project final
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Automotive Rejuvenation Project 1
Colorado Technical University
Automotive Rejuvenation Project
Project Draft Plan
JD McKenna
Submitted in Partial Fulfillment of the Requirements for
PMGT405
Project Management 405
By
Group Five
Colorado Springs, Colorado
September 2006
Automotive Rejuvenation Project 2
Table of Contents
Abstract: ........................................................................................................................................3
Introduction: ..................................................................................................................................4
Problem Overview: ........................................................................................................................5
Methodology: ..................................................................................................................................6
Phase 1: Defining Phase:
Project Goals ..............................................................................................................................6
Purpose Statement ......................................................................................................................7
Project Charter ...........................................................................................................................7
Project Specifications.................................................................................................................7
Task Requirements.....................................................................................................................8
Statement of Work (SOW).........................................................................................................9
Work Breakdown Structure (WBS) ...........................................................................................9
Team Member Responsibilities .................................................................................................9
Responsibility Matrix...............................................................................................................10
Phase Two: Planning Phase ........................................................................................................10
Project Timeline Overview ......................................................................................................10
Current Upkeep Cost Analysis.................................................................................................10
Forecasted Expenditures (Project Budget) ...............................................................................10
Budget Timeline.......................................................................................................................11
.
Phase Three: Execution Phase:...................................................................................................11
Project Management: ..................................................................................................................13
Budget ......................................................................................................................................13
Objectives ................................................................................................................................13
Schedule ...................................................................................................................................13
Communications ......................................................................................................................14
Scope/ Risk Analyst .................................................................................................................15
Organizational Structure ..........................................................................................................15
Stake Holders and Roles: ............................................................................................................16
School Board, Project Sponsor ................................................................................................16
Randy Darling, Project Manager .............................................................................................16
Edward Moran, Project Designer .............................................................................................16
Matthew Sharp, Project Negotiator..........................................................................................17
Matthew Caraway, Project Analysis ........................................................................................17
Loren Schwappach, Project Accountant ..................................................................................17
References .....................................................................................................................................31
Automotive Rejuvenation Project 3
Abstract
A prestigious school located in Colorado has noticed that their automotive vehicle fleet
has deteriorated in recent years. To solve this problem, they have contracted our project
management firm. The following document is the project plan that our firm has devised. This
document is crucial for the success of our project.
Automotive Rejuvenation Project 4
I. Introduction:
1. Background:
Located deep within the heart of Colorado, our prestigious school has long stood
as an unchallenged leader toward providing superior secondary education services. Our school’s
strong commitment to distinction and quality has forged the foundation of excellence for our
teachers and students. This strict demand for continual quality and performance has driven our
school to a point of brilliance unmatched by any of our competitors. During a recent quality and
assurance analysis of the school’s grounds it was made apparent that the school’s aging vehicle
fleet no longer reflects the school’s high prestige. Furthermore the review illuminated severe
safety problems with several of the school’s vehicles and an over usage crisis creating
considerable irritation between scholastic departments. Through these and other observations the
following statements are made concrete. In order for our school to maintain its’ current superior
educational standing and increase student revenue in such a way as to allow quality and
excellence to distinguish us as Colorado’s leading secondary school, a complete rejuvenation of
the school’s inadequate vehicle infrastructure must be completed. Toward these efforts, the
school has planned to substantially increase the number of local students. The school has also
planned an expeditious high adventure program for students slated to begin early this spring. In
planning a viable solution for the problem the school board met on Friday, 7 July 06 and voted
on the creation of a vehicle fleet project management team. This project management team was
assigned the task of reviewing the current automotive infrastructure of the school and the
responsibility of submitting a practical finalized project plan for board member approval on 29
November 2006.
Automotive Rejuvenation Project 5
2. Problem Overview:
The completion and success of the project is of crucial significance necessary for
the prestige, growth, adaptability, and safety of the school and its’ two hundred and fifty students
and forty-three faculty members. The fleet’s replacement is necessary due to vehicle aging,
excessive over-usage, and extreme lack of critical and routine maintenance. The current
automotive fleet has become rundown, dangerous, and unreliable. The transformation of the
fleet is imperative if the school is to complete several of its’ future projects. Two of these
proposed plans are the installment of the high adventure program this spring, and the expansion
of the school’s local student body population of at least fifty students before the start of the next
school year. Through our work with the school board our project team also concluded the
following facts…
The following critical additional resource requirements are required for the
school to meet both current and future scholastic objectives.
Our automotive fleet will require...
A replacement of the school’s current old and rundown vehicles with new or used
reliable alternatives, utilizing vehicles featuring four-wheel drive, or at least
incorporating front-wheel drive.
Three additional 20-passenger buses or one larger 50/60-passenger bus.
Two large, 4-wheel drive SUVs, to support extracurricular programs.
One full-time auto mechanic.
Additional two or three new/used mini-vans, to alleviate vehicle over usage.
Automotive Rejuvenation Project 6
3. Methodology:
In order to meet the prestigious and essential requirements of the school and its’
students our project team has concluded the following methodical approach toward rejuvenating
our dangerous and neglected vehicle infrastructure. By following this researched approach we
will ensure that the antiquated vehicles are replaced within time and budget constraints and keep
the fleet well maintained into the schools brilliant future. To meet the unique requirements of
this intricate project the approach was divided into three vital phases. Completion of each phase
is imperative for successful project completion.
Phase 1: Defining Phase
The project defining phase involved the formation of project specifications and
objectives. The project team and major responsibilities were assigned. In this phase our team
concluded the following…
Project Goals: We determined the goal of this project to be the rejuvenation of
the schools existing worn down vehicle fleet through systematic purchase and
replacement of problematic vehicles with sound new and used quality vehicles.
The continued maintenance of these vehicles and maintenance of ground
equipment must also be resolved for successful project resolution. Our goal is to
complete this plan as efficiently as plausible within both time and budget
constraints.
Automotive Rejuvenation Project 7
Purpose Statement: Out team determined the purpose of this project to be the
reengineering of the current infrastructure of the school’s flawed vehicle fleet and
the replacement of faulty dysfunctional vehicles with safe and reliable
alternatives. This project is imperative for both the growth and success of the
school. The purpose of our team is to ensure the successful creation and
conclusion of this project while meeting all project deliverables within the project
time and budget.
Project Charter: Our project charter was drafted and signed by all project
participants on 5 August 06, a copy of the charter is attached to this document for
board member reference.
Project Specifications: The following original specifications were used in the
creation of this project plan.
~ Project budget: $180,000 and $50,000 reserved for next calendar year
~ Critical dates derived from first school board meeting:
29 Nov 06 – Present project plan to board
29 Dec 06 – Deadline to spend project budget for fiscal year
21 Nov 08 – Deadline for project completion
15 Dec to 6 Jan – Holiday Recess
~ Required deliverables as determined during the first board meeting:
Increase bus capacity by 50 students.
Hire new automotive mechanic (apply 1st year’s salary to budget).
Purchase two four-wheel drive SUVs for “High Adventure” program.
Replace / restore faulty vehicles with mixture of new / used vehicles.
Note: All vehicles must be 4 wheel drive, or good front wheel drive.
Automotive Rejuvenation Project 8
Task Requirements: The following tasks are essential to the completion of this
project and could critically impact project implementation, closure, and success.
They have been listed in there general order of precedence.
1. Research current administrative costs
2. Research current upkeep costs
3. Research current vehicle market values
4. Research best school bus (purchase / replacement) option
5. Research best SUV purchase option
6. Research best minivan (purchase / replacement) option
7. Research best Sedan (purchase / replacement) option
8. Research cost / contracting options for automotive mechanic
9. Advertise open position for school auto mechanic
10. Screen applicant resumes
11. Interview selected potential applicants
12. Hire / Notify chosen applicant
13. Renovate / prepare maintenance facilities for vehicle servicing
14. Prepare school grounds for replacement / transition
15. Sell old / defective school buses
16. Purchase / Replace (new / used) school buses
17. Purchase (new / used) SUV
18. Sell old / defective minivans
19. Purchase / replace (new / used) minivans
20. Sell old Sedans
21. Purchase new / replacement Sedans
22. Sell old 5 ton truck
23. Inspect / record condition of automotive fleet (AF)
24. Purchase essential replacement / spare parts (AF)
25. Perform critical vehicle maintenance (AF)
26. Perform essential / other vehicle maintenance (AF)
27. Perform routine vehicle maintenance (AF)
28. Inspect / record condition of maintenance utilities (MU)
29. Purchase essential replacement / spare parts (MU)
30. Inspect / Service / Repair 60KW Generator
31. Perform critical maintenance (MU)
32. Perform essential / other maintenance (MU)
33. Perform routine maintenance (MU)
Automotive Rejuvenation Project 9
Statement of Work (SOW): Our project team developed a plan to renovate the
school’s automobile fleet and ensure that proper maintenance could be
sufficiently undertaken. Upon approval from the board of directors, expected on
or shortly after November 29th
2006, the project team will begin executing this
project plan. For the purposes of this document, the term vehicles will refer to all
passenger automobiles, buses, lawn mowers, Cushman grounds vehicles, and the
backup generator when speaking with reference to equipment maintenance.
Work Breakdown Structure (WBS): To initiate our statement of work and meet
project scope our team created the following work breakdown structure. The
WBS was organized into three main structures. (See appendix: Illustrations 1A,
1B, and 1C)
Team member responsibilities: The project manager assigned the following
responsibilities to every team member.
a. Check bulletin board and email at least once a day, more often as you approach lesson and
project deadlines.
b. Two of the teammates are on opposite sides of the world and in different time zones. Thus it
was recommended that they try checking the blackboard project site after 6:00pm mountain
standard time.
c. Complete all assigned tasks by the agreed upon deadlines.
d. Notify team members of any delays or issues that may cause delays.
e. Work as a team, volunteer to help out if you see one of your team struggling
f. Once assigned to a task ensure project manager and team is continually updated on task
progression.
Automotive Rejuvenation Project 10
Responsibility Matrix: The responsibility matrix set specific responsibilities for
each team member and their roles towards specific deliverables. It was split into
three phases to correspond with the three phases of the project. (See appendix:
Illustrations 2A, 2B, and 2C)
Phase 2: Planning Phase
The project planning phase involved the planning and research of several critical
project aspects. Through internet research, telephone communication and newspaper
articles our project team developed and concluded a good timeline for project
completion. (See appendix: Illustrations 3A, 3B, 3C, and 3D)
Current upkeep cost analysis: Current vehicle upkeep cost are estimated at
approx $18,000 annually. The total maintenance cost for the last two years was $37,640. This
has been insufficient for adequate maintenance and is one reason for the current vehicle
situation. This amount will be greatly reduced in the future as labor costs will be assumed under
annual salary of mechanic, and regular preventative maintenance will avoid costly replacement.
Forecasted Expenditures (Project Budget): Our project budget requirements
were obtained and used in the creation of our project’s budget plan. Data was compiled by the
project team using internet and field research obtained during the project planning phase. Most
of the used vehicle price approximations were obtained from internet sources. (See appendix:
Illustration 4A)
Automotive Rejuvenation Project 11
Budget Timeline: After researching cost constraints using the proposed budget
(See appendix: illustration 4A), our project team concluded a sound budget timeline
necessary to meet board member objectives and successful project completion. (See
appendix: illustration 4B)
Phase 3: Execution Phase
The project execution phase involves execution of the project’s action plan and as
previously mentioned will be enacted upon board member approval. The execution phase
involves action / completion of the following essential deliverables summarized below...
Advertise open position for school auto mechanic: Our team will begin advertising the opening of this new
position utilizing the local city newspaper, word will also be spread through word of mouth and advertised
throughout the local school work centers for 7 days. The mechanic will be required to have ASE certifications in
brakes, steering and suspension, at a minimum.
Screen applicant resumes: Resumes will be gathered and screened looking for experience, reliability, and ASE
certifications. All references will also be verified to insure creditability. Furthermore, selected applicants will be
scheduled for personal interviews to take place over a 2 day period.
Interview selected potential applicants: Interviews will be conducted with each applicant selected during the
screening process. Interviews will probe mechanical knowledge of the applicant as well as the applicant’s ability to
work unsupervised.
Automotive Rejuvenation Project 12
Renovate / prepare maintenance facilities for vehicle servicing: The School’s vehicle bay has not been used for
three years, therefore it is reasonable to assume that there will be costs associated with getting this facility back in to
working condition. Our team has set aside $3,000 within our proposed budget for the inspection and repair of these
facilities and the restocking of essential shop supplies. Establishment of vendor accounts for lubricants, shop
supplies, and repair parts will be created during this time.
Prepare school grounds for replacement / transition: Vehicles and grounds will be structured and attended to
allow swift vehicle replacement transitions. Inspection and preparation of the grounds will provide safe and
efficient operations for the mechanic and vehicle operators.
Purchase / Selling of vehicles: If the project plan is approved our team will begin the process of selling and
purchasing the fleets vehicles using the proposed project budget. And deviations of the project budget due to
unforeseen costs / vehicle inspections will be immediately notified to the project manager and brought before the
school board. If the deviation requires increased funding outside of the set project buffer (Set as 10% of the project
budget, see budget plan), a decision will be resolved by the board as to whether the deliverable should be held off
until the schools next fiscal year where an additional $50,000 has already been allotted for this project.
Inspect / record condition of automotive and grounds vehicles: The mechanic will require approximately 1 month
to complete the inspection and record the condition of the school’s entire vehicle fleet. During this time, the
mechanic can request any repair parts as needed.
Purchase essential replacement / spare parts: This cost is difficult to forecast as there are many variables
dependent upon the condition of the fleet after mechanic inspection. Averages will vary from month to month and
year to year, but this will be a fairly new fleet. Our team has set aside 12,000 dollars in the project budget for this
purpose.
Automotive Rejuvenation Project 13
II. Project Management:
1. Budget:
Thus far there have been no expenditures to date. Once this project receives
board approval it will expand into its’ third phase and the proposed budget will become
active. Although there are no issues with the budget at this time any issues that result
during execution of the project plan will be immediately brought before the project
manager and the board for analysis and resolution. At a minimum the project team will
update the board on the budget quarterly.
2. Objectives:
All project objectives have been identified and should be met utilizing the current
project timeline and proposed budget. A weekly status update is given to the project
manager and combined in a monthly status briefing for the board to assist in project
vision, management, and resolution. By presenting a clear understanding to each project
participant project efficiency is dramatically increased.
3. Schedule:
The project schedule is on track and has met all proposed expectations
corresponding to the proposed project time line. Phases 1 and 2 are complete while the
project awaits board member approval to begin its’ execution phase. We expect the
project to stay on track and meet all proposed deadlines, although delay in project
approval could stall task completion and drastically impact the project timeline.
Automotive Rejuvenation Project 14
4. Communication:
External communication:
Formal: On the first work day of each fiscal quarter, the Board of Directors will
be briefed by the project team. This detailed briefing will include all aspects of the
projects progress, current status, and projected achievements for the next quarter. It will
also cover issues and possible solutions.
Informal: The PM will conduct periodic updates to one member of the Board of
Directors (as appointed by the board) twice a month. These updates will be emailed to the
board member followed by a short face to face presentation. These updates will represent
a snapshot of the project and give the board the opportunity to suggest modifications in a
timely manner of required.
Internal communication:
Formal: Once a week, the team will conduct a project meeting at which they will
brief their individual progress and status. It will also address the team’s collective
progress and status. The meeting will be chaired by the PM. Any issues confronting
members will be discussed and possible solutions will be reviewed and a course of action
selected. The PM will determine if the course of action requires board approval and will
request approval if necessary.
Informal: The team members will communicate with each other and the PM via
telephone and email. Should any issue arise requiring immediate group attention,
additional meetings can be scheduled to address the issues.
Automotive Rejuvenation Project 15
5. Scope / Risk Analysis:
The project scope was defined by the board during the school board meeting on 7
July 06. From that resolution this team has made no significant changes with in the
project’s scope. After receiving approval to go forward into the third phase of this
project any changes in terms of cost, schedule and risk could have devastating impacts on
project success. Any such changes in scope will be mentioned in a memorandum to the
board and discussed in depth during the quarterly board briefing. During our analysis of
the projects critical tasks our team has concluded four major potential project risks.
These risks could have drastic consequences on the project. (See appendix: Illustrations
5A, and 5B)
6. Organizational Structure: In order to assign responsibility and provide structured
management to the completion of project tasks our team incorporated a dynamic
project structure. (See appendix: Illustrations 6A)
Automotive Rejuvenation Project 16
Stakeholders and Roles:
School Board, Project Sponsor: The School Board is the projects sponsor and was responsible
for voting on the creation of this project and is the essential agent in determining this projects
success. The board will decide whether or not to approve or deny this project after receiving the
final project review and will act as the funding authority if the project is chosen acceptable.
Randy Darling, Project Manager: Working through his second year at Colorado Technical
University, Randy Darling is pursuing his Bachelors of Science in Electrical Engineering. He is
an Army Contractor at Fort Carson with Chugach McKinley Inc. Although his background as a
Project manager is small, his knowledge of automobiles and vehicle maintenance and harsh
determination to earn an A in our class make Randy an excellent choice as project manager.
Edward Moran, Project Designer: Edward Moran is taking his third class with Colorado
Technical University, and is in his second year towards a degree in Information Systems
Management. He is a Certified Associate in Project Management from PMI, and is hoping this
class will help put it all together. Although he has no documented experience in project
management Edward’s ability to think outside the box and follow a project to its conclusion
made him an excellent choice as Project Designer.
Automotive Rejuvenation Project 17
Matthew Sharp, Project Negotiator: Matthew Sharp is finishing his second year at Colorado
Technical University, CTU. He has worked at Ford Credit for over five years, starting in
customer service, moved to repossessions/charge offs, and is now working in the learning and
development department, (i.e. training department). He is hoping to move to the leadership team
at Ford Credit. After reading the book, Crucial Confrontations, Matthew became well known
for his ability to communicate at times when there are high emotions and great deals at stake.
This and other features made Matthew our immediate choice as Project Negotiator.
Matthew Caraway, Project Analyst: Matthew Caraway has been attending Colorado
Technical University since August of 2004. Matthew is half way to completing his degree in
Information Systems Management, He currently works in the IT department at Ford Motor
Company at Colorado Springs, CO. His vast experience in the IT department and analytical
skills made Matthew our best choice as Project Analyst.
Loren Schwappach, Project Accountant: Loren Schwappach is currently taking his first class
with CTU. Loren is currently stationed outside of the United States at Camp Humphrey; Korea.
Enlisted in the U.S. Air Force, Loren has completed over sixty credit hours towards his bachelors
of science in electrical engineering, and works as the lead non-commissioned officer in charge
responsible for the operation and maintenance of his squadron’s mobile satellite antenna
terminal. Loren has an extensive background in science and mathematics, and strong sense of
integrity, which made him a great choice as our Project Accountant.
Automotive Rejuvenation Project 18
Appendix
Illustration 1A: WBS part 1. Research structure.
Note: All components of this research structure had to be finished before final project
submittal and school board recommendation.
Automotive Rejuvenation Project 19
Appendix
Illustration 1B: WBS part 2. Hire, buy & sell structure.
Note: The hire, buy and sell structure incorporates vehicle replacement operations as
well as providing set points of contact for the hiring of an automotive mechanic and
school ground facility preparations.
Automotive Rejuvenation Project 20
Appendix
Illustration 1C: WBS part 3. Mechanic structure.
Note: The mechanic structure illustrates the work load the mechanic will be responsible
for completing.
Automotive Rejuvenation Project 21
Appendix
Illustration 2A: Phase 1. Defining Stage Responsibilities.
Illustration 2B: Phase 2. Planning Stage Responsibilities.
Responsibility Matrix
TasksProject Sponsor
(School Board)
Project Manager
(Randy Darling)
Project Designer
(Edward Moran)
Project Negotiator
(Matthew Sharp)
Project Analyst
(Matthew Caraway)
Project Accountant
(Loren Schwappach)
Planning StageDevelop Project Timeline Responsible Assist Support Support Assist
Research current administrative costs Assist Support Assist Support Responsible
Research current upkeep costs Assist Responsible Assist Support Support
Research current vehicle market values Responsible Assist Assist Support Support
Research best school bus (purchase / replacement) option Support Responsible Support Assist Assist
Research best SUV purchase option Support Support Responsible Assist Assist
Research best minivan (purchase / replacement) option Support Support Responsible Assist Assist
Research best Sedan (purchase / replacement) option Assist Support Support Responsible Assist
Research cost / contracting options for automotive mechanic Support Support Assist Assist Responsible
Plan Project Resources Responsible Assist Assist Support Support
Plan Project Risks Assist Assist Support Responsible Support
Responsibility
Responsibility Matrix
TasksProject Sponsor
(School Board)
Project Manager
(Randy Darling)
Project Designer
(Edward Moran)
Project Negotiator
(Matthew Sharp)
Project Analyst
(Matthew Caraway)
Project Accountant
(Loren Schwappach)
Defining StageDevelop Purpose Statement Responsible Support Assist Support Assist
Define Task Requirements Assist Assist Support Support Responsible
Create SOW Assist Responsible Support Assist Support
Create WBS Support Support Responsible Support Assist
Define Responsibilities Support Assist Assist Responsible Support
Create Responsibility Matrix Support Support Assist Assist Responsible
Define Project Ground Rules Responsible Assist Support Assist Support
Responsibility
Automotive Rejuvenation Project 22
Appendix
Illustration 2C: Phase 3. Executing Stage Responsibilities.
Responsibility Matrix
TasksProject Sponsor
(School Board)
Project Manager
(Randy Darling)
Project Designer
(Edward Moran)
Project Negotiator
(Matthew Sharp)
Project Analyst
(Matthew Caraway)
Project Accountant
(Loren Schwappach)
Automobile
Mechanic
Executing StageCritique / tune project draft (2nd) Assist Assist Assist Assist Responsible
Submit project draft (2nd) Responsible Assist Assist Assist Assist
Critique / tune project FINAL draft Assist Responsible Assist Assist Assist
Submit FINAL project plan for School Board consideration Approve Responsible Assist Assist Assist Assist
Advertise open position for school auto mechanic Responsible Assist
Screen applicant resumes Assist Responsible
Interview selected potential applicants Assist Responsible
Hire / Notify chosen applicant Assist Responsible
Renovate / prepare maintenance facilities for vehicle servicing Assist Responsible Assist Support Support
Prepare school grounds for replacement / transition Assist Responsible Assist Support Support
Sell old / defective school buses Support Support Responsible Assist
Purchase / Replace (new / used) school buses Support Support Responsible Assist
Purchase (new / used) SUV Support Support Assist Responsible
Sell old / defective minivans Support Support Responsible Assist
Purchase / replace (new / used) minivans Support Support Responsible Assist
Sell old Sedans Support Support Assist Responsible
Purchase new / replacement Sedans Support Support Assist Responsible
Sell old 5 ton truck Support Support Responsible Assist
Inspect / record condition of automotive fleet (AF) Assist Responsible
Purchase essential replacement / spare parts (AF) Assist Support Support Support Support Responsible
Perform critical vehicle maintenance (AF) Responsible
Perform essential / other vehicle maintenance (AF) Responsible
Perform routine vehicle maintenance (AF) Responsible
Inspect / record condition of maintenance utilities (MU) Assist Responsible
Purchase essential replacement / spare parts (MU) Assist Support Support Support Support Responsible
Inspect / Service / Repair 60KW Generator Responsible
Perform critical maintenance (MU) Responsible
Perform essential / other maintenance (MU) Responsible
Perform routine maintenance (MU) Responsible
Responsibility
Automotive Rejuvenation Project 23
Appendix
Illustration 3A:
Project Timeline Overview:
Illustration 3B:
Defining Phase Timeline:
Automotive Rejuvenation Project 24
Appendix
Illustration 3C:
Planning Phase Timeline:
Automotive Rejuvenation Project 25
Appendix
Illustration 3D:
Execution Phase Timeline:
Automotive Rejuvenation Project 26
Appendix
Illustration 4A:
Proposed Project Budget:
Automotive Rejuvenation Project 27
Appendix
Illustration 4B:
Budget Timeline Chart & Graph:
Activity / Event Gain / Loss Cost
Estimate Budget Required
Project Budget Allotted (Year 1) Loss $ 150,000.00 $ 150,000.00 N/A
Automotive Mechanic Pay Reserved Loss $ (43,800.00) $ 106,200.00 18-Dec-06
Renovate / prepare maintenance facilities for vehicle servicing Loss $ (3,500.00) $ 102,700.00 19-Dec-06
Prepare school grounds for replacement / transition Loss $ (600.00) $ 102,100.00 19-Dec-06
Sell old / defective school buses Gain $ 4,000.00 $ 106,100.00 28-Dec-06
Sell old / defective minivans Gain $ 36,000.00 $ 142,100.00 28-Dec-06
Sell old Sedans Gain $ 96,000.00 $ 238,100.00 28-Dec-06
Sell old 5 ton truck Gain $ 3,000.00 $ 241,100.00 28-Dec-06
Purchase / replace (new / used) school buses Loss $ (8,500.00) $ 232,600.00 28-Dec-06
Purchase (new / used) SUV Loss $ (52,000.00) $ 180,600.00 28-Dec-06
Purchase / replace (new / used) minivans Loss $ (60,000.00) $ 120,600.00 4-Jan-07
Purchase new / replacement Sedans Loss $ (90,000.00) $ 30,600.00 4-Jan-07
Purchase essential replacement / spare parts (MU) Loss $ (2,000.00) $ 28,600.00 29-Jan-07
Purchase essential replacement / spare parts (AF) Loss $ (10,000.00) $ 18,600.00 19-Feb-07
Inspect / Service / Repair 60KW Generator Loss $ (250.00) $ 18,350.00 20-Feb-07
Perform critical vehicle maintenance (AF) Loss $ (1,500.00) $ 16,850.00 2-Apr-07
Perform critical maintenance (MU) Loss $ (250.00) $ 16,600.00 2-Apr-07
Perform essential / other maintenance (MU) Loss $ (500.00) $ 16,100.00 14-May-07
Perform routine maintenance (MU) Loss $ (200.00) $ 15,900.00 14-May-07
Perform essential / other vehicle maintenance (AF) Loss $ (1,000.00) $ 14,900.00 25-Jun-07
Perform routine vehicle maintenance (AF) Loss $ (1,000.00) $ 13,900.00 25-Jun-07
Fleet Replacement Project Budget Available
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
N/A
19-D
ec-0
6
28-D
ec-0
6
28-D
ec-0
6
28-D
ec-0
6
4-Ja
n-07
29-Jan-
07
20-F
eb-0
7
2-Apr-0
7
14-M
ay-0
7
25-Jun-
07
Funds Available
Automotive Rejuvenation Project 28
Appendix
Illustration 5A:
Risk Severity Matrix:
5
Vehicle replacement
/ restoration exceeds
proposed project
timeline
Detection Difficulty
(1-5)4
4
Detection Difficulty
(1-5)
3Delayed approval by
school board
Vehicle replacement
/ restoration costs
exceeds proposed
project budget
Detection Difficulty
(1-5)5 3
2
Unable to hire
reliable vehicle
mechanic
Detection Difficulty
(1-5)2
1
Detection Difficulty
(1-5)
1 2 3 4 5
Impact
Lik
eli
ho
od
Green zone (minor risk)
Yellow zone (moderate risk)
Red zone (major risk)
Risk Severity Matrix
Automotive Rejuvenation Project 29
Appendix
Illustration 5B:
Risk Assessment & Response Matrix.
Risk Event Likelihood ImpactDetection
DifficultyRisk Value When
Vehicle replacement / restoration exceeds proposed project timeline 5 3 4 60 Execution Phase
Delayed approval by school board 3 3 5 45 Execution Phase
Vehicle replacement / restoration costs exceeds proposed project budget 3 5 3 45 Execution Phase
Unable to hire reliable vehicle mechanic 2 3 2 12 Execution Phase
Risk Assessment using (FMEA)
Risk Event Risk Value Response Contingency Plan Trigger Who is Responsible
Vehicle replacement / restoration exceeds
proposed project timeline60 Mitigate (Reduce)
replace / restore non-critical
vehicles during summer
break.
Deliverables fail to meet
deadlinesProject Manager
Delayed approval by school board 45 Retain (Not avoidable) None School board Project Manager
Vehicle replacement / restoration costs exceeds
proposed project budget45 Mitigate (Reduce)
Factor 10% of proposed
project buffer as P-risk bufferLow funds Project Accountant
Unable to hire reliable vehicle mechanic 12 Mitigate (Reduce)
Perform periodic quality
assurance checks of
mechanic to ensure services
meet performance
requirements
Vehicles fail to meet inspection /
restoration deadlines;
complaints
Project Analyst
Risk Response Matrix
Automotive Rejuvenation Project 30
School Board Project Sponsor
Randy Darling Project Manager
Edward Moran Project Designer
Matthew Sharp Project Negotiator
Matthew Caraway Project Analyst
Loren Schwappach Project Accountant
Appendix
Illustration 6A:
Organizational Chart
Automotive Rejuvenation Project 31
References
Kelley Blue Book (2006). Kelley Blue Book- New Car Pricing, Used Car Values. Retrieved
August 19, 2006, from http://www.kbb.com/
Vehix.com (2006). Vehix.com - Home. Retrieved August 25, 2006, from http://www.kbb.com/