Project Management Friendly Assisted Living Facility Case 7 Questions


Question Description

1. Page 263-265, Case, Friendly Assisted Living Facility Case 7

Answer Questions 1-5, Place use pdf format,

2. Page 266-267, Case, Peak Lighting, Inc.

Answer Questions 1-4, Place use pdf format,

3. Page 284-287, Case, Friendly Assisted Living Facility Case 8

Answer Questions 1-5, Place use pdf format,

4. Page 288-289, Ivory Tower System

Answer Questions 1-3, Place use pdf format,

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2 63 C AS E C A Friendly Assisted Living Facility Case—7 It is now just 4 months until the Assisted Living Facility program is scheduled to be completed. The team is excited because they can watch the construction of the facility and feel they are moving toward the end of this program. Every week since construction began, the construction project manager, Kyle Nanno, has been holding a meeting of his project team. At the meetings he invites representatives of the construction company, the facilities manager from Friendly Medical Center, the Director of Security, and other key people as he deems necessary. The meetings are scheduled every Friday at 1:00 pm and last not more than 1 hour. No matter who is or is not there, Kyle starts the meetings exactly at 1:00 pm. Kyle developed the following standing agenda: 1. 2. 3. 4. Review schedule and budget as of today’s date Review schedule and budget for next 2 weeks Issues impacting schedule or budget Next steps and action items to be completed The construction project update presented at the April 11, 20X1 meeting is shown on the next page. After each meeting the construction project manager emails the minutes of the meeting and the action item list generated to each member of the Construction Project team. He also sends the information to Fred Splient, the president of Friendly Medical Center, as well as to each member of the ALF Project Steering Team. Following the update is the most recent copy of the action items generated at the 4/11/X8 construction project meeting. Upon reading the minutes and action items from the week’s meeting, Fred got quite angry. Fred read the minutes every week and would immediately phone Kyle to ask why certain decisions still had not been made. This week he wanted to know why the location of the security panel had not been picked out yet, and what the hair salon issue was about. Kyle decided that these matters would be better discussed face to face. He went to Fred’s office. Kyle proceeded to explain to Fred that the Director of Security, Frank Geagy, had not attended the construction project update meeting in weeks. Kyle said that Frank informed him that in light of the cost cutting going on in the hospital, he is short staffed and cannot hire a new security guard. Frank states that he personally has to cover shifts during the time when the update meetings take place. Kyle told Fred that he was not comfortable making the security panel decision without the head of security’s input, and that Frank has not returned his phone calls or answered his emails. Fred Splient proceeded to tell Kyle in a very loud and angry voice, “That guy is not short staffed S E and is not busy covering anyone’s shift. Who does he think he is?” Fred instructed Kyle to tell Frank to answer the contractor’s questions immediately or the decisions would be made for him. Kyle said he would do so and then changed the subject. He told Fred that they were still waiting for the city officials to approve the parking lot construction permit. Friendly Medical Center’s legal officer estimated that it would take 8–10 weeks to hear back on approval. Kyle allocated that amount of time in the schedule. Kyle received notice from Fred to proceed with the parking lot construction on January 11, 20X8. On February 9, he submitted the application for a permit, complete with appropriate plans and descriptions of the proposed lot, and allocated 10 weeks to wait for the county to notify him. He expected approval on or before April 19 and scheduled construction to begin April 20. Privately, he doubted he would hear from the county by his target date. The lot would take 3 weeks to build, 2 weeks to install the lighting and add landscaping, and 1 week to pave and stripe. The plot had to be completed by the end of June so that parking spaces would be available when Marketing wanted to begin showing the facility to potential residents. This was a tight schedule, but the marketing people insisted that residents had to begin preparing for this kind of move at least a month before they took residence. Potential residents needed to see the facility, get familiar with apartment layouts, and they needed a place to park. Also, Marketing insisted on having some occupancy by the opening date. Kyle told Fred that Legal was calling the county weekly to follow up. Fred wanted to know why the parking lot construction was not outlined on the project plan for facility construction. Fred asked Kyle to add it to the Gantt chart and to do a what‐if analysis on the assumption that the county did not respond until May 1. Fred also wanted to know the latest date that they could be notified and still meet a June 15 deadline for completion of the lot. As Kyle was leaving Fred’s office, Fred asked him about the hair salon. Kyle explained that the COO and VP of Marketing had come up with an idea to build and operate a hair salon in the facility for the residents. They thought this might be a great selling point that could generate revenue. They came to Kyle just 2 months ago and asked him to include a hair salon on the first floor of the facility. Kyle explained that he did not have enough information to be able to determine the impact this would have on the construction schedule or the cost of this addition. Fred listened and then wondered if the members of his team had done any analysis to determine if this was a good idea or not. Fred told Kyle he would get back to him on that one. He then made a phone call to the COO and VP of Marketing. 264 Building ready for residents 11 Project Manager: K. Nanno. Construction complete 10 06/05/X8 06/04/X8 06/04/X8 First 45 units ready for residents 05/01/X8 Remaining 57 units (light & heavy) ready to prepare for occupancy 05/01/X8 07/12/X7 07/12/X7 8 Phase 4 ‐ Interiors 6 9 Phase 3 ‐ Enclosure 5 04/19/X7 First 45 (light‐assisted) units ready to prepare for occupancy Phase 2 ‐ Structure 4 03/01/X7 03/01/X7 03/01/X7 Baseline Start 7 Phase 1 ‐ Foundation & Excavation Facility construction 2 3 Construction & furnishings Task Name 1 ID Assisted Living Facility Construction Project Update as of 4/11/X8 Baseline Finish NA NA NA NA NA 07/30/X8 06/04/X8 06/04/X8 06/25/X8 05/01/X8 08/01/X7 06/04/X8 08/01/X7 01/15/X8 05/24/X7 09/22/X7 03/01/X7 07/11/X7 03/01/X7 06/04/X8 03/01/X7 07/30/X8 Actual Start NA NA NA NA NA NA 01/15/X8 10/09/X7 08/01/X7 NA NA Actual Finish 8 wks 0 days 0 days 8 wks 0 days 234 days 134 days 113 days 95 days 329 days 369 days Baseline Duration 0 wks 0 days 0 days 0 wks 0 days 139 days 120 days 99 days 110 days 285.12 days 278.76 days Actual Duration 8 wks 0 days 0 days 8 wks 0 days 95 days 0 days 0 days 0 days 57.88 days 104.24 days Remaining Variance 0 wks 0 days 0 days 0 wks 0 days 0 days ‐14 days ‐14 days 15 days 14 days 14 days Dur. Variance 14 days 14 days 14 days 14 days 14 days 14 days 0 days 11 days 15 days 14 days 14 days Finish Variance 2 65 QUES T IO NS Friendly Assisted Living Facility Construction coordination meeting 4/11/X8 ACTION ITEM LIST Date Initiated Item Date Required Date Resolved Required From Provide notice to proceed on parking lots 01/10/20X8 ASAP 02/11/20X8 St. Dismas Provide PS. # for designer to purchase accessories 11/9/20X7 12/1/20X7 02/8/20X8 St. Dismas What are the security requirements? There are fire doors, and they do not have locks. We have rough‐in for card readers, but no electric hardware. 11/9/20X7 12/1/20X7 Lighting review—will exterior lighting in addition to the building mounted lights be required? 12/14/20X7 03/15/20X8 Location of security panel 09/28/20X7 ASAP Room number style and placement 01/18/20X7 01/27/20X8 Parking lot permit 02/9/20X8 Fire alarm connection to hospital panel St. Dismas Security 03/15/20X8 Comments Proposal to St. Dismas 1/18/X7 Cost proposal to St. Dismas 1/13/X7 St. Dismas lighting consultant & electrician St. Dismas security 02/11/20X8 St. Dismas designer Part of signage discussion ASAP Contractor Permit application 2/9/20X8, waiting for City to approve 02/11/20X8 ASAP St. Dismas electrician Conduit required Hair salon decision 02/11/20X8 ASAP St. Dismas Updated fire alarm drawings 02/7/20X8 07/1/X8 Contractor & electrician QUESTIONS 1. What do you think the construction project manager should have done when the Director of Security stopped attending the project meetings? 2. Do you think it is an effective communications tool to send the construction project meeting minutes to the ALF steering team and the President? Support your answer. 3. How much time has to be made up for the original, baseline schedule to be met? 4. Develop a plan and draw a Gantt chart for the Parking Lot phase of the project as originally planned by Kyle. Answer Fred’s questions. 5. What information does Fred need to make a decision about building a hair salon? 266 CH AP T ER 7 / MON ITOR ING A ND C ONT ROL L ING T H E P R OJE CT C A Palmstar Enterprises, Inc. Palmstar Enterprises, a leading manufacturer of tablet computers, is currently in the process of developing its next generation device, the model 2000HD. A key feature of the 2000HD is its high definition display. According to the original project schedule, the 2000HD is to be released 1 month from now. Because the amount of time required to convert the existing software to capitalize on the high definition display was significantly underestimated, the project has fallen behind schedule. The project manager estimates that without additional resources, the development project will be 3 months late. He has also estimated that increasing S E the project’s budget of $3 million by 30 percent would permit the project to be completed on schedule. The added budget would be used primarily to staff the project with additional software engineers. If released on schedule, first quarter demand for the 2000HD is forecast to be 200,000 units at an initial price of $450. Demand data for similar products suggest that unit sales will increase 5 percent per quarter over the product’s 3‐year life. Despite pricing pressures in the market, accounting data indicate that Palmstar is able to maintain a 20 percent contribution margin to profit and overhead through continuous process improvements and efficiencies accruing from producing in larger volumes. QUESTIONS 1. What has a larger impact on Palmstar’s profits: delaying the 2000HD’s introduction by 3 months or increasing the project’s budget by 30 percent? 2. Are there other factors you would consider in addition to profit? C A Peak Lighting, Inc. Peak Lighting, Inc. develops stages, lighting systems, and special effects for the concert tours of major musical acts. Recently, they were approached by Bullwhip, a popular band, to develop the stage, lighting, and special effects for its upcoming tour. The project to develop the stage, lighting, and special effects for a concert tour progresses through four major phases. In the first phase, which lasts about a week, Peak develops a sound track for the concert based on the song list the band provides it for the tour. Using the sound track, Peak employees develop a synchronized lighting and special effects show on a computer that allows them to view an animated stage with the lighting and special effects as the sound track is being played. In the second phase, the materials needed for the stage, lighting, and special effects are ordered from outside suppliers. The lead time for receiving these materials is 4 weeks, and during this period the project team members are assigned to other projects. 3. What should Palmstar do? Why? 4. How generalizable do you think the results of your analysis in this particular case are to other situations? S E Once all the materials arrive, the third phase involves constructing the stage with the lighting and special effects. Also, writing the computer code to control the lighting and special effects is done in the third phase. This phase takes 3 weeks. In the final phase, which takes a week, the lighting and special effects are tested and enhanced. The total cost of the Bullwhip project is estimated to be $600,000 of which $400,000 is for the stage, lighting equipment, and special effects, and $200,000 is for labor costs. Eric Page was recently hired as Peak’s VP of Operations. All the project managers that oversee the stage and lighting projects report to Eric. Prior to joining Peak Lighting, Eric served as a project manager for a leading management consulting firm for 10 years. Based on his extensive project management experience, one of the first things Eric did in his new role as VP was implement a formal project reporting system that would help him monitor the progress of the projects under way. The Bullwhip project had been underway for 5 weeks, and all the materials had arrived. The project team was now 2 67 B IB LIOG RA PHY ready to start the third phase of the project and construct the stage with the designed lighting and special effects. In reviewing the most recent progress report for the Bullwhip project and based on his project management experience, Eric became gravely concerned. According to the report, the project had an earned value of $120,000 based on the project manager Jimmy Rush’s estimate that 20 percent of the project had been completed. In further studying the report, Eric observed that the planned value and actual costs incurred were both $440,000. Based on his concern, Eric decided to walk down the hall to Jimmy’s cubicle and discuss his concerns related to the progress on the project. Eric began: I just reviewed the progress report for the Bullwhip project, and I am very concerned that the project is falling way behind schedule. Based on my review, it appears there are very significant cost and schedule variances. As you know, we have a hard deadline for completing the project as the Bullwhip needs everything fully operational 2 weeks prior to the start of their tour so they can rehearse with it. Jimmy responded: To be perfectly honest, I don’t know much about schedule and cost variances but I do have a great deal of experience managing these projects. Again, I don’t know how you calculated the variances you mentioned, but in my view we are exactly where we should be. To this Eric replied: I don’t see how you can possibly think the project is on track when it has an earned value of only $120,000 and the planned value by this point in the project is $440,000? And I am equally disturbed you don’t understand basic project management concepts such as earned value. Later that day, Jimmy shared his frustration about his new boss with one of the project team members. “Eric really chewed me out today. He questioned my ability to manage a project. I wonder if he even understands the nature of these projects. Does he even get it that two thirds of the project costs are for materials and that these costs are incurred in the early part of the project?” QUESTIONS 1. Calculate the schedule variance and cost variance for the Bullwhip project. 2. Does Jimmy’s point about the material costs have merit? If so, does this have any implications for the way the earned valued is calculated at Peak? 3. Who is right about the status of the project? Eric or Jimmy? 4. What advice, if any, would you offer Eric related to his new role of VP of Operations? BIBLIOGRAPHY Ackoff, R. L. “Beyond Problem Solving.” Decision Sciences, April 1974. Adams, J. R., and L. L. Adams. “The Virtual Project: Managing Tomorrow’s Team Today.” PM Network, January 1997. (An excellent brief discussion that covers the nature of virtual projects and some of the communication methods allowing their proliferation.) Barr, Z. “Earned Value Analysis: A Case Study.” PM Network, December 1996. Byrne, J. “Project Management: How Much Is Enough?” PM Network, February 1999. Christensen, D. S. “A Review of Cost/Schedule Control Systems Criterion Literature.” Project Management Journal, September 1994. (This study of military projects notes that after a project is 15–20 percent complete, its total CPI changes by less than 10 percent and overruns worsen. This article is briefly noted in Flemming and Koppleman, 1996.) Dean, B. V. Evaluating, Selecting, and Controlling R&D Projects. New York: American Management Association Research Study 89, 1968. Flemming, Q. W., and J. M. Koppleman. “Forecasting the Final Cost and Schedule Results.” PM Network, January 1996. (This is one of five excellent, instructional articles on earned value by these authors. They appeared in PM Network between January 1994 and May 1996.) Gupta, V. K., and D. J. Graham. “A Customer Driven Quality Improvement and Management Project at Diamond Offshore Drilling.” Project Management Journal, September 1997. Ibbs, C. W., and Y.‐H. Kwak. “Benchmarking Project Management Organizations.” PM Network, February 1998. (This article discusses the development of a tool for finding and assessing the “best” managerial tools for project management.) 268 CH AP T ER 7 / MON ITOR ING A ND C ONT ROL L ING T H E P R OJE CT Ingram, T. “Client/Server, Imaging and Earned Value: A Success Story.” PM Network, December 1995. Meredith, J. R., and S. M. Shafer. Operations and Supply Chain Management for MBAs, 6th ed. New York: John Wiley, 2016. Nixon, T. R. “Project Management at the New Parliament House, Canberra.” Project Management Journal, September 1987. PMI, “Lack of Support,” PM Network, January 2005. PMI Standards Committee. A Guide to the Project Management Body of Knowledge, 5th ed. Newton Square, PA: Project Management Institute, 2013. Reith, W. D., and D. B. Kandt. “Project Management at a Major Automotive Seating Supplier.” Project Management Journal, September 1991. Thamhain, H. J. “Best Practices for Controlling Technology‐Based Projects.” Project Management Journal, December 1996. (A fine analytical study of finding and assessing the “best practices” for controlling high‐ technology projects. It not only finds the “best” control practices, but also generates a “benchmark” to which any firm can compare its practices.) Toney, F. “What the Fortune 500 Know about PM Best Practices.” PM Network, February 1997. Wu, C., and G. Harwell. “The MUNI Metro Turnback Project.” PM Network, May 1998. C H A P T E R 8 Evaluating and Closing the Project We now come to the exciting final stage in any project—witnessing the result of all our project efforts! This usually consists of two sets of activities: evaluating the result of our efforts and then closing down the project. As we will see, there are many ways to do both, some relatively formal, some quick and dirty, and some rather casual. We discuss evaluation first, in the generic sense, and then discuss a very specific and often formal type of evaluation known as the “project audit.” We contrast the project audit with the more commonly recognized “financial audit.” We then describe the audit process, the audit report, and give some advice for conduction such an audit. Following this, we discuss various ways of closing out the project, including the possibility of early closure which can occur for a variety of reasons such as a reduced market need for the output or a low expected return on the investment. Four major types of closure are “by extinction,” where the project was either successfully completed or failed (or expected to be a failure); “by addition,” where the project output is added to the organization in whole, as with a new plant; “by integration,” where the project output is distributed throughout the organization, as with a software upgrade. However, there are some interesting vari ...
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Project Management -Homework

Friendly Assisted Living Facility Case – 7
1. What do you think the construction project manager should have done when the
Director of Security stopped attending the project meetings?
Thus far, the construction project manager has set up a very good communications system to
ensure the project team stays informed even when they are not able to attend the project
meetings. In this situation, therefore, Kyle Nanno should send messages and meeting notes to the
Director of Security if he does not respond by the deadline set by Kyle. Alternatively, Kyle can
solicit input and feedback from Fred and other parts of the project team on where the security
panel should be. If the Director of Security continues to be absent from the project meetings,
then the CEO should take disciplinary measures against him for not fulfilling his job duties as a
member of the project team.

2. Do you think it is an effective communications tool to send the construction project
meeting minutes to the ALF steering team and the President? Support your answer.
In my view, sending the comprehensive construction project meetings to the ALF steering team
and the president is not an effective communications tool.
Considering that their time is precious and probably have a whole host of other things on their
plate, the President and the ALF steering team could find the notes useful in a somewhat
summarized format. Moreover, since they have been provided with several details, most
probably they will want to be involved in every decision that could cause project creep to sneak
up on the project at the last minute. If this is too much for the project manager or others
involved, then only important details applicable to them should be communicated.

3. How much time has to be made up for the original, baseline schedule to be met?
When looking at the updated Gantt chart in the text, it shows that it has been updated as of April
11th, 2018. With a variance of 14 days for the project to be finished, this is also the amount of
time that the project is in arrears. While the first phase was 15 days late in the first phase, the
next two (2) phases were ahead of schedule by a total of 14 days.
Thus, in this case, 14 calendar days (or just under three (3) weeks would need to be made up
somehow in the latter stages of the project so that it can open up on time.

4. Develop a plan and draw a Gantt chart for the Parking Lot phase of the project as
originally planned by Kyle. Answer Fred’s questions.
If everything goes as scheduled the Gantt chart for the Parking Lot construction will look as


Task Name
Parking Lot Construction
Notice to proceed with lot
Permit application submitted
Notified by city of permit approval
City approves permit
Construction of Lot begins
Pave and stripe
Lot completed

102 days
22 days
0 days
10 wks
0 days
30 days
3 wks
2 wks
2 wks
1 wk
0 days


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