Davis’2005 Article “The Petroleum Engineering Economics Evaluation Software Imperative”, Case Study Example

Based on the analysis of the case study written by Davis, “2005”, there were three concerns regarding the project management triangle: scope, cost and schedule. First, the scope of the project in the case study mentioned above initially seemed like an excellent idea. For instance, the owner and the Board were agreeing on the third model presented at their board meeting which used a three dimensional software reservoir package that predicts the flow of oil and gas at the wellhead, as well as forecasts revenues and profits. This model seemed key for the success and streamlining of their business; however, as soon as the meeting was over, concerns began to arise, such as the necessary staff, time and cost of it would take to ensure a quality final project. The entire scope of the project was therefore a concern. The second concern deals with cost. The large software project would cost a great deal of money and considering the company is small, this is a risk the company is taking by investing money into a new software program. In addition, there is the need to hire new staff since the current staff is not capable or educated for the particular field in regard to engineering software. Furthermore, in hiring the staff, the company is taking a hit with the deal made with the engineer programmer they hired. They agreed to share the rights of the new system with the engineer programmer consultant, which prevents the company from being able to sell the new software elsewhere. The third concern deals with the schedule of the project. Since the software is huge project, the risk of it not being completed in time also risks the competitive position of the company in the oil and gas industry.

There are risks associated with this project. In fact, it is possible to say that the project may become “troubled” in that the project is exceeding the acceptable levels of time, cost and scope. (ESI, 2006) In order for the company to ensure their project will succeed, the project planning for the new software system should be critically evaluated in order to balance the project management triangle.

References

Davis, CK. (2005). An Experimental Case Study in IT Project Management Planning: The

Petroleum Engineering Economics Evaluation Software Imperative. Journal of Cases on Information Technology. Jan-March. 7(1):1-21.

ESI. (2006). Saving Troubled Projects. Five Steps to Rapid Recovery. ESI International. An

ESI International White Paper. Retrieved on January 9, 2012 from: http://www.efcog.org/wg/pm/docs/PMWG_Wkshp_20071707/Saving%20Troubled%20Projects.pdf