Engineering Project Management - Wembley Stadium - Case Study Example

Engineering Project Management Introduction Managing projects have advanced to planning, coordinating and controlling the intricate and varied activities of contemporary industrial, management and commercial changes. The inevitable element of risk and ambiguity means that activities and work leading to project completion can never be predicted with utmost accuracy (Wysocki, et al., 1995). There exist varied projects in civil or chemical engineering and construction projects, manufacturing projects and in management projects and projects meant for scientific research globally. These are real examples of projects that have underestimated or overestimated the timeline or the resources which has resulted in projects completing late, projects being abandoned prior to completion and the need for more funding to complete the project. For this reason, guidelines such as the Project Management Body of Knowledge (PMBK) and PRINCE2 have been developed to ensure projects are implemented based on best practice. In addition, ensure project managers are more aware of the risks, are therefore able to effectively and efficiently strategize, organize and control activities during project development, and ensure successful completion of projects (Lewis, 2006). By so doing, the project manager is able to satisfy the needs and expectations of the project client, project sponsor among other major stakeholders of the project since the project is able to run and complete within anticipated time schedule and within the allocated budgets. This report seeks to develop and analyze a sustainable project plan for the new Wembley Stadium. The Project- the Wembley Stadium The New Wembley Stadium located in Wembley Park, London, England, is an iconic global stadium and conference centre constructed on the location of the previous 1923 Wembley Stadium. The project plan for the stadium cost a staggering amount of seven hundred and ninety eight million pounds with a timeline of approximately five years -with the project commencing in 2002 and completing in 2007 (W.N.S. 2012). (W.N.S. 2012) highlights that the Owner of the new Wembley Stadium is the Football Association while the Stadium operator is the Wembley National Stadium Limited. The Architect for the project involved in the designing and planning of the project included the Foster and Partners, Nathaniel and Partners and Populous. The Project manager for the Wembley stadium project was Capita Symonds while the structural engineer and services engineer were Mott MacDonald (W.N.S. 2012). Multiplex Constructions Limited of the United Kingdom was the general contractor. As of the year 2011, the main tenant for the stadium was the England national football team and from the year 2012 to 2014, the main tenant is the England national rugby league team and the NFL (W.N.S. 2012). Upon completion of the new Wembley stadium project, the stadium had a capacity of ninety thousand people seated and additional fifteen thousand people standing. This makes it the largest football stadium globally, floor dimensions of 105 × 68 m, a total of 166 executive suites and an iconic arch measuring a height of 133 meters and 316 meters in width, which makes it the longest single roof structure globally (W.N.S. 2012). It is estimated that the London eye can fit into the top of the arch and the field of the stadium. The huge screens fitted within the stadium are equivalent of more than five hundred of regular TV sets. According to the project manager, Capita Symonds, the new Wembley stadium has more than two thousand toilets and there is more leg room for each seat than there ever was in the Royal Box in the 1923 Wembley Stadium (W.N.S. 2012). Project Methodology The project methodology that was clearly evident from the initial to the latter stages of the new Wembley project was the PRINCE2 (PRojects IN Controlled Environments), which allows for the flexibility and adaptability of the project to changes in relation to allocation of resources and making adjustments to the time line of the project. The methodology allowed the development of the project based on key areas among them management of time, managing of costs, quality management, scope management, management of the human resources, managing communications, risks assessment and risk management and management of procurement. Although the project methodology of PRINCE2 was applied there were issues and challenges that emerged relating to time and amount of resources required to ensure the project was completed, which generated mistrusts among the principal stakeholders and prolonging the project timeline. Among the factors cited for the challenges that faced the Wembley project includes the use of fixed price contract prior to commencement of the project, which hindered flexibility of the project plan. Thus, making it difficult for the involved stakeholders to agree when the fixed amount was inadequate and additional funds were required and more so, greater difficulty as some of the sub contractors had to leave the project half way through as reported by Staniszewska (2012). In addition, the project scope was reviewed, influencing the completion date. More often, despite the use of a project methodology, projects are misguided in what need to be done with set periods and costs and the tendency for suppliers to first win the project and think about how to deliver in terms of quality, time and cost later. Results in compromised delivery to the project client and worse still, financial lose for the suppliers/ contractors. The aims and objectives of the Wembley Project The main aims and objectives of the Wembley project as set out by the Wembley National Stadium Limited as highlighted by W.N.S. (2012) includes To develop a showcase stadium Establish one mutual network within the stadium that enhances interoperability, adaptability and effectiveness of the stadium by incorporating technical aspects of the project with management aspect To develop a safer and a more comfortable and secure stadium for the end users To establish superior building controls and ensure low operating costs Develop intelligent control systems, which would support more enhanced operations and services over the stadium’s life span To incorporate the management applications of the stadium with its business systems Processes of the Wembley project Any project undergoes various stages of project development (Lewis, 2006). As suggested by the PRINCE2 approach adopted in UK, where the Wembley project was implemented, a project should be split into manageable and more controllable stages. Among the stages adopted by the Wembley project and which, govern the PRINCE2 approach includes Planning a project Directing a Project Starting up a Project Initiating a Project Managing Product Delivery Controlling the Stages Managing Stage Boundaries and Closing a Project Cost management Contemporary project management based on best practices are influenced by and not limited to quality, cost, time, risk and management. Among the key aspects of project planning is the management of cost. Kliem & Ludin (1998) notes that cost is a significant factor to consider for the management and it should be taken into account in the initial stages of the project life cycle. Costs should be founded on carefully developed and comprehensive proposals detailing good estimates of the cost of the project. According to Burke (2003), cost management is applied in stages namely planning the resources, estimating the costs, budgeting the costs and controlling the costs where each stage overlap each other to ensure cost effectiveness. During projects, offering accurate cost estimates is the most important step as it gives provisional quotes for those costs, which are controllable, and those that are not (Gray & Larson, 2006). According to Lewis (2006), accurate cost estimation facilitates effective budgeting and more importantly generating clarity during measurement of project progress and performance. Costs estimation can be based on tasks breakdown structure and the time schedule thus, developing a connection between the aspect of cost and time. In relation to the Wembley Stadium project, cost estimates were 757 million pounds but the real cost after the completion was over budget standing at 20% more, to cost 975 million pounds (Staniszewska, 2012). The use of fixed price contract saw Multiplex, which was the general contractor, suffer from budget over-runs, legal disputes and incur financial losses and money penalties which almost made it go bankrupt owing to overrunning the budget and missing deadlines. The Wembley Stadium generated its funding from the National Lottery Fund Investment in the tune of 120 million pounds and financial support from West Deutsche Landesbank of Germany (W.N.S. 2012). As demonstrated within this project, accurate calculation of cost is crucial as it influence the project life cycle and can often be used as a measurement of the efficiency and effectiveness of the project. Delivering accurate cost estimation that Multiplex failed to do is achievable by developing carefully prepared work schedules and having full knowledge of the project definition and anticipated project goals. Cost proposals ought to deliver enhanced levels of reliability. Be it as it may, cost need integration with other elements such as time to ensure project success as noted by Wysocki et al. (1995). Time management Just like cost, time management can as well be used to measure the efficiency and efficacy of a project. The best projects are implemented and completed within set time lines. Management of time occurs in various stages namely defining the activity, sequencing, estimating the time duration and development of schedule and time control (Kliem & Ludin, 1998). According to Burke (2003), the stages should overlap and interrelate with each other to enhance efficiency in time. Defining the activity is done based on the work breakdown and objectives of the project, after which the activities to be carried out are established to ensure efficient completion of the project. During sequencing and estimating the time duration, the management establishes which activities rely on each other and approximate their time duration to increase time availability and resources with the view of completing each defined activity within set time (Kliem & Ludin, 1998). Each activity defined in the project plan ought to align to its set time schedule. Effective time management is achievable through effective planning where possible risks and delays are factored in. development of a schedule in time management is paramount although much focus should placed on control technique and monitoring systems to guarantee each process is accomplished within defined deadline (Kliem & Ludin, 1998). To ensure time estimates are reliable and accurate, opinions from experts in such projects should be sought. The use of Gantt chart is preferable in describing the activities to be carried out versus the time line (Burke, 2003). In relation to the Wembley project, time management was marred by time delays, which negatively impacted on the efficiency and the effectiveness of the whole project. The general contractor at Wembley project failed to beat three set deadlines owing to alterations to the project plan, the subcontractor, Cleveland Bridge terminated its contract due to mistrust and construction challenges evidenced in the slippage of the roof support rafter and caving in of the sewers under the stadium (Staniszewska, 2012). As illustrated by the Wembley project, effective risk assessment and risk management coupled with effective communication among key stakeholders are essential in proper management of time during the project life cycle as it helps in discarding poorly generated time management systems that can develop long-term delays in project completion. Comprehensive risk management plans are fundamental as they help counter any threat that may prevent completing the project within defined period and ensure the costs and tasks completion are within set limits (Kliem & Ludin, 1998). Delays witnessed at the Wembley project indicate failure to effectively plan and manage risks. Risk assessment and management Managing risks is among the key parameters when planning projects. Klien & Ludin (1998) indicates that the process of managing risks occur in four stages namely risk identification, risks analysis, controlling the risk and eventually reporting the risk. Application of these steps ensures the opportunity for the projects to succeed are enhanced and the risks of the project failing are minimized. The most crucial of all the steps in managing risks is identifying the risks, as they require time to analyze possible internal and external sources of threats to the project. Majority of the internal risks are manageable as noted by Burke (2003). Once the risks are identified, risk analysis ensues and varied responses to the risks developed which ranges from risk elimination, risk deflection, acceptance of risk and changing the risk into an opportunity as highlighted by Burke (2003). An effective risk management plan determines changes made to the project in terms of scope, time, costs, resources, roles, responsibilities, and project objectives (Gray & Larson, 2006). In the case of the Wembley Stadium project, the adopted risk management plan failed in two ways, construction wise when the arch felled and generated delays, which influenced the time, set for project completion and in situation wise when the sewers buckled and there were ground movements (Staniszewska, 2012). Neither of the events was prepared for despite the fact they generated similar outcomes in terms of time delays and failure to meet deadlines. Management Approach Effective leadership and management is the glue that holds all the project processes together and ensures each stage overlaps each other seamlessly (Gray & Larson, 2006). The Wembley National Stadium Limited that commissioned the Wembley Stadium project adopted the conventional approach of management by relying on the fixed price contracts and sub-contracting to the cheapest bidder and estimator, to operate the whole project (W.N.S. 2012). The subcontractor was unable to accurately estimate time and cost variables, which generated challenges, as they had to shoulder inherent risks and expenses that meant the project was not completed within defined budget and timeline. Conclusion The adopted methodology in the Wembley Stadium is the PRINCE2 (PRojects In Controlled Environments) which is the methodology that has developed and has been exported from the public sector within the United Kingdom. As demonstrated in the report, adopting the methodology should not be done rigidly since the methodology only offers a framework. It is essential to integrate the methodology with flexibility, effective planning and knowledge application. The suitability of the PRINCE2 for this project is based on the flexibility approach it has to managing projects, it is applicable across organizations and industries and it permits proactive approach to delivery of project rather than reactive. The methodology ensures identification and proper management of risks and ensures the project is not compromised in terms of quality, time and cost. References Burke, R. 2003. Project Management; Planning and Control Techniques. Chichester: John Wiley & Sons, Ltd. Gray, C.F, & Larson, E.W. 2006. Project Management. The Managerial Process. Singapore: McGraw-Hill. Kliem, R. L., & Ludin I. S. 1998. Project Management Practitioners Handbook. New York: AMACOM Lewis, J. P. 2006. Fundamentals of Project Management; Third Edition. New York: American Management Association. Staniszewska, K. 2012. Terminal 5 Heathrow vs. Wembley Stadium project management aspects. Accessible from http://katarzynastaniszewska.blogspot.com/2009/02/terminal-5-heathrow-vs-wembley-stadium.html W.N.S. 2012. Wembley Stadium. Accessible from http://wembleystadium.com/Organisation/About-Us Wysocki, K.R., Beck, R.J., Crane, D.B.1995. Effective Project management. How to Plan, Manage and Deliver Projects on Time and within Budget. Canada: John Wiley & Sons, Ltd. Read More