Project Scenario

 The Restructuring Project

 
A government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to
cut costs, and deal with the problems caused by inadequate internal controls and 
outdated technology.
 
External consultants were employed from Teamtech, a recruitment agency that provide
specialist resources to government departments. These consultants conducted a feasibility
study to identify options for addressing the problems. The following options were
considered:
 
Do nothing
 
Restructure selected business functions
 
Shut down selected business functions and contract external suppliers to provide these
services.

The feasibility study concluded that there was a case for restructuring the services currently
delivered by two business functions: Facilities (responsible for maintenance of buildings and
grounds) and Information Technology (IT). The recommendations were:
 Restructure Facilities services and reduce the number of Facilities staff by 20%.
 
• Restructure IT services and replace the existing IT system with a new hardware and software
solution.
 
The feasibility study contained a high-level summary of the existing Facilities staffing structure
and the existing IT system, plus an outline Business Case for the required project. The external
consultants from Teamtech also made the following recommendations for the management of
the project: Use PRINCE2®.
 Set up the project with 4 management stages:
•  Stage 1: Standard PRINCE2 initiation activities
•  Stage 2: Create a detailed design for the future Facilities staffing structure and a specification
of the new hardware and software solution. Prepare a contract for the supply and installation
of the new hardware and software solution
•  Stage 3: Create request for tender and evaluate proposals. Select supplier and agree
contract
•  Stage 4: Implement the new Facilities staffing structure, install new hardware and software
solution, and run a trial period.

Initial estimates indicated that the project would cost £2.5 million and take two years to
complete. There is an expected saving of £20 million over 10-years. MFH senior management
accepted the recommendations as a basis for the project. However, any event that may result in
a loss of MFH data must be escalated to them immediately.
Exercise A – Project Management Team
 
Additional Scenario Information
 
Resources who could be involved in the project:
 
Teamtech Account Manager: He represents Teamtech, a recruitment agency that provide
specialist resources to government departments. Teamtech provided the consultants who
carried out the feasibility study. They will not be developing any of the project’s products.
However, the same consultants will be made available for support and guidance to the
Information Technology and Facilities teams during the Restructuring project.
 
Director of Finance: She was transferred from Information Technology 12 months ago. She
is responsible for ensuring a cost-effective approach is adopted in all operational and
project activities across the Ministry of Food Hygiene.

Hardware Manager: He reports to the Director of Information Technology. He provides

and maintains the computer hardware and software to all business functions.
 
Payroll Manager: He reports to the Director of Finance. He is a very experienced and
efficient accountant who is responsible for running part of the Finance Division on
behalf of the Director of Finance. He has been involved in drafting the Ministry’s
business strategy and assisting in a full business risk assessment. He also drafted the
corporate Business Case standards.
 
Director of Research and Development: She manages a large team who are always
incredibly busy. Many of her research and development processes require input from
the Information Technology and Facilities teams on a daily basis. She has an excellent
understanding of what each team requires in order to operate effectively.
 
Using this information and the scenario, suggest suitable candidates for each of the
PRINCE2 roles and give a PRINCE2 reason for each of your choices.
 
Project Team Appointment
Role Candidate Reason

Executive MFH Chief Represents the interests of MFH in this

Executive strategically important project
Officer The Executive has to ensure that the project gives value
for money, ensuring a
cost-effective approach to the project, and balancing the
demands of the
business, user and supplier (so Director of Finance
another option)

Senior User 1. Director of The Senior User is responsible for specifying the
Research and needs of those who will use the project's products.
Development And she deals with Information Technology and
Facilities and can make sure the user's needs are
specified.

2. Hardware The role represents those who will use the project's
Manager products, including operations and maintenance.
This positions the Hardware Manager as a Senior
User. 'the outcome will have an impact on him', he
maintains computer hardware for all business
functions. T he Senior User specifies the
requirements and commits user resources.
Role Candidate Reason
Senior Teamtech The Senior Supplier role would need
Supplier Account representatives from the Facilities and
Manager Information Technology Departments.
And he will be providing support to the Facilities
team during the project.

Say Head / As a supplier, he /she will be supplying resources

Director of and products to the project. He/she can contribute
Information supplier opinions to the Project Board – this is a
Technology responsibility of the Senior Supplier.

Say head / The Senior Supplier represents the interests of those

Director of designing, developing ,facilitating, procuring and
Facilities implementing the project's products
Role Candidate Reason

Project Teamtech +ve Teamtech are performing an advisory role on

Assurance consultant this project (supplier Assurance) Supplier Project
Assurance advises on potential changes and their
Supplier project impact on the correctness, completeness and
Assurance integrity of products against their Product
Description from a supplier perspective .
-ve : Teamtech Consultants are an external supplier.
Their own business interests are likely to conflict
with those of their customer.

Payroll Manager 1. A user of a project can represent Business

Project Assurance.
Business project 2. Business Project Assurance is responsible for
Assurance reviewing the Business Case for compliance with
corporate or programe standards.
3. The Payroll Manager has the qualities to monitor
the project finances and experience in business-
level strategic and risk management

Director of Business Project Assurance is responsible for

Finance reviewing project finances
Business Project
Assurance
Role Candidate Reason

Project Head / Director As supplier Project Assurance he will be able to

Assurance of Facilities advise on many of the products that will enable
Supplier Project restructuring to happen, such as the future Facilities
Assurance staffing structure

Director of They can ensure that user liaison is functioning

Research and correctly. Also they can advise on the impact of
Development potential changes.
User Project Assurance is responsible for ensuring
Hardware that user's needs are accurate and that the solution
Manager will meet these needs.

(User Project
Assurance )
Role Candidate Reason

Project MFH PRINCE2- Has the skills and experience to manage the project
Manager experienced on a day to day basis on behalf of the project board.
Project
Manager

Project From IT and The role of Project Support is not optional, but the
Support facilities dept allocation of a separate individual or group to carry
out the required tasks is. Project Support defaults to
the Project Manager. In this project, given its scope
and number of stakeholders, it would be
appropriate to appoint more than one individual to
support the Project Manager.
Change Some one from Executive reporting…..
Authority IT/ facilities/
finance dept

Team Manager Same as PM to choose from IT / facilities dept.

above….
Exercise B – Project Brief
 
Complete the sections below, extracted from the project definition of the Project Brief, with
information for the Restructuring Project.

Background A government department, the Ministry of Food Hygiene (MFH), faces

increasing pressure to cut costs, and deal with the problems caused by
inadequate internal controls and outdated technology

Project (SMART – specific, measurable, achievable, realistic, timebound)

Objectives • Restructure Facilities services and reduce the number of Facilities
staff by 20%.
• Restructure IT services and replace the existing IT system with a new
hardware and software solution at the project cost £2.5m and within
two years .
• There is an expected saving of £20m over 10 years.
• Major risk : loss of data, Union agitation. Vendors capability for
supplying solutions.

Desired Reduced cost of running organization, better control over operations

Outcomes with the help of new infra.
Project 1. design for the future Facilities staffing structure
Scope and 2. specification of the new hardware and software solution
Exclusions 3. a contract for the supply and installation of the new hardware and
software solution
4. Create request for tender
5. Implement the new Facilities staffing structure, install new hardware
and software solution,
6. trial period run.

Constraints 1. Required hardware and softwares are available and delivered timely.
and  
Assumption Assumptions 2. Enough atleast 5 parties responds to the tender
s Staff will be adequately trained to work and maintain new infra.

Interfaces Part of cost reduction program… so interfaced with other similar

projects.

ADD :
Outline Business Case, Project Product Description, Project Approach, Project management
team structure, Role Descriptions, and any references.
Exercise C – Business Case
 
The Restructuring project has completed the Starting up a Project process and is now in
the initiation stage. Because of the strategic importance of the project, the MFH Chief
Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager
has been appointed from within MFH. Staff within the business functions being
restructured will work with the external consultants who conducted the feasibility study to
define the detailed design and specification.
 
Using the scenario information, draft the project Business Case using the headings below
and Appendix A.2 to help you. Suggest where you would get missing information from and
check for its accuracy.
 
At the end of the exercise, be prepared to present your work to the rest of the group.
 Information for your project Information
source and
accuracy check

Reasons pressure to cut costs Project

deal with the problems caused by inadequate internal Mandate ,
controls and outdated technology Project Brief,
Feasibility
study report

Business Options Do nothing – continue with same arrangement Feasibility

Do the minimum : study report
Do something : Restructure 20%
Expected Benefits There is an expected saving of £20m over 10 years. Feasibility
study report,
PB,

Expected Dis- Lower morale in staff because of fear of loosing job. Feasibility
benefits study report,
PB

Time Scale 2 years to complete project. Feasibility

10 years to review/realise benefits. study report,
PB, project
plan
Costs 2.5million pounds +- 10% Feasibility
study report
and PB,
Project Plan

Major Risks Data lost, union agitation Feasibility

study report
and PB.
Project Product Description
Title : This is normally name of the project… say in our case
“Restructuring Project for IT and Facilities”

Purpose : The purpose that the projects products will fulfill, its functions,
what the overall products of the project are and who will use them.

So in our case for example :

To replace existing outdated IT systems with new hardware and software
for IT department and restructuring of facilities services for efficient
utilization of manpower.
 Composition : A description of major products to be delivered by the
project. This is normally a list which defines the product scope of the
project. It may include management products such as third party
agreements.
For example :
Design for future staffing structure - facilities
Specification of new HW and SW,
Contract with vendor,
Request for Tender.

Derivation : It may be that the derived aspect are predecessors from a

previous project, without which the current project can not be started. It
may also be a prerequisite.
• What are the source products from which this product is derived? Without
knowing or referring to them – there is a risk that you may build the wrong
products.
• Examples : Existing product, Design specifications, Reports, The project
Mandate, Requirement documents.
Now in our case : Feasibility Report, existing staffing structure, existing IT
system, Outline business case.
• Development skills required:
The skills / knowledge / experience required to develop the product or
reference to which area(s) should supply the development resources to be
included.
E.g. Consultant, Negotiator, Interior decorator (for facilities), IT consultant,
Software engineer for IT restructuring.

• Customers Quality Expectations : A description of the quality expected of the

project’s product, overall outputs of the project and the standards and
processes that will need to be applied to achieve that quality.
They will impact on every part of the product development, and thus on time and
cost.
The quality expectations are captured during discussions with the customer. Where
possible, expectations should be prioritized using MoSCow.
All key stakeholders to be solicited for their quality expectations and priority as there
may be conflicts of opinion and these will need to be agreed by ( ultimately) by
project board.

Say In our case: each staff member to have confortable and sufficient work
space with latest HW and Software.
• Acceptance Criteria : Must be measureable
• Project level tolerances defined
• Acceptances criteria method
• Responsibilities for signing off the acceptances criteria e.g. senior user
In our case:
• Each staff has working space of 64 sq. ft (8 x8), with 3 power points, desk of 2.5
ft +-1%depth x 4 ft+-1% width at a height of 3 ft+-1%.
• PC system config….., Softwares installed…., LAN cable point with 1 meter cable,
Wifi Router of …… spec. etc…

Acceptance Project Level Acceptance Acceptance

Criteria Quality Method Responsibilities
Tolerances
       
       
       
       
       
       

       
       
       
       
 Exercise E – Project Assurance
 
The MFH Project Manager is now assembling the Project Initiation Documentation at the
end of the Initiating a Project process.
 
You are Project Assurance. What specific items would you want to review within the
Project Initiation Documentation and why?
Item to review Reason
Lessons recalled Learn from experience
Strategy documents : all strategy Without this project delivery and quality
documents in place and risk, quality, Issue can’t be assured. Needed to check proper
registers corporate stds are adopted and tailored .

SCOPE Scope of the project is clearly defined.

Risk Register Risks are controlled and is followed as per
corp risk appetite. Proper notification
format / arrangement of Special security
requirement –data lost
Quality Register Right people are involved in writing PDs.
How quality will be observed /Quality
methods are followed
Project team Team leaders /members to ensure right
people are planned and involved in
project, quality inspection at correct
points.

Configuration - Strategy doc and Issue Applicable standards and templates are
register used
Project Plan With proper details no. of stages, teams,
timelines, etc
Progress Controls No. of management stages, technical
stages, overlapping, etc.

Business Case Review for compliance for corporate / prg

standards, external events, project
progress, and Risks highlighted with impact
Benefit Review Plan For Content: when, how and by whom
benefits will be measured.
PPD Users needs/ projects products are
complete, clear and unambiguous… specs
of HW/ SW, tender doc.
Product Description

A Product Description should cover the following topics.

• Purpose
• Composition
• Derivation
• Format and Presentation
• Development Skills Required
• Quality Criteria
• Quality Tolerance
• Quality Method
• Quality Skills Required
• Quality Responsibilities 5
Exercise F – Product Description
 
Additional Scenario Information
 
One of the products to be produced by the project is a Contract between MFH and the
selected external supplier of the supply and installation of the hardware and software
solution.
 
Notes from the Project Manager’s Daily Log
 
The contract between MFH and the selected external supplier will specify the type and
quality of service required. The selected external supplier must follow the industry quality
standards for delivering hardware and software solutions.
 
All project documents will be subject to a quality review. Nominated products will require a
formal quality record which is to be signed-off by the quality review chair.
 
Draft a Product Description for the Contract, using the headings below and Appendix A.17
to assist you.
Title Contract for IT vendor

Purpose This agreement specifies the MFH requirements for the supply
and installation of a hardware and software solution. It provides
measurable criteria against which the selected external supplier's
performance will be assessed.
 

Composition · Responsibilities of MFH and selected external supplier.

· Mechanisms for monitoring and reporting performance levels.
· MFH Dispute resolution process.
· Confidentiality provisions.
· Conditions for termination of contract.
· Glossary of all technical terms contained in the contract.

Format and A4, Word document, printed both sides in black and white.
  · Font: Arial, 12pts.
Presentation·
Quality Criteria (To what spec the product is to be produced, how will you check this
products (what quality measurem,ent will be applied) and to what
this specs this product to meet)
· Contains all composition items listed above.
· Not more than 60 pages.
· Complies with MFH corporate branding standards.
· No typographical errors.
 

Quality Skills · Proof-reading skills.

Required  

Quality · Producer/Presenter: Director of Information Technology.

· Chair: Project Manager.
  · Reviewer: Hardware Manager and Chief Finance Officer.
Responsibilities · Approver: Chief Executive Officer.
 
Exercise H – Quality Management Strategy
 
As the Project Manager, you have asked Project Support to start drafting the Quality
Management Strategy for the Restructuring Project and have been presented with the
information that follows:

Introduction
This document defines the approach to be taken to achieve the required quality levels during
the project. The Project Board will have overall responsibility for the Quality Management
Strategy. Project Assurance will provide assurance on the implementation of the Quality
Management Strategy.
 
Quality management procedure - Quality standards
Industry quality standards for delivering hardware and software solutions.
MFH document standards.

Records
A Quality Register will be maintained to record the planned quality events and the actual
results from the quality activities.
Configuration Item Records will be maintained for each product to describe its status, version
and variant.
Quality records for products that require them will be stored in the quality database.
Roles and responsibilities
 
Team Managers will provide details of quality checks that have been carried out.
Team Managers will ensure that the Quality Register is updated with the names of team
members who are involved in the review process.
The Senior User will review the Product Descriptions of the products to be produced by
the selected external supplier to ensure that they can be achieved.
Product Breakdown Structure
 Restructuring Project

Facilities Services Implementation IT services Trial Run

logistics
Existing HW
Design for future
Implementation and SW list
staffing structure
Plan for staffing
HW and SW
Existing specification
staffing
structure Installation plan Contract for installation
of HW and SW of HW and SW

Tender

Publicity
Proposal
assessment
Selected
contractor
Risk Register
 
Identify a risk to the MFH Restructuring project and create an entry in the Risk Register.

Risk Identifier R001

Risk Author XXXXX
Date Registered DD/MM/YYYY

Risk Category Ordering / product

Risk Description 1. Supplier will deliver HW 2-3 week late.
Probability 20%
Impact 100000/-
Expected Value 100000x 0.2 = 20000
Proximity Within Stage / imminent
Risk Response(s) Reduce :Alternate supplier, distributed order100000/-
Risk Status Active
Risk Owner xxxxxx
Risk Actionee xxxxx
Work Package:
Team or Person Authorized IT Team Manager
Work Package Description Installation of new Hardware and
Software

Development Interfaces External suppliers of Hardware

Suppliers of software
Operations and Maintenance Interfaces Facilities team Manager – responsibility
of restructuring services, IT team
Manager

Joint Agreements Work is to start at the beginning of

week 2 (Stage 4)
Work is to finish at the end of week 24
of stage 4'

Reporting Arrangements Checkpoint Report every Monday by

10.00 am
The report must contain a summary
of all products worked on during the
previous week
Problem Handling and Escalation Notify PM of any issues / risks identified
by e mail / telephone, immediately.

Approval Method User assurance/ project assurance will

test the products and approve.
THANK YOU !