Project Management

EXECUTIVE SUMMARY

Super steel PTE ltd is a leading steel manufacturing and supplying unit which has

established its operations effectively in Singapore and Asia pacific region. The company was

established in the year 2005 and since then, is successfully operating within the sector. It has

been analysed that, super steel PTE ltd has developed a strong network of suppliers and

distributers thus enhancing its chances of significant success in the present competitive

market. Super steel PTE ltd is presently dealing in diverse industries and projects in order to

create a significant development aspect within the market.

Different industries which are providing business to the firm include construction,

ship-building and oil & gas industry. Cost benefit analysis reflects that the oil and gas

industry has significant prospects of development and growth within the market. It will help

the business unit in enhancing its productivity and profitability in the market. The analysis

helped in understanding the critical aspects of project selection commencement and

management. Every stage of the study helped in revealing a well defined means of

knowledge and understating for the study. The evaluation concludes that the stated project

has high chances of success in the economy.

TABLE OF CONTENTS introduction ............................................................................................................................................ 4

Analysis of the THREE Projects Selected ................................................................................................. 4

Criteria for project selection ................................................................................................................... 6

Budget ..................................................................................................................................................... 7

Pre-Project commencement ................................................................................................................... 7

Risks, Contingencies and Stakeholders analysis ..................................................................................... 8

Gantt chart ............................................................................................................................................ 13

Critical path and slack areas ............................................................................................................. 15

Conclusion ............................................................................................................................................. 17

references ............................................................................................................................................. 19

INTRODUCTION

Super steel PTE ltd is a leading steel manufacturing and supplying unit which has

established its operations effectively in Singapore and Asia pacific region. The company was

established in the year 2005 and since then, is successfully operating within the sector. The

organization develops quality solutions to its consumers thus creating well defined and

significant solutions for the business growth and development (Thiel and et.al., 2015).

Effective value added services and well integrated channels of distribution has helped the

business in creating high plans of expansion and growth within the economy. It has been

analysed that, Super steel PTE ltd has developed a strong network of suppliers and

distributers thus enhancing its chances of significant success in the present competitive

market.

Project management is a well defined discipline which focuses on planning,

organizing, implementing, managing and controlling the activities to attain the specific goals

and objective (Badiru, A.B. and Osisanya, 2016). Super steel PTE ltd is presently dealing in

diverse industries and projects in order to create a significant development aspect within the

market. Different industries which are providing business to the firm includes, construction,

ship-building and oil & gas industry. The present study will evaluate the three projects

available and seek the best development measure for the business. Effective project

management technique will be implemented in order to attain success for the selected project.

ANALYSIS OF THE THREE PROJECTS SELECTED

Super steel PTE ltd has developed strong network within the market. The chances of

growth and development for the business are high (Bearer and et.al., 2012). The diversified

industry in which the company deals in includes construction, shipping and oil & gas

industry. The comparative analysis of the three mentioned projects will be undertaken in

order to analyse the most effective option available for the business.

Construction project

The stated industry has high chances of growth and development within the economy.

With rising standard of living and falling accommodation places, regular urbanization and

development is taking place within the market (Swayne, 2012). Asia is the most densely

populated continent and demand for construction is high and significant within the economy.

The demand for steel pipes and fittings are also high in the industry. Steel however is not

used as the prime raw material in construction thus different contractors use low cost

substitutes of steel in order to gain effective market success.

Moreover high market competition is another aspect which reduces the project

success aspect within the market. In addition to this the demand of steel in the construction

industry is limited. Building construction projects has the prospects of development in the

market (Raufflet, Cruz and Bres, 2014). Thus super steel company has limited scope for

growth and development in the mentioned sector. Tentative cost benefit analysis of the sector

reveals that the demand for steel in the construction industry will be moderate however due to

high competition the price leadership will be low. In addition to this it can be analysed that

profit margin in the stated project will not be effective due to low demand and high

competition (Burke, Montevecchi and Wiese, 2012). Hence overall analysis of the case

reveals that the stated project must not be undertaken for business expansion.

Ship building project

Shipping projects and industry operate exclusively within the market. This industry

has high and significant impact on the economy. The ship building project demand high

investment in terms of cost and resources. The raw material within the industry need to be

quality assured and standard (Perry, 2012). The present analysis of the project reveals that

ship building industry has constant demand within the market. Super steel will be having an

effective growth aspect if the company invests in the sector. The industry evaluation reveals

that the demand for steel in ship building will be effective. Moreover profit margin in the

sector is also high because limited suppliers provide oligopolistic control within the

economy. However it has been evaluated that construction sites of ship building is limited

within the market.

Cost of transportation and overheads for Super steel will be high. Cost in terms of

transportation and delivery will be high for the business. This will result in minimizing the

profit margin for the company (Thurner and Proskuryakova, 2014). Hence the overall

evaluation reveals that the stated project is effective highly potential for business

development however due to high cost the aspects of profit for the same will be low and

insignificant. Moreover the cost of gestation will also be high in the project as ship building

demands high investment in terms of time as well.

Oil and gas extraction project

Oil and gas industry is one of the most widely developing sectors within the economy.

Due to falling supply and increasing demand of the product price is high for the same. The

demand of steel pipes and equipment is wide in the sector. Moreover the construction aspects

demand well defined means of products and material (Tavana and et.al., 2012). Super steel is

an effective manufacturer of top quality steel. Undertaking the project of oil and gas

extraction will help the business in enhancing the profit market along with the aspects of

development in the market.

Cost benefit analysis reflects that the oil and gas industry has significant prospects of

development and growth within the market. It will help the business unit in enhancing its

productivity and profitability in the market (Gross and et.al., 2013). Due to high quality

structure demand for product extraction the competition level in the market will be limited.

Moreover in sales revenue in the sector is very high. Thus overall evaluation reveals that

Super Steel must undertake the mentioned project in order to enhance the growth and

profitability measures of the business.

CRITERIA FOR PROJECT SELECTION

Project selection criteria play a very crucial and significant role in project

management aspect. This aspect helps the project manager in analysing and choosing the best

opportunity to develop an effective and well defined project. The major factors which affect

the project selection criteria are:

Project cost: This is one of the most significant and crucial aspect of project

management. The cost of project helps the manager and stakeholders in analysing the

performance aspects and profitability of the same (Ciarreta and Nasirov, 2012). This

factor is one of the most crucial parts to determine as it creates high success aspect for

the project. It also contributes in project planning and development. The cost of oil

and gas project in the current case is high and significant

Quality aspect: Assessment of quality aspects for the project helps in analysing that

the project can be completed in significant time of or not (Finer and et.al., 2015). It is

very important for the project manager to determine the quality aspects for the project

as it help in planning and determining the expected results as well. The expected

quality for oil and gas project is high.

Time: In order to attain high and significant development aspects within the market

project time evaluation is very significant to determine (Gatti, 2013). For effective

project selection the stated option must be determined on the basis of expected time

and whether the project manager will be able to complete it the stated time. This is

significant to analyse and evaluate for the business.

Scope: The scope of the project is crucial to examine the level of expectation and

demand by the clients (Middleton and et.al., 2015). If the project scope is wide and

effective the prospects of development after project completion is high. Thus project

with wide scope must be effectively selected by the businesses or project team.

Profitability: This is very important factor in project selection. For the present project

the scope of profitability is high and significant because high demand and low supply

of oil and gas makes the product highly effective in the economy (Hannisdal A and

et.al., 2012). Thus the profit margin of this project as compared to others will be high.

BUDGET

This aspect is critical for project management and selection. The budget helps the

companies in analysing its scope and level of planning. For the present project of oil and gas

extraction the budget will be 2 million US dollars. It will help in developing an effective plan

to attain acceptable output for the project so that project success and completion proves to be

profitable and effective for the business. The stated budget will ensure that steel pipes and

equipments requisites is attained by the company itself thus saving cost of material for the

same.

PRE-PROJECT COMMENCEMENT

In order to effectively select and complete the project well defined evaluation of the

project commencement is important. This helps in delivering effective and well defined

results for the selected aspect (Pegg, 2012). The pre project commencement for the present

oil and gas project will be as follows:

Project goal: The project goal for the present project is confirm and clear. It focuses

on creating a well defined means of oil and gas extraction aspect (Kang, 2014). The

project manager focuses on developing an effective means of oil and gas extraction

means to attain high means of profitability for the stated unit. It will be highly

effective in business development as well.

Stakeholders: The stakeholders of the project will be senior management, project

managers, employees, government, public and suppliers of the same. These

stakeholders will prove to be an effective and well defined part of project completion

and success (Parish and et.al., 2013).

Project Scope: The project scope for the stated aspect will be significant and well

defined. The oil extraction measures are highly demanded within the market thus the

scope of the project is wide and focuses on attaining high and significant profitability

within the market.

Deliverables: This measure of the project commencement focuses on analysing the

deliverable which the project will provide after completion. For the present project a

significant plan of oil extraction will be delivered which will help in attaining high

market success (Krupnick, Wang and Wang, 2014).

Project risk: Every project has high amount of risks and contingencies associated with

the completion. The selected project is very wide and critical. It focuses on effectively

developing a measure to extract the fuel. The major risks associated with the project

involves health and safety risk, planning, resources aspect risk etc. These risks will be

effective managed and mitigated for the project.

RISKS, CONTINGENCIES AND STAKEHOLDERS ANALYSIS

Stakeholder analysis

Stakeholders are the crucial and most significant part of every project. These are the

people who are directly associated with the project performance and its impact on the

completion of the project as well. For the present project of oil and gas extraction

stakeholders plays a very significant role in effective growth of the overall project. Following

figure effectively represent the stakeholders and their power and interest in the project. The

strategies which will be implemented to manage stakeholders will be:

Keep satisfied: This strategy of stakeholder involvement is used for the ones who has

high power but low interest in the working aspects. For the present project

government and national authorities can be categorised for the same (Ghandi and Lin,

2014). They can be kept satisfied by effectively adopting the environmental policies

and measures.

Manage closely: The major stakeholders who have power and interest in the project

plays a crucial role in the segment. These involve senior management, project

manager, major suppliers etc. By developing effective means of communication one

can manage them closely.

Keep informed: These stakeholders with high interest but low power are needed to be

informed on a regular basis (Gross and et.al., 2013). These include stakeholders such

as consumers and employees of the company. Strategies such as project progress

report may be helpful for them.

Monitor: Stakeholders with low power and low interest falls in this category. In order

to manage them close monitoring is required. This helps in ensuring their needs and

expectation while enhance project completion effectively.

Risk assessment

The risk assessment for the present project has effectively been evaluated and

analysed in the following table.

Category Event Effect Cause Likelih

ood

Impac

t

Total

rankin

g

Performance

Resource

inefficiency

May cause in delay

in project

completion

Non acceptable

quality of raw

material

supplied

2 4 8

Conflict May restrict the

project process

Employee

frustration,

leadership issues

4 5 20

Low output Impact on

profitability

(Kang, 2014)

Ineffective

performance of

employees

2 4 8

Budget

Planning gap Delay in overall

project

performance

lack of resources 2 5 10

Market crash Financial

ineffectiveness and

inefficiency

Unforeseen

contingency in

the market

1 3 3

Cost

increment

Budget of the

project will be

affected

Supplier’s

decision

2 3 6

Time

Activities

delay

Delay in project

completion thus

cost increment

Delay in process

or employee

performance

(Ghandi and

Lin, 2014)

3 5 15

Ineffective

performance

Affect the quality

of outcome

Lack of training

and

development

4 4 16

Natural will result in Natural 2 4 8

disaster project progress calamities

Project

extension

Increase in budget Gap between

planning and

execution

3 5 15

Resources

Quality

difference

Lack of demand in

the market

Ineffective

process and

performance of

employees and

resources

3 3 9

Lack of

trained

employee

Project delay Lack of

experienced

employees

4 3 12

Lack of

Physical

resources

Delay in

competition of

activities

Ineffective

planning

2 2 4

In effective

training

Increasing errors

and accidents

Lack of

experiences

employees

3 4 12

Resistance to

change

Restrict project

progress

Employee

negotiation

2

2 4

Health and

safety risk

Accidents Can create heavy

calamities for

employees as well

as process of

working

Lack of training

or safety

measures

3 5 15

Calamities or

deaths

Fear and

dissatisfaction

within employees

Lack of training

or safety

measures

2 5 10

Environment

safety

Effective support

and appreciation

from government

Proper policy

implementation

and ethical

working aspects

4 5 20

Safe project

completion

High profitability Proper planning

and monitoring

of the project

4 4 16

Execution Gap in Result in project Due to 4 4 16

planned and

actual

performance

delay and cost

enhancement

ineffective data

and research

results

In effective

support

Result in project

delay and cost

enhancement

Lack of

employee

motivation and

support within

the project

(Pegg, 2012)

3 3

9

Unexpected

culture

Low project

progress and

possible restriction

within the market

Due to

ineffective

support and

market resreach

2 4 8

Contingencie

s

Labour strike Result in project

delay and cost

enhancement

Lack of

employee

motivation and

support within

the project

3 5 15

Financial

market fall

Financial

ineffectiveness and

inefficiency

Unforeseen

contingency in

the market

2 3 6

Natural

disaster

Significant loss of

resources and site

Call of nature 2 5 10

Government

policy

change

Delay in progress

and lack of support

of the government

and authorities.

Will demand

effective planning

for the situation

Insignificant

market

evaluation

2 4 8

Technology

Software

failure

Result in project

delay and cost

enhancement

Technology

failure or system

support issue

3 5 15

Lack of

effective

machinery

Will affect the

project capability

and completion

Lack of

effective and

well defined

2 3 6

aspects in a

significant manner

(Burke,

Montevecchi and

Wiese, 2012)

planning for the

overall process

GANTT CHART

Project plan

1 Project management for oil and gas

extraction

536

days

Mon 08-

05-17

Mon 27-

05-19

1.1 Initiation

84

days

Mon 08-

05-17

Thu 31-

08-17

1.1.1 Analysis of oil extraction process

5

days

Mon 08-

05-17

Fri 12-05-

17

1.1.2 Examining process involves

10

days

Mon 15-

05-17

Fri 26-05-

17 3

1.1.3 Evaluating resource involvemnt

12

days

Mon 29-

05-17

Tue 13-

06-17 4

1.1.4 Investigating resource requiremnt

10

days

Wed 14-

06-17

Tue 27-

06-17 5

1.1.5 Calculating busget need

5

days

Wed 14-

06-17

Tue 20-

06-17 4,5

1.1.6 Defining project scope

5

days

Wed 21-

06-17

Tue 27-

06-17 7

1.1.7 Identifying market opportunity

7

days

Wed 28-

06-17

Thu 06-

07-17 8,6

1.1.8 Analysing project value

10

days

Fri 07-07-

17

Thu 20-

07-17 9

1.1.9 Developing aims and objective of

the project

2

days

Fri 21-07-

17

Mon 24-

07-17 10

1.1.10 Analysing proposed oil extraction

meausre

10

days

Fri 21-07-

17

Thu 03-

08-17 9,10

1.1.11 Defining methods of evaluation

8

days

Fri 04-08-

17

Tue 15-

08-17 12

1.1.12 Problem identification

5

days

Tue 25-

07-17

Mon 31-

07-17 11,10

1.1.13 Initiating structured planning

12

days

Wed 16-

08-17

Thu 31-

08-17 13

1.2 Planning

282

days

Fri 01-09-

17

Mon 01-

10-18

1.2.1 Oil extaction plan

15

days

Fri 01-09-

17

Thu 21-

09-17 14,15

1.2.2 Plan for desing and structure

15

days

Fri 22-09-

17

Thu 12-

10-17 17

1.2.3 Area evaluation

10

days

Fri 22-09-

17

Thu 05-

10-17 17,15

1.2.4 Analyzing facility layout

12

days

Fri 06-10-

17

Mon 23-

10-17 19

1.2.5 Develop physical layout

18

days

Tue 24-

10-17

Thu 16-

11-17 18,20

1.2.6 Resource movement planning

20

days

Fri 17-11-

17

Thu 14-

12-17 21

1.2.7 Finalizing optimum design

17

days

Fri 15-12-

17

Mon 08-

01-18 22

1.2.8 Resource planning

12

days

Tue 09-

01-18

Wed 24-

01-18 23

1.2.9 Analysing resource requiremnt

14

days

Thu 25-

01-18

Tue 13-

02-18 24

1.2.10 Evaluating physical resource need

12

days

Wed 14-

02-18

Thu 01-

03-18 25

1.2.11 Developing resource acquisition

method

7

days

Fri 02-03-

18

Mon 12-

03-18 26

1.2.12 Team planning

10

days

Tue 13-

03-18

Mon 26-

03-18 27

1.2.13 Team size planning

5

days

Tue 27-

03-18

Mon 02-

04-18 28

1.2.14 Team composure

11

days

Tue 03-

04-18

Tue 17-

04-18 27,29

1.2.15 Planning employee acquisition

10

days

Wed 18-

04-18

Tue 01-

05-18 30

1.2.16 Technology planning

20

days

Wed 02-

05-18

Tue 29-

05-18 31

1.2.17 Technology evaluation

19

days

Wed 30-

05-18

Mon 25-

06-18 32

1.2.18 Budget planning

25

days

Tue 26-

06-18

Mon 30-

07-18 33

1.2.19 Financial planning

12

days

Tue 31-

07-18

Wed 15-

08-18 34

1.2.20 Sources of funds

17

days

Thu 16-

08-18

Fri 07-09-

18 35

1.2.21 Communication and coordination

plan

16

days

Mon 10-

09-18

Mon 01-

10-18 34,36

1.3 Execution

94

days

Tue 02-

10-18

Fri 08-02-

19

1.3.1 Implanting oil extraction process

12

days

Tue 02-

10-18

Wed 17-

10-18 37

1.3.2 Delegation of roles and

responsibilities

10

days

Thu 18-

10-18

Wed 31-

10-18 39

1.3.3 Implementing technology

15

days

Thu 01-

11-18

Wed 21-

11-18 40

1.3.4 Process testing

5

days

Thu 01-

11-18

Wed 07-

11-18 39,40

1.3.5 Quality evaluation 10 Thu 08- Wed 21- 42

days 11-18 11-18

1.3.6 Employee training and

development

20

days

Thu 22-

11-18

Wed 19-

12-18 41

1.3.7 Database management

20

days

Thu 20-

12-18

Wed 16-

01-19 43,44

1.3.8 Gap analysis

5

days

Thu 17-

01-19

Wed 23-

01-19 45

1.3.9 Restructuring the plan

12

days

Thu 24-

01-19

Fri 08-02-

19 46

1.4 Control

49

days

Mon 11-

02-19

Thu 18-

04-19

1.4.1 Output evaluation

8

days

Mon 11-

02-19

Wed 20-

02-19 47

1.4.2 Change management

5

days

Thu 21-

02-19

Wed 27-

02-19 49

1.4.3 Performances evaluation

12

days

Thu 28-

02-19

Fri 15-03-

19 50

1.4.4 Process inefficiencies

10

days

Mon 18-

03-19

Fri 29-03-

19 51

1.4.5 Review and development

14

days

Mon 01-

04-19

Thu 18-

04-19 52

1.5 Closure

27

days

Fri 19-04-

19

Mon 27-

05-19

1.5.1 Finalizing the project

12

days

Fri 19-04-

19

Mon 06-

05-19 53

1.5.2 Project signing off

10

days

Tue 07-

05-19

Mon 20-

05-19 55

1.5.3 Final submission

5

days

Tue 21-

05-19

Mon 27-

05-19 56

Critical path and slack areas

Gantt Chart

Network diagram

CONCLUSION

The present study is based on developing an effective oil and gas extraction plan for

Supe steel PTE ltd. The stated firm has developed a significant brand identity within the

market which has helped it in creating a significant brand image within the economy. The

evaluation reflects significant aspects of effective project management. The analysis helped

in understanding the critical aspects of project selection commencement and management.

Every stage of the study helped in revealing a well defined means of knowledge and

understating for the study. Report has found that time constraints and communication issues

can also affect the project progress in negative manner. The evaluation concludes that the

stated project has high chances of success in the economy.

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