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43. Wedley, W. C., and A. E. ). Ferrie. "Perceptual Differences and Effects of Managerial Partiel- _ pation on Project Implementation." Operations," Research, March 1978. ^

44. Westney, R. E„ "Paradigms for Planning Pro- ' ductive Projects," in P. C. Dinsmore, ed., The AMA Handbook of Project Management. New York AMACOM, 1993.

45. Wheelwright, S. C., and R. L. Blank. "Involving .f-Operating Managers in Planning Process Eval- .., uation." S loan Management Review, Summer 1979.

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Introduction

Heublein, Inc., develops, manufactures, and markets consumer .food and beverage products domestically and internationally. The business of Heublein, Inc., their sales revenue, and some of their better known products are shown in Figure 1. Highlights of Figure 1 include:

The four major businesses ("Groups") use different manufacturing plants, equipment, and processes to produce their products. In the Spirits Group large, continuous-process bottling plants are the rule; in the Food Service and Franchising Group, small fast food restaurants are the "manufacturing plants." The amount of spending for capital projects and support varies greatly among the Groups, as would be expected from the differences in the magnitude of sales revenues.

The engineering departments of the Groups have responsibility for operational planning and control of capital projects, a common feature of the Groups. However, the differences among the Groups are reflected in differences in the sizes of the engineering departments and their support services. Similarly, financial tracking support varies from full external support to self-maintained records.

Prior to the implementation of the Project Management and Control System (PM&C) described in this paper, the capital project process was chiefly concerned with the financial justification of the projects, as shown in Figure 2. Highlights include: A focus on cost-benefit analysis. Minimal emphasis on execution of the projects; no mechanism to assure that non-financial results were achieved.

In the late 1970s the following factors focused attention on the execution weaknesses of the process:

Some major projects went over budget. The need for optimal utilization of capital funds intensified since depreciation legislation was not keeping pace with the inflationary rise in costs.

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Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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