Why Project Fails Ciba Vision Essay

1284 Words6 Pages
CIBA vision is a leading manufacturer of contact lenses. They are recently confronting organisational restructuring and launching new R&D initiative to develop products to prevent threat from J&J in the low-cost running business model. However, the project was not successful due to several reasons. In this report, the factors that caused the project failure will be discussed and analysed.

1. Poor administrative management

CIBA vision generally could not manage effectively with several projects, due to the poor quality of planning, implementation, failure in monitoring and controlling the processes.

1.1) Quality of planning / Implementation

Project failure can be prevented with good quality of planning based on
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In contrast, an autonomous team often shares one equal goal, rather than working on several projects.

3. Technical reasons

The capabilities of technologies, suppliers and tools are misestimated in a rapidly changing market.

3.1) Adaptation of new technology

CIBA Vision had difficulties in catching up with J&J after adapting the new DSM manufacturing technology, not only because of its higher required levels of process control, but also J&J had exclusive contracts from the best supplier. Therefore, it was inevitable for the company to spend additional costs in developing equipments and employing new workers in Atlanta factory. 3.2) Inadequate use of project management techniques

Project management techniques would include such thing as risk management and resource management(E, Axby, 2012). Risk management is a formal process that enables the identification, assessment, planning and management of risks (Merna and Al-Thani, 2011). CIBA Vision was not able to carry out the risk management effectively. They failed to recognise the potential risk and could not minimise its impact on success. For instance, risks on conventional contact lenses were identified while CIBA Vision had opportunity to licence new technology from Vistakon. It was not just losing the reputation and its potential customers, but losing 1st place on the dominant position.

In terms of the resource management, in the past, CIBA

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