The Custom Woodworking Company

STATEMENT OF WORK
WOODYS 2000
ENRIQUE DE LA FUENTE

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1. BACKGROUND AND BUSINESS OVERVIEW

1.1 Executive Summary
In this case study, there are two different problems to be addressed. Firstly, the strategic vision and management problems normally related with the business, i.e. market vision related with the crisis and new opportunities, change in generation, different perspectives in management. And secondly, the project itself. It consists in the increase of the production capacity, implementing new equipments and new industrial organization. Here in our project proposal, we are going to described only the development of the increase in productivity. It is not going to be treated the other problems related with the strategic vision of the company. We assumed that the vision of the company is already established. Our commitment is to develop the increased in capacity and new features in the new part of the existing factory.

1.2 Background
The Custom Woodworking Company is a small-to-medium sized custom furniture and cabinet making company, established in 1954 by Ron Carpenter and Emelia Carpenter. Over the years they obtained a good reputation between the clients and the workers. In the recent years, after the incorporation of their son John Carpenter, the production moved to the subcontract work supplying and installing counter-tops, cabinets and similar fixtures for new commercial construction. Also they have produced millwork for the construction world. In the 1989 there was a mini-boom in the commercial construction. Woodys directors insisted in the new market opportunities and the necessity to increase space and the companys production efficiency. There were two possible solutions, change plant location or increased the surface in the existing facilities. The final decision was to enlarge the facilities due to avoid the interruption to production while relocating their existing equipment.

2. PROJECT OVERVIEW STATEMENT

2.1 STATING THE PROBLEM OR OPPORTUNITY
Due to the economical perspectives, the management board will be incharge of increase the production, the plant space in 25% and the modernization of the production lines. This will convert the Custom Woodworking Company into one of the most developed wooding company in the XXI century.

2.2 ESTABLISHING THE PROJECT GOAL

The main scope to this project is the overall increase the production of the factory and the client satisfaction adding capacities to the different departments. To obtain this objective the project has a close budget of 17 million dollars. The dead-line for this project is in 18 month. The name of the project will be WOODY 2000 The responsible of this project will be Spencer Moneysworth. 2|P ag e

This project excludes the market risks and other necessities of departments not related with production. Marketing and sales, strategic vision and consumer relations are not defined in the project .They are not facts to be included in the risk of the project. These constrains could be considered as dependent of the result, but not a factor to be included in the project.

2.3 DEFINING THE PROJECT OBJECTIVES

The objectives of this project are: Increase the production capacity (in the example not consider quantity) Increase the flooring of the plant in 25% Install air condition Install free-dust painting and finishing shop Additional compressor capacity Completely install a semi-automatic woodworking production train. Renovation the President and Executive Vice Presidents' offices

2.4 IDENTIFYING SUCCESS CRITERIA

4 main success criteria: Finishing ontime, in 18 month. Finishing on budget, 17million $ Finishing on quality, the semi-automatic woodworking production train and the freedust painting and finishing shop Design and fisnish of the Manangement Board offices

3. SCOPE TRIANGLE
3.1 COST
The maximun cost allowed by the management board will be 17 million dolars. It is important to mantain a good control over the budget, in order to avoid deviations and incurr in possible financial charges

3.2 TIME
The maximum time to project execution will be 18 months. No delays are permitted. The management board will be establish milestones to control the development of the proyect. Any deviation has to be properly reported to the Project Manager. The estimation of the time is based in the Delphi techinque, which is developed by the consulting company of Win Easly.

3.3 RESOURCES
Always the resources are limited. In this case, we are working with internal human resources represented by the Project Manager (I. Leadbetter), the Financial Manager (Spencer Moneysworth), the production manager (Miles Faster), and the budget controller (Kim Cashman). And also external human resources, General Contractor Project Manager (I. Kontrak), Design subcontractor (R. Schemers), and all the technical subcontractors and suppliers. Apart the human resources, we need to take into consideration the physical facilities, the equipment to be used and the inventory. 3|P ag e

3.4 QUALITY
This is one of the main factor to the work we have to develop. Always is divided in two types, the product quality and the process quality. The first, is determinated by the Conditions of satisfaction (COS) established by the client, in our case the management board of the company. The second, is the quality developed by the project team in order to obtain the final product according to the neccesities the owners have. Process quality has to be developed in every stage of our project life cycle, from the planning, following by the launching, then the controlling, the accepation and the closing.

3.5 SCOPE
This is the critical point to define the COS. In our project the original idea is to increase the space avalible in the company production plant in 25%. Also it is important to develop an increase in production quantity and quality by the installation new semi-automatic equipment. The last point, but not less important is the redecoration of the management board offices. From my opinion the small details are important, and the really success in this project is based in this last part. Managers have to be satisfied with their new offices to avoid the unsatisfaction of the client.

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4. TASK AND WORKS

4.1 WORK BREAKDOWN STRUCTURE
Sumarizing this are the main activitires and task to develop:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

PLANNING DESIGN THE NEW AREA & REQUERIMENTS DESIGN NEW EQUIPMENTG AND SITUATION IN PLANT PLANNING AND BUDGETING PROJECT EXTERNAL POURING FUNDAMENTS AND WALLS SITE CLEARING AND EXCAVATIONS CONSTRUCTING THE HALL INSTALL PLUMBING INSTALLING MECHANICAL INSTALLING ELECTRICITY PAINTING WALLS MOUNTING WALLS INSTALLING STEEL STRUCTURE INSTALLING THE NEW EQUIPMENT PROGRAMING AND TESTS M. EQUIPMENT DUST FREE PAINT SHOP PRODUCTION TRAIN STARTING UP PRODUCTION AND CLOSING CLOSING PROJECT- CLIENT FEEDBACK

165 days 160 days 150 days 5 days 117 days 54 days 63 days 156 days 28 days 35 days 31 days 68 days 46 days 42 days 138 days 84 days 48 days 54 days 5 days 5 days

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4.2 TASK DURATIONS

In order to determined the duration of each activity we are going to develop a table based on the wide-band delphi technique, which consist on the conjuction of the delphi technique and the 3 point-method.

4.2.1 WIDE-BAND DELPHI TECHNIQUE

Most Optimistic likeable 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 PLANNING DESIGN THE NEW AREA & REQUERIMENTS DESIGN NEW EQUIPMENTG AND SITUATION IN PLANT PLANNING AND BUDGETING PROJECT EXTERNAL POURING FUNDAMENTS AND WALLS SITE CLEARING AND EXCAVATIONS CONSTRUCTING THE HALL INSTALL PLUMBING INSTALLING MECHANICAL INSTALLING ELECTRICITY PAINTING WALLS MOUNTING WALLS INSTALLING STEEL STRUCTURE INSTALLING THE NEW EQUIPMENT PROGRAMING AND TESTS M. EQUIPMENT DUST FREE PAINT SHOP PRODUCTION TRAIN STARTING UP PRODUCTION AND CLOSING CLOSING PROJECT- CLIENT FEEDBACK 165 days 160 days 150 days 5 days 117 days 54 days 63 days 156 days 28 days 35 days 31 days 68 days 46 days 42 days 138 days 84 days 48 days 54 days 5 days 5 days 140 140 4 44 41 12 29 20 56 20 41 51 7 52 4 160 150 5 52 67 30 35 33 65 40 42 89 56 54 5 Pesimistic 180 160 6 72 69 36 41 34 92 96 43 97 57 56 6

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4.3 RESOURCES
Column1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 RESOURCE Spencer Moneysworth Miles Faster Kim Cashman I. Leadbetter I. Kontrak GENERAL CONTRACTOR C. Droppe (Charlie) WATER EQUIPMENT B. Leakey (Bert) FINISHING D. Rivett STEEL STRUCTURE R. Schemers DESIGN A. Dent MECHACNICAL INSTALATIONS O. Volta (Olaf) ELECTRICAL INSTALLATIONS E. Forgot (Eddie) PRODUCTION TRAIN W. Easley (Win) CONSULTING COMPANY Finnacial Director VP Production Controller Woody's Project Manager EDI Project Manager EDI General Manager I. C. Rain Ltd, water equipment I. C. Rain Ltd, water equipment Classic Cladding Co, Roof Classic Cladding Co, Roof Beam Construction Ltd. Steel structure Beam Construction Ltd. Steel structure Schemers and Plotters (S&P) Schemers and Plotters (S&P) Tinknockers Associates, mechanical contractors Tinknockers Associates, mechanical contractors Zapp Electric Co., electrical sup. Zapp Electric Co., electrical sup. Piecemeal Corporation, equipment supplier Piecemeal Corporation, equipment supplier Project management consultants Project management consultants TYPE Wage Wage Wage Wage Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material

4.3.1 RESOURCE BREAKDOWN STRUCTURE

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4.3.2 STAFFING, ROLES , RESPONSIBILITIES

Primary role of the project team is assist to the coordination meeting developed every week. The first week is going to be the kick-off meeting in order to introduce the whole team who is going to develop the project. This is the representation of the roles and responsablities of every member of the team:

4.4 ESTIMATING COST

4.4.1 COST BUDGETING
Column1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 RESOURCE Spencer Moneysworth Miles Faster Kim Cashman I. Leadbetter I. Kontrak GENERAL CONTRACTOR C. Droppe (Charlie) WATER EQUIPMENT B. Leakey (Bert) FINISHING D. Rivett STEEL STRUCTURE R. Schemers DESIGN A. Dent MECHACNICAL INSTALATIONS O. Volta (Olaf) ELECTRICAL INSTALLATIONS E. Forgot (Eddie) PRODUCTION TRAIN W. Easley (Win) CONSULTING COMPANY Finnacial Director VP Production Controller Woody's Project Manager EDI Project Manager EDI General Manager I. C. Rain Ltd, water equipment I. C. Rain Ltd, water equipment Classic Cladding Co, Roof Classic Cladding Co, Roof Beam Construction Ltd. Steel structure Beam Construction Ltd. Steel structure Schemers and Plotters (S&P) Schemers and Plotters (S&P) Tinknockers Associates, mechanical contractors Tinknockers Associates, mechanical contractors Zapp Electric Co., electrical sup. Zapp Electric Co., electrical sup. Piecemeal Corporation, equipment supplier Piecemeal Corporation, equipment supplier Project management consultants Project management consultants TYPE Wage Wage Wage Wage Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material Wage Material COST 25/hora 25/hora 25/hora 25/hora 25/hora 0 25/hora 0/hora 25/hora 0 25/hora 0 25/hora 0 25/hora 0 25/hora 0 25/hora 0 25/hora 0 COST2 0 0 0 0 0 450000 0 700000 0 1900000 0 3000000 0 450000 0 500000 0 1950000 0 4500000 0 250000

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4.4.2 COST CONTROL

TASK HOURS DAYS COST TOTAL

1 PLANNING 2 DESIGN THE NEW AREA & REQUERIMENTS

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 R. Schemers DESIGN

165 days
1.280 160 days 1 160 days 1.200 150 days 1 150 days 40 40 40 40 40 0,004 103,219 0,634 0,049 8,091 1 0 5 days 5 days 5 days 5 days 5 days 0 days 12,902 days 0,079 days 0,006 days 1,011 days 164,6 days 0 days $25 $450.000 $25 $450.000 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $250.000 $25 $25 $450.000 $25

$1.219.800
$482.000 $32.000 $450.000 $480.000 $30.000 $450.000 $257.800 $1.000 $1.000 $1.000 $1.000 $1.000 $0 $2.580 $16 $1 $202 $250.000 $0

DESIGN NEW EQUIPMENTG AND SITUATION IN PLANT

R. Schemers DESIGN

PLANNING AND BUDGETING PROJECT

I. Kontrak Spencer Moneysworth I. Leadbetter Kim Cashman Miles Faster Miles Faster W. Easley (Win) I. Leadbetter Kim Cashman I. Kontrak CONSULTING Spencer Moneysworth

21 EXTERNAL 22 POURING FUNDAMENTS AND WALLS 23 SITE CLEARING AND EXCAVATIONS

24 GENERAL CONTRACTOR 25 I. Kontrak

63 days
432 54 days 63 days 1 117 days 312 39 days

$468.600
$10.800 $457.800 $450.000 $7.800

26 CONSTRUCTING THE HALL 27 INSTALL PLUMBING

28 29 30 31 32 33 34 35 36 37 38 39 40 41 WATER EQUIPMENT C. Droppe (Charlie) 1 224 280 1 1 248 1 272 184 1 10 | P a g e

156 days
28 days 28 days 28 days 35 days 35 days 35 days 31 days 31 days 31 days 68 days 34 days 68 days 46 days 46 days 23 days $700.000 $25 $25 $500.000 $1.950.000 $25 $1.900.000 $25 $25 $1.900.000

$10.013.400
$705.600 $700.000 $5.600 $507.000 $7.000 $500.000 $1.956.200 $1.950.000 $6.200 $1.906.800 $1.900.000 $6.800 $1.904.600 $4.600 $1.900.000

INSTALLING MECHANICAL
A. Dent MECHACNICAL INSTALATIONS

INSTALLING ELECTRICITY
ELECTRICAL INSTALLATIONS O. Volta (Olaf)

PAINTING WALLS
FINISHING B. Leakey (Bert)

MOUNTING WALLS
B. Leakey (Bert) FINISHING

42 INSTALLING STEEL STRUCTURE 43 D. Rivett 44 STEEL STRUCTURE 45 I. Kontrak 46 I. Leadbetter

336 1 439,314 552,686

42 days 42 days 42 days 54,914 days 69,086 days

$25 $3.000.000 $25 $25

$3.033.200 $8.400 $3.000.000 $10.983 $13.817

47 INSTALLING THE NEW EQUIPMENT 48 PROGRAMING AND TESTS

49 50 51 52 53 54 55 56 CONSULTING W. Easley (Win) 1 168 1 192 1 432 364,427 179,573

138 days
84 days 21 days 84 days 48 days 24 days 48 days 54 days 54 days 54 days 45,553 days 22,447 days $250.000 $25 $250.000 $25 $4.500.000 $25 $25 $25

$5.033.400
$254.200 $250.000 $4.200 $254.800 $250.000 $4.800 $4.524.400 $4.500.000 $10.800 $9.111 $4.489

M. EQUIPMENT DUST FREE PAINT SHOP

MECHACNICAL INSTALATIONS A. Dent

PRODUCTION TRAIN
PRODUCTION TRAIN E. Forgot (Eddie)

57 I. Kontrak 58 I. Leadbetter

59 STARTING UP PRODUCTION 60 CLOSING PROJECT- CLIENT FEEDBACK

61 62 63 64 65 66 67 68 69 70 71 72 73 I. Leadbetter Miles Faster I. Kontrak Spencer Moneysworth Kim Cashman GENERAL CONTRACTOR I. Leadbetter Spencer Moneysworth CONSULTING W. Easley (Win) I. Kontrak Miles Faster Kim Cashman 40 40 40 40 40 1 24 3 1 3 48 6 12

5 days
5 days 5 days 5 days 5 days 5 days 5 days 5 days 3 days 0,375 days 12 days 0,375 days 6 days 0,75 days 1,5 days $25 $25 $25 $25 $25 $25 $25 $25 $250.000 $25 $25 $25 $25

$257.425
$257.425 $1.000 $1.000 $1.000 $1.000 $1.000 $25 $600 $75 $250.000 $75 $1.200 $150 $300

TOTAL

7718,997

548

$16.992.625

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5. CONSTRUCTION OF THE PROJECT NETWORK DIAGRAM

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6. MANAGEMENT APPROACH
6.1 PROJECT MANAGEMENT LIFE CYCLE
Once the goals and objectives are clearly defined we have to elaborate a descriptive plan to develop the project, we need to decide the Project Management Life Cycle to follow. In this case the best suitable PMLC would be the Adaptive PM. Due to the design part of the project, and the complex of the industry, it could be a plus to use a flexible approach to treat all the possible problems. The cycle to follow will be: The first step is to organize a kick off meeting for all components and players of the project. Here we are going to present the objectives, goals and methods to achive success in this project. No exclusions are important. Secondly, a good time line plan must be agree and confirm with all players. Some tecniques must be used, Gantt charts and Network Diagram. Thirdly, control mechanisms has to be develop and agree by all members. Lastly, the final project submision and feedback must be developed.

6.2 RISK AND CHANGE MANAGEMENT

The involvement of the management board is crucial for the success of the project. It is important to follow the 4 phases in the risk management life cycle: Risk identification, in this case the lack of coordination between departments Risk assesment, once the risk is identify, the next step is the evaluation of the possible repercutions for the hole project. Risk mitigation, after the evaluation it is important to look for a clever response to the risk Risk Monitoring and control, it could be convinient to develop mechanisms to test the correct elimination of the risk

7. PROGRESS REPORTING AND CLOSING STAGE

Connecting to our approach of project life cycle, it could be important to create the mechanisms to update the development of the project. Sometimes, we could use the weekly meeting or the department information to evaluate the rithm of the project. One important point is to have clear the critical path of the project, and to evaluate the task in which are not possible to be delayed. Also could be important to have some alternative in order to solve problems caused by the murphys law. In the closing stage, we need to pay attention to the client acceptance procedure. If the documents are not fulfill in that moment, they never will. And in the future any actions could be a disaster for the project manager. It is important to take into consideration the conducting of a post implementation audit, and generating a final report with all the as built documentation.

8. GANTT CHART

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9. APPENDIX
10.1 FORMS AND TEMPLATES DOCUMENTS
Documents to use in the project: Meeting Memo Individual or Workgroup Status Report template Monthly Project Status Report template Deliverable Acceptance Form Change Request Form Change Request Log Issues Log

10.2 OTHER RELATED DOCUMENTS AND CLIENT ACCEPTATION

Initial Risk Management Report Statement of the work Conditions of Satisfaction Project Proposal Project Overview Statement Resource Breakdown Structure Work Breakdown Structure Gantt Chart Project Network Diagram Cost budget

10.3 REFERENCES
Dulewicz V, Higgs MJ. Design of a new instrument to assess leadership dimensions and styles. Henley Working Paper Series HWP 0311. Henley-on-Thames, UK: Henley Management College; 2003. Knutson, Joan. Project management for business professionals, John Wiley, 2001 Lessard, Charles Stephen. Project management for engineering design, Morgan & Claypool Publishers, 2007 Lester, Albert. Project management, planning and control : managing engineering, construction and manufacturing projects to PMI, APM and BSI standards. Elsevier/Butterworth-Heinemann, 2007, 5th edition. Lock, Dennis. Project Management in Construction, Ashgate Publishing, 2004 Muller, R. & Turner, J.R. (2007) Matching the project managers leadership style to project type. International Journal of Project Management, 25 (1), January, pp. 21-32. Pinkerton, William J., Achieving project bottom-line succe$$, McGraw-Hill, c2003 Reiss, Geoff. Project management demystified : Today's Tools and techniques, E & FN Spon, 1995, 2nd edition. Richman, Larry. Project management step-by-step, Amacom, c2002. Wideman, M. (n.d.) Project management case study: the custom woodworking company Woody 2000 project [Online]. Available from: http://www.maxwideman.com/papers/woody2000/intro.htm (Accessed: 20 April 2010) Wysocki, Robert K.. Effective Project Management: Traditional, Agile, Extreme, 5th Edition. John Wiley & Sons, 042009.

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