Project Planning
CEGR 400: Project Management
Dr. Gbekeloluwa B. Oguntimein
LEARNING OBJECTIVES FOR
MODULE # 4
Upon completion of this module the
student will be able to:
identify the elements of a project plan.
analyze, evaluate, create and present
Work Breakdown Structures (WBS).
analyze, evaluate and create Linear
responsibility charts (LRC).
Learning Objectives (cont’d)
assess potential project pitfalls and
formulate solutions.
develop and execute project
planning activities appropriate for
their project life cycle.
identify the contents of a project
proposal.
PROJECT PLANNING
Planning projects , anchors the process of
project management around the project of
life cycle.
The main purpose of project planning is to
guide project execution.
To guide project execution , plans must be
realistic and useful so a fair amount of
time and effort must go into the project
planning process.
PROJECT PLANNING (Cont’d)
PROJECT LIFE CYCLE:
$
Concept Planning
Execution
CONCEPT - Preliminary Goals.
PLANNING - Establishment Of Formal Plans.
EXECUTION - Work & Resources Procured.
TERMINATION - Final Activities & Transfer To Client.
Terminate
PROJECT PLANNING (Cont’d)
From the concept phase through the
termination phase, projects require
specific actions from a variety of
participants.
A work Breakdown Structure (WBS) and
Linear Responsibility Chart (LRC) are tools
to identify and describe the
responsibilities and deadlines for every
person and group associated with a
project .
ELEMENTS OF A PROJECT PLAN:
OVERVIEW
OBJECTIVES
GENERAL APPROACH
CONTRACTUAL ASPECTS
SCHEDULES
RESOURCES
PERSONNEL
EVALUATION METHODS
RISK MANAGEMENT (POTENTIAL PROBLEMS)
Elements of Project plan (cont’d)
When all stakeholders have signed off on the plan, it becomes an operational
Project Charter
NOTE:
A PLAN ACTS AS A MAP
PLANNING IS AN ITERATIVE PROCESS OF IMPROVEMENT
INDIVIDUALS & GROUPS CONTRIBUTE
Overview
The overview contains a brief description of the
project and its deliverables (scope), together
with a list of the major milestones or significant
events in the project schedule and any
constraints on the project scope.
The project scope management includes the
processes required to ensure that the project
includes all the work required, and only the
work required, to complete the project
successfully.
Project scope
There are two types of scope:
Product scope which are the features and
functions that characterize a product, service
or result
Project scope which is the work that needs to
be accomplished to deliver a product, service,
or result.
The project scope makes it possible to deliver
the product scope, but it is not the actual end
product.
Project scope (cont’d)
Scope management plan is the document that
describes how the project scope will be defined,
developed, and verified and how the work
breakdown structure will be created and
defined.
It provides guidance on how the project scope
will be managed and controlled by the project
management team.
It starts with collecting requirements from the
project charter and stakeholders
Project Objectives
Project objectives is a more detailed
description of the project scope, its
deliverables and outcomes.
It is also the project mission statement.
The mission statement communicates to
the project team members and others
what will be done to achieve the project’s
overall objectives.
General approach
The technological and managerial
approaches to work are described in this
section.
An identification of the project as
“derivative,” “Platform,” or “breakthrough”
might be included in this section as well
as relationship to other organization’s
projects.
Contractual aspects
This section contains a complete description of all
agreements made with the client or any third party.
This list include all reporting requirements, the
technical specifications of all deliverables,
agreements on delivery dates; incentives for
performance, for exceeding contractual
requirements, and penalties for noncompliance;
specific procedures for making changes in the
deliverables, project review dates and procedures;
and similar agreements.
Schedules
Outline of all schedules and milestones
are included in this section.
Each task in the project is listed in the
WBS.
Listed with each task is the time required
to perform it.
The project schedule is constructed from
these data and is included in this section.
Resource requirements
Estimates of project expenses, both capital
and operating are included here.
The cost associated with each task are
shown, and overhead and fixed charges are
listed.
Appropriate account numbers to be charged
are listed with the relevant cost items.
This becomes the project budget.
Personnel
This section covers the details of the
project work force.
It notes any special skill requirements,
necessary training and special legal
arrangements such as security clearances
or nondisclosure agreements.
Combined with schedule , it notes the
time-phasing of all personnel
requirements
Risk Management
Planners should list major and minor disasters that may
occur when the project is undertaken such as late
subcontractor deliveries, bad weather, equipment
failure, changes in project scope, complex coordination
problems.
Contingency plans to deal with such potential crises
should be a standard part of project plan.
A method for quantifying the potential seriousness of
risks, failure Mode and Effects Analysis (FMEA). Is
helpful
Evaluation methods
Description of all project evaluation procedures
and quality standards are found in this section.
Responsibility and control of all project
activities.
Procedures to ensure compliance with all
corporate requirements for monitoring,
collecting, and sorting data on project
performance, together with description of the
required project history.
PLANNING PROCESS:
PRELIMINARY COORDINATION - WHOSE INVOLVED & WHAT WILL
BE ACCOMPLISHED?
WORK PLANS - DETAILED DESCRIPTION OF THE TASKS.
PREPARATION OF BUDGET & SCHEDULE
DESCRIPTION OF PROJECT STATUS REPORTS, INC. TIMING,
CONTENTS, & WHO RECEIVES REPORTS.
CHANGE ORDERS - NEED TO BE APPROVED BY TOP MANAGEMENT
& CLIENT.
NOTE:
PLANNING IS AN ITERATIVE PROCESS RESULTING IN THE PLAN
BECOMING HARDENED.
WORK BREAKDOWN STRUCTURE
(WBS)
The Work Breakdown Structure (WBS) is a hierarchical
description of the work that must be done to complete the
project as described in the project overview statement
(POS).
It is a deliverable-oriented grouping of the work involved
in a project that defines the total scope of the project.
It is a document that breaks all the work required for the
project into discrete tasks, and groups those tasks into a
logical hierarchy.
It is the process of subdividing project deliverables and
project work into smaller more manageable components.
WBS (cont’d)
The WBS is a foundation document in
project management because it provides the
basis for planning and managing project
schedules, costs, resources, and changes
It is the cornerstone of project scope.
It takes information from the project scope
statement and fully defines and organizes
the scope.
WBS (cont’d
An activity is simply a chunk of work.
Tasks are smaller chunk of work.
Both terms have been used interchangeably
A work package is a task at the lowest level
of the WBS.
WBS (cont’d)
It also represent the level of work that the
project manager monitors and controls.
ACTIVITIES LISTED IN THE ORDER
THEY OCCUR (2 - 20)
BREAKDOWN INTO TASKS (2-20)
Work Break Down Structure
Hierarchical Visualization of WBS
GOAL
Activity
Activity
Task # 1
Activity
Level # 0
Level # 1
Activity
Activity
Activity
Task # 2 ……. Task # 3
Level # 2
Level # m
Uses for the WBS
The WBS has four uses:
Thought process tool: WBS is a thought process. It is a
design and planning tool. It helps the PM and the project
team visualize exactly how the work of the project can be
defined and managed effectively.
Architectural design tool: The BS is a picture of the work of
the project and how the items of work are related to none
another.
Planning tool: In the planning phase, the WBS gives the
project team a detailed representation of the project as a
collection of activities that must be completed in order for the
project to be completed.
Project status tool: The WBS is used as a structure for
reporting project status. The project activities are
consolidated from the bottom as lower-level activities are
completed
Generating the WBS
There are two approaches that have been used in
generating the WBS:
Top-Down Approach: This begins at the goal level
and successively partitions work down to lower
levels of definition until the participants are satisfied
that the work has been sufficiently defined.
Variations of the top-down approach are
The team approach: The entire team works on all
parts of the WBS using the most knowledgeable
team member to facilitate the further
decomposition of that part of the WBS.
Generating the WBS (cont’d)
The Subteam approach. This is recommended when time is
premium. The planning team is divided into subteams as there
are activities at level 1. Then the following steps are followed
The planning team agrees on the approach to building the
first level of the WBS
The planning team creates the level 1 activities
A subjected matter experts leads in further decomposition of
the WBS for his or her area of expertise
The team suggests decomposition ideas the team for the
expert until each activity within the level 1 activities meets
the WBS completion criteria.
Generating the WBS (cont’d)
Bottom-Up Approach: This is more like a brain
storming approach. The first steps are the same
as those of the top-down-approach:
The planning team is divided into as many
groups as there are first-level activities.
Each group then makes a list of the activities
that must be completed in order to complete
the first-level activity.
A HIERARCHIAL SYSTEM:
GOALS/OBJECTIVES
REQUIRED ACTIVITIES TO MEET OBJECTIVES
EACH ACTIVITY HAS AN OUTCOME
SUBACTIVITIES HAVE OUTCOMES
NOTE:
THE WBS REFLECTS THE ACTION THAT
WAS DEVELOPED.
WBS ILLUSTRATES HOW EACH PIECE OF
THE PROJECT CONTRIBUTES TO THE
WHOLE.
SHOWS RELATIONSHIPS BETWEEN WORK
GROUPS.
USES OF THE WBS:
INPUTS TO :
PLANNING
SCHEDULING
MEASURING PERFORMANCE
ESTIMATING COST
KEY POINTS OF THE WBS:
THE WBS DESCRIPTION SHOULD INCLUDE AN ACTION VERB;
EXAMPLES:
ASSEMBLE
ESTABLISH
PREPARE
UPDATE
EACH TASK SHOULD HAVE AN OWNER (PERSONS NAME OR TITLE)
WBS IS A TOOL , NOT AN END
WBS HAS MULTIPLE USES
WBS IS NOT A SCHEDULE
WBS IS A GOOD TEAM BUILDING TOOL
PROJECT PROPOSALS
The project proposal includes the
following:
A detailed description of each work activity.
The resources required to complete the
activity.
The schedule start and end date of each
activity.
The estimated cost and completion date of
the project.
PROJECT PROPOSALS:
STRUCTURE ---------------------- BIDDING
STRATEGY
COVER LETTER
EXECUTIVE SUMMARY
TECHNICAL PROBLEM & HOW IT WILL BE
APPROACHED (IN SUFFICIENT DETAIL)
PROJECT PROPOSALS (cont):
IMPLEMENTATION PLAN, TO INCLUDE:
TIME REQUIRED
COST
MATERIALS
MAJOR SUBDIVISION OF PROJECT
PERT & GANTT CHARTS
LOGISTICS & ADMINISTRATION PLAN, TO INCLUDE:
SUPPLY OF FACILITIES & EQUIPMENT
HOW ADMINISTERED & REPORTING
DESCRIPTION OF THE TEAM, INC..
DISCIPLINES
EXPERIENCE
Budgeting and Cost Estimation
CEGR 400: Project Management
Dr. Gbekeloluwa B. Oguntimein
LEARNING OBJECTIVES
Upon completion of this module the
student will be able:
To categorize different type of project
method Top down , bottom up, zero based
, program planning budgeting method
To evaluate budgets and cost estimates
To produce a project budget using top
down or bottom up method.
LEARNING OBJECTIVES (Cont’d)
To propose ways to improve
estimates and respond to budget
uncertainty.
To identify errors in cost estimation.
PROJECT COST MANANAGEMENT
Project cost management includes the processes
involved in estimating, budgeting and controlling costs
so that the project can be completed within the
approved budget.
Along with the project schedule which will be discussed
later , the project budget is one of the most important
documents in the project.
Cost estimates are developed for cost categories and
WBS elements and then applied across the schedule to
develop a funding curve and a cost baseline.
BUDGETING & COST ESTIMATION
IN ADDITION TO PLANNING THE TECHNICAL
ASPECTS OF THE PROJECT PLANS , THE pm ALSO
NEEDS TO SPEND TIME ON ESTABLISHING THE
PROJECT BUDGET.
BUDGET:
PART OF THE PLAN FOR ALLOCATING
ORGANIZATION RESOURCES TO THE PROJECT
ACTIVITIES.
IT TIES THE PROJECT TO THE ORGANIZATION’S
AIM AND OBJECTIVES THROUGH
ORGANIZATIONAL POLICY.
.
BUDGETING & COST ESTIMATION (CONT’D)
A CONTROL DOCUMENT
STANDARD OF COMPARISON.
HENCE THE PROJECT BUDGET IS NOTHING
MORE THAN THE PROJECT PLAN,BASED ON
THE WBS, EXPRESSED IN MONETARY
TERMSAND IT BECOMES PART OF THE
PROJECT CHARTER.
ONCE BUDGET IS DEVELOPED , IT ACTS AS A
TOOL FOR UPPER MANAGEMENT TO MONITOR
AND GUIDE THE PROJECT.
BUDGETING & COST ESTIMATION (CONT’D)
NOTE:
BUDGETS ARE TIED TO ACHIEVEMENTS
CAN REPRESENT COLLECTIVE EXPERIENCE
OF THE COMPANY (RULES OF THUMB)
SIMILAR PROJECTS MAY SERVE AS
GUIDELINES
BUDGETING IS SIMPLY THE PROCESS OF
FORCASTING WHAT RESOURCESTHE PROJECT
WILL REQUIRE, WHAT QUANTITIESOF EACH
WILL BE NEEDED, WHEN THEY WILL BE NEEDED,
AND HOW MUSCH THEY WILL COST.
BUDGETING & COST ESTIMATION (CONT’D)
PROJECT BUDGETS ARE MORE DIFFICULT THAN
DEVELOPING REGULAR DEPARTMENTAL
BUDGET WHICH USUALLY FOLOW THE
FORMULAR “THE SAME AS LAST YEAR PLUS X
PER CENT”
ORGANIZATIONAL TRADITION IMPACTS
PROJECT BUDGETING, PARTICULARLY IN
DECISIONS ABOUT HOW OVERHEAD AND OTHER
INDIRECT COSTS ARE CHARGED AGAINST THE
PROJECT
METHODS FOR GATHERING BUDGET
DATA
TOP - DOWN – BASED ON COLLECTIVE JUDGEMENT AND
EXPERIENCE OF TOP & MIDDLE MANAGERS ON PAST PROJECTS
ADVANTAGE: OVERALL BUDGET COSTS CAN BE
ESTIMATEDQUITE ACCURATELY, THOUGH
ELEMEMNTSMIGHT BE IN SUBSTANTIAL ERROR
ERRORS IN FUNDING SMALL TASKS NEED NOT BE
INDIVIDUALLY IDENTIFIED BECAUSE THE OVERALL BUDGET
ALLOWS FOR EXCEPTIONS.
SMALL BUT IMPORTANT TASKS DO NOT USUALLY CAUASE
SERIOUS BUDGETARY PROBLEMS
Bottom-Up budgeting
IN BOTTOM – UP BUDGETING , THE WBS OR ACTION PLAN
IDENTIFIESTHE LEMENTAL TASKS, WHOSE RESOURCE
REQUIREMENTS ARE ESTIMATED IN DETAIL BY THOSE
WHO DO THE WORK.
THESE RESOURCES , SUCH AS LABOUR AND MATERIALS ,
ARE THEN CONVERTED TO COSTS AND COMBINED TO
DETERMINE AN OVERALL DIRECT COST FOR THE PROJECT.
THE ACCOUNTING DEPARTMENT OR FINANCE
DEPARTMENT THEN ADDS , ACCORDING TO
ORGANIZATIONAL POLICY THE INDIRECT COSTS,
CONTINGENCY FUNDS AND PROFIT TO ARRIVE AT THE
FINAL BUDGET.
Bottom-Up Budgeting (cont’d)
ADVANTAGE: SINCE THIS IS PARTICIPATIVE
MANAGEMENT. IT TYPICALLI RESULT IN MORE
ACCURATE ESTIMATESALTHOUGH THEY RUN THE RISK
OF OVERLOOKING SOME SMALL BUT COSTLY TASKS.
IT CAN LEAD TO BETTER MORALE , GREATER
ACCEPTANCE OF THE RESULTING BUDGET, AND
HEIGHTENED COMMITMENT BY PROJECT TEAM.
IT CAN SERVE AS A GOOD MANAGERIAL TRAINING
TECHNIQUE FOR ASPIRING PROJECT AND GENERAL
MANAGERS.
DISADVANTAGE – IT CAN ALSO IN OVERESTIMATED
BUDGET AS A RESULT OF CONSERVATIVE ESTIMATED
BY LOWERLEVEL WORKERS.
Budgeting methods (cont’d)
TOP - DOWN IS COMMON, BOTTOM - UP IS RARE
BECAUSE UPPER LEVEL MANAGERS ARE OFTEN
RELUCTANT TO LET WORKERS DEVELOP BUDGETS,
FEARING NATURAL TENDENCY TO OVERSTATE COSTS,
ANF FEARING COMPLAINTS IF THE BUDGET MUST
LATER BE REDUCED TO MEET ORGANIZATIONAL
RESOURCE LIMITATIONS.
IDEALLY ORGANIZATION CAN EMPLOY BOTH FORMS
OF DEVELOPING BUDGET.
THE ONLY DISADVANTAGE OF THE USE OF BOTH
METHODS IS THAT IT REQUIRES EXTRA TIME AND
TROUBLE .
Budgeting Methods (cont’d)
Planning, Programming. Budgeting System
(PPBS)
PPBS developed when Robert McNamara was
the secretary or Defense.
It identifies, plans, and controls projects to
maximize long-tem goals.
It became obsolete because it was extremely
difficult to measure cost and especially benefits.
Budgeting methods (cont’d)
Zero-base budgeting (ZBB)
ZBB was introduced during the Carter
administration
It links funding with achievement
It was introduced to cut wastes in government
programs.
It can help identify projects no longer of value
but has not worked well, even in the
government, because of the tremendous effort
required to continually justify oneself.
Stages of Budget development
The PM should develop project budget in
the following stages:
Rough-order of Magnitude (ROM)
estimate: an initial estimate of costs that’s
‘s based on a general sense of the type of
work the project will likely entail.
This estimate is also known as a ballpark
estimate.
Rough order of Magnitude (cont’d)
Sometimes this estimate is more a statement
of what someone is willing to spend rather
than what the project will really cost.
Typically , PMs don’t detail this estimate by
lowest-level project activity because the
estimate is prepared in a short amount of
time, before the needed project activities
have been completely identified.
Stages of Budget development
(cont’d)
Detailed Budget (DB)estimate: An itemization
of estimated costs for each project activity.
PMs prepare this estimate by developing a
detailed WBS and estimating the costs
associated with the lowest level of activities.
Completed, Approved project
Budget(CB/AP) A detailed project budget
that essential people approve and agree to
support.
Stages of Budget development
(cont’d)
The PM perform these budget
development
Project Phase
Budget
Method
Concept?Conxceiv ROM
e
Define
DB
Start
CB/AB
Perform
Revise AB
Termination
RevisedAB
Bottom-Up and
Top Down
BUDGETING - AN ITERATIVE
PROCESS
THROUGH TIME MORE
INFORMATION IS ADDED TO THE
PROCESS
NEGOTIATION
EDUCATE SENIOR MANAGEMENT ON
THE REALISTIC COSTS OF THE
PROJECT - GET THEIR BUY - IN
POSITIVE RELATIONSHIP BETWEEN
PM & SENIOR MANAGEMENT - FAIR
BUDGET
COST ESTIMATING
The process of developing an approximation
of monetary resources needed to complete
project activities is cost estimating.
It is one of the most sensitive topics in
project management.
Customers and sponsors want to know how
much it will cost early in the project so they
can make good decisions.
Estimating implies a prediction
Cost Estimating (cont’d)
A project budget is typically developed in
stages, from an initial rough estimate to a
detailed budget estimate through a
completed, approved project budget.
Budget take into account the following
types of costs:
Direct cost are expenditure for resources that
are used solely to perform the project
activities.
Cost Estimating (cont’d)
Direct cost include salaries paid to the people
who work on the project; materials , supplies,
and equipment bought for the project; travel
to perform project work; and subcontracts for
services performed for the project.
Indirect costs: expenditures that are incurred
to support project activities but that aren’t
tracked individually.
Cost Estimating (cont’d)
Indirect costs fall into two subcategories:
Overhead costs: expenditures for resources used
to perform project activities but which are difficult
to subdivide and allocate directly.
Examples include employee benefits, office space
rent, supplies, and the rental or purchase of
furniture, fixtures, or equipment used to support
work on the project.
Cost Estimating (cont’d)
General administrative costs: expenditure that
keep the organization operational such as salaries
of finance department and top management as
well as fees for accounting and legal services.
IMPROVING COST ESTIMATION
DETAILED WORK DESCRIPTION
INPUT FROM EXPERIENCED INDIVIDUALS
INCLUDE RESOURCE NEEDS &
AVAILABILITY
BUREAU OF LABOR STATISTICS WAGE &
PRICE INDICES
CONTINGENCIES (PROJECTS NEED
THESE)
IMPROVING COST ESTIMATION
(cont’d)
NOTE:
BUREAU OF LABOR STATISTICS WAGE &
PRICE INDICES - GOOD REFERENCE TO
COMMODITIES & WAGE RATES.
PROJECTS NEED CONTINGENCIES
UNDERBIDDING (A NO - NO)
Methods Used in Improving Cost
Estimates
THE PMS HAVE A NUMBER OF WAYS TO
IMPROVETHE PROCESS OF COST ESTIMATION.
THESE RANGE FROM FORMALIZATION OF THE
PROCESS, USING FORMS, PARAMETRIC SUCH AS
THE THREE POINT ESTIMATES (PERT ESTIMATE),
THE LEARNING CURVE (LEARNING
RATES);TRACKING SIGNALS
OPTIMISTIC + 4(MOST LIKELY) + PESSIMISTIC
6
Learning Curve
I general research have shown that unit
performance improves by a fixed percent
each time the total production quantity
doubles.
More specifically each time the output
doubles, the worker hours per unit
decrease by a fixed percentage of their
previous value.
Learning Curve (cont’d)
The percentage , called the learning rate
is typically between 70 and 90 percent.
The higher values are for more
mechanical tasks, while the lower values
are for more mental tasks such as solving
problems.
A common rate for manufacturing is 80%.
EVALUATING COST ESTIMATES
RANDOM ERRORS & SYSTEMATIC ERRORS:
Random - overestimates and underestimates are equally likely to
occur.
Systematic - overestimates and underestimates are not equally
likely to occur. There is some sort of bias.
TO IDENTIFY ERRORS IN COST ESTIMATION:
Calculate the mean absolute deviation (mad) and the tracking
signal (ts).
Mad is the average estimation error (a statistic).
If the mad is a sizable fraction of the variable being estimated, the
average error is large and the estimate is not very accurate.
The tracking system (ts) measures the amount of bias.
REFER TO PG. 130 FIG. 4-3. EXCEL SPREAD SHEET
THE ACTUAL COST OF A VARIABLE IS SUBTRACTED FROM THE
ESTIMATED COST DIVIDED BY THE ESTIMATED COST MINUS 1 GIVES THE
PERCENTAGE RATIO OF FORECAST ERRORS (RFE)(COLUMN D). THE SUM IS
SHOWN AT THE BOTTOM OF THE COLUMN. A POSITIVE VALUE INDICATES
THAT THE ACTUALS ARE GREATER THAN THE ESTIMATES. THE FORECAST
IS BIASED, LOW IF THE RATIO IS POSITIVE AND HIGH IF IT IS NEGATIVE.
THE LARGER THE PERCENT ERROR , THE GREATER THE BIAS.
THE ABSOLUTE VALUE OFCOLUMN D RFE IS SHOWN IN (COLUMN E).
MEAN ABSOLUTE RATIO MAR (COLUMN F) IS THE RUNNING AVERAGE OF
THE VALUES IN COLUMN E UP TO THAT PERIOD CALCULATED BY DIVIDING
THE SUM OF THE ABSOLUTE VALUES FOR PERIODS (COLUMN E) BY THE
NUMBER OF PERIODS (COLUMN A).
THE TRACKING SIGNAL OF A VARIABLE FOR EACH PERIOD IS
CALCULATED BY DIVIDING THE SUM OF RUNNING SUM OF THE VALUES IN
COLUMN D BY THE MAR FOR THAT PERIOD.
EXAMPLE:
FOR PERIOD 2:
RSFE = 100*[(240 – 242)/242 –1] = -0.8% (COLUMN D)
ABSOLUTE VALUE = 0.8% (COLUMN E)
MAR = (0.052 + 0.008)/2=0.060 / 2 = 0.030 (COLUMN F)
TS = (0.O52+(-0.008))/0.030=0.044 /0.030 = 1.448 (COLUMN G).
NOTE:
TS IS SORT OF AN INDEX NUMBER. IF TS > 3 = TOO HIGH.
IF THE SUM OF RSFE APPROACHES 0, ERRORS ARE RANDOM. IF
NOT, THERE IS BIAS.
Plymouth Zoo's Re-engineering Project
The Chief Operating Officer of the Plymouth Zoo Avery
Mitchell was put in charge after the CEO unexpect-
edly died. Avery was named acting CEO and told by the
zoo's Board of Directors that he would be considered for
the position permanently if the next few months went
smoothly. Avery was very nervous because he knew that
the zoo was on the verge of financial troubles. He was
not expecting to make the profits that had been pro-
jected for the next few months. He knew that admissions
were down as a result of recent unrest in the city and
nationally.
The deceased CEO had hired a consulting group
to help identify cost savings for the zoo. The firm hired
was unfamiliar to Avery, and there were rumors around
the zoo that the lead consultant was a friend of the now
deceased CEO.
The consulting group had been interviewing staff at
the zoo for the last two weeks in order to prepare a pro-
posal for work re-design to cut costs. Avery met with
the consultants, and they presented him with their pro-
posal. The proposal outlined the cost of the consult-
ants and the projected savings the zoo could expect
after the consultants' work was finished. Avery was
unclear about precisely how the savings were deter-
mined and what would be the redesign project's specific
deliverables.
Questions: What should Avery Mitchell do next?
What information should he ask the consultants for
before accepting their proposal? What project planning
tools would you suggest Avery ask the consultants to use
to outline the project more specifically and address his
concerns?
Purchase answer to see full
attachment