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Incidents For Discussionn: Case 1
Incidents For Discussionn: Case 1
87
INCIDENTS FOR DISCUSSIONN
Samuel's Approach to Project Management: HardTech, Inc.:
loe Samuel was once again asked to be a project manager HardTech Inc. is a two-year-old electronics hrm that
was created by three friends who worked together
on a large project. This was the fourtlh time in the last as sen-
14 months, and he was glad to add this type of work ior engineers at a Fortune 500 electronics firm; Jake Tyler,
experience to his résumé, but he dreaded the interpersonal Caroline Ryan, and Mike Preston. The three developed
that was designed for hand
a high-speed-processing chip
relationship issues that always came up on projects. He felt
like he was the project's babysitter, always checking on pro- held scanning devices. Their startup became successful
gress, making sure everyone on the team was happy and when they won a major contract from a large software
into a hand-
understood each other's roles, handing out assignments, company that wanted to integrate the chip
and so on. Joe then remembered an article he had recently held scanner for inventory management.
read about "tried and true project management practices." HardTech's three founders structured their firm as a
He thought "'tried and tnie" had to be more managerially traditional functional organizational structure, as that
in
comfortable than his past experiences. He decided to accept was the environment they came from. After two years,
the new project so that he could try out the new ideas. addition to their production people, HardTech employed
The project Joe accepted was to make a decision on 17 development engineers including a manager, tour
whether or not to close one of the company's distribution designers with a design department manager, three people
and adminis-
centers in order to improve responsiveness of their supply in the sales and marketing department, two
chain. Joe had been a manager of a supply chain service, trative personnel as support.
so he felt very qualified to lead this effort. He defined Tyler, Ryan, and Preston now felt ready to take their
the scope and deliverables of the project and detailed all "show on the road." They wanted to launch three major
of the major tasks of the project as well as most of the initiatives: (1) to develop a chip that would work with
detail level steps in the project plan. At the first project grocery store scanners; (2) to get into the hospital point
team meeting, Joe felt very comfortable about the con- of-care scanner market; and (3) to upgrade the chip they
were using for their ventory management contract
trol and direction of the project, much more than any of
the previous projects he had managed. He had specifi- while maintaining their current commirments.
Tyler and Preston thought that the current organiza-
cally defned objectives and tasks for each member of the tional structure could handle the new initiatives. They
project team. He even determined completion dates for
each task. He wrote individual "contracts" for each team wanted to assign each phase of the new development
member to sign as a n indication of their commitment
to projects to a specihc department. Ryan felt that the t r a
sched- ditional approach would not support the need to be quick
completion of the designated tasks by the assigned to market and that he current contract would always
ule dates. The meeting went smoothly, with almost no
Comments or questions from the project team. Everyone be the priority to each ot the department managers.
She wanted to set up project teams reporting directly to
picked up a copy of their "contract" and went off to work
with the HardTech's three senior ofhcers.
on the project. Joe felt great and was pleased
Success of his new approach to project management.
Questions: What organizational structure would
Questions: How do you think Joe will feel six weeks
after the project is underway ? Compare his new approach you recommend Hard Tech use to complete the three ini-
tiatives outlined? Why?
oproject management with his previous approach.
C A S E 1
The Quantum Bank intormation and email questiuns, and link to a variety of
branches other usetul surces of intormation. Given the site's tre-
Quantum Bank Inc. is a regional bank with
southeast. In early 1999, the bank mendous success, competitiom trom both traditional and
throughout the with nontraditional organizations, and the desire to expand its
website that provides its customers
launched a
the ability to check account balances, obtain informa presence beyoud its current geographical area, Quantum
tion about the bank's various services, obtain contact lecided to expand its online otterings signihicantly. More
MANAGER,
THE UR IHE
AE TEAM
THE
2/
hands-on.
88
CHAPTER
is very
much
aying volved
his approach of the site. Bill has
to expand its websire with all
technical
aspects
One of her first tasks was to select the project mana also joined the
Andy Dover
large public oank in
Dover
because of the strategic importance of the project, sne Andy MBA a
completing his
immediar unive
had a strong preference for staffing the project internally 1995 after
school
as to employing the services of one
opposed the
of many sity. Andyentered graduate y after
graduating with a Civil neering undergraduate
consulting firms available that specialize in these types
projects. After developing a list of ten or so possible can
or
university.
degree
at the same
first year rotating between
didates to serve as project manager, she was finally able
Andyspent his various
to pare the list down to the two finalists described below. bank's management training proor
departments in the
this training, Andy requested
Bill Fence Bill joined After completing Per
Quantum in 1995 after grad to the operations group. His
uating trom a well-respected small private school witn manent assignment
the check encodine oner
initial
to oversee
a degree in computer science. His fi1rst assignment as a assignment was tion.
member of the bank's helpdesk After implementing several process improvements, Andy
provided him with expo was eventually promoted to senior operations analyst and
sure to a
variety of areas in the bank. He quickly gained a
reputation for being able to solve difficult technical prob- worked on several large process improvement projects.
lems. In addition, users of the bank's various Performance evaluations of Andy suggested that one
computer
systems were often heard commenting on how service of his greatest strengths was his ability to step back from
oriented Bill and his ability describe concepts a problem and understand how the various issues
was
in nontechnical terms.
on to
were
interrelated. His evaluations further recognized him as
Because of both his technical
hardware and his ability to
knowledge related to "a highly motivated self-starter with very good
organi
program, Bill was selected zational skills." His organizational skills also
to
develop the bank's website in 1998. Bill worked alone him effectively present information, and he was
helped
on this
project and had frequent often
bank's directors of Information meetings who
with one of the requested to make short presentations related to a partic
Systems,
the project. Initially, the director did supervised ular project's status to senior
most of the
design management.
work and Bill did the By almost all accounts, Andy was considered
computer programming. Bill often competent, completing assigned tasks in a
highly
proposed alternative ways for incorporating features key ion with little or no timely fash
into the website, and the director direct supervision. At the same
would choose among time,
the options Bill identified. Toward the end of the devel Andy always made it a point to
communicate regulariy
opment project, Bill began to take a more active
role in With other project team members to keep them abreast
proposing features to include in the site. his
progress. He was often ot
The development was typically able
passionate about his ideas and
project was largely completed on for his ideas.
to get
buy-in from other team members
time and on budget
considering the
of the project that were made as thechanges the scope
in
project
Several suggestions that would have extendedprogressed.
Andy is almost always seen carrying his
the
avid stock
investor,he makes it a planner. As an
functionality were tabled to be considered after thesite's
site trends in
technology. He has a basicpoint
to stay abrea of
was offhcially launched. the Internet works understanding of no
In his current position as
Webmaster, Bill is in While he has fooledand knows all the impoportant buzzwords.
ofmaintaining the bank's website. Although Bill'scharge around and
now includes a staff
programmer and a hardware specialist,
ges, he
knows very little about created a couple
c of Web
gramming
about languages such as Java,more sophisticated pro
computer hardware and knows even less
QUESTIONS beyornd basic purpose.
its
8L 06 Z6 6 L8 06 88 06 06
SL 96 v6 76 88 06 08 S8 8L
8L L6 y6 6 88 08 S8
96 v6 68 76 E8 L8 ipes ON
06 96 6 88 6 v8 98
9 6L 8 98 So
16 76 ¬8 06
sesAnosoN
CASE 3
91
Six Sigma project. All resources are
available to the pro employees completing various planned tasks in future Six
iect on a
part-time basis and therefore support Six Sigma Sigma projects hased on the historíical data corntained in the
projects in
addition to performing their normal job database. The proficiency numbers can range between zero
assignments. The table lists the employee name, job title, and 100, with a 2ero indicating no ability to perform the
level of education, years ofwork experience, Six
Sigma task and 1C0 implying extensive expertise and experience
rank (i.e., Green Belt or Black Belt), the number of Six performing the task. Table 2 summarizes this information for
Sigma projects the employee has worked on, the average the 12 employees listed in Tahle 1 for the 20 project tasks
amount of savings that resulted from the Six Sigma pro- initially identified. Past experience with these estimates
iects the employee has worked on, the employee's
hourly indicates they are fairly accurate over an entire project but
rate, and the percent of time the employee is available.
that employee performance typically varies t percentage
The hourly raterepresents what will be charged against points within a given week. Thus, an employee with an
vour project's budget for work performed by a
given estimated proficiency of 90 on a particular task would be
employee. The percent available is based on a 40-hour
expected to perform in the 87-93 range on the task in any
work week. Theretore, the number of hours you can utilize given week.
a resource during a given week cannot exceed the A final comment regarding the available resources is
avail-
able peroentage times 40. lo illustrate, Anna Frost can
in order. Specifhcally, past experience with projects indi-
complete at most 8 hours (20O% X 40 hours/week) of pro- cates that conflict occasionally arises when more than
ject work per week.
one Black Belt is assigned to the same task. When such
To facilitate project planning, SSH uses an advanced Six conflict does arise, it tends to negatively impact both the
Sigma database program to track the progress and perfor- time required to complete tasks that the Biack Belts are
mance of all ongoing projects. Furthermore, the HR
depart jointly assigned to as well as the overall quality of the
ment has developed a process to estimate the prohciency of work performed.
QUESTIONS
1. Explainhow you would execute your roles as project 4. What criteria would you use in selecting resources to
manager of this project. serve on your project team
2. As the project manager, how would you manage 5. From the available resource pool, who would you
trade-offs? select to be on your project team. Why
3. How would you recommend this project be organized?
Functional project! Pure project? Matrix? Why?
A S E 3
GMMSSB Project Organization in Practice syste both within and outside the team, which tol
lows the concept ot "Unity ot command and direction."
introduction Besiles, the advantages annd disautvaantages ot having a
matrix oganization are also explanet
case
demonsrates that a proper understanding of
his of
the composition, role, responsibility and the authority Background
he project team reduces delays and inefficiencies. In the
around The Gujarat Water Supply & Sewerage Bourd (GWSSB)
n
Case explained below, the key conceptsat revolve Waler
Ciujarat the early 1980% initiated a poject to augnient
drink
ne reorganization of the project team The reorganiza ing water spply and provide sewerage facilities in the
Supply and Sewerage Board (GWSSB). more towns of Gujarat. The project, covering ditferent
iOn focuses on organizational structure, delegatingcomes places
n 12 districts of the State, was estimated at Rs. 103.60
obviously
authority to the Project Manager, which crores. Part of the hnancing was to be provided by the
with the added responsibiliry, modifying the reporting
92 CHAPTER 2/THE MANAGER, THE ORGANIZATION, AND THE TEAM
International Development
World Bank. The financing
Association (IDA) of the
pattern, as agreed upon in
tional structure of the G\WSSB and the
role it played in
executing the various development projects.
February 1982, is detailed below:
Project Team
IDA credit: Rs. 50 crores On the insistence of World
(8 4% interest 19 years) Bank, the GWSSB consti.
tuted a project team consisting of people from its own
Government of Gujarat Grant: Rs. 28 crores organization and also appointed engineering
Local bodies' own resources: Rs. 25.66 crores consultants
to
supplement and strengthen the design capacity of
Total Rs. 103.60 crores GWSSB.
The GWSSB identified the
The above funding entrusted to the project team:
following functions to be
was to be utilized in
the following tasks: accomplishing
1. Detailed engineering design
1. Augment drinking water supply in urban towns. 2. Preparation of tender documents (local & global)
2. Provide new sewerage facilities in two towns. 3. Material procurement (materials account for 70
3. Extend sewerage facilities in newly cent of the project cost) per
two towns.
developed areas of 4. Invitation and evaluation of bids, and
4. Provide award of
26,480 sanitary latrines in 15 towns.
contracts for all civil works costing more than
5. Provide drinking water supply to 367 Rs. 40 lakhs
villages. 5. Project monitoring
The funds allocated for the above
tasks are as
follows: 6. Co-ordination and liaison with World Bank and other
1) Rural water supply (367
villages): Rs. 28.00 crores
ai
State/Central Government agencies
2) Urban water supply (5
towns): Rs. 20.00 crores The actual project construction was the
3) Urban sanitation (4 towns): of the functional chief responsibility
Rs. 46.10 crores engineers of the GWSSB
4) Construction of 26,480 latrines: ing to different geographical locations (three in belong-
Rs. 6.00 crores and not of the number)
(in 15 towns) project Under this arrangement,
team.
the Superintending Engineer,
5) Training, equipment & misc.: Rs. 9.50 crores Team, viewed as a "Project
was
charge of the Project
in
E.E.-CivilI E.E.-Mechanical
E.E.-CivilII E.E.-Civil II1*
Two Dy. Xen Two Dy. Xen Two Dy. Xen Two Dy. Xen
(Civil) (Civil) (Civil) (Civil)
(No Construction Staff)
(*3 Geographical Locations)
94 CHAIRMAN
MEMBERSECRETARY
Chief Engineer
Chief Engineer
Zone Il Gandhinagar
Chief Engineer Zone II Rajkot
Chief Engineer Zone 1 Gandhinngar
EE Limbdi EE Deesa
EE Anand EE Nadiad EE Ahmedalbac EE Candhinagar EE Bhavnagar
Fundtions
Deputy EE Deputy EE
1. Project planning
Functions:
2. Monitoring
Project construction Functions: Functions:
3. Coordinntion Project construction Project construction
This case msterial has been written by 1Dr. M.R. Copalan, Acdditional Director (Acalemics & Research), Instirute
d Finance & Intermational Management (IFIM), B-Schunol, Bangalore, based on a workshup report submitted in the
"Project Management" prog am conduc ted by IM-Bungalore luring February 1988. lt cannot be reproduced in any torm
without thr per1nission uf the aurhor.
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