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Note: In order to protect the confidentiality of our clients, we have created a fictitious name for them. BACKGROUND This is a woman owned firm based in a major east coast metropolitan area that provides building rehab services to both commercial and governmental entities in its trade area. The major focus of the work has been in painting, although some light building repairs, such as dry wall and other finishing services have been performed. The firm has been in business for a number of years, originally operating as a sole proprietorship, and more recently as an LLC. Recently, with the addition of new personnel, a whole new direction has been established in which SEB has earned protected status as a minority owned small business and thereby access to contract set asides. This has resulted in an explosion of growth and an entirely new range of options for the firm. CURRENT SITUATION The firm has recently been awarded a major contract which will require significant staffing as well as project planning. It involves the painting of a major office building together with a school annex. The contract is being let by the Federal Government, which means that any temporary worker hired for this job must be fully documented, and that all work practices must be in full conformity with federal regulations. In addition, there are strict time lines and work progress milestones, which means that careful attention must be paid to detail adherence, not only to scheduled dates, but also to task performance and of course, meeting all set quality standards. OUR INVOLVEMENT We were asked to help establish a management structure and control/reporting system to enable contract performance as required. The first step was to establish a structure that would enable the firm to operate with clear lines of authority and to simultaneously develop a clear list of priorities to enable the firm to meet all contractually mandated deadlines and performance standards. The second was to assemble the requisite crew and establish task assignments and control systems. The third was to develop a series of control and reporting systems to ensure full compliance with all requirements of the federal contract and finally to ensure the firm’s ability to meet its obligations by a cash flow projection from the beginning to the end of the contract. We suggested that a new position of project manager was necessary to establish and coordinate all activities related to the new contract. A new organizational chart was produced that set up project management authority under the new manager with all contract personnel reporting to him. He in turn reported directly to the CEO. Given his expertise in large contract management, he was also able to quickly develop the priority list of all needed steps, supplies, and non human resources needed for the job. As a second step the PM was asked to assemble the crew needed for the job, to ensure their documented status for employment in a federal contract setting and to assign them specific tasks and timelines for accomplishment. Reporting standards were also set up at this time. Finally, a two phase planning and control system was set up under which all contractual issues were channeled through the PM to the CEO, with full reporting by task and date established. This phase of the planning and control system is called CD- PCS , (Contract Detail Planning Control System), and will be administered by the new PM (Project Manager) using MS Project software. Training in the use of Ms Project is being provided by ERMACORP. The second phase of the planning and control system is called CF- PCS , (Cash Flow Planning Control System), which consists of a detailed resume of projected expenditures for project related items, matched against same time project inflows (cash receipts). This detail is plotted both in MS Excel line-sheet format and also in graphic format for ease in viewing. Since this is a planning document, it must be matched against the actual cash flows reported both by outflows and inflows. A mission critical point is signaled when the actual cash flows indicate an available balance less or near the lower control limit set initially by management. ERMACORP is providing assistance in the design and implementation of this application. SUMMARY The CEO and Senior VP of SEB are working on the implementation of the program outlined above. The Project Manager has been hired, and has prepared his initial task planning and staffing for the job. The job is underway now on a limited start up basis, with full operation projected for April, 2009. The CD-PCS and CF-PCS planning and control systems are in place and operating to provide needed reporting and managerial control information. ERMACORP is providing support services for both applications. By Richard Walton, President, ERMACORP March 5, 2009
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Elizabeth Mauk - (301)
432-0079