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Running head: CAPSTONE PROJECT

MGT6960: Enterprise Project Management- Capstone Project

Jennifer O’Donnell-Jones, #164625

Madonna University

Prof. Thomas Schoenfeldt

July 20, 2008

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Abstract

This paper will discuss five different projects I have worked on throughout my

career and how the various elements I have learned through my education seeking the

Project Management degree can be applied to each of these projects. Each project will

be outlined with the project charter, scope and management plan, and will be analyzed

to show how improvements could have possibly been implemented to make the project

more successful. A matrix will be presented as well to illustrate what elements of the

classes I have taken applied to each project.

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Project 1: U.S. Manufacturing Corporation

Project Charter: U.S. Manufacturing Corporation is a

“leading manufacturer of highly specialized axle

housings for the automotive industry.” (US Mfg., n.d.)

It is a privately owned corporation, founded in 1964 by

Joseph Simon and run today by the founder’s sons.

The sons made all the final decisions and contractual arrangements regarding the

scope of the project and what was purchased for the project. (US Mfg., 2006)

Project Scope: The project was initiated in 2001 due to the company relocating its

world headquarters from Frasier, Michigan to a new facility in Warren, Michigan. The

company I was working for at the time, Creative Office Interiors, Inc., handled the

specifications of finishes, furniture and lighting, as well as the coordination of the move

of their existing furniture and equipment from the Frasier location. From the original

contract (COI, Inc., 2001) the work provided included:

Space planning for approximately 30,000 square feet for the first and second floor offices, including a furniture plan for all areas. (72 hours)

An electrical and lighting plan for all areas. (6 hours)

A room finish specification package, to include flooring, wallcoverings, window treatments and anything else as deemed necessary. We worked within the allocations provided by the architect and general contractor for each of the areas. (38 hours)

Furniture inventory of the existing space and coordination of the existing furniture move to the new location. (3 hours)

The project was initiated in 2001 with the design

component and ended in 2003 when the client

received the certificate of occupancy and was able

to move in.

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Project Management Plan:

Scope Management: With a project this large, it was

difficult to keep to the number of hours that were originally

quoted for the job. We provided additional services for the

client including additional re-configurations, additions and

changes as the project went on, and would charge as appropriate for the additional

services provided. We also purchased the new furniture the client needed for the

facility, and made additional revenue from the sales of the furniture.

Schedule Management: The initial schedule was set by the general contractor we

were working with on the project. From their schedule, we had an approximation of

when we would be installing the furniture and could order the new furniture based on

the manufacturer lead times, and set up installation dates with the movers and furniture

installers. Communication was instrumental with the scheduling of the project- we

would have to call the contractor weekly and visit the site to make sure that the project

was on schedule, and could make adjustments as necessary. When we would have to

make any changes, we would have to contact the manufacturers to adjust shipping

dates (for furniture and accessories) and the movers and furniture installers so they

could make sure there was an opening in their schedule. The installers were critical as

they had to be on site to receive the furniture from the freight companies. We were also

responsible for scheduling the individual freight companies to arrive on site at staggered

times so someone was available to receive and inspect the orders.

Cost and Quality Management: The client was a prior client and had existing furniture

that we had to match, so cost management was not difficult for this project. We had to

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quote new furniture to match the existing for both the systems furniture and office

furniture, and were able to negotiate pricing and discounts with the manufacturers

based on the volume of furniture purchased, the client and prospect of future business.

The quality of the furniture used was mid-to-high end furniture that was appropriate for

the use and area being used. Some areas were used 24-hours, and the furniture had to

be specified to handle extended use. Costs for the finishes were determined by the

architect and general contractor, who gave us a grade or range to work within when

specifying. We selected the finishes based on the use of the area, building codes and

aesthetics desired by the client. The quality of the finishes was dictated by the grade

that was given to us by the contractor. We selected appropriate finishes within the

prices allocated to stay within budget and meet the client’s needs.

Risk Management: Risk was managed through communication with all parties

involved. There is always an elevated risk when working with a general contractor and

when delivering furniture directly to site. When working with a contractor, making sure

the correct finishes are ordered, and that changes in schedule are communicated is

crucial to the success of the project. Furniture delivery to site reduces the risk of

furniture being damaged if it is received at the warehouse by the installer and

transported, but there is an elevated risk of having the manpower at site to receive the

delivery and that the freight companies arrive when they are scheduled. Another risk

that was a challenge in this job was the use of existing and new furniture used together,

and that I came in on the job after it had been started. The furniture plans and

individual cubicles had existing and new pieces in each, making it difficult to track what

furniture was coming from where. When I came in to the project, I had to go through the

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existing inventories and new furniture order to make sure everything was accounted for.

If we had been missing even a few small pieces, it could have held up the installation

until we were able to get in the needed parts from the manufacturer and get the

installers out to the site to finish the installation. Fortunately, the installation went well

the client had relatively little “down-time” with the move of their offices.

Procurement Management: Procurement of all furniture was conducted through

purchase orders faxed to the individual manufacturers. Purchase orders were

completed by the designers who worked on the jobs because they were the most

familiar with the project and what needed to be ordered. We would also have to call

each of the manufacturers to obtain the lead time until shipment for the items so we

could gauge what needed to be ordered based on the project schedule furnished by the

general contractor. Once the furniture order was placed, the manufacture sends an

acknowledgement stating the details of the order as entered and the estimated ship

date. The acknowledgement would be checked against the purchase order for

correctness and any changes that needed to be made were documented in writing.

Ship dates were recorded on the general calendar so everyone was aware when

products were scheduled to ship.

Conclusions: The overall outcome of the project was successful, but there are tools

that could have been employed for management of the project and the time spent on

the design and tracking of different elements. There are furniture specification

programs that work with the drawings with libraries of furniture that create specification

lists based on the furniture used from the libraries in the drawings. This would have

been an invaluable tool in regards of time spent doing inventory and checking for

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correctness whenever a change was made, and eliminated some of the margin for

error. Creation of a database or use of a tool such as MS Project would have helped to

track the project deliverables and to make changes in the project schedule as

necessary; cut down on time spent on tracking and increased the overall job profits.

Project 2: Century 21 Town & Country- Commerce Office

Project Charter: Century 21 Town & Country is one

of the largest Century 21 offices in the state. The

company is privately owned by Mr. John Kersten,

who began his business in 1980 with one office,

eventually expanding to include more than sixteen

offices. (Century 21, 2008) Since, the company has downsized to now having ten

offices in the metro Detroit area. Mr. Kersten was the primary decision maker regarding

all design decisions. Creative Office Interiors, Inc. provided the interior design for Mr.

Kersten on this and several other projects for his real estate offices.

Project Scope: For this project, my firm was contracted to provide the space planning

and furniture drawings for an approximately 20,000 square foot building for one hundred

real estate agents, specifications for all furnishings, purchasing and installation of the

flooring, wallcoverings, window treatments and all furniture. We worked with the

general contractor to provide the specifications for all of the finishes, and had to

coordinate the scheduling for the finishes we were installing (flooring, wallcovering and

window treatments). We had worked with the contractor on prior projects, which helped

in the coordination to get everything installed by the projected occupancy date. This

project began in late 2001, and was finally completed at the beginning of 2003.

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Project Management Plan:

Scope Management: The scope of what we were to provide

was managed through the contract agreements between my

firm and the client. It was clearly outlined what we were

providing and what was the responsibility of the general

contractor. The client was not charged for design time (for providing the space planning

and specifications), so time management in regards to the hours spent on revisions and

contractual changes was not tracked. Any additional services or addendums that were

made to the original contract were handled with new contracts.

Schedule Management: The schedule for overall construction was handled by the

general contractor, who provided us with a Gantt chart at the beginning of the project to

show the different parts of the construction process. From their schedule, we were able

to schedule preliminary dates for finish and furniture installation. As with US

Manufacturing, coordination and communication with the general contractor was

instrumental. We would contact the contractor weekly to make sure everything was on

schedule, and were out at the site frequently when installation was taking place to make

sure we were meeting the allotted time from the given schedule. We ordered the

furniture based on the time frame given and based on the lead times quoted by the

various manufacturers for both the finishes and furnishings.

Cost and Quality Management: The client was very

particular about the styling of the finishes and furniture

selected for his offices. The styling of the furniture and

finishes is traditional, and he used the same finishes for

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most of his offices, especially with new construction. Many of the items were custom

because we were matching items that had been discontinued that he wanted to use

from prior projects, and cost was not much of an issue because the quality of the

finishes was at the level he desired, and would last for years because they were of

better construction. The client was aware that the life-cycle costs of what he was

purchasing outweighed the initial cost investment for the higher quality items.

Risk Management: Risk management for the project was not a primary concern. We

made sure to communicate with the contractor weekly to eliminate any scheduling

issues that would arise. The risk involved with the purchasing of custom items was

minimized by having samples presented prior to ordering that we had to approve, so

there was no risk of something turning out differently that what we had envisioned or

ordered. As with US Manufacturing, we had the larger furniture orders delivered to site,

and had to coordinate the freight companies to have the manpower available at site to

receive their deliveries.

Procurement Management: Prior to ordering anything, we solicit a signed contract for

all items to be purchased from the client. Similar to US Manufacturing, procurement

was completed through the faxing of orders to the various manufacturers, who would

provide us with an order acknowledgement after it was entered, and an estimated ship

date. The acknowledgement would be checked for correctness, and ship dates entered

on a calendar and adjusted as necessary for scheduling changes.

Conclusions: This project overall went well, and was installed with little to no issues.

As with US Manufacturing, and due to the scope of the project, this could also have

benefited from the use of a furniture specification system that worked with the drawings

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to create an itemized list of furniture. This would have cut down on time spent verifying

the quantities of furniture to be ordered. A project management software or creation of

a database would also have helped to track the deliverables for the project in the

ordering and scheduling process. Also, the client is not charged for any of the time that

is spent creating the drawings, which can be hours of work depending on the size of the

building and number of revisions that are required to come to a final solution for the

space. The costs that are involved with this process aren’t associated with the job very

well, and many “gray” areas arise when negotiating costs with the client and justifying

profit margins. A different method could be negotiated with the client to ensure that

both parties come to a reasonable agreement.

Project 3: Century 21 Town & Country- Grosse Pointe Office

Project Charter: This was another project for Mr. Kersten and

his Century 21 offices, but was quite different from the other

project we had completed for him. The office was obtained

through an acquisition of several real estate offices, which he

merged with his own. The Grosse Pointe office was one of the

acquisitions, and was larger than any other office he owned in

the vicinity. He chose to make this location the primary office for this area, and

combined his office with the one that existed. This project was smaller scale, and took

about three months to complete. Time was a factor because the client was paying rent

on the other offices and wanted to get them out as soon as possible to the property he

owned (the new office).

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Project Scope: The Grosse Pointe office needed to have space for fifty to sixty real

estate agents. For this project, my firm was responsible for providing the space

planning, flooring, millwork, window treatments and some of the furnishings. We were

also responsible for the inventory and move of existing furniture, and specifications for

the finishes we were not providing (paint and bathroom finishes). The client was using

furniture from his existing Grosse Pointe office, from storage and purchasing some new

as well.

Project Management Plan:

Scope Management: This project was a little

complicated due to the logistics of the furnishings and

coordinating the scheduling. Because we were using

furniture from multiple locations, it was difficult to

determine sometimes what would work in certain areas

and we did several addendums to the original contract for

additional items as we proceeded through the project.

The client was aware of the conditions and the

possibility, so there were no surprises for any of the involved parties.

Schedule Management: This was another example of a project where we worked with

a general contractor regarding the scheduling and construction of the project. It was a

different contractor than we normally worked with, but communication was still essential.

The painting was complex in this interior because the styling of the building and finishes

was more contemporary and different than what is used in the other offices, so we were

on site much more often to reinsure that the plans were correct and easily understood

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by the painters and contractor. Once the construction and painting was completed, we

had the flooring and millwork installed. The move of the furnishings had to be well

communicated to the employees because everything had to be packed and

disconnected on a Friday so it would be ready to use the following Monday. Overall the

move went smoothly and the office experienced little to no down-time.

Cost and Quality Management: The cost of the interior furnishings was moderate; the

carpeting selected was a contemporary floor tile, so there were no custom design fees

as with Mr. Kersten’s other offices (which use a custom carpet) and installation is less

because of the ease of installing carpet tiles vs. broadloom. The cost of window

treatments was moderate as well as the building shared a common wall with the

neighbors to the west and windows were only along two sides of the building. The

quality of the items was still moderate-to-high to meet the client’s life-cycle expectations

for the interior finishes and furnishings, but because we weren’t purchasing an

exorbitant amount, the costs seemed significantly less than normal. The one place

where costs were high in this project was the installation, because of overtime costs and

the project having to take place on the weekend, there was a fifty percent increase over

the standard installation charges.

Communication and Risk Management: Communication once the project started was

handled in the same manner. Weekly calls weren’t necessary due to the proximity of

the site to our office (within five miles) and that we were involved early in the process

with the painting, we were able to clearly identify if the project was going to experience

any lag and notify the required parties. Fortunately, the project was completed in a

timely manner, and the client was able to move his office within the three month target

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date. Risks in this project were nominal, aside from the unknown working with a

different contractor. We were fortunate to have developed an agreeable working

relationship and future resource for construction projects. The other risk would be in the

matching of existing furniture to new furniture. We minimized the risk by retaining the

prior contracts to refer to for some of the furniture, and were able to work with the

manufacturer’s representative to match to some of the discontinued items.

Procurement Management: We obtained a signed contract after showing the client

samples of all interior elements for the finishes and furniture we were providing. Once

we have the signed contract and deposit, we proceed with contacting the manufacturers

to determine the lead times for all items we have to order. After receiving a schedule

from the contractor, it’s determined when the orders have to be submitted to the various

manufacturers based on when we need the item for installation. Acknowledgements

are sent from the manufacturer to verify the entered order, and checked to confirm they

match the purchase order. Items for smaller jobs such as this were sent directly to the

installer, and it would be our responsibility to correspond all ship dates, manufacturer

and freight company installation to them.

Conclusions: This project would have definitely benefited from the inclusion of design

time into the overall project scope for charging the client. Several hours were spent on

space planning of this building, and it changed several times due to the logistics of

merging several offices. Also, I believe a better system could be employed or initiated

to correspond with the installation companies. Everything was sent gradually as we

received acknowledgements from the various companies. They would have a listing of

the items from what was sent to them to get the initial quote, but sometimes changes

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were not communicated and there was no real outline to keep all parties on the same

page. I think that the database would have worked well in this application- once the

acknowledgements had been received from all manufacturers, a query could be run that

had all relevant information for the warehouse/installation company, sorted by date,

cross referenced with the installation plan, so they knew exactly when they were to

receive everything and where it was to be installed. This is especially crucial in projects

similar to this one, where existing and new furniture is used together.

Project 4: Automotive Youth Educational Systems (AYES)

Project Charter: The Automotive Youth Educational Systems is a non-profit partnership

among participating automotive manufacturers, participating dealers, and selected high

schools/tech prep schools. It's designed to encourage young people to consider

satisfying careers in retail automotive service, and prepare them for entry-level career

positions or advanced studies in automotive technology (AYES, 2008). AYES

contacted my firm in 2003 to provide space planning for their relocation to a new, larger

suite in their office building. I worked primarily with the director and her assistant of the

Troy, MI branch.

Project Scope: The project began with a contract for a total of fifteen hours of space

planning and design work to include:

Furniture plan with systems furniture reconfiguration

Existing furniture inventory

Installation plans for furniture move

Blueprint copies for the client

Furniture and electrical specifications

Revisions to furniture/space plan as necessary After filling the above contractual agreement, the client retained our services for

additional time, including the tagging of existing furniture and coordinating the move to

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the new office. We also helped with the selection and specifications of finishes for the

new suite, and provided a few new pieces of furniture as required for the systems

furniture reconfiguration (cubicles).

Project Management Plan:

Scope Management: Because there was no furniture and little furnishings purchased

for this project and it was primarily based on contracted design services, it was relatively

easy to track the number of hours worked and keep the time used within the scope of

the contract. Some of the “gray” areas were in regards to meeting time and trips to the

site- these were usually not included in the quoted hours to the client. The client was

understanding and agreeable when a new contract had to be signed because the time

in the prior one had been exhausted.

Schedule Management: During this project, we had to rely on communication with the

client to schedule the installation and move of the furniture. The move was based on

the projected construction completion date given by the building owner/management

company. The delivery of furniture was not a factor due because there were only a few

parts that were needed, and they had a short lead time from the manufacturer. Once

the construction was completed, we only had to schedule the move date with the

installation company.

Cost and Quality Management: Cost and quality were not much of an issue with this

project. The costs were mostly design-related, and the client was charged at a

competitive hourly rate for all services provided. The installation company’s charges

were also competitive with other companies in the area. The installation took place on

the weekend, so the cost was fifty percent above the standard rates. Quality was not

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much of an issue on this project. The installation company we had worked with on

several prior projects and were confident in the level of work they provided. The quality

of the furniture we were working with was good, and the re-configuration of the systems

furniture went smoothly and without any issues.

Communication and Risk Management: The main risk was in communication with

this project, because we did not have direct contact with the construction manager and

had to rely on the client to communicate the schedule and any changes that may have

arisen. There is also always some risk when executing a systems furniture re-

configuration, because each manufacturer is a little different in their joinery and

allocations, and I was not familiar with the systems furniture the client had. I was able

to rely on the installation company and to assist with the identification of the systems

furniture and the manufacturer’s representative in ordering the additional parts needed.

Procurement Management: The procurement procedure was straightforward and

simple on this project, being primarily for design services and with the installation

company for the move. The only area we had to work with an outside vendor was for

the purchase of the systems furniture component, and the delivery of these to the

warehouse was not an issue because they were easily stored parts.

Conclusions: This project overall was one of the easier and straightforward of all the

projects I worked on when in the design industry. There was minimal risk involved, and

the amount of work done in the office was almost all billed directly to the client. A

project management tool would have been beneficial for inventory of the client’s

furnishings, and all the parts that were used in the systems furniture configuration, as

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the client continued to come to us for additional design services and re-configurations

as their business and needs grew.

Project 5: Park Rite- St. Clair Shores Office

Project Charter: The Park Rite Corporation was founded in 1975 by three brothers and

provides parking services in Detroit, Ann Arbor and Dearborn. We became referred to

Park Rite after one of the brother’s businesses moved in to our firm’s neighboring suite.

Park Rite had purchased a small office building in St. Clair Shores to run some of their

operations from. We worked with two of the three owners, and one of their sons who

would be working in the building, on the project. (Park Rite, n.d.)

Project Scope: This project was smaller in scope, and the client had purchased the

building. My firm was contracted to create all necessary drawings for construction, as

well as supply the finishes and furniture for the client to occupy the space. Construction

for the space was contracted by the client to be completed by a family member. We

provided the demolition drawings for the contractor that showed what existing walls

needed to be removed, and where new walls should be installed.

Project Management Plan:

Scope Management: The building was small, and we did not charge for the design of

the space planning for the construction documents because the client was purchasing

all of the finishes and furniture from us, and the profit for the project was built into their

prices. Any items that were added after the initial contract was signed were done as an

addendum to the original contract. The client later added flooring for one of the storage

rooms and reconfigured one of the offices’ systems furniture when they added another

person to their staff.

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Schedule Management: There were some conflicts with the scheduling of the

installation of furniture due to construction delays. The client was a little laissez-faire

because they owned the building, family was completing the construction at a

discounted rate, and they had signed our contract and given us a deposit for the items

to be purchased. The client in this case was also our liaison for information regarding

the construction schedule and when we could plan to install the finishes and furnishings.

The project ended up taking a few months longer than the original completion date. We

had ordered the finishes and furniture based on the original date, as changes in the

construction schedule were not corresponded with us. As a result, our installation

company wanted to charge storage fees for the furniture it was holding in their

warehouse, waiting to install. We had to negotiate with the installers and the client to

get a commitment to the completion of the project or would have had to pass on storage

fees to the client for their new furniture that was sitting in storage.

Cost and Quality Management: The client had requested a traditional to transitional

style at a competitive price point. We selected a transitional furniture style for the office

furnishings, and used systems furniture for the other areas. The furniture selected was

a medium-level quality, well-constructed that will serve the client well for its purpose.

The finishes selected were commercial-grade quality based on the aesthetics the client

desired with the quality needed for the applied use.

Communication and Risk Management: Communication proved to be the main

source of risk in this project. Dealing with a contractor that is related to the client proved

problematic. To circumvent this, we should have had a solid line of communication for

scheduling changes. There were not many other risks related with this project aside

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from having to negotiate with the installation company to hold the furniture longer than

they should have.

Procurement Management: Procurement of deliverables was handled in the same

manner as other projects. When we received the signed agreement from the client,

manufacturers were contacted to determine the lead times for all elements to be

ordered. From this information and the construction schedule provided, we scheduled

the purchase orders to be submitted as needed based on the lead times and scheduled

installation dates. This could have been managed more effectively though better

communication with the client and construction company.

Conclusions: The end result of the project was positive. Once everything was

installed, the client was pleased with their new office building. As noted above, better

lines of communication would have proved beneficial, but the overall results were

positive and the client did return for more work in the future. As with other projects, a

project management tool for scheduling and tracking of orders would eliminate some of

the time spent when changing elements and being able to project due dates.

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Below is a matrix that maps the elements I have learned in the MS Project Management

courses to the projects I have explored as part of this assignment (information for matrix

was obtained from http://www.madonna.edu/pages/mspromgtrc.cfm):

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References Automotive Youth Educational Systems. (2008). General Information. Retrieved June

10, 2008 from https://www.ayes.org/about/general_information. Century 21 Town & Country. (2008). Our History. Retrieved June 5, 2008 from

http://www.century21town-country.com/aboutus/history.asp. Kerzner, PhD., H. (2006). Project Management: A Systems Approach to Planning,

Scheduling and Controlling. (9th ed.). John Wiley & Sons: New Jersey. Meredith, J. R. & Mantel, Jr., S. (2006). Project Management: A Managerial Approach.

(6th ed.). John Wiley & Sons: New Jersey. Park Rite. (n.d.) Company information retrieved June 10, 2008 from

http://www.park-rite.com/index.html. Photos for Century 21 and U.S. Manufacturing retrieved June 21, 2008 from Creative

Office Interiors, Inc. (2008). http://www.creativeofficeinteriorsinc.com. Project Management Institute. (2004). A Guide to the Project Management Body of

Knowledge. (3rd ed.). Project Management Institute: Pennsylvania. U.S. Manufacturing Corporation. (2006). About Us. Retrieved June 1, 2008 from

http://www.usmfg.com/aboutus.aspx.