, !&e cata(ogue descri*tions and s*eci-ications -or ot&er e/ui*ent se(ected
%ere sii(ar() not received and revie%ed unti( a-ter t&e -oundations &ad .een *oured,
Eead.etter %as not entire() satis-ied %it& t&e insta((ation o- t&e ec&anica( e/ui*ent -or t&e dust:-ree
*aint s&o*, As a registered ec&anica( engineer, &e 0ne% t&at t&e s*eci-ications governed t&e /ua(it) o-
e/ui*ent, %or0ans&i* and *er-orance, =o%ever, since t&ese docuents &ad sti(( not .een -ora(()
a**roved, &e %as (oat& to discuss t&e atter %it& "var Jontra0, "nstead, &e dea(t direct() %it& Aos
Fent o- !in0noc0ers Associates, t&e ec&anica( su.:contractor, !&is (ed to strained re(ations on t&e site,
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e / o (
Anot&er di--icu(t) arose %it& t&e *aint s&o* .ecause t&e (oca( ins*ection aut&orit) insisted t&at t&e sur*(us
*aint dis*osa( arrangeents ust .e u*graded to eet t&e (atest environenta( standards,
Startup
!%o )ears a-ter t&e *roject %as -irst (aunc&ed, t&e tie to get t&e *(ant into *roduction ra*id()
a**roac&ed, =o%ever, neit&er Mone)s%ort& nor Eead.etter &ad *re*ared an) eaning-u( *(anning -or
co*(etion, !&ings suc& as o%ner4s ins*ection and acce*tance o- t&e .ui(ding, or testing, dr):running and
*roduction start:u* o- t&e *roduction train, to sa) not&ing o- training a cre% to o*erate t&e ne% *(ant &ad
.een considered, !&e) a(so -ai(ed to insist t&at E"F o.tain t&e .ui(ding occu*ation certi-icate, Moreover,
due to (ate de(iver) o- t&e *roduction train, t&e 3tie:in3 o- *o%er and ot&er uti(it) connections sc&edu(ed
-or t&e annua( t%o:%ee0 aintenance s&utdo%n cou(d not in -act ta0e *(ace unti( severa( %ee0s (ater,
!&ese -actors toget&er resu(ted in a (oss o- severa( %ee0s o- *roduction, Custoer de(iver) dates %ere
issed and soe genera( contractors cance((ed t&eir contracts and *(aced t&eir orders -or i((%or0
e(se%&ere, Ainis&ed goods inventories %ere de*(eted to t&e *oint t&at ot&er sa(es o**ortunities %ere a(so
(ost in t&e s*ecia( *roducts areas on %&ic& Wood)Qs re*utation %as .ased,
Contro&
Costs arising -ro t&ese and ot&er c&anges, inc(uding t&e costs o- de(a)s in co*(etion, %ere c&arged to
Wood)4s account, Project overrun -ina(() .ecae rea(it) %&en actua( e5*enditures e5ceeded t&e .udget
and it %as a**arent to ever)one t&at t&e *roject %as at .est on() CDN co*(ete, Cas&an %as -orced to
scra.(e -or an additiona( (ine o- credit in *roject -inancing at *rie *(us 2:1/2N, an e5cessive *reiu
given Wood)4s credit rating, Aro t&en on, Wood)4s %ere in a -ire -ig&ting ode and t&eir a.i(it) to
contro( t&e *roject diinis&ed ra*id(), !&e) -ound t&ese(ves t&ro%ing one) at ever) *ro.(e in an
e--ort to get t&e *(ant o*erationa(,
Furing Wood)Qs *eriod o- *(ant u*grading, construction activit) in t&e region -e(( signi-icant() as ajor
deve(o*ents in t&e Vancouver area %ere co*(eted, Conse/uent(), t&e deand -or Wood)Qs *roducts
dro**ed according(), Even t&oug& S&ar*e (aunc&ed an e5*ensive ar0eting e--ort to tr) to regain
custoer (o)a(t), it &ad on() a argina( e--ect,
Post Project +ppraisa&
!&e net resu(t %as t&at %&en t&e ne% e/ui*ent eventua(() did coe on strea, it %as serious() under
uti(i;ed, Production ora(e e..ed, Soe sta-- *u.(ic() voiced t&eir vie% t&at t&e -uture dro* in deand
-or Wood)4s *roducts cou(d &ave .een -oreseen even .e-ore t&e *roject started, ?o&n Car*enter, not a
-avorite %it& t&e o(der sta--, %as .(aed -or introducing t&ese 3ne% -ang(ed and unnecessari()
co*(icated ideas3 t&at &ad disru*ted current o*erations and de(a)ed t&e ne% ones,
Because o- t&is e5*erience, Wood)4s President Ee(ia Car*enter retained *roject anageent consu(tant
Win Eas(e) o- W, Eas(e) Associates to conduct a *ost *roject a**raisa(, Eas(e) &ad soe di--icu(t) in
e5tracting so(id in-oration .ecause re(evant data %as scattered aongst various sta--, %&o %ere not
0een to revea( t&eir s&ortcoings, 'n() a -e% -ora( notes o- ear() *roject eetings cou(d .e traced,
Most o- t&e counication %as on &and:%ritten S*eed) eos, an) o- %&ic& %ere undated, =o%ever,
intervie%s %it& t&e 0e) *(a)ers e(icited considera.(e in-oration, as &as .een out(ined a.ove,
Wit& t&e continuing do%nturn in t&e econo), Wood) -ina(() ran out o- credit to -inance cas& -(o% and
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e 0 o (
dec(ared .an0ru*tc) in 2001,
Comments on the Case Study
!&e incidents descri.ed in t&e Wood) 2010 case stud) are t)*ica( o- t&e t)*es o- t&ings t&at &a**en in
rea(:(i-e *rojects, !&e) are a re-(ection o- *eo*(es4 attitudes and t&e %a) t&e) do t&ings, Per&a*s t&e) do
not a(( &a**en on t&e sae *roject, 6et t&e rea(it) is t&at i- *roject s*onsors do not start out %it& an
understanding o- *roject anageent and its *rocesses, t&e *ro.a.i(it) o- t&ese 0inds o- &a**enings are
/uite &ig&8 'ne o- t&e .est %a)s o- (earning is -ro ista0es R *re-era.() -ro t&e ista0es o- ot&er
*eo*(e,
!&e -ocus o- t&e case stud) centers on construction, =o%ever, t&e *roject &as served to .ring to (ig&t
an) o- Wood)4s anageent s&ortcoings t&at are not unt)*ica( o- anageent attitudes in ot&er
industries, "n &indsig&t it is eas) to s*ot t&e *ro.(es, .ut t&e issue is &o% can )ou &ead t&e o-- at t&e
start o- a ne% *roject9
!&e ans%er is *ro.a.() to .e -ound in t&e *rudent a**(ication and use o- *roject ris0 anageent, But
-or success-u( ris0 anageent, it is necessar) to understand t&e conce*ts, and o.tain t&e active
*artici*ation o- t&e 0e) *(a)ers in t&e *rocess and %&o ust .u) in to t&e *rocess4s -indings,
Projects ta0e *(ace in a ver) uncertain %or(d, and t&e *ur*ose o- *roject anageent is to ac&ieve a
success-u( outcoe and a(( t&at t&is i*(ies, A 0e) *art o- success-u( *roject anageent is to a**()
*roject ris0 anageent, 6ou do t&is %it& a vie% to ta0ing advantage o- o**ortunities and &eading o--
*otentia( ris0 events t&at negative() i*act t&e *roject4s outcoes,
Project o**ortunities and ris0s can i*act a(( areas o- t&e *roject anageent .od) o- 0no%(edge, !&e
-o((o%ing /uestions are designed to &e(* )ou identi-) *roject o**ortunities and ris0s in t&is case stud),
and are arranged .) *roject anageent 0no%(edge areas, 6ou %i(( not necessari() -ind a(( t&e ans%ers
%ritten into t&e case stud), Soe o- t&e ans%ers are atters o- o*inion and )ou %i(( need to searc& t&e
"nternet -or %a)s to a**roac& an) o- t&e, 6ou s&ou(d -ind ) site@ &tt*@//%%%,a5%idean,co
*articu(ar() &e(*-u(,
Project Risk Management "ssues
Wit& t&e advantages o- &indsig&t, and i- )ou %ere Wood)4s *roject anageent consu(tant, Win Eas(e),
%&at recoendations %ou(d )ou a0e in ters o- anaging *roject ris0s on a sii(ar *roject suc& as
t&is .ut .e-ore it starts9 "denti-) t&e *rocess and *roject o**ortunities and ris0s associated %it& eac& o-
t&e -o((o%ing issues@
#,ote) a ris0 is a *otentia( event t&at a) or a) not &a**en, An issue is an event t&at &as a(read)
occurred and re/uires reso(ution -or t&e *roject to *roceed, A sart *roject anager can o-ten convert a
ris0 or an issue into an o**ortunit),$
Please enter your responses in the pages below.
-ist o% .uestions
1 Was the Woody 2010 project we&& concei/ed0 What are your reasons0
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e 7 o (
2 What were Woody1s rea& o#jecti/es that cou&d and shou&d ha/e #een articu&ated0
2 What strategies were there %or achie/ing these o#jecti/es0 What wou&d you recommend0
3 *id they consider other so&utions0 What 4!amp&es can you %ind0
5 6ow wou&d you gauge the project1s success0 Cou&d success #e measured0 "% so7 when0
8 Why do you suppose reno/ation o% the President and 4!ecuti/e 9ice President1s o%%ices were
inc&uded in the project and was that a good idea0
: Write a simp&e project scope statement 6ow wou&d it he&p0
; What shou&d #e inc&uded in a Woody 2010 project p&an0 What use wou&d it #e0
< What were Woody1s p&ans %or managing the project7 inc&uding their approach to contracting %or
pro%essiona& ser/ices and construction work0 What wou&d you ha/e done and how wou&d that
change %or successi/e phases o% the project0
10 *id the project p&an e!p&ain how the project and any changes wou&d #e contro&&ed0 Shou&d this
#e part o% the p&an0 What are your reasons0
11 6ow shou&d =ua&ity #e approached7 and what does it mean0
12 Why did -ead#etter not in/oke the speci%ications to ensure =ua&ity0 What was the resu&t0
12 4!p&ain >=ua&ity> and what is its importance to a project &ike this0
13 "denti%y a set o% major project schedu&e mi&estones %rom project conception to project
comp&etion 6ow wou&d they he&p to reduce risk0
15 "&&ustrate your mi&estones on a simp&e #ar chart sca&ed to in%ormation pro/ided in the case
study ?"% necessary7 use an 4!ce& spreadsheet and import it into Word@
18 Wou&d a good mi&estone #ar chart ha/e he&ped to show that the project wou&d not meet its
schedu&e0 "% so7 how0
1: 6ow shou&d %&oat on the critica& path ha/e #een managed0 Wou&d this ha/e he&ped to comp&ete
on time0
1; *e/e&op a highA&e/e& cost estimate #y BguesstimationC 6ow shou&d the estimate #e presented0
1< What risks wou&d a highA&e/e& cost estimate he&p to reduce0
20 "s %aci&ity &i%e cyc&e costing a %actor on this project0
21 Cashman kept his cash %&ow chart a secret Why do you suppose7 and what wou&d you ha/e
done0
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e 1 o (
22 What were the contracting a&ternati/es open to Woody$s0 Which wou&d ha/e #een #est and
what wou&d ha/e #een in/o&/ed0
22 6ow shou&d the contract?s@ #e organiDed and tendered0
23 6ow shou&d the contract?s@ #e administered0
25 Were the origina& Woody 2010 project re=uirements de&i/ered0
28 *raw a project organiDation chart ?"% necessary7 use Word$s drawing too&s or an 4!ce&
spreadsheet@ What were in %act the rea& re&ationships0
2: Shou&d -ead#etter ha/e #een &e%t to run the project0 Wou&d training ha/e he&ped0
2; 6ow shou&d the Woody 2010 project p&an #e communicated and when0
2< What communication ?coordination@ wou&d you e!pect to see during e!ecution0
20 Wou&d a good #ase&ine p&an ha/e he&ped to make up time0
21 *raw a responsi#i&ity chart %or e%%ecti/e contro& ?"% necessary7 use Word$s drawing too&s or an
4!ce& spreadsheet@ What risks cou&d this mitigate0
22 What wou&d you ha/e done when you saw that the project wou&d not meet its schedu&e0
22 Project records were apparent&y poor What records shou&d ha/e #een kept and how0 What
#ene%its wou&d such records pro/ide0
23 Why do you think 4"*1s %irst price was high0 Was their position reasona#&e0
25 When did Woody1s know they were in trou#&e with o/er e!penditure0 What was the resu&t0
28 6ow shou&d the project #udget and e!penditures #e set out %or cost contro&0
2: *raw a simp&e %&ow chart %or processing changes ?"% necessary7 use Word$s drawing too&s or an
4!ce& spreadsheet@ What risks wou&d this process he&p to a/oid0
2; 6ow did 4"* hand&e their risks0 Was this e%%ecti/e0 What might they ha/e done0
2< -ist Woody1s actua& surprises and add other possi#&e surprises What was7 or shou&d ha/e #een7
done to prepare %or and respond to them0
30 Were there changes0 What were the impacts0
31 6ow was %aci&ity startup managed on the Woody project0 6ow shou&d it ha/e #een managed0
32 The Woody 2010 project was e/ident&y not we&& run Why0 Ei/e reasons %or your opinion
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com
Wood" 20#0 $ro%ec& $a'e ( o (
32 *e/e&op a &ist o% >(ey Success "ndicators> that cou&d and shou&d ha/e #een measured upon
comp&etion Can you rank them in order o% priority %or this project0 What #ene%its wou&d they
pro/ide0
$)*+ , AEW Services, Vancouver, BC 2007 Email: max@-$)*+!com