Center

Center for Executive Education (CEE)

Degree/Diploma

Post Graduate Diploma in Project Management

Advisor

Dr. Muhammad Wasif

Project Type

PGD Project Report

Keywords

Change Management, Cost Overrun, Teaching Case

Executive Summary

Change is one of the most evident attributes of the world we live in. It constantly happens and evolves our surroundings, as well as our thinking. . Projects being a temporary activity, are sensitive to many internal and external factors which prove one thing: modifications, unexpected events, unpredictable happenings can’t be avoided but they can be controlled in a project by changing according to events and requirements. Leaving change-related decisions unattended results in catastrophic creeps, delays and overruns. This case study puts light on a change-related situation and inadequate decision making which resulted in a serious overrun in time and cost due to modification of scope which could be easily handled had there been a system in place for handling changes. The case study analyzes the procurement of lifts on a pharmaceutical project. Initially, 47 lifts were to be procured. A vendor from Germany was selected and an order was placed. Due to external factors, a number of lifts was revised to 12. In the second revision, the number was reduced to 10 due to which OEM invoked a 25% penalty clause. After paying the penalty, a Chinese OEM was searched and an order was placed. The specifications were overlooked and the Chinese lifts were of different dimensions therefore they couldn’t be installed without substantial modifications to the structure. This caused bitterness between stakeholders. The civil contractor demanded additional resources to complete modifications in a tight schedule. The modifications couldn’t be completed in due time and lifts arrived on site with the warranty period passing without the lifts being installed. Overall, none of the objectives were achieved while a cost and time overrun occurred which negated all the efforts to prevent it. This case analyzes this mismanagement from the perspective of change management and recommends that adequate change control should be in place and alternatives should be evaluated thoroughly, risks analyzed and effective communication to happen between stakeholders before opting for the change. The case study comprises of literature review, methodology, case analysis, teaching notes and a conversational form of the case.

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