Hong Kong Natural Gas Pipeline Project Management - Case Study Example

Project Management by Student’s Name Code + Course Name Professor’s Name University Name City, State Contents 1.Summary 3 2.Overview of the Prince 2 Project management methodology 4 1.1 The Principles of the PRINCE2 Project Management Framework 4 1.2 The Themes of PRINCE2 Project Management Framework 6 1.3 Processes in the PRINCE2 Project Management Framework 7 3.Select FIVE of the PMBOK knowledge areas which you consider to be the most important and in 500 words critically appraise how they add value to project management methodology. 8 3.1 Project Integration Management 8 3.2 Project Cost Management 8 3.3 Project Quality Management 9 3.4 Project Time Management 9 3.5 Project Risk Management 9 4.Analysis of an Engineering Management Project, which includes the successes and failures within the project and any lessons learned from the project. 11 5.Reference List 15 1. Summary This portfolio includes three parts. The first part presents an overview of the PRINCE2 project management framework. The overview highlights PRINCE2 project management framework’s seven principles, seven themes and seven processes. The second part presents a critical appraisal of five of the PMBOK knowledge areas which I consider to be the most important. These include project integration management, time management, cost management, quality management and risk management. An indication of how these knowledge areas affect project management methodologies is also presented. Finally, I present an analysis of the Hong Kong Natural Gas Pipeline project management case study. Notable successes in the case study include effective project planning, time management, cost management and quality management. Finally, indications of the lessons that can be learnt from the project are also presented. 2. Overview of the Prince 2 Project management methodology The PRINCE2 project management methodology is a structured project management framework that was developed out of a consideration of experiences of project managers who oversaw various projects as well as from the contributions of various project sponsors, project management academicians and consultants (Office of Government Commerce (OGC) 2009, 3). PRINCE2 is a proven project management framework that is inherently generic. As a result, it can be applied to projects of different scales and types as well as across different organizations operating in various geographical and cultural backgrounds (OGC 2009, 4). The aim of adopting the PRINCE2 project management framework is to enhance consistency and effectiveness of various project activities and processes (OGC 2009, 6). The PRINCE2 project management framework outlines various principles, themes and processes that are aimed at addressing aspects such as project planning, execution, monitoring and control (OGC 2009, 5). 1.1 The Principles of the PRINCE2 Project Management Framework PRINCE2 is based on seven universal principles that have been proven over time and which guide project management regardless of project size, type or geographical area being covered as well as across different cultural backgrounds (OGC 2009, 11). These principles are grounded on years of experience of planning, implementing and controlling different projects. A comprehensive adoption of these principles facilitates the success of any particular project that uses PRINCE2 as its project management methodology. According to the continued business justification principle, all PRINCE2 projects must have a justifiable business case that underpins the need to institute them in the first place (OGC 2009, 11). The business case includes the potential for the project to result in real benefits accruing to the organization involved in its execution. Business case justification ensures that a project’s associated costs, risks and benefits are adequately considered and analyzed in the project planning phase before it can be considered for execution (Sargeant et al. 2010, 33). The second principle entails the need for project managers and project team members to engage in a process of continued learning from experience throughout the life of the project (OGC 2009, 12). This principle is particularly important considering the fact that each project is most often unique; be it in size, scope, nature or duration among other aspects. As a result, project managers and project team members should endeavor to consider experiences and lessons from various phases of the project as well as from similar projects that are capable of being applied in the present circumstances. The third principle is concerned with the need for all projects to have clearly defined responsibilities and roles for all individuals involved in the project in one way or another (OCG 2009, 12). Project managers should ensure that only the right individuals, with the right skill set, competences and experience are involved in specific projects. The fourth PRINCE2 principle entails managing projects by stages (OCG 2009, 13). Management by stages ensures that each project has specified control points where the progress of the project can be assessed and corrective measures instituted if need be. The fifth principle entails managing PRINCE2 projects by exception. Management by exception entails identification of project deliverables and their accompanying limits and constraining factors (OCG 2009, 13). When these limitations and constraints are identified, project managers at each level can then delegate duties and responsibilities in a manner that takes them into consideration. This ensures that project team members remain accountable for assigned tasks and responsibilities to ensure that the project is conveyed within the budgeted cost and timelines as well as in conformity with quality expectations (OCG 2009, 13). The sixth principle involves a focus on project products. Such ‘products’ should be clearly described in terms of resource requirements and activity scheduling. This eliminates the risk of issues such as reworks due to poor quality. The seventh principle entails tailoring a particular project to suit its execution environment. Tailoring project specification to the project’s environment ensures that project planning and other management efforts meet various stakeholder needs and expectations. It ensures that the project’s progress can be adequately monitored and controlled so as to ensure it remains within scope, schedule and budgeted cost levels (OCG 2009, 14). 1.2 The Themes of PRINCE2 Project Management Framework PRINCE2 framework also outlines seven themes that underpin successful project management. These themes include: Business case; organization; quality; plans; risk; change; and progress (OCG 2009, 15). The business case theme specifies that each PRINCE2 project should have viable investment benefits that are in line with its organizational strategy. The organization theme describes how project managers should delegate and assign specific roles and responsibilities based on skills, experience and individual capabilities (Sargeant et al. 2010, 29). The quality theme outlines ways through which various quality attributes can be achieved, maintained and or enhanced. The steps theme sets out various steps that can be followed by project managers in an effort to match the needs of a project’s stakeholders and those of the execution team (OCG 2009, 17). The risk theme describes how project managers can address various risks that may affect the project’s outcomes negatively. This theme is closely correlated to the theme of change that describes how various aspects of the project can be acted upon in a manner that enhances the quality of outcomes as well as the effectiveness of various project activities and processes. Finally, the theme of progress is concerned with the need to carry out a continuous assessment of various project plans and processes so as to ascertain deviations from approved plans (Sargeant et al. 2010, 33). 1.3 Processes in the PRINCE2 Project Management Framework According to OCG (2009, 113), PRINCE2 project management framework is inherently process-based and characterized by seven processes that guide and direct project managers on how to successfully deliver a particular project. The processes guide decision making by project managers throughout the project’s life cycle right from pre-project through to the final project delivery phase. These processes include: the process of commencing the project; directing; initiating; controlling; managing product delivery; managing the stage boundary; and closing the project. 3. Select FIVE of the PMBOK knowledge areas which you consider to be the most important and in 500 words critically appraise how they add value to project management methodology. In this section, I analyze five of Duncan (1996)’s nine project management knowledge areas. These include project integration, cost, quality, time and risk management. I regard them as being particularly critical in influencing the success of any particular project. 3.1 Project Integration Management According to Duncan (1996), the project integration management knowledge area provides a description of the processes that are essential for proper coordination of various project elements. It comprises project plan development, execution and change control. Project planning is particularly important because it outlines specific project processes in different project phases (Duncan 1996, 42). Thus, it is imperative for project managers to be well versed in various aspects of project integration management to ensure the success of the project. They should adopt project methodologies that are capable of providing effective solutions in terms of integration of a particular project to ongoing processes (Charvat 2003, 5). 3.2 Project Cost Management Project managers are usually required to engage in resource planning and instituting various cost control measures with the aim of ensuring that costs remain within the budgeted cost estimates (Duncan 1996, 73). Failure to do so can result in considerable cost overruns beyond budgeted cost estimates. Project managers should choose a project methodology that supports effective cost estimation, allocation and control. Such a methodology should allow for the identification of opportunities to achieve cost reductions such as through minimization of overspending on specific project activities and processes. 3.3 Project Quality Management Project quality management entails quality planning, control and assurance as they relate to the various project processes (Duncan 1996, 83). Each of these facets of quality management is important because it determines project evaluation outcomes in relation to meeting various stakeholder expectations. As a result, project managers should choose a project methodology that promises to ensure effective quality planning, assurance and control with particular reference to stakeholder needs and expectations. 3.4 Project Time Management Project time management includes managing various aspects of the project to ensure that the project is completed within the set timelines (Duncan 1996, 59). Poor project time management may affect almost all aspects of a project from its costs, risk exposure and quality of outcomes. As such, the duration of a project is a major constraining factor which makes it necessary that project managers adopt project management methodologies that enhance proper time management so as to avoid late delivery of a particular project. 3.5 Project Risk Management Project risk management is the identification, analysis and response to various projects risks that may influence the achievement of project goals and objectives (Duncan 1996, 111). Project managers should always strive to ensure that they establish robust risk identification systems and mechanisms, risk quantification, response and overall control (Raz & Michael 2001, 15). Failure to do so may undermine the achievement of desired goals and objectives. Project managers should adopt those methodologies that promise to identify, quantify and respond to individual project risks appropriately. 4. Analysis of an Engineering Management Project, which includes the successes and failures within the project and any lessons learned from the project. The Hong Kong Natural Gas Pipeline case study by the Project Management Institute (2014) presents details of the partnership between the Hong Kong Government and the Central Government of the People’s Republic of China regards the construction of a natural gas pipeline that would link Hong Kong to mainland China’s natural gas fields. This pipeline would supply Hong Kong with natural gas a part of the two countries’ memorandum of understanding on energy collaboration between the two countries. The new pipeline would link Hong Kong to Second West-East Gas Pipeline which - the world’s longest natural gas pipeline stretching for approximately 8, 600km. The construction of the new pipeline was a highly complex undertaking that necessitated the need for excellent project management capabilities to deliver it successfully. Among other challenges, there was the issue of constructing the pipeline through the world’s busiest maritime and marine channels. Coupled with shallow waters, a dredged marine channel, presence of numerous anchorage areas as well as an existing subsea pipeline in the region, the project needed substantial engineering works and an effective project management methodology to deliver it successfully. The project faced a number of challenges ranging from time and budget constraints, double regulatory jurisdictions, language barriers, environmental approval requirements as well as complex engineering groundwork (PMI 2014, 2). These called for proper planning and effective control measures to address these issues. As a result, before project’s initiation phase, members of the project team engaged in thorough planning and scheduling to enhance its delivery within budget and time constraints. One area where the effective projective management skills and capabilities were apparent was in the issue of project time management. According to Wilson (2015), project time management is particularly important due to its influence on other aspects of the project such as cost and risk management. Where project delivery falls behind schedule, there is the consequence of increased variable costs such as operational and production costs (Wilson 2015, 76). The project team in the building of the Hong Kong Natural Gas Pipeline initiated and adopted various time-tested project execution methodologies such as the waterfall methodology (Project Management Institute (PMI) 2014, 2). Under this method, the project was divided into different stages with various project activities and tasks being completed before commencement of the next tasks that were incremental in nature. An example is where the project team embarked on ensuring that the sea dredging was completed before setting out to lay the under-sea pipeline (PMI 2014, 2). Moreover, there was use of project control and monitoring strategies such as critical path monitoring (Daley 2013, 528) to ensure that all project activities were completed within scheduled timelines as well as within budgeted project estimates. Besides, any project changes had to be subjected to a rigorous change management process for consideration and consequent approval. This ensured that most project activities were executed as scheduled. Another aspect that affects project time management is to do with communication. Most projects are characterized by project team members from different sociocultural and ethnic backgrounds. Under such circumstances, various communication challenges are experienced. This includes language barriers which negatively affect overall project coordination and execution. The outcome is poor quality project products that fail to meet the needs and expectations of different stakeholders. This may require reworks in areas that are of poor quality which results in cost overruns and delayed project delivery. In this case, the project team members took various measures that enhanced the communication process and resulted in effective teamwork and coordination (PMI 2014, 2). This ensured that although the project was enormous in scope and size, it was successfully delivered within the set timelines. The project managers also engaged in effective project quality monitoring, control and assurance. According to (Wilson 2015, 134), project quality can be enhanced through instituting various measures such as carrying out third part process and activity inspections. These are normally carried out by project managers who may engage in both scheduled and unscheduled management inspections. Such inspections normally target project areas that are considered as critical in influencing overall project acceptance rates from key stakeholders. For instance, project managers carried out daily site visits as well as sudden and abrupt walkthrough through various project processes. This ensured that the project outcomes were of desired quality and thus acceptable. Other areas that demanded effective project management include communication challenges since the project team members spoke different languages including English, Chinese, Putonghua and Cantonese. Furthermore, legal regulations presented another challenge with both the Chinese and Hong Kong governments requiring clearance for the project in their individual jurisdictions. Besides, the project had to undergo clearances in over 30 local authority jurisdictions. This further contributed to additional legal constrains that affected the project delivery time. The project team members were able to address all these issues throughout the project life time resulting in a highly successful project management exercise. The team of engineers’ design for the project incorporated all the environmental and physical issues that demanded consideration so as to ensure that all stakeholder demands and interests were met. In addition, in an effort to address the complex engineering groundwork, the team of engineers’ design for the project incorporated all the environmental and physical issues that demanded consideration. In addition, there was close coordination between the Hong Kong stakeholder demands and interests were met. Surprisingly, there were no reported failures with this particular project in terms of project management aspects. All legal huddles were effectively addressed. Communication barriers were resolved with the adoption of multiple languages with English and Chinese being used for official documentation and other official communications. The project was able to comply with all the stringent environmental approval requirements. The overall product was a natural gas pipeline linking Hong Kong to China’s Second West-East Gas Pipeline, within budgetary and time restraints. It is thus clear that effective project planning, execution, monitoring, control and evaluation are vital in ensuring successful project management. Overall, applying the guidelines as set out in the Project Management Body of Knowledge (PMBK) can go a long way in ensuring effective project management and achievement of desirable project outcomes. 5. Reference List Charvat, J 2003. Project management methodologies : selecting, implementing, and supporting methodologies, and processes for projects. Wiley, New York. Daley, S 2013, Project 2013 In Depth. Que Publishing, New York. Duncan, WR 1996. A guide to the project management body of knowledge. Project Management Institute, North Carolina. Office of Government Commerce, 2009, Managing successful projects with PRINCE2. TSO, London. Project Management Institute 2014, Hong Kong Natural Gas Pipeline Case Study. Viewed, April 29, 2015, http://www.pmi.org/Business-Solutions/~/media/PDF/Case%20Study/HK_Pipeline_casestudy_v3.ashx Raz, T & Michael, E 2001. ‘Use and benefits of tools for project risk management.’ International Journal of Project Management, vol. 19, no. (1), pp. 9 -17. Sargeant, R, Hatcher, C, Trigunarsyah, B, Coffey, V, & Kraatz, JA 2010, Creating value in project management using PRINCE2. Wilson, R 2015, Mastering Project Time Management, Cost Control, and Quality Management: Proven Methods for Controlling the Three Elements that Define Project Deliverables, FT Press, New Jersey. Read More