10-3 Term Paper Submission QSO-680 Seminar in Project Management QSO-680 Seminar in Project Management Southern New Hampshire University 10-3 Term Paper Submission Tower Replacement Parts Project Katie M. O’Brien June 3, 2014 I work for a company that produces super nickel alloy powder for jet turbine engines. For use in this term paper I will call this company Metal Powder. I am the continuous improvement manager at Metal Powder. It was recognized in early 2011 that our atomization tower cleaning process needed to be streamlined to speed up cleaning time and decrease internal process time to be able to produce more powder heats in a year. The atomization tower is 60 feet tall and 24 feet in diameter. Metal Powder produces three separate alloys. When a new alloy is put in the schedule to be made Metal Powder must tear down the atomization tower and clean every part and the entire tower to a white glove inspection before beginning the next alloy. The tower cleaning is currently taking 3 to 4 days depending on the amount of buildup of atomized powder on the parts. As Metal Powders demand increases in the next six years it is imperative that Metal Powder turn the tower around faster and faster to gain additional capacity. Through the use of setup reduction it has been determined that a total of 84 parts at a cost of around $100,000 can reduce the cleaning time by one eight hour shift. This is a gain of 3 more “heats” of powder every clean. There are 10 to 12 cleanings per year which could be a potential gain of 30 to 36 heats per year. This application term paper will use the five phases of project management to implement the use of the new parts and ensure that the goal of saving one shift will be recognized. A team was selected of operators, engineers, production supervisor, continuous improvement, and maintenance personnel to help manage the project as resources. The breakdown of roles in the responsibility matrix is in Figure 1. Figure 1: Responsibility Matrix The project team created the Project Charter seen in Figure 2. Figure 2: Project Charter Project Information Project Manager Katie O’Brien Project Sponsor General Manager Project Description Determine and implement duplicate parts to be swapped out during atomization tower cleaning to optimize process and reduce downtime. Project Scope Business Purpose, Objectives and Goals: Metal Powder demand is going to increase two fold by 2020. To rise to this challenge Metal Powder must reduce downtime and increase capacity. Problem/Opportunity Statement: The problem of 3 to 4 days of downtime during an atomization tower clean affects Production and Quality departments and capacity The impact of which is Downtime of 30 to 36 days per year to clean the tower A successful solution would Be to reduce tower cleaning time by one 8 hour shift to gain 30 to 36 heats per year. Constraints Inclusions: All parts that are not permanently .

1. 10-3 Term Paper Submission QSO-680
Seminar in Project Management
QSO-680
Seminar in Project Management
Southern New Hampshire University
10-3 Term Paper Submission
Tower Replacement Parts Project
Katie M. O’Brien
June 3, 2014
I work for a company that produces super nickel alloy
powder for jet turbine engines. For use in this term paper I will
call this company Metal Powder. I am the continuous
improvement manager at Metal Powder. It was recognized in
early 2011 that our atomization tower cleaning process needed
to be streamlined to speed up cleaning time and decrease
internal process time to be able to produce more powder heats
in a year. The atomization tower is 60 feet tall and 24 feet in
diameter. Metal Powder produces three separate alloys. When

2. a new alloy is put in the schedule to be made Metal Powder
must tear down the atomization tower and clean every part and
the entire tower to a white glove inspection before beginning
the next alloy.
The tower cleaning is currently taking 3 to 4 days
depending on the amount of buildup of atomized powder on the
parts. As Metal Powders demand increases in the next six years
it is imperative that Metal Powder turn the tower around faster
and faster to gain additional capacity. Through the use of setup
reduction it has been determined that a total of 84 parts at a cost
of around $100,000 can reduce the cleaning time by one eight
hour shift. This is a gain of 3 more “heats” of powder every
clean. There are 10 to 12 cleanings per year which could be a
potential gain of 30 to 36 heats per year.
This application term paper will use the five phases of
project management to implement the use of the new parts and
ensure that the goal of saving one shift will be recognized. A
team was selected of operators, engineers, production
supervisor, continuous improvement, and maintenance
personnel to help manage the project as resources. The
breakdown of roles in the responsibility matrix is in Figure 1.
Figure 1: Responsibility Matrix
The project team created the Project Charter seen in Figure
2.
Figure 2: Project Charter
Project Information
Project Manager
Katie O’Brien
Project Sponsor
General Manager
Project Description
Determine and implement duplicate parts to be swapped out
during atomization tower cleaning to optimize process and
reduce downtime.
Project Scope

3. Business Purpose, Objectives and Goals:
Metal Powder demand is going to increase two fold by 2020.
To rise to this challenge Metal Powder must reduce downtime
and increase capacity.
Problem/Opportunity Statement:
The problem of
3 to 4 days of downtime during an atomization tower clean
affects
Production and Quality departments and capacity
The impact of which is
Downtime of 30 to 36 days per year to clean the tower
A successful solution would
Be to reduce tower cleaning time by one 8 hour shift to gain 30
to 36 heats per year.
Constraints
Inclusions:
All parts that are not permanently connected to the tower or by
a twisting fixture.
Exclusions:
Parts that are permanently affixed to the tower or are a safety
risk to remove and reinstall.
Key Assumptions:
Parts will be stored on site and cleaned external to the process
by production operations. All parts over 25 pounds will need a
plan for movement.
Project Dependencies:
This project is dependent on engineering and maintenance
support to execute storage locations along with an upgrade to
the 3rd floor airwall and any fixtures needed for transport of
parts of 25 pounds.
Key Risks and Key Issues:
Timing for installation of 3rd floor airwall along with quoting
and receipt of parts for management of storage and swap out of
parts.
Critical Success Factors

4. Critical Success Factor
Key Success Indicator
Action Steps to Assure Success
Decrease cleaning time by one eight hour shift
Cleaning time reduced to 3 days
Proper storage locations along with robust standard work to
ensure process runs smoothly
Stakeholder and User Description
Key Stakeholder Descriptions:
Key Stakeholder
Function Represented
Production
Cleaning of parts
Quality
Inspection
Maintenance
Repair
User Summary:
End User Types
Impact Description
Stakeholder
Operators
Will perform movement of parts, swap out and external cleaning
Production
Quality Personnel
Will review cleaning at intermediate steps and then at
completion
Quality
Approvals
Documented Project Charter approvals are required from
designated approvers.
Role/Name
Approval Date

5. Project Sponsor:
Production Manager:
(PROJECTinsight, 2014)
The project team prioritized the project as a must complete in
2014. This project is linked directly to capacity needs for
future demand. The project cost for materials will be $100,000;
additional cost will be in resources. The list of parts for
duplication can be seen in Figure 3.
Figure 3: List of parts to be replaced
The work breakdown structure for implementation of the
new parts and standard work is seen below in Figure 4.
Figure 4: Work Breakdown Structure
1.0
Tower Replacement Parts
1.1
Identify Parts to Replace
1.2
Order Parts
1.3
Determine part storage locations
1.6
Training
1.4
Install Air wall and racks
1.7
Collect
Data
1.8
Evaluate new times compared to previous cleaning times

6. 1.6.1
Equipment
1.6.2
Production
1.6.3
Maintenance
1.8.1
Test & Measure
1.8.2
Support Process
1.1.1
Perform Set Up Reduction
1.2.1
Verify drawings are correct
1.2.2
Quote Parts
1.3.1
Quote & Replace air wall
1.3.2
Determine quality requirements for storage
1.5
Create standard work
Based on the work breakdown structure above the
following resource tasks have been distributed to the following
teams; Maintenance, Operator, Production Manager, Continuous
Improvement and Engineering. All resources were informed of
responsibilities in a project launch meeting. The responsibility
matrix was reviewed and agreed upon by all resources and
stakeholders. In addition, due to the importance of this project
Monday, Wednesday, Friday update meetings will be held at

7. 8am. The frequency of these meetings may increase or decrease
depending on the status of the project. Timing and schedule are
of the utmost importance. Therefore the schedule is to be met
at all costs. The detail of the work breakdown structure is
being used to minimize scope creep along with the use of a
project charter.
The project is to be completed in three months with a
$100,000 already spent toward the replacement parts. Any
additional costs will be in the fabrication of storage racks, the
3rd floor air wall and labor.
Unfortunately due to the size and management structure of
Metal Powder only engineering and continuous improvement
will be working on this project fulltime. Resources from
Maintenance and Production will be pulled in as they are
needed. Due to the phases in the work breakdown structure this
should not create an issue for schedule. When standard work is
to be written and finalized all resources will be needed. All
parties or a representative will be required to be in update
meetings.
The project was launched on January 13, 2014 initial
stages of the project such as evaluation of part drawings and
quoting went well and was on time. As the project approached
the storage location evaluation issues with resources being
available to evaluate and determine these locations was not
available which delayed the determination of locations. The
project was able to execute the quotes and installation of the 3rd
floor air wall with support from maintenance at the same time
issues were developing with storage locations.
As of March 10, 2014 not all storage locations had been
determined. The sequence of tasks shifted slightly to ensure
that the scheduled was met. I met with quality to determine all
the locations for storage that were not acceptable from a quality
perspective. In addition maintenance evaluated all parts over
our 25 lb. lifting limit and created carts and lifting mechanisms
for easy install and transport to the tower and back to the
storage locations.

8. By March 31, 2014 determination of all storage locations
was complete. The next task for completion was standard work
which took the input of all stakeholders and resources.
Standard work was created not only for the safe swap out of all
parts and reinstallation but also for the cleaning of the parts
external to the tower cleaning process. This standard work
needed to be robust so a dry run of the replacement and
cleaning process was done to document with pictures and
understand the time and movement of parts and personnel that
would affect the success of ensure one shift of time was saved.
This process took longer than expected. The initial thought of a
dry run has not been captured in the project charter or scope.
This created scope creep for the project and a delay in the
schedule. It was however, recognized that this was a must do to
ensure that the parts were swapped our properly, safely and
ensure quality the first time.
Therefore, the schedule was extended on week to April 21,
2014 for completion. This caused an instant miss on the
schedule portion of the project and scope creep. But it was
recognized by all parties that this task could not be rushed.
Once standard work was solidified training of production and
maintenance regarding the standard work and equipment
utilization was performed and completed on time.
Once the standard work and training was completed the
new process was performed during the next turnaround which
was April 14, 2014. Data was collected for times studies and to
ensure that the deliverable of an 8 hour shift savings was
recognized. The tower clean was completed in less than 3 days,
in 69 hours to be exact on April 16, 2014. The project was
completed two days over schedule prior to the scope creep and 3
days ahead of the recalculated schedule.
See the project closure report in Figure 5 for the results of
the project based on deliverables and scope.
Figure 5: Project Closure Report
Project Name
Tower Replacement Parts

9. Date
April 17, 2014
Executive Sponsor
General Manager
Project Manager
Katie O’Brien
Schedule
Planned Start Date
January 13, 2014
Actual Start Date
January 13, 2014
Planned End Date
April 14, 2014
Actual End Date
April 16, 2014Appropriation History Fiscal Year
Amount
Funding Source(s)
2011
$100,000
Corporate
Scope VerificationRequirements Review
Yes
No
Explanation/Notes
Were the project objectives (expected outcomes) accomplished?
x
x
Were all Deliverables submitted and accepted?

10. x
x
Have all contracts been closed?
x
x
Have all final payments been made (i.e., invoices paid)
x
x
Has adequate knowledge transfer been completed?
x
x
Phases
Completion Date
Goals/Objectives
ResultsInitiation:
3rd Quarter 2013
Develop Project Charter and Project Management Plan.
Project approved.Planning:
March 2014
Develop storage locations
Slight scope creep during delay in the project sequence of tasks
changed.
March 2014
Change of Scope: Decided to do a dry run of standard work to
ensure process was correct. Not an original part of the plan.
Dry run complete and standard work edited and confirmed for
all stake holders.
Implementation:
April 2014
Fully deployed new standard work and part replacement

11. process.
Tower cleaning completed in 69 hours.
Closeout:
April 2014
Closeout of project
All standard work complete. Process being used going forward.
Project Sign Off
The signatures below certify that this project has been
completed in accordance to the specified budget, schedule,
scope, and achieved the intended outcome.
Stakeholders
Name: Signature
Date
Project Sponsor
(or Designee)
General Manager
April 20, 2014
Project Manager
Katie O’Brien
April 20, 2014
(State of New Mexico, 2011)
References
Larson & Gray. (2014). Project Management: The Managerial
Process. New York City, NY: McGraw Hill.
PROJECTinsight. (2014). 5 Basic Phases of Project
Management. Retrieved May 16, 2014, from PROJECTinsight:
http://www.projectinsight.net/project-management-basics/basic-
project-management-phases
State of New Mexico. (2011). Project Closure Example.
Retrieved May 28, 2014, from
www.doit.state.nm.us/pcc/docs/.../DoIT%20Project%20Closeout

12. .doc
1
FloorDescriptionCurrent StateFuture State
42 Piece Liner
4Liner
4Valve
4Valve
4Torit Filters
4Liner
3Liner
Main DeckBowling Ball
Main DeckSealing Door
Main DeckSight Port Pass Throughs
Main DeckSealing Door Cartridges
Main DeckLocking Pins & Cartridges
Main DeckFurnace Cones
Main DeckSealing Door Arm
6
Pressure Port (Hibon
Sensors)
$400
5Valve$500
5Elbow
5Cyclone Top
5Cyclone Body
5Cyclone Cone
5Valve
5Spool
5Can
5Valve$400
5Pressure ReliefStock Room

13. 5
Flange and Hibon Port Sensor
Manifold
$3,000
4Top SectionIncluded in 25K
4Bellows$1,000
4Elbow
4Spacer
4Center Section
4Top Section
4Outlet Elbow
4Rupture DiskStock Room
4Probe$300
4Probe$300
3Pipe$3,600
3Bellows$1,000
3Elbow
3Deflector Cone
3Elbow$1,250
3Elbow$1,250
3Vortex Breaker$4,500
3Vortex Adapter$2,200
36" Pipe$1,700
Main DeckElbow$1,250
Main DeckBellows (2)$700
Main DeckElbow$1,250
Main DeckPipe$1,700
Main DeckBellows$700
Main DeckElbow$1,200
Main DeckTC and Flange$300
Main DeckOutlet Baffle $2,500
Main DeckFront Port Shields (2)$1,000
Main DeckRear Port Shields (3)$1,500
Main DeckLance$1,000
External Part Replacement
$15,000

14. $25,000
Included in 25K
Task
Production
Supervisor
EngineeringCIMaintenance
Operator
1
Operator
2
Identify Parts to ReplaceRRSSS
Quote all new partsSR
Order new partsSR
Determine storage location for partsRR
Fabricate storage racks for partsSSR
Upgrade 3rd floor airwallSRS
Create standard work for new processSSRSSS
R = Responsible
S = Support
Project Team

15. Project Charter©
For [Project Name]
ii
Copyright © Method123 Ltd
Document Control
Document Information
©
Information
Document Id
[Document Management System #]
Document Owner
[Owner Name]
Issue Date
[Date]
Last Saved Date
[Date]
File Name
[Name]
Document History
Version
Issue Date
Changes

16. [1.0]
[Date]
[Section, Page(s) and Text Revised]
Document Approvals
Role
Name
Signature©
Date
Project Sponsor
Project Review Group
Project Manager©

17. Quality Manager
(if applicable)
Procurement Manager
(if applicable)
Communications Manager
(if applicable)
Project Office Manager
(if applicable)
Table of Contents
Template Guide1
1Executive Summary2
2Project Definition2
2.1Vision2
2.2Objectives2
2.3Scope3
2.4Deliverables3

18. 3Project Organisation4
3.1Customers4
3.2Stakeholders4
3.3Roles5
3.4Responsibilities5
3.5Structure7
4Project Plan8
4.1Approach8
4.2Overall Plan8
4.3Resource Plan9
4.4Financial Plan10
4.5Quality Plan10
5Project Considerations11
5.1Risks11
5.2Issues11
5.3Assumptions12
5.4Constraints12
6Appendix12
6.1Supporting Documentation12
Template Guide
What is a Project Charter?
A Project Charter is a document which outlines the purpose of
the project, the way the project will be structured and how it
will be successfully implemented. It describes the project:
· Vision, objectives, scope and deliverables (i.e. what we have
to achieve)
· Stakeholders, roles and responsibilities (i.e. who will take part
in it)
· Resource, financial and quality plans (i.e. how it will be
undertaken). ©
The Project Charter may also be referred to as a “Terms of
Reference (TOR)” or “Project Definition Report (PDR)”.

19. When do I use a Project Charter?
The Project Charter is usually presented by Senior Management
within the business to an identified Business Sponsor. It is
completed after the Business Case and Feasibility Study have
been approved but before the Project Team is formally
appointed.
Furthermore:
· The Project Charter defines the boundaries for the project. It
describes in detail the scope of the project, within which all
deliverables must be produced. Activities should be undertaken
outside the defined scope of the project only if a valid ‘change
request form’ has been approved by the Project Sponsor
· The next stage following approval of the Project Charter is the
formal appointment of the project team. ©
How to use this template
This document provides a guide on the topics usually included
in a Project Charter. Sections may be added, removed or
redefined at your leisure to meet your particular business
circumstance. Example tables, diagrams and charts have been
added (where suitable) to provide further guidance on how to
complete each relevant section.
Executive Summary
Sum up each of the sections in this document concisely by
outlining the project:
· Definition
· Organisation and plan
· Risks and issues

20. · Assumptions and constraints. ©
Project Definition
This section describes what the project sets out to achieve. It
outlines the vision for the project, the key objectives to be met,
the scope of work to be undertaken and the deliverables to be
produced.
Vision
Describe the overall vision of the project. The vision statement
should be short, concise and achievable. Examples of vision
statements include:
· To deliver a robust, scalable financial management system to
the business
· To procure new work premises with adequate capacity and
functional surrounds
· To successfully introduce new customer service processes to
the marketplace. ©
Objectives
List the key objectives of the project. Objectives are statements
which describe in more detail what it is that the project is going
to achieve. All objectives listed should be Specific, Measurable,
Achievable, Realistic and Time-bound (SMART).
Business Objectives
List the business-specific objectives to be achieved. For
example:
· To deliver new accounts payable and receivable and payroll
processes, thereby reducing financial processing timescales by
at least 30%
· To build brand new work premises with 50% more space, 30
more cark parks and 20% fewer operational costs than the
existing premises
· To provide a new customer complaints service to enable
customers to issue complaints on-line and receive a direct

21. response from the company within 24hrs. ©
Technology Objectives
List the technology-specific objectives to be achieved. For
example:
· To install new accounts payable and receivable and payroll
system modules within the existing accounting system, thereby
achieving 99.5% system up-time
· To relocate existing technology infrastructure at the new
building premises within 2 days elapsed time and with no
impact on customer service delivery
· To build a new website which allows customers to enter and
track complaints through to resolution.
Scope
Define the scope of the project in terms of the business:
· Processes which will change
· Organisationalareas which will be affected
· Locations which will be impacted on
· Data which will be altered
· Applications which will be installed and/or altered
· Technologies which will be deployed and/or
decommissioned©
Where relevant, identify the related business areas which will
not be affected as a result of this project.
Deliverables
Highlight the key project deliverables in the following table
(includes examples):
Item
Components©
Description
New physical premises

22. · New physical building
· Interior fit-out
· Telecommunications
· 1200 sq m premises near city centre with outdoor facilities,
parking and signage
· Open plan environment with 5 offices, 3 meeting rooms and a
staff games room
· Voice / data telecoms infrastructure and video conference
facilities
New financial system
· Accounts payable module
· Accounts receivable module
· Payroll module
· A new system module which enables staff to quickly enter
accounts payable transactions
· A new system module which enables staff to quickly enter
accounts receivable transactions
· A new system module which enables staff to quickly enter
payroll information
New customer complaints process
· Complaints website
· Complaints resolution process
· Complaints measurement process
· New website with customer complaints forms, a complaint

23. tracking page and company contact information
· New full-time staff complaints role and process for resolving
complaints made
· New process for assessing complaint characteristics (such as
numbers, business areas and resolution timescales)
Project Organisation
Customers
Describe the customers who will use the deliverables produced
from the project. Customers may be individuals or groups
within or outside of the company. The success of the project
will be primarily based on whether or not the deliverables
produced match the requirements of the customers identified in
this table.
Customer
Representative©
Customer Group
Customer Name
Stakeholders
List the key stakeholders for this project. A ‘stakeholder’ is
simply a person or entity outside of the project who has a key

24. interest in the project. For instance, a company financial
controller will have an interest in the cost implications of the
project, a CEO will have an interest in whether the project is
conducted in accordance with the vision of the company.
Examples of stakeholders include:
· Company Executives
· Legislative bodies
· Regulatory bodies.
Complete the following table (includes examples):
Stakeholder©
Interested in
CEO
Alignment with company vision and strategy
Financial Controller
Alignment with company budget
Health and Safety Office
Alignment with health and safety standards
Government body
Compliance with legislation
Industry body
Compliance with codes of practice
Roles
Identify the roles required to undertake the project. Examples of

25. typical roles include project:
· Sponsor
· Review Group
· Manager
· Team Member
For each role identified, list the resource likely to fill each role
and his/her assignment details by completing the following
table:
Role
Organisation©
Resource Name
Assignment Status
Assignment Date
Role
Organisation
Person
Unassigned / Assigned
xx/yy/zz
For larger projects with more than 10 resources, list only the
key roles in the above table. Include a detailed listing and
description of all roles within a separate Resource Plan
document if required.

26. Responsibilities
List the generic responsibilities for each role identified. A full
list of the responsibilities, performance criteria and skills
required should be documented within a separate Job
Description for each project role.
Project Sponsor
The Project Sponsor is the principal ‘owner’ of the project. Key
responsibilities include:
· Defining the vision and high level objectives for the project
· Approving the requirements, timetable, resources and budget
· Authorising the provision of funds / resources (internal or
external)
· Approving the project plan and quality plan
· Ensuring that major business risks are identified and managed
· Approving any major changes in scope
· Receiving Project Review Group minutes and taking action
accordingly
· Resolving issues escalated by the Project Manager / Project
Review Group
· Ensuring business / operational support arrangements are put
in place
· Ensuring the participation of a business resource (if required)
· Providing final acceptance of the solution upon project
completion. ©
Project Review Group
The Project Review Group may include both business and 3rd
party representatives and is put in place to ensure that the
project is progressing according to plan.
Key responsibilities include:

27. · Assisting the Project Sponsor with the definition of the project
vision and objectives
· Undertaking Quality Reviews prior to the completion of each
project milestone
· Ensuring that all business risks are identified and managed
accordingly
· Ensuring conformance to the standards and processes
identified in the Quality Plan
· Ensuring that all appropriate client/vendor contractual
documentation is in place prior to the initiation of the project.
©
Project Manager
The Project Manager ensures that the daily activities undertaken
on the project are in accordance with the approved project
plans. The Project Manager is responsible for ensuring that the
project produces the required deliverables on time, within
budgeted cost and at the level of quality outlined within the
Quality Plan.
Key responsibilities include:
· Documenting the detailed Project Plan and Quality Plan
· Ensuring that all required resources are assigned to the project
and clearly tasked
· Managing assigned resources according to the defined scope
of the project
· Implementing the following project processes: time / cost /
quality / change / risk / issue / procurement / communication /
acceptance management
· Monitoring and reporting on project performance (re:
schedule, cost, quality and risk)
· Ensuring compliance with the processes and standards outlined
in the Quality Plan
· Reporting and escalating project risks and issues

28. · Managing project interdependencies
· Making adjustments to the detailed plan as necessary to
provide a complete picture of the progress of the project at any
time.
Project Team Member
A Project Team member undertakes all tasks necessary to
design, build and implement the final solution.
Key responsibilities include:
· Undertaking all tasks allocated by the Project Manager (as per
the Project Plan)
· Reporting progress of the execution of tasks to the Project
Manager on a frequent basis
· Maintaining all documentation relating to the execution of
allocated tasks
· Escalating risks and issues to be resolved by the Project
Manager. ©
Structure
Depict the reporting lines between each of the key roles
described above within a Project Organisation Chart. An
example follows:
Project PlanApproach
Describe the approach to be taken to implement each of the
phases within the project.

29. Phase
Approach©
Initiation
Outline the method by which the project will be further defined,
the project team appointed and the Project Office established.
Planning
Define the overall planning process to ensure that the phases,
activities and tasks are undertaken in a co-ordinated fashion.
Execution
Describe the generic phases and activities required to build, test
and implement the deliverables of the project.
Closure
Describe the steps required to release the deliverables to the
business, close the project office, reallocate staff and perform a
Post Implementation Review of the project.Overall Plan
Provide a summarized plan outlining the sequence of each of the
phases listed above.
A more detailed Project Plan will be drawn up during the
“Planning” phase of the project.
Milestones
List the major project milestones and the required delivery
dates. A ‘milestone’ is a significant event or stage to be
completed. Explain why each milestone is critical to the project,
as follows:
Milestone
Date©
Description
Milestone Title
xx/yy/zz
Explain why milestone date is critical to business

30. Dependencies
List any project activities which:
· Will impact on another activity external to the project
· Will be impacted on by the non/delivery of another activity
external to the project
Project Activity
Impacts on
Impacted on by
Criticality©
Date
Planned Activity
External Activity
External Activity
Low/Medium/High
xx/yy/zz

31. Resource Plan
Summarize the duration and effort required for each project
team member, as follows:
Role
Start Date
End Date
% Effort
Project Role
xx/yy/zzzz
xx/yy/zzzz
xx/yy/zzzz
A detailed Resource Plan will be drawn up during the
“Planning” phase of this project.
Financial Plan
Summarize the project budget approved (within the Business
Case) as follows:

32. Category
Cost©
Value
People
· Salaries of project staff
· Contractors and outsourced parties
· Training courses
$ x
$ x
$ x
Physical
· Building premises for project team
· Equipment and materials
· Tools (computers, cabling, phones…)
$ x
$ x
$ x
Marketing
· Advertising / branding
· Promotional materials
· PR and communications
$ x
$ x
$ x
Organisational
· Operational downtime
· Short-term loss in productivity
· Cultural change
$ x
$ x
Describe

33. A detailed Financial Plan will be drawn up during the
“Planning” phase of this project.
Quality Plan
Briefly describe the various processes to be undertaken to
ensure the success of the project.
Process©
Description
Quality Management
Summary of how the process will be undertaken
Change Management
Risk Management
Issue Management
Configuration Management
Document Management
Acceptance Management
Procurement Management
Financial Management
Timesheet Management

34. Project Reporting
Project Communications
A detailed Quality Plan will be drawn up during the “Planning”
phase of this project.
Project Considerations
Risks
Summarize the most apparent risks associated with the project.
Risks are defined as “any event which may adversely affect the
ability of the solution to produce the required deliverables”.
Risks may be Strategic, Environmental, Financial, Operational,
Technical, Industrial, Competitive or Customer related.
Complete the following table:
Description
Likelihood
Impact©
Mitigating Actions
Inability to recruit skilled resource
Low
Very High
Outsource project to a company with proven industry experience
and appropriately skilled staff
Technology solution is unable to deliver required results
Medium
High
Complete a pilot project to prove the full technology solution
Additional capital expenditure may be required in addition to

35. that approved
Medium
Medium
Maintain strict capital expenditure processes during the project
To complete this section thoroughly, it may be necessary to
undertake a formal Risk Assessment (by documenting a Risk
Management Plan). To reduce the likelihood and impact of each
risk's eventuating, clear ‘mitigating actions’ should be defined.
Issues
Summarize the highest priority issues associated with the
project. Issues are defined as“any event which currently
adversely affects the ability of the solution to produce the
required deliverables”. Complete the following table:
Description©
Priority
Resolution Actions
Required capital expenditure funds have not been budgeted
High
Request funding approval as part of this proposal
Required computer software is only at ‘beta’ phase and has not
yet been released live
Medium
Design solution based on current software version and adapt
changes to solution once the final version of the software has
been released
Council approval must be sought to implement the final solution

36. Low
Initiate the council approval process early so that it does not
delay the final roll-out process.
Assumptions
List the major assumptions identified with the project to date.
Examples include:
· There will be no legislative, business strategy or policy
changes during this project
· Prices of raw materials will not increase during the course of
the project
· Additional human resources will be available from the
business to support the project. ©
Constraints
List the major constraints identified with the project to date.
Examples include:
· The financial budget allocated is fixed and does not allow for
over-spending
· There are limited technical resource available for the project
· The technical solution must be implemented after-hours to
minimize the operational impact on the business.
AppendixSupporting Documentation
Attach any documentation you believe is relevant to the Project
Charter, including:
· Curricula Vitae (CVs) for key project staff
· Approved Business Case

37. · Approved Feasibility Study
· Research Materials
· External quotes or tenders
· Detailed financial planning spreadsheets
· Other relevant information or correspondence. ©
ID
Task Name
1
INITIATION
2
Develop Business Case
7
Perform Feasibility Study …
13
Establish Terms of Reference
18
Appoint Project Team
22
Set-up Project Office
26
Approval to Proceed
27
28
PLANNING
29
Develop Project Plan
38
Develop Quality Plan
53
Fomulate Supplier Contracts
57
Approval to Proceed
58
59

38. EXECUTION
60
Build Deliverables
61
Build Project Deliverables
62
Test Project Deliverables
63
Implement Project Deliverables
64
Monitoring and Control
77
Approval to Proceed
78
79
CLOSURE
80
Register Assets in Financial System
81
Perform Customer Signoff
82
Release Documentation & Equipment
83
Release Project Resources
84
Perform Supplier Contract Closure
85
Document Project Closure Report
86
Post Implementation Review
87
Project Closure
20/01
2/02
6/02
17/02

39. 5/01
12/01
19/01
26/01
2/02
9/02
16/02
23/02
1/03
8/03
15/03
22/03
29/03
5/04
ary
February
March
April
RSV Project 12
Running head: Royal Stone Veneer: New Product Development
Project
Royal Stone Veneer: The Application of Project Management
Principles to a New Product Development ProjectQSO-680
Seminar in Project Management
June 8, 2014

40. Table of Contents
Royal Stone Veneer: The Application of Project Management
Principles to a New Product
Introduction3
Defining3
Goals3
Specifications4
Figure 1: Priority Matrix4
Figure 2: Responsibility Matrix6
Planning8
Schedule8
Budget8
Risk10
Executing10
Works Cited12
Royal Stone Veneer: New Product Development
ProjectIntroduction
In the building products industry there is a great need to supply
the customer with a cheaper alternative to traditional exterior
cladding products (i.e. wood and stone). The Royal Stone
Veneer project is an attempt to penetrate the portion of the
building products market that relates to stone by introducing a
quality, cost competitive, and a less labor intensive product
installation “stone-like” product. The introduction of such a
product will spur growth in our business so that we can continue
to grow and be a profitable organization. DefiningGoals
As a start to defining this project upper management had set a
few goals that the project must meet in order to be viable within
our organization. The first was that this product had to be
innovative. There are other polymeric stone veneer products in
the building products market currently, but this product must be
easily differentiated from other like products currently on the
market. The second goal was to promote sales of our existing
products along with this new product to allow us to sell the new
product along with more of our existing products. The third

41. goal was that the new product must be one that will allow the
company to make a profit and allow us to take market share
away from our competitors in this product category along with
our existing line of products. As a fourth goal which is actually
a required goal for every project within our organization is that
the project must be completed in a safe and environmentally
friendly manner.Royal Stone Veneer: New Product Development
ProjectSpecifications
In order to ensure that our needs for this project were
clearly defined the project manager wrote a “Scope” document.
This document outlines the requirements for all facets of the
project. The outline defines manufacturing method, internal or
external manufacturing, material type(s), what parts will be
needed to make this product viable to the home exterior
cladding market, market research to be completed, code
compliance testing, and beta testing to be conducted toward the
end of the project.
Another important point in the defining phase was the
development of the priority matrix. The priority matrix gives
the project team an overview of what management will accept in
terms of the project time to completion, the performance or
how closely the project will meet the requirements, and if the
project must be completed within the budget or if a cost overrun
is acceptable. The following represents the priority matrix that
defined the Royal Stone Veneer Project:Figure 1: Priority
Matrix
Time
Performance
Cost
X
Constrain

42. X
Enhance
X
Accept

43. Royal Stone Veneer: New Product Development Project
The priority matrix that was developed for this particular
project is one that gives a project team freedom to be creative in
the development process of the product. Under the accept
criteria of the matrix is cost. Since management has indicated
that cost is not constraining this project the team has the ability
to experiment or “ooch” (Heath, 2013) with different designs
that may enhance the look or function of the product and make
this one of a kind product stand out even more than it would
without enhancement. The term “ooch” was used in the last
sentence; ooching is the process of conducting small
experiments to test a given hypothesis (Heath, 2013). In the
case of this project ooching is required to determine the
coloration of the product; this would only be a small portion of
the experimentation that is required for the overall project.
The fact that the project matrix for this project has
performance as the constraint and time as the enhancement
criteria also foster a good project environment for a new
product development project. Time being under the
enhancement criteria grants the team ample time so that the
development of the product is not rushed, but does not give the
team an unlimited amount of time to complete tasks. Time
being the criteria that can be enhanced is management’s way of
saying that the team is given an allotted amount of time to
complete the project, but we would rather have this project to
market sooner than later. This may not be the case in all new
product development projects, but this project must have some
flexibility in the time to completion.
Performance being the constraint of this project is
completely understandable. This product being a new and
unique product makes the need for the product to be made to the

44. specification of the utmost importance. In this project
specifically there was a fair amount of
Royal Stone Veneer: New Product Development Project
market research completed so that our company could
understand the needs and wants of our customers. Getting the
feedback from the customer and applying what we have heard to
the specifications of the project is important to the success of
the project. Performance as the constraint, especially for this
project, is the best criteria to ensure that the product will meet
the customer’s needs and wants.Figure 2: Responsibility Matrix
Responsibility Matrix For RSV Project
Deliverables
Design
Development
Purchasing
Quality
Testing
Third Party Manufacturer
Project Manager
Panel Design
1
2
3
4
Accessory Design
1
2
3
4

45. Decoration Development
1
2
4
Automation Specifications
1
2
2
Panel Development
2
1
3
Accessory Development
2
1
3
Tooling Design
1
2

46. 2
Prototyping
2
2
2
3
1
2
Automation Implementation
1
1
2
2
2
Material Procurement
3
3
1
2
1
Responsible
2
Support
3
Consult
4
Approve

47. Figure 2 shows a modified and truncated version of the
responsibility matrix that was developed for the Royal Stone
Veneer project. I was asked by management not to use the
actual matrix that was developed for this project. The matrix
shows that design and development are responsible for or are in
a support role for each task. This may not be the ideal situation
for a
Royal Stone Veneer: New Product Development Project
project of this size and scope, but other than the third party
manufacturers that are performing work in the project the team
consists of five members. Two engineers, one representative of
quality/ product development, one representative of purchasing,
and the project manager. Having so few team members has
made the decision making process much easier throughout the
project. We don’t have to deal with as many different
personalities which has made any conflict that has arisen very
easy to resolve without ruffling too many feathers in the
process.
The matrix organization structure for this project is a
balanced matrix. The project manager developed the overall
scope and plan for the project while the functional (Engineering
Manager) is making the determination as to how the work will
be completed. For this project this type of structure has worked
well. Since 60% of the team members are direct reports to the
functional manager the project has progressed quite well. The
functional manager in this case has a great interest in seeing
this project to fruition, so the other team members are also on
board with the manager’s goals. Where this has been
disadvantageous is with such a small team that is not totally
dedicated to the project, tasks frequently take a little longer
than they would if there were a larger team with more members
to aid in completing the work. Another disadvantage to the
using the matrix structure in the case of our company is the fact
that resources are shared across projects. This would normally
be a strength, but with a small group that works on projects in

48. our company we tend to not always be able to dedicate the time
that may be necessary to ensure that the work is being
completed. Most of the team members are working on three or
more projects at one time along with performing their day to
day tasks which explains why tasks may not get completed as
quickly as they normally would if there were a dedicated team
to complete project work.
Royal Stone Veneer: New Product Development
ProjectPlanningSchedule
The schedule for this project is a resource-constrained type
of schedule. The project team has very few members internally
that are performing the design and development tasks with a
third party manufacturing the product. Looking back at figure
1, this is why management has determined that the time is a
priority that cannot be constrained, but if possible could be
enhanced. The schedule for this project is not detailed to the
extent of a traditional project. The ES, LS, LF, and EF are not
defined and the team is unsure of which activities have slack as
an example. After studying the application of the previously
mentioned items in the QSO-680 course I now see that although
the Royal Stone Veneer project is not employing this method,
the use of the methods would likely make the project progress a
little more smoothly.
The schedule for the project is developed in a project
management software called Smartsheet. Similar to Microsoft
Project, Smartsheet allows the user to enter tasks with dates,
predecessors, and resource assignments. MS project has more
features and functionality than Smartsheet, for example, in MS
project the user has the ability to create network diagrams and
perform earned value analysis which is not available in
smartsheet. Having a schedule that outlines the project
activities, completion dates, and resource assignments has
allowed this project to stay on pace to complete on
schedule.Budget
With the development of artist renderings and physical
prototypes of the product we were able to conduct a rather

49. extensive amount of market research. This research allowed us
to get feedback from contractors, architects, and homeowners as
to what the product needed to be. We
Royal Stone Veneer: New Product Development Project
were able to determine at what price point this product would be
able to be sold at, what types of coloration were needed to
satisfy the needs of the American market, and how the product
must perform in order for it to be viable in the home exterior
cladding market. The market research was the first phase in
planning the project; once the research was completed we now
have the requisite information to develop a plan for the
development and introduction of a product that will be well
received in the market.
Once all of the research information had been collected the
team had to make some determinations as to how this product
would be manufactured. Could it be done via a manual process?
Would automation get the product to the price point we need?
Would automation be too large of an initial investment? Our
scope document was sent to multiple suppliers along with a
request for proposal. Once the proposals were received we were
able to make a determination as to which direction we must go.
The project manager developed a budget consisting of cost of
automation, development costs, tooling costs, man hours, and
code compliance testing. Our company requires that each larger
project go through a stage gate process where the project budget
and plan are reviewed by a committee that consists of mostly
upper management. During this meeting the committee
approves or disapproves the budget for the project. The budget
numbers given in this part of the process are purely budgetary; a
more detailed time-phased
budget is created after the committee gives the go ahead for the
preliminary budget requested. The term time-phased budget is
used loosely when defining the budget for this project. The
budget is broken down by work package but is not as detailed as
how much will be spent per week. The budget is tracked on a
spread sheet that shows the spending per the schedule of

50. Royal Stone Veneer: New Product Development Project
activities which is like a time-phased budget. We are able to
track our spending per activity and this sheet is viewable by a
select group of senior managers which allows them to see the
progress of the project in terms of spending. This being a
somewhat large capital project there are requirements that the
budgeted dollars must be spent by the scheduled date.Risk
With any project there are risks that could be detrimental
to the project, risks are an inherent part of projects; whether it
is a cost overrun, a delay in the build of a piece of equipment,
or delayed raw material delivery there are many possible risks
related to project tasks. My company has taken a more formal
approach to risk management, meaning that some of the risk
assessment and mitigation procedures are used but the methods
are not followed to the letter of the law. There are contingency
plans in place to allow the project to continue if the first option
is deemed to not be viable or will not allow the product to
achieve the required performance. As a short example the
product that this project is aimed at developing must have
colorant applied to the surface. In our scope there is a section
that calls for an automated decoration machine. As a
contingency plan for the coloration or decoration of the product,
a manual method of decoration can be used in order to achieve
the appropriate level of coloration. We are relying on our
contingency plans as risk mitigation which would not suffice in
an organization that is any level above formal i.e.
institutionalized (QSO-680 "Module Ten Lecture"), but this
method has worked quite well up to this point in the project.
Executing
Currently this project is in the heart of the execution phase. All
planned activities have begun. Although there is a single team
member that has been given the title of project managerRoyal
Stone Veneer: New Product Development Project
RSV Project 11

51. each team member has taken on the task of keeping everyone
abreast of the status of the project tasks to which they are
assigned. A standard template for status report is used on a bi-
weekly basis. This form includes what activities have been
completed since the last report and what activities will need to
be completed for the next report. Each status report contains a
snapshot from each of the Gantt charts that apply to your tasks
and the amount of dollars spent on the tasks. Once the status
reports are complete the project manager reads them all and
gives the project sponsor (general manager) an overall update of
how the project is progressing. There is also a project sheet
that is visible to all team and the project sponsor that shows the
progression of the project from a capital spending perspective.
Both the status update and the project sheet have been
instrumental in keeping everyone informed as to the status of
the project.
Royal Stone Veneer: New Product Development Project
Works Cited
(n.d.). Retrieved from http://pmstats.dis.arkansas.gov/meth/07-
execution%20phase.pdf
Heath, C. &. (2013). Decisive "How To Make Better
Decisions". New York: Crown Business.
Larson, E. W., & Gray, C. F. (2014). Project Management "The
Manegerial Approach". New York: McGraw-Hill Education.
Olvey, P. (2012). Royal Stone Veneer Project Scope. Columbus,
OH, United States of America.
QSO-680 "Module Ten Lecture". (n.d.). New Hampshire.