Case: A Project Management and Control System for Capital Projects
CASE
A PROJECT MANAGEMENT AND CONTROL SYSTEM FOR CAPITAL PROJECTS
Herbert F.Spirer and A.G. Hulvey
Table of Contents
Introduction
Feasibility Study
Program Design
Project Plan
1.Introduction
2.Project Objectives
3.Project/Program Structures
4.Project/Program Costs
5.Network
6.Schedule & Resource Allocation
7.Organization & Accountability
8.Control System
9.Milestones or Project Subdivisions
Summary
Introduction
Heublein, Inc., develops, manufactures, and markets consumer food and beverage products domestically and internationally. The business of Heublein, Inc., their sales revenue, and some of their better known products are shown in Figure 1. Highlights of Figure 1 include:
The four major businesses ("Groups") use different manufacturing plants, equipment, and processes to produce their products. In the Spirits Group large, continuous-process bottling plants are the rule; in the Food Service and Franchising Group, small fast food restaurants are the "manufacturing plants."
The amount of spending for capital projects and support varies greatly among the Groups, as would be expected from the differences in the magnitude of sales revenues.
www.wiley.com/college/projectmgt/meredith/cases/page04.htm
1/3
3/26/13
Case: A Project Management and Control System for Capital Projects
Figure 1: Heiblein, Inc.(fiscal 1981)
The engineering departments of the Groups have responsibility for operational planning and control of capital projects, a common feature of the Groups. However, the differences among the Groups are reflected in differences in the sizes of the engineering departments and their support services. Similarly, financial tracking support varies from full external support to self-maintained records.
Prior to the implementation of the Project Management and Control System (PM&C) described in this paper, the capital project process