Analysis of Green Company's Production Project Management Failures

This case study examines the Green Company's project to build a new production plant for recycled structural wood elements. The project faced significant challenges, including a three-month delay and a 60% budget overrun. The analysis focuses on the importance of proper project planning, the development of a well-defined project scope, and the role of feasibility studies. It highlights the failures in scope management, scope change management, and the lack of a robust project plan. The case study emphasizes the need for detailed planning, including milestones, stakeholder management, and risk management. It also discusses scope verification and the necessity of a scope change management system to ensure project success. The paper concludes by evaluating the project management plan and its shortcomings, providing valuable insights for project managers and students in construction and project management.

Construction Management: Case Studies
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Question One
Introduction
The need to have a well thought out and crafted project management plan cannot be
stressed further; the concept appears academic but is very crucial for the successful execution
and completion of any project. The process of project planning and management constitutes
several aspects and stages that must be handled well and professionally, starting with the project
plan, budgeting, and project handover upon completion. It projects, for instance, are rated as
having the highest rates of failure across all industries (Gupta, 2018), and many projects are
generally completed late and over budget, for a variety of reasons. The issue with projects as
compared to normal operational activities is that operational activities are repetitive in nature and
so the processes can be systemized easily, with expected deliverables achieved. Projects, on the
other hand, have start and end dates that are finite, involved mixed teams, are generally unique,
and are therefore, more difficult to develop sound processes and methodologies for; they are also
very difficult to systematize (West, 2018). In this context, this paper discusses the case of the
green Company which was developing a new production plant to be used for the production of
recycled structural wood elements. To undertake the project, Margo International was hired to
supply Polyutherane adhesives as part of the required raw materials for the project. Upon project
completion, the Green Company’s new production line was behind schedule by three months and
had a budget overrun of 60%. After a short discussion, the reasons advanced include the project
not having a fixed schedule for delivery as well as budget, but the scope was not well
understood. This paper discusses why it is important to adequately plan for projects before
undertaking them, coupled with a detailed and well defined project scope. The paper also
discusses how the project scope should have been handled before work started and after
completing the work. Further, the scope change management system is discussed and how it
should have been handled to ensure successful project success. Finally, the paper evaluates if the
project had a well written project plan.
Importance of Proper Project Planning and Scope Statement Development
The reasons why projects such as the green production project fail are many, varied, and
complex; however, getting the project planning phase right before the project commences is one

way to ensure a higher chance of the project being successfully completed within time, scope,
and budget. A lack of planning will guarantee the failure of a project; likewise, poor planning
will result in the project not being delivered as per its objectives and within the triple constraints
of time, scope, and budget. Proper project planning will result in the objectives of the project
being achieved (Pheng, 2018, p. 60). The project plan is akin to the blue print for building a
house; it must be highly detailed and define exactly how the building will look; when this is
followed, the final product will be the envisaged building. All projects have aims and objectives
which must be very well written and defined. Well written project aims and objectives is the
foundation for a successful project (Avison & Torkzadeh, 2009, p. 92). Every project has its
milestones; significant events during the execution of the project. Milestones help in project
progress monitoring and allow deadlines to be reevaluated, as well as the project deliverables
and the scope. A well written project plan must have milestones that give confidence that the
project is on track and within scope (Gollapudi, 2014).
A good project plan with milestones is able to compare the current progress with the
original aims and objectives; it is almost inevitable that a project will experience or need some
changes; a good initial project plan with defined milestones will ensure transition to a new or
adjusted plan and scope is smooth, and not adversely affect the overall project aims and
objectives or go outside the set time and budget (Andersen, 2006). Good project planning
identifies stakeholders, their influence and impact on the project, and helps establish an effective
communication plan to keep them involved and ensure continued support for the project.
Without this, the chances for a project succeeding reduce significantly. Effective project
planning is also important as it creates a contingency plan as well as a risk management plan to
deal with unexpected changes and events (Walker & Shelley, 2008, p. 656). Successful projects
require the project manager and the project team to clearly understand exactly what needs to be
done so the project objectives are achieved; with a clear understanding of what needs to be done,
it is easier to map out (plan) how to get there. A project must always stay on track and the easiest
way to ensure this is through a detailed and well defined scope for the project. The initial phase
of planning a project entails developing the scope and involves drawing a list of all things
required to create the project framework. The project framework usually includes project goals,
features, deliverables, tasks, functions, costs, and deadlines. Clearly, in the Green Company
production line project, the important aspects of costs, deadlines, functions, features, and tasks

were not clearly defined. The scope of a project defines the project objectives, the expected
outcomes, any limitations, assumptions, and dependencies; these are crucial for successful
execution of projects.
After defining the scope, it must be managed effectively, with tight controls on how
changes can be made to the project scope. The proper management of a project scope ensures an
accurate definition of the project scope and its proper mapping; this makes it possible for the
project manager to allocate the requisite resources (labor, costs) to successfully complete the
project. This ensures resources are allocated to what forms part of the project scope as originally
defined during the initial planning phase. Effective management of a project scope entails
planning to capture and define the work that has to be done, controlling which is a crucial step in
managing the project scope as it focuses on handling scope creep, documentation, tracking and
approvals/ disapprovals of changes; and closing, which entails auditing the deliverables for the
project and assessing the original plan outcomes. The scope statement is a document that outlines
and defines the project goals, outcomes, deadlines, and relationships that shape its delivery. The
scope should have specific elements that include the business case, a description of the project,
and criteria for success, limitations, and assumptions. In the Green Company project, the project
was not clearly described, and too many assumptions were made with success criteria not being
clearly defined. Inevitably, the project failed because planning and scope management were not
done as well as should have been done. The preceding discussions highlight the importance of
proper project planning and scope management practices to successfully complete projects.
Feasibility Study and the Green Company Project
A feasibility study is an assessment of a proposed method, plan, or activity; the Green
Company had a proposal to build a new production plant for manufacturing recycled structural
wood elements and this required the plan to be objectively and exhaustively assessed. When
industrial and engineering firms contemplate an expansion or a new project (like the Green
Company did), several questions always come to the fore. Can profitability be achieved under
various sets of circumstances? Is a certain configuration practical for meeting a series of end
goals? Will there be interferences that can lead to drastic changes? These questions and issues
are inevitable in such projects, from the upstream to the downstream, and as such, feasibility
studies (Front End Loading –FEL) must be performed. All projects and undertakings are subject

to risks; a feasibility study is an important tool for the effective management of risks. The
feasibility study influences decisions organizations make with regard to if and how a project
should be executed. The feasibility studies are a stepping stone towards project optimization
once the project commences. Feasibility studies that are timely and accurate are essent5ial
components of the overall project planning and risk management strategies for the project.
Feasibility studies assess and appraise several alternative methods and processes as well
as designs for executing the project. After evaluates several approaches, the best and most
promising approach is selected. For instance, the Green Company project could have been done
in phases, considering that the exact date when production should commence was not well
known or defined. As such, this is a project that required an extensive and detailed feasibility
study, starting from evaluating alternative processes on how to increase production to design of
the new production system and planning for the deliveries of the raw materials to plan effectively
and manage the project scope. According to Turnstall (2016, p. 38), A feasibility study is used in
determining the viability of an idea, such as making sure the project is feasible from a technical
and even a legal point of view. Further, the feasibility study shows whether a project is a worthy
investment and if there are alternatives on how it can be executed and the same objectives met at
the lowest cost (Munsaka, 2013, p. 5). In conclusion, the Green Company project to build a new
production plant could have greatly benefited from a feasibility study, and in general feasibility
studies are good for such projects.
Scope Verification
Most project managers and staff clearly understand the concept of the work breakdown
structure (WBS); it is among the tools that seem readily embraced and accepted by project
management professionals regardless of the industry, location, or even their experience.
However, there is a scope management step that can result in an effective WBS that ensures
project objectives are met and ensure better control of the project scope is usually ignored, or not
used; scope verification (Dorcas, 2013, p. 110). Scope verification is the process by which the
acceptance process for a project scope by stakeholders is formalized. It requires that work
products as well as results are reviewed to make sure that all were correctly completed and in a
manner that is satisfactory. Scope verification is done after the project is complete and should
have been done in the Green Project project. However, because sometimes the scope can be

developed too fast at the beginning of the project, it still needs to be verified to ensure the tasks
and schedule are in accordance with the project objectives (Jordan, 2012). The verification at the
start should have ensured that all items in the scope management are included within the WBS
and cross checked to ensure that all items in the WBS are in the scope statement. This should
take a longer time and process if necessary too ensure the scope is effective managed (Schwalbe,
2008, p. 110).
Scope Change Management
Managing scope change is a necessary and essential part of any project; it is almost
inevitable that all projects will need some form of scope change r management. Scope is one of
the main constraints in a project (the other two being time and budget). Scope creep, lack of a
define change control mechanism, and a poor project management structure are some of the
reasons why projects fail, according to Millhollan (2018). The Green Company should have had
a scope change and control document defining the procedure for making scope changes and
should have had the change requests officially made by the project manager, proper reasons
given with evidence, and addressed to the executive sponsor or project owner to approve. The
document would then be signed and filed, with its version stated and dates of change reflected.
This way, the liabilities of Margo would have been limited and the project objectives would still
have been met. The scope changes made then form part of the min scope statement document
(Litten, 2009).
Project Management
In my opinion, the project management plan used in the Green Company new production
line project was not managed properly, or in accordance with project management guidelines as
stipulated by PMBOK, PRINCE 2, or the PMI (‘CIO,’ 2018; Monnappa, 2018). For starters,
there was poor communication between the project team and the main stakeholders. Second, the
scope statement and scope control plan was either missing or very poorly done. Third, the project
schedule and WBS, even if it was prepared, was not effectively and professionally managed.
Four, the project was not executed according to the WBS and using tools such as Gantt. Five, the
project lacked a monitoring and evaluation plan because this would have identified problems
with the project schedule, scope, and plan. The project did also not address risks or manage the

triple constraints of time, scope, and budget effectively. Further, the budgeting was not done
properly, neither did the planning for human resource management; all these are key project
management knowledge ares that the project did poorly or did not adhere to
Question Two
Case Studies
Case Study 1: Renovation and Expansion of Farmers Dairy Processing Unit, Waikato
Project Knowledge Area: Scope Management
Introduction
Scope management refers to the process managing the tasks to be completed and
deliverables in a project; scope pertains to product scope and project scope. Scope entails getting
the required information to start a project and product features that would meet the needs of the
stakeholders. In this project, the scope was to renovate the building housing the colling tanks
because it was worn out, having been built 40 years back. The tasks entailed bringing down the
structure and building a bigger and taller building with modern micro climate control features, as
well as modern materials to stop mold growth on walls and accommodate bigger tanks. The
building was situated adjacent to the milk receiving area and access was difficult
Narrative
The project should have taken eight weeks, but in the second week, the contractor
realized that part of the receiving area had to be brought down to allow access to a section of the
colling area that was to be renovated. The contractor went ahead and notified the project
manager (myself) and while I acknowledged it, I told the contractor to wait for a status meeting
as the executive sponsor (owner) would be away for four days and he needed to get it approved.
Fearing falling behind schedule, the subcontractor doing demolitions went ahead and demolished
part of the receiving area, causing the project to go three weeks above deadline and 14% above
budget. While it was necessary to demolish part of the receiving area, I was unhappy that it was
done outside the proper channel and it caused a lot of friction

Seed Questions
1. Who should approve scope changes?
2. What happens when there is an unexpected occurrence that was overlooked that
necessitates a significant scope change?
3. Should more planning have been used to ensure all kinds of tasks and the scope
completely covered?
4. While it was necessary to demolish part of the receiving area, it was done before
approval, who should bear liability?
Solution
According to the PMI, the scope management is a process that has four steps; these
include scope planning, scope definition, creating a WBS, scope verification, and scope control
(Sokowski, 2015, p. 11). In this case, the scope was not verified and scope control was done
effectively as required; the scope should change should e approved using the scope management
plan and document so that other constraints are not adversely affected.
Case Study 2: Procurement of Computers for a Vocational Training College in
Christchurch
Project Knowledge Area: Cost Management
Introduction
Cost management refers to the process of estimating costs, budgeting for costs, and
controlling costs. The project entailed supplying 100 computers (desktops), 20 laptops, and two
servers, along with four network printers to the institution. Because the funding came from the
local council and the job had to be completed on time to receive new students, it was decided
that the previous supplier be used. The budgeting was then done based on previous costs (used
about four months ago) to create and approve the budget. However, the supplier said the costs for

some items ha gone up due to foreign exchange currency fluctuations and a review showed that it
would exceed the budget by 21%.
Narrative
While undertaking the project, an assumption was made that the previous supplier would
supply goods at the same price he had supplied it the last time. However, on closer scrutiny of
the previous supply, one condition was that the prices as quoted were only valid for three
months. Because students would be arriving in two weeks, the computers had to be supplied
either way. The time needed to approve the increased budget would have taken two weeks,
meaning the computers would arrive late. At the end, the sponsors agreed to cut down the
number of computers and at least get 70% of the students that were to arrive in two weeks to use
the computers covered as the extra budget approval process was going on.
Seed Questions
1. What should be the procedure for budgeting?
2. What should have been done in this case?
3. Was it right to reduce the number of computers required to await a budget approval?
4. Was the recommended approach used in developing the budget
Solution
The budgeting process was done based on an assumption and without verification of
facts. While the time period was too short for a fresh tender, the college had several listed
suppliers that would have been asked, including the previous supplier, to submit bids for the
supply and installation. This should have taken them a short time and a competitive price
obtained and used as the basis for developing the budget. The recommended process for cost
management entails cost estimation, cost budgeting, and cost control (Heldman, Feddersen, &
Mangano, 2016, p. 371). The cost estimation was done improperly. It was right to reduce the
number of computers; this was done through the scope change process and it ensured the
objectives would still be met. Further, seeking approvals for extra budgetary allocation was in
line with cost management practices.

Case Study 3: Repairing a Road Connecting an Estate Development to the Highway in
Auckland
Project Knowledge Area: Communications Management
Introduction
An estate developer wanted a 4 km road leading to it improved to take more traffic and
be market at a budget of $ 200000. The project was to take four months in time for the official
opening of the estate comprising 200 housing units and handover to some owners. However,
there was bad weather that stopped work for two weeks, causing the project to be completed late
by a month and requiring reworks, with the budget overrun by $ 72000.
Narrative
The contractor went to site as planned and the budgeting process had been exhaustively
done. The contractor was well experienced and was sure to deliver on time and within budget,
which had a10% contingency. I worked in this project as an intern in project management.
Because of unexpected heavy rains, work had to be stopped. The project manager sent the owner
an e-mail; however, the e-mail was never received until a week after it was sent; during this time,
the owner assumed work was going on as expected. Scope changes required a face to face
meeting with the owners and a memo in writing (hard copy) presented for discussion
Seed Questions
1. How should such an issue have been communicated effectively?
2. Was the project risk management plan ineffective in foreseeing adverse weather?
3. Who was at fault?
4. What should have been done instead?
Solution
According to project management knowledge area of communications management, the
process should have been defined and followed (Heldman, 2015, p. 54). There should have been

a communications plan (which was there), information distribution (that failed), performance
reporting (also failed), and management of stakeholders (also failed). The project manager
should have followed the communications plan and ensured there was a face to face meeting and
an accompanying memo to obtain a schedule change approval.

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