Business Ethics in a Global Economy

Seigle, G. “Government Projects: Expect the Unexpected.” PM Network, November 2001. Smith, R. P. “The Historical Roots of Concurrent Engineering Fundamentals.” IEEE Transactions on Engineering Management, February 1997. Tan, G. W., C. C. Hayes, and M. Shaw. “An IntelligentAgent Framework for Concurrent Product Design and Planning.” IEEE Transactions on Engineering Management, August 1996.

Whitten, N. “Do Not Make Long-Term Project Commitments.” PM Network, February 2002. Zwikael, O., and A. Sadeh. “Planning Effort as an Effective Risk Management Tool,” Journal of Operations Management, Vol. 25, pp. 755–767, 2007.

The following case illustrates the development of a project planning, management, and control system for large capital engineering projects. Senior management’s goal in developing the system was primarily financial, in terms of keeping projects from exceeding budget and optimally allocate increasingly scarce investment funds. It is interesting to compare this system to that of Hewlett-Packard in the reading in Chapter 2.

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A PROJECT MANAGEMENT AND CONTROL SYSTEM FOR CAPITAL PROJECTS

Herbert F. Spirer and A. G. Hulvey

Introduction Heublein, Inc., develops, manufactures, and markets consumer food and beverage products domestically and internationally. The business of Heublein, Inc., their sales revenue, and some of their better known products are shown in Figure 1. Highlights of Figure 1 include: The four major businesses (“Groups”) use different manufacturing plants, equipment, and processes to produce

their products. In the Spirits Group, large, continuousprocess bottling plants are the rule; in the Food Service and Franchising Group, small fast food restaurants are the “manufacturing plants.” The amount of spending for capital projects and support varies greatly among the Groups, as would be expected from the differences in the magnitude of sales revenues.