Programme Management for SB: Business Case, Scope, Deliverables, Estimating and Scheduling, Risk Management

This report covers the business case and programme management for SB, including determination of programme scope and deliverables, estimating and scheduling, and risk management.

PROJECT AND
PROGRAMME
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
BUSINESS CASE / PROGRAMME MANAGEMENT.................................................................1
Business Case.........................................................................................................................1
PROGRAMME SCOPE AND DELIVERABLES..........................................................................3
Scope and Deliverables of the Programme............................................................................3
Product Development Process................................................................................................4
ESTIMATING AND SCHEDULING.............................................................................................5
Estimating and Scheduling Approaches.................................................................................5
RISK AND ISSUES MANAGEMENT..........................................................................................7
Risk Management...................................................................................................................7
GOVERNANCE AND STAKEHOLDERS....................................................................................8
Programme Structure..............................................................................................................8
Stakeholder Management.......................................................................................................8
PROGRAMME CONTROL............................................................................................................9
Programme Milestones...........................................................................................................9
Programme Control Methods...............................................................................................10
CONTRACTING AND SUPPLIER MANAGEMENT................................................................10
Contractual Issues.................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Programme Management refers to the planning, organising, directing, along with
controlling all the necessary activities that are related towards a particular programme in an
effective and efficient way (Duryan and Smyth, 2019). The necessity of programme management
lies with the aspect that it contributes towards helping the companies in achieving their strategic
vision. Therefore, in this relation, the report below is based on SB, that is headquartered in USA
and is a global technological organisation. The firm is currently developing a strategic vision
with a series of interrelated projects to ensure diversification, increased market share, new
products and reduced operating costs. Therefore, the report would be covering a detailed
business case and programme management, along with determination of programme scope and
deliverables. Furthermore, the assignment will also be including estimating and scheduling of the
overall project. Along with this, the risks and issue management would be an active part of this
assignment, followed by programme management organisation, governance as well as
stakeholder analysis. Additionally, the report would also be covering programme control and
contracting and supplier management.
BUSINESS CASE / PROGRAMME MANAGEMENT
According to the case study given in respect of SB, there are various aspects, issues and
attributes that are required to be considered by the board in context of commencing the overall
strategic vision of the company. Therefore, these aspects and considerations, along with probable
recommendation are presented in the case below.
Business Case
Strategic Objectives
There are a number of strategic objectives in relation with this programme. Some of them
are discussed as under:
 Diversification: The very first strategic objective of the company is diversification. The
reason for the same is that SB traditionally dealt with hardware manufacturing and
recently expanded its portfolio by including Software and Mobile Systems; however, the
capacity of success towards the same is low (Gemünden, Lehner and Kock, 2018).
Therefore, with the strategic change, the firm sights to bring in proper diversification in it
products.
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 Market Share: Another crucial objective of the company is that it wishes to explore
wider market share through acquisitions and expansion of its product and service options.
 New Products: SB, in order to gain competitive advantage is pretty much aligned
towards development of new offerings, which includes integrated hardware and software
product and high value bespoke software products for specialist clients.
 Reduction in Operating Costs: Currently, the firm has been outsourcing most of its
manufacturing operations to Far East due to cheaper labour. However, the company
wishes to further reduce the same by setting up an in-house manufacturing and
outsourcing facility.
Organisational issues
Whilst preparing a business case, it is necessary that board members and senior officials
of the company analyse variety of issues that are currently being prevalent in the firm for which
the strategic change is being enforced. Therefore, these are explored below:
 Weaker Competence: One of the most evident issue as per the case is that currently the
company lack competence towards developing high valued bespoke software products for
specialist organisations. The reason for the same is inexperienced workforce in the field
of software, along with smaller manufacturing capacity.
 Inappropriate Quality: The manufacturing process that the firm has outsourced towards
Far East is seemingly having several quality issues that would ultimately lead to
inappropriate retention of customers within the organisation.
 Poor Management: Another element that is being a major issue for this company is
associated with poor management within the firm which has been reflected within the
project of in-house manufacturing and outsourcing.
Issues related to Manufacturing Location Options
According to the case study, there are certain issues that are underpinning the manufacturing
location options. This is because there are varieties of consideration towards continuing the
manufacturing outsourcing within Far East, potential re-shoring the operations within the US, as
well as setting up the new Centre for Excellence within Western Europe, along with integration
of all software development process along with the product development in Western Europe.
However, there are various issues related to the same which are explored as under: Soft Issues:
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The soft issues within the same include the loss of jobs in Far East if the manufacturing is re-
shored in USA, along with a high level of restructuring and disruptions within the organisational
functioning of the company. Hard Issues:
The hard issues in relation to the location options include potential closure of the existing
manufacturing unit of WN within USA, which would result in a loss of the firm’s reputation in
its home country. Moreover, the existing re-shoring of manufacturing has been ineffective for the
firm in terms of cost.
Performance Criteria
Along with the above considerations, SB must also consider the performance criteria on
the basis of which it would be judging the success of the overall programme. Hence, some of
these criteria are specified below:
 Programme Management in terms of time and deliverables
 Product quality and quantity
 Retention and attraction of employees
 Production Capacity
PROGRAMME SCOPE AND DELIVERABLES
It is essential that the overall scope, as well as deliverables is denoted within a whole
programme which ensure an insight related to its scale of operations, as well as the effective it
would be having on the existing operations and functions of the company (Zwikael and
Meredith, 2018). Therefore, in the above mentioned transformation programme within SB, there
are several key separate projects that are aligned below, along with their link with separate
project and key activities for the Product Development Project.
Scope and Deliverables of the Programme
In order to effectively determine the scope and deliverables of the programme, it is
necessary to identify the associated with projects which contribute towards accomplishing the set
agenda. Hence, below are certain key projects with respect to the company.
 Acquisition of WN:
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The very first deliverable of the whole programme is identified through this project of the
firm which is related to acquiring a Software Development organisation located within Europe.
The scope of the programme through this project enhances to expansion of its product portfolio.
Furthermore, the key deliverables from this project for the programme is the enhanced
manufacturing capacity, along with diversity of the offerings.
 In-House Manufacturing and Outsourcing:
Another big project which would be supporting the transformation is the in-house
manufacturing and outsourcing. This project is associated with re-shoring the manufacturing of
the products within US from the Far East, considering the weaker quality of the offerings of the
existing products. This contributes towards widening the project scope in relation to enhancing
its manufacturing capacity along with product quality by ensuring that its outsourcing-
manufacturing function is within the niche market of the organisation. As for deliverables, it
would be supporting the programme through providing high quality offerings that could be easily
and quickly delivered.
 Setting up New Software Development Centre of Excellence:
This project is one of the most crucial support systems towards the scope, as well as
deliverables of the programme. This is because this project would be contributing within the
company towards building in a high end capacity for the firm to manufacture its new offerings.
Moreover, the scale would be bigger than the company’s existing units, which is yet another
deliverable of this project. In addition, it would be consolidating majority of the operations
within the company that would save the firm a lot of cost.
Product Development Process
The case study explores that the company is willing to explore better horizons, capacities
and skills in regards to development of new software, especially in terms of mobile interface and
specialist bespoke software (Suwal and Singh, 2018). However, it is imperative to understand
several activities involved in this new development process which would allow to understand its
scope, as well as the key deliverables in a better manner:
 Setting up Market Research:
It is first necessary for the company to set up market research in order to identify the product gap
within the market towards which they could develop their software. Moreover, this would also
allow them to find organisations for which the new specialised product is required. In addition to
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this, the step is necessary to identify a range of techniques and resources which are required by
the firm for developing the new offering.
 Team Development:
Another activity which is related to the new product development is the creation of effective
team. This project has a wide scope which makes it very imperative to ensure appropriate
management. Developing a team which would be leading with the product development from
using models and frameworks provided by Tuckman and Belbin would allow them to integrate
their knowledge and capabilities towards essential product development.
 Training:
Currently, the firm lacks the capacity of effective production of software. Hence, it is
necessary that the existing employees of the firm, along with the new ones are provided required
training with respect to development and maintenance of software and hardware products in the
future.
 Acquisition of Technological and Mechanical Supply:
No new technology could be developed with obsolete methods or tools. Therefore it is
mandatory for the company to ensure that high end raw materials are supplied within the
manufacturing unit which enables the capabilities of the company towards software development
(Fangel, 2018).
 Product Development and Testing:
However, the most crucial activity within the company is associated with the actual
development of the software, along with its testing. This would be done through effective
integration of the existing capacity of the organisation with the expertise of WN.
ESTIMATING AND SCHEDULING
It is imperative that the whole programme, along with the attached process are very
accurately scheduled to provide each project with enough time to be planned, executed and
monitored as per the set standard. Therefore, below are various approaches that would be used
for the programme, along with the differences with the same.
Estimating and Scheduling Approaches Bottom Up Approach:
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This approach is associated with development and estimation of the time of the whole project
as a whole. Within this, the tasks which have high scope are divided into detailed ones, and thus,
estimated time to complete these tasks is them calculated based on these tasks. This approach
would be adopted for the new product development process, as there are multiple activities
which could be integrated and further divided into detailed tasks just like seen above in the
product development activities. Moreover, the time could easily be divided through those
activities (Terziev, 2018).
 Top-Down Approach:
Another scheduling and estimating approach that could be used by SB is Top-Down
Approach, which is associated with development of the overview of expected timeline related to
the project, which would be derived through using past experiences or projects. As for the
company, it would be setting up New Software Development Centre for Excellence, which could
use this approach. The reason of using this approach in comparison to the previous one is that the
firm has been actively engaging towards setting up units in the past, which would be allowing
the company to estimate the time related to a bigger expansion like this one.
 Parametric Estimating:
This estimating approach refers to the one in which is related to estimation of the time in
relation with one deliverable, which could then be multiplied by the overall quantity of
deliverables required. It is quite an apt approach towards estimation the time for the In-House
Manufacturing/Outsourcing project. The reason for the same is that the company has to re-shore
its manufacturing units from Far East, which could easily use this method to estimate the time of
all the deliverables, which in this case are manufacturing units, based on the time it took for the
existing ones.
 Three-Point Approach:
Within this approach, there is a room for uncertainties and contingencies which could arise or
cause barriers within the project (Cicmil and Gaggiotti, 2018). Therefore the estimates of time
are divided in three aspects, one which would be associated for the best case, another which will
be related to the worst and the one for most likely outcome. This estimation approach is highly
suitable for the overall programme. It could be backed up by the reason that it would be covering
all the above mentioned projects, along with the likelihood of associated contingencies which
would give an accurate estimation to the organisation in regards to the same.
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RISK AND ISSUES MANAGEMENT
Each project is associated with certain risks which must be taken into account along with
the contingency approaches related to the same. Hence, below is the risk management plan to
ensure mapping and management of risks.
Risk Management
RISKS SEVERITY MITIGATION
APPRACHES
Infrastructural Failures
HIGH
These might lead to accidents
and other major issues within
the company with high level
of contingencies and hence,
the approach of the firm must
be to adhere to the safety
regulations provided by the
sector.
Resistance from Workforce
MEDIUM
In relation to this issue, the
company must ensure that
their feedbacks are acquired
through surveys or
questionnaires, which would
allow gaining their point of
view and making corrective
decisions effectively (Casey
and Pearce, 2018)(Kasemsap,
2018).
Product Development Issues MEDIUM In order to deal with this risk,
the company must use
product testing as an
imperative which could be
done through Automation
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and Artificial Intelligence.
Brand Reputation
LOW
To deal with this risk within
the market, the acquisition of
WN must be made on fair
terms which safeguards
interests of its stakeholders
(Williams, 2020).
Team Relationships
LOW
Proper training,
communication and
integration must be regulated
within the company to ensure
loyalty, commitment and
collectiveness in the works
and efforts of employees.
GOVERNANCE AND STAKEHOLDERS
Programme Structure
It is imperative that a firm and definitive structure is identified in regards to the execution
of the overall programme that is based on good practice to ensure protection of interests of
individuals. Currently, the company is operating on functional basis, which might not be
effective seeing the current results of the company’s offerings and management. Therefore, the
whole programme must adopt Divisional Structure, which would allow the firm to create
divisions that would be undertaking of the whole project as per different areas or geographical
locations (Mavi and Standing, 2018).
Stakeholder Management
Stakeholders are the individuals who are associated with the company and are affected by
every decision and strategy taken by the firm. In relation with SB, there are several stakeholders
which hold different views as per the outsourcing/location proposals, which are required to be
analysed in light to make the right decision in their favour: Chief Financial Officers:
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The view of CFO of the organisation in regards with these proposals is that it might be
beneficial for the firm in terms of product quality, but could be very costly, considering that
several cost advantages were provided by outsourcing to Far East. Moreover, he believes that the
re-shoring to the US would lead to closure of the manufacturing units in the country which might
lead to loss of jobs, as well as is quite harmful for the organisation’s reputation in its home
country (Delphine and et. al., 2019).
 Chief Operating Officer:
As per the viewpoints of the company’s COO, outsourcing is the best way for the
organisation towards improving the product delivery, as well as reduces the cost of
manufacturing. Moreover, he believes that the firm’s management lack crucial commitment
which has caused major issues within the projects earlier.
Therefore, both these individuals have strong opinions on the location issues with the
Manufacturing and outsourcing of the company. Hence, a safe way out for the organisation is to
align its operations with WN’s existing unit in the US also. The benefit which this would allow
the company is to reduce the cost of outsourcing, as well as would be retaining the jobs and
reputation of the organisation in these markets.
PROGRAMME CONTROL
Programme Milestones
For the overall Programme associated with the strategic change within SB, there are
various milestones which are determined below:
 Product Quality:
One of the key milestones of this programme would be the product quality (Geraldi and
Söderlund, 2018). This is because the firm is currently incompetent towards delivering offerings
on time due to its inappropriate contractual terms with DDC. Moreover, its manufacturing
capacity in terms of software development is also weaker due to not having enough expertise.
Therefore, a key milestone in this regard would be related to the improved product quality by the
organisation. This would be determined through assessment of a range of product assessment
reports and requirements within the market. Manufacturing Capacity:
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Another prominent Milestone in regards to the programme is the capacity of manufacturing.
It would be determined through the quantity of the software and hardware products that have
been developed after the programme in a certain time period. Moreover, this is a key milestone
because the overall programme includes expansion of the manufacturing base of the firm through
adopting the strategy of acquisition, which requires this to be a key milestone towards denoting
the success of the strategy.
 Diversification:
This key milestone is associated with the ability of this change programme towards
manufacturing new range of integrated products, along with better and diverse software offerings
with effective mobile user interface. In addition, the key milestone would also be including the
software for specialist organisations. The determination of the key milestone would be dependent
upon the range of product categories which the firm would likely include after the programme.
Programme Control Methods
It is crucial to maintain a proper and effective control within a programme and project in
relation to ensure effectiveness within the outcomes. Hence, below are certain control methods
for the change programme of SB: Benchmarking:
The very first method in relation to his is benchmarking, which refers to setting up different
benchmarks to measure the success o the overall programme (Turner, 2018). For the programme
however, these would be set towards the performance of the resources towards setting up the
unit, timescales, production unit and product categories.
 Key Performance Indicators (KPI):
Another prominent method for controlling the project is KPI, which is related to setting up
indicators towards the effectiveness of the plan which relates with better control of the process in
relation to potential deviations. Hence, for the programme, the indicators would be stakeholders’
reviews, along with the quality of the offerings manufactured, along with the working
environment of the firm.
CONTRACTING AND SUPPLIER MANAGEMENT
In regards with the case study, the organisation is wishing to open a New Software
Development Centre of Excellence, which would allow the company to manufacture its
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hardware and software products under one roof, along with reducing the requirement for the firm
for some other location (Tonchia,, Tonchia and Mahagaonkar, 2018). For this purpose, they are
willing to hire a consultancy to assist them throughout the project. Therefore, stated below are a
range of potential contractual issues in relation with the Centre of Excellence.
Contractual Issues Contracting and Supplier Choice:
Given the experience with DDC, the firm is required to understand the issues involved with
contracting and supplier choice. For instance, an issue which could arise within the same is that
the contractual terms of both the parties might clash, which could lead to losing an appropriate
supplier. Moreover, within the supplier choice, issues could be related to their product quality,
authentication, as well as commitment, which could lead to several consequences in future.
 Dispute Issues:
There are certain issues that could create dispute between the firm and supplier. These could
be the quality of raw material, flexibility, time and price.
 Contractual Mechanisms:
It is imperative that effective contractual mechanism is to be maintained to ensure
safeguarding of the firm against any issues related to the supplier. Therefore, the firm must have
certain clauses which allow them to legally protect themselves in form of deviations from the
supplier’s side on several terms. Moreover, they must also mention clauses in which they would
be forced towards choosing other supplier and ending the contract (Martinsuo and Hoverfält,,
2018).
CONCLUSION
Therefore, the report below concludes that project and programme management for a
business allows them to develop certain strategies and implement their vision in a sequential and
professional manner. Furthermore, there are various issues and challenges which must be
disclosed and analysed to ensure that appropriate transformation could take place by taking
corrective and planned steps. In addition, it is highly imperative to critically evaluate the
estimating issues and approaches which the company is undertaking towards its project to set up
a clear and effective timeline for the same. Moreover, a firm must assess all the possible risks
and must develop contingency approaches towards resolving these issues for smooth working of
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the project. It is also very important that new programmes and projects of the company must be
inclusive of good practice to ensure that their corporate social responsibilities and governance
are being adhered to. Lastly, there must be several control measures for the programme along
with necessary supplier and contractual management to ensure that the plans do not deviate and
the execution takes place in a desired manner.
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REFERENCES
Books and Journals
Casey, D. and Pearce, D. eds., 2018. More Than Management Development: Action Learning at
General Electric Company. Routledge.
Cicmil, S. and Gaggiotti, H., 2018. Responsible forms of project management education:
Theoretical plurality and reflective pedagogies. International Journal of Project
Management. 36(1). pp.208-218.
Delphine, and et. al., 2019. Scaling up to speed up? A critical evaluation of programme
management in Indonesian megaproject development. International Journal of Project
Organisation and Management. 11(3). pp.267-286.
Duryan, M. and Smyth, H., 2019. Service design and knowledge management in the construction
supply chain for an infrastructure programme. Built Environment Project and Asset
Management.
Fangel, M., 2018. Proactive Project Management. Van Haren.
Gemünden, H.G., Lehner, P. and Kock, A., 2018. The project-oriented organization and its
contribution to innovation. International Journal of Project Management. 36(1). pp.147-
160.
Geraldi, J. and Söderlund, J., 2018. Project studies: What it is, where it is going. International
Journal of Project Management. 36(1). pp.55-70.
Kasemsap, K., 2018. The roles of information technology and knowledge management in project
management metrics. In Global Business Expansion: Concepts, Methodologies, Tools,
and Applications (pp. 1191-1221). IGI Global.
Martinsuo, M. and Hoverfält, P., 2018. Change program management: Toward a capability for
managing value-oriented, integrated multi-project change in its context. International
Journal of Project Management. 36(1). pp.134-146.
Mavi, R.K. and Standing, C., 2018. Critical success factors of sustainable project management in
construction: A fuzzy DEMATEL-ANP approach. Journal of cleaner production. 194.
pp.751-765.
Suwal, S. and Singh, V., 2018. Assessing students’ sentiments towards the use of a Building
Information Modelling (BIM) learning platform in a construction project management
course. European Journal of Engineering Education. 43(4). pp.492-506.
Terziev, V., 2018. The active model of a social programme and its strategic advantage. Available
at SSRN 3310532.
Tonchia, S., Tonchia and Mahagaonkar, 2018. Industrial project management. Springer.
Turner, J.R., 2018. The management of the project-based organization: A personal reflection.
Williams, K., 2020. Sustainability Guidance and Appraisal for Project and Programme
Managers.
Zwikael, O. and Meredith, J.R., 2018. Who’s who in the project zoo? The ten core project
roles. International Journal of Operations & Production Management.
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