A Project Management and Control System for Capital Project

Portland State University Engineering and Technology Management Program

Case Study # 3

A Project Management and Control System for Capital Project

EMGT545/645 - Project Management in Engineering and Technology

Dr. Dragon Milosevic Fall 2004

By: Team # 4 Bassam Abu- Khater Kevin Huang Michael Wright Mike Adams Samir Said

I. Case Summary This case mainly presents that a company, Heublein Inc., implements project management and control system (PM&C) in to its progress. Prior to PM&C, the company focused on cost-benefit analysis and minimal emphasis on execution of the projects. There was no mechanism to assure that non-financial results were achieved. However, there was some weakness occurred. Some of its major projects went over budget. Moreover, the need for optimal utilization of capital funds intensified since depreciation legislation was not keeping pace with the inflationary rise in costs. Therefore there was a need to improve its process. PM&C was introduced to the company. A consultant was brought in as an outsider to cooperate with a program manager to plan how to design and implement the system to the company. The program got a positive perception in the end. Our team thought using the outsider to execute the program is a very clever. From our discussion, the case was successful partially due to the consultant.

II. Answer to the Questions 1. Which of the project planning aids describe in the chapter was used in the case? First, the company design the phases of the program. Then, the company used a hierarchical planning system, known as Work Breakdown Structure (WBS). The accountability matrix was used to assign each activity to every person with different responsibility. Basic loop of feedback for control was used to simplify the concept of the process. The program group also used Gantt convention to track task and setup milestones. 2. For each of the aids used in the case, describe how they were constructed and if there were any...