Project Management-Volkswagen Mexico Revs Up For Jetta Component Production”

Using the case study below, “Volkswagen Mexico Revs Up For Jetta Component Production”, consider the project management toolbox and the various project management tools. Discuss how these could be applied to support the achievement of strategic objectives in the case study.VOLKSWAGEN MEXICO REVS UP FOR JETTA COMPONENT PRODUCTIONPROJECT MANAGEMENT TECHNIQUES DELIVER RESULTS ON-TIME AND WITHIN BUDGETTo prepare for the production of its new Jetta, Volkswagen turned to a combination ofinternational plants and external suppliers to produce portions of the carís new motor andaxle assemblies.Volkswagen Mexico Components (VW Mexico) won a competitive bid to produce severalmotor and axle parts and assemblies, including the front axles and cornermoduleassemblies. The team at the VW Mexico plant had 21 months and a budget of $3.3 million(US) to design and install the assembly line and begin mass production of parts.BackgroundVW Mexico won the competitive bid for the component assembly project by proposing afixed cost for part production. This meant there would be no room for budget overruns. Anywork that exceeded the budget would be incurred as a loss.The front axle and cornermodule assembly production was overseen by a ProjectManagement Professional (PMPÆ) and the project was one of the first to be managed by theVW Mexico project office, which provided oversight for the entire portfolio of programs andprojects related to the production of Jetta components. The project manager and teamwould have to help develop and introduce internal processes that future teams would follow.In addition, a new supplier was selected for the project while the equipment procurementprocess was underway. This late addition resulted in a two month delay in the acquisition ofthe assembly lines.ChallengesThe VW Mexico team used standard management processes, as described in A Guide to theProject Management Body of Knowledge (PMBOKÆ Guide), to complete the assembly lineproject on-time and under budget.To oversee the complex project, VW Mexico established a project management office (PMO), which was responsible for monitoring and controlling the overall budget and schedules forthe Jetta-related projects. Once VW Mexico was awarded the assembly project, the PMOcoordinated with the finance department to obtain the resources necessary for the project. A project manager was selected and the manufacturing department manager was namedproject sponsor.The project manager, supported by a member of the planning department, integrated theplans submitted by various project participants and developed a work breakdown structure(WBS) and detailed the timeline for the overall project. The WBS served as a roadmap foreach phase of the project. While the manufacturing and quality departments were involvedthroughout the project, other departments could be consulted as necessary. The projectmanager was responsible for overseeing the WBS and involving other departments atappropriate times.SolutionsFrom initiation to closing, the project was divided into five phases with nine milestones overtwo years. The timeline included all work from procurement and fabrication of equipmentthrough assembly line testing and optimization. The final phase ended with the start of axleproduction and cornermodule assembly. In addition, a corresponding quality plan wasdeveloped using the standards of the components plant, which was integrated into thetimeline.The project manager held regular meetings with the core team to keep all departmentsinformed of progress. The assembly line supplier visited the VW Mexico plant on severaloccasions to review progress and provide assistance in addressing any issues. Additionaldepartments were involved when needed, and a project status report ó detailingperformance index to indicate progress relative to the overall timeline and budget ó wasdistributed monthly to all departments. Because of the strict budget adherencerequirements for the project, financial resources were blocked to avoid overruns.In each meeting, participants had the opportunity to request specific changes to the WBS. Discussions were documented for quality purposes and changes were approved by both theproject manager and project sponsor.To ensure the project would be completed on time, the project manager found creativeways to resolve timing issues created earlier in the process: To offset a two month delay inreceiving assembly line equipment, the manufacturing group conducted training while themaintenance group assisted the subcontractor with installation of the assembly lineequipment. By performing these two events simultaneously, the project manager preventedfuture delays that might cause the project to exceed the timeline.Throughout the project, the PMO maintained oversight for the overall budget. Other projectelements were monitored by individual members of the project team. For example, aplanning team member monitored activities related to the WBS and quality plan while aquality team member was responsible for ensuring that the parts being produced metcompany quality specifications.At the completion of each project phase, the project team analyzed the overall projectstatus and conducted risk assessments for the remaining phases. Any resulting changes tothe WBS were approved by the project manager and project sponsor.The end of the project was marked by the transition to full production mode. The officialproject closing took place 12 weeks after initial component production commenced.ResultsThe VW Mexico team achieved and in many cases exceeded the objectives for the assemblyset-up project. Specifically: The entire project was completed within the specified budget  The team met all delivery deadlines for each phase of testing Front axles and cornermodules produced on the plantís assembly lines continuedto meet Volkswagenís quality guidelinesThe Jetta component assembly line project team also developed a number of tools andpractices to serve as standards for future projects at the plant. Key learnings from theproject will enable future project teams to optimize communication between different areasof the VW Mexico plant and ensure the success of future projects.