Stryker

Svetlana Romanova

092rig058

A project management and control system for capital projects

Heublein Inc. implements project management and control system (PM&C). 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, some weakness occurred. Some of its major

projects went over budget. 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.

One purpose of PM&C was that the company had to efficiently use the

capital funds and PM&C has been identified as one mechanism to archive it. The

other purpose was to increase the performance of every company’s project. By

developing a unique process fit to the company, it emphasized on planning

before a project than controlling after a project has launched. Succeeding each

project is more important than accountability or blaming after failure.

The project was successful in some criteria. It was finished on time and within

budget. The perception from operational personnel was positive as well.

However, I think future input is required to improve the program.

Cost-benefit analysis only provided a single justification for any project. However,

a project is not only to archive financial success but also other goals. The

minimal emphasis on the project execution and other aspects resulted overbudget.

This is the reason why Heublein Inc. sought for PM&C. This doesn’t

mean cost-benefit is not important enough to combine into the PM&C. In fact, it

was still included in the system.