Group 3 - Topic D

Group 3 - Topic D - ISE 441 Engineering Project Management...

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TELESTAR INTERNATIONAL ISE 441 Engineering Project Management
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TELESTAR I NTERNATI OL Department of Energy Resources awarded a $475,000 contract for the developing and testing of two waste treatment plants. Spent the better part of the last two years developing waste treatment technology
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Original bid was $847,000 Corporate Manager willing to spend $400,000 Three months later, costs were increasing where overrun would be occurred TELESTAR I NTERNATI OL
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TELESTAR I NTERNATI OL Anticipated costs to completion were $943,000 and it was overrun $68,000 Project manager stopped all activities in certain functional departments Such as Structural Analysis
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CONFLI CTS Structures Manager : You’re running a risk if you close out this work order. How will you know if the hardware can withstand the stresses that will be imposed during the test? After all, the test is scheduled for next month and I can probably finish the analysis by then.
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CONFLI CTS Project Manager: I understand your concern, but I cannot risk a cost overrun. My boss expects me to do the work within cost. The plant is similar to one that we have tested before, without any structural problems being detected. On the basis I consider your analysis unnecessary.
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CONFLI CTS Structures Manager: Just because two plants are similar does not mean that they will be identical in performance. There can be major structural deficiencies.
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CONFLI CTS Project Manager: I guess the risk is mine
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CONFLI CTS Structures Manager: Yes, but I get concerned when a failure can reflect on the integrity of my department. You know, we’re performing on schedule and within the time and money budgeted. You’re setting a bad example by cutting off our budget without any real justification.
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Group 3 - Topic D - ISE 441 Engineering Project Management...

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