University Project Management: Altex Corporation Case Study Report

This report presents an analysis of a project management case study involving Altex Corporation, a company that develops sophisticated weapons for the US army. The report examines the ethical issues arising from the project, potential consequences for stakeholders, and potential breaches of Project Management Institute (PMI) guidelines. It highlights the significance of a risk management plan and the consequences of its absence, while also discussing the project life cycle and proposing recommendations for resolving ethical dilemmas. The analysis emphasizes the importance of risk assessment, stakeholder consultation, and the integration of risk management processes to ensure project success and ethical conduct, referencing various project management resources to support the analysis.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student:
Name of the University:

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Executive Summary
Altex Corporation is such a company which is involved into business for development of sophisticated
weapons for the US army. The corporation is managed to win the contract from US army. It is optimistic
about the project and management of Altex Corporation is thinking that in order to manage
manufacturing into the new technology, it is prepared to plan and manage the risks into the project
plan. There is a process to analyze the risks into the project which is required input from the final users
for the project. A risk management plan is developed into the project so that the project related costs
are kept under the project control and the project would complete within scheduled time.

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Table of Contents
1.0 Introduction...........................................................................................................................................3
2.0 Analysis of the case study......................................................................................................................3
2.1 Ethical issues......................................................................................................................................3
2.2 Potential consequences to the stakeholders.....................................................................................3
2.3 Potential breaches of Project Management Institute (PMI)..............................................................4
2.4 Potential consequences of implementing project without risk management plan...........................4
2.5 Project life cycle.................................................................................................................................4
2.6 Resolve of ethical dilemma and recommendations...........................................................................4
3.0 Conclusion.............................................................................................................................................5
References...................................................................................................................................................6

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1.0 Introduction
Altex Corporation was a company that was supplying of war related materials to USA army
throughout the World War 2. Altex Corporation wins contract for supplying of missile program such as
research as well as development to army. The proposal is indicated that corporation exceeds
expectations of army while the project sponsor is indicated that the army accepts 60 percent of
completed contract. Altex Corporation executed of contract as they are managing the expectations of
clients. The project sponsor assumed that if huge amount of money is being spent on the project, then
defense department would spend larger amount to implement the project work. There is an ineffective
risk management plan as the project sponsor thought that the plan has time as well as cost constraints
which is not suitable for successful completion of project. The aim of its risk management plan is to
reduce the associated risks.
2.0 Analysis of the case study
2.1 Ethical issues
The risk management plan is not the requirement of this project plan. Altex Corporation thought
that due to lack of technical experts, the risk management plan is considered as unnecessary for the
project. The management of the corporation thought that army would not require meeting with
specifications more than 60-70 percent. The users are not able to understand complexities of advanced
weapon system, therefore providing of risk management plan is worry of the government along with it
would decrease odds to secure the future production contracts (Kerzner & Kerzner, 2017). Throughout
the entire project life, risk is occurred and prepared for risk would be occurred during the stage.
2.2 Potential consequences to the stakeholders
The risk management plan is of poor usage. The subject matter experts, project sponsor as well
as project manager are the key stakeholders should consult when development of risk management is
done to ensure that all the risks are being identified. The customer is expected the contractor to
perform the risk analysis as well as develop of risk management plan as part of their project planning
(Harrison & Lock, 2017). The customers are not forced the contractor for implementing the risk
management plan if it is not written into the contract. The customers are expected that the contractor is
an expert what they require to be done in the project for hiring them to do required jobs.

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2.3 Potential breaches of Project Management Institute (PMI)
Into the PMI, it is matter that the security breaches would be hacked that the confidential
information and defenses would be hacked. The IT is spending increases to the combat security
breaches, and then the project manager is not pulled into the project for better building. The data
storage as well as project files are also complex (Schwalbe, 2015). The project is required storage as well
as organizational information as well as data and there is always a potential for the data to be fallen into
hands of wrong person. PMI is required to work closely with right people into the company to make sure
that the storage of information as well as organizational processes are to be kept secured from the
security breaches.
2.4 Potential consequences of implementing project without risk management plan
Without a risk management plan, the company would cost more money when the risks are not
identified properly, elimination of the risks from the project beginning along with reducing the impacts.
The risks are harmful for the project work as well as reduced the value of the project (Cleden, 2017).
Without a risk management plan, it is not possible to prevent termination of failing of the project. There
are chances of failure if the risks are found at beginning of the project.
2.5 Project life cycle
The army is pleased to see that Altex is provided the risk management plan. There should be
expectation that into the large projects there are something which are not going as per planned. The risk
management plan is prepared to show the army that the project would steer back on the track. It also
shows the army that Altex is taking of bid and they have intention to deliver higher quality of the missile
system (Kendrick, 2015). At the project life cycle point, into the proposal stage or after the contract
award, the risk management plan is performed so that both the parties can come to know about the
potential risks which are done to mitigate those (Marcelino-Sadaba et al., 2014). Risk is occurred
throughout the project lifecycle which is prepared for risks to be occurred during the mentioned stages.
2.6 Resolve of ethical dilemma and recommendations
It is recommended that there is no need of any cost overruns as well as schedule slippage when
it is not allowed. Most of project related decisions are related to both cost as well as schedule (Heagney,
2016). Cost, schedule as well as performance are direct interface with the risk management processes.
The army is not penalized the company for failing to meet with the cost in addition to allow schedule to
slip. The risk management plan should require to be updated as per the project requirements so that all

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the risks are to be identified on time (Fleming & Koppelman, 2018). It is required to uncover the risks as
possible, and various groups of stakeholders are required to that which exercises as it is provided of
varying perspectives. Into the Altex Corporation, one of the perspectives is that the project sponsor
encompasses of huge picture while other perspectives are that the project manager should scope which
includes of research as well as development efforts.
3.0 Conclusion
It is concluded that risk management plan is required in the project as it will enable the project
manager for controlling non-expected situations which may occur throughout the life cycle of the
project and it also benefits to create of contingency plan. It is also analyzed that project planning is
required as good risk management plan as the project manager has some legitimate claims to include
into the project plan. The project sponsor is considered as inclusion of the risk management plan as the
risks within. It is the risk which secures the additional contracts from the army.

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References
Cleden, D. (2017). Managing project uncertainty. Routledge.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management. Project
Management Institute.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
Heagney, J. (2016). Fundamentals of project management. AMACOM Div American Mgmt Assn.
Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your
project. AMACOM Div American Mgmt Assn.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling,
and controlling. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project risk
management methodology for small firms. International journal of project management, 32(2),
327-340.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.