Project Management Case Studies

Harold Kerzner

• Publisher: Wiley
• Year: 2022
• Print ISBN: 9781119821991
• eBook ISBN: 9781119822042
• Edition: 6
• Topic: Business
• Subtopic: Project Management
• Index: Business

The latest edition in the gold standard of project management case study collections

As a critical part of any successful, competitive business, project management sits at the intersection of several functional areas. And in the newly revised Sixth Edition of Project Management Case Studies, world-renowned project management professional Dr. Harold Kerzner delivers practical and in-depth coverage of project management in industries as varied as automotive, healthcare, government, manufacturing, communications, construction, chemical, aerospace, and more.

The latest edition of this bestselling book acts as the perfect supplement to any project management textbook or as an aid in the preparation for the PMP certification exam. The author includes new topics, like risk management, information sharing, scope changes, crisis dashboards, and innovation.

The Sixth Edition includes ten new case studies and a wide array of updates to existing cases to meet today's industry standards and reflect the unique challenges facing modern project management professionals. This new edition:

• Features 10 new case studies from LEGO, NorthStar, Berlin Brandenburg Airport, and more
• Includes over 100 case studies drawn from real companies illustrating successful and poor implementation of project management
• Provides coverage of broad areas of project management as well as focused content on the automotive, healthcare, government, manufacturing, communications, construction, chemical, and aerospace industries
• Offers new topics including risk management, information sharing, scope changes, crisis dashboards, and innovation

Perfect for students taking courses on project management during their undergraduate degrees and at the graduate level as part of an MBA or graduate engineering program, Project Management Case Studies is also an indispensable resource for consulting and training companies who work with other professionals.

Part 1
PROJECT MANAGEMENT METHODOLOGIES

As companies approach some degree of maturity in project management, it becomes readily apparent to all that some sort of standardization approach is necessary for the way that projects are managed. The ideal solution might be to have a singular methodology for all projects, whether they are for new product development, information systems, or client services. Some organizations may find it necessary to maintain more than one methodology, however, such as one methodology for information systems and a second methodology for new product development.

The implementation and acceptance of a project management methodology can be difficult if the organization's culture provides a great deal of resistance toward the change. Strong executive leadership may be necessary such that the barriers to change can be overcome quickly. These barriers can exist at all levels of management as well as at the worker level. The changes may require that workers give up their comfort zones and seek out new social groups.

Lakes Automotive

Lakes Automotive is a Detroit‐based tier‐one supplier to the auto industry. Between 1995 and 1999, Lakes Automotive installed a project management methodology based on nine life‐cycle phases. For the next 10 years, all 60,000 employees worldwide accepted the methodology and used it. Management was pleased with the results. Also, Lakes Automotive's customer base was pleased with the methodology and provided Lakes Automotive with quality award recognition that everyone attributed to how well the project management methodology was executed.

In February 2015, Lakes Automotive decided to offer additional products to its customers. Lakes Automotive bought out another tier‐one supplier, Pelex Automotive Products (PAP). PAP also had a good project management reputation and also provided quality products. Many of its products were similar to those provided by Lakes Automotive.

Because the employees from both companies would be working together closely, a single project management methodology would be required that would be acceptable to both companies. PAP had a good methodology based on five life‐cycle phases. Both methodologies had advantages and disadvantages, and both were well liked by their customers.

QUESTIONS

1. How do companies combine methodologies?
2. How do you get employees to change work habits that have proven to be successful?
3. What influence should a customer have in redesigning a methodology that has proven to be successful?
4. What if the customers want the existing methodologies left intact?
5. What if the customers are unhappy with the new combined methodology?

Ferris HealthCare, Inc.

In July of 2014, senior management at Ferris recognized that its future growth could very well be determined by how quickly and how well it implemented project management. For the past several years, line managers had been functioning as project managers while still managing their line groups. The projects came out with the short end of the stick, most often late and over budget, because managers focused on line activities rather than project work. Everyone recognized that project management needed to be an established career path position and that some structured process had to be implemented for project management.

A consultant was brought into Ferris to provide initial project management training for 50 out of the 300 employees targeted for eventual project management training. Several of the employees thus trained were then placed on a committee with senior management to design a project management stage‐gate model for Ferris.

After two months of meetings, the committee identified the need for three different stage‐gate models: one for information systems, one for new products/ services provided, and one for bringing on board new corporate clients. There were several similarities among the three models. However, personal interests dictated the need for three methodologies, all based on rigid policies and procedures.

After a year of using three models, the company recognized it had a problem deciding how to assign the right project manager to the right project. Project managers had to be familiar with all three methodologies. The alternative, considered impractical, was to assign only those project managers familiar with that specific methodology.

After six months of meetings, the company consolidated the three methodologies into a single methodology, focusing more on guidelines than on policies and procedures. The entire organization appeared to support the new single methodology. A consultant was brought in to conduct the first three days of a four‐day training program for employees not yet trained in project management. The fourth day was taught by internal personnel with a focus on how to use the new methodology. The success to failure ratio on projects increased dramatically.

QUESTIONS

1. Why was it so difficult to develop a single methodology from the start?
2. Why were all three initial methodologies based on policies and procedures?
3. Why do you believe the organization later was willing to accept a single methodology?
4. Why was the single methodology based on guidelines rather than policies and procedures?
5. Did it make sense to have the fourth day of the training program devoted to the methodology and immediately attached to the end of the three‐day program?
6. Why was the consultant not allowed to teach the methodology?

Clark Faucet Company

BACKGROUND

By 2010, Clark Faucet Company had grown into the third largest supplier of faucets for both commercial and home use. Competition was fierce. Consumers would evaluate faucets on artistic design and quality. Each faucet had to be available in at least 25 different colors. Commercial buyers seemed more interested in the cost than the average consumer, who viewed the faucet as an object of art, irrespective of price.

Clark Faucet Company did not spend a great deal of money advertising on the radio, television, or Internet. Some money was allocated for ads in professional journals. Most of Clark's advertising and marketing funds were allocated to the two semiannual home and garden trade shows and the annual builders' trade show. One large builder could purchase more than 5,000 components for the furnishing of one newly constructed hotel or one apartment complex. Missing an opportunity to display the new products at these trade shows could easily result in a six‐ to 12‐month window of lost revenue.

CULTURE

Clark Faucet had a noncooperative culture. Marketing and engineering would never talk to one another. Engineering wanted the freedom to design new products, whereas marketing wanted final approval to make sure that what was designed could be sold.

The conflict between marketing and engineering became so fierce that early attempts to implement project management failed. Nobody wanted to be the project manager. Functional team members refused to attend team meetings and spent most of their time working on their own pet projects rather than on the required work. Their line managers also showed little interest in supporting project management.

Project management became so disliked that the procurement manager refused to assign any of his employees to project teams. Instead, he mandated that all project work come through him. He eventually built a virtual brick wall around his employees. He claimed that this would protect them from the continuous conflicts between engineering and marketing.

THE EXECUTIVE DECISION

The executive council mandated that another attempt to implement good project management practices must occur quickly. Project management would be needed not only for new product development but also for specialty products and enhancements. The vice presidents for marketing and engineering reluctantly agreed to try to patch up their differences but did not appear confident that any changes would take place.

Strange as it may seem, no one could identify the initial cause of the conflicts or how the trouble actually began. Senior management hired an external consultant to identify the problems, provide recommendations and alternatives, and act as a mediator. The consultant's process would have to begin with interviews.

ENGINEERING INTERVIEWS

The following comments were made during engineering interviews:

• “We are loaded down with work. If marketing would stay out of engineering, we could get our job done.”
• “Marketing doesn't understand that there's more work for us to do other than just new product development.”
• “Marketing personnel should spend their time at the country club and in bar rooms. This will allow us in engineering...

Table of contents

• Cover
• Table of Contents
• Title Page
• Copyright
• Dedication
• Preface
• Part 1: PROJECT MANAGEMENT METHODOLOGIES
• Part 2: IMPLEMENTATION OF PROJECT MANAGEMENT
• Part 3: PROJECT MANAGEMENT CULTURES
• Part 4: PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES
• Part 5: NEGOTIATING FOR RESOURCES
• Part 6: PROJECT ESTIMATING
• Part 7: PROJECT PLANNING
• Part 8: PROJECT SCHEDULING
• Part 9: PROJECT EXECUTION
• Part 10: CONTROLLING PROJECTS
• Part 11: PROJECT RISK MANAGEMENT
• Part 12: CONFLICT MANAGEMENT
• Part 13: MORALITY AND ETHICS
• Part 14: MANAGING SCOPE CHANGES
• Part 15: WAGE AND SALARY ADMINISTRATION
• Part 16: TIME MANAGEMENT
• Part 17: MANAGING INNOVATION PROJECTS
• Part 18: ASSESSING PROJECT MANAGEMENT MATURITY
• Part 19: INDUSTRY SPECIFIC: CONSTRUCTION
• Part 20: INDUSTRY SPECIFIC: DISNEY THEME PARKS
• Part 21: INDUSTRY SPECIFIC: THE OLYMPIC GAMES
• Part 22: INDUSTRY SPECIFIC: THE COMMERCIAL AIRCRAFT INDUSTRY
• Part 23: INDUSTRY SPECIFIC: AGILE/SCRUM PROJECT MANAGEMENT
• Index
• End User License Agreement