Chapter 13:Project Management in PracticeNucor s Approach to Termination by Addition R. Kimball The general manager can then supervise the activities of others. the conceptual team can select and manage the team members effectively. Most of the team member then can transfer into the permanent position for the new steel mill.Question-22: Why Nucor have thought they could build a new steel mill with one tenth the engineering resources it normally requires? Answer: Nucor is a highly entrepreneurial steel mill firm with a compound growth rate of 23% per year. To lead the team: The general manager has the knowledge how to lead the project team and how to motivate and how to solve the conflict. After that. . To manage the construction team. To become the largest producer for steel products. To use minimum technical expert. To create a general manager: To build a new plant it has to select a general manager from the conceptual team. To achieve the output with minimum resources. To manage the construction team: By building a new steel mill it can create a conceptual team with managers. Use of own construction management: To build a new steel mill Nucor can use its construction management. To reduce the training cost. To create a general manager. Before going to start the new project the reason why Nucor have thought they could build a new steel mill with one tenth the engineering resources it normally requires are discussed below: 1) 2) 3) 4) 5) 6) 7) 8) Use of own construction management. To lead the team. To achieve the output with minimum resources: To build the plant it only uses its own technical experts and managers to achieve the goal. management efficiency and most importantly because of its technical staffs. . To reduce the training cost: By building the new plant it can reduce its training cost or supervision cost since it has experienced managers and technical staffs who can share their knowledge and ideas with others. To use minimum technical expert: To build the new plant it can use the minimum technical experts. because these experts have enough knowledge to make the project successful. To become the largest producer for steel products: After building the plant it can become the largest producer because of its quality. The above seasons influence Nucor to build the new plant with one-tenth the engineering resources it normally requires. it may be terminated by institutionalizing it as a formal part of the parent organization. when a project is a major success. Termination by addition indicates. Nucor terminated its old project to move into the largest flat rolled steel market. To reduce the engineering cost and labor cost Nucor transformed its old into new project to make the proper use of engineering resources. transform the old project into new department.Question-23: What characteristics of project termination made it a termination by addition? Answer: Termination by addition: Most projects are carried out by the project team for use in the parent organization. Termination by addition refers. Characteristics of Nucor project termination: Some characteristics made the project termination of Nucor as a termination by addition. The above circumstances of the project termination of Nucor made it a termination by addition. . property and equipment from old project to new steel mill project. The metamorphosis from old to new project was accompanied by administrative practices that conformed that confirmed the standard procedure. Termination by addition means ending the old project but open the door for the old project by a new form. Such as: Nucor terminated its old project by institutionalizing it as a new steel mill Nucor transformed the project personnel. a termination by integration. which would again have been a termination by addition.Question-24: What other ways could Nucor has terminated this project? What terms would you give these approaches? Answer: From the above answers we can understand that the Nucor Company terminate the steel mill project through termination by addition as they created a new division or a separate. wholly owned business. . Another option would have been to keep the plant in the existing organization but distribute the project team among other parts of the firm. Chapter 13:Project Management in Practice Terminating the Superconducting Super Collider Project B. Menon . Baker and R. The project manager did not want to close the project initially because it was politically dangerous to admit that it is going to fail.Question-25: Which of the various forms of termination was this? Answer: Various forms of termination of the project: Political termination: Political termination is the result of conflict between managers. . Texas was the only state that would gain directly from the project and other nations suffer from the politics. The project was failed / terminated because it suffered from identity crisis. In the case we see political conflict was a problem to continue the project. Cross-cultural termination: The project was a multinational project. The above various forms of termination are the main reasons why the project was terminated. Termination by starvation: Termination by starvation means terminating the project based on budget without actually killing the project. project members. The benefit of the project was unclear to the societies of various nations. In this case we see that the project was sacrificed when a $4 million budget deficit appeared. and project parties. Because of the above reasons the project termination decision is taken. . 4) The project suffers from political support.Question-26: How the termination decision is made? Answer: There are some reasons why the project is terminated. 3) The project team is not enthusiastic about success. 8) The project suffers from careful planning. 5) The project suffers from identity crisis. 9) Though it is a multinational project it does not support all the nations instead of Texas State. it has no fixed identity. The termination decision is made by using the following factors: 1) The project is not consistent with the goal because the benefits of the project are not clear. 2) The scope of the project is not consistent with the financial strength because it requires huge investment. 7) The project suffers from insufficient senior management support. 6) The project has budget deficiency.