Global Program & Project Management

Guilherme da Silva Costa

Heublein Project Management

and Control System
Case Analysis

Summary
Develops Manufactures, markets food products, beverages consumer markets, internationally,
domestically. These are the niches that Heublein, Inc. operates; however, the company faced several
shortcomings, for instance, a feedback mechanism to ensure that objectives were achieved resulting in
projects over budget. Thus, the company's focus was entirely on the financial justification, cost benefits
analysis, and minimal emphasis on execution of the projects. In order to solve these problems, Heublin
implemented a project planning focusing on the financial side of the company and eradicating over
budgets projects. An expert was hired, and as a solution, the plan mentioned above was applied using a
hierarchical numbering system for the work breakdown structure (WBS), and an array of responsibility on
individual systems and specific needs of each group.

Questions
1) Which of the project planning aids described in the chapter was used in
the case?
Work Breakdown Structure (WBS)
o Brings direct benefits in reducing rework and especially the improvement in
communication between people involved in the work.
Hierarchical numbering system for WBS
o Reveal the current hierarchical structure between these elements, recognize elements
of a WBS and inter relate them in any written context
Matrix of Responsibility (RACI)
o Assignment of roles and responsibilities within a process or a project in order to
avoid doubts and conflicts between team members.
Feedback loop
o In order to minimize errors and get quality processes

2) How did their Project Plan differ from the Project Charter described in
the chapter?
According to the case, the Heubleins project plan varies from organizations to organization, while the
Project Charter works with some different strategies as we can see below.

Heubleins Project Plan

Introduction (Executive Summary)
Objective
Project Structure
Costs
Network
Schedule
Resource Allocation
Accountability

Chapters Project Charter

Purpose (Introduction)
Objectives
Overview
Schedules
Resources
Personnel (Accountability)
Risk Management Plans
Evaluation Methods (Control
System)

Control System
Milestones

3) How did their WBS differ from that described in the chapter? How did
their accountability matrix differ?
WBS
There are different shapes/faces, to apply WBS. Nevertheless, there is no correct way to do this, no one
right approach, and this is the most difference between the chapter and the case, they are applying a
different structure/model; nonetheless, with the same idea and functions, for instance, reducing rework
and especially the improvement in communication between people involved in the work.
Accountability matrix x RACI
The company used a multilevel accountability system using approvers to the activities. To the RACI
matrix described in the chapter, we have these following roles: Responsible, Consult, Inform,
Accountable; however, the company as mentioned, used the multilevel accountability with the following
roles: Initiator/Responsible, Approval, and Provide Input.

4) Compare this project with the Project Portfolio Process in the reading
for Chapter 2. Was it successful?
In order to get a better result, Heublein adopted the strategy of just a project to handle the gaps (over
budget projects); however, the project from Pan Europa adopted the strategy of a new project to deal with
each problem, involving issues of cost and management. The technique adopted by the first company was
successful, to illustrate it, the company continues to adopt this strategy to other projects which have
defects.

5) What was wrong with the previous focus on cost- benefit? Does the
PM&C system still include a cost-benefit analysis?
The company faced a lot of gaps focusing in cost-benefit. Some of their major tasks still over budget, and
their focus had a little emphasis on execution phase with no feedback about what was achieved.
The PM&C includes the cost-benefit that we were talking about, and its focus is identify good projects
and get the customers satisfaction.

Recommendations
Use this current model in other process (a project to deal with all the gaps).
Document the process in order to improve it for each process.
Improve strategies of fund capital in order to maintain stable inflation in costs.

Lessons Learned
Use a hierarchical numbering system for the work breakdown structure (WBS).
Assignment of roles and responsibilities within a process or a project in order to avoid doubts and
conflicts between team members.
Focus on the process that your company is working in order to get unexpected gaps due to lack of
proper analysis.