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Case Study#2

Shakeena Sparks

BMGT 488

20 July 2019

University of Maryland
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Green Company Project Overview:

A green company is a business that uses recyclable and natural materials to make

products. They aim to protect the environment, societies, and communities by providing the safe

products. The company also focuses on the health of its employees and wish to bring dignity in

the community (what is a Green Company?, 2015).

Scope of the Project:

Green company will be producing solar windows. The scope of making these windows is

described below:

• Green company will be producing solar windows at the company main manufacturing

location.

• Solar windows will use “thermochromism’’ that enables the windows to change color

with changing temperature.

• The solar system will use organic molecules to absorb sunlight.

• Glass for creating windows will be aluminum-framed, which enable it to become energy

efficient and thus save cost.

• The aluminum-framed glass will be recyclable, durable, and reduce the amount of heat

power (what is a Green Company?, 2015).

• Solar windows meet the standards of product development, as stated by law.

• Customer requirements will be a focus while creating windows. Windows will be made

according to customer’s specifications.

• The project will start on 1st August, and the Project will be completed within three

months (what is a Green Company?, 2015).

• The Green Company will produce solar panels 3000 units per month.

• After developing the solar windows Company will deliver it to its supplier ‘’XRP

company’’.

• A green company is not responsible for installation after the product has been delivered

(what is a Green Company?, 2015).

Stakeholders of Green Company:

Name Department/Position
Director of Project Management
Phil Graham
Project manager
Rosalie
Functional Manager
Keith

Customer
Supplier
XRP Company
Lab for testing and approval products
ABC Lab
Safety inspection
OSHA
Supplier of thermochromism
YYZ Company
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Risk Matrix:

Risk Matrix (Green Company Project)

Likelihood
Almost Could Known to Common
impossible Not likely occur occur occurrence
20 (Schedule
5 10 15 25 (Cost risk)
Catastrophic risk)
12 16
8 (Governance
4 (Legal (Performance 20
risk)
Major risk) risk)
Impact
Moderate 3 6 9 12 15

Minor 2 4 6 8 10

Insignificant 1 2 3 4 5

Low risk
Medium risk
Significant
risk
High risk

1. The project manager should have realized that schedule was out of scope at the time of

agreement. No contract must be signed without intimation of schedule agreed in writing and signed

by both parties. In this case, the project manager didn’t know the delivery schedule and didn’t

know the number of panels to be produced. So, he estimated 3000 units to be produced within a

month. When the project manager got the information that the plant will be available two months

ahead at that point, the project manager should have again determined the schedule. The budgetary

costs closely link with the schedules. Therefore, the project manager must have calculated the risk
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of overrun budget cost due to no fixed delivery schedule and lack of information on requirements

by the regulatory authorities of the industry i.e. OSHA and EPA, at the time of contract.

The project manager must have renegotiated the terms of the contract related to rescheduling and

budget when Green informed him of early arrival of their production plant.

2. It is the responsibility of OSHA and EPA to ensure the safety of workers working within an

organization. OSHA provides requirements for approval of the product. In this case, the final set

of specifications depending on the requirement Of OSHA and EPA. The execution of the contract

started about 6 months before any clear specifications reached at ABC. That’s the reason customers

could not provide a specification to the functional manager. When customers provide specification

after six months so, the company had to remake 6000 production units because they cannot meet

the new specifications.

There were also defects and errors in the product which occurred because the specifications were

not provided for product standards. The delays in production was caused by errors and defects in

the product. These errors and defects were not due to the working by the staff, but rather due to

lack of specifications in the contract.

3. Successful project completion depends on communication within an organization. Both upward

and downward communications are important in executing a project. So In an organization, Face

to face meetings, annual meetings, and general meetings must be conducted between managers.

As well as opportunities for informal communication should be provided to managers. E-mails,

memos can also be a good tool for communication. Communication was not effective between the

functional manager and project manager. Meetings must be organized so that the manager can

communicate and share their suggestions. The primary issue was the functional manager were
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communicating unwanted to the employees about their overtime. This creates unrest between the

employees, and unrest as generally employees wish to earn more through option of overtime.

4. The risk for the functional manager and the project manager were as:

Schedule Risk: There was no fixed schedule for deliverables, so the company was not able to

estimate the demand level by the customers.

Performance Risk: The authorities did not provide clear Specifications like OSHA and EPA. They

were waiting for testing of the plant. There was a risk to meet the expected specifications.

Cost Risk: As schedules and specifications were not provided, it ultimately lead to high cost. So

the project become cost overrun (Project overrun, 2019).

References

Project overrun. (2019). Retrieved from https://learn.umuc.edu/content/enforced/387546-

001150-01-2195-OL3-

7380/Case%20Overrun%20pdf.pdf?_&d2lSessionVal=oeOK1HT8wlSSrroxbcMXhZ6lf

what is a Green Company? (2015, September 13). Retrieved from http://gr8energy.com/what-is-

a-green-company/