ENGG6830 Case Study: Analysis, Causes & Recommendations Project

This case study report examines the failure of a project undertaken by Ron Carpenter to expand his manufacturing business, Custom Ronworking Company. The analysis identifies several contributing factors, including inadequate manufacturing space, changes in production train specifications, suppli...Read More

ENGG6830 – CASE STUDY REPORT
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Table of Contents
Introduction......................................................................................................................................3
Factors that contributed to Rony’s Project Failure..........................................................................4
Recommendation of practical steps to correct and avoid such failures...........................................7
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction
Project management is considered as most important part of all business enterprise because it
allows organisation to improve its current business performance within competitive marketplace.
For completing successful business project, organisation has to take help of different concepts
and theories which would be discussed in this report. The current report would be based on the
study of case study in which Ron carpenter wants to develop a business project so that he can
expand his manufacturing business. In this report, various management shortcoming would be
discussed which lead Rony’s project to failure. Apart from this, it will include some appropriate
recommendations which will help Rony in overcoming its project shortcoming and also will help
in avoiding such failures in future business projects.
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Factors that contributed to Rony’s Project Failure
The Ron carpenter is chief executive officer of Custom Ronworking Company which is owned
by Mrs Emelia Carpenter. Ron is high skilled cabinet make who started his career in small
furniture manufacturing company which is located in Sydney in NSW. His organisation is highly
popular for its well-constructed furniture and attractive designs (Ahlemann, et. al., 2013). For the
starting of career, Ron has always focused on building loyal and satisfies workforce. John
Carpenter who is son of Ron has recently got engineering degree from the well-recognised
University of Newcastle. After getting the degree, he started working in company’s management.
From the last few years, Ron has developed positive market position in construction industry.
The key people of Custom Ron working Company are Ron carpenter, John Carpenter, Emelia
carpenter and so on.
Moreover, two years ago there was a huge growth opportunity for commercial construction in
NSW because there was possibility of major airport expansion in which Custom Ronworking
Company could expand its manufacturing business. After conducting a board meeting with
director, president and other key people of organisation, Ron decided to start and manage a new
business project but there was a spare land on his property which was creating problem in plant
expansion (Burke, 2013). For expanding the business, the major project concept was that
additional production capacity would be added 25 % which is equal to current floor area. Apart
from this, there was requirement of installation of air-conditioning and dust free paint with extra
compressor capacity. Moreover, there was need of semi-automation woodworking production
train which requires installation and development of hardware and software to run equipment.
After analysis the all required actions it is estimated that company required budget of $17 million
for completing all the desired activities and time period of eighteen months.
While managing business project Rony and his entire team face various factors which influenced
negative impact on its organisational growth, development and most important business project
(Fleming & Koppelman, 2016). The biggest factor which affected the efficiency of
organisational production was spare land and lack of manufacturing space. In simple words,
space where production activities sake place was so much congested which do not allow to
organisation to manufacture furniture in effective as well as systematic manner. Also, it creates
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problem for other departments because production is major activity on which success and failure
of business depend.
Apart from this, in the initial stage of mechanical design the Miles Faster made changes in
production train specification and for that software engineer have to rewrite the software
program which resulted in highly increased debugging at startup. In other words, sudden
changes in software program resulted in debugging which was directly affecting the production
capacity of business enterprise (Flyvbjerg, 2013). With this kind of technical problem,
organisation was not able to expand its business and perform other required activities. Moreover,
major supplier of production train was on vacation which leads to delay of delivery schedule.
This problem resulted in conflict in new services.
Furthermore, the changes which were made in production train specification required addition of
another five feet length new building. The Leadbetter was not fully satisfied with the installation
of mechanical tools for dust free paint shop. Also, he communicated his problem directly with
mechanical contractor namely Amos Dent of Tinknockers Associates instated of Ivar Kontrak
which led to stressed relations on the working site. In simple words, there was lack of
cooperation within team members which also led to project failure (Garel, 2013). Without
cooperating with all team members, no business project can be completed on time and in
effective manner.
Apart from this, the major difficulty which arose with paint shop was to comply with legal
requirements. The local inspection authority asserted that all the surplus paint disposal
arrangements should be managed as per the current environmental standards. Without meeting
legal requirement no business enterprise can complete its business project in effective as well as
successful manner so Rony’s project has to make paint disposal arrangements as per
environmental standards.
After two years when finally project was launched and time for changing plant into production
approached many problems appeared (Heagney, 2016). The Leadbetter and Moneysworth had
not prepared any backup plans for completing such activities like inspection, testing and dry
running. The late delivery of production train led to loss of several weeks of production which
directly affect the sales revenue of business enterprise. At the project controlling stage, it is
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determined that actual cost of project has been exceeded. For smooth functioning of plant
operations, Ron and his project members have to throw money which does not only increase
operational cost but also affected the marketing efforts so that organisation can make its
customer loyal. The efforts which were made by Sharpe resulted in negative marginal effect.
Hence, these were some major factors which resulted in project failure. Apart from this, the
biggest negative impact of such project failure was in production weeks, customer delivery date,
and delivery of production train (Hwang & Ng, 2013). The mismanagement of project activities
also exceeded the overall budget of business project which resulted in lost sales opportunities
and expensive marketing efforts. The current stock of business enterprise was exhausted and all
the construction activities fell dramatically. The major problem with management shortcoming
was that staff members were revealing their faults because they have fear to get blamed.
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Recommendation of practical steps to correct and avoid such failures
Project management is considered as most important aspect which is used by organisation for
starting, planning, performing and controlling the business work. Custom Ronworking Company
is facing various project failures due to management shortcomings which are result of less
cooperation between team members, sudden changes in software program and implication of
local inspection authority (Kerzner & Kerzner, 2017). By taking help of project management
theory Rony’s project can overcome all the management shortcomings in most effective as well
as in systematic manner. As there is no explicit theory of project management but most of the
people use underlying theoretical foundation of project management which can be used in
project management practices.
The underlying theory of project management is divided into theory of management and theory
of project. There are various global trends like accelerated global change and technological
advancements which are taking place in project management and its professionals. The
underlying theory of project management is considered as most effective doctrine of project
management. There are various formulations related to primary characteristics of project
management which helps in making argument that what true doctrine of project management
should be. For solving all the project management shortcomings, Ron and his project members
have to first understand the need of theory.
The project management theory involves different concepts and casual relationships which relate
to project concepts. By taking help of project management theory business enterprise can
manage its operational or production activities in most effective as well as in systematic manner.
The underlying theory of project management reveals that how actions were taken in systematic
manner can contribute to project goals and objectives (Larson & Gray, 2013). According to
underlying theory, there are three possible actions which are designing of system, control of
system and improvement of those systems. By controlling effective systems organisation can
operate its production activities in appropriate manner. The Custom Ronworking Company
wants to manage its project for achieving three goals. First goal is that it wants to get intended
products second it wants to minimise its cost and utilise its resources in effective manner. Third
goal is that it wants to provide better customer satisfaction.
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By taking help of underlying theory of project management, organisation can understand the
current and future behaviour of customer. Apart from this, it helps in building analysing,
controlling and designing tools which can lead business project to high level of success. The
underlying theory, provide direction to company so that it can pinpoint sources of further
progress so that it can manage its project failures and covert the in project success. Based on
underlying project management theory, there are two steps which can be taken by organisation.
First is crystallizing the actions and clear project management principles which relate to specific
part of project management process (Mir & Pinnington, 2014). Second step is to compare the
crystallise actions with the principles of theory and find corresponding action. His theory gives
core attention to the project management process and product which would be produced through
that project. The Custom Ron working Company should focus more on its initiating, planning,
performing, closing and controlling procedures for getting better results.
Basically, there are two types of theories which are theory of project and management. In case of
project failure, Ron and his team ember should focus on theory of management in which all the
project activities would be managed through a systematic process so that there will be no kind of
management shortcoming. Theory of management is divided into three parts which are followed
as under:
(Source: Koskela and Lauri, 2012)
Theory of Planning: This is considered as most important phase of theory of management. The
planning process is structured into facilitating and core procedures. There are ten types of core
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procedures which are resource planning, activity definition, scope definition, scope planning,
activity duration estimation, activity sequencing, schedule development, cost estimating, cost
budgeting and project plan development which can help Custom Ronworking Company in
overcoming its management problems such as exceeding budget, delay in project schedule and
so on. The above-mentioned processes result in effective project plans and execution processes.
The effective project management consists of federal creation, revision and implementation plans
(Parker, et. al., 2015). The theory of management creates casual connection between
management actions and business outcomes. In other words, by managing software programs,
project secludes and project delivery business enterprise can easily expand its manufacturing
business.
Theory of Executing: According to theory of management, before making huge investment or
taking business decision organisation should evaluate that desired business plan is executed in
effective as well as in systematic manner. As per this theory, business enterprise should make
most effective decisions and communicate them to all project members so that they can be
implemented in effective manner. The theory of execution creates connection between plan and
work so that so that organisation can execute business project in effective manner and also can
achieve its desired goals and objectives in appropriate manner.
Theory of Controlling: As per this theory, there are two major procedures which are overall
control change and performance reporting. After executing the plan, organisation should make
necessary changes in project planning process so that it will not face any kind of project failure
in its future. The controlling process takes place when there is any kind of variation between
standard and measured results (Pemsel & Wiewiora, 2013). If there is no proper management
then organisation cannot perform controlling processes.
Proposed solution: There are two types of theory which is theory of management and theory of
project. For the given case scenario, theory of management would best option because it helps in
overcoming all management related shortcoming which influenced huge negative impact on the
business project of Custom Ronworking Company. The theory of management involves three
phases which are planning, executing and controlling processes which do not allow organisation
to face any kind of management shortcoming. The theory of management increases level of
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cooperation and communication within workplace which allow project member to interact with
each other so that there will be no problem regarding mismanagement or less cooperation
(Schwalbe, 2015). This amount of money and required time period will help Custom
Ronworking Company in its post-project appraisal; also, it will help in removing all kind of
project shortcoming.
There are various advantages as well as disadvantages of this proposed solution which follows as
under:
o Advantages: The theory of management will help Ron and his entire team in managing
all project activities in most effective as well as in systematic manner. This also leads to
effective planning, execution and controlling process which minimise the chances of
management shortcoming like delay in production weeks, inventory depleted, lost sales
opportunities, exceeding budget and expensive marketing efforts (Pemsel & Wiewiora,
2013). If all the project activities will be operated as per planning, controlling and
execution process than all the available resources will be utilised in effective manner also
it will increase the level of cooperation within team members.
o Disadvantages: Just like advantages there are certain disadvantages associated with
theory of management. For making changes in current project processes organisation
need to take permission from all team members and their behaviour can be negative
towards new changes. Apart from this, systematic management processes like planning,
controlling and execution require huge amount of capital and lots of time which can
increase the operational cost of Custom Ronworking Company (Schwalbe, 2015). The
biggest negative point of theory of management is that it requires expert people who have
good skills and abilities which expect large pay scale. This can also increase the cost of
Custom Ronworking Company.
Hence, these are some possible advantages as well as disadvantages of theory of management
which should be considered by Custom Ronworking Company while proposing any new changes
to its project plan.
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For better success of business project, Custom Ronworking Company should take help of theory
of management. For adopting this theory organisation is recommended that it should follow
below-mentioned points:
 To hire expert people who can take better decisions in one time
 To provide effective training programs to employees so that they will operate their roles
and responsibilities on given time so that there will be no chance of production delay
 To increase level of cooperation within workplace so that all team members will perform
project activities with mutual understanding
These are some possible recommendations which should be followed by Custom Ronworking
Company to overcome its management shortcomings. For following above-mentioned
recommendation and proposed solution, business enterprise has to invest huge amount of money
which is near around $80000 and also for rearranging and managing all project activities as per
theory of management organisation needs time period of at least one year.
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Conclusion
By evaluating above mentioned discussion, it has been concluded that project management is
most essential function which should be put as first priority of business enterprise. as per given
case scenario, Custom Ronworking Company is facing from various management shortcomings
but by taking help of theory of management and appropriate recommendation it can overcome all
project failures and also can avoid future project failure in effective manner. Apart from this,
cooperation and communication between all project members can also remove some of the
project problems. The theory of management will help Ron and his business members in
appraising business project which has got failed in accomplishing desired goals and objectives.
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References
 Ahlemann, F., El Arbi, F., Kaiser, M. G., & Heck, A. (2013). A process framework for
theoretically grounded prescriptive research in the project management
field. International Journal of Project Management, Vol. 31, No. 1, 43-56.
 Burke, R. (2013). Project management: planning and control techniques. New Jersey,
USA.
 Fleming, Q. W., & Koppelman, J. M. (2016). Earned value project management. Project
Management Institute.
 Flyvbjerg, B. (2013). From Nobel prize to project management: getting risks right. arXiv
preprint arXiv:1302.3642.
 Garel, G. (2013). A history of project management models: From pre-models to the
standard models. International Journal of Project Management, Vol. 31, No. 5, 663-669.
 Heagney, J. (2016). Fundamentals of project management. AMACOM Div American
Mgmt Assn.
 Hwang, B. G., & Ng, W. J. (2013). Project management knowledge and skills for green
construction: Overcoming challenges. International Journal of Project
Management, Vol. 31, No. 2, 272-284.
 Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
 Koskela and Lauri (2012). The underlying theory of project management is obsolete.
[Online] pmi. Available at: https://www.pmi.org/learning/library/underlying-theory-project-
management-obsolete-8971. [Accessed 7th May 2018]
 Larson, E. W., & Gray, C. (2013). Project management: The managerial process with
MS project. McGraw-Hill.
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 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, Vol. 32, No. 2, 202-217.
 Parker, D. W., Parsons, N., & Isharyanto, F. (2015). Inclusion of strategic management
theories to project management. International Journal of Managing Projects in
Business, Vol. 8, No. 3, 552-573.
 Pemsel, S., & Wiewiora, A. (2013). Project management office a knowledge broker in
project-based organisations. International Journal of Project Management, Vol. 31, No.
1, 31-42.
 Schwalbe, K. (2015). Information technology project management. Cengage Learning.
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