Professional project management and control techniques were not used during execution and close-out. The project encountered time and cost overruns, and project cash flows were not financed efficiently.
The Custom Woodworking Company launched project Woody 2000 in the spring of 1989. The project encountered several problems in conception and execution with substantial cost and time overrun. After the completion of the project, an external project management consultant was hired to conduct post project appraisal.
A typical project include three phases, viz., Initial, Intermediate, and Final. The first phase involves conceptualization and planning, while the intermediate phase constitutes execution and monitoring, and the final phase includes project close out. The cost and staffing is lower at the initial phase of the project. During this period, the level of uncertainty is the highest and the risks of failing to achieve the objectives are the greatest. The certainty of completion progressively gets better as the project continues. The ability of the stakeholders to influence the project is highest at the initial phase and gets lower towards the final phase.
The contribution of the project to the strategic goals of the company was never objectively quantified. ...