1- what it is the problems of this case 2- analyize the problems 3-explain the p
ID: 356161 • Letter: 1
Question
1- what it is the problems of this case
2- analyize the problems
3-explain the program design and is it part of the soulations of the prblem
4- Explain the project plan, and is it part of the soulation or not
A PROJECT MANAGEMENT AND CONTROL SYSTEM FOR CAPITAL PROJECTS Herbert F. Spirer and A. G. Hulvey Introduction their products. In the Spirits Group, large, continuous- Heublein, Inc., develops, manufactures, and markets process bottling plants are the rule; in the Food Service consumer food and beverage products domestically and and Franchising Group, small fast food restaurants are internationally. The business of Heublein, Inc., their the "manufacturing plants." sales revenue, and some of their better known productsThe amount of spending for capital projects and are shown in Figure 1. Highlights of Figure1 include: support varies greatly among the Groups, as would be The four major businesses ("Groups") use different man- expected from the differences in the magnitude of sales ufacturing plants, equipment, and processes to produce revenues. Heublein, Inc. Beverage operations 66% of sales Food operations 34% of sales Spirits groUD $992 M Wnes groUD $280 M Food service/ franchising goup S520 M Grocery products grouD $131 M Beaulieu Wines Inglenook Wines Colony Wines Jacare Wines Kentucky Fried Smirnolf Vodka ose Cuervo Tequila Black Velvet Whiskey Regina Wine Vinegar A1 Sleak Sauce Grey Poupon Mustard Ortega Mexican Foods Figure1 Heublein, Inc.Explanation / Answer
1.The problem of the case
Some major projects exceeded the budget
There was no optimal utilisation of the capital fund as depreciation legislation was not keeping pace with the inflationary rise in cost.
2. Project budget exceed when there is no proper plan in place. And project plan should be developed before initiating a project. Which would help and synchronising the activities of project according to interdependence of activities. Developing a network diagram for the activities of project also helping reducing the cost by avoiding delay in the project.
When there is no optimal utilisation of the capital fund the depreciation of assets and rise and inflation due to macroeconomic factors adds up to the cost of the project.
3. Yes program design is a part of the solution of the problem
There are four phases in the project design. Phase 1 being the educational overview for engineering department manager. Managers were given training with regards to project management principle, corporate objectives, and approach for project management and control system was discussed. Phase 2 was PM&C system design the approach towards the project was emphasised and it was expected that engineers and managers of the department would reach a consensus before developing a project plan. Phase 3 was project plan development it is the output of phase 2 your discussion was made with regards to how to introduce a PM&C system and how to make a project plan. Phase 4 was implementation, implementation of the project is very important according to the project plan discussed in phase 3.
4. Yes project plan is the part of solution
As project plan includes activity like developing program structure, developing programs cost, formation of network diagram, scheduling of project, resource allocation, organisation and accountability with the help of work breakdown structure, control system. Such activities will help to save cost associated due to delay of project resulting in project that is within a budget
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.