Week 4 Case Study Essay Questions
docx
keyboard_arrow_up
School
American Military University *
*We aren’t endorsed by this school
Course
221
Subject
Medicine
Date
Jan 9, 2024
Type
docx
Pages
4
Uploaded by dahenson54
Week 4: Case Study Essay Questions
Millbrae Hander Medical Center Expansion: Case Study
The Millbrae Hander Medical Center has been an inner-city outpatient medical facility for 12 years and is in need of expansion to include more examination rooms as well as the addition of inpatient rooms. Millbrae Hander, founder of the medical center, passed away 5 years after the facility was opened, and the Millbrae Hander Foundation has succeeded in managing the operations of the medical center in his absence. This medical center has become a landmark facility within the community because it not only caters to the inner-city community but also has served as an educational platform for medical interns. The medical center, currently sized at 36,000 square feet, is suffering from overcrowding in the limitation of outpatient service only and lack of examination rooms and staff preparation areas.
The medical center has undergone two small remodeling endeavors to remedy this situation, but the increased demand for medical services continues to put pressure on the size of this much-needed medical facility.
City planning has authorized an expansion of 10,000 square feet to the existing facility and use of property and parking adjacent to the existing facility that the medical center currently owns. The medical center has a combination of two large donations and has secured low-interest financing to manage the remainder of the total financial responsibility. The director and staff of the medical facility are excited about the approval of this expansion and want to move forward with project planning.
An architectural firm has been identified to produce all building specifications, drawings, and documentation necessary for city permits to be drawn. A project management firm has been identified to manage the construction and move in phases for this project. Representatives from the Millbrae Hander Foundation, the executive director of the medical center, and key department staff supervisors have formed a panel of stakeholders to identify what is needed in the expansion of the medical center. A list of critical areas and a general project budget have been formulated and communicated to the architectural firm, and an overall project duration of ten months has been established for completion of the expansion project. At this point, the project manager only has financial information for the building and land at $525,000 and an initial budget of $725,000 for medical equipment and supplies. The stakeholder panel has issued an initial project budget of $1,300,000 and has communicated that only $25,000 emergency buffers are available. The stakeholder panel has also issued the requirements as to what will be included in the expansion, as listed here:
Week 4: Case Study Essay Questions
Based on your previous readings and this week’s assigned readings, apply the concepts and
principles to address the items below in respect to the case study (see the rubric below):
1.
How would the project manager use a project management plan in this process?
2.
Choose a budget development method and explain your selection.
3.
Establish a project budget baseline.
4.
Is budget contingency planning necessary?
5.
Identify other necessary items that do not have assigned costs, such as architect fees, permits, parking lot, landscaping and signage, furniture, and so on.
6.
What is meant by cost aggregation? Why is it applicable or not to this case?
7.
What is meant by managing the triple constraint? Why is it applicable or not to this case?
8.
Are there any cost constraints? If so, what might it be?
9.
What cost estimating technique would you use in developing the cost estimates for this project and why? 10. Explain the pros and cons of outsource contracting.
1.
The project manager would lay out the project scope in accordance with the requirements of the project and put it all together in a project plan, which would include a schedule, a budget, and the phases of the build.
2.
I would probably go with a cost aggregation method for the budget. The stakeholders have already set their expectations regarding the layout of the building and their priorities, so cost aggregation would fit the bill easily since it plans for every minute detail of the project. Because of that, I would use the cost aggregation method to give the most details as to how the budget would be utilized.
Week 4: Case Study Essay Questions
3.
With the urgent need for expansion, a two year goal should be set for project completion with half of the project completed by the end of each year. To do this, planned value would be used. The total budget is $1.3 million. Half of that is $650,000, which would be the expected expense total at the end of the first year. To further monitor the budget, the project manager will need to break the budget up into 12 monthly budgets, which is roughly $54,166. Any monthly overruns would be divided by the remainder of months and subtracted from those monthly budgets equally, ensuring the project doesn’t stray from the track it needs to be on.
4.
Budget contingency planning is necessary because there is always a need for a backup plan. More often than not, the primary plan doesn’t play out like it should have, and without a backup plan, you’re dead in the water until you figure something out, costing more time and money than necessary when a contingency could have been set during the planning phase.
5.
Labor fees, consulting fees, and traveling expenses are some examples of necessary items that aren’t attached to an assigned cost. Labor fees take care of the payroll during the project, including overtime if the project were to fall behind schedule. Consulting would take on any third-party contracts needed to keep the project on track. Traveling expenses may be necessary, but wouldn’t be likely, in the event that a partner of stakeholder would need to travel to address a specific part of the project in-person.
6.
Cost aggregation breaks everything in the budget down to the most minute detail. It’s beneficial to this project due to it having several items that need budget material laid aside specifically for them.
7.
Quality, timeliness, and cost are the three constraints addressed by the triple constraint. Finding the right balance among the three is crucial to any project, including this one. The expansion is severely overdue, but throwing any amount of money at the project to get it done quicker wouldn’t be beneficial in the fiscal sense, however there must be enough money put into it to ensure the project is done right the
first time.
8.
Yes, there are cost constraints. For one, there is an emergency buffer of only $25,000,
which is peanuts when talking about the expansion of a medical center. There’s also the fact that the project is extremely overdue, so it needs to get done as quickly as possible without blowing out the budget. If the sense of urgency is pushed down too hard on the project manager, he may push the contractors to cut corners, costing even more money to fix or rebuild down the line.
9.
The parametric estimate would best fit here, given that construction is the biggest similarity with other projects making it easier to draw comparisons on different cost factors within a given area.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Week 4: Case Study Essay Questions
10. Outsourcing contracting is beneficial because it reduces the need to keep a contracting staff on the payroll plus it gives you access to a larger group of talent to choose from while also lowering labor costs. It loses its luster when you consider the issues that could arise, such as product quality and issues with being able to communicate with the contractors, plus you have to give up some control of the project by outsourcing.