PROYECT MANAGEMENT

CAPITAL INDUSTRIES

Teacher: Mgst. Olga Cristina Camey de Noack

January, 2021.
This is a team work. Read the following case and response in English. Write the solutions in this
paper and upload to URL platform.

Autor: Harold Kezner, PhD.

In the summer of 1976, Capital Industries undertook a material development program to see if a hard
plastic bumper could be developed for medium-sized cars. By January 1977, Project Bumper (as it was
called by management) had developed a material that endured all preliminary laboratory testing. One
more step was required before full-scale laboratory testing: a three dimensional stress analysis on
bumper impact collisions. The decision to perform the stress analysis was the result of a concern on the
part of the technical community that the bumper might not perform correctly under certain conditions.
The cost of the analysis would require corporate funding over and above the original estimates. Since
the current costs were identical to what was budgeted, the additional funding was a necessity.
Frank Allen, the project engineer in the Bumper Project Office, was assigned control of the stress
analysis. Frank met with the functional manager of the engineering analysis section to discuss the
assignment of personnel to the task.
Functional manager: "I'm going to assign Paul Troy to this project. He's a new man with a Ph.D. in
structural analysis. I'm sure he'll do well."
Frank Allen: "This is a priority project. We need seasoned veterans, not new people, regardless of
whether or not they have Ph.D.s. Why not use some other project as a testing ground for your new
employee?"
Functional manager: "You project people must accept part of the responsibility for on-the-job training. I
might agree with you if we were talking about blue collar workers on an assembly line. But this is a
college graduate, coming to us with a good technical background."
Frank Allen: "He may have a good background, but he has no experience. He needs supervision. This
is a one-man task. The responsibility will be yours if he fouls up."
Functional manager: "I've already given him our book for cost estimates. I'm sure he'll do fine. I'll keep
in close communication with him during the project."
Frank Allen met with Paul Troy to get an estimate for the job.
Paul Troy: "I estimate that 800 hours will be required."
Frank Allen: "Your estimate seems low. Most three-dimensional analyses require at least 1,000 hours.
Why is your number so low?"
Paul Troy: "Three-dimensional analysis? I thought that it would be a two dimensional analysis. But no
difference; the procedures are the same. I can handle it."
Frank Allen: "O.K. I'll give you 1,100 hours. But if you overrun it, we'll both be sorry." Frank Allen
followed the project closely. By the time the costs were 50 percent completed, performance was only 40
percent. A cost overrun seemed inevitable. The functional manager still asserted that he was tracking
the job and that the difficulties were a result of the new material properties. His section had never
worked with materials like these before.
Six months later Troy announced that the work would be completed in one week, two months later than
planned. The two-month delay caused major problems in facility and equipment utilization. Project
Bumper was still paying for employees who were "waiting" to begin full-scale testing. On Monday
mornings, the project office would receive the weekly labor monitor report for the previous week. This
week the report indicated that the publications and graphics art department had spent over 200 man-
hours (last week) in preparation of the final report. Frank Allen was furious. He called a meeting with
Paul Troy and the functional manager.
Frank Allen: "Who told you to prepare a formal report? All we wanted was a go or no-go decision as to
structural failure."
Paul Troy: "I don't turn in any work unless it's professional. This report will be documented as a
masterpiece."
Frank Allen: "Your 50 percent cost overrun will also be a masterpiece. I guess your estimating was a
little off!"
Paul Troy: "Well, this was the first time that I had performed a three-dimensional stress analysis. And
what's the big deal? I got the job done, didn't I?"

Please analyze the situation of the company and answer the following questions according to the
Project Management:
1. Describe the actors and their role in the project
Paul Troy- En cargado del el proyecto.
Frank Allen- ingeniero de proyectos.
Functional manager-Responsable de asignar al encargado del proyecto.
2. ¿What is the main problem that arises in the case?
Se realizo una mala planificación por lo que el trabajo fue entragado 2 meses despues de lo
acordado, lo que genero costos extras en la paga de las horas trabajadas del personal.
3. ¿Was it wrong to put Paul Troy in charge? It is a mistake to assign Paul Troy in charge of
the Proyect?
Si, por que a pesar de tener un doctorado en análisis estructural, no tenia experiencia
en el campo laboral y desde el principio realizo una estimación de horas a trabajar
erróneamente.
 4. According to your opinion and the perspective of HR, ¿what can you say in relation to the
hiring of people with the profile of Paul Troy vs. someone with experience?
Creo que tener conocimiento teorico y practico no es lo mismo ya que se puede tener toda la
teoria pero si nunca se ha puesto en practica, siempre se tendra mas de alguna duda o
problema al ejercerlo, por lo que es mejor contratar a personal con experiencia.
5. Could Frank Allen have done something to avoid this situation?

6. What recommendations could you give regarding the administration of time and cost based on the
case? How should it have been administered? ¿What are you going to do when there is deviation in the
Proyect?
7. ¿What solution do you propose to the problem?