A successfully metal components manufacturer company won a contract in which changes on package design was required. Manufacturing was the main corporate profits for the company, and consequently, the vice president of manufacturing occupied the second most powerful position in the company. The decision to implement project management was made, but the vice president did not support it, because of his personal concerns of losing power and authority.
Telestar International
Telestar won a contract with the Department of energy Resources for the development and testing of two waste treatment plants, which opened the opportunity to work in a new field for Telestar. The original bid was $847,000, but the contract was closed at a firm price of …show more content…
There will be opportunities in which a company compromises profitability to gain long term benefits as keeping clients as regulars or gaining experience; however, when this is the case, all details related with the project must be clearly stated, making sure that the quality of outcomes are not compromised. One extremely bad decision made by Telestar was to assume a project in a field in which their experience was limited, taking all the risks associated with the project as their responsibility (especially financial risks) they were in a great chance of failure on this project. On the journey of becoming mature in project management, they showed no sign of …show more content…
Also, their estimating techniques were not quite effective, especially considering that just after few months they were already expecting outstanding increases on the original budget. Telestar was on the right track towards project management maturity; however, selecting project that compromises the future of the company (as this one) shows their immaturity on the field. Costs and schedule control will help them to make more cost-effective decisions, and help the company to achieve maturity and increase their profitability instead of incurring of devastating
Telestar International
Telestar won a contract with the Department of energy Resources for the development and testing of two waste treatment plants, which opened the opportunity to work in a new field for Telestar. The original bid was $847,000, but the contract was closed at a firm price of …show more content…
There will be opportunities in which a company compromises profitability to gain long term benefits as keeping clients as regulars or gaining experience; however, when this is the case, all details related with the project must be clearly stated, making sure that the quality of outcomes are not compromised. One extremely bad decision made by Telestar was to assume a project in a field in which their experience was limited, taking all the risks associated with the project as their responsibility (especially financial risks) they were in a great chance of failure on this project. On the journey of becoming mature in project management, they showed no sign of …show more content…
Also, their estimating techniques were not quite effective, especially considering that just after few months they were already expecting outstanding increases on the original budget. Telestar was on the right track towards project management maturity; however, selecting project that compromises the future of the company (as this one) shows their immaturity on the field. Costs and schedule control will help them to make more cost-effective decisions, and help the company to achieve maturity and increase their profitability instead of incurring of devastating