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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS

The Museum Company
Jovana Riddle

I
...

II
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However, despite the company’s reputation of delivering on-time
high-quality exhibits among the industry players they encountered a lack of cash inflows during
the progress of the project
...
Nevertheless, Oleg Zahar, the newly appointed CEO attempted to solve the problem by
selecting experienced project managers, hiring a skilled project management company that
provided them a four-day training with four modules that consisted of scope, time, costa and
integration and at the end of the course they were expected to apply all their learnings to create
a plan or strategy and execute it
...
All efforts mentioned above were done in expectation to solve the problem and to gain
positive cash flows in each phase of their project
...


BRIEF HISTORY

The Museum Company was a respectable military contractor, founded in 1977 and known
for building museum exhibits
...
The company differs from other industry players due to its
greater concern to quality over the cost of each exhibit that resulted in their negligence in
questioning the price charged to complete the project whenever they were working with the
contactors they were familiar with
...
Due to the problems and uncertainties that the company faced, Oleg Zahar, the
newly appointed CEO role was being challenged to completely grasp the concept of baseline
costs whereas it was used to measure and monitor the cost performance of projects and ensure
the profitability of each phase of the project and the completion within the set time or date
...
The reason behind this was that they failed to negotiate payment deadlines in advance
of performing/finishing work
...
Since the company was short
in cash, they would need to borrow from the bank and pay high interest each month just to fulfill

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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS
their payment obligations to their employees
...

In an attempt to solve the problem, Oleg looked for his most experience 15 project
managers that would help him solve the problem and hired a skilled project management
company to provide a custom-made training program that would help them solve the problem
...
Time, whereas they spent putting together a standard Gantt chart that
would help them categorize the start and finish dates of the core elements of each project and
payment points that would ensure positive cash flows of the project; (3) Cost, wherein the team
would identify a standard cost estimate template that is combined with cost contingencies and
time-phased budgets to establish cost baselines to ensure the profitability of the project; (4)
Integration, wherein they would apply and use the previous module’s learnings to create an
execution strategy/plan for all future projects
...

Meanwhile, during the implementation of the strategy, the Project Managers would be required
to have a deep understanding and knowledge of military exhibit design and comprehend how the
architecture piece of each project fit in with the actual construction of each exhibit
...
Once everything is settled, they can finally resolve the problem and
obtain a positive cash flow in each phase of their project
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COMPANY ANALYSIS
SWOT ANALYSIS

INTERNAL

FAVORABLE

UNFAVORABLE

Strengths
- respectable military
contractor
- reputation of
delivering– time
high-quality exhibits
- greater concern to
quality over the cost
of each exhibit

Weaknesses
- negligence to question the price charged
when they work with contactors they were
familiar with
- internal practices of the company were
uncertain
- no positive cash flow at the end of each
month
- failure to negotiate payment deadlines in
advance of performing/finishing work

EXTERNAL Opportunities
Threats
- Partnership
with - Unexpected budget risk will rise due to the
other companies
manager’s lack of knowledge in budgeting
...


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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS
V
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Conducting training and development could help enhance the abilities of the
employees that could lead to better ideas and strategies to obtain continuous positive cash
flows
...
Increases the employees’ efficiency towards work
2
...

Keep updated on the changes within the industry
4
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Enhance employee self-esteem
Cons:
1
...
No assurance that the attendees would be willing to learn 100% content of the training
Option # 2: Hire an autonomous consultant
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Pros:
1
...

2
...

Cons:
1
...

2
...

3
...

Option #3: Create an Internal Audit Department whereas hiring new employees would not
be necessary but could be the choice of the Top Management
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With that, the lack of cash flows of the company
could be eliminated
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Internal Audit Department familiarity with the procedures and process
2
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Applicable on a short term basis
4
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There will be independence & objectivity in the process

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CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS
Cons:
1
...


TIME
1
2
3

COST
2
1
3

EFFICIENCY
2
1
3

TOTAL
5
4
9

RECOMMENDATION

I recommend Option #3 which is to create an Internal Audit Department whereas hiring
new employees would not be necessary but could be the choice of the Top Management

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