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Project Management: Case Studies, Second Edition 1321.chfm 11/3/05 9:06 AM Page ii 1321.chfm 11/3/05 9:06 AM Page i PROJECT MANAGEMENT CASE STUDIES, SECOND EDITION 1321.chfm 11/3/05 9:06 AM Page ii 1321.chfm 11/3/05 9:06 AM Page iii PROJECT MANAGEMENT CASE STUDIES, SECOND EDITION HAROLD KERZNER, Ph.D. Division of Business Administration Baldwin–Wallace College Berea, Ohio John Wiley & Sons, Inc. 1321.chfm 11/3/05 9:06 AM Page iv This book is printed on acid-free paper. ∞ Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, e-mail: [email protected]. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives orwritten sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, includ- ing but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our Web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Kerzner, Harold. Project management : case studies / Harold Kerzner. -- 2nd ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-471-75167-0 (pbk.) ISBN-10: 0-471-75167-7 (pbk.) 1. Project management--Case studies. I. Title. HD69.P75K472 2006 658.4Ј04--dc22 2002028892 20050182537 Printed in the United States of America 10987654321 1321.chfm 11/3/05 9:06 AM Page v Contents Preface xi 1 PROJECT MANAGEMENT METHODOLOGIES 1 G Lakes Automotive 3 G Ferris HealthCare, Inc. 5 G Clark Faucet Company 7 2 IMPLEMENTATION OF PROJECT MANAGEMENT 11 G Kombs Engineering 13 G Williams Machine Tool Company 15 G Wynn Computer Equipment (WCE) 17 G The Reluctant Workers 20 G Hyten Corporation 22 G Macon, Inc. 35 G Continental Computer Corporation 37 G Goshe Corporation 43 G Acorn Industries 49 G MIS Project Management at First National Bank 56 G Cordova Research Group 70 G Cortez Plastics 71 G L. P. Manning Corporation 72 G Project Firecracker 74 v 1321.chfm 11/3/05 9:06 AM Page vi vi CONTENTS G Phillip Condit and Boeing 777: From Design and Development to Production and Sales 81 G AMP of Canada (A) 105 G AMP of Canada (B) (see handout provided by instructor) G AMP of Canada (C) (see handout provided by instructor) G Lipton Canada 118 G Riverview Children’s Hospital 124 G The Evolution of Project Management at Quixtar 145 3 PROJECT MANAGEMENT CULTURES 151 G Como Tool and Die (A) 153 G Como Tool and Die (B) 157 G Apache Metals, Inc. 160 G Haller Specialty Manufacturing 162 G The NF3 Project: Managing Cultural Differences 163 G An International Project Manager’s Day (A) 172 G An International Project Manager’s Day (B) (see handout provided by instructor) G An International Project Manager’s Day (C) (see handout provided by instructor) G An International Project Manager’s Day (D) (see handout provided by instructor) G Ellen Moore (A): Living and Working in Korea 177 G Ji’nan Broadcasting Corporation 196 4 PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES 205 G Quasar Communications, Inc. 207 G Jones and Shephard Accountants, Inc. 212 G Fargo Foods 216 G Government Project Management 220 G Falls Engineering 222 G White Manufacturing 227 G Martig Construction Company 229 G Mohawk National Bank 231 5 NEGOTIATING FOR RESOURCES 235 G Ducor Chemical 237 G American Electronics International 241 G The Carlson Project 245 1321.chfm 11/3/05 9:06 AM Page vii Contents vii 6 PROJECT ESTIMATING 247 G Capital Industries 249 G Polyproducts Incorporated 251 G Small Project Cost Estimating at Percy Company 258 G Cory Electric 259 G Camden Construction Corporation 263 7 PROJECT PLANNING 267 G Greyson Corporation 269 G Teloxy Engineering (A) 274 G Teloxy Engineering (B) 276 G Payton Corporation 277 G Spin Master Toys (A): Finding A Manufacturer for E-Chargers 279 G Spin Master Toys (B): A New E-Chargers’ Supplier (see handout provided by instructor) G Spin Master Toys (C): Keeping E-Chargers’ Wings On (see handout provided by instructor) 8 PROJECT SCHEDULING 293 G Crosby Manufacturing Corporation 295 9 PROJECT EXECUTION 299 G The Blue Spider Project 301 G Corwin Corporation 317 G Quantum Telecom 329 G The Trophy Project 331 G Concrete Masonry Corporation 334 G Margo Company 343 G Project Overrun 345 G The Automated Evaluation Project 347 G The Rise and Fall of Iridium 351 G Missing Person—Peter Leung 369 G Zhou Jianglin, Project Manager 377 10 CONTROLLING PROJECTS 381 G The Two-Boss Problem 383 G The Bathtub Period 385 G Ford Motor Co.: Electrical/Electronic Systems Engineering 388 1321.chfm 11/3/05 9:06 AM Page viii viii CONTENTS 11 PROJECT RISK MANAGEMENT 401 G The Space Shuttle Challenger Disaster 403 G The Space Shuttle Columbia Disaster 453 G Packer Telecom 460 G Luxor Technologies 462 G Altex Corporation 466 G Acme Corporation 470 12 CONFLICT MANAGEMENT 473 G Facilities Scheduling at Mayer Manufacturing 475 G Scheduling the Safety Lab 478 G Telestar International 480 G The Problem with Priorities 482 13 MORALITY AND ETHICS 485 G The Tylenol Tragedies 487 14 MANAGING SCOPE CHANGES 515 G Denver International Airport (DIA) 517 15 WAGE AND SALARY ADMINISTRATION 561 G Photolite Corporation (A) 563 G Photolite Corporation (B) 566 G Photolite Corporation (C) 569 G Photolite Corporation (D) 574 G First Security Bank of Cleveland 580 G Jackson Industries 583 16 TIME MANAGEMENT 587 G Time Management Exercise 589 17 INDUSTRY SPECIFIC: CONSTRUCTION 613 G Robert L. Frank Construction Company 615 G The Lyle Construction Project 652 1321.chfm 11/3/05 9:06 AM Page ix Contents ix G Hong Kong and Shanghai Banking Corporation Limited: Hongkong Bank Headquarters (A) 635 G Hong Kong and Shanghai Banking Corporation Limited: Hongkong Bank Headquarters (B) (see handout provided by instructor) G Hong Kong and Shanghai Banking Corporation Limited: Hongkong Bank Headquarters (C) (see handout provided by instructor) G Hong Kong and Shanghai Banking Corporation Limited: Hongkong Bank Headquarters (C1) (see handout provided by instructor) Index 655 1321.chfm 11/3/05 9:06 AM Page x 1321.chfm 11/3/05 9:06 AM Page xi Preface Other than on-the-job training, case studies and situations are perhaps the best way to learn project management. Case studies allow the students to apply the knowledge learned in lectures. Case studies require that the students investigate what went right in the case, what went wrong, and what recommendations should be made to prevent these problems from reoccurring in the future. The use of cases studies is applicable both to undergraduate and graduate level project man- agement courses, as well as to training programs in preparation to pass the exam to become a Certified Project Management Professional (PMP®) administered by the Project Management Institute. Situations are smaller case studies and usually focus on one or two specific points that need to be addressed, whereas case studies focus on a multitude of problems. The table of contents identifies several broad categories for the cases and situations, but keep in mind that the larger case studies, such as Corwin Corporation and The Blue Spider Project, could have been listed under several top- ics. Several of the cases and situations have “seed” questions provided to assist the reader in the analysis of the case. An instructor’s manual is available from John Wiley & Sons, Inc., to faculty members who adopt the book for classroom use. Almost all of the case studies are factual. In most circumstances, the cases and situations have been taken from the author’s consulting practice. Some edu- cators prefer not to use case studies dated back to the 1970s and 1980s. It would xi 1321.chfm 11/3/05 9:06 AM Page xii xii PREFACE be easy just to change the dates but inappropriate in the eyes of the author. The circumstances surrounding these cases and situations are the same today as they were twenty years ago. Unfortunately we seem to be repeating several of the mis- takes made previously.
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