BUS353e Project Management Project

This document presents a solved project management case study (BUS353e) focusing on the HPSS project. The analysis covers various aspects of project management, including objectives, priorities, schedule changes, cost overruns, and lessons learned. The report details the challenges faced, such as changes in technical specifications, delays due to technician unavailability, and currency fluctuations impacting costs. Despite these challenges, the project was completed on schedule, highlighting the importance of proactive management and contingency planning. The analysis also includes a discussion of the Cost Performance Index (CPI) and its application in evaluating project performance. The case study concludes with suggestions for future projects, emphasizing the need for thorough planning, risk assessment, and clear communication to mitigate potential issues.

BUS353e
Project Management
(Section B)
Name of the University
Student’s PI
Student’s Name
Submission Date:

BUS353e Project Management Section B
Table of Contents
Section B.............................................................................................................................................................2
Solution 1........................................................................................................................................................3
Solution 2........................................................................................................................................................3
Solution 3........................................................................................................................................................4
Solution 4........................................................................................................................................................4
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BUS353e Project Management Section B
Section B
Question 1. What are the objectives and priorities of the project, and are they met?
Solution 1.
Objectives of the HPSS Project:
The main objective of the project is to maintain high standard of entertainment by
providing best quality sound effect in the stadium. The main motto of NCP is to provide a
cluster of entertainment events for all groups of people. So with this objective the project
HPSS Project is conceptualized.
Priority of the HPSS Project:
During last function happened at the stadium, the quality of sound system was very
badly criticized by the singer. So NCP decided to upgrade it with the world’s best sound
technology of TLab, USA. But the next function of singer George Jackson, is scheduled for
November, but his representative will visit the stadium on 5 October 2017 & if they liked the
sound system, only then the function shall be organized. So in this project the project finish
date set by CEO of NCP is the only priority of HPSS project to regain their position in the
field of entertainment.
The objective and priority of the project HPSS is definitely met and the project got completed
within the scheduled time, but there was an increase in scope in between the project life cycle
and because of which the cost overrun happened.
Question 2. Were there changes in schedule and what are the contributing events?
Solution 2.
Maintaining the schedule completion date became the real challenge during the execution and
monitoring phase. Lot of changes need to be done to keep the schedule on track and
completion of commissioning activity by 4 October 2017. The baseline schedule got disturbed
due to various environmental reasons. The main contributing events for the change in
schedule dates are:
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BUS353e Project Management Section B
Change in technical specification and design of the speakers has raised the number of
speaker requirement in the stadium to meet the sound quality standard.
Non-availability of cable laying technicians in between the project phase has caused
delay of the activity ‘cable laying’ by 2 days which was good enough to make the
schedule delay, but the subsequent successor activity ‘Customize system for NSC’ was
shortened and the delivery date could be met.
Question 3. Was there a cost overrun and what were the contributors for the cost overruns if any?
Solution 3.
To maintain the scope change quantity and absorb the additional requirement, the schedule
was kept intact and as we cannot keep triple constraints constant if one of them changes, so
the cost overrun had to be happened. The project baseline budget was S$ 290,000 but with a
variance of S$ 25,750 it stood at S$ 315,750. There are many contributing factors for the cost
overrun:
The change in overall scope has changed the cost baseline, and additional S$ 5,500
was required for the extra material and manpower charges.
The purchase order for the sound equipment is placed in US Dollar currency, so due to
escalation of USD, the extra 5% over and above additional S$ 15,000 was required to
be paid
Question 4. Lessons learnt and suggestions for future project
Solution 4.
As we all learn from the mistakes, so the lessons learnt is the stage we need to document the
mistakes so that the same can be improved wile executing the next project. Few lessons learnt
which can be utilized for future projects are:
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BUS353e Project Management Section B
The technical specification and the design scope should be finalized since the
beginning of the project itself and in future such thing shall be kept in mind before
finalizing the schedule and cost of the project
The purchase order agreement should always be done in local currency only, as much
as possible, to avoid the extra risk of cost escalation due to fluctuation of currency in
international market.
The possible threats must be always identified and evaluated before the start of the
project to develop a response plan
------------------------------------ Required by Client --------------------------------------------------------
Question 5. Explain what the TCPI means?
Solution 5.
CPI is the cost performance index; it is a tool which provides the efficiency factor of cost at
particular data date or point of reference. In case of HPSS project, the CPI is calculated one
day after the completion of the project to calculate the cost overrun happened during the
project. The overall CPI of the project is called as TCPI.
It can be derived at any moment of the project between start to finish knowing the future of
the cost overrun, that whether cost is going to be below budget or above budget.
CPI is calculated by dividing the EV and AC
Good Project (no cost overrun) = CPI more than 1
Bad project (cost overrun) = CPI less than 1
By using CPI, we can calculate the projected estimated cost to complete by simply dividing
the Budgeted amount by CPI.
Question 6. What i can say over all about the project?
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BUS353e Project Management Section B
Solution 6.
The main objective of the project was to develop a world class sound system in stadium. Then
the performance of famous singer George Jackson got scheduled in November, for which the
manager was about to visit on 5 October 2017 to inspect the condition of sound quality and if he gets
satisfied then only the function shall happen in November.
So the CEO of NCP has set one day before his visit as the deadline for the project. But since
then many changes had to be made in the schedule to accommodate many factors like increase in
scope of speaker as per changed technical specification, non-availability of cable laying technicians in
between the project phase etc. Anyhow the schedule of HPSS was not allowed to go beyond 3
October 2017, but huge cost overrun occurred due to the change in scope and fluctuation in
international currency rate of USD and extra S$ 25,750 had to be incurred.
But even after having all such hurdles, the project could be completed within the schedule and
quality standards as set by Thunder Lab and could successfully commission the project on 2 October
2017.
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