Business Case developed during Project Management course at SKEMA Business School Create a gym that uses the energy produced by the users to power itself Ibrahim Abubakari, Caroline Bilet, Arthur Lanos, Thomas Leportier, Amelie Meppiel, Kristin Torin, Medhi Thadi

1. GreenWulf
Project
Sustainable energy
on Campus
Ibrahim Abubakari
Caroline Bilet
Arthur Lanos
Thomas Leportier
Amélie Meppiel
Camille Perencin
Medhi Thadi
Kristin Torin
Project Management Final Report
Fall 2012 – SKEMA Raleigh

2. Table of content
Part I
Project Plan
A. Project Charter / Scope statement
1. Objectives of the project, requirements definition and constraints
2 Stakeholder analysis
3. Keys to success
B.
C.
Part II
Project Definition
1. Solution/ work product description
2. Work Breakdown Structure
3. High Level schedule
4. Network Diagram and Critical Path
5. List of Milestones and Dependencies including dates
6. Risk Assessment / Response
Finalized schedule
1. Resource requirements and resolution of resource allocation problems
2. Rolled up budget estimates
Project Update
A. Status report
1. Narrative of key events to date
2. Performance indices
3. Project schedule status
B.
Problem solving
1. Description of key problems and issues encountered
2. Responses to the problems and how they affected the project
C.
Management issues
1. Problem description
2. Responses to the issues and how the responses impacts the rest of the project
D.
Revised project estimates
1. Projected cost
2. Schedule
E.
Summary
1. Keys to successfully completing the project
2. Forecast at completion
3. Formal statement of confidence and risk
2

3. Part I Project Plan
A. Project Charter/Scope statement
1. Objectives of the project, requirements definition and constraints
Project concept
North Carolina State University has recently launched a vast project of transforming the campus into
a green university. The first steps implemented were passive measures such as turning off heating in
unoccupied buildings during holidays. Now NCSU governance is looking for a more proactive way in
order to be awarded “green campus of 2014”. This is why we have been contacted by NCSU in order
to turn Carmichael complex into a sustainable sport center. Our concept is simple: the energy
developed by students while working out on cardio equipments such as dynamo bikes and treadmills
will be transformed into electricity and used for the gymnasium power needs.
Project boundaries
In order to be clear with our stakeholders with what we are responsible for as part of this project, we
have established the following boundaries:
IN
•
Buy, install and connect the
equipment in one fitness
room
• Ensure that there are actual
savings of energy
• Communicate with
stakeholders on the
progresses made
OUT
•
Daily maintenance and
functioning
• Communication on the
modernization to end users
• Student reward system
(incentives to come to the
new gym)
Our job will be restricted to the procurement and installation of new bikes and treadmills able to
produce a quantity of electricity significant enough to reduce the electricity bills of the complex. In
order to do so, we will first do a feasibility studies and benchmarking of suppliers. Then we will take
care of all necessary modifications to be done to the room before installing the new fitness
equipment. It is our responsibility to ensure that bikes and treadmills will generate energy savings.
However, it is not our responsibility to ensure the daily maintenance once the equipment is ready to
use. We won’t be in charge of the communication within NCSU community about this renovation. In
addition, we thought about a system of student reward based on the electricity they will produce in
order to create new incentives for students to go to the gym. However, it is not included in the
current scope. If our stakeholders which to implement this additional time and/or budget must be
allocated.
3

4. Project objectives
We have two quantifiable objectives to measure the success of our project:
-
Electricity bill must be reduced by 30%
The number of users should also increase by 15%
Project requirements and constraints
While progressing through our project, we have to take into account several requirements and
constraints set by NCSU.
Our requirements are:
-
-
-
-
Keep the existing building. It is impossible to undertake renovation work such as increasing
the size of the fitness room. The building and walls must stay as they are now. Hence we
need to carefully execute the feasibility study in order to have the new equipment fitting
100% to the existing room.
Preserve the users’ experience during modernization process. We should try to minimize the
disturbance caused to gym users during our project. To do so, most of the work will be done
during summer holidays when most of students are not on campus. In addition, our project is
to renovate only one fitness rooms. To other rooms with similar equipments are still
available during the project.
Users should be able to monitor their energy production. It is nice to say to users that they
are producing electricity but it is even better to show them exactly how much they produced.
This will be a new source of motivation for doing exercise and will help to achieve the
increase in number of user. This will have to be taken into account when ordering the
equipment.
Modernized rooms should be able to gain environmental accreditation. The production of
green electricity must be significant enough for the building to be considered as eco-friendly.
This goes along with the objective the University to gain the label of “green campus of 2014”.
In addition to these requirements, we have to deal with the following constraints:
-
-
Make real energy savings (performance). As we said above, the bottom line of the project
really is to produce electricity.
Costs have to stay reasonable. The cost of our project if part of a bigger budget released by
NCSU for their green campus program. It is considered as one of the top priority project for
the University. Hence the funds available are fairly important but costs have to be optimized.
Modernization has to be limited in time (3 to 4 months). The new room must be open during
the first few month of fall semester in order to be available during most of the scholar year.
4

5. Project Matrix - Time, cost, performance trade-off assessment
Based on these constraints, we have established our project priority matrix:
Time
Constraint
Cost
X
Enhance
Accept
Performance
X
X
Performance is the key for this project. The equipment must produce enough electricity to be used
into the Carmichael complex for us to attain our objectives.
Cost must be enhanced. Our project is part of a bigger one within the University who is conducting
several other projects. So far budget has been allocated to most of these NCSU projects so the
University is limited in terms of releasing additional budget. In addition, NCSU cannot increase too
much tuition fees in order to finance the project. Also, alumni donations are limited.
The project’s duration is accepted. Still the project should avoid large delays but in the hypotheses it
will happen and the room will be closed for longer than expected, 2 other rooms are still available.
5

6. 2. Stakeholder analysis
The chart below provides a global view of our project and its stakeholders.
We have identified 5 major stakeholders on our project:
-
-
-
NCSU Governance: our sponsor for this project. Without them the project won’t exists since
they provide the budget for it. They champion the project and are a major spokesperson to
promote it. They play a crucial role for our project, especially during early phases of scope
development.
Carmichael staff: is also an important stakeholder. The project is done under their
supervision since it will be done inside the building. Also, they will provide us empty rooms
for the storage of equipments free of charge.
Student Body: It will play a key role as voice of the students as it represents our end users. It
has a much smaller authority on the project than the previous two stakeholders.
Student (end users): One of the objectives of our project is also to please students. Their
comments should also be taken into account.
Alumni network: To some extent, alumni are also a distant stakeholder. They are
ambassadors of the University and will contribute to develop the green image of NCSU
outside the campus. Some of their contributions will also fund the upgrading of the
Carmichael Gym.
6

7. 3. Keys to success
Technological Performance
The first key to success of this project is to assure and deliver the expected performance in terms of
electricity production. NCSU is investing money on this project not only to build a better image but
to also have real and measurable gains. Thus, we have go in-depth during the preliminary studies in
order to be sure to comply with our energy savings objectives.
Time management
In addition, time management is important and requires to carefully planning the project schedule.
We can’t afford to accumulate delays during the project and deliver the room in November would be
considered as a failure. Indeed, we will have not preserved the end-users experience of the gym.
Communication with stakeholders
Last but not least, communication with stakeholders is crucial, in particular with our sponsor at the
beginning of the project when elaborating the scope and all necessary documentations. Reports
must be done on a regular basis for the stakeholders to follow how the project is progressing. It
should also be done for important steps such as ordering the equipment (a major post of cost) or
beginning the installation.
B. Project definition
1. Solution / work product description
To begin the GreenWulf project, 3 sets of deliverables were designed to guide the project team in
meeting the objectives and expectation of this project.
First on the list of deliverables is the Feasibility study. In this stage, the team conducts preliminary
studies and report about the project. We research about energy (present consumption of the sports
complex and about renewable energy), provide a cost analysis of the project and look at technical
feasibility studies and the fall out studies.
Second deliverable is the Benchmarking documentation for the equipments. After searching for
equipment suppliers and select some of them, order quotes, we will present a summary for review to
the NCSU team.
We finish with the project completion which happens after testing has been done both by Green
Wulf and the end users and a period of review and acceptance 7 days after the launch of the fitness
room.
7

8. 2. Work breakdown structure
WBS
Nom de la tâche
1.0
GreenWulf Project
1.1
Feasibility studies
1.1.1
Preliminary Studies
1.1.1.1
Energy Study
1.1.1.2
Costing
1.1.1.3
Technical feasibility Study
1.1.1.4
Fallout study (project Benefits)
1.1.2
Preliminary report
1.2
Fitness Equipment
1.2.1
Benchmarking
1.2.1.1
Supplier search
1.2.1.2
Quote requests
1.2.1.3
Supplier selection
1.2.1.4
Banchmarking documentation
1.2.2
Fitness Equipment order
1.2.3
Fitness equipment reception
1.2.3.1
Bikes reception
1.2.3.2
Treadmills reception
1.2.3.3
Equipment Storage
1.3
Equipment intallation
1.3.1
Old equipment tranfer
1.3.1.1
Removal of old equipment
1.3.1.2
Disposal of old equipment
1.3.1.3
Room cleaning
1.3.2
New equipment set-up
1.3.2.1
Equipment Installation
1.3.2.2
Electrical installation
1.3.2.2.1
Layering
1.3.2.2.2
Electrical wiring
1.3.3
Room cleaning
1.4
Closure of the project
1.4.1
Testing by Greenwulf
1.4.2
Testing by Stakeholders
1.4.3
Lauch
1.4.4
Review and acceptance
Duration
Start
Finish
65,43 days
17 days
10 days
10 days
4 days
7 days
2 days
7 days
33 days
11 days
5 days
2 days
2 days
2 days
21 days
1 day
3 hrs
3 hrs
1 day
6,43 days
1,14 days
3 hrs
3 hrs
2 hrs
5 days
1 day
4 days
2 days
2 days
2 hrs
9 days
1 day
1 day
1 day
1 day
Mon 03/06/13
Mon 03/06/13
Mon 03/06/13
Mon 03/06/13
Mon 03/06/13
Mon 03/06/13
Mon 03/06/13
Mon 17/06/13
Wed 26/06/13
Wed 26/06/13
Wed 26/06/13
Wed 03/07/13
Mon 08/07/13
Wed 10/07/13
Fri 12/07/13
Mon 12/08/13
Mon 12/08/13
Mon 12/08/13
Mon 12/08/13
Tue 13/08/13
Tue 13/08/13
Tue 13/08/13
Tue 13/08/13
Tue 13/08/13
Wed 14/08/13
Wed 14/08/13
Thu 15/08/13
Thu 15/08/13
Mon 19/08/13
Wed 21/08/13
Wed 21/08/13
Wed 21/08/13
Thu 22/08/13
Fri 23/08/13
Tue 03/09/13
Wed 04/09/13
Tue 25/06/13
Fri 14/06/13
Fri 14/06/13
Thu 06/06/13
Tue 11/06/13
Tue 04/06/13
Tue 25/06/13
Mon 12/08/13
Thu 11/07/13
Tue 02/07/13
Fri 05/07/13
Tue 09/07/13
Thu 11/07/13
Fri 09/08/13
Mon 12/08/13
Mon 12/08/13
Mon 12/08/13
Mon 12/08/13
Wed 21/08/13
Wed 14/08/13
Tue 13/08/13
Tue 13/08/13
Wed 14/08/13
Wed 21/08/13
Thu 15/08/13
Wed 21/08/13
Mon 19/08/13
Wed 21/08/13
Wed 21/08/13
Wed 04/09/13
Thu 22/08/13
Fri 23/08/13
Mon 26/08/13
Wed 04/09/13
We have divided the Green Wulf project in 4 main subprojects: Feasibility studies ending with the
preliminary report, Fitness equipment which contains the suppliers benchmarking process and the
equipment order, Equipment installation including also electrical installation and project closure with
testing and acceptance by end users.
8

9. 3. High Level schedule
The picture above shows the complete Gantt chart for the initial project. We can see that most of
tasks cannot be done simultaneously. The only period when we have a bit of slack is at the very
beginning with the preliminary studies.
4. Network Diagram and Critical Path
The picture below gives a global view of the Network Diagram and critical path (for a more precise
one showing name of tasks, please refer to the MS project file). As we can see, on 24 tasks, only 5 are
not critical. Thus we can say that our project is very sensitive and any delay in one task will delay the
entire project. This can be explained by the nature of the work performed during the project. For
example the electrical installation tasks of layering and wiring can’t be done before the equipment is
installed in the room.
9

10. 10

11. 5. List of Milestones and Dependencies
Milestone
Preliminary report 1.1.2
Dates
Mon 17/06/13 – Tue
25/06/13(7 days)
Wed 10/07/13 - Thu 11/07/13
(2 Days)
Mon 12/08/13 (1 Day)
Benchmarking documentation
1.2.1.4
Fitness Equipment reception
1.2.3
Electrical wiring 1.3.2.2.2
Mon 19/08/13 - Wed 21/08/13
(2 Day)
Wed 21/08/13 – Thu 22/08/13
(1 Day)
Testing by GreenWulf 1.4.1
Preliminary report is our first milestone. It is the result of all our research and will condition the
entire project especially the requirements for the equipment that will be used for the selection of
suppliers. This brings us to the second milestone, the benchmarking documentation. It is crucial that
we order the good equipment, without that the project will be a failure. For these 2 first milestones,
communication with our sponsor will be important.
The third one is the fitness equipment reception after delivery. We need to check that the equipment
is not damaged and match the order. All the installation will depend on good reception of the
equipment.
The fourth milestone is electrical wiring, the last task in terms of installation. We will be able to check
if the installation has been done properly and that we are ready for testing the equipment.
Testing by Green Wulf is our last milestone. This is the last task were we can potentially readjust the
equipment before opening.
6. Risk Assessment / Response
A major project of like this can be accompanied by certain amount of unforeseen risks, so we came
up with this risk analysis of the GreenWulf project and its remedies:
RISK ASSESSMENT FORM
Risk event
Likelihood
Impact
Accident/injuries
Technical hitches
Bad reviews
Lack of funds
5
4
2
3
4
3
4
5
Detection
difficulty
5
4
3
3
Total
100
48
24
45
11

12. RISK RESPONSE FORM
Risk event
Response
Contingency plan
Trigger
Accident/injuries
Reduce
Technical hitches
Refer
Fall, cuts &
electric shock
Power cuts
Bad reviews
Reduce
Equipment
malfunction
Transfer
First aid assistant
present
Technical
assistant
Regular report to
stakeholders
Technical
assistant then if
too serious,
Reorder
equipments
Criticisms during
end-user testing
Equipment
doesn’t work
Who is
responsible
Thomas
Ibrahim
Camille
Amélie
Based on this risk assessment, accidents and injuries is most likely of all uncertain events to occur
at 100 points and the least being bad reviews with 24 points.
C. Finalized schedule
1. Resource requirements and resolution of resource allocation problems
The resources required to achieve the project can be split into two main categories:
-
What can be done by our team (group Green Wulf)
What need to be outsourced because we don’t have the required skill sets (group External
Contractors and Supplier)
Group Green Wulf
The beginning of the project consists of doing feasibility studies, selecting the good supplier, the
purchase of the equipment and testing the new room before opening. All these tasks are done by our
team.
In order to transform one fitness room into a sustainable one, Green Wulf needed to invest in
Dynamo bikes and treadmills.
The fitness room in Carmichael measures about 1,200 ft2.
We decided to furnish it with fifteen Dynamo bikes and fifteen treadmills to keep the same capacity
as it was. The procurement process is also assured by our team.
12

13. Group External Contractors and Supplier
For the rest of the project, we need to hire specialized people for the equipment and electrical
installation as well as for the cleaning.
-
Equipment installation
We hired a crew to remove the old equipment and install the new ones.
-
Electrical installation
We needed to set a new electrical installation up to optimize the energy produced by people on the
Dynamo bikes and the treadmills. Modernizing the room will also reduce the electricity bill by 30%
and enable NCSU to gain an environmental accreditation.
The new electrical installation lied in wiring and layering.
The electrical wiring and layering consist of choosing the right size receptacle boxes, running cable
throughout the room, and making the electrical connections through the walls and the floor.
Moreover, the crew will have to repaint the walls and cover the floor back as well.
-
Cleaning
Besides, we called on a cleaning service twice. First to clean the fitness room after the crew removed
the old equipment and then, before installing the new ones.
The table below summarizes what are our resource requirements:
Type
Research and
documentation
Work 17 220,00 € Green Wulf
400% 60,00 €/hr
Testing
Work
100% 60,00 €/hr
Equipment
installation
Electrical
installation
Work
Work
Cost
Group
Max.
Std. Rate
Units
Resource Name
840,00 € Green Wulf
External
Contractor
External
3 920,00 €
Contractor
External
300,00 €
Contractor
1 520,00 €
Cleaning
Work
Fitness
equipment
Work 33 150,00 € Supplier
300% 80,00 €/hr
200%
140.00
€/hr
200% 75.00 €/hr
100% 0.00 €/hr
Ovt.
Rate
Cost/Use
Accrue At
0.00
0.00 € Prorated
€/hr
0.00
0.00 € Prorated
€/hr
0.00
0.00 € Prorated
€/hr
0.00
0.00 € Prorated
€/hr
0.00
0.00 € Prorated
€/hr
0.00
33 150.00 € Start
€/hr
Thanks to a good planning process, we have been able to make accurate estimates concerning our
resource. The only one who would have been over allocated is Research and documentation since
this resource is used a lot at the beginning. However, we have enough team members to be allocated
to every task.
13

14. 2. Rolled up budget estimates
Cash Flow statement
Cash Flow statement
35000
30000
Dollars
25000
20000
15000
10000
5000
0
03
10
17
24
01
June June June June July
08
July
Cost 6720 2940 2100 2100 1680 34830
15
July
22
July
0
0
02
09
05
12
19
26
29
Sept Sept
Augu Augu Augu Augu
July
emb emb
st
st
st
st
er
er
0
0
3490 2670
0
420
0
The major cash flow is incurred when the equipment is ordered. Afterwards, there are no costs until
the equipment is received.
Phase 1: documentation (preliminary report and benchmarking)
We had established some researches on this market in order to be well informed, to benchmark the
potential suppliers so that we would choose the optimized solution.
All this documentation process cost $17,220.
Phase2: order
Regarding the new equipment, one dynamo bike costs $1,200.
$1,200 x 15 = $18,000.
One treadmill costs $1,000 (x15 = $15,000)
$1,000 x 15 = $15,000.
The delivery costs $75 for each.
$75 x 2 = $150.
Phase3: installation (receiving/installing equipment, electrical installation and cleaning)
As far as the old equipment is concerned, we hired a one truck with a four-man crew for the whole
day, meaning eight hours.
Their minimum service was three hours for $360. So we needed five additional hours. The additional
hour cost $80.
$360 + (5 x $80) = $760.
14

15. As regards to the new equipment installation:
One Dynamo bike weighed 110 pounds x 15 = 1,650 pounds.
One treadmill weighed 220 pounds x 15 = 3,300 pounds.
In order to carry 4,950 pounds of equipment, we called on the same team for the whole day as well.
$760 x 2 = $1,520.
Finally, two specialized people were hired to complete the electrical wiring and the layering. The
wiring lasted four days as well as the layering.
They were paid $1,960 each.
$1,960 x 2 = $3,920.
The materials for the complete rewiring and layering job were included.
As for the cleaning service, it was composed of two people. They brought their own products, which
were included.
For a 1,200ft2 room, the minimum service was two hours at $75 per hour.
We decided to hire the team for two hours for two different days: after removing the old equipment
and before setting up the new ones.
$75 x 2 hours = $150 for the first day.
$150 x 2 = $300 for the second day.
Phase 4: testing
This is the last phase of the project. We have to test our equipment to assure security of our dynamo
bikes and treadmills. This is done by our team for a cost of $840.
EQUIPMENT ORDER
15 dynamo bikes $18,000
15 treadmills $15,000
Delivery cost $150
$33,150
CLEANING SERVICE
2
One 1,200 ft room
2 hours ($75/hour)
For two days
$300
EQUIPMENT
INSTALLATION
One truck with a
4-man crew included
3 hours for $360 + (5 x
$80)
For two days
$1,520
ELECTRICAL
INSTALLATION
4 days layering and wiring
by 2 specialized people at
$1,960 each
$3,920
Total estimated cost baseline regarding external contractors = $38,890
 Total estimated cost baseline included Green Wulf research and external contractors: $56,950.
15

16. Part II Project update
A. Status report
1. Narrative of key events to date
Prior to the start of Green Wulf project, the team had followed a seminar in order to perfect
their skills in all aspects of Project Management, lead by the PM Guru, Steve Del Grosso.
Thanks to his effective training and the previous work experiences of team members on similar
projects, Green Wulf has managed to make rather realistic estimates for all the project tasks. Thus, at
the time of the project status, July 17th 2013, GreenWulf project is on schedule and under costs.
The team also managed to write efficiently the preliminary research documents thus shortening the
baseline schedule for the first project milestone. However, the technical feasibility study had to be
extended from 7 to 9 days in order to secure the knowledge that the estimated energy savings
objective will be met, as “failure was not an option”. We had our project sponsor review our report
in order to provide us with the “green light” to move forward on the project.
As for the second milestone, the team as efficiently researched the equipment suppliers but
the first quotes received were much higher than anticipated. Therefore, Green Wulf team had to
negotiate during two more days in order to obtain the most competitive quote possible. The selected
manufacturer is located in Virginia which will minimize delivery costs compared to some other
providers located in California.
At the date of the project status, the equipment has been ordered after submitting the
benchmarking documents to the NCSU governance, our sponsor, for approval. They were satisfied by
our respect of the project priority matrix so far, as the costs were effectively enhanced and the
project had not been too much delayed.
16

17. 2. Performance indices
Status Report : July 17th, 2013
WBS
Task
%
Complete
1.1.1.1
Energy Study
Finished
1.1.1.2
Costing
Finished
Technical
Finished
1.1.1.3
feasibility Study
1.1.1.4
Fallout study
Finished
Preliminary
Finished
1.1.2
report
1.2.1.1 Supplier search Finished
1.2.1.2 Quote requests Finished
Supplier
Finished
1.2.1.3
selection
Banchmarking Finished
1.2.1.4
documentation
Fitness
1.2.2
Equipment
29%
order
Cumulative Totals
EV
AC
PV
CV
SV
4 200.00 €
1 680.00 €
3 780.00 €
1 680.00 €
4 200.00 €
1 680.00 €
420.00 €
0.00 €
0.00 €
0.00 €
2 940.00 €
3 780.00 €
2 940.00 €
-840.00 €
0.00 €
840.00 €
420.00 €
840.00 €
420.00 €
0.00 €
2 940.00 €
2 100.00 €
2 940.00 €
840.00 €
0.00 €
2 100.00 €
840.00 €
1 680.00 €
1 680.00 €
2 100.00 €
840.00 €
420.00 €
-840.00 €
0.00 €
0.00 €
840.00 €
420.00 €
840.00 €
420.00 €
0.00 €
840.00 €
840.00 €
840.00 €
0.00 €
0.00 €
9 613. 50 €
9 613. 50 €
9 613. 50 €
0.00 €
0.00 €
26 833.50 €
25 993. 50 €
26 833, 50 €
840.00 €
0.00 €
As seen from the Earned Value report above, on July 17th, 2013, the project was on schedule and
under cost by 840, 00 €. Since the Fitness Equipment Order task has a fixed cost which amounts to
the total price of the bikes and treadmills plus delivery costs, the cost doesn’t vary with the
percentage of completion of the task. Thus, the Earned Value equals the Actual Cost of work
performed which is also equal to the Planned Value.
3. Project schedule status
The phase 1.1: “feasibility studies” has already been completed. We are on Day 33 so the project
completion is about 47.8%. The GreenWulf project was expected to last 68.86 days according the
WBS and end on Tuesday, August 27, 2013.
The project is currently in phase 1.2.2 of the Work Breakdown Structure. Our team has just ordered
the fitness equipment online which is expected to be delivered in the following days. The activity is
supposed to last 21 days.
17

18. B. Problem solving
1. Description of key problems and issues encountered
There was a major hurricane that hit North Carolina and its surrounding cities on 5th August 2013.
The hurricane named “Hurricane Rouge (category 2)” due to its unassuming but destructive nature
caused severe damages in most cities and small towns in North Carolina. Consequences of the
hurricane included flooding, complete power shortage for 3 days and an abrupt end to all activities at
offices, schools, etc. following advice of the regional meteorology department. There was a state of
emergency for 3 days.
The aftermath of the hurricane resulted in the loss of all the order we made for equipments as the
driver lost control of the vehicle and plunged in the Lake Johnson in Raleigh. He was advised to stay
at home but wanted to finish his work in order to maximize his paycheck. In addition, the Carmichael
complex suffered from flood and power outage issues.
18

19. 2. Responses to the problems and how they affected the project
First, concerning the lost order, it had no extra-cost on the project’s budget since the manufacturer’s
insurance covers hurricane damages. However, the project team had to order again the fitness
equipment and wait for the delivery before going further in the project.
Secondly, NCSU governance had to arrange the repairs to Carmichael Sports complex that lasted 7
days. In total, due to the hurricane and its aftermath, the Green Wulf project was delayed by 10 days
during which we could not process with the project.
C. Management issues
1. Problem description
In the meantime, our team had to face another challenge: North Carolina State University revised the
project’s budget and since they were pleased by our progresses, they decided to renovate the whole
fitness complex. The university asked us to be in charge of the installation of the 3 fitness rooms in
the Carmichael Gymnasium. It raised some 4 new constraints for our team.
The first constraint was to maintain the users’ experience. Since we had to renovate the whole
fitness center of the gymnasium, we had to find a strategy that will allow students, faculty and staff
to keep on working out during the project duration.
The second constraint is to enhance time. Since the project has a new scope, the project will now
have a completion date further into the fall semester. The project team is expected to meet the new
deadlines and to complete the GreenWulf project as soon as possible in order to offer to students a
sustainable gymnasium rapidly without disturbing the gymnasium life.
The third constraint is the project performance. Since our team will be in charge of the installation of
2 new rooms, we need to deliver a high quality service as stated in the project scope and expected
from the stakeholders.
The final constraint is still to manage the costs due to the limited financing available from NC State
governance.
2. Response to the issues and how the responses impact the whole project
Regarding the new request from North Carolina State University, our team had to find ways to
answer the new constraints.
First, the project team discussed with the NC State committee about the new project scope and
requirements in order to reach a new agreement that matches stakeholders’ expectations with new
deadlines for the operational team.
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20. In order to answer the 3 constraints raised by the new request from NC State, our project team
implemented 4 strategies:
- To limit costs, we decided to renegotiate with the suppliers to lower the price or waive the delivery
fees since we will order a bigger quantity.
- To maintain the users’ experience, the GreenWulf project team decided to rotate the fitness rooms
one by one so that at least one room would still be accessible for users whereas the others would be
under renovation.
- To enhance time, the project team is convinced that it will acquire expertise during the first fitness
room installation. The expertise acquired will allow the team to better manage the project tasks for
the two other rooms installation.
- To get a proofed performance, our team extended the feasibility studies to all the fitness rooms.
According to the new request from NC State, our project team rescheduled the entire project in
order to answer the new project scope. The project duration is now 101.86 days and the new
expected completion date is on Thursday, October 24th.
We can find below the new project matrix generated for the GreenWulf master project.
As we can see on the table, Performance remains the constraint.
However, Time came from “accept” to “enhance”. Indeed, time plays a major role in the new project
since we now need to install 3 fitness rooms instead of one and the installation needs to impact the
gymnasium life as low as possible.
Also, Cost came from “enhance” to “accept”. Actually, NC State is willing to finance the gymnasium
so the cost is not a real constraint.
Now, the project has to focus on Performance and Time.
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21. D. Revised Project Estimate
1. Projected Cost
Given that our previous orders had been destroyed by the hurricane in North Carolina, order and
fabrication of the new equipment had to start from scratch. Luckily, Green Wulf did not have to take
the cost related to the losses in charge. It was the manufacture’s insurance responsibility.
Furthermore, NCSU and stakeholders were really happy of the project so that we had to extend it to
three fitness rooms.
Regarding the dynamo bikes, we needed to order 15 x 3 fitness rooms = 45,000. The cost per unit
was still $1,200.
$1,200 x 45 = $54,000.
For the treadmill, the manufacturer kept the same price per unit.
$1,000 x 45 = $45,000.
Our equipment supplier did not charge us for the delivery though, because we ordered in huge
quantity.
The delivery cost = $0.
As for the cleaning service, we asked the two people if adding two extra rooms were possible
considering the deadline. They agreed. The price was still $75 per hour for a minimum service of two
hours. But they granted us a 8.33% discount.
It was $300 for one fitness room, including the two-day work. We relied on that basis.
($300 x 3 rooms) x 8.33% = $825.
Regarding the new equipment installation, before the hurricane the four-man crew needed three
days to install the bikes and treadmills. After the hurricane, they needed one day more to complete
the same task and charged us for that extra day.
We paid $1,520 for one fitness room for three-hour work.
The crew granted us a 13.3% discount for the two new rooms. We still had to pay the full price for
the first one.
($1,520 + ($1,760 x 2)) x 13.3% = $4,448
The last but not the least, the two specialized people in electrical wiring and layering came back and
gave us a 15% discount on the total amount.
One room cost $3,960 for eight days.
($3,920 x 3 rooms) x 15% = $9,996 for 24 days.
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22. As for the flood damages to the Carmichael complex, NCSU was responsible for the losses.
EQUIPMENT ORDER
45 dynamo bikes $54,000
45 treadmills $45,000
Delivery cost $0
$99,000
CLEANING
SERVICE
Three 1,200 ft2
rooms
2 hours ($75/hour)
8,33% off
For two dates
$825
EQUIPMENT
INSTALLATION
ELECTRICAL
INSTALLATION
One truck with a 4-man
crew for each room +
20% discount for the 2
last rooms for 4 days
4 days layering and
wiring by 2 specialized
people at $1,960 each x
3 rooms
$4,448
$9,996
Total estimated cost baseline regarding external contractors = $114,269
The hurricane as well as the two more fitness rooms modified our internal processes and strategy.
We had to do conduct other researches and documentation not to shake up our project and to be as
closed as possible to our previous deadlines.
This cost us $20,160 (including the test process).
 Total estimated cost baseline included the researches and the external contractors: $134,429.
At the beginning, our baseline cost was $56,950. After the hurricane and the two additional rooms, it
is now $134,429 (a $77,479 extra difference).
Let’s calculate the Cost Performance Index (CPI) to determine if we are under cost, on cost or over
cost regarding our baseline.
CPI = EV / AC
(with EV meaning the Earned Value and AC the Actual Cost)
= 124,629.32 / 123,821
= 1,01
This means that our project is approximately on cost compared to our forecast.
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23. 2. Schedule
Let’s calculate the Schedule Performance Index (SPI) to determine if we are ahead of schedule, on
schedule or behind schedule.
SPI = EV / PV
(with PV meaning the planned time-phased baseline)
= 124,629.32 / 123,621
= 1,01
This means our project is on schedule.
We can see on the picture below the effect of the hurricane on the initial project. The delivery has
been interrupted and reparations had to be done. After that and once the renegotiation with the
supplier if done, we can reorder the equipment and restart the project.
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24. The second change in the schedule is the addition of 2 more rooms to renovate. The second project
starts after the hurricane with a new feasibility studies. It takes less time than the first one since we
already did it once; it is only a matter of adaptation to the new room.
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25. E. Summary
1. Keys to successfully completing the projects
In order to meet our overall goal of renovating all 3 fitness rooms and finishing the GreenWulf
Project without any (more) sensitive issues that could limit progression of this project, we have
identified some vital steps in the project that must be managed correctly and they include the
following:
Limiting sensitivity of the project
One of the key sensitive aspects of this project is the fitness equipment order and reception of order.
This is crucial because, the time between order and reception usually takes between 17 to 28 days
and any lapse in time will have to change our plans and the project not progressing to the next level
of equipment installation and layering of electrical lines. Any wrong delivery of product will also
cause this project a great deal so we will have to be very certain about our product orders and
specification.
We also need to take into consideration the initial feasibility reports as any wrong estimation of the
project can lead to performance, time and cost constraints. Therefore the main sensitive aspects of
this stage are energy study, costing and technical feasibility study. This well done is very likely to
prevent any unforeseen issues in the future of the project.
Time management (project duration & delivery end product)
As time is of essence in this project, we will have to make sure tasks are performed on schedule and
by the right expertise. Some projects must parallel to each other. They could both start on the same
day and end at the same finishing time. For instance, whilst fitness equipment orders have been
placed, cleaning and clearing out of old equipments could happen since they do not depend on each
other to start the next phase of the job (Milestones).
In saving time, we will have to seek the service of experts in the various aspects of this project who
can be efficient in task completion. And during the project expansion, the same workers will be used
since they now have a better understanding of the GreenWulf project and will be extra efficient in
delivering good job. This will save the project time and further risks.
Respect end user experience
To guarantee that student and other users are able to still use the sports Complex when school
resumes or even whilst work is still in progress, we will have to rotate from one fitness room to
another after work in each room is completed. We must maintain a great level of support to users of
the Carmichael Complex and kept them updated on the project by communicating with the project
stakeholders.
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26. 2. Forecast at completion
We are going to look at the Variance Cost at Completion (VAC) to determine which activities have
gone well or not.
It is the difference between EAC and BAC. Negative variance indicates that the project will be
completed over budget. On the contrary, positive VACs mean that the activities will be completed
less than the budgets.
VAC for fitness room 1 = +$992.11
For fitness room 2 = -$146.49
For fitness room 3 = -$146.73
As a result, the fitness room number 1 will be the only one to be completed less than the budgets.
Whereas the fitness rooms number 2 and 3 will be completed over budget.
Here are the activities that have gone well and the ones that have had some issues:
Fitness Rooms
Negative VACs
Fitness Room 1


technical feasibility study
quote requests
Fitness Room 2






bikes reception
treadmills reception
old equipment transfer
removal of old equipment
electrical wiring
fitness equipment
reception

Positive VACs






Feasibility study
energy study
fallout study
preliminary report
supplier search
supplier selection








equipment installation
room cleaning
new equipment set-up
electrical installation
layering
feasibility study
fallout study
report
Fitness equipment
reception
Bikes reception
Treadmills reception


For the other activities, VACs are $0.
Fitness Room 3
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27. 3. Formal statement of confidence and risk
Having experienced some difficulties before the second phase of the project, we were well prepared
for the second phase of the project even though we have more workload to do. We did a second risk
assessment of and were able to better prepare for any eventualities that could occur.
Also with first phase successfully done, we were more confident about executing the second phase of
the project quicker and even better with all the experience drawn from the initial part of the project. For
instance, we were quite certain of how much energy we could tap from the new rooms because we
have already been able to measure how much energy we tap from the first room.
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