Project Management Final Report Fall 2012 – SKEMA Raleigh

GreenWulf Project

Sustainable energy on Campus

Ibrahim Abubakari Caroline Bilet Arthur Lanos Thomas Leportier Amélie Meppiel Camille Perencin Medhi Thadi Kristin Torin

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Table of content

Part I Project Plan A. Project Charter / Scope statement 1. Objectives of the project, requirements definition and constraints 2 Stakeholder analysis 3. Keys to success

B. Project Definition 1. Solution/ work product description 2. Work Breakdown Structure 3. High Level schedule 4. Network Diagram and Critical Path 5. List of Milestones and Dependencies including dates 6. Risk Assessment / Response

C. Finalized schedule 1. Resource requirements and resolution of resource allocation problems 2. Rolled up budget estimates

Part II Project Update A. Status report 1. Narrative of key events to date 2. Performance indices 3. Project schedule status

B. Problem solving 1. Description of key problems and issues encountered 2. Responses to the problems and how they affected the project

C. Management issues 1. Problem description 2. Responses to the issues and how the responses impacts the rest of the project

D. Revised project estimates 1. Projected cost 2. Schedule

E. Summary 1. Keys to successfully completing the project 2. Forecast at completion 3. Formal statement of confidence and risk

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Part I Project Plan

A. Project Charter/Scope statement

1. Objectives of the project, requirements definition and constraints

Project concept

North Carolina State University has recently launched a vast project of transforming the campus into

a green university. The first steps implemented were passive measures such as turning off heating in

unoccupied buildings during holidays. Now NCSU governance is looking for a more proactive way in

order to be awarded “green campus of 2014”. This is why we have been contacted by NCSU in order

to turn Carmichael complex into a sustainable sport center. Our concept is simple: the energy

developed by students while working out on cardio equipments such as dynamo bikes and treadmills

will be transformed into electricity and used for the gymnasium power needs.

Project boundaries

In order to be clear with our stakeholders with what we are responsible for as part of this project, we

have established the following boundaries:

IN OUT

• Buy, install and connect the equipment in one fitness room

• Ensure that there are actual savings of energy

• Communicate with stakeholders on the progresses made

• Daily maintenance and functioning

• Communication on the modernization to end users

• Student reward system (incentives to come to the new gym)

Our job will be restricted to the procurement and installation of new bikes and treadmills able to

produce a quantity of electricity significant enough to reduce the electricity bills of the complex. In

order to do so, we will first do a feasibility studies and benchmarking of suppliers. Then we will take

care of all necessary modifications to be done to the room before installing the new fitness

equipment. It is our responsibility to ensure that bikes and treadmills will generate energy savings.

However, it is not our responsibility to ensure the daily maintenance once the equipment is ready to

use. We won’t be in charge of the communication within NCSU community about this renovation. In

addition, we thought about a system of student reward based on the electricity they will produce in

order to create new incentives for students to go to the gym. However, it is not included in the

current scope. If our stakeholders which to implement this additional time and/or budget must be

allocated.

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Project objectives

We have two quantifiable objectives to measure the success of our project:

- Electricity bill must be reduced by 30% - The number of users should also increase by 15%

Project requirements and constraints

While progressing through our project, we have to take into account several requirements and

constraints set by NCSU.

Our requirements are:

- Keep the existing building. It is impossible to undertake renovation work such as increasing the size of the fitness room. The building and walls must stay as they are now. Hence we need to carefully execute the feasibility study in order to have the new equipment fitting 100% to the existing room.

- Preserve the users’ experience during modernization process. We should try to minimize the disturbance caused to gym users during our project. To do so, most of the work will be done during summer holidays when most of students are not on campus. In addition, our project is to renovate only one fitness rooms. To other rooms with similar equipments are still available during the project.

- Users should be able to monitor their energy production. It is nice to say to users that they are producing electricity but it is even better to show them exactly how much they produced. This will be a new source of motivation for doing exercise and will help to achieve the increase in number of user. This will have to be taken into account when ordering the equipment.

- Modernized rooms should be able to gain environmental accreditation. The production of green electricity must be significant enough for the building to be considered as eco-friendly. This goes along with the objective the University to gain the label of “green campus of 2014”.

In addition to these requirements, we have to deal with the following constraints:

- Make real energy savings (performance). As we said above, the bottom line of the project really is to produce electricity.

- Costs have to stay reasonable. The cost of our project if part of a bigger budget released by NCSU for their green campus program. It is considered as one of the top priority project for the University. Hence the funds available are fairly important but costs have to be optimized.

- Modernization has to be limited in time (3 to 4 months). The new room must be open during the first few month of fall semester in order to be available during most of the scholar year.

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Project Matrix - Time, cost, performance trade-off assessment

Based on these constraints, we have established our project priority matrix:

Time Performance Cost

Constraint

X

Enhance

X

Accept X

Performance is the key for this project. The equipment must produce enough electricity to be used

into the Carmichael complex for us to attain our objectives.

Cost must be enhanced. Our project is part of a bigger one within the University who is conducting

several other projects. So far budget has been allocated to most of these NCSU projects so the

University is limited in terms of releasing additional budget. In addition, NCSU cannot increase too

much tuition fees in order to finance the project. Also, alumni donations are limited.

The project’s duration is accepted. Still the project should avoid large delays but in the hypotheses it

will happen and the room will be closed for longer than expected, 2 other rooms are still available.

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2. Stakeholder analysis

The chart below provides a global view of our project and its stakeholders.

We have identified 5 major stakeholders on our project:

- NCSU Governance: our sponsor for this project. Without them the project won’t exists since they provide the budget for it. They champion the project and are a major spokesperson to promote it. They play a crucial role for our project, especially during early phases of scope development.

- Carmichael staff: is also an important stakeholder. The project is done under their supervision since it will be done inside the building. Also, they will provide us empty rooms for the storage of equipments free of charge.

- Student Body: It will play a key role as voice of the students as it represents our end users. It has a much smaller authority on the project than the previous two stakeholders.

- Student (end users): One of the objectives of our project is also to please students. Their comments should also be taken into account.

- Alumni network: To some extent, alumni are also a distant stakeholder. They are ambassadors of the University and will contribute to develop the green image of NCSU outside the campus. Some of their contributions will also fund the upgrading of the Carmichael Gym.

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3. Keys to success

Technological Performance

The first key to success of this project is to assure and deliver the expected performance in terms of

electricity production. NCSU is investing money on this project not only to build a better image but

to also have real and measurable gains. Thus, we have go in-depth during the preliminary studies in

order to be sure to comply with our energy savings objectives.

Time management

In addition, time management is important and requires to carefully planning the project schedule.

We can’t afford to accumulate delays during the project and deliver the room in November would be

considered as a failure. Indeed, we will have not preserved the end-users experience of the gym.

Communication with stakeholders

Last but not least, communication with stakeholders is crucial, in particular with our sponsor at the

beginning of the project when elaborating the scope and all necessary documentations. Reports

must be done on a regular basis for the stakeholders to follow how the project is progressing. It

should also be done for important steps such as ordering the equipment (a major post of cost) or

beginning the installation.

B. Project definition

1. Solution / work product description

To begin the GreenWulf project, 3 sets of deliverables were designed to guide the project team in

meeting the objectives and expectation of this project.

First on the list of deliverables is the Feasibility study. In this stage, the team conducts preliminary

studies and report about the project. We research about energy (present consumption of the sports

complex and about renewable energy), provide a cost analysis of the project and look at technical

feasibility studies and the fall out studies.

Second deliverable is the Benchmarking documentation for the equipments. After searching for

equipment suppliers and select some of them, order quotes, we will present a summary for review to

the NCSU team.

We finish with the project completion which happens after testing has been done both by Green

Wulf and the end users and a period of review and acceptance 7 days after the launch of the fitness

room.

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2. Work breakdown structure

WBS Nom de la tâche Duration Start Finish

1.0 GreenWulf Project 65,43 days Mon 03/06/13 Wed 04/09/13

1.1 Feasibility studies 17 days Mon 03/06/13 Tue 25/06/13

1.1.1 Preliminary Studies 10 days Mon 03/06/13 Fri 14/06/13

1.1.1.1 Energy Study 10 days Mon 03/06/13 Fri 14/06/13

1.1.1.2 Costing 4 days Mon 03/06/13 Thu 06/06/13

1.1.1.3 Technical feasibility Study 7 days Mon 03/06/13 Tue 11/06/13

1.1.1.4 Fallout study (project Benefits) 2 days Mon 03/06/13 Tue 04/06/13

1.1.2 Preliminary report 7 days Mon 17/06/13 Tue 25/06/13

1.2 Fitness Equipment 33 days Wed 26/06/13 Mon 12/08/13

1.2.1 Benchmarking 11 days Wed 26/06/13 Thu 11/07/13

1.2.1.1 Supplier search 5 days Wed 26/06/13 Tue 02/07/13

1.2.1.2 Quote requests 2 days Wed 03/07/13 Fri 05/07/13

1.2.1.3 Supplier selection 2 days Mon 08/07/13 Tue 09/07/13

1.2.1.4 Banchmarking documentation 2 days Wed 10/07/13 Thu 11/07/13

1.2.2 Fitness Equipment order 21 days Fri 12/07/13 Fri 09/08/13

1.2.3 Fitness equipment reception 1 day Mon 12/08/13 Mon 12/08/13

1.2.3.1 Bikes reception 3 hrs Mon 12/08/13 Mon 12/08/13

1.2.3.2 Treadmills reception 3 hrs Mon 12/08/13 Mon 12/08/13

1.2.3.3 Equipment Storage 1 day Mon 12/08/13 Mon 12/08/13

1.3 Equipment intallation 6,43 days Tue 13/08/13 Wed 21/08/13

1.3.1 Old equipment tranfer 1,14 days Tue 13/08/13 Wed 14/08/13

1.3.1.1 Removal of old equipment 3 hrs Tue 13/08/13 Tue 13/08/13

1.3.1.2 Disposal of old equipment 3 hrs Tue 13/08/13 Tue 13/08/13

1.3.1.3 Room cleaning 2 hrs Tue 13/08/13 Wed 14/08/13

1.3.2 New equipment set-up 5 days Wed 14/08/13 Wed 21/08/13

1.3.2.1 Equipment Installation 1 day Wed 14/08/13 Thu 15/08/13

1.3.2.2 Electrical installation 4 days Thu 15/08/13 Wed 21/08/13

1.3.2.2.1 Layering 2 days Thu 15/08/13 Mon 19/08/13

1.3.2.2.2 Electrical wiring 2 days Mon 19/08/13 Wed 21/08/13

1.3.3 Room cleaning 2 hrs Wed 21/08/13 Wed 21/08/13

1.4 Closure of the project 9 days Wed 21/08/13 Wed 04/09/13

1.4.1 Testing by Greenwulf 1 day Wed 21/08/13 Thu 22/08/13

1.4.2 Testing by Stakeholders 1 day Thu 22/08/13 Fri 23/08/13

1.4.3 Lauch 1 day Fri 23/08/13 Mon 26/08/13

1.4.4 Review and acceptance 1 day Tue 03/09/13 Wed 04/09/13

We have divided the Green Wulf project in 4 main subprojects: Feasibility studies ending with the

preliminary report, Fitness equipment which contains the suppliers benchmarking process and the

equipment order, Equipment installation including also electrical installation and project closure with

testing and acceptance by end users.

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3. High Level schedule

The picture above shows the complete Gantt chart for the initial project. We can see that most of

tasks cannot be done simultaneously. The only period when we have a bit of slack is at the very

beginning with the preliminary studies.

4. Network Diagram and Critical Path

The picture below gives a global view of the Network Diagram and critical path (for a more precise

one showing name of tasks, please refer to the MS project file). As we can see, on 24 tasks, only 5 are

not critical. Thus we can say that our project is very sensitive and any delay in one task will delay the

entire project. This can be explained by the nature of the work performed during the project. For

example the electrical installation tasks of layering and wiring can’t be done before the equipment is

installed in the room.

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5. List of Milestones and Dependencies

Milestone Dates

Preliminary report 1.1.2 Mon 17/06/13 – Tue 25/06/13(7 days)

Benchmarking documentation 1.2.1.4

Wed 10/07/13 - Thu 11/07/13 (2 Days)

Fitness Equipment reception 1.2.3

Mon 12/08/13 (1 Day)

Electrical wiring 1.3.2.2.2 Mon 19/08/13 - Wed 21/08/13 (2 Day)

Testing by GreenWulf 1.4.1 Wed 21/08/13 – Thu 22/08/13 (1 Day)

Preliminary report is our first milestone. It is the result of all our research and will condition the

entire project especially the requirements for the equipment that will be used for the selection of

suppliers. This brings us to the second milestone, the benchmarking documentation. It is crucial that

we order the good equipment, without that the project will be a failure. For these 2 first milestones,

communication with our sponsor will be important.

The third one is the fitness equipment reception after delivery. We need to check that the equipment

is not damaged and match the order. All the installation will depend on good reception of the

equipment.

The fourth milestone is electrical wiring, the last task in terms of installation. We will be able to check

if the installation has been done properly and that we are ready for testing the equipment.

Testing by Green Wulf is our last milestone. This is the last task were we can potentially readjust the

equipment before opening.

6. Risk Assessment / Response

A major project of like this can be accompanied by certain amount of unforeseen risks, so we came up with this risk analysis of the GreenWulf project and its remedies:

RISK ASSESSMENT FORM

Risk event Likelihood Impact Detection difficulty

Total

Accident/injuries 5 4 5 100

Technical hitches 4 3 4 48

Bad reviews 2 4 3 24

Lack of funds 3 5 3 45

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RISK RESPONSE FORM

Risk event Response Contingency plan Trigger Who is responsible

Accident/injuries Reduce First aid assistant present

Fall, cuts & electric shock

Thomas

Technical hitches Refer Technical assistant

Power cuts Ibrahim

Bad reviews Reduce Regular report to stakeholders

Criticisms during end-user testing

Camille

Equipment malfunction

Transfer Technical assistant then if

too serious, Reorder

equipments

Equipment doesn’t work

Amélie

Based on this risk assessment, accidents and injuries is most likely of all uncertain events to occur at 100 points and the least being bad reviews with 24 points.

C. Finalized schedule

1. Resource requirements and resolution of resource allocation problems

The resources required to achieve the project can be split into two main categories:

- What can be done by our team (group Green Wulf)

- What need to be outsourced because we don’t have the required skill sets (group External

Contractors and Supplier)

Group Green Wulf

The beginning of the project consists of doing feasibility studies, selecting the good supplier, the

purchase of the equipment and testing the new room before opening. All these tasks are done by our

team.

In order to transform one fitness room into a sustainable one, Green Wulf needed to invest in

Dynamo bikes and treadmills.

The fitness room in Carmichael measures about 1,200 ft2.

We decided to furnish it with fifteen Dynamo bikes and fifteen treadmills to keep the same capacity

as it was. The procurement process is also assured by our team.

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Group External Contractors and Supplier

For the rest of the project, we need to hire specialized people for the equipment and electrical

installation as well as for the cleaning.

- Equipment installation

We hired a crew to remove the old equipment and install the new ones.

- Electrical installation

We needed to set a new electrical installation up to optimize the energy produced by people on the

Dynamo bikes and the treadmills. Modernizing the room will also reduce the electricity bill by 30%

and enable NCSU to gain an environmental accreditation.

The new electrical installation lied in wiring and layering.

The electrical wiring and layering consist of choosing the right size receptacle boxes, running cable

throughout the room, and making the electrical connections through the walls and the floor.

Moreover, the crew will have to repaint the walls and cover the floor back as well.

- Cleaning

Besides, we called on a cleaning service twice. First to clean the fitness room after the crew removed

the old equipment and then, before installing the new ones.

The table below summarizes what are our resource requirements:

Resource Name Type Cost Group Max. Units

Std. Rate Ovt. Rate

Cost/Use Accrue At

Research and documentation

Work 17 220,00 € Green Wulf 400% 60,00 €/hr 0.00 €/hr

0.00 € Prorated

Testing Work 840,00 € Green Wulf 100% 60,00 €/hr 0.00 €/hr

0.00 € Prorated

Equipment installation

Work 1 520,00 € External Contractor

300% 80,00 €/hr 0.00 €/hr

0.00 € Prorated

Electrical installation

Work 3 920,00 € External Contractor

200% 140.00

€/hr 0.00 €/hr

0.00 € Prorated

Cleaning Work 300,00 € External Contractor

200% 75.00 €/hr 0.00 €/hr

0.00 € Prorated

Fitness equipment

Work 33 150,00 € Supplier 100% 0.00 €/hr 0.00 €/hr

33 150.00 € Start

Thanks to a good planning process, we have been able to make accurate estimates concerning our

resource. The only one who would have been over allocated is Research and documentation since

this resource is used a lot at the beginning. However, we have enough team members to be allocated

to every task.

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2. Rolled up budget estimates

Cash Flow statement

The major cash flow is incurred when the equipment is ordered. Afterwards, there are no costs until

the equipment is received.

Phase 1: documentation (preliminary report and benchmarking)

We had established some researches on this market in order to be well informed, to benchmark the

potential suppliers so that we would choose the optimized solution.

All this documentation process cost $17,220.

Phase2: order

Regarding the new equipment, one dynamo bike costs $1,200.

$1,200 x 15 = $18,000.

One treadmill costs $1,000 (x15 = $15,000)

$1,000 x 15 = $15,000.

The delivery costs $75 for each.

$75 x 2 = $150.

Phase3: installation (receiving/installing equipment, electrical installation and cleaning)

As far as the old equipment is concerned, we hired a one truck with a four-man crew for the whole

day, meaning eight hours.

Their minimum service was three hours for $360. So we needed five additional hours. The additional

hour cost $80.

$360 + (5 x $80) = $760.

03 June

10 June

17 June

24 June

01 July

08 July

15 July

22 July

29 July

05 Augu

st

12 Augu

st

19 Augu

st

26 Augu

st

02 Septemb

er

09 Septemb

er

Cost 6720 2940 2100 2100 1680 34830 0 0 0 0 3490 2670 0 420 0

0

5000

10000

15000

20000

25000

30000

35000

Do

llars

Cash Flow statement

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As regards to the new equipment installation:

One Dynamo bike weighed 110 pounds x 15 = 1,650 pounds.

One treadmill weighed 220 pounds x 15 = 3,300 pounds.

In order to carry 4,950 pounds of equipment, we called on the same team for the whole day as well.

$760 x 2 = $1,520.

Finally, two specialized people were hired to complete the electrical wiring and the layering. The

wiring lasted four days as well as the layering.

They were paid $1,960 each.

$1,960 x 2 = $3,920.

The materials for the complete rewiring and layering job were included.

As for the cleaning service, it was composed of two people. They brought their own products, which

were included.

For a 1,200ft2 room, the minimum service was two hours at $75 per hour.

We decided to hire the team for two hours for two different days: after removing the old equipment

and before setting up the new ones.

$75 x 2 hours = $150 for the first day.

$150 x 2 = $300 for the second day.

Phase 4: testing

This is the last phase of the project. We have to test our equipment to assure security of our dynamo

bikes and treadmills. This is done by our team for a cost of $840.

EQUIPMENT ORDER

CLEANING SERVICE

EQUIPMENT

INSTALLATION

ELECTRICAL

INSTALLATION

15 dynamo bikes $18,000 15 treadmills $15,000 Delivery cost $150

One 1,200 ft2 room 2 hours ($75/hour) For two days

One truck with a 4-man crew included 3 hours for $360 + (5 x $80) For two days

4 days layering and wiring by 2 specialized people at $1,960 each

$33,150 $300 $1,520 $3,920

Total estimated cost baseline regarding external contractors = $38,890

Total estimated cost baseline included Green Wulf research and external contractors: $56,950.

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Part II Project update

A. Status report

1. Narrative of key events to date

Prior to the start of Green Wulf project, the team had followed a seminar in order to perfect

their skills in all aspects of Project Management, lead by the PM Guru, Steve Del Grosso.

Thanks to his effective training and the previous work experiences of team members on similar

projects, Green Wulf has managed to make rather realistic estimates for all the project tasks. Thus, at

the time of the project status, July 17th 2013, GreenWulf project is on schedule and under costs.

The team also managed to write efficiently the preliminary research documents thus shortening the

baseline schedule for the first project milestone. However, the technical feasibility study had to be

extended from 7 to 9 days in order to secure the knowledge that the estimated energy savings

objective will be met, as “failure was not an option”. We had our project sponsor review our report

in order to provide us with the “green light” to move forward on the project.

As for the second milestone, the team as efficiently researched the equipment suppliers but

the first quotes received were much higher than anticipated. Therefore, Green Wulf team had to

negotiate during two more days in order to obtain the most competitive quote possible. The selected

manufacturer is located in Virginia which will minimize delivery costs compared to some other

providers located in California.

At the date of the project status, the equipment has been ordered after submitting the

benchmarking documents to the NCSU governance, our sponsor, for approval. They were satisfied by

our respect of the project priority matrix so far, as the costs were effectively enhanced and the

project had not been too much delayed.

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2. Performance indices

Status Report : July 17th, 2013

WBS Task % Complete

EV AC PV CV SV

1.1.1.1 Energy Study Finished 4 200.00 € 3 780.00 € 4 200.00 € 420.00 € 0.00 €

1.1.1.2 Costing Finished 1 680.00 € 1 680.00 € 1 680.00 € 0.00 € 0.00 €

1.1.1.3 Technical

feasibility Study Finished

2 940.00 € 3 780.00 € 2 940.00 € -840.00 € 0.00 €

1.1.1.4 Fallout study Finished 840.00 € 420.00 € 840.00 € 420.00 € 0.00 €

1.1.2 Preliminary

report Finished

2 940.00 € 2 100.00 € 2 940.00 € 840.00 € 0.00 €

1.2.1.1 Supplier search Finished 2 100.00 € 1 680.00 € 2 100.00 € 420.00 € 0.00 €

1.2.1.2 Quote requests Finished 840.00 € 1 680.00 € 840.00 € -840.00 € 0.00 €

1.2.1.3 Supplier selection

Finished 840.00 € 420.00 € 840.00 € 420.00 € 0.00 €

1.2.1.4 Banchmarking documentation

Finished 840.00 € 840.00 € 840.00 € 0.00 € 0.00 €

1.2.2 Fitness

Equipment order

29%

9 613. 50 €

9 613. 50 € 9 613. 50 € 0.00 € 0.00 €

Cumulative Totals 26 833.50 € 25 993. 50 € 26 833, 50 € 840.00 € 0.00 €

As seen from the Earned Value report above, on July 17th, 2013, the project was on schedule and

under cost by 840, 00 €. Since the Fitness Equipment Order task has a fixed cost which amounts to

the total price of the bikes and treadmills plus delivery costs, the cost doesn’t vary with the

percentage of completion of the task. Thus, the Earned Value equals the Actual Cost of work

performed which is also equal to the Planned Value.

3. Project schedule status

The phase 1.1: “feasibility studies” has already been completed. We are on Day 33 so the project

completion is about 47.8%. The GreenWulf project was expected to last 68.86 days according the

WBS and end on Tuesday, August 27, 2013.

The project is currently in phase 1.2.2 of the Work Breakdown Structure. Our team has just ordered

the fitness equipment online which is expected to be delivered in the following days. The activity is

supposed to last 21 days.

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B. Problem solving

1. Description of key problems and issues encountered

There was a major hurricane that hit North Carolina and its surrounding cities on 5th August 2013.

The hurricane named “Hurricane Rouge (category 2)” due to its unassuming but destructive nature

caused severe damages in most cities and small towns in North Carolina. Consequences of the

hurricane included flooding, complete power shortage for 3 days and an abrupt end to all activities at

offices, schools, etc. following advice of the regional meteorology department. There was a state of

emergency for 3 days.

The aftermath of the hurricane resulted in the loss of all the order we made for equipments as the

driver lost control of the vehicle and plunged in the Lake Johnson in Raleigh. He was advised to stay

at home but wanted to finish his work in order to maximize his paycheck. In addition, the Carmichael

complex suffered from flood and power outage issues.

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2. Responses to the problems and how they affected the project

First, concerning the lost order, it had no extra-cost on the project’s budget since the manufacturer’s insurance covers hurricane damages. However, the project team had to order again the fitness equipment and wait for the delivery before going further in the project. Secondly, NCSU governance had to arrange the repairs to Carmichael Sports complex that lasted 7 days. In total, due to the hurricane and its aftermath, the Green Wulf project was delayed by 10 days during which we could not process with the project.

C. Management issues

1. Problem description

In the meantime, our team had to face another challenge: North Carolina State University revised the project’s budget and since they were pleased by our progresses, they decided to renovate the whole fitness complex. The university asked us to be in charge of the installation of the 3 fitness rooms in the Carmichael Gymnasium. It raised some 4 new constraints for our team. The first constraint was to maintain the users’ experience. Since we had to renovate the whole fitness center of the gymnasium, we had to find a strategy that will allow students, faculty and staff to keep on working out during the project duration. The second constraint is to enhance time. Since the project has a new scope, the project will now have a completion date further into the fall semester. The project team is expected to meet the new deadlines and to complete the GreenWulf project as soon as possible in order to offer to students a sustainable gymnasium rapidly without disturbing the gymnasium life. The third constraint is the project performance. Since our team will be in charge of the installation of 2 new rooms, we need to deliver a high quality service as stated in the project scope and expected from the stakeholders. The final constraint is still to manage the costs due to the limited financing available from NC State governance.

2. Response to the issues and how the responses impact the whole project

Regarding the new request from North Carolina State University, our team had to find ways to answer the new constraints. First, the project team discussed with the NC State committee about the new project scope and requirements in order to reach a new agreement that matches stakeholders’ expectations with new deadlines for the operational team.

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In order to answer the 3 constraints raised by the new request from NC State, our project team implemented 4 strategies: - To limit costs, we decided to renegotiate with the suppliers to lower the price or waive the delivery fees since we will order a bigger quantity. - To maintain the users’ experience, the GreenWulf project team decided to rotate the fitness rooms one by one so that at least one room would still be accessible for users whereas the others would be under renovation. - To enhance time, the project team is convinced that it will acquire expertise during the first fitness room installation. The expertise acquired will allow the team to better manage the project tasks for the two other rooms installation. - To get a proofed performance, our team extended the feasibility studies to all the fitness rooms.

According to the new request from NC State, our project team rescheduled the entire project in order to answer the new project scope. The project duration is now 101.86 days and the new expected completion date is on Thursday, October 24th. We can find below the new project matrix generated for the GreenWulf master project. As we can see on the table, Performance remains the constraint. However, Time came from “accept” to “enhance”. Indeed, time plays a major role in the new project since we now need to install 3 fitness rooms instead of one and the installation needs to impact the gymnasium life as low as possible. Also, Cost came from “enhance” to “accept”. Actually, NC State is willing to finance the gymnasium so the cost is not a real constraint. Now, the project has to focus on Performance and Time.

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D. Revised Project Estimate

1. Projected Cost

Given that our previous orders had been destroyed by the hurricane in North Carolina, order and

fabrication of the new equipment had to start from scratch. Luckily, Green Wulf did not have to take

the cost related to the losses in charge. It was the manufacture’s insurance responsibility.

Furthermore, NCSU and stakeholders were really happy of the project so that we had to extend it to

three fitness rooms.

Regarding the dynamo bikes, we needed to order 15 x 3 fitness rooms = 45,000. The cost per unit

was still $1,200.

$1,200 x 45 = $54,000.

For the treadmill, the manufacturer kept the same price per unit.

$1,000 x 45 = $45,000.

Our equipment supplier did not charge us for the delivery though, because we ordered in huge

quantity.

The delivery cost = $0.

As for the cleaning service, we asked the two people if adding two extra rooms were possible

considering the deadline. They agreed. The price was still $75 per hour for a minimum service of two

hours. But they granted us a 8.33% discount.

It was $300 for one fitness room, including the two-day work. We relied on that basis.

($300 x 3 rooms) x 8.33% = $825.

Regarding the new equipment installation, before the hurricane the four-man crew needed three

days to install the bikes and treadmills. After the hurricane, they needed one day more to complete

the same task and charged us for that extra day.

We paid $1,520 for one fitness room for three-hour work.

The crew granted us a 13.3% discount for the two new rooms. We still had to pay the full price for

the first one.

($1,520 + ($1,760 x 2)) x 13.3% = $4,448

The last but not the least, the two specialized people in electrical wiring and layering came back and

gave us a 15% discount on the total amount.

One room cost $3,960 for eight days.

($3,920 x 3 rooms) x 15% = $9,996 for 24 days.

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As for the flood damages to the Carmichael complex, NCSU was responsible for the losses.

EQUIPMENT ORDER

CLEANING SERVICE

EQUIPMENT

INSTALLATION

ELECTRICAL

INSTALLATION

45 dynamo bikes $54,000 45 treadmills $45,000 Delivery cost $0

Three 1,200 ft2 rooms 2 hours ($75/hour) 8,33% off For two dates

One truck with a 4-man crew for each room + 20% discount for the 2 last rooms for 4 days

4 days layering and wiring by 2 specialized people at $1,960 each x 3 rooms

$99,000 $825 $4,448 $9,996

Total estimated cost baseline regarding external contractors = $114,269

The hurricane as well as the two more fitness rooms modified our internal processes and strategy.

We had to do conduct other researches and documentation not to shake up our project and to be as

closed as possible to our previous deadlines.

This cost us $20,160 (including the test process).

Total estimated cost baseline included the researches and the external contractors: $134,429.

At the beginning, our baseline cost was $56,950. After the hurricane and the two additional rooms, it

is now $134,429 (a $77,479 extra difference).

Let’s calculate the Cost Performance Index (CPI) to determine if we are under cost, on cost or over

cost regarding our baseline.

CPI = EV / AC (with EV meaning the Earned Value and AC the Actual Cost)

= 124,629.32 / 123,821

= 1,01

This means that our project is approximately on cost compared to our forecast.

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2. Schedule

Let’s calculate the Schedule Performance Index (SPI) to determine if we are ahead of schedule, on

schedule or behind schedule.

SPI = EV / PV (with PV meaning the planned time-phased baseline)

= 124,629.32 / 123,621

= 1,01

This means our project is on schedule.

We can see on the picture below the effect of the hurricane on the initial project. The delivery has

been interrupted and reparations had to be done. After that and once the renegotiation with the

supplier if done, we can reorder the equipment and restart the project.

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The second change in the schedule is the addition of 2 more rooms to renovate. The second project

starts after the hurricane with a new feasibility studies. It takes less time than the first one since we

already did it once; it is only a matter of adaptation to the new room.

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E. Summary

1. Keys to successfully completing the projects

In order to meet our overall goal of renovating all 3 fitness rooms and finishing the GreenWulf

Project without any (more) sensitive issues that could limit progression of this project, we have

identified some vital steps in the project that must be managed correctly and they include the

following:

Limiting sensitivity of the project

One of the key sensitive aspects of this project is the fitness equipment order and reception of order.

This is crucial because, the time between order and reception usually takes between 17 to 28 days

and any lapse in time will have to change our plans and the project not progressing to the next level

of equipment installation and layering of electrical lines. Any wrong delivery of product will also

cause this project a great deal so we will have to be very certain about our product orders and

specification.

We also need to take into consideration the initial feasibility reports as any wrong estimation of the

project can lead to performance, time and cost constraints. Therefore the main sensitive aspects of

this stage are energy study, costing and technical feasibility study. This well done is very likely to

prevent any unforeseen issues in the future of the project.

Time management (project duration & delivery end product)

As time is of essence in this project, we will have to make sure tasks are performed on schedule and

by the right expertise. Some projects must parallel to each other. They could both start on the same

day and end at the same finishing time. For instance, whilst fitness equipment orders have been

placed, cleaning and clearing out of old equipments could happen since they do not depend on each

other to start the next phase of the job (Milestones).

In saving time, we will have to seek the service of experts in the various aspects of this project who

can be efficient in task completion. And during the project expansion, the same workers will be used

since they now have a better understanding of the GreenWulf project and will be extra efficient in

delivering good job. This will save the project time and further risks.

Respect end user experience

To guarantee that student and other users are able to still use the sports Complex when school

resumes or even whilst work is still in progress, we will have to rotate from one fitness room to

another after work in each room is completed. We must maintain a great level of support to users of

the Carmichael Complex and kept them updated on the project by communicating with the project

stakeholders.

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2. Forecast at completion

We are going to look at the Variance Cost at Completion (VAC) to determine which activities have

gone well or not.

It is the difference between EAC and BAC. Negative variance indicates that the project will be

completed over budget. On the contrary, positive VACs mean that the activities will be completed

less than the budgets.

VAC for fitness room 1 = +$992.11

For fitness room 2 = -$146.49

For fitness room 3 = -$146.73

As a result, the fitness room number 1 will be the only one to be completed less than the budgets.

Whereas the fitness rooms number 2 and 3 will be completed over budget.

Here are the activities that have gone well and the ones that have had some issues:

Fitness Rooms

Negative VACs

Positive VACs

Fitness Room 1 Fitness Room 2 Fitness Room 3

technical feasibility study

quote requests

bikes reception

treadmills reception

old equipment transfer

removal of old equipment

electrical wiring

fitness equipment reception

Fitness equipment reception

Bikes reception

Treadmills reception

Feasibility study

energy study

fallout study

preliminary report

supplier search

supplier selection

equipment installation

room cleaning

new equipment set-up

electrical installation

layering

feasibility study

fallout study

report

For the other activities, VACs are $0.

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3. Formal statement of confidence and risk

Having experienced some difficulties before the second phase of the project, we were well prepared

for the second phase of the project even though we have more workload to do. We did a second risk

assessment of and were able to better prepare for any eventualities that could occur.

Also with first phase successfully done, we were more confident about executing the second phase of

the project quicker and even better with all the experience drawn from the initial part of the project. For

instance, we were quite certain of how much energy we could tap from the new rooms because we

have already been able to measure how much energy we tap from the first room.