Project Failure Analysis: Custom Ronworking Company's Rony's Project

This report examines the failure of Rony's project undertaken by Custom Ronworking Company, a furniture manufacturer. The project, an expansion of manufacturing space, suffered from significant issues in project management. The report identifies key factors contributing to the failure, including lack of effective management, inadequate planning, poor estimation, communication breakdowns, lack of teamwork, and the absence of project management tools. The analysis highlights the impact of these issues on the project's budget, timeline, and overall success. The report recommends practical solutions, such as implementing project management methodologies like Prince2, and emphasizing the importance of the project management stages including initiation, planning, execution, control, and closing. The report also suggests the use of project quality tools to improve project outcomes. The report concludes by emphasizing the need for improved project management practices to prevent similar failures in future endeavors.

PROJECT
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PROJECT DESCRIPTION.............................................................................................................4
FACTOR’S CONTRIBUTING TO RONY’S PROJECT FAILURE.............................................4
Factors for Failure of Rony’s project...........................................................................................5
RECOMMENDATIONS FOR CURRENT SITUATION AND FUTURE PROJECTS................7
Practical solutions........................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A Project can be defined as a temporary plan for a specific period that has particular
beginning and end time, therefore it posses defined resources and scope. Every project is unique
in its way because they involve specific set of operations to be accomplished in a given time
period (Kerzner & Kerzner, 2017). However, Project management is a bigger term that involves
planning, controlling, staffing, executing so that the defined project can be accomplished on
time. In the current business scenario, it is important for all the small, medium and even bigger
enterprises to have proper project management. In this report, case study of the Custom
Ronworking Company will be taken into consideration. The firm is a small to medium sized and
Custom manufacturer of furniture and cabinets. However, the above mentioned company is
being facing critical problem in their current project due to lack of proper management. This
report will highlight failures of the project and the ways through which company can cope up
with it in future endeavor.
PROJECT DESCRIPTION
Ron Carpenter if the Chairman and Chief Executive Officer of Custom Ronworking
Company. He with his wife Mrs. Emelia Carpenter started their business long back in 1954.
Since then, the company got highly recognized in the furniture market and the way they created
attractive furniture design. They now also produce custom made furniture to order for their
retailers and wholesaler (Fleming & Koppelman, 2016). Further, the company has created a loyal
staff and work force to accomplish their organizational goals. John Carpenter, Son of Ron
Carpenter had also joined their company management as a Director. He has obtained an
Engineering degree form the University of Newcastle. Currently, with John Carpenter’s
insistence, the company is moving into new commercial construction that involves, subcontract
work supplying, new cabinets and furniture and fixtures (Walker, 2015). The company had to
decide whether they wanted a new land for their manufacturing or use their vacant land in their
current property due to lack of manufacturing space. Thus, with lots of hated arguments they
decided to go for their current business site considering the time and energy factors in shifting
process.

Ron carpenter headed the meeting with all the directors and respective people to discuss
on the project. It was agreed that the additional production capacity that will be equivalent to25
% of the existing floor area. Offices of President and Executive Vice President was also to be
renovated.At the meeting the total cost for the project was estimated was $17 million and Ron
also passed this budget considering all the cost will be coming under this budget. The target date
that was decided for the project was 18 months from the day of beginning. The project was
named as Rony’s. Expert Industrial Developer (EID) were working on the project under the
Spencer Moneysworth who was looking after the responsibility of the project.
FACTOR’S CONTRIBUTING TO RONY’S PROJECT FAILURE
Project management is one of the most important part in starting any new project. Thus,
before planning any new project it is mandatory to understand the basic steps to start any new
project. Below mentioned are few points through which proper project planning can be done:
Initiating: This is the first step in order to start to new project. Initiating involves proper
description of the project to the respective people so that they can have an appropriate idea
(Harrison & Lock, 2017). Thus, this involves proper documentation project objectives so that
work can be done accordingly and each person knows what their job is in a defined project.
Thereafter, a project Manager should be appointed to look after all the work and give report to
their respective seniors regarding the project accomplishment.
Planning:Planning is the most important task in any project. It provides proper guidelines so that
the work can be done and managed accordingly. This involves proper documented project plans
and updated regarding the plan as the project progresses. This will help everybody in the project
to understand the progress and issues involved with the project (Mir & Pinnington, 2014).
Executing: Executing involves practical accomplishment of work that has been planned for the
project. In this the project manager uses the planned documents so that they can work
accordingly (Kerzner, 2018). However, it is important to make detailed information of the all the
work that has been executed for the future reference.
Controlling:Controlling involves regular measurement of the project performance so that they
can verified and controlled if required. This will help the manager in optimum and best

utilization of the resources. In addition to it, if any activity is being missed in the project can also
be identified and completed properly.
Closing:As, projects are temporary operations they have to be closed once they are completed.
All administrative and official work has to closed after the project is being completed.
Factors for Failure of Rony’s project
Every project has a starting and ending. Thus, it is important for all the organizations to
understand proper project Management. Taking the case of Rony’s project it can be very well
understood that there was no proper project management for their expansion of manufacturing
space (JOSEPH. PHILLIPS, 2018). Therefore, they lacked the successful completion of their
project. Below are the listed factors that explains the failure of the Rony’s Project:
Lack of effective management: Most important factor that affected the failure of the project
was lack of proper management. Rony’s Project was not doing properly due to inappropriate
management. Spencer Moneysworth being Vice president of Finance and administration was
least bothered with team and was despite interested in showing his own administrative skills. He
did not involve any people form the production department. Infact, he invited developers from
outside to look after and plan the project for them. Thus, this contributed to the failure of project
(Too & Weaver, 2014). The stated issue revealed communication gap in the project as well
which led to ineffective evaluation and planning of project activities thus creating significant
management gap for the project.
Inadequate Defining and planning of Project: There was no proper planning in Rony’s Project.
At the meeting no such points regarding the planning of the project was being discussed nor any
project manager was appointed. No one had an appropriate idea regarding the project and no
guidelines were defined regarding the completion of goal. Thus, the project was a failure.
Poor estimation: Kim Cashman controller of the firm was looking after the cash inflows and
outflows of the project. Initially the budget that was decided for project was $17 million. Spencer
while discussing project with EID increased it to $20 million. Thus, improper budgeting led to
the failure of project (Nicholas & Steyn, 2017). Moreover the project negotiation aspect also
lacked efficiency. The project management team did not include any effective tools to manage
and maintain the project workflow and budget.

Improper Communication: Communication is the most crucial factor in Rony’s Project. There
was no proper communication within the higher and lower staff members. Lots of correction
were made in between the project but were not communicated to the respective people
(Hornstein, 2015). Thus, no member was aware about the changes being made in the project.
Lack of Team work and Goal Setting: In Rony’s project there was no team work. All the people
were doing their task individually and no one was bother to interact with each other to
accomplish the project (Kalyan, et.al., 2016). However, there were no proper goal set for the
project that can be achieved during the right time. Therefore, lack of communication within the
team work and no proper objectives led to failure of the company.
Lack of Project Management Tool: One of the most important project management tool that was
not considered by the firm was project documentation. No details regarding the project were
written anywhere and no sources regarding the information was made available at the time of
measurement. Further, there was no proper performance control that led to delay in the work
with comparison to the defined time period (Leming, 2017).
Thus, these are some of the major factors that hindered the project and contributed in the
failure.
RECOMMENDATIONS FOR CURRENT SITUATION AND FUTURE
PROJECTS
Practical solutions
The project evaluation revealed a significant gap in project management aspect. It created
an insignificant impact on project completion and success. The principles of project management
are cost, budget and time. Rony’s project could not attain any of the above mentioned project
principles which resulted in the stated issue. The stated issue is not new in the field. Projects with
ineffective planning, execution and control fail creating huge impact on the company’s brand
identity and investment. Rony’s project faced similar issue and in order to efficiently overcome
the project failure the company must efficiently understand and implement project management
mythologies and tools.

Applying Prince2 methodology will be effective in creating a significant impact on the
project management and planning. The stated methodology will control the project and the
associated constraint and create a well defined impact on the overall project growth. The
measure will also be an effective means to deliver quality and communication perspective for the
team.
(Source: Lijun, Haoran & Yanhua, 2016)
The stated issue of the project stated that communication, planning and execution gap were the
major issues which led to project failure. In addition lack of effective project management tool
resulted in creating a significant gap between the estimated and actual results hence the
following measure will be effective in creating a well defined impact on project competition.
(Source: Liu & Shi, 2017)

Rony’s project must implement the following stages of project management in order to attain
significant and well defined project results:
 Starting and initiation: This stage focuses on analyzing the project need and demand in
an effective manner and analyzing the basic project outcomes. At this stage Rony’s
project must have developed project documents, team plan, defining and utlining the
business issue and major focus on the expected results (Lou, Xu & Wang, 2017). It will
help the business in generating significant and well defined results for the overall growth
and development of the project.
 Planning and development: The next stage of project management is the one which
involves effective planning and activities. Rony’s project has a significant gap at this
stage of the project. The planning documentation, Risk, quality, communication and
execution planning, activity and budget planning and control and monitoring planning are
the crucial stages of the process (Mir & Pinnington, 2014). The project manager must
have undertaken an effective time and technique to plan and evaluate the resources for
managing the project requirements.
 Stage control and management: The development of different stages of project and
managing those in an effective manner is yet another critical stage of project
management. The analysis of Rony’s project revealed that there was significant lack of
communication and control in the project which resulted in expanding the overall cost of
the project (Mitra, 2016). Also the time of project competition was extended. Hence
creating significant stage of project progress would have helped the team in analyzing
and monitoring the project progress. Also the error detection would have been done at the
early stage which would be resolved efficiently (Moon, S., Zekavat & Bernold 2015).
 Closing: At this stage the project needs must be checked with actual project progress
which would create significant and well defined results for the overall project
competition (Tang, 2016). Managing an check list helps in ensuring to manage the
evidence of project stages, quality and final outcome. This help in developing a well
documented plan to manage and maintain the project progress and competition.
Implementation of project quality tools

Lack of quality and control of the project was yet another issue for the project
management and quality tools leads to significant project issues. Rony’s project failure lays a
clear example of the similar issue. Hence project quality aspect is one major issue for ensuring
success and growth of the project. Implementation of Total quality management technique would
have helped the project in ensuring an effective and well defined growth for the stated project.
The stated tool ensured that every stage of the project is quality ascertained and has minimum
errors. It is also an effective means of analyzing and resolving the project issues at an early stage
so that the cost of rectification and control is minimized thus project schedule is efficiently
managed and maintained (Wang, et.al., 2015).
Implementation of TQM technique would have helped in ensuring an effective and well
defines progress of the project. This technique would have controlled the cost and progress of
every stage in an effective and well defined manner. It is an effective tool to influence and
communication and monitoring as well. Hence the project manager would have created an
effective working aspect in the project progress. The process involves continuous development
as well. This aspect would have ensured that the outdated and in effective processes are replaced
with quality results and cost effective measure. It would have ensured cost, quality and time
issues of the project in an effective manner (Tang, 2016). Hence implementing effective
methodology and tools in the project was an effective and well defined means of project success.
Rony’s project failure was delivered a significant reflection about the same. the stated solution
would have helped the project in managing the resources, time and budget to deliver expected
outcomes.
CONCLUSION
Project management is a bigger term that involves planning, controlling, staffing,
executing so that the defined project can be accomplished on time. In the current business
scenario, it is important for all the small, medium and even bigger enterprises to have proper
project management. In this report, case study of the Custom Ronworking Company will be
taken into consideration. The firm is a small to medium sized and custom manufacturer of
furniture and cabinets. The evaluation revealed that multiple factors resulted in the failure of the
project. The analysis of the overall project helped in identifying that lack of effective project
management methodologies and quality control tools created an insignificant impact on the

project. Effective implementation of the stated techniques thus has been recommended for the
effective results of the project.

REFERENCES
Fleming, Q. W., &Koppelman, J. M. (2016). Earned value project management. Project
Management Institute.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
JOSEPH. PHILLIPS, P. M. P., CBAP, I., & PMP, C. (2018). PMP PROJECT MANAGEMENT
PROFESSIONAL STUDY GUIDE. McGraw-Hill Education.
Kalyan, T. S., Zadeh, P. A., Staub-French, S., & Froese, T. M. (2016). Construction quality
assessment using 3D as-built models generated with Project Tango. Procedia
Engineering, 145, 1416-1423.
Kerzner, H. (2018). Project management best practices: Achieving global excellence. John
Wiley & Sons.
Kerzner, H., &Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Leming, S. (2017). Analysis of High-rise Building Construction Technology and Quality Control
Measures. Journal of World Architecture, 1(3).
Lijun, Y., Haoran, Y., & Yanhua, L. (2016, November). The Research on Method of
Construction Technology of Building Waterproof Engineering Based on the
Experimental Analysis. In Smart City and Systems Engineering (ICSCSE), International
Conference on (pp. 318-320). IEEE.
Liu, J., & Shi, G. (2017). Quality Control of a Complex Lean Construction Project Based on
KanBIM Technology. EURASIA Journal of Mathematics, Science and Technology
Education, 13(8), 5905-5919.

Lou, J., Xu, J., & Wang, K. (2017). Study on Construction Quality Control of Urban Complex
Project Based on BIM. Procedia engineering, 174, 668-676.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Mir, F. A., &Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Mitra, A. (2016). Fundamentals of quality control and improvement. John Wiley & Sons.
Moon, S., Zekavat, P. R., & Bernold, L. E. (2015). Dynamic control of construction supply chain
to improve labor performance. Journal of Construction Engineering and
Management, 141(6), 05015002.
Nicholas, J. M., &Steyn, H. (2017). Project management for engineering, business and
technology. Taylor & Francis.
Tang, Y. (2016). How to do well the construction quality control of highway bridge
project. Urban transportation and construction, 3(1), 8-8.
Too, E. G., & Weaver, P. (2014). The management of project management: A conceptual
framework for project governance. International Journal of Project Management, 32(8),
1382-1394.
Walker, A. (2015). Project management in construction. John Wiley & Sons.
Wang, J., Sun, W., Shou, W., Wang, X., Wu, C., Chong, H. Y., ... & Sun, C. (2015). Integrating
BIM and LiDAR for real-time construction quality control. Journal of Intelligent &
Robotic Systems, 79(3-4), 417-432.