Case Studies 709 Back At The Beginning Of Follow-On Work

Case Studies 709back At The Beginning Of The Follow On Work Good Proj

Analyze a project management scenario involving resource allocation, budget management, and ethical considerations during the follow-on phase of a project. Discuss whether to escalate issues to higher management, support key personnel on overhead, seek customer relief for cost overruns or underruns, and strategies to prevent recurrence of similar issues in future contracts. Include case analysis, ethical implications, and conflict management within project processes.

Sample Paper For Above instruction

The scenario presented in the case study revolves around the management of resources, budgets, and ethical considerations during the follow-on work phase of a project. Jerry's estimation to support key personnel during a "bathtub" period highlights the challenges project managers face when dealing with cost overruns and resource allocation in contract management. This case becomes an excellent example of how project managers must balance client demands, organizational policies, and ethical standards while maintaining project integrity.

Initially, Jerry calculated a support cost of $40,000 per month but revised it to $125,000 for the entire bathtub period. This revision was influenced by strategic planning around plant shutdowns and flexible resource reallocation. During the team meeting, Jerry's directive to "tighten their belts" was aimed at establishing a contingency reserve, which was essential for absorbing unexpected costs and safeguarding project continuity. The firm-fixed-price contract added pressure to adhere strictly to revised schedules, extending administrative support activities through February 28, to ensure comprehensive documentation and final cost accountability. This reflects the significance of careful planning to incorporate potential contingencies while maintaining transparency with stakeholders.

Jerry’s reporting to Frank Howard, the division head, illustrates the importance of communication channels within project hierarchies. Frank’s immediate intent to record the management reserve as excess profit underscores a common conflict between project managers and senior managers regarding the perception and utilization of contingency funds. Frank’s suggestion to book the reserve as profit to influence his bonus shows a misalignment with ethical project management practices, emphasizing the importance of maintaining objectivity and accountability in financial reporting.

Regarding the specific questions, several ethical and managerial considerations arise. Firstly, whether Jerry should escalate the issue to the general manager depends on the severity of the financial implications and organizational policies. If the financial impact is significant and management’s response is inappropriate, escalation becomes necessary to safeguard stakeholder interests and uphold ethical standards.

Supporting key personnel on overhead costs involves strategic decisions about resource utilization. While overhead support is reasonable during a temporary support period, it must be transparently documented and justified to prevent potential misuse or misinterpretation of funds.

If the project were a cost-plus contract, approaching the customer for relief on additional costs could be justified if the overruns are beyond scope and due to uncontrollable factors. Transparent communication of the problem, along with detailed cost analyses, would foster trust and facilitate negotiations. Conversely, if the project experienced a cost underrun, previous assumptions regarding additional funds would need to be reassessed, with the possibility of reallocating savings to other areas.

To prevent recurrence of such situations in future contracts, implementing rigorous cost control systems, regular reporting, and strict adherence to ethical standards are essential. Cultivating a culture of transparency and accountability from the top down can significantly reduce the likelihood of unethical practices or mismanagement of contingency funds.

The second case study involving Franklin Electronics highlights the challenges of adopting formal project management methodologies like earned value management (EVM). Franklin’s new contract with Spokane Industries required precise reporting and performance measurement, but the organization’s unfamiliarity with EVM led to misinterpretation of performance data. The contractor’s simplistic reporting approach failed to accurately reflect true project status, resulting in severe performance concerns expressed by Spokane’s vice president. This underscores the importance of comprehensive training, clear communication, and understanding of project performance metrics.

The performance data showed increasing cost and schedule variances, hinting at underlying issues such as poor estimation or inadequate monitoring. The vice president’s alarm at a potential 500% cost overrun and year-long schedule slippage exemplifies the consequences of poor project control. The project manager, in his defense, should emphasize proactive correction measures, clarify any misunderstandings in the data, and propose a detailed corrective plan.

Furthermore, this case demonstrates that proper earned value measurement does not replace the need for regular interchange meetings. Instead, it complements face-to-face reporting by providing quantitative data that analysts and stakeholders can interpret collectively. The absence of effective communication, coupled with misinterpretation of indicators, can lead to drastic managerial decisions like project cancellation, which might be avoidable with proper understanding and ongoing dialogue.

The third case centers on Wiley Coyote’s negotiations with a contractor, highlighting the importance of accurate bid analysis and ethical conduct. Wiley's decision to select the lowest bidder raises questions about the thoroughness of bid evaluation and potential risks associated with cost underbidding. His review of the contractor’s proposal—particularly overhead rates and profit margins—must be rooted in detailed cost analysis and ethical considerations.

Specifically, Wiley needed to verify that the contractor’s submitted costs are realistic and achievable. The contractor’s overhead rate of 150%, along with their profit request, must be critically assessed against industry standards and past performance data. Any attempt to negotiate down to a lower figure should be based on an honest evaluation rather than solely on cost considerations to avoid future project risks or unethical behavior. Transparency and integrity in negotiations uphold organizational reputation and project success.

In all cases, risk management plays a critical role. Evaluating sources of project risk involves analyzing estimation accuracy, resource availability, and potential ethical lapses. Developing strategies to mitigate these risks includes establishing rigorous review protocols, fostering a culture of transparency, and employing formal project management tools like EVM. These systematic approaches provide early warning signals and facilitate informed decision-making, ultimately leading to more successful project outcomes.

Preventing the recurrence of resource misallocation, cost overruns, and ethical breaches requires embedding a culture of integrity, continuous training, and robust oversight within organizations. Senior leadership must model ethical behavior and foster an environment where transparent communication and accountability are prioritized. Regular audits, clear policies, and stakeholder engagement further reinforce these principles, leading to sustainable project success.

In conclusion, these case studies highlight the importance of ethical judgment, rigorous project control systems, and effective communication in managing complex projects. Adopting formal methodologies, fostering organizational integrity, and implementing proactive risk mitigation strategies are vital for successful project execution in today's dynamic environment.

References

• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.
• Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling*. Wiley.
• Meredith, J. R., & Mantel Jr, S. J. (2017). Project Management: A Managerial Approach*. Wiley.
• Fleming, Q. W., & Koppelman, J. M. (2010). Earned Value Project Management*. Caspian Publishing.
• Lientz, B. P., & Rea, K. P. (2018). Risk Management for Project Managers*. Academic Press.
• Schwalbe, K. (2015). Information Technology Project Management*. Cengage Learning.
• Harrison, F., & Lock, D. (2017). Advanced Project Management: A Structured Approach*. Gower Publishing.