1 ENG8208 Advanced Engineering Project Management Assignment 2 – Semester 1 2017 Date due: 09 June 2017 Weighting: 60% (600 marks) Special Instructions 1. Answer all questions, and ensure that your answers have the coverage, and are in the format, requested. 2. Present your own ideas. 3. Your answers should be properly referenced and reflect that you have undertaken research outside the study material. You are to use the Harvard AGPS referencing system, information which is available from the USQ Library webpage: http://www.usq.edu.au/library/referencing/harvard-agps-referencing-guide 4. You will require a table of contents for your answers to Question 1(a), and Question 2. 5. You will require an abstract and table of contents for your answer to Question 1(b). 6. You should include a word count for all questions. Word counts exclude the List of References. 7. It is expected that your written answers will be produced using electronic word processing. The ‘.pdf’ format is preferred for written answers. 8. Any calculations should be clearly explained. 9. Assignments will be submitted electronically via the ENG8208 Study Desk. 10. Please note that if plagiarism or cheating is detected in this assignment it will result in no marks for the assignment. Students should ensure they clearly understand the meaning of plagiarism and cheating. In particular, students should understand that while they may collaborate with other students on the conceptual ideas in their assignments, the final written report submitted by each student must be unique, and must not contain the written material of (a) any other student in the course, or (b) by any other person without due acknowledgement. Assignments are expected to be submitted to plagiarism detection software at the time of submission. For further information refer to the University’s Academic Integrity Policy 13752PL 11. Applications for extensions of assignment submission must be made in writing to the Course Examiner together with accompanying documentation as specified in the Assessment of Compassionate and Compelling Circumstances Procedure. The application and all supporting documentation must be submitted electronically. An Assignment submitted after the deadline without an approved extension of time will be penalised. The penalty for late submission without a pre-approved extension will be specified in the assignment instructions. The penalty for late submission is a reduction by 5% of the maximum Mark applicable for the Assignment, for each University Business Day or part2 Business Day that the Assignment is late. An Assignment submitted more than ten University Business Days after the deadline will have a Mark of zero recorded for that Assignment. Course Examiners may refuse to accept Assignments for Assessment purposes after Marked Assignments and/or feedback have been released. If Compassionate and Compelling Circumstances appear to exist, Course Examiners must consider these before refusing to accept an Assignment. See: http://policy.usq.edu.au/documents/14749PL#4.2_Assignments3 Question 1 (450 marks) Background Because you have performed very well in your project review task, you have been recently appointed to a position as a program manager in an organisation that provides project management services in planning, designing and implementing engineering projects. The projects for which the organisation provides its services encompass all disciplines of engineering, plus related disciplines like construction and asset management. Your main responsibility is the management of a program of approximately six (6) engineering projects in your organisation. You have just taken over this program, and are keen to make a favourable impression to the company’s Board of Directors. Three (3) of the six (6) projects in this program are progressing well towards a satisfactory result. The remaining three (3) projects, Project A, Project B and Project C require attention. The information given below about each project is an outline only. You are expected to develop additional details about each project as part of your answer, and for each project nominate an example project (for example, a suitable development project for Project A) for which to develop your answers. Further information is in sub-questions 1 and 2 of Question 1(a). Project A Project A is the development of a specialised facility, of about $4 million in value, of approximately 18 months’ planned duration. It is 35 per cent completed. Earned Value analysis shows that the project is not achieving its planned cost or progress targets. Installation of the project is also not achieving quality requirements. One of the principal reasons for the delay in the development of the facility is that it uses a number of specialised components that are only obtainable from selected overseas suppliers. Some of these components must be delivered on time to maintain the project’s expected delivery schedule. For a number of reasons, there was a delay in ordering these components. This delay has been exacerbated by industrial disputes in the supplier organisations and a long-running maritime dispute that threatens to delay their delivery. There are also a number of other risks associated with this project. There was initially only a quite basic business case, rudimentary project charter, and a poor definition of expected project outcomes. There are also considerable exchange rate risks associated with any delays and the potential for a competitor to enter your client’s market should the facility not be completed within a reasonable period of time. Project B Project B is a major engineering development, which is about $20 million in value and is expected to take about four years from the start of planning to final completion. Your firm has been appointed by the developer of this project to manage the planning, design and delivery of this project. At the moment, the planning phase of this project, which is expected to take about 12 months, is 50 per cent complete. While the project is currently progressing well in terms of time, cost and quality, there are a number of sustainability and stakeholder management issues with it. The development has been adjacent to a rural residential area near a large city, which is highly desirable and attracts high property prices. The residents attracted to this area are concerned about noise and traffic during from the proposed development and are passionate about their environment4 and the beauty of this area. They have formed a Citizen’s Action Group that is well connected and is actively campaigning against this development and for the preservation of the habitat of a rare wallaby species that is native to the area planned for the development. Therefore, even though the proposed development is expected to be a positive addition to the city and will employ many people who live there, there is considerable and well-organised opposition to it in this particular location. Mindful that similar well organised actions by residents with respect to other projects has in a number of cases prevented the development from occurring, the client has entertained the option of moving the project some 10 kilometres further from the city. This option will cost an estimated $2.0 million more to develop than the planned development as it requires considerably more earthworks, development of new utility facilities and will require the development of a good access road. Project C Project C is a small (about $1.5 million in value) but complex internal project that has as its purpose the development of a new contract tendering, offer and management system that your organisations can use to facilitate the tendering process for projects and use to facilitate the letting and management of contracts for client organisations. This system is quite complex and has a number of interrelated components. While it is being managed by staff of your organisation, there are a number of independent business analysts and software experts assisting with its development. They have been working to their own understanding of requirements of the sub-systems for which they are responsible, and have been given only a basic understanding of the interfaces between their developments and the other components of the system. There is considerable work required to further develop those interfaces. These issues have been complicated by differences between the development staff and organisational management about the direction of the project, and by numerous requests by senior management of your organisation for scope and functional changes. The process for controlling, managing and implementing changes has also been poor. As there is at least one competitor to your organisation known to be developing a similar system, it is essential that your organisation completes the development of this system in a timely manner. Your Organisation The Board of Directors of your new organisation has recently changed. The new Board has decided that the organisation should develop a more focused strategic direction, and wishes to focus on projects with strong business cases, well defined project charters and very clear objectives that must be agreed to by key stakeholders. All projects must be very closely aligned to the engineering disciplines represented in the organisation. There is a strong focus on minimising risks to the organisation and on effective communication in all projects. In addition, there is a strong focus on project completion. The Board is committed to completion of existing projects, and will provide the necessary resources to compete these projects, even at a potential loss, in order to maintain and build its client base. It wants to be prudent in the way that it manages its projects, and to build a platform for a successful future. The Board therefore urgently requires that you review these projects and present a report on what steps you will take to ensure that all three projects that require attention will be completed on time and to the required quality. Losses are to be minimised. Internal projects are to be carefully scrutinised to see whether they should be outsourced if that is a better option. You are accordingly required to undertake a review of all three (3) projects to ascertain whether they fit the organisation’s new strategic direction and what action should be taken given the potential risks associated with them.5 Your Task Question 1 (450 marks) Question 1 (a) (3000 to 4000 words) (300 marks) Analysis of Performance of the Selected Projects 1. Nominate three (3) example projects for discussion. (30 marks – 10 marks per project) Nominate an organisation of your choice, and the engineering discipline or disciplines in which it is operating. Nominate three (3) suitable projects to use as examples for your discussion. These projects should be consistent with the type of engineering disciplines in which your organisation operates. 2. Define key characteristics of each project nominated. (75 marks – 25 marks per project) For example:  Fit with current organisational strategic direction  Estimated cost  Estimated duration  Expected quality of deliverables  Current expenditure, percentage complete, quality standard achieved  Key stakeholders  Main risks  Impact on the environment and society – short term and long term  Complexity  Other factors (for example, human resource, communications, procurement)  Project integration factors  Any other significant factor impacting on the project 3. Review each of the projects nominated in the background with respect to their alignment with corporate direction and the principles of good project and program management. (105 marks – 35 marks per project) Areas to consider in this review include, but are not limited to:  Project charter and plan  Business case for the project in accordance with the new strategic direction of your organisation  Identification of project stakeholders and their role in the project  Potential to be completed within the constraints of time, cost and quality  Likelihood of the project’s scope being changed as a result of stakeholder issues and requirements  Change control requirements  Potential human resource, communications and procurement issues that may impact on delivery of the project  Potential risks in delivering the project and subsequent to delivery of the project6  Sustainability of the project and its outcomes  Other matters considered important to the achievement of these objectives 4. Develop a plan to manage each of the projects to achieve project objectives. (90 marks – 30 marks per project) This plan should take into account each of the issues described above, and summarise the following points:  Summary of issues for each project as determined by analysis  Fit of the project with corporate direction  Consequences of not completing the project within key performance indicators  The best approach for managing the project, with particular focus on the key issues with the project  Whether the organisation should undertake any future projects of the type of project that is being reviewed SUB- TOTAL 300 MARKS Question 1 (b) (1000 to 1500 words) (90 marks) Report to Board of Directors Write a report to the Board of Directors of your organisation that:  Summarises your analysis of each of the three (3) projects you have been asked to assess. (30 marks – 10 marks per project)  Describes your proposed solution for each project, including the feasibility of implementing it. (30 marks – 10 marks per project)  Discusses, from an overall program management perspective, how projects within your program can be better assessed, prior to acceptance by the organisation, for feasibility and alignment with the Board’s strategic direction for your organisation. (30 marks) SUB- TOTAL 90 MARKS Written Communication for Question 1 (60 marks) Abstract (Question 1b only) and tables of contents (both parts of Question 1) (10 marks) Structure (10 marks) Language, style, spelling (10 marks) Completion in within word count (10 marks) Setting out and referencing (20 marks) SUB- TOTAL 60 MARKS TOTAL MARKS FOR QUESTION 1 450 MARKS7 Question 2 (2000 to 2500 words) (150 marks) Discuss the current and future project management challenges and opportunities for three (3) of the following current and emerging issues in project management: 1. Sustainability 2. Lean construction 3. Advanced project management information systems 4. Knowledge management. You should include, in your discussion of each of your selected issues, your views with respect to the following:  The implications of the selected issue for current project management practice.  The implications of the selected issue for future project management practice.  How project management practice may change over the next 20 years as a result of the challenges and opportunities provided by the selected issue.  How the project manager’s role may change in the future as a result of the challenges and opportunities provided by the selected issue. You will need to provide references for the discussion of each issue. At least two (2) of the references for each issue that you discuss are required to be from sources other than the Course Readings that are available on the Study Desk. Marking Identification of issues, discussion, analysis (120 marks) For discussion of each issue: (40 marks) SUB- TOTAL FOR DISCUSSION OF THREE (3) ISSUES 120 MARKS Written Communication for Question 2 (30 marks) Structure (abstract, introduction, body, conclusion) (10 marks) Language, style, spelling (10 marks) Setting out and referencing (10 marks) SUB- TOTAL 30 MARKS TOTAL MARKS FOR QUESTION 2 150 MARKS