Case Study 9 Chapter No. and Topic: Chapter: CHAPTER 9 - Project Resource Allocation and
Case Study 9 Chapter No. and Topic: Chapter: CHAPTER 9 - Project Resource Allocation and
Case Study 9 Chapter No. and Topic: Chapter: CHAPTER 9 - Project Resource Allocation and
Quality Case No. and Title: Quality Case 9- ISO Certificate a Must for Miners
EQUIVALENT ___________
Case Question:
The Marcopper mining disaster is one of the worst mining and environmental disasters
in Philippine history. It occurred on March 24, 1996, on the Philippine island of Marinduque,
a province of the Philippines located in the Mimaropa region. The disaster led to drastic reforms in the
country's mining policy.[
A fracture in the drainage tunnel of a large pit containing leftover mine tailings led to a discharge of toxic
mine waste into the Makulapnit-Boac river system and caused flash floods in areas along the river. One
village, Barangay Hinapulan, was buried in six feet of muddy floodwater, causing the displacement of 400
families. Twenty other villages had to be evacuated. Drinking water was contaminated killing fish and
freshwater shrimp. Large animals such as cows, pigs and sheep were overcome and killed. The flooding
caused the destruction of crops and irrigation channels. Following the disaster, the Boac River was
declared unusable.
Is the amount of $20 million good enough to compensate the damages that Marinduque suffered?
Defend your answer.
No, $20-million settlement was not enough to compensate for the environmental damage wrought by
the mining disaster on the island. The province cannot expect areas in Boac, Mogpog and other towns in
the province to be restored to their former conditions prior to the 1996 disaster. The proposal is highly
prejudicial to the interests of the people of Marinduque.
Accepting the pitiful settlement amount, although better than nothing, is still a disservice to the extent
of the damages done both to the environment and the local residents of Marinduque.
What are the valid reason/s why the Department of Environment and Natural Resources mandated all
mining contractors to secure certification from the international organization (ISO)? Discuss these
reasons.
DAO 2015-07 institutionalizes an environmental management system that ensures the adherence of
local mining operations to international standards, particularly the ISO 14001 Certification, as a measure
of responsible mining in the country. It will ensure that appropriate measures are put in place to achieve
minimal negative impacts of mining on the environment.
As mandated under Executive Order No. 79, it will also guarantee the compliance of mining contractors
with applicable mining and environmental laws, regulations, and requirements in mining operations
while gearing towards growth.
All mining operations in the country will undergo an assessment to determine if the work activity is
doing good for the people and the environment or causing harm. Also, mining companies must secure an
International Standards Organization (ISO) certification.
The ISO 14001 standard is the most important within the ISO 14000 series. ISO 14001 specifies the
requirements of an environmental management system (EMS) for small to large organizations. An EMS is
a systemic approach to handling environmental issues within an organization.
The assessment will determine if mining operations are "... good to the people or are they killing the
rivers, streams? Are they creating suffering to our farmers and fishermen? We have to evaluate it, but
my stand on the common good is non-negotiable."
The DENR shall undertake a periodic review of the mining operations of all MA or FTAA holders in the
operating period to ensure compliance with environmental standards, laws and regulations, including
conditionalities of their ECCs and Environmental Protection and Enhancement Program.
Subject: PA 515-PROGRAM ADMINISTRATION AND PROJECT MANAGEMENT
Quality Case No. and Title: Mini Case Study 9- D.U. Singer Hospital Product Corp.
EQUIVALENT ___________
Case Questions:
1. What are the potential problems of the plan (if there is any?) What are the
opportunities?
1. Inappropriate Leadership or Executive Sponsorship The number one reason for project failure
in most instances is lack of executive sponsorship and inappropriate leadership. Having Mike
Richards as the Project Leader in my opinion is not appropriate as he is a scientist and probably
does not have the appropriate skills. My feeling is that he should be a sub project manager, in
other words, act in a supporting role to another project manager and be part of a cross
functional team involved in the management of the project.
2. Sequential vs. Parallel running of activities which may be run in parallel may be run
sequentially through bad planning thus tending to increase the overall project completion time.
3. Over allocation or under allocation of Resources In the initial stages of the project there is
heavy over allocation or resources especially for the R& D group. In the later stages there is
under utilization of purchasing department resources.
6. Inadequate Project phasing and milestones. On a long project like this one if activities are not
split into phases and milestones with signoffs for each phase there will be much more room for
scope creep.
This project is comprised of resources from various different groups within the organization.
Inadequate communication between the groups may also derail the project. For example,
manufacturing is highly dependant on an appropriate study being performed of the facilities
requirements (activity i). In order for this study to be successful the right level of input is required
from R & D. Therefore if R & D does not perform their duties correctly this has a direct impact on
manufacturing.
8. Inadequate resource leveling. There is inadequate leveling which means that there is not a
smooth flow of labour costs and resource allocations between the periods.
9. Setting goals too high. It is quite possible that the goal of producing a 95% yield of product
may not be tenable. The impact of this could mean that project running perpetually to get things
right. Therefore, this goal needs to be carefully discussed and analyzed to determine the
probability of the organization achieving it.
10. High documentation and regulatory requirements Although this should contribute to an
enhanced product and improved process this may have the impact of slowing the project down.
1. Existence of Slack This means that there is room for improvement in terms of resource
allocation and potential for project completion time to be reduced.
2. Opportunities for team work, cross skilling and communication across different organizational
functions Being a cross-functional project means that the potential exists for developing cross-
skilled employees. This too will assist in the allocation of resources in areas where there are
under or over allocations. I believe that for this particular project cross-functional teams should
be built. For example, involvement of manufacturing in the design and development stage of the
product will contribute to its success.
3. Opportunities exist to run tasks in parallel as opposed to running them sequentially. The
obvious impact is an improvement in the project completion time 4. Opportunities exist to
develop intellectual property to be developed in the form of formulas etc. The value being
created in developing this product is not purely financial i.e. revenue based. There is an
intellectual value being created by design of a formula and increasing the knowledge within the
R& D department. Therefore, if the product does not sell well some value has at least been
created and this should contribute to the company's success by enabling further product
development at a later stage.
2. Should the executive committee approve the plan? Why or why not?
The plan should not be approved until there is an appropriate value proposition or business
case which I feel has not been given here. In this particular example a costing has been
performed without an adequate look at the benefits of such a project or the projected revenue
streams. The benefits can be quantified in more ways than one. There are financial benefits in
terms of revenue and then other benefits which add more to the value of the company than the
revenues. Examples are research and development efforts as well as improved cross skilling
and training of employees which adds to the value of the intellectual property of the company.
As difficult as it may be a financial value should be given to all the benefits which may accrue to
a project so that it can be established whether it is worthwhile for the project to be considered.