Problems of Woody 2000 Project The Woody 2000 Project enumerated in the case study had a lot of deficiencies which made the project not a successful one. The major issue is the fact that Project Management methodology was not in any way followed and so from inception, the project was bound to fail hence, throughout the project lifecycle it was from one problem to another. A Project Manager would have initiated the project properly and that would have eliminated most the problems that were to come up later in the project. The project from inception had no plan only long (management) meetings were held and decisions reached to embark on the project hoping to be able to be part of the commercial boom in the area the Woody’s is sited. However, going through the case study, the things that went wrong with the project are enormous and could be seen as one reads through the document. Interestingly enough, these are avoidable issues listed below are some of the deficiencies of the Woody 2000 project:
Initial appointment of a project manager was not well conceived in that VP Finance and Administration (Moneysworth) had no project management ideas. The project lacked the presence of PM methodology and as such the contractor (EID) to handle the project was handpicked without any criteria. It is not enough that the contractor has been delivering projects in town. He did follow due process in his procurement activities (engagement of) Proper estimates were not worked out for the projects; instead a Cash flow process was engaged. There was no basis for it. There was the inclusion of so many uncertainties in plan by EID which were never discussed with the client. Adoption of hourly rate contract without spelling out how this was to be monitored. A later appointment of Leadbetter another in experienced project manager was another wrong effort in the wrong direction In the asking of Woody’s management to take over procurement of production train directly amounted to a change in scope without an analysis to consider how it will affect the project. Another change in scope by Miles Faster (in the increase of production train) was another blunder that should have been avoided. In fact this action alone lead to a lot of losses in terms of time, and resources. The change in the production train above had a ripple effect leading to: - A re-writing of the software programme so many times - In ability to deliver project as at when due - A shorter length of production line constructed - Increase in production trains leads to increase in building length by 5ft (rendering building designs obsolete) and foundation already cast Design documents (drawings, specifications, bill of quantities etc.) were not reviewed/approved by Woody’s management There was the issue of Faster & Leadbetter going on leave without a properly handing over or delegating someone to act in their place. This action had its own negative effect on the project: 0
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The keeping away of the design documents by junior clerk who obviously did not know the importance of the documents Non discussion of the specifications for the installations at the dust free paint shop There was the issue of strained relations on site due to poor management by an inexperienced officer Waste disposal management plan for paint was not put in place There was Project over run of over 6 months due to forgoing above There was no close out plan in place – acceptance, inspection, testing etc Poor management led to a two week delay in utility installation With loss of power and other utility on site there was several weeks of production loss with its cumulative effect: - Customer delivery dates missed - Cancellation of contracts and orders for millwork - Depletion of the store of finished goods - Loss of sales opportunities Loss of funds due to direct charges to Woody’s account Project over run budget exhausted at 85% completion Money had to be borrowed at 2-1/2% There was no communication management plan in place There were also no documentation done in the company
Having taken note of the above problems, on the project, I have come up with a “Project Management Plan” as a way to run this project from inception such that the kind of problems as enumerated above associated with the Woody 2000 will be avoided and the project delivered within the time frame, scope and resources.
1
Table of Contents 1.0 Introduction ................................................................................................... 4 1.1 Project Indetification........................................................................................ 4 1.2 Document Purpose ......................................................................................... 5 2.0 Project Overview ........................................................................................... 6 2.1 Background ..................................................................................................... 6 2.2 Project Objective ............................................................................................. 6 2.3 Project Scope ................................................................................................. 6 2.3.1 Design ............................................................................................................. 6 2.3.2 General / Preliminary Works ........................................................................... 6 2.3.3 Substructure Works ........................................................................................ 6 2.3.4 Superstructure Works ..................................................................................... 7 2.3.5 External Works................................................................................................ 7 2.4 Project Scope Exclusion ................................................................................. 7 2.5 Project Deliverable ......................................................................................... 7 2.6 Project Success Criteria .................................................................................. 8 2.7 Project Constraint ........................................................................................... 8 2.8 Project Completion.......................................................................................... 8 3.0 Approach .............................................................................................................. 9 3.1 Project Work Method ............................................................................................. 9 3.1.1 Design Works.................................................................................................. 9 3.1.2 General/ Preliminary Works ............................................................................ 9 4.0 Assumptions ..................................................................................................... 11 5.0 Project Management Plan ................................................................................. 12 5.1 Project Schedule ................................................................................................. 12 5.1.1 Work Breakdown Structure of Key Activities and Tasks ............................... 12 5.1.2 Gantt Chart .................................................................................................. 13 5.1.3 Critical Path .................................................................................................. 14 5.1.4 Schedule of Milestones .................................................................................... 14 5.2 Cost Management ............................................................................................... 16 5.2.1 Milestone Payment Arrangement ..................................................................... 16 5.2.2 Cost Estimate ................................................................................................... 17 5.3 Project Team ....................................................................................................... 17 5.3.1 Roles and Responsibilities ............................................................................ 18 5.4 Communication Management.............................................................................. 20 5.4.1 Stakeholder Analysis .................................................................................... 20 5.4.2 Communication Plan ..................................................................................... 24 5.5 Risk and Issue Management ............................................................................... 24 Risk No 1 ................................................................................................................. 25 Risk No 2 ................................................................................................................. 25 Risk No 3 ................................................................................................................. 26 Risk No 4 ................................................................................................................. 26 Risk No 5 ................................................................................................................. 26 5.6 Change Control Management ............................................................................. 27 5.7 Project Quality Management ............................................................................... 28 5.8 HSE Management ............................................................................................... 29 5.8.1 HSE Standard ............................................................................................... 30 2
5.9 Escalation Procedures........................................................................................ 32 6.0 Document Sign Off ............................................................................................ 33 7.0 Conclusion and Reccomendation .................................................................... 36 References ................................................................................................................... 36
3
1.0
Introduction 1.1 Project Identification
Project Name Woody 2000 Project.
Project Number CWC/002/1000
Project Type Building
Project Location South-Western B C.
Planned Start Date 20 March 2012
Planned Finish Date 20 September 2013
Project Sponsor Ron Carpenter (Chairman CEO)
Project Manager
Contractor
Project Supervising Consultant
Miles Faster
4
1.2
Document Purpose The purpose of this document is to define the management approach to be used by the Project team to deliver the intended project scope during the implementation phase of Woody 2000 Project at South-Western BC The Project Implementation Plan serves as a guide to the project team throughout the duration of the project. It contains a snapshot of the project, and refers to other documentation in use for the project. It outlines the project’s objectives, parties involved in the project planning and execution, the overall timeframe for the project as well as the delivery strategy for the project. This implementation plan is a living document and must be updated when substantive changes are made to the scope of the project.
5
2.0 2.1
Project Overview Background In line with its management decision to increase her production capacity, and then position herself well enough to be part of the construction boom in South western BC, a project code named “Woody 2000” is set up by The Custom Woodworking Company. The company has been on its facility in BC since its establishment in 1954 and has been doing well in the delivery of its goods and services to its clients. However, with an increase in its client base and the subsequent additions to its original works of custom built furniture and a brighter future in the furniture business, the company has decided on an expansion programme. The said expansion programme - The Woody 2000 project will see to the increase in the floor area by an additional 25% floor space, construction of a dust free paint and finishing shop complete with additional compressor, installation of a new air conditioning system, and installation of an automated production line. A budget of $17 million has graciously been approved for all the works to be executed in this project.
2.2
Project Objective The objectives of this project are: a. To construct additional building b. To install a new air conditioning system. c. To construct a dust free paint and finishing shop complete with additional compressor capacity d. To develop and install a computerized production train.
2.3
Project Scope The scope of work to achieve the objectives as stated above includes:a. Design Studies leading to production of Preliminary & Final Design documents. b. Construction of Substructure elements c. Construction of superstructure elements d. External Works The scope of work for the Woody 2000 Project shall be subdivided into the following work packages: i. ii. iii. iv. v.
Design General/Preliminary Works Substructure Superstructure External Works 2.3.1 Design o Design work for the additional building 6
o Design of the new air conditioning system o Design for the computerization of production train, o Design of the mechanical aspect.
2.4
2.3.2 o o o
General / Preliminary Works Provision of living accommodation for Supervising Consultant Procurement & mobilization of project vehicle Procurement of other Site Equipment
2.3.3 o o o o o o
Substructure Works Excavation and Earthworks Casting of plain in-situ concrete De-watering (if necessary) Casting of vibrated reinforced in-situ concrete Formwork construction Construction of flower pot
2.3.4 o o o o o o o o o o
Superstructure Works Construction of frames (columns and beams) Upper floor slabs and staircases Roof Walls Doors Windows Finishings Fixed Fittings & Furnishing Decorations Services.
2.3.5 o o o o o o
External Works Grassing and Planting Drainage Construction Septic Tanks and Soakaway Walkways and Sideways Treatment Plant External Electrification and Fire Fighting System
Project Scope Exclusions The scope of this project is as defined above and should be managed as such throughout the duration of the project. Any change in scope should be requested and approved according to the change control process
2.5
Project Deliverables A Building of floor size ….. Installed air conditioning system 7
A dust free paint and finishing shop complete with compressor A computerized production train 2.6
Project Success Criteria The success criteria for this project are:o The project must be executed within schedule 18 months (72 weeks) o It must be executed within budget ($17m) o It must be executed in compliance with design specifications o The project must also be executed in compliance with HSE and Project Management Plan
2.7
2.8
Project Constraints o Response time to technical and commercial issues. o Community interference Project Completion This project is scheduled to be completed in September 2013
8
3.0
Approach
This section summarizes the overall project implementation approach as proposed by the contractor in executing the project. 3.1
Project Work Method 3.1.1 Design Works Design works shall be carried out in two stages in accordance with the guidelines issued as attached to the letter of commission. Stage I Preliminary Design Stage which shall be reviewed after submission with all the alternative options as submitted reviewed with the client and thereafter approval will be given for the consultant to proceed to the Final Design Stage in accordance with the guideline already issued to the Consultant. 3.1.2 General/ Preliminary Works 3.1.2.1
Office Accommodation for Project Team
An office shall be provided within the existing office facility and shall have installed air conditioners and power outlet for PC. A generator or solar panel shall be provided to supply electricity to the office in case of power failure. Other office furniture like chairs and tables shall be provided. Work elements under the following work units are as follows:
3.1.2.2 Site preparation works/ project sign boards Work elements under the following work units are as follows: i. Land Marks for equipment parking lots ii. Demarcations iii. Clearing iv. Signalling/Safety warning v. Security Posts Adequate arrangement shall be made for safety signals and muster points during this process for adequate emergency evacuation in the event of crisis. 3.1.2.3 Substructure work Work elements under this comprise: i Excavation and Earthworks ii Casting of plain in-situ concrete iii De-watering (if necessary) iv Casting of vibrated reinforced in-situ concrete v Formwork construction vi Construction of flower pot 9
3.1.2.4 Superstructure Works Work elements under this unit comprise: Construction of frames (columns and beams) Construction of upper floor slabs and staircases Construction of roof members and covering including roof beams and gutter slab, and barrel vault slab. Erection of block walls including construction of lintels Installation of doors and windows Finishes on - Walls - Floors - Sofit of upper floor slabs Installation of suspended ceiling Fixed fitting and furnishing Decorations Services Rain water installations Sanitary installations Cold water installations Fire fighting installations Ventilations installations Cable and conduits Power Installation Final circuit Lighting Installations Earthing and Lightning Protection Installations Installation of production machine
3.1.2.4 External Works Work elements under this unit comprise Grassing and Planting Construction of drainage Construction of septic tanks and soakaway pits Construction of walkways and sideways Borehole and water supply Water treatment plant External Electrification
10
4.0
Assumptions
Community issues will be settled. Force majeure situations will be addressed.
11
5.0
Project Management Plan 5.1
Project Schedule
Schedule Management involves defining, managing and maintaining the project schedule and understanding and reporting the actual Project progress against planned project progress. It consists of performing standardized reviews and analysis of project work plans, major milestones and major deliverables. 5.1.1 Work Breakdown Structure of Key Activities and Tasks The work packages (WP) and work units (WU) for the project are shown below WP/ WU
Description
1 Design Works 1.1 Design of additional building Design of new air-conditioning 1.2 system Design of Computerisation of 1.3 Production train 1.4 Mechanical Designs 2 General/Preliminary Works Provision of office 2.1 accommodation for Project Team 2.2 Site Preparations Procurement & mobilization of 2.3 project Procurement of other Site 2.4 Equipment 3.0 Substructure 3.1 Excavation and Earthworks 3.2 Casting of plain in-situ concrete Casting of vibrated reinforced in3.3 situ concrete 3.4 Formwork construction 4 Superstructure Works Formwork for first floor 4.1 beams/slab Reinforcement for first floor 4.2 beams/slab Formwork to column 4.5 reinforcement and casting 4.6 "Fixing of pvc pipes, casting of 12
Duration (Weeks)
11 11 11 11
2 3 8 8
6 6 7 7
7 4 4
4
Human Resource Schedule
Equipment Schedule
first floor beams/slab 4.7 Block works 4.8 Mechanical and Electrical works Iron work/extension columns to roof level 4.10 Formwork to columns/Leveling 4.11 Casting of columns to roof level 4.12 Doors and windows 4.9
7 7 6 2 2 4
4.13 Formwork for roof beams 4.14 Reinforcement for roof beams
2
4.15 Casting of roof beams
2
4.16 Construction of roof members
2
4.17 4.18 4.19 4.20 4.21 5
3 3 3 2 2
5.1 5.2 5.3 6 6.1 6.2
Roof covering Ceiling Finishes Fixed Fittings and furnishing Decorations External Works Grassing and Planting (Landscaping) Drainage, septic tank and soakaway pits Borehole and water supply Closure Snagging Cleaning and Demobilization
2
3 3 2 1 1
5.1.2 Gantt Chart (See Attachment “Woody 2000 Project”) 5.1.3 Critical Path This is the longest path through the project, and shows the sequence of activities that determines the duration of the project. (Wysocki 2009 p. 172) The critical activities for this project are as follow: WP/WU 1.0 1.1 1.2 1.3 1.4
Description Design Works Design of additional building Design of new air-conditioning system Design of Computerisation of Production train Mechanical Designs 13
Duration (Weeks) 11 11 11 11
WP: 2.00 2.1 2.2 2.3 WP: 2.00 WU3.1 3.3 3.4 WP: 4.0 WU4.7 4.9 4.12 4.13 4.14 4.15 4.16 4.17 4.19 4.20 4.21 6.1 6.2
General / Preliminary Provision of office accommodation for Project Team Site Preparations Procurement & mobilization of project Substructure Works Excavation and Earthworks Casting of plain in-situ concrete Formwork construction Superstructure Works Block works Iron work/extension columns to roof level Doors and Windows Formwork for roof beams Reinforcement for roof beams Casting of roof beams Construction of roof members Roof covering Finishes Fixed Fittings and furnishing Decorations Closure Snagging Cleaning and Demobilization
2 3 8 6 7 7 6 2 4 2 2 2 2 4 3 2 2 1 1
5.1.4 Schedule of Milestones The milestone payment shall be based on the achievement of physical structures on site. Physical structures mean structures that cannot be easily removed. Milestones / Date
Milestone 1 20 April 2012
Milestone 2 4 June 2012
Milestone 3 13 September 2012
Milestone 4 3 January. 2014
Milestone 5 14 March 2014
Activities
Preliminary Design Works $1,800,000.00
Final Design Works $2,200,000.00
Mobilization up to site preparations $2,320,000
Cumulative permanent work on site up to $2,940,000.00
Cumulative permanent work on site up to $3,700,000.00
Milestone components.
Submission of Prelim Design Documents
Submission of Final Design Documents
Site Preparations
Substructure Works
100% Finishes, and External Works.
Milestones / Date
Milestone 6 9 May 2014
Milestone 7 25 July 2014
Milestone 8 30 September 2014
Activities
Cumulative permanent work on site up to
Cumulative permanent work on site up to
Cumulative permanent work on site up to $3,540,000.00
14
Milestone components.
$1,358,000.00 Works up to roof covering
$2,200,000.00 Completion of construction works
All final works
15
5.2
Cost Management Cost management is considered essential for the smooth running of the project. It is largely the Project Manager’s responsibility to ensure that the project does not suffer the negative effect of cost overruns. This can be done by controlling the cost of work packages using the baseline estimates. On the part of the client, it is equally relevant to ensure that all contractual obligations as regards milestone payments and schedule of payments are met. For adequate control, all milestone payments should be preceded by establishing that work done is in agreement with the agreed baselines. 5.2.1 Milestone Payment Arrangement 5.2.1.1 First Milestone Payment The first milestone payment will come up after a minimum of 45% of the Design works has been completed and this will lead to a total of $1,800,000.00 5.2.1.2 Second Milestone Payment With the final completion of the Design Stage, the balance cost of Design will be released to the Consultant as interim Payment Certificate No 2 and it will be for $2,200,000.00 5.2.1.3 Third Milestone Payment Third milestone interim certificate will be as be raised. Based on projection, this period is fixed at 13 September 2012 when it is expected that this would be achieved $2,320,000.00
5.2.1.4
Fourth Milestone Payment
Based on projection, this period is fixed at 3 January 2013 when it is expected additional permanent works would have been delivered. Hence a certificate of payment for the sum of $2,940,000 is raised
5.2.1.5
Fifth Milestone Payment
Based on projection, this period is fixed at 14 March, 2013 when additional permanent works would have delivered A certificate of $3,700,000.00 work on the project will have been delivered. 16
5.2.1.6
Sixth Milestone Payment
Based on projection, this period is fixed at 9 May, 2013 when additional permanent works would have delivered A certificate of $1,358,000.00 work on the project will have been delivered.
5.2.1.7 Seventh Payment Based on projection, this period is fixed at 25 July, 2013 when additional permanent works would have delivered A certificate of $2,200,000.00 work on the project will have been delivered. 5.2.1.8 Milestone Eight Payment Based on projection, this period is fixed at 30 September, 2013 when additional permanent works would have delivered A certificate of $3,540,000.00 work on the project will have been delivered. 5.2.2 Cost Estimate The Cost Estimate for this project will be broken down into the following work packages: 1. 2. 3. 4. 5.
5.3
Design Works General / Preliminary Works Substructure Works Superstructure Works External Works
Project Team S/N Role
Position
Name
Participation
1
Project Sponsor
Ron Carpenter
Part Time
2 3
Project Manager Project Quantity Surveyor Project Consultant Project Contractor Community and Rural Development
Chief Executive Officer VP Production VP Finance & Admin Supervising Consultant Contractor
Miles Faster Spencer Moneysworth Algoba Alufoje & Partners Roccani Ventures Ltd
Part Time Part Time
Team Member
Nil
3 4 5
17
Full Time Full Time
6 7
Representative Project Engineer Project Engineer
Team Member Team Member
Engr. Agi, Isemele Engr. Olovie Emem
Part Time Part Time
. Ron Carpenter
(Sponsor) Emelia Carpenter President
Miles Faster (Project Manager)
Spencer . Moneysworth
Engr. Olovie Charles (Site Engineer)
Hope Anama
Algoba Alofoje
(Architect)
Adukeh & Partners )
(Quantity Surveyor)
Contractor
5.3.1 Roles and Responsibilities 5.3.1.1
Project Sponsor (Part Time)
Sets out strategic direction for the execution of the project Review project financial information Review project resourcing status Review escalated change requests Approve Emergency Change Requests Secure additional project funding as needed 18
Agi, Osimele (Civil Engineer)
5.3.1.2
Project Manager (Part Time)
5.3.1.3
Coordinate the Project planning activities (preparation of Execution Plan) Review all project reports for management’s attention Take decisions on projects based on management’s approval Give high level direction to the project team Ensure deliverables are produced and approved on time Ensure project is delivered with quality Ensure project is delivered within allotted time and budget Supervise and monitor the Consultant Coordination of the efforts of the project team Participate in Management reviews Preparation of periodic reports to Woody’s Management Ensure that all project management framework components are tracked. Represent team at the periodic project peer review meeting
Project Supervising Consultant
5.3.1.4
Ensure stakeholders’ expectations are being managed and achieved Resolve conflicts that extend beyond the project manager’s control Constitute (or appoints a representative in the) change control board Provide formal acceptance of the project deliverables
Ensure that the construction activities meet specifications Monitor Project activities to ensure the project schedule, cost and quality are met Prepare the agenda, notice of meeting (if required) and minutes of all Project Progress Meetings. Enforce project document control measures on all project documentation such as drawings (design and as-built), specifications, procedure etc. Contributes to HSE reviews Prepare a monthly progress reports to Woody’s Management
Project Contractor
Execute the project according to design specifications, agreed work plan and work method Prepare weekly site reports Participate in community relations activities 19
5.4 Communication Management Meetings shall be held between the various stakeholders as necessary. All communication from the Contractor to the Project Manager shall be routed through the Supervising Consultant except when the purpose of communication is related to a conflict between the Contractor and the Consultant. Channel of communication shall include: i. Meetings - Face to Face or Telephone Calls ii. Reports / Minutes of Meetings delivered in hard copy or soft copy (Email) 5.4.1 Stakeholder Analysis The Stakeholders for the project are: i. Chairman & CEO, Woody Ron Carpenter – The Project Sponsor. ii. President Emilia Carpenter iii. Functional Heads - (Exe VP , VP Production, VP Fin & Admin, VP Personnel, VP Sales) iv. Director John Carpenter v. Project Management Team Members – vi. BC Community – Host Community. Other key players in the communication chain include: i. Supervising Consultant ii. Contractor Project Sponsor – Chairman & CEO
5.4.1.1 S/N
Needs/Requirements
Frequency
1.
Monthly Performance/Progress Report
Monthly
2.
Project Manager’s Report
Monthly
Hand Delivery / Email
3
Risk / Issue Communication
As Needed
Hand Delivery / Email / Verbal Discussion
20
Channel of delivery Hand Delivery / Email
Remarks This is mandatory and also informational This is mandatory and also informational This report is on as needed basis
5.4.1.1
Functional Heads
S/N
Needs/Requirements
Frequency
1.
Monthly Performance/Progress Report Risk / Issue Communication
Monthly
2
5.4.1.2
Channel of delivery Hand Delivery / Email
As Needed
Hand Delivery / Email / Verbal Discussion
Channel of delivery Hand Delivery / Email
Remarks This is mandatory and also informational This report is on as needed basis
Project Manager
S/N
Needs/Requirements
Frequency
1.
Monthly Performance/Progress Report
Monthly
2.
Project Manager’s Report
Monthly
Hand Delivery / Email
3
Project Management Team Meeting
Monthly
4
Risk / Issue Communication
As Needed
5
Weekly Site Meeting
Weekly
Minutes of Meeting by Hand Delivery / Email Hand Delivery / Email / Verbal Discussion Minutes of Meeting by Hand Delivery / Email
5.4.1.3
Remarks This is mandatory and also informational This is mandatory and also informational This is mandatory and also informational This report is on as needed basis This is informational
Project Team Members
S/N
Needs/Requirements
Frequency
1
Risk / Issue Communication
As Needed
2
Project Management Team Meeting
Monthly
21
Channel of delivery Hand Delivery / Email / Verbal Discussion Minutes of Meeting by
Remarks This report is on as needed basis This is mandatory and
3
5.4.1.4
Risk / Issue Communication
As Needed
Hand Delivery / Email Hand Delivery / Email / Verbal Discussion
also informational This report is on as needed basis
Channel of delivery Verbal Discussion, Minutes of Meeting Distributed
Remarks
BC Community
S/N
Needs/Requirements
Frequency
1
Community Meeting
At the start of project, Quarterly
22
The meeting is mandatory to establish relationship and agreements with the host community
5.4.2 Communication Plan (See attachment)
23
5.5 Risk and Issue Management Risk could be defined as the exposure to loss, gain, or the probability of occurrence of loss/gain multiplied by its respective magnitude. Jaafari A., (2001, p. 89) Risk Identification: A number of possible risks could be associated with this building project. They could be classified under the following: Technical, Operational, Quality, HSE (Health Security & Environment), Financial, Community Related, Project Management or Organizational. A few of these risks shall be highlighted here. NDDC PIP (2009. P 30) Key to Risk Analysis
Risk Description– describes/elaborates on the risk
Risk Classification – This classifies the risks under different categories i.e. technical, operational, quality, HSE, financial, community related, project management or organizational
Severity of Impact - This is an estimate of the overall scale of the impact following an occurrence of each risk. This is rated on the following scale: 5 Critical impact – threatens success of the overall project 4 High impact – significant disruption to overall project schedule, cost, and products over the medium and long terms 3 Medium impact – progress disrupted with large extensions to schedule and cost, across short and medium terms 2 Moderate impact – progress disrupted with manageable extensions to short-term schedule and cost 1 Marginal impact – slight exposure
Probability of Occurrence - This is an assessment of the probability of an occurrence of the risk, given the responses identified, and the other factors or risks on which it is dependent. This is rated on the following scale: 5 4 3 2 1
Extremely likely occurrence Very probable occurrence Probable occurrence Unlikely occurrence Highly improbable occurrence
Risk Exposure (Rank) – Exposure or Rank is determined by multiplying the impact with the probability of occurrence. The higher the resulting number, the greater the risk is.
Low (1 – 4) Medium (5-10) 24
High (> 10) 5.5.1 Risk Mitigation This is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold. PMBOK (2008 p. 447)
Risk Mitigation – Enter the mitigation activities/strategy that can be accomplished to reduce the probability or impact of the risk.
Contingency plan – In the event that the risk could not be avoided what should be done to remedy the situation if it occurs?
Risk owner – Person who is responsible for the mitigation and tracking of the risk
Risk No 1 Risk Description Risk Classification
Late Purchase and delivery of material resources
Risk Assessment
Severity of impact
Operational
5
Probability of occurrence 4
Risk exposure/priority High
Risk 1. Purchase material resources from local sources Mitigation 2. Purchase material resources in bulk 3. Payment of Contractors as at when due 4. Secure long term steady supplier relationship and develop strategic partnership with key supplier. 5. Establish direct business relationship with key suppliers obtaining steady-going supply Contingency plan Risk Owner Contractor, Project Manager
Risk No 2 Risk Description Risk Classification
Adverse weather
Risk Assessment
Severity of impact
Probability of occurrence
Risk exposure/priority
2
2
Low
Environmental
Risk 1. We shall make provision for adverse weather condition Mitigation 2. Proper planning of schedule to ensure that materials needed are on site at the appropriate time
25
Contingency1. Advice the Contractor to carry out other activities when there is an plan adverse weather condition
Risk Owner
Project Manager, Contractor,
Risk No 3 Risk Description Risk Classification
Theft of construction materials on site
Risk Assessment
Severity of impact
Operational Probability of occurrence 4
2
Risk exposure/priority Medium
Risk 1. Once the site is handed over to the Contractor, he becomes completely Mitigation responsible for the security of all construction materials on site. The Contractor should therefore be advised to provide adequate security for both human and material resources 2. Employ security to guard plants and equipment Contingency1. Employ security men to guard project site plan 2. Ask Contractor to replace stolen material Risk Owner
Contractor, Consultant
No 4: Risk Description
Delays as a result of injuries
Risk Classification
QA/QC and HSE
Risk Assessment
Severity of impact 4
Risk Mitigation
Probability of occurrence 3
Risk exposure/priority High
Contingency plan
1. Pre-mobilization inspection/ audit of Contractor equipment 2. Ensure conduction of daily on-site safety meetings before commencement of construction activities. 3. Provision of well-stocked First Aid Kit at the project site 4. Reach an agreement with nearby hospitals on how injured construction workers will be treated 5. Inform Woody’s Management as soon as there is any injured person on site 6. Ensure that equipment for site test are available and that a dedicated lab is available for all tests 1. Provide first aid to the injured worker and take him/her to the hospital 2. Get a new staff to replace the injured person
Risk Owner
QHSE Rep, Consultant
26
No 5: Risk Description
Reliability and Logistics
Risk Classification
Operational
Risk Assessment
Severity of impact 1
Risk Mitigation
Probability of occurrence 3
Risk exposure/priority Low
1. Logistic rationalization to reduce transportation cost 2. Well organized production and order planning via key commodity coordinator 3. Establish long-term relationship with high quality suppliers
Contingency plan Risk Owner
Contractor
5.6 Change Control Management The change control system is designed to allow the project the flexibility to incorporate agreed changes to the project scope while retaining control over costs and time frames All changes that have the potential to impact the project end-date, scope and budget will be reviewed against other project priorities / deliverables to identify potential trade-offs. The objective of this review is to protect the project baselines. Change Control Procedures are the mechanism whereby any prospective change in any baseline document (Project Management Plan, system specifications, baseline project schedules (Gantt charts) or process) is passed through a formal assessment and authorization process. The change control process to be adopted on this project is depicted below:
27
Identify change need (Contractor )
Submit change request form (Consultant )
Review submitted change request form (Project Manager )
Change request necessary? ( Project Manager )
Yes Perform impact analysis (cost, schedule , resources , milestones)
Yes
CR approved for investigation ?
Review change request
Perform initial assessment ( Project Manager )
No Review detailed change request (Change Control Board )
CR approved for addition to project scope ? (CCB)
Notify Consultant / Contractor that CR was not approved (Project Manager )
No
No
Yes
Develop revised design and revised
Advise all impacted parties of revised scope (Project Manager )
5.7 Project Quality Management
S/N
Quality Parameters
Activities to meet Quality parameters
1
Schedule
All deliverables should be produced in line with the agreed project schedule.
2
Budget
Contractor should produce all their deliverables within the budget restraints
3
Scope
Contractor should adhere to the defined scope for the project. Where changes to scope are proposed, all such scope changes need to be formally approved through the Change Management process. These changes should be evaluated in the context of these priorities and with an emphasis on meeting 28
Responsible Party/Person
Contractor / Consultant / Project Manager Contractor / Consultant / Project Manager Consultant / Project Manager
When will this expectati on be met?
4
5
6
Quality
Proactive engagemen t with the local community HSE compliance
stakeholders’ expectations. The quality of all deliverables must be planned for and managed to ensure quality as envisaged by stakeholders. Process check shall be carried out to ensure that the procedure for performing each activity is followed Random tests such as crushing test and compaction test shall be carried out by the Contactor for the concrete, and other construction items according to the consultant’s specifications and instructions All impacts on the local community should be discussed and agreed with them in advance.
Project team should ensure all pre-defined HSE standards and regulations are adhered to at all times and with the involvement of the Contractor’s safety officer.
Project Manager / Consultant Consultant
Contractor
Woody’s Management
Contractor
5.8 HSE Management The Health, Safety and Environmental (HSE) Management shall be the responsibility of the Contractor. HSE will therefore be managed according to Health, Safety and Environmental Management Plan submitted by the Contractor as approved by Woody’s through the Consultant. Contractor’s activities will therefore be organized, planned and executed in such a manner as to: Protect and promote the health of its work force as well as the conduct of its activities in such a manner not to adversely affect any third party (Host Community inclusive) Avoid injury to any worker(s), sub-contractors, and third parties who are involved in the project Ensure the personal security of the work force and third parties and the security of property Minimize the impact on the environment in which the Contractor operates 29
5.8.1 HSE Standard S/N
HSE Standard
1
Zero fatality
2
Zero discharge/Pollution prevention and control
Activities to meet Standard
Responsible Party/Person Project Team / Consultant
Pre-mobilization meeting between QHSE and Contractor. All equipment to be deployed for this project shall be assembled at Contractor’s yard or other locations for inspection and certification, before being mobilized to the project site. Provision of personal protective equipment to all Contractor QHSE site personnel Portable fire extinguishers and foam trailers should be positioned at the site’s major installations. Ensure all site personnel know the safety precautions required for the job. If knowledge is not present, training should be provided. All personnel to be engaged for this Contract shall be medically fit Provisions where necessary should be made for temporary demarcation, temporary road closure, additional lighting, scaffolding and work platform. Provision for first aid treatment on site. Provision for emergency breathing apparatus where necessary. Maintaining a clean working environment. Site components, particularly the suspended ones should be adequately maintained. Pasting on the walls, standard operating procedures for equipment and machines. Conduct gas tests at regular and pre-defined intervals All flushing discharge during construction should Contractor be channeled to the septic tank/Soak away pit. All fuels/lubricants used on site should be properly stored to prevent any spill.
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S/N
HSE Standard
3
Injury/incident Free Operation
4
Waste Management
5
QHSE Safe work practices and procedure, (OE)
6
Zero lost opportunity time (LOT)
7
Site Clean up and Demobilization
Activities to meet Standard Maintain a good housekeeping standard. Conduct pre job safety meetings. Pasting on the walls, standard operating procedures for equipment and machines. Portable fire extinguishers should be positioned at the site’s major installations. Site personnel on duty must put on safety wears. Personnel (Woody’s or external) must wear safety gear in areas where these safety standards must be observed. Ensure all site personnel know the safety precautions required for the job. If knowledge is not present, training should be provided. Are there any special precautions that need to be taken? Provisions where necessary should be made for temporary demarcation, temporary road closure, additional lighting, scaffolding and work platform. Provision of first aid treatment on site. Provision for emergency breathing apparatus where necessary. Maintaining a clean working environment. Site components, particularly the suspended ones should be adequately maintained. Pasting on the walls, standard operating procedures for equipment and machines. Conduct gas tests at regular and pre-defined intervals. There shall be no night driving of vehicle, except on emergency cases. Contractor Site Manager must approve night driving on emergency cases Proper and effective measures must be put in place for the discharge of our waste.
Responsible Party/Person Contractor
Contractor
Hot work, excavation, entry, electrical work and general permits should be issued before any operations by are carried out.
Contractor
Ensure periodic inspection of site equipments.
Consultant
After all works, site shall be thoroughly cleaned and all areas directly or indirectly affected by the work activities shall be restored to its original state prior to demobilization of all resources from site.
Contractor.
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5.9
Escalation Procedures
Action points not progressed by the agreed completion date and which have a time or cost impact on the project, will automatically be escalated through the project hierarchy. Where issues remain unresolved within the project structure, the Project Manager will escalate the issue to the Project Sponsor as appropriate. The escalation process is described below:
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Issue Management Roles
Issue Management Process Identify Issue
1.0 Raise Issue
Submit Issue Form
Issue Originator
Review Issue Project Manager
2.0 Log Issue Is Issue applicable to No the project?
Yes
Update Issue Log & Assign Priority
Review Issue Log
3.0 Assign Issue Actions
Has issue been resolved? Yes No
Close issue & update log
Issue Change Request
Identify Project Risk
Project Review Group
Does issue require Yes a change? No
Yes
Does issue raise a risk? No
Issue actions assigned
4.0 Implement Issue Actions
Issue actions completed
Issue Management Log
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Project Team
6.0 Document Sign Off The above document has been reviewed and accepted as the formal Project Management Plan for Woody 2000 Project.
……………......…...... Ron Carpenter Project Sponsor Woodys
……………......…...... Miles Faster Project Manager Woody’s
….../….../…..
….../….../…..
……………......…...... Duru Okey Project Supervising Consultant
……………......…...... Mr. Eruohi Samuel Contractor
….../….../…..
….../….../…..
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7.0 Conclusion & Recommendation It is hoped and believed that following these processes as outline above this project will be well managed. It is recommended that at the end of the project, there should be a project implementation audit to verify, and confirm that all the project deliverables were achieved and the lessons learnt from the project documented so as to help in the management of future projects in Woody’s
References 1. Crowe, A (2011) The PMP Exam – How To Pass On Your First Try 2. Mantel, S. J Jr and Meredith (2009) Project Management A Managerial Approach 7th Edition; John Wiley & Sons, Inc 3. NDDC Project Implementation Plan (PIP) 2009 for the Construction of 515 Man Hostel at University of Port Harcourt 4. PMI (2008) A guide to the project management body of knowledge (PMBOK Guide) – Fourth Edition 5. The NDDC HSE Manual 6. Wysocki, R. K. (2009) Effective Project Management Traditional, Agile, Extreme. 5th Edition; Wiley Publishing Inc 7. Week 4 & 6 Submissions by me Eigbe, Albert
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