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MIMIC project manager realized the project resources are inadequate and unproductive. Meanwhile, MIM project manager insists that MIMIC should start different activity in parallel to compensate the delay Of last month and mitigate the risk of overall project delay. MIMIC project manager has promised to MIM to increase resources and start parallel activities. Contractual penalty for major milestone delays has been explained in Exhibit 4. There is no reward or incentive model in the contract that motivates MIMIC to knish the project earlier.
Accordingly, MIMIC will not gain of fast delivery unless they want to unlock resources from this project and allocate them in other (I. E. New) projects. Therefore, MIMIC project manager should plan resources carefully in order to deliver project just on time. Both too early and too late delivery cause extra cost for MIMIC. To sum up, there is no detailed plan, resources are insufficient and unproductive and one month has passed with a little progress. The add-hoc planning caused improper resource planning, jack of on-going control over resource productivity and project progress. . What could the consequences of ad-hoc project planning be to various stakeholders? MIMIC: Project delivery delay will cause contractual penalty (Exhibit 4) and longer project on-going cost (overhead) for MIMIC. Accordingly, MIMIC will gain less profit or even loss. Also, MIMIC reputation may damage. Reputation is important for MIMIC to get new projects and win tenders. MIM: If the project does not finish on-time Minim’s building will not be ready for the next academic term opening.
Student classes, faculty or administration blocks may not be ready to function and give services to students from June 1, 2013. Dysfunctional facility will impact Minim’s reputation, and make students and Minim’s board of directors distrustful to Minim’s management and leadership. 3. Using the data given in Exhibit 3 and Exhibit 5 of the case, how should you plan for a typical work-front of 2,000 square meters external surface area and 1,743 square meters internal surface area? Current plan: Activity duration calculation based on Exhibit 5
Overall duration according to above calculation of each activity duration and Exhibit 3 According to above plan resources are not sufficient to finish 2* 2000 external and 2* 1743 internal surfaces per month. Activity a scaffolding installation of next surface can start right after scaffolding removal (activity H) starts for current surface. This will save 2 days of scaffolding occupation per surface. (16 -2)*14+10* 14=336 days or 1 1 months (336 days/30 days) which does not fulfill the project due date.
However, one month has passed and MIMIC needs o put the project in fast track for compensation. 4. Explore various alternatives of putting projects on the fast track using the nature of the site and the project work. What could the financial and operational implication of put-ting the project on the fast track be? 5. Given a choice, how would you have planned the project differently? Current plan: Assumption: Internal surface will be finish less than 11 but more than 10 months. I assumed full month salary (overhead) fell be paid for internal surface resources (1 1 months).