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Cory Beck
Abstract
This paper will discuss a case study from the text book Project
Corporation. The case consists of a construction company that has won a contract
for an upcoming project. The project is erecting a 20,000-seat stadium. The case is
very in-depth in regards to the different stages of the project, and the amount of
time that each stage will take to complete. Within the case, there are five different
proposals that are given by the management team. Each of these proposals contains
ways to reduce time, and work around specific identified risks that are associated
with completing the project. In this paper, I will discuss the overall project timeline,
the five proposals, and identify the best solution to complete the project on time,
Project Overview
project that has the potential to generate a substantial profit of $300,000. In order
to maximize this potential profit, there are several risks that are associated that
need to be analyzed and thought out to arrive at the most economically efficient
conclusion.
The first risk is the complication of the dates associated with the start and
completion date. Construction on the project must start by February 15. Once the
project is started, the company has one year to complete. A penalty clause of
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$15,000 per week of delay beyond February 15 of next year is written into the
contract.
Another risk that is associated with the project is the companys need for
unionized employees due to the substantial size of the project. The unionized
employees have a labor contract that will expire on November 30, approximately
ten weeks prior to the projects proposed completion deadline. In the past, The
the time. If there is a strike, there is a 70% chance that the strike will last for 8
weeks, and there is a 30% chance that the strike could last for up to 12 weeks. If a
strike lasts for 12 weeks, the project would not be completed until after the
deadline. If the project extends past the February 15 deadline, the company will be
Lastly, a colder December than what had been assumed was now being
predicted. The cold temperatures had not been taken into consideration during
earlier estimates since previous forecasts called for milder weather. Concrete
pouring in December might require special heating that costs $500 per week.
There are many risks that are associated with this project. Project difficulty is
something that every project managers has to deal with. The idea of having a project
run smoothly is something that is unheard of. Being able to handle the different
types of problems that arise efficiently and effectively are what make an ordinary
University, Balancing all the elements of a complex project - time, money, scope and
people - is the project manager's job. The management team at the Sharon
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Construction Company was charged with the task of proposing ideas that could
The Proposals
following proposals. Their proposals were made on the ground of expected costs,
and the amount of time that it could advance the specific activity.
Proposal number one consists of expediting the pouring of the seat galley
supports. This would cost $20,000 and cut the duration of the activity to 6 weeks.
The initial activity was slated to last 12 weeks. By using this proposal it would cut
the time in half. However, $20,000 is 15% of the potential net profit. 15% is a large
chunk of potential profit to mitigate risks. Due to the high cost, and low return, I
Proposal number two is the same as proposal number one, but in addition,
put a double shift on the filling of the field. This would cost an additional $10,000, a
total of $30,000, and result in a 5-week time reduction from the original 14 weeks,
substantial, I would not support this proposal because the following step to
complete is the artificial playing field turf. Installing the turf takes 12 weeks to
complete. Without the 5-week reduction, the turf will be completed long before the
Proposal number three involves the roof. The roof is very important because
it precedes several activities. The use of three shifts and some overtime could cut
six weeks off the roofing at an additional cost of only $9,000. There are many steps
on this project, like many projects, that cannot be completed until the roof is
installed. If the roof is installed quicker, it will push everything that comes
afterward forward by six weeks. Another large advantage is that it mitigates the
weather factor sooner in the process. With a roof over the employees heads, work
can continue as normal no matter what the conditions outside. For a price of
$9,000, I would strongly support the third proposal and increase the productivity on
the roof.
Then if December is indeed cold, defer the pouring until the cold wave breaks,
schedule permitting, and heat whenever necessary. If a strike occurs, wait until it is
over, because there is no other choice, and then expedite all remaining activities. In
this case, the duration of any activity could be cut but to no less than one-third of its
normal duration. The additional cost per activity for any week that is cut would be
$3,000. This proposal involves too much delaying. Waiting until December to start
any work would be a waste of time. There is 8 weeks alone of clearing the sight
before any concrete will be poured. Waiting until after December 1 to pour concrete
would be cutting the project too close to complete the project on time.
The fifth and final project suggests not taking any action at all. The
management team suggests simply hoping and praying that no strike and no cold
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December occur. This would cost the company $0, however it leaves far too many
unidentified risks. These unidentified risks can lead to costly mistakes that result in
the project being behind schedule and over budget. If the project is behind, it can
particular job in order to finish it on time. The largest problem with a crash is it can
cause ongoing projects to fall behind schedule due to pulling resources from their
assigned tasks. It is always best as a project manager to do everything that you can
to control the outcome of a project. Doing nothing might work sometimes, but
The Timeline
started until another step is completed is the difference between project managing,
and project observing. Employees do not like to listen to a project manager who
doesnt have a clue about the ins and outs of the process. Being a confident and
organized leader will encourage employees to want to work, even when youre not
around. The time line can be compared to a roadmap. Without knowing where you
are, or how your getting to your next destination, you are lost. A timeline is a way
for everyone all the way from stockholders, to the Chairman of the Board, to have
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The timeline for the Sharon Corp is somewhat difficult. There is a lot that
needs to happen, in a relatively short amount of time. The project begins with
clearing the site; this process will take approximately eight weeks. After the site is
clear, work can start simultaneously on the structure itself and on the field. The
easiest way to break this down is to think of the structure as one timeline, and the
field as a secondary timeline. The work in the field involves subsurface drainage,
which lasts eight weeks. Following the drainage, the filling portion can begin. The
filling portion is expected to take approximately fourteen weeks. After the filling
portion is complete, the construction of the artificial playing turf can take place. This
concrete footers can be poured. Next, a steel structure that carries the roof will be
built on top of the footers; this process will take approximately four weeks. After
the structure is in place, the roof can be built lasting approximately eight weeks.
Next comes the pouring of the supports for seat galleries lasting approximately
twelve weeks. Following the supports, the pre-cast galleries will be erected; this
process is expected to take thirteen weeks. Next, the seats can be poured with an
estimated completion time of four weeks. The dressing rooms are next with a four-
week completion date. Next, the seats and dressing rooms are ready to be painted.
The painting process is expected to take three weeks. The lights and scoreboard are
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expected to take five weeks. Lastly the other facilities in the structure are allotted
Knowing how and why this timeline is laid out in the manner that it is will
prevent mistakes. Mistakes ultimately cost money. This timeline offers a good
foundation of what to expect, but just like any project, there are circumstances that
always arise. Sometimes estimated activity times are completed behind schedule,
and other times they are completed ahead of schedule. It is important for the project
manager to be flexible and always looking ahead at the timeline to see what areas
The Decision
to pick the best decision for this project. There are many variables that are
decision on the facts that I have available, and make my judgment call with the best
First of all, the project needs to know when it will begin. This date will start
the entire timeline and lay out the road map to a successful completion date. For this
date, I would select the final day to start, February 15. This date will give us one
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year to complete the project. I have selected this day for several different reasons.
Number one, the site clearing is something that can be done while the ground is still
frozen. The site will be clear by April 15. Looking at previous years, frost has not
been an issue in April, therefore we will be able to begin digging and pouring the
footers as necessary.
The next decision as the President of the company is the dilemma of the
February 15, we will complete the project on December 13. As mentioned earlier,
the labor agreements are only negotiated through November 30. If nothing is done
and the unionized workers go on strike, there is a 30% chance that the strike will
last beyond February 15, causing a very large penalty on a weekly basis. As the
President, I would need to decide which proposal I would like to accept to speed up
the timeline and move the completion date forward. Proposal number one does
offer a significant advance, as far as completion date, but I feel that $20,000 may
cost more than what it is worth. The second Proposal is simply increasing the
amount of money and filling the field quicker. Viewing the field as a separate
timeline indicates that the field portion of the project will be completed by October
11. There is no reason to spend extra money on speeding up the field timeline.
Proposal number four suggests waiting until December. I see nothing but red flags
with this proposal. I see it sky rocketing the price of the project, and almost
certainly going beyond the date of completion. If there is a strike, the company has
no choice but to wait it out and potentially be delayed by twelve weeks. Proposal
number five is the hands off approach that does not take any action at all. Given my
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start date, there is a 50% chance that proposal number five would work fine.
However I feel that 50% is too high of a risk that could result in costing the company
I feel that the smartest, and most economical decision is to accept the third
proposal. The third proposal increases to three shifts when completing the roof.
This increase will cut six weeks off of the roof, and will cost $9,000. Because of the
amount of projects that cannot be started until after the roof is completed, speeding
this process up is the best place to move the timeline forward. Putting the third
proposal into effect will give a completion date of November 1. Completing the
project by November 1 allows an extra thirty days for incidentals and unidentified
circumstances that could arise before the union potentially goes on a strike.
Our total net profit would be reduced to $291,000, but the risks associated
with doing nothing would be greatly minimized. As the President of the company, I
would expect that the board members, as well as the management team, to agree
Conclusion
Project management is not something that individuals are born with. Being a good
project manager takes skills that are not easily obtained. A project has to
workers, etc. Finally, a project evolves through time, via resource consumption,
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product delivery, members' changes and gain of experience, without losing its own
exceptionally organized, passionate about their position, and enjoy working with
people. According to Archer The blend of skills required of the successful project
knowledge). In this list, inter-personal and team skills rank well ahead of technical
Company is a great example of some of the challenges that a project manager will
have to face. No two projects are identical. Researching, planning, organizing, and
executing are words that describe an average day for a project manger. Laying a
solid timeline, that includes realistic goals and pricing will lead to success. The
mission statement of a successful project manager should be, hope for the best, but
plan for the worst, and treat every project like it is the most important project of
your life.
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Works Cited
Archer, N. (1997, Dec 09). Good project managers are vital resource. The Spectator.
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Meredith J.R., Mantel S.J. (2012) Project Management, A Managerial Approach 8th
doi:http://dx.doi.org/10.1108/03684920810884928