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Trouble in Paradise

In: Business and Management

Submitted By lucianahasse
Words 1818
Pages 8
Case Analysis Report:
1. Case Overview
Acme Corp won a new contract and assigned Wiley Coyote as the PMP. Timing was critical to the project - Acme estimated that delayed completion would cost the company at least $100 a month. Coyote’s first job was to select an engineering contractor. Out of eight bids, Coyote decided to negotiate with only the lowest bidder. The contractor’s PM, Ima Roadrunner, which has been selected was unknown to Coyote.
Coyote reviewed the proposal. The duration would be approximately six months, 2000 hours at $120/hour, all workers being the same pay grade and working full time, with a profit margin of 12.5%. Roadrunner provided Coyote with its engineering pay structure and the project spending curve (exhibits 1 and 2), which also showed the payment plan from Acme to the contractor. Initially Coyote proposed a fixed-price contract with penalty for late delivery but, given a reduction of profit margin to 10%, Coyote agreed to a fixed-price contract with incentive for completing the project under budget.
For progress reporting, Roadrunner had no experience with earned value but promised a monthly report showing BCWS, BCWP, and ACWP. After one month Roadrunner reported BCWS $42k for 350 hours, BCWP $48k for 400 hours, and ACWP $34k for 400 hours (exhibit 3). Coyote believed these numbers indicated a project running under budget and ahead of schedule. However, after the fifth month Roadrunner reported the project would be completed within cost but two months late.
Wiley no longer works for Acme. Acting as consultants Team 5 must analyze the project and prepare a list of lessons learned, particularly if there were any early warning signs. 2. Analysis Process
Using the three exhibits provided analysis should consider:
What the priorities were for Acme
How the contract with Roadrunner was...

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