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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS

Bad Metrics for Earned Value
Don Hallum

I
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despite having acceptable Schedule Performance Index (SPI) mainly due customer- mandated
changes in the project scope during its implementation
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Moreover, it is
important to base the decision regarding the completion of the project according to various criteria
such as market share, customer satisfaction, resource’s availability as they may have to start with
a new project, also what are the risks if they handle it or continue for both contractor and customers
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EXECUTIVE SUMMARY

Controlling a project is key to the success or failure of the project
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It is an easy tool to generate early warning
signals to timely detect problems or exploit project opportunities
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Company wherein there was a bad failure on a
specific project concerning manufacturing a new brand Airplane Boeing 787 which was not
derived from an existing certified airplane
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The Boeing 787 Project was assigned to Howard Bono, a Technical Project Manager
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Meanwhile, he saw that the customers were uncomfortable with the mechanical properties of the
material produced with the new process since the material it produced was very hard and
inconsistent
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However,
the project still failed
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III
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is one of the leading companies for aviation electronics that was
established in the 1980s
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The Program Manager
for the new development project, Mike Thompson, hired Howard, who was a Mechanical Engineer
in 14 years as a Technical Project Manager
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Meanwhile, the company won the project due to their lower recurring cost for the system, and
attaining this level of the recurring cost was dependent on using the new process
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The new system in the airplane should be certified by customers
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The following members were involved in
the new project: (1) Mike Thompson, Program Manager for the new development project; (2)
Howard, Technical Project Manager; (3) Ward Robinson, Director of the Engineering department
at a relatively small business unit; (4) Art Blake, Mechanical lead engineer; and (5) Dave Jansen,
VP of the business unit
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intended to include the new process in developing
the structural parts
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The project type was a
nontraditional project as it was a complex project and includes: (1) Uncertain requirements; (2)
Uncertain scope, as the scope is defined by customers; (3) Uncertain deliverables; (4) Complex
interactions; (5) Use of large virtual teams
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Key challenges:
- Acme Avionics, Inc
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- The customers were not comfortable with the mechanical properties of the material produced
with the new process
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- It was required to conduct some material property testing to prove that the margins of safety
arrived at was accurate
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- The major discovery of the problem occurred after testing some specimens in the lab
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- One specimen of the 30 that broke well under the typical value
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They stated that the one low specimen showed that the process was not
adequately controlled and that they were not sure how they could certify Acme’s system on
the new airplane
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The vendor would then subcontract a
local test lab to conduct tensile testing of these parts; five specimens from each of the six
structural parts to satisfy the customer’s project management requirements
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- The problem that come at last happened after the meeting was arranged at the regional Aircraft
Certification Office of the Federal Aviation Administration (FAA)
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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS
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IV
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A critical certification test for
the airframe was behind schedule
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That meant that if Acme felt their parts could not stand the new load without deformation,
there are only two choices: (1) Acme could redesign the parts quickly using the new
manufacturing process and hope that it could meet the loads within the space constraints
imposed on them, or (2) Acme could take the existing design and move it to a more expensive,
but certifiable manufacturing process
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COMPANY ANALYSIS
SWOT ANALYSIS

INTERNAL

FAVORABLE

UNFAVORABLE

Strengths
- Leading company in
avionics
- Established sales

Weaknesses
- average communication and
coordination framework
- Delay in its other future
products/projects due to low
CPI/increasing EAC of existing
project

EXTERNAL Opportunities
- Expanding market

V
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This alternative is beneficial due to its steady increase in estimation at completion
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However, the project has to
be completed within the stated time in the contract
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The lack of awareness of the new TPM regarding the project scope part of the client
resulted in changes in the schedule and costs
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Option #3: Use new tools and define more metrics to measure and monitor the project
progress
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The TPM must use new tools and define more metrics to measure and monitor the
project progress and also prepare a risk analysis while considering the project from all
aspects
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DECISION MATRIX
Alternative Course of Action
Dissolution of the Boeing 787
Project
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Use new tools and define more
metrics to measure and monitor
the project progress
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VI
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Also, prepare a risk analysis and study the project from all
aspects

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