The Three Gorges Program, China: Re-building Natural Resources - Essay Example

? MSc (Management) Project Management Assignment Assignment The Three Gorges Program, China: Re-building Natural Resources Executive Summary The implementation of the Three Gorges Dam in China is one which shows several successes and failures. The main objective was to control the flooding of the river while building the largest hydroelectric power dam that could be used in China. The implementation of the overall project was successful with specific needs. However, there were several downfalls that were a part of the building of the river, specifically through gaps in the implementation of the project. This research study will examine how the project progression and maintenance led to gaps in the successful finish of the project and is now leading to gaps in the cost, quality and the overall implementation of the building of the dam. Introduction The Three Gorges Dam project, which took place in Yichang, China, was built to create more energy efficiency within the environment. The association with this particular project was implemented in 1996 and completed in the year 2008 with the specific focus of producing electricity through the generation of water. The project was defined as both a production and re-engineering project. The production viewpoint was based on producing electricity from the natural resources available while the re-engineering was created by changing the dam and the waters so it could effectively work to increase the productivity of the area while stopping the issues with floods and other parts of the river which were issues in the past (CNC, 2011:1). The concept of the Three Gorges Dam is known as a project for several reasons. A project is defined as one that is temporary, unique and which is elaborated as it moves through a specific progression. It also means that others have not moved forward with the same ideologies. The Dam project was known to start in 1997 and to have a deadline of 10 years, which is now at 19 years. It also is unique as being the largest dam built and the only one which is using innovations in technology for hydropower. The elaborations are coming from the inconsistencies that changed with the duration of the project. The nature of this particular project is also consistent with the need to manage the activity before, during and after the conclusion of the initial goals being reached, specifically which is defined by changing resources (Roseneau, 2006: p. 2). Background of Company and Project The Three Gorges Dam was headed by the corporation that was in charge of caring for the dam and with implementing the project. The corporation was built in 1993 with the approval of the State Council and began to build and create the planning for the dam in 1994. The initial approach was to create a new level of hydropower development while stopping the excessive flooding that came from the river. Initially, the company focused on management of the current dam after completing the closure in 1997. After this point, research and development was able to build with the flood and drought control as well as power supplies that were from the dam. By 2006, the development led into the final restructuring of the Three Gorges Dam Project, which was approved by the main committee and which initialized the launch from the research, development and technological innovations that were associated with the dam (China Three Gorges Corporation, 2011: 1). Key Stages of the Project The key stages of any project are one of the defining factors which set it apart from being a corporation (Maylor, 2005: 17). The beginning of the project was initialized with the innovation of hydroelectricity and the research which was done to ensure that the project could be completed. This was finished in the year 1992 with the meeting of the People’s Congress, which approved the project to take place. In response, the corporation formed for the project and with the focus of creating several hydroelectricity dams in the future. The project then developed, as seen in the Gantt Chart in figure 1. Figure 1: Gantt Chart of Three Gorges Dam 1993 1995 1997 1999 2001 2003 2005 Initiation of project Research and strategic planning Construction of framework Dam Construction complete Diversion of water to reservoir Closing off of dam Ship – lock completed Testing phase 1 Generators installed Testing phase 2 12 generators installed (China Three Gorges Corporation, 2011, 1). The approach was one which was expected to be the largest project for water control and hydroelectricity in history because of the amount of materials and resources as well as the size of the river that was approached. The overall changes also included relocation of migrants that were close to the river, including 1.13 million people while going through the inundation. This can be seen in Figure 2 below. Figure 2: Inundation of River (China Three Gorges Project, 2011: 1). The inundation and overall materials were combined with several new technologies, including new technology to close off the river, build the reservoir, place specific slopes and structures that weren’t used before and the manufacturing and installation of the generator units, all which were some of the newest in technology (China Three Gorges Corporation, 2011: 1). Each of these pieces is also a part of the definition of the project, specifically because it introduced new obstacles as the dam was built and created responses and management to move through the series of the project (Maylor, 2005: p 18). Another association with the dam being a project was based on the cost. There was a set price that was given for the launch and completion of the project (Maylor, 2005: p. 19). The total cost for the project began with the government approving 180 billion yuan, which equals $22.5 billion US. The overall spending by 2008 had reached 148.635 bllion yuan with 64.613 billion spent on construction, 68.557 billion on relocating residents, and 15.195 billion yuan on financing. It is estimated that another 250 billion yuan will need to be spent because of new construction costs that will accumulate over time. As the dam and the river generate electricity, new construction and repairs will need to be done, specifically which is affecting the dam before the completion has altered. The fund has worked with several areas to try to gather funds, including foreign banks, corporate bonds and loans from the government and central Chinese bank. It has also been agreed that residents will pay a slightly larger fee per month of 4 per mW of electricity used from the dam to help complete the needed financing (Waterpower, 2007: 17). The main association with these components can first be seen in the iron triangle, as seen in figure 2. Figure 2: Iron Triangle The time that was designated to this specific project was based on a 10 year time line to initialize the entire dam so it was in complete functioning with the cost of 180 billion yuan. When looking at the expectations, this particular time association was one that was based on high amounts of risks with the time line. Each of the components were expected to meet milestones of 1 – 2 years, such as building the framework, creating the slopes with the concrete and adding in the generators. The innovations made the time line too short and didn’t have any room for experimentation, evaluation, assessment or the ability to change the technological features used. The assessments which were used were designated as in between points for one year for monitoring. When looking at the Gantt chart above (figure 1), it can be seen that the milestones were rushed toward the end with the need to add in the generators and meeting the proposals as required, despite problems which arose. These associations were also a part of the defining points of the project, specifically because there were several innovative and unique features that tested other concepts that were only being maintained in terms of energy (Maylor, 2005: 19). The cost that was associated with this was also initially at a high risk and linked directly to the time table. The cost wasn’t inclusive of the movement of the residents, rebuilding of different parts and mistakes in the dam. The cost, while being met in the initial project, is now expected to cost 250 billion yuan more in the next 10 years. The value of the generators and the association with the dam meets the general requirements; however, the lack of funding and the timing which had to be met is also leading to the need to renovate and repair parts of the dam. Another association which is made with this particular dam is from the micro – macro perspective that is a part of the initiation and the building which has taken place, a model offered by Lim and Mohammed (1999). From this perspective, the success and failure of a project is dependent on several scopes. The first is of the interior of the project, which is defined as satisfaction criteria and is inclusive of quality and use of operation. The macro perspective is based on the exterior responses, which shows that the project is completed and has reached the expectations and desires that are a part of society, the culture and the economy (Brandon, 2006: p. 20). For the micro – perspective, there are both successes and failures, specifically because the project was completed on time and met the budget. It is also assisting with hydroelectric power, as expected and prevented the flood from occurring and damaging the region in 2006. However, the several failures inside the project, such as malfunctions, glitches, floods and environmental hazards that will take another 10 years to fix. The macro – perspective matches this, specifically because there were over 1.3 million residents displaced and the funding which was expected by stakeholders has risen for the next 10 years. Risk management can also be considered, specifically with planning and scheduling of the initial project and potential risks which would be associated with using new innovations and technologies. The risks were also included with the scheduling, specifically with the initiation of having year long gaps to test each of the materials and to supplement any requirements needed. The assessment after the project; however, needs to be reconsidered with how the approach to risk management was initially taken, specifically because the scope of the project doesn’t match with the quality and details as originally suspected (Kerzner, 2009: p. 22). The risk management aspects are one that the corporation was well aware of, as is reflected with the several assessments that were used after each stage. The initial planning took over 10 years as well as research and development which were considered. The planning was also inclusive of the government approval and the need to have stakeholders working with the project. The scheduling was made in agreement to the several committees that were aware of the research and the project elements. However, the new structure of the dam, new use of generators, use of the largest river to generate power and the other innovations in the project heightened the risk taken. This created several unknown factors that the planning and assessment couldn’t match. Success and Failure Aspects The success and failure of the project can be determined by the project management dimensions of Shenhar, et al (2002). This states that there are three dimensions which are associated with the success or failure of a project, including the assembly, system and array or systems that were developed to reach the main objectives (Camilleri, 2006: p 15). The first success of the project was based on the development of systems, or array, which indicated success. Changes in electricity were associated with the building of the dam, as well as the flood control, both which were the main purpose of the dam. From this point of view, the dam worked with several successes. Before the end of the project, in 2007, the dam was taken over by the third largest flood of the river in history. The dam withheld and stopped the water from overflooding the area, instead leading it to the third reservoir for containment until the water subsided. There were also performance measures which withheld with the amount of electricity which was saved per year with the dam, and which was recorded within the first month of implementation of saving millions of watts on electricity and fuel. The assembly also can be measured with successful performance measures (Camilleri, 2006: p 15). The acceptance that each of the stages needed to go through a testing phase to see if it would work effectively or if repairs would need to be made. This was a part of a security planning model which was used to assess during the project phases, as opposed to waiting until after completion of the project. The main ideology was to combat against the main problems of the dam and water system while enhancing and changing the measurements so flooding and electricity would both work with this specific system (Straub, 2008: p. 15). The next area of implementation which is said to be successful and a partial failure is with the marketing that was used with the building of the dam. The marketing is one which can be divided in phases and is inclusive of the initial marketing as well as the maintenance which needs to be used in order to successfully complete a project. The proposal as well as the development of the project then needs to use different types of marketing to ensure that the project is able to provide the right types of responses and reaction (Rosneau, Githens, 2006: p. 283). The initial marketing of the project is one which was done in the correct manner, specifically because of the concrete planning and the approval of both stakeholders and the government. However, this changed when the residents were displaced, which created some controversies. More controversies are now being questioned with the extra prices that have been added into the building of the dam as well as some failures which have occurred from the structure. The next level that is measured and which shows the performance is the engineering. Each level was able to show that there was the ability to successfully implement the project and change what could be done. This is a part of the dimensional model of systems and array, both which were failures. The government and the individuals who have been working on the project are now admitting that the engineering continues to have risks, which is going to lead to financial instabilities and questionable performance over the next 10 years. The performance threats arising include safety, threats to the environment, displaced residents and the question of taking away from the natural landscape. The result is that the project has changed from 10 years to 20 years to complete with the double amount of funding expected to finish the dam (Wines, 2011: 1). When evaluating the overall measures, it can be seen through the matrix figure 4 of what was successful and what was measured as a failure. Figure 4: Matrix of Success and Failure Goals & Measures Design & Implementation Management Organizational Level Strong research and development program. Strong vision to achieve two goals with construction that would help to maintain these goals. Assessment steps and evaluation after each step. Weakness of implementing designs before reconsidering and evaluating hazards with some performance measures being reactionary, such as displacing 1.4 residents. Inability to monitor and control what has been done. Redoing parts of construction that didn’t work. Process Level Strong process measured by phases and designed to create changes necessary if there wasn’t success with the vision of the project. Strong design; however, the implementation was risky. The risk was based on using too much innovation for a water body that was considered as one of the largest in the world, which doubled the risk. Inability to manage and proceed to the next levels without going back to the planning procedures and redoing the implementation of the design so it works more effectively. Performance Level The activity goals were measured by monitoring each milestone for a year before moving to the next level and making any changes necessary for the project. Designs were done according to the necessary procedures and innovations. However, the implementation wasn’t changed when there were problems with the performance, such as flooding and inability to contain the ship-locks and reservoirs. The activity of saving in electricity per year is as expected and leads to the success of the project. The overall management of the floods has also created a level of success. However, unexpected activities, such as changes in flooding and inability for the construction to withhold other levels are leading to unexpected project jumps. These specific factors within the internal organization can further be monitored with the social and cultural factors, as well as the values which are coming from stakeholders. Value management first comes from an open cultural model, which states that the value which is created within a project is equal to the design factors and the responses which occur from various areas of culture (Kendra, 2004: 91). From this perspective, the planning and implementation of the design were stronger with acceptance by the government, culture and the stakeholders which invested the 180 billion yuan to the project. However, the culture and the stakeholder value changed after the project didn’t reach full completion, with a lack of funding being available with 250 billion yuan needed and cultural devalues from the displacement and the lack of available alternatives for the culture. The loss of support which came from implementation of the design shows that there was a strong gap during this phase of the project and that certain features were pushed through to complete the project. Project Outcomes Initially, the project outcomes which were instigated led to several positive measures. The two main objectives of having hydroelectricity and to stop flooding were achieved with the building of the dam. It is expected that this will continue to assist the economy and to help those that are looking at the dam for a change in using natural resources. When the project is completed, the innovation will lead to an understanding of how to use hydroelectricity as an alternative form of power, which should help with the environment and change what is expected in terms of having facilities based around the world (China Three Gorges Corp, 2011: April). Even though the overall objectives were reached, there were also negative outcomes which occurred from the building of the dam. This began with the flooding that occurred in 2006 and was one of the three largest in history. While the dam was able to maintain and control the flooding with the reservoir, 1.3 million people were displaced. Other problems are also beginning to arise, such as doubting from the controlled water system, a lack of balance in how much water should be used and structural problems which are causing the dam. The unanticipated risks are the main problem with this project and are causing those who structured the dam to have to backtrack to the main implementation and engineering of the design. At this point, it is expected that this will double the costs of building the dam and may not have a successful project when completed because of the designs that were implemented and not changed to alter the main structure (Lasseter, 2011: 1). Recommendations The several problems which are associated with the Three Gorges Dam in China is one which is now leading the project to be one that didn’t work effectively. The main gap that was seen took place with the implementation of the design. The planning required specific deadlines to be met and for the project to reach completion and to open by 2006 while remaining at a specific cost. However, the innovations and technology weren’t considered enough with the implementation of the design, causing the gap to widen in pushing forward the project without considering the damage which was being done to the dam. While the main functions work, the dam is one which is consistently causing problems with residents, society and with stakeholders. More important, the problems which did arise don’t have a solution and was overlooked with the main functions of the dam. To change the gaps of the project, the corporation needs to go back to where the problems with the design began to occur. Finding the gaps in the engineering and design will lead to better solutions that can be reached with the overall functions of the dam while creating a different approach to resolve what is occurring. The beginning of this is based on finding solutions with the flooding which occurred and recognizing why the dam isn’t offering environmental stability. Changing parts of the structure and altering the functions may assist with this. Doing this before the last generators are placed and creating an alteration in how the project functions ensures that there is the ability to change the way in which the dam functions while stopping the floods and environmental imbalances. Conclusion The ability to create projects is one which requires several levels of design and implementation. Using the correct planning and strategies in the beginning isn’t enough to create a successful project. When looking at the Three Gorges Dam in China, it can be seen that the strategy and planning was incorporated thoroughly before beginning. However, gaps in the understanding of the innovations as well as how this would affect the environment and society weren’t considered. This shows because the main objectives were reached; however, the dam failed to fulfill the needed roles with changes in the design and implementation which may have changed the results of the project. References Brandon, Dan. (2006). Project Management for Modern Information Systems. New York: Idea Group. Camilleri, Emanuel. (2006). Project Success: Critical Factors and Behaviors. UK: Gower Publishing. Chinese National Committee (CNC). (2011). “Three Gorges Project.” CNC (May). Chinese Three Gorges Corporation. (2011). “Corporation Information.” Retrieved June 4, 2011 from: http://www.ctgpc.com.cn/en/information/information_a.php. Chinese Three Gorges Corporation. (2011). “Development Strategy.” Retrieved June 4, 2011 from: http://www.ctgpc.com.cn/en/information/information_c.php. China Three Gorges Corporation. (2011). “China Three Gorges Hydropower Project Proceeds as Planned After Protests.” Bloomberg News (April). Kendra, K. 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