Project Management - Logistics and Transportation - Example

Logistics and Transportation Supervisor] Contents Logistics and Transportation Introduction Logistics isone of the most important aspects of any project. It is the aspect of a project that ensures that there is a continuous flow of resources. The importance of logistics increases greatly when the main purpose of the project is to deliver food and basic aid to individuals suffering from malnutrition and poor living conditions (Thomas, 2003). Logistics basically encompasses a number of processes and methods to ensure a smooth flow of materials and resources from a place where they are manufactured or produced to the area or place where they are needed. The basic goal of logistics is to transport these resources with as little loss of as little resources as possible. As mentioned above when it comes to a humanitarian project logistics play a crucial role. Logistics in humanitarian projects are thought of as a bridge between the processes of procurement and of distribution (Thomas, 2003). Moreover the speed with which aid is moved from the headquarters onto the field is given great importance, the less time logistics takes to transport resources the greater number of lives can be saved. Thirdly the data obtained from logistics provides a general idea of successful humanitarian efforts have been within a certain part of the world. The data obtained can be of great use regarding any future relief efforts that are carried out (Thomas, 2003). The current project aims at providing food, water and other basic necessities to Mongolia where people are suffering a great deal from starvation and malnutrition. This part of the report would focus on the tasks within the project that deal with logistics and transportation. This section would take into account all the processes and steps needed to transport various resources to the various distribution centers that are spread across the field. Work breakdown structure As mentioned above logistics encompasses a number of methods and processes that help smooth delivery of resources from one place to another. These processes can be classified into three main categories processing, transportation and support activities. The processing category takes into account the activities that take place before resources are shipped (Kasilingam, 1998). The process of transportation is considered as the heart of the logistics phase and contains the bulk of activities that are carried out within the logistics phase. The third category is known as the support activities. Support activities comprise of all the activities that aren’t part of the core operations of logistics but are essential to optimize the processes involved (Kasilingam, 1998). Individual work breakdown dictionary: Packaging of material: ensures that the material and resources that are being transported are not damaged. Temporary storage of material: once material is procured it is temporarily stored in a warehouse or a storage unit until it is processed and is shipped to its destination. Record material shipped: a formal record of all the materials that are shipped or transported is kept in order to keep the material as organized as possible. Collection of data: data on various aspects such as cost, source of the resource being obtained and the staff of the company collects information about the drivers. Maintenance of records: the information that is collected, in the process above, is properly managed in different databases of the company. Analysis of data: analysis of the information that is collected is conducted to help understand how the process of logistics and transportation can further be optimized in future humanitarian projects. Selection of type transport: analysis is conducted to help understand which mode of transport would be best suited to carry out the task at hand. Freight consolidation: a service that is obtained from the shipping company which helps lower cost of shipment and increases the security of materials being transported. This is achieved by transporting these resources along with other goods that need to be transported in nearby areas. Selection of feasible route: different routes from the source to the field are explored and analyzed. From the analysis the most secure and cost effective route is chosen. Training of personnel: training of personnel basically encompasses a number of safety procedures that would ensure that personnel that are to travel to the affected area remain safe throughout their journey. The training mainly deals with truck drivers that are to transport goods. The task of training individuals is further broken down into three parts survival training, first aid training, basic safety procedures and emergency procedures. Survival training: it guides drivers on how they are to survive if they find themselves stranded on the route. Survival tricks and tips can be used by drivers to ensure that they can take care of themselves if their truck breakdowns or they have to stop in middle of the route. Basic safety procedures: it deals with issues such as work related injuries. These safety procedures are not only provided to the truck drivers that are making their daily routes but are in general provided to everyone who are working for the logistics division of the project. First aid: it deals with teaching individuals how to handle injuries and emergency procedures, provides guidelines regarding any emergency that occurs during the humanitarian operations. First aid training in general is provided to those working on the project upfront as they reach the base camp. Schedule of transport: formation of a transport schedule that would ensure that the correct material reaches the field at the correct time. Moreover, scheduling is also carried out to ensure coordination remains amongst all the transport vehicles. Assessment of equipment needed: assessment is carried out regarding the equipment that is needed to transport resources to the field. Assessment of needed equipment includes forming an estimate of the cost that would be associated with the equipment in question. Audit of estimated of cost: the estimated amount presented in assessment is rechecked to ensure that the rates presented are not higher than the rates that are present in the market. Organizational breakdown structure Responsibility matrix: Transport and logistics manager Assistant transport manager Vehicle specialist Terrain and transport analyst Assistant maintenance manager Database administrator Data analyst Assistant logistics manager Base resource analyst Base resource manager Packaging of material A I C A R Temporary storage of material A I A R Record material shipped A C I C C I A R Collection of data A A A R Maintenance of records A C C C A R Analysis of data A A R Selection of type transport A A R C Freight consolidation A A R C Selection of feasible route A A C R Schedule of transport A R C C Assessment of equipment needed A A R C Audit of estimated of cost A R C C Training of personnel A R C C Briefing on basic safety procedures A R C C Survival training A R C C Emergency procedures A R C C First aid training A R C C Communication plan Purpose: The basic purpose of the communication plan is to help achieve the strategic objectives that have been defined by the above project. The communication plan would act as a guide for all sub departments that are a part of the logistics and transport department. Objectives of the plan: One of the main objectives that the department would try and obtain is that it would try and enhance coordination amongst its sub department in order to ensure that all operations are carried out as smoothly as possible. Furthermore, through efficient communication the department would also try and raise awareness amongst the employees on the importance of transporting goods to Mongolia as soon as possible. The final objective of the communication plan would be to contribute to the overall efficiency of the project in question. Targeted audience: The communication plan would try and target all the employees that are working within the logistics and transportation department of the project and would also try and would also be used to efficiently target communication with other departments of the organization. Best approach to communication: The department would employ three basic communication methods that would help it achieve the targets set. The first mode of communication used by the organization would be oral. Oral communication would be used to relay any message that are not part of the official procedure but help improve the overall performance of the project for example a motivating workers through a speech (Lindlof & Taylor, 2011). The second communication would be written communication and would be used to relay any official message that has been provided by the top management of the organization. The third mode of communication would be online. Online communication would mainly be used to coordinate with individuals of the project that are not present at the base. Online communication would also be used to communicate with the transport vehicles that would be transporting goods to areas in Mongolia where aid is required (Lindlof & Taylor, 2011). To enhance online communication the help of a network provider would be used to facilitate communication with drivers that are on route to the field. The network at the base camp would comprise of multiple database servers and file servers. Database servers would be used to store large amounts of data that would pertain to the management of resources that are available to the logistics department. The main purpose of a file server is to manage all the data files and ensure that all users of the system are provided with access to the files. Finally to help network present at the base camp access the internet a web server is used. Web server is usually a combination of hardware components and software applications (Lindlof & Taylor, 2011). Evaluation: The speed with which resources are transported to affected areas of Mongolia and the frequency of errors that occur within coordination of activities within the department can be used to measure the efficiency of the communication plan. These two factors will play the role of indicators in the formation of the evaluation plan. Stakeholders in logistics department One of the main stakeholders of this project and of the logistics department are the people of Zuunmod Tov province. The entire project and the process and activities being carried out within the department of logistics is being carried out in order to ensure that these people are given access to basic needs such as food, water and shelter. Another main stakeholder from logistics point of view is Xiang Mu Guan Li Company. The company is mainly responsible to ensure procurement and transportation of food and aid supplies to the various main warehouses that have been established within the affected area. The third stakeholders of the logistics department are the individuals that are working within the logistics department of the project. These individuals are part of the project and would ensure that the main objectives of the project are met. The last stakeholder that would ensure that the transport trucks reach their destination in Zuunmod Tov are organizations such as Red Crescent and Red Cross. These organizations invest a large amount of time and effort into making sure that supplies reach the people of Mongolia in due time. Stakeholder map: Transport and Logistics Budget Breakdown Name of resource Quantity (Units) Cost of one unit (USD) Total Cost (USD) Packaging material 40,000 1.08 43,200 Rent of Trucks 100 3000 300,000 Fuel expenses 16000 Gallons 3.293 52,688 Required resources (Food, accommodation and medical facilities at base) 221 100 22,100 Database servers 1 3,277 3,277 File servers 2 4,000 8,000 Network service provider 1 2,500 2,500 Computers and other hardware equipment 21,300 21,300 Labor 300,000 Total 753,065 The detailed cost of labor is provided in the table below:   Cost of Labor   Assistant transport manager Vehicle specialist Terrain and transport analyst Assistant maintenance manager Database administrator Data analyst Assistant logistics manager Base resource analyst Base resource manager Total Packaging of material             36   13 49 Temporary storage of material             34   22 56 Record material shipped             25 5   30 Collection of data       4 46 5       55 Maintenance of records       53 25         78 Analysis of data       27   13       40 Selection of type transport 54 5               59 Freight consolidation 5 5               10 Selection of feasible route 13 27               40 Schedule of transport 3 7 3             13 Assessment of equipment needed 14 14 7             35 Audit of estimated of cost 55                 55 Training of personnel 22 15 15 3           55 Briefing on basic safety procedures 7 33 12             52 Survival training 14 33 3             50 Emergency procedures 10 43 5             58 First aid training 2 63 3             68 Total man hours                   803 average labor rates per hour (USD)                   373.599 Total cost of labor (USD)                   300,000 Cost analysis: From the above diagram it is quite evident that the bulk of the expenses have been dedicated to the obtainment of trucks. The trucks would take up an even greater portion of the total amount if we add the fuel expenses to them. The third greatest expense that the logistics department has to bear is that of packaging. Packaging may not see such an important part of transporting goods to Mongolia; however it is essential to ensure that materials being transported to the site are not damaged on the way. There have been cases where aid material was lost during its transportation to the affected area (Cury, 1989). Risk management Mongolia is a land locked country which means that access through sea is not possible. The only means of transporting goods to Zuunmod Tov is via trucks. Accessing the landlocked country is possible either through China or through Russia. Even though these routes are viable and would greatly help in transporting goods to the affected province of Zuunmod Tov they are greatly dependent on Mongolia’s relations with China and Russia. Deteriorating relations between the two countries could lead to a blockade of these routes which would cause a disruption in continuous supply of aid to the province of Zuunmod Tov. Second major risk is the customs department of the country. The custom department of Mongolia is lacks proper administration. They are unable to coordinate amongst various other departments could increase the time with which aid is transported to its destination. Another risk is the harsh weather of the country. Winters in Mongolia can get very harsh which causes certain areas of the country to become inaccessible and blocks a number of routes within the country (BBC, 2010). Fluctuating costs of gasoline and fuel could mean there is a risk that the actual cost of fuel may be much greater than the cost that has been estimated in the table above. The increase in fuel prices could force Xiang Mu Guan Li Company to lower the number of trucks being dispatched into the field. The risks listed above are the risks that would have a major impact on the project and the occurrence of these events could even cause the entire project to fall apart. Additional risks that are associated with the project are listed in the table below. Risk Impact Likelihood Description Inefficiency of the management Medium Likely Inefficiency in the management of resources that are available for logistics could lead to a delay in the provision of supplies to the province of Zuunmod Tov and could even increase the cost. Provision of incomplete information High Unlikely The information provided to the logistics is incorrect that can become a huge barrier for the project Failure of critical equipment High Unlikely Critical equipment such as systems installed for communication could greatly undermine all logistics operations. Loss of degradable supplies such as medicine and food High Unlikely Degradable supplies such as medicine and food could expire or rot if not stored properly Lack of cooperation from supportive organizations High Unlikely Lack of cooperation from organizations such as UNO and Red Cross could cause a setback to the entire project Risk fish bone diagram: Health and safety The greatest threat to the health and safety of individuals of individuals working there is the harsh weather. The weather not only disrupts the transport of goods to different parts of the Mongolia but also can adversely affect the health of people working there. Therefore as a precaution, a medical team comprising of 5 doctors and 22 nurses would accompany employees of the company to the base camp. In addition all truck drivers would be made to attend a course of first aid and would be provided with first aid kit boxes which would comprise of all the materials that they would need in case they get injured. Truck drivers would also be briefed on how they are expected to respond in case they find themselves in an emergency situation. Flares, tracking devices and distress beacons would be fitted in every truck to ensure that they can signal for help if they get in some kind of trouble. Strains and sprains are common amongst workers that push, pull, lift or even unload goods on the trucks. These kinds of injuries usually occur due to over exertion by individuals or even during manual labor. In order to avoid such small injuries it is best if proper machinery is made use of and it is made sure that employees avoid putting excessive pressure on themselves. Furthermore with drivers there is always a chance of fatigue whilst they are on a delivery route. The miles that need to be covered to reach the affected area are great and driving such a long distance is bound to take its toll on the driver of the truck. In order to make sure fatigue is not an issue amongst truck drivers, each truck would comprise of two drivers who would divide the work load amongst themselves over a long period of time. A small risk that may occur in the area of operation is that of looting and plundering. In order to provide security to the base, security services would be sought from the governments of China and or Russia. Moreover to secure the trucks that make their way to the field, four security personnel would escort these trucks. These personnel would ensure that the trucks reach their destination safely. On the return journey these personnel would also be made to escort the truck drivers in order to ensure that no harm is brought upon truck drivers or the trucks itself. Individual reflective report The project that we undertook helped us understand the procedures that are used to manage a project on a large scale. We as a team divided up the project into different parts and assigned each one with the responsibility to complete a particular section or part of the report. I was given the responsibility of collecting different data regarding the logistics and transport of a humanitarian project. Through the project I learned what phases are important while dealing with logistics what challenges that individual faces while taking on the responsibility of logistics. The most important factor, however, understood is the procedure to identify the risks that are involved in any part of a project and how can those risks be mitigated. The greatest challenge that I faced while carrying out the tasks was classifying stakeholders into groups. A project in general is important to all stakeholders and in some cases it can become difficult to understand which stakeholders have a greater stake in the logistics division of the project and which stakeholders have greater stakes in another phase of the project. The second challenge was formulating a communication plan that would meet the needs of the logistics division of the project. Effective communication is one of the most fundamental attributes that accounts for the success of an organization. With effective communication one is able to coordinate with all those involved in the project ensuring that all activities are conducted smoothly. In this project drawing up a communication plan was difficult because there were two kinds of individuals involved. The first is was the staff that served at the base second was the truckers that were continuously on the move and shipping supplies to the Mongolian province of Zuunmod Tov. Once the communication plan was developed the rest of the phases within logistics became easier to handle. Gantt chart Critical path Critical path analysis: From the above diagram of critical path it is clear that the main critical task is analyzing the data that would help plan out the entire logistics phase of the project. The data collected on the route, vehicles, equipment and on the conditions needs to be analyzed within the given duration of time. Without the results of analysis the project cannot proceed as planned. Network diagram: Resource smoothing Process Resource Allocated Allocation percentage Packaging of material Vehicle specialist, Base Resource manager 30%, 30% Temporary storage of material Base Resource Manager 70% Record material shipped Base Resource Analyst 100% Collection of data Database administrator, Assistant maintenance manager, Data analyst 30%, 20%, 50% Maintenance of records Database administrator, Assistant maintenance manager 70%, 30% Analysis of data Data analyst, Assistant maintenance manager 50%, 50% Selection of type transport Vehicle specialist, Terrain specialist 30%, 20% Freight consolidation Vehicle specialist, Terrain specialist, Transport and Logistics manager, Assistant Transport manager 30%, 20%, 20%, 30% Selection of feasible route Terrain specialist, Transport and Logistics manager, Assistant Transport manager 60%, 20%, 20% Schedule of transport Transport and Logistics manager, Assistant Transport manager 60%, 40% Assessment of equipment needed Vehicle specialist, Assistant Logistics manager 30%, 60% List of References BBC, 2010. Struggling to survive Mongolias freezing winter. [Online] Available at: [Accessed 26 November 2013]. Cury, F., 1989. Use Of Military in Humanitarian aid. [Online] Available at: [Accessed 26 November 2013]. Kasilingam, R.G., 1998. Logistics and Transportation: Design and Planning. Norwell: Springer. Lindlof, T.R. & Taylor, B.C., 2011. Qualitative Communication Research Methods. Thousand Oaks: Sage. Thomas, A., 2003. Humanitarian Logistics. Research. San Francisco: Fritz Institute Fritz Institute. Read More