l Case Summary 1hls case malnly presenLs LhaL a company Peubleln lnc lmplemenLs pro[ecL

managemenL and conLrol sysLem (MC) ln Lo lLs progress rlor Lo MC Lhe company focused on
cosLbeneflL analysls and mlnlmal emphasls on execuLlon of Lhe pro[ecLs 1here was no mechanlsm Lo
assure LhaL nonflnanclal resulLs were achleved Powever Lhere was some weakness occurred Some of
lLs ma[or pro[ecLs wenL over budgeL Moreover Lhe need for opLlmal uLlllzaLlon of caplLal funds
lnLenslfled slnce depreclaLlon leglslaLlon was noL keeplng pace wlLh Lhe lnflaLlonary rlse ln cosLs
1herefore Lhere was a need Lo lmprove lLs process MC was lnLroduced Lo Lhe company A consulLanL
was broughL ln as an ouLslder Lo cooperaLe wlLh a program manager Lo plan how Lo deslgn and
lmplemenL Lhe sysLem Lo Lhe company 1he program goL a poslLlve percepLlon ln Lhe end Cur Leam
LhoughL uslng Lhe ouLslder Lo execuLe Lhe program ls a very clever lrom our dlscusslon Lhe case was
successful parLlally due Lo Lhe consulLanL

ll Answer Lo Lhe
CuesLlons 1 Whlch of Lhe pro[ecL plannlng alds descrlbe ln Lhe chapLer was used ln Lhe case? llrsL Lhe
company deslgn Lhe phases of Lhe program 1hen Lhe company used a hlerarchlcal plannlng sysLem
known as Work 8reakdown SLrucLure (W8S) 1he accounLablllLy maLrlx was used Lo asslgn each acLlvlLy
Lo every person wlLh dlfferenL responslblllLy 8aslc loop of feedback for conLrol was used Lo slmpllfy Lhe
concepL of Lhe process 1he program group also used CanLL convenLlon Lo Lrack Lask and seLup
mllesLones
2 lor each of Lhe alds used ln Lhe case descrlbe how Lhey were consLrucLed and lf Lhere were any
modlflcaLlons ln form? 3 Pow were each of Lhe alds applled ln Lhe case? lor W8S Lhe orlglnal W8S was
consLrucLed as a LabulaLe formaL All Lhe lLems were deflned prlor Lo lnlLlaLlng Lhe program Slnce Lhe
funcLlonal deparLmenL lnvolved aL Lhe beglnnlng of Lhe program Lhere was no change of score problem
1he company had very broad funcLlon groups so LhaL Lhe W8S Look some concerns from each of Lhem lL
was hoped LhaL Lhe W8S can be modlfled for Lhe slmllar programs 1he accounLablllLy maLrlx was
consLrucLed Lo ldenLlfy whose accounLablllLles were for dlfferenL acLlvlLy Cn Lhe oLher words Lhe
accounLablllLy maLrlx was orlglnally used Lo show a clear vlew of who ls dolng whaL 1he company had
several funcLlonal groups lnvolved ln Lhe program and requlred dlfferenL levels of respond 1he dlrecLor
faclllLles and manufacLurlng plannlng consulLanL program manager of MC and managers of
dlfferenL englneerlng group Look Lhe accounLablllLles of lnlLlaLe/8esponslblllLy (l) Approve (A) and
rovlde lnpuL () 1hrough Lhe maLrlx Lhey clearly accounL for cerLaln acLlvlLy 8aslc feedback loop Lo
slmpllfy Lhe pro[ecL conLrol Cenerlc CanLL was used Lo help conLrol program slnce Lhe program dldn'L
lnvolve any purchase and Lhe Lask coordlnaLlon was noL complex 1yplcal mllesLone also showed when
and whaL Lo be done
4 Would a 18Lnu organlzaLlon overlay have been useful ln Lhls slLuaLlon? WhaL poLenLlal problem
mlghL lL have shown? 1he company Lended Lo lnvolve several dlfferenL worklng groups' ldeas 1hrough
Lhe process of consensus Lhe company Lrled Lo avold any voLe by whlch mlnorlLy's ldea may be
deemphaslze 1he resulL ls LhaL Lhe percelved value from dlfferenL groups was poslLlve 1herefore we
Lhlnk lL ls useful ln Lhls slLuaLlon Powever Lhe 18Lnu requlres hlgh negoLlaLlng sklll for M and may
Lake more Llme Lo conclude a consensus 1he poLenLlal problem can cause pro[ecL delay ln Lhls case lL
seems Lhe negoLlaLlon dldn'L appear as a problem and Lhe program was accompllshed on Llme We Lhlnk
Lhls may noL be a problem aL all 1he case dldn'L show lf Lhere was any confllcL Lhrough Lhe process
Powever confllcL may resulL hlgh uncerLalnLy 8esldes Lhe company dldn'L have Lhe sofLware Lo deLecL
Lhe confllcLs ln Lhe lnformaLlon bases whlch may glve hlgher rlsk Lo fallure AlLhough Lhe confllcLs may
resulL beLLer lmprovemenL we dldn'L see Lhe lmpacL Lhere Cne Lhlng we dlscussed ls LhaL form Lhe
case lL seems Lhe program had less complexlLy 1hrough W8S doesn'L reflecL Lhe uncerLalnLy wlLh Lask
on large and complex pro[ecL lL ls sufflclenL enough for Lhls pro[ecL Some Leam members LhoughL LhaL
Lhe power of 18Lnu dldn'L show exacLly ln Lhls case slnce Lhe complexlLy of Lhls case was noL clear And
Lhere wasn'L a clear 18Lnu lmplemenLaLlon shown ln Lhls case as well
3 WhaL was Lhe purpose of Lhe MC pro[ecL? Was lL successful? Cne purpose of MC was LhaL Lhe
company had an urge Lo efflclenLly use Lhe caplLal funds and MC has been ldenLlfled as one
mechanlsm Lo archlve lL 1he oLher purpose was Lo lncrease Lhe performance of every company's
pro[ecL 8y developlng a unlque process flL Lo Lhe company lL emphaslzed on plannlng before a pro[ecL
Lhan conLrolllng afLer a pro[ecL has launched Succeedlng each pro[ecL ls more lmporLanL Lhan
accounLablllLy or blamlng afLer fallure
1he pro[ecL was successful ln some crlLerla lL was flnlshed on Llme and wlLhln budgeL 1he percepLlon
from operaLlonal personnel was poslLlve as well Powever we Lhlnk fuLure lnpuL ls requlred Lo lmprove
Lhe program
6 WhaL was wrong wlLh Lhe prevlous focus on cosLbeneflL? uoes Lhe MC sysLem sLlll lnclude cosL
beneflL analysls? CosLbeneflL analysls only provlded a slngle [usLlflcaLlon for any pro[ecL Powever a
pro[ecL ls noL only Lo archlve flnanclal success buL also oLher goals 1he mlnlmal emphasls on Lhe pro[ecL
execuLlon and oLher aspecLs resulLed overbudgeL 1hls ls Lhe reason why Peubleln lnc soughL for MC
1hls doesn'L mean cosLbeneflL ls noL lmporLanL enough Lo comblne lnLo Lhe MC ln facL lL was sLlll
lncluded ln Lhe sysLem
7 Why dld lagglng depreclaLlon leglslaLlon lncrease Lhe lmporLance of uslng caplLal funds opLlmally?
1he lagglng depreclaLlon leglslaLlon was slower Lhan Lhe lnflaLlonary rlse 1he fasLer lnflaLlon cause Lhe
cosL ls geLLlng hlgher and hlgher 1he company needed a new mechanlsm Lo prevenL from overbudgeL
CpLlmlzlng caplLal funds ls an urge