Evaluating Tron AG's Performance in Outsourcing Roller Coaster Safety Project

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The Roller Coaster Safety (RCS) Project is a major initiative aimed at ensuring the safety of the Sky Rock roller coaster, which was recently relaunched after an accident occurred during its initial launch. The project involves outsourcing works to Tron AG and requires careful planning and management to meet its objectives. To achieve this, the team must adopt best practices in outsourcing project work, manage resources and costs effectively, and track project progress and performance regularly.

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Course Module: Project Management
SECTION A
PROJECT CASE: ROLLER COASTER SAFETY PROJECT
Background
Super Wonderland (SWL) Pte Ltd in Singapore belongs to the USA’s Wonder Group (WG), one of the
world’s largest entertainment companies with businesses in movies, theme parks and resorts. SWL
operates a theme park on Coney Island. It aims to provide a full range of fun family activities for
visitors to enjoy. Its motto is “We make your day Super Wonderful!” SWL has been successful in
bringing many innovative entertainments and theme rides to Singapore, which attracted locals and
tourists from the region.
Recently, roller coaster safety has been an issue for several theme parks.
(Ref: Riders rescued from Universal Studios' Battlestar Galactica ride after it stops due to 'technical
error' http://www.straitstimes.com/singapore/riders-rescued-from-universal-studios-battlestar-
galactica-ride-after-it-stops-due-to)
Hence, the Government Safety Regulation Board (SRB) has tighten the regulations and ordered a re-
examination of all the roller coasters in the country. One of SWL’s main attractions, Sky Rock Roller
Coaster, was found to have potential faults. It was ordered to stop for operations until the faults
have been rectified. It is imperative for SWL to solve the problems completely to ensure public that
is a safe for enjoyment. The management decided to embark on this project called the Roller Coaster
Safety (RCS) Project.

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Section 1: Defining the Project
The CEO, Jack Ng, has appointed the following staff to form a project team for the RCS Project:
1. Yourself, a Senior Executive who is appointed as the Project Manager. You have managed a
few projects successfully in SWL. The management trusts that your resourcefulness and
tenacity will help in this important project.
2. Mr. Hashim, a Senior Engineer from the Ride Operations: He has knowledge in roller coaster
operations. His scope of work includes supervising subcontractors to install and test the
roller coaster system.
3. 3. Mr. Lim KK: Facility Manager: He is in charge of the theme park infrastructure and facilities
other than ride and roller coaster systems.
The Sky Rock Roller Coaster was implemented seven years ago by Wagon Pty, which is now defunct.
To rectify the problems, SWL will have to seek consultancy from Tron AG from Germany, a major
theme ride supplier to the WG Group. The reinforcement of the Sky Rock’s structure will also be
subcontracted to Tron AG, supervised by Hashim.
The CEO briefed you on the management’s expectations: The project shall start on 1 September
2016. All the SRB’s new safety requirements must be fully complied. Although SRB set a deadline for
the roller coaster to be certified and relaunch by 30 Dec 2016, the management wish this can be
done by 22 Dec 2016, as prolonged closure will leave public a bad image of SWL. Exact budget has
yet to be worked out. Finance is tight, but if the project team can justify essential expenses,
management will try to accommodate.
Question 1
a) Based on the CEO’s direction, you are to appraise the priority of the project by constructing a
project priority matrix.
b) Appraise four (4) relevant conditions in deciding to use the Top-down or Bottom-up Estimate
approach for estimating the project cost. For each condition, explain the preferred approach and
whether the approach is suitable to SWL for RCS Project. Recommend the overall best approach
and explain one estimation cost method to SWL.
You shall answer in this format:
For condition on ________, *Top-down/Bottom-up Estimate is preferred because
____________________. This *is/is not the case for RCS Project as ____________________.
Hence SWL shall use *Top-down/Bottom-up Estimate under this condition.
Overall, I recommend SWL to adopt the _____________ approach. The method of estimation
will be ___________. [Briefly explain the method]
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Section 2: Managing the Project Team
Question 2
SWL will contract the consultancy to Tron AG. The reinforcement of the Sky Rock’s structure will also
be outsourced to Tron AG implementation team, supervised by the project member, Hashim. Tron
AG’s performance will have a major impact on the success of the RCS Project.
a) Examine two (2) advantages of outsourcing the works mentioned above to Tron AG.
b) Analyse and discuss how you can adopt three (3) relevant best practices in outsourcing project
work to manage Tron AG.
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Section 3: Scheduling Resources and Costs
You conducted a pre project discussion with Hashim and Lim. The team worked out the project
activities and preliminary details as shown in Table 1. Furthermore, using the Budget Estimate
approach and method you recommended in Q1(b), the budget shown in Table 2 is granted by SWL
management.
Table 1: Activities List for Roller Coaster Safety Project
Table 2 – Budgeted Cost

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Note on using MS Project 2010/2013 for Questions 3 & 4:
Microsoft Project 2010/2013 need to be use to plan and track the RCS Project in Question 3 & 4.
Take note of the following and carry out the steps.
1. The above schedule and costing are based on a 5-day work-week. Each day has 8 working hours.
No work will be performed on Saturday, Sunday and Public Holidays unless stated otherwise. Do
not change any durations, predecessor relationships or the resources assignments.
2. The Public Holidays which may fall into the project period and are to be marked as Non-Working
Day are: Hari Raya Haji on 12 Sep 2016, Deepavali on 29 Oct 2016, Christmas on 25 Dec 2016
and New Year on 1 Jan 2017. If a Public Holiday falls on Sunday, the next day (Monday) will be a
holiday-in-lieu. However, there will be no holiday-in-lieu for Public Holiday on Saturday.
To set Non-working day, click Project->Change Working Time. In the pop up window, enter the
holiday into the table, click Details, and then click Nonworking).
3. Enter the Task Name, Duration, Predecessors and Resource Names into the respective columns
in MS Project. Do not change the order of the activities (you are not required to list according to
WBS).
Set Activity 1 as the Higher Level Activity. Right indent all other activities below to second level.
Click Project -> Project Information -> Set Start Date as 1 Sep 2016. Then Right click on Activity 1
to access its Information. Set its Deadline under Advance Tab as 22 Dec 2016
4. Enter the costs and accrual methods shown in Table 2 into Fixed Cost cells in the MS Project Cost
Table (View-> Table -> Cost to access Cost Table).
5. Diagrams, charts, tables, graphs and relevant project outputs may be shown as images in
answers to Questions 3 & 4. These must be appropriately cropped and presented so that they
are legible and can be viewed clearly and legibly. The answers shall not refer the examiner to
open and view contents of any inserted files. Such reports will appear unprofessional and deem
to have not answered with 0 mark awarded on the related questions.
Question 3
a) Prepare and present in a single diagram, the Gantt Chart view of MS Project with columns shown
for Information, Task Name, Duration, Start Date, Finish Date, Predecessors and Resource
Names. State the project completion date and any resource conflicts observed.
b) Due to the specialised skills required, tight project schedule and full dedication of the team
required in this project, resource conflicts cannot be solved by transferring the task to other
people, multi-tasking or adding in more manpower. Hence they can only be resolved through
resource leveling.
You are mindful of the management’s wish to minimise the project duration. Hence you must
first perform a resource levelling within the schedule. Carry out the following steps:
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Click Resource-> Leveling Option -> check the button Level, enter the dates: From 1/9/2016; to
22/12/2016, then check the box: Level only within available slack. Finally click Level All.
Evaluate and discuss the changes and any effect due to this resource leveling operation.
Determine any impact to the project completion date (i.e. Finish Date of Activity 1).
c) You are also aware of the need to fully meet the new safety requirements, and hence no
reduction of work scope is allowed. For any resource conflict that cannot be solved within the
original schedule, perform a resource levelling beyond the deadline. (Carry out the same steps in
Q2(b), except uncheck the box: Level only within available slack).
Discuss the changes and any effect due to this resource leveling operation. State what you
observe on MS Project and any new project completion date.
Section 4: Baselining and Tracking Project
The CEO approves the new completion date evaluated in Q3(c). You must change the deadline for
Activity 1 to the new completion date.
Set the Status Date (Project -> Status Date) as 1 Sep 2016. Save the updated MS Project as Baseline
Plan (Project -> Save Baseline -> check Entire project), which will be used to evaluate the project
performance at a later stage.
Question 4
The project progresses on. Several issues occurred during the implementation period:
1. Due to the appreciation of the Japanese Yen, the motor cost (Activity 4) increased by 5%.
2. The entrance to the worksite (Activity 6) was found to be too small. Enlargement has to be made
with additional cost of $4000. Luckily this does not affect the schedule.
3. You negotiated with Tron AG (Activity 3). They agreed to give a 10% discount on the consultancy
fee.
a) Modify the Fixed Cost cells in the Cost Table to incorporate the above changes.
i. There is an addition change: Due to additional customisation, upgrade of motor (Activity
9) needs five (5) more days. The subcontractor agreed to work with Hashim over
weekends when absolutely necessary at the cost of $1000 per Saturday, Sunday or
Public Holiday, and $500 per weekday. Noted the deadline set by the Safety Regulation
Board, evaluate the number of Saturday, Sunday and or Public Holiday, and additional
weekdays that Activity 9 has to be carried out with minimum additional cost. Explain
your approach and state these additional working days and the additional cost. Add the
cost and days to Activity 9.
Note: In order not to affect other activities’ schedule, you have to modify only Hashim
working day for the weekends.
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Do this by:
View->More View->Resource Sheet -> Right Click on row Hashim->Information->Change
Working Time. In the table, enter the weekend dates, then click Details, then click
Working Times, click both the morning and afternoon.
To move the project forward, the CEO approved all the changes. The project progresses and it was
re-launched on the date in your final plan.
Set the Status Date to the next working day after the roller coaster launch date. Update the project
(Project -> Update Project -> Entire Project).
ii. Present in a single diagram the Tracking Gantt Chart view of MS Project with columns
shown for Task Name, Duration, Start Date and Finish Date. State the completion date.
iii. State the Cost Performance Index (CPI) formula, and evaluate the CPI. Present a MS
Project cost report or table with CPI to verify the correctness of your calculation. Analyse
and interpret the CPI.
b) Propose three (3) actions that could have been done earlier to prevent the issues in Question
4(a) from happening or mitigate their impacts.
SECTION B
The Senior Management of SWL asked for a presentation one week after the Sky Rock roller coaster
relaunch. You’re to prepare a set of PowerPoint presentation that should address the following
issues:
1. What are the objectives and priorities of the project, and are they met?
2. Were there changes in schedule and what are the contributing events?
3. Was there a cost overrun and what were the contributors for the cost overruns if any?
4. Lessons learnt and suggestions for future project.
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