Facility Startup and Project Closeout:

Facility Startup and Project Closeout: Woody Project

'Key Success Indicators' that could and should have been measured on completion. Rank them in order of priority for this project. Do not make a bulleted list. List and priority explanation needs to be in paragraph format.

Key success or performance indicators are quantifiable, measurable objectives that can be used to grade the success of a project in a specific fashion. In the case of the Woody 2000 project, the ultimate aim of the endeavor was to improve the productivity and sales of the company, to take advantage of a mini-boom in the construction industry (Wideman, 1993, Opportunity). Measuring the relative increase in company profits and productive output is therefore essential. The degree to which the new production facilities are primarily responsible for a resulting increase in sales is of similar significance. Success means that profits are not merely due to external environmental outcomes that would have improved sales, regardless of the implementation of Woody 2000. This KSI can be measured by comparing the output and sales figures of the current market environment to past years when demand and economic circumstances were at a similar level.

Product quality is another important measurement of a company's success. The degree to which the company's production facilities are able to produce output with a minimum of errors is always important to measure. Another measurement of how much the project has improved Woody's production facilities would be to compare the degree to which the project has given Woody a competitive advantage. Is Woody's market share improved, as a result of the expansion?

KSIs can also include less clearly definable factors, such as customer satisfaction. The degree to which customers feel the product has given them a good value can be measured through surveys and questionnaires and the number of return customers. Woody had always taken pride in customer loyalty. Finally, particularly given the importance of skilled craftsmanship for the business, measured levels of employee satisfaction and rates of employee attrition should also be taken into consideration.

Q2. Then report on how the startup was managed on the Woody project and what your opinion is regarding how you would have managed it. Give reasons why in your opinion the Woody 2000 project was not well run.

The Woody project was run exceedingly poorly. The most inexcusable aspects of the failures of Woody 2000 lie in the miscommunication regarding the management of the project. With no clear standard operating procedures or defined chain of command, the project met with near-continual impasses and delays. For example, two critical company leaders with important decision-making capabilities were on vacation, while the manufacturing drawings for equipment awaited approval. Delays resulted in spiraling costs (Wideman, 1993, Design). However, the outsourcing of the project, it could be argued, was already a 'disaster waiting to happen.' Expert Industrial Developers (EID) was offered an hourly rate, which essentially gave it a reward to work longer, given that this would generate more revenue for EID (versus a flat fee) (Wideman, 1993, Design). EID's employment of Schemers and Plotters (S&P) for the building and industrial design work further dissipated the control over the project and increased the risk of delays (Wideman, 1993, Design).