WOODWORKING COMPANYWOODY 2000 PROJECT

Submitted By: Group C

Firstly. Woody’s should have looked at the possible ways to increase and improvise their current production system by making improvements to current processes and possible equipment upgrades without moving or expanding to a new location. Gururaj. The expansion project was carried out based on mini boom in commercial construction in South western BC. Woody’s did not evaluate and studied the alternative solutions extensively before starting the project. accompanied by an arbitrary budget without getting any approvals. Gaurav. Woody’s employees worked without any planning and coordination. Ramya. For an instance. Once the project was formally decided upon. Woody’s should have performed some kind of analysis to see whether expansion was necessary or not. The decisions were often made by one individual (Moneysworth). Ankit. Woody should have taken formal approvals and undergone a bidding process to get the best people at job in order to finish the project within the stipulated deadline and budget. No analysis or evaluation was performed by the Woody’s. d) Did they consider other solutions? Give Examples. Project Concept and Strategy a) Was the Woody 2000 project well-conceived? Give reasons for your opinion. Woody agreed to commit the company to a budget of $17 million as an absolute maximum for all proposed work and the target date for production was set to be eighteen months. Naman. as a result of which the project could not be completed as per the schedule. Prashanthi. possibility of major airport expansion. whether or not it would be in their best interest to move to a new facility or expand the existing one. Woody’s could have outsources the analysis and project review process to some external agency who could have reviewed. to move production to computer based automation process. in order to meet the current increase in demand of its products. the result was an inefficient and fragmented progress. The project’s success or failure could not be measured very accurately. followed by costly miscalculations. c) What strategies were there for achieving these objectives? What would you recommend? No proper and efficient strategies were articulated to achieve these objectives by Woody’s. The initial strategy was that Woody’s would expand and upgrade to increase output of their product and improve the current manufacturing facility. S&P commenced project’s preliminary des igns and raised questions and issues on the decision making process implemented by Woody.1 1. Production people were not involved in the project which hampered the project completion process. They set arbitrary timelines without any study and planning. and freetrade opportunities south of the border. to check whether the mini boom was sustainable for extended period of time or the possible expansion of airport would take place or not. b) What were Woody’s real objectives that could and should have been articulated? The real objective was to increase the production efficiency of the company. The Woody 2000 project was not well conceived. With no proper vision and planning. solely based on his or her limited expertise and vision. Moving to a new location involved a lot of cost and interrupted their existing manufacturing capabilities due to relocation of existing equipment. Abhinav. neither Submitted by Group C (Aniruddh. jeevan. As a result. e) Did they consider other solutions? Give Examples. unless the project had been completed as per the schedule. Nikita) .

In one two-week period. Employing Schemers and Plotters (S&P) for the building and industrial design work. jeevan. Ramya. procurement. 2. The estimated cost of $17 Million did not include cost for this work. When at last. Naman. Project Scope a) Why do you suppose renovation of the President and Executive Vice President’s offices were included in the project? The renovation work could have been kept out of the project's scope as it was in no way a critical activity for the main goal. b) Write a simple project scope statement? The space available in company for production plant will be increased by 25%. Renovation of the offices of top most management (The President and Executive Vice Presidents' offices . The cost of project is estimated to be about $17 Million and time allocated is 18 months. Submitted by Group C (Aniruddh. Extra resource allocation and time meant that this activity added cost to the project. Ankit. Woody’s mistakes were evident as the commercial space was over supplied and equipments were underutilized. Also an increase in production quantity and quality has to be achieved by the installation of new semi-automatic equipment. maximum). The reason behind this move could have to do with the HR policies of the company or with the standardized norms of the industry. Broad scope of work is described below: All engineering. the suppliers of the production train. Note: Any other work not mentioned in the above scope will not be considered as part of the project and will only be included after consulting the project executing company at expense of additional costs and resources.6 in No. contributing to a later construction schedule conflict in tying-in the new services. the delivery schedule slipped two weeks. Renovating offices as per annexure(s) attached. Gaurav. the manufacturing drawings for this critical long-lead equipment sat in a junior clerk's in-tray awaiting approval.2 Moneysworth nor Leadbetter was conscious of the need for any review and approval procedures for specifications and shop drawings submitted directly by either S&P or by Eddie Forgot of Piecemeal Corporation. the plant became operational. Prashanthi. during which both Faster and Leadbetter were on vacation. Nikita) . construction and commissioning. Abhinav. Gururaj. For this reason alone.

Abhinav. Nikita) . Naman. Gaurav. Ramya. Prashanthi. 3. Project Planning a) What should be included in a Woody 2000 project plan? What use would it be? The right budget and time must be estimated which makes for a good plan. including their approach to contracting for professional services and construction work. b) Evaluate Woody's plans for managing the project. The case must be studied in the best possible manner. Gururaj. This could include the assignment of right person to the right position. jeevan. The scope description must be included in each stage. What would you have done and would that change for successive phases of the project?? Submitted by Group C (Aniruddh.3 c) Develop a work breakdown structure? Wood y 2000 Planning PreExecutio n Decide Budget Detailed Estimations Documents legal / contract works Install Facilities Preparing the land Executio n Plan Layout Define time for project Foundation Commission ing Install automation processes Painting the CEO and the presedent office. Ankit.

Ramya. Quality a) How should quality be approached. Gaurav. minute and very important details were ignored and there was no milestones and checkpoints in scheduling plan. - 4. And the product quality in more of dependent on the process under taken and is also determined by the condition of satisfaction established by the client. The reminder of deadlines. Abhinav. Also there was issue of responsibility conflict. Submitted by Group C (Aniruddh. resulted in conflict between manager. budget constraints and clear goals. contractor and consultant at various level. schedules. The project plan did not discuss every work to be performed in detail like objectives. designs. They did not compensate for the perceived weakness in the planning. renovations. jeevan. Ankit. information about the upcoming critical dates and current progress charts if posted lets the employee be motivated to perform the work in time. It helps in standardization. Responsibilities were not clear and were ambiguous. It gives then clear idea and direction and help management to channelize all department/workers’ energy in one direction. This increases the end cost unnecessarily. Goals set were very unrealistic and the commitment which was expected out of the employees could not be expected because of such speedy goals. mechanical improvements. Prashanthi. By setting realistic timelines and sticking to them a commitment can be expected from the employees and this is being valued a lot in terms of the work. Naman. - All this should be a part of the project plan because of the following reasons:A good baseline helps the project to make the use of most of the time allotted to the people.4 There seems to be no real plan whatsoever. Gururaj. Nikita) . and what does it mean? Quality is an important aspect for the project to be undertaken where it is mainly divided into two type: 1) Product quality 2) Process quality The process quality is developed by the project team in order to obtain the final product according to the necessities the owner have. Scheduling was done but it was on macro level. The contract wid EID Company was not made without a plan. c) Did the project plan explain how the project and any changes would be controlled? Should this be part of the plan? Give reasons? The project plan was written in a very haphazard manner and did not explain as to how the project will be handled in case of any contingencies. The decisions have come without any realistic information.

and other construction items according to the consultant’s specifications and instructions Construction Quality: The quality of all PM/ Consultant deliverables must be planned for and managed to ensure quality as envisaged by stakeholders. For Construction Material: Random tests Contractor Quality of such as crushing test and compaction Construction test shall be carried out by the Contactor for the concrete. Project manager for this project was a bright young mechanical engineer who had specialized in programming semi-automatic manufacturing machinery. Gururaj. Process and Product Product Product b) Why did Leadbetter not invoke the specifications to ensure quality? What was the result? Ian Leadbetter. but he lacked the necessary project management techniques and processes. . including all workers and office staff HSE Ensure all pre-defined HSE standards and Contractor / Compliance Regulations are adhered to at all times PM and with the involvement of the contractor’s safety officer. the suppliers of the production train. Prashanthi. Ramya. each milestones should be produced in line with the agreed project schedule All deliverables should be within budget restrained. Responsible Quality Type Process Quality Process and Product Process 2 3 4 5 Contractor / Consultant / PM Finance Contractor / Consultant / PM HR Proactive engagement with the local Wood’s community: All impacts on the local management community should be discussed and and HR Team agreed with them in advance. Naman.e. salary etc. i. jeevan. Ankit. Abhinav.5 Our group has identified below parameters for quality: # 1 Quality Parameter Schedule Description All deliverables. This was main reason behind not invoking the specification to ensure quality as he was not able to necessary approval from management. Nikita) . Leadbetter was occupied with the software development and does not have a standardized process in place for the approval of submittals and other key project management owner processes. Moreover neither Moneysworth nor Leadbetter was conscious of the need for any review and approval procedures for specifications and shop drawings submitted directly by either S&P or by Eddie Forgot of Piecemeal Corporation. New unit. Gaurav. They both were on the vacation and were least Submitted by Group C (Aniruddh. Mr. Though gave considerable contributions to the mechanical and software side of the project.

Gaurav. and general contractor. Since there were no processes on order for submittal reviews and approvals. Reworks and delays are not acceptable. Leadbetter failed was quality of design process. the impact of quality on these projects are very high in achieving success where it would require the implementation of proper procedures and planning to achieve a timely. c) What is the importance of Quality to a project like this? Quality Control here can be defined as process of verifying that the project is built to plan. 5. This allows each one to know about his role in the project. Ledbetter’s need to focus on redesign of the software and not on his duties of facilitating and communicating information between all parties. engineer. where the manufacturing drawings for this critical long-lead equipment submitted by S&P and Piecemeal Corporation were awaiting approval. inexpensive. In today’s world. consultant. Naman. the delivery schedule slipped two weeks. and suitable project completion. The project millstones are: the budget can be made clear through proper planning. there was a significant delay in the delivery of the production train equipment. Abhinav. Gururaj. Ramya. There was not a process that was in place to deal with the expansion of the production train. the timelines and the cost of this role.6 bothered about the project. Quality a) Identify and describe a set of project schedule milestones from project concept to project completion. Another key area where Mr. and that the finished project (and all phases to get there) meet with the quality standards of the management. Quality controls and regular auditing helps in getting more reasonable estimates of the cost and deadlines. In Woody's case lack of product and specially process quality control cost them not only delay in production but also excessive financial burden. Ankit. This change caused the software design work that was completed to be discarded resulting in Mr. drop in sales and demotivation and negative environment across the unit. Due to this this reason alone. jeevan. The Chart of milestones: Submitted by Group C (Aniruddh. The equipment and machines should be suitable for the project needs and installed correctly. setting a good schedule of the work. b) Illustrate your milestones on a simple bar chart scaled to the information provided in the Case Study. that the tolerances allowable by industry standard and engineering practices have been met or bettered. So. Prashanthi. Nikita) . there is not much time nor resources to waste.

So. Naman. There was no accountability for not meeting the schedule. Nikita) . jeevan. To overcome this. This makes it easy to figure any problem which occurs. A good baseline plan. d) Illustrate your milestones on a simple bar chart scaled to the information provided in the Case Study. timeline) 0 1 2 3 4 5 Woody Project Millestone c) Illustrate your milestones on a simple bar chart scaled to the information provided in the Case Study. Woody would know clearly what was happening in each phase.7 begin working and production getting certificate of completion Purchase and installation of suitable equipments and machines Contract Allocation planing (budget. Ramya. Schedule. means every task will be scheduled by time and budget. Gururaj. by following up all the tasks in the project. It also shows up the strength and weaknesses in each task. The contract will be tied to the schedule and the float on critical path could be better managed with such a method. Submitted by Group C (Aniruddh. the overall project schedule with critical milestone could be identified. if the planning is good. Abhinav. Ankit. The baseline plan allows the manager to get a full view of the project progress. the manager can stop any out of control task or payment and he can come in any phase to add or fix any errors. Prashanthi. Gaurav. The complete project with critical milestone was not completed.

Ramya.$1 Million Contingencies . The "guesstimation" as prepared by Cashman was as follows: Cash Flow First Month .$1.$1. an estimate for construction work can be defined as the process of calculating the quantities and costs of the various items needed in connection with the work.4 Million/Month for 10 months = $14 Million Last Month . Gururaj. Naman. Before approving a project. Thus.8 6. Cost Estimating a) Develop a high-level estimate by "guesstimation". the cost of work required must be thoroughly investigated.$1 Million Total = $25. jeevan. Detailed Estimate Submitted by Group C (Aniruddh. The quantity estimate is one of the most important ones in order to arrive at an accurate cost estimate for the detailed plan.$1 Million Contingencies .$1 Million Months in between .4 Million/Month for 16 months = $22.$1 Million Months in between . Quantity Estimate or Quantity Survey This is a complete estimate of the quantities of materials or items that may be required to accomplish the project concerned. Abhinav.4 Million b) How should the estimate be presented? The estimates can be prepared well in advance of the project initiation as it helps us to make the budget more accurate.$1 Million Total = $17 Million Considering EID Quote for time frame of 18 months. Nikita) . Ankit. It is necessary to prepare the cost estimate. this "guesstimation" can be Cash Flow First Month .4 Million Last Month . Prashanthi. for the intended work from the plans and specifications. Gaurav.

30 25 20 15 10 5 0 Start End / 11 End 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Guesstimation 1 Guesstimation 2 Submitted by Group C (Aniruddh.e. Thus every day added in the project during its mid-phase would have added $46. Ankit. which are related to the work in addition to the detailed estimate. Estimates can be prepared and presented broadly under these 4 pillars     General abstract of cost Abstract of cost Analysis of rates Quantity estimates c) Is life-cycle costing a factor on this project? Clearly the cost estimated roughly in the very initial stage of the project showed that the total project cost was a function of time. i. cost of land.333 approximately. Gaurav. Prashanthi. Gururaj. Ramya. viz. this includes the cost estimate of everything required for satisfactory completion of work. engineering fees. jeevan.666. and should be the best and most reliable estimate that can be made. removal costs of owner. labour and supervision.9 Based on the results of the quantity estimate. miscellaneous.. Naman. contingency percentage. etc. Nikita) . Complete Estimate This is an estimated cost of all items. Abhinav. cost of main contract or material. Also a delay in the start or the end would mean that the cost would go up by $33.

He. on his own will. Why. directly invited EID for quotation on the planned expansion. Apart from contacting more contractors he could have also asked to make bids to get the best price. 7. This would have helped me create a better cash flow. Taking the production individuals in the decision making would have been a better option as they had a better idea about the process and they would have given better insights on the plan. An expansion project cash flow can be used for knowing the financial plans of the company. As seen above and estimate can show many details about the project. Such documents can be used by bidding companies to win the tenders by quoting in lines with the document. thus has to be treated with utmost care. Ramya. A copy of the document could have been sealed and kept safely with the CEO also. I would have worked the cash flow document and then consulted with VP's and other top management. This method would have helped them get a better price as the objectives would have been clear. After establishing goals and clearing the plans. Ankit. jeevan. thereby making them feel an integral part of the project and the company.10 d) Cashman kept his cash flow chart a secret. Gaurav. they should have go for bids from different contractors. Submitted by Group C (Aniruddh. Abhinav. away from leakage to bidders. In order to take advantage. To keep the cash flow from leaking to other employees of the company. Also I would have looked into the funds available and prospects of loans in future. Naman. Contracting for Engineering and Construction Services a) What were the contracting alternatives open to Woody’s? Which would have been best and what would that have involved? Moneysworth took a decision of not involving any sort of production people in the decision making process for the expansion plan. b) How should the contract(s) be organized and tendered? The planning should have been done in stages. Thus consulting with the core of the company was important. It should have been opened to the trusted members of the company. He did not take efforts to research on many alternative contractors thereby he limited Woody’s contracting alternatives. Reasons for keeping an estimate secret can be:     To keep the budget cash flow of the company safe. and what would you have done? An estimate is a very confidential document and has to be kept away secretly. Gururaj. Firstly the management comprising of experienced individuals should have internally done activities like brainstorming to generate more ideas. they quoted a high price seeing that Woody might need help in the planning also. If it was up to me to handle this situation. Prashanthi. Nikita) .

jeevan. There was no planning and poor administration. exceeded budget. therefore giving this responsibility to him didn’t looked like a good decision. Abhinav. Gururaj. discontent among employees. d) Were the original Woody 2000 project requirements delivered? I don’t think Woody 2000 project requirements were delivered. Ankit. Dealing with such pressure could also hamper his personal and companies plans. Naman. So. Nikita) . Woody’s had a loss of image and reputation in the market. Gaurav. production delays. Prashanthi. The project witnessed additional loans. I think the responsibility of the project should have been given to a more experienced person who would have known the objective properly and would have given proper insights.11 c) How should they be administered? Moneysworth has never been involved in a project planning in the past. Ramya. Submitted by Group C (Aniruddh.

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