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DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE KMGT-682-1 EXECUTING AND CONTROL WITH RISK MSC PROJECT MANAGEMENT – OIL & GAS NAME: LEONARDO TRIGOS GUERRERO STUDENT ID: H00024346 DATE: 05 / 04 /2014 PAGE 1 OF 6 DISCUSSION QUESTION No. 1 WEEK 03 EXECUTING AND CONTROL WITH RISK LEONARDO TRIGOS G.

DQ1 - Week 3 - Final Responce - LTG

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Installation of a baggage handling system (BHS) was an important part of the plan for the Denver International Airport (DIA) project. The project management team (PMT) for the DIA project decided to go ahead with a full-scale implementation of the BHS. The contract for installation of the BHS—with a fixed scope, schedule, and budget—was awarded to Boeing Airport Equipment Automated Systems, Inc. (BAE). For some reason, the airlines—major stakeholders in the project—were excluded from discussions about the project scope. One of BAE’s conditions was that no change requests would be accepted. However, as work progressed, the airlines made a number of requests for changes.Assume that you were a project manager at BAE responsible for the installation of the BHS at DIA. Give at least two recommendations to the BAE management about handling the change requests. Include a description of the result that you expect for each recommendation. Be specific in your recommendations and in the description of the results that you expect if your recommendations are implemented.

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DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 05 / 04 /2014 PAGE 1 OF 5

DISCUSSION QUESTION No. 1

WEEK 03

EXECUTING AND CONTROL WITH RISK

LEONARDO TRIGOS G.

DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 05 / 04 /2014 PAGE 2 OF 5

DISCUSSION QUESTION – WEEK 3

1. INTRODUCTION

In my experience in the Oil & Gas industry and maybe in general, companies to be competitive must live and manage the constant change.

According to Wanner (2013, p. 1), “change management is an organized, systematic application of the knowledge, tools, and resources of change that provides organizations with a key process to achieve their business strategy”.

2. PROJECT BACKGROUND

According to UOL (2014), the Denver International Airport (DIA) project has the objective of install a Baggage Handling System (BHS) with a fixed schedule, scope and budged. The Boeing Airport Equipment Automated Systems, Inc. (BAE) was awarded for the execution of the project. One of the policy of BAE is to disapprove any change request generated for the project.

The problem situation is that the Airlines, that is an important stakeholders of the project, were excluded from the project scope discussion. The Airlines hasn’t been informed about the BAE policy to disapprove any change request. Therefore, according with the execution of the project, the Airline develops some request for changes to the project. Leonardo Trigos has been designed as Project Manager by BAE for the execution of the DIA project.

3. FINDINGS

A. Assess Stakeholders:

Wanner (2013, p. 1) explains that stakeholders are critical to project success because of the influence they can hold over the successful delivery of the outcomes or because they may become antagonistic to the outcomes. The main reasons why stakeholders are important to project success:

They are the source of scarce resources such as skilled people or funding They have the ability to affect the outcomes either through actions or inaction.

This means that the identification and engagement of the stakeholders of the project are essential for project success. The stakeholder strategy may: (1) Identify, (2) Prioritize, (3) Visualize, (4) Engage and (5) Monitor.

DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 05 / 04 /2014 PAGE 3 OF 5

Figure 1. Assess Stakeholders [Source: Wanner (2013, p. 5)]

B. Project Management Plan:

The project management plan developed for the project erroneously excludes the possibility to accept any change request. Fortunately, the PMBOK (2013, p. 6) explains that “the development of the project management plan is an iterative activity and is progressively elaborated throughout the project life cycle”. It means that it could be improved to include the acceptance of requests for changes and detail the strategy to manage them (integrated change control process).

4. RECOMENDATIONS

My recommendations as PM of the project to avoid possible future disasters on the project execution are:

A. Develop a Scope Review with key Stakeholders:

The project manager must convene a meeting to review in deep the project scope statement where the presence of key stakeholders (including the airlines) may be guaranteed. The change request collected from key stakeholders must be submitted to the integrated change control.

Outcome:

DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 05 / 04 /2014 PAGE 4 OF 5

The change control board (CCB) including the PM must approve or reject the change request developed by the Airlines after being analyzed completely (schedule, cost, quality impacts with risks associated).

B. Assure the implementation of an ICC Process:

The PM must assure the implementation of an integrated change control process to guarantee the correct management of the changes in a proactive form. The structured change management approach implemented must have the follow phases to ensure manage of a change successfully, according to Sanghera (2010, p. 308):

Figure 2. Structured change management process [Source: Wanner (2013, p. 4)]

Outcome:

The complete process of the integrated change control is documented and communicated properly.

The change management process is clear and transparent for all. Results of the change analysis, the impacts of change (additional costs, time and resources

required) are known by all key stakeholders. If any change is approved, all documents of the project management plan and the project

baselines (cost, schedule, scope) should be updated to include the change approved. Approved change must be communicated to all stakeholders. The existing contract should be adjusted to include the changes approved. Improve the communications between all key stakeholders.

DISCUSSION QUESTION No. 1 – WEEK 03 / FINAL RESPONSE

KMGT-682-1 EXECUTING AND CONTROL WITH RISKMSC PROJECT MANAGEMENT – OIL & GAS

NAME: LEONARDO TRIGOS GUERRERO

STUDENT ID: H00024346

DATE: 05 / 04 /2014 PAGE 5 OF 5

5. CONCLUSIONS

A change has high impact to a project, but they can be manageable by implement and apply proactively the integrated change management process with the help of the project team as a successful way to survive to any change and avoid scope creeps problems or others related. These strategic initiatives are more successful and benefits will be achieved by increased organizational agility.

Bourne (2010, p. 1) stats effective communications is central to building relationships through understanding and managing the expectations (unrealistic expectations are unlikely to be fulfilled) of stakeholders, especially those stakeholders who have been identified as key or important. Satisfied and supportive stakeholders results from delivering what they need to meet their expectations. Project success is closely connected to understanding and managing relationships between the project and its stakeholder’s community.

6. REFERENCE LIST

Wanner, M. (2013). Integrated Change Management. Project Management Institute Annual Seminars & Simposium – Proceedings. Istanbul - Turkey: Project Management Institute.

Sanghera, P. (2010) PMP® in depth: Project management professional study guide for the PMP® exam. 2nd Edn. Boston: Course Technology / Cengage Learning.

UOL / University of Liverpool (2014), Executing and control With Risk (KMGT-682-1) - Week 3 Lecture notes and Assignments [Online]. Available from: University of Liverpool / Laureate Online Education (Accessed: 05 April 2014).

Bourne, L. (2010). Beyond Reporting – The Communication strategies. Project Management Institute Global Congress – Proceedings. Melbourne - Australia: Project Management Institute.

Project Management Institute (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 5th Edn. Newtown Square, Pennsylvania: Project Management Institute, Inc.