Course: Executive Diploma in Project Management

Assignment: Case Study

Submitted by Group 2

Group 2 Members:

Lee Kwok Shing (John)

.

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An international Fargo Foods is an international food manufacturer, which owned owning its can
facilities in 22 countries, producing. Its products include canned meats, poultry, fish, vegetables,
vitamins, as well as cat and dog foods. In the previous 8 years, Fargo Foods had achieved 12.5 percent
growth rate. Starting in 5 years ago, the president decided to invest large portion of retained earnings to
capital equipment projects, which includes Reaching a new earning growth rate in the future other than
the 12.5 percent growth for the previous 8-year, the president of Fargo Foods had decided to start
equipment projects, including constructing 3 -new -production -plants in each of the five years and
modifying the production part of the existing plants, so that the productivity can be increased without
hiring more labors,. Even though the capital equipment projects were able to be completed, the top
management of the company is now looking for suggestion such that the projects can be operated more
efficient.

a deliverable as shown in appendix 1, to boost up productivity. Even though the projects and every plant
commenced, by the end of the day they failed.

After sifting through the “Question-&-Answer” documents from the Project Management Consultant,
our professional project group analyze and summarize six issues why the projects fail, and come up with .
Coming up with short-term and long-term solutions, and recommendations that would improve would
apply to the current and future projects for Fargo Foods.

1. Project Organization Structure

Instead of using a project organizational structure, the president of Fargo Foods implemented a matrix
organizational structure in all construction projects leading to project failure.

The short-term solution is that the top management should construct implement a new the project
organization structure, which is shown in appendix 2, followed by organizing face-to-face interviews
with all stakeholders. The interview steps are suggested as follows:

 collecting the project requirements, materials, specifications and design

 reviewing the project scope provided by interviewees
 further-discussing with the interviewees over the phone to clarify any ambiguities or difficulties
 asking interviewees to draft a new project-item-list

For long-term solution, the top management is advised to hold face-to-face meetings to follow up the
interview, and obtain the solicitation of comments and feedback from interviewees with amendments
and confirmation of making a draft of project-item-list into a formal one with all stakeholders signed
off.

2. Project Initiation

It is found out that the planning group collected the idea by informal meeting with various line
organizations for the rough-estimated cost and time without a project manager involved in.

The short-term solution is to hire a project management company as a project leader to run initiate the
upcoming projects. The reference links are in the following.

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 https://www.mottmac.com/article/1081/project-management
 http://www.ramboll.co.uk/services-and-sectors/buildings/project-management
 https://pm-alliance.com/project-management-services/project-management-consulting/

The long-term solution is to replace the unprofessional planning group with an experienced and
pragmatic project manager authorized by a charter created by the top management to lead the projects.
The project manager has to hold formal face-to-face project meetings with all project stakeholders,
identify and generate ideas for all requirements by using mind mapping as shown in appendix 3, and
compile a list of objectives as depicted in appendix 4, assumptions in appendix 5, constraints, risk
evaluations, changes, and get them approved from the top management. All stakeholders have to sign off
and update each project meeting minutes and agenda to follow up.

3. Project Planning

Fargo Foods’s executives made up their mind to use the rough estimates and schedules as detailed
estimates and schedules respectively, lacking of consulting line managers and project managers.
Consequently, the cost overran and schedule slippages.

Obviously, there never has proper communication proceeded. Online communication tools such as
WeChat, https://www.wechat.com/en/, WhatsApp https://www.whatsapp.com/download/, are used to
discuss and share project questions, comments, issues, and solutions for each other by means of creating
a group chat for all stakeholders. Furthermore, the discussion contents can be transferred into meeting
minutes as shown in appendix 6 as records to update.

Referring to the long-term solution, hire a permanent project manager with experience to hold weekly
face-to-face meetings with all stakeholders, listing out all items through mouth-of-word are recorded into
meeting minutes with all stakeholders signed off. Then the project manager should start a project
planning as stated in appendix 7.

4. Scheduling and Budgeting

The planning group had schedules and costs different from the project managers, causing conflict and
dispute for each other. In addition, the planning group began their work with a very crude statement of
work, expecting the line managers to read in between the lines and fill in the details. The project managers
developed a detailed statement of work and a work breakdown structure on their own.

The short-term solution has to ascertain whether or not the costs and schedules are workable. Employ a
project-based project manager who has good project-reference and reputation to look into and assess
them with all stakeholders in formal face-to-face meetings or videoconferences, and record all items in
the meeting minutes following the approval of the top management.

Prioritize the schedule followed by budgeting as the long-term solution. Once the schedule has a green
light, the budget will be created referencing to the approved schedule as they are interrelated. The longer
the schedule is, the higher the budget is. On the other hand, the shorter the schedule is, the lower the
budget is. At the end the baseline plan should be set for the approved schedule and budget to keep the
projects in the right track.

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.

5. Mixed-up Roles and Responsibilities

Executives sometimes changed milestones on their own that the project manager and the line managers
only knew about it during the projects behind schedule.

As for the short-term solution, set up an approval procedure by a contract-based project manager as a
central coordinator with all stakeholders. The executives should assist the top management in final
approvals, while the project manager would take charge of the first budgeting and scheduling approved.

For the long-term solution, Fargo Foods should hire a project management consultancy such as to run
the project, mitigating the employees workload, resources, and risks. The related links are as follows.

 http://www.technip.com/en/our-business/services/project-management-consultancy
 https://www.arup.com/expertise/services/advisory-services/programme-and-project-management
 http://www.aboutpmc.com/

6. Incompetent Project Leader

The best technical experts were picked as project managers to deliver the projects, but they are just
doers, not mangers. Project managers and project engineers gave technical direction to functional
employees, ignore the other technical experts and line managers.

Regarding toughing out the issue for the short-term solution, appoint a skilled and experienced project
manager from other departments as a project leader to execute the projects. As the project manager has
been familiar with the Fargo Foods’s culture, structure, background. Walking down the right direction
and path leads the project team, so that costs, time, and resources allocation would be saved as much as
possible.

As far as the long-term solution is concerned, training the technical experts becomes project managers
by taking part in studying project management knowledge in the following.

 events: http://www.ipma.world/events/
 seminars: https://www.pmi.org/learning/training-development/seminars-world
 workshops: http://www.amanet.org/training/seminars/comprehensive-project-management-
workshop.aspx

For those becoming project managers who have completed training would apply what they learned to
projects running and pass knowledge to the team members, which would also upgrade and benefit the

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organization for the future development and for the further expansion. In addition, they would
gradually generate their loyalty to the organization and keep the employee retention rate lower.

Recommendations

Conclusion

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Appendix 1

Deliverable of Fargo Foods

Purchasing
New
Creating New Equipment
Manufacturin
g Plants

Form a Project
Team

Global Business Expanding

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Appendix 2

Project Organization Structure of Fargo Foods

President

Top Management

Project Manager

Design Manager

Line Managers Vice President of Engineering

Ine

Project Management

Project Engineers

Procurement

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Appendix 3

Mind-mapping

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 Feasible Project Plan Change Definition Feedback System

Project Goal and Vision Documentation System

Company Culture Learning from Mistakes

Pragmatic Project Team Communication

Company Resources Team Commitment Spirit

Top Management Support Correct Resources Allocation

Critical
Success
Management Support & Style Quality Contractors and Vendors
Factors of a
Project

Employees Training and Development Flexible to Changing Environment

Appendix 4

Define Objectives at Project Initiation

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 Define
Objectives

Project
Find out Successful Identify
Assumptions at Constriants
Initiation

Risk
Elevations

Appendix 5

Assumptions
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Item Possible Issue
Materials  Unavailable within budget
 longer lead-time over schedule
Specifications  Unavailable in the local market
 Only 50 % of matching with the
design
Design  Inapplicable on-site
 Landlord disapproved
Appendix 6
Meeting Minutes
Feasible Solution
 Pick alternate ones
 Source other vendors
 Search foreign vendors
 Modify the design without
changing the original one
 Edit the design after the site setting-
out
 Revise the design
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 Project ID ECP-235 MMID 101

Project Name EC-project Issue Date January-1-1990

Meeting Date Every Wednesday

Meeting Time 11 AM

Venue Company Conference Room

Attendees:

President Line Managers Design Manager

Top management Project Management Vice President of Engineering

Project Manager Procurement Project Engineers

Absentees:

Appendix 6

ID Description Action Date Remark

by
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 1 Design
 Concept
 Construction drawing sets
 Revisions

2. Specification
 Equipment
 Equipment accessories
 Equipment operation manuals

3 Material
 Dimensions
 Life cycles
 Warrants
 Finishes

Other Businesses:

Issue Date of Agenda: Every Monday

Attendees Signature:

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––––––––––––––––––––––––– ––––––––––––––––––––––––– –––––––––––––––––––––––

––––––––––––––––––––––––– ––––––––––––––––––––––––– –––––––––––––––––––––––

Appendix 7

Project Planning

Project Organization Structure Page 13 of 14

 Definition Scheduling Budgeting

Objectives Master Program Tasks

Scope Design Dependencies

Constraints Material Work-break-down

Assumptions Approval Critical Path

Risk Assessment Construction Resources Allocation

Measurement Method Equipment Milestones

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