Managing Risk for an Uncertain Future A Project Management Perspective - Assignment Example

Name: Tutor: Course: Date: Project management Introduction In every project that an organization is involved in, planning, organizing and controlling the allocated resources are critical to the success of the project. While carrying out the project management, it is vital to define the beginning of the project and create a view of the outcome of this project. The main aim of the project is the boundary between the success of the project and its failure. A successful project is one that fulfills its purposes. Therefore, the primary challenge in a project is to achieve the aims of the project. The Heathrow Airport T5 project was a project that was initiated so as to solve some of the problems that had been faced by the air transport industry in the UK. Everything about the project was set; from the budget to the time schedule. This project was even purported to have been a mega project that would open up a 21st century entry to Britain (Brady and Davis, 2010). However, a project that was well on track to completion and was about to be opened faced multiple problems on the day that it was supposed to be opened. Various factors contributed to the failure of this mega project. This paper shall discuss the various elements that were flawed or underperformed and contributed to the failure of this project. These elements shall be discussed with respect to the business case, the requirements planning and the project management plan. A summary of four lessons that were learnt for the project shall be made in terms of recommendations. These shall be discussed in part A of the paper. In part B, one of the areas of the problems discussed shall be extrapolated so as to find out how it applied in a different project. Part A Elements of the business case that were flawed One of the reasons for the establishment of the T5 project was to make air travel in Britain a calmer experience than it was before. The idea was to make traveling comfortable to the passengers so that they would find it easy at the airport. This included making parking easy for them at the airport. However, the parking facilities at the airport were found to have been not ready for the staff themselves. From the case study, it has been stated that some overflow car parks for staff had not been opened early in the morning (Brady and Davis, 2010). This implies that staff was not ready to begin their service to passengers on time. They had to find their parking space first before settling down to begin their work. This would cause a major delay in the provision of services and the passengers would receive late service. As a result, the essence of establishing the project failed because it did not save time for passengers and did not offer them on time services. Therefore, it would not make them comfortable at the airport. In addition, the business case failed in providing guidance to passengers at the airport. There was the problem of lack of signage and this was a major problem since the airport was very enormous and one check-in attendant reported that it took one hour for someone to get to the right place. For an airport whose intention was to make air travel comfortable, it would be appropriate for proper signage tom be installed so that people would know where exactly they wanted to go. Walking around the airport while trying to locate the right place would be a waste of time for the passengers. There was a problem of finding the location of security checkpoints. Due to this, there were long queues that were found at the checkpoints and this meant that the process of checking for security would take a lot of time. Such long queues would compromise the quality of the security checks that would be done since the attendants would try to hurry and save time. The airport was therefore being vulnerable to security loopholes that would be dangerous to the people at the airport and in the country. The workers at the baggage handling area also complained of not being able to use their computer systems. This is because they could not log in to their computers. In addition, staff could not operate the Resource Management System that had been provided for use in allocating the staff who would handle baggage to their duties. Therefore, staff was not able to carry on with their duties and some were not aware of the tasks that they were supposed to do. Baggage handling is important at the airport (Davies et al, 2009). Therefore, the whole business case would fail if they could not properly handle the baggage at the airport. Another problem that indicated the inability of the airport to provide the services that were required included the lack of completion of staff accommodation areas together with the routes that staff would use in accessing the airport. Control of temperature at the airport could not be done automatically and this means that the environment would not be conditioned for passengers. The aim of starting up the T5 project that would make air transport comfortable in Britain was not going to be achieved if the services at the airport were absolutely below standards. Elements of the requirements planning that were underperformed/ flawed From the case, one of the elements of requirements planning that were flawed included poor planning for systems delivery as well as integration. This problem is one of the leading causes for failure by international airports to be opened on time (Davies et al, pp. 19). For the T5 project, the baggage handling system was not well planned since it had many flaws. The staff could not use the system since most of them could not log on to their computer systems. In addition, there were a lot of delays in handling baggage. There was also the problem of grid-lock in the system since the hold bags were put into the BHS at a faster rate than they were loaded at the aircraft. This means that the planning for this system was not effectively done so as to limit these problems. The software used for handling the system also had some issues. It implies that the selection of the software was not effectively done to limit the filter problem that was experienced. This problem would have been identified and solved during the selection of the software for use in handling baggage. Another failure in requirements planning is the lack of proper training of staff on use of the resource management system that would be used in allocating staff to their duties. The staff should have been trained on how to use this new system prior to the opening day of the airport. This failure in proper training was also experienced in the jetties and airbridges. The BA staff lacked familiarity with the equipment. The equipment also had some calibration issues which required resetting by engineers. It means that the planning for this equipment did not consider the fact that staff would require training and the equipment was set before the opening day. The lifts and escalators in the airport were stated to have been non-operational. This means that there was a flaw in selection of the proper equipment to be used for lifting. The requirements planning did not select equipment that was fully operational and this was a major flaw since the lifts and escalators broke down on the day of opening. Elements of project management that were flawed Project management covers a wide variety of elements based on what the organization would like to achieve. The most important factor that organizations seek when carrying out project management is to bring change in the organization (Crawford et al, 2006). This change has to be in form of improving the operations in the organization. One of the elements that could be targeted while initiating a project is the provision of better services to customers. This requires effective planning on how to achieve the objective. In the Heathrow project of terminal 5, one of the aims of this project was to make the airport a world class act that would provide comfortable air transport. This means that the target was to ensure customers were comfortable. As such, the project targeted providing better services to customers than what was being provided. However, the project failed in delivering this aspect of the purpose since the services that were discovered to have been offered prior to opening of the terminal were not up to the intention. For instance, the passengers found it difficult to find their way in the airport due to lack of signage. While the airport would take pride in the size of the airport, the quality of services offered would be the main element that customers would enjoy. Therefore, they required proper direction on where they would be headed to while at the airport. In addition, the management of this project did not consider how best to set up the car parks for staff. It was stated in the case by Brady and Davis (2010) that staff was affected by car park problems and this caused delays of more than ten minutes. Such a delay would affect the time taken to provide services to customers. It would therefore be a negative factor in the project since the project was expected to save time spent at the airport by offering timely services. This problem can be attributed to failure in appropriate planning of the project. The plan should have properly accounted for staff parking. Ineffective planning of the staff search and points of control led to serious delays of up to twenty minutes. In addition, there was failure by the X-ray machine to open up in the Apron North search post. This meant that there had to be some delays that caused staff search to delay. Further failure in planning was demonstrated when there was more turn up of staff at the search points than was expected. Although there had been close cooperation between BA and BAA to get the projected requirements of throughput for each location, there was an increased turn up in staff than had been projected. Therefore, the forecast made in the project was underperformed. Another element of project management that failed was that of organization of the project. Proper organization would result in proper running of facilities and equipment during the opening day. However, there were many facilities that failed to operate effectively. The escalators and lifts did not operate as expected. In fact, they both failed to operate. In addition, the baggage system failed to operate as expected. This resulted in delays in baggage handling. The failure by the software filter means that the organization of the system had not been done effectively. There were also issues on the calibration of the equipment that led to the loss of power. This equipment had to be reset by engineers. The flaw in organization of the project management was also evident in the way staff was not trained on how to use some of the systems and equipment that were to be used at the airport. For instance, the resource management system that was to be used for staff allocation was not entirely familiar with the staff. This led to delays in the operation of staff since they did not understand their roles and duties. Such a flaw would seriously dent the reputation of a mega project such as the T5 project. Further, there were jetties at the airport. However, most of the staff was not familiar with these facilities and this drove them out of the limits. Lessons and Recommendations One of the lessons that have been learnt is that proper planning is mandatory for the success of a project. This includes effective coverage and proper forecasting of all the elements of the project. In addition, organization of a project should cover the whole project and all project details so as to ensure that the project objectives are achieved. Another lesson that has been learnt is that a project should vet its progress based on the objectives that it has set. This would be vital in ensuring the objectives of the project are achieved. Lastly, while carrying out the requirements, the project manager should ensure that all equipment ordered is tested for proper functionality before they can be set in operation. Part B: The Port Adelaide (SA) Flower Farm The Port Adelaide Flower Farm project was an initiative of the Minister of Local Government in South Australia who approved that the Port Adelaide Council develops a farm that would be growing native plants (Prasser, 2006). The project was set rolling on the September of 1988. However, there were continual losses of finances in the operation and this led to the closure of the project in 1995. The aim of this project was to grow native plants. Specifically, the project was meant to grow Geraldton Wax flowers and Kangaroo paw and after harvesting, they would be exported to Japan. In addition, it would create employment in Port Adelaide especially at the time when there was serious economic recession. The council had established a body that would supervise operations of this project. However, the powers of the council to establish a body that would govern such a project were conferred through a section of the Act (199) (Audit.sa, 2013). A body was established to supervise the operations of this farm. This board was known as Port Adelaide Flower Farm Supervisory Board. The function of this board was to ensure that the project was running as planned and that the resources allocated were enough to facilitate the completion of the project. After the mismanagement of this project and its subsequent closure, various discussions were raised in parliament to find out some of the problems that led to the failure of such a promising project. Matters that were related to the establishment of this farm together with the operations and management of the project were debated for years in parliament. The project attracted so much attention because this failure had resulted in a waste of public resources and money. Questions were raised on the reason for the demise of the project that was so promising and one that would be a huge boost to the region and the country. The project was foreseen to improve the economy of both the country and the Port Adelaide region. The most important factor about the project was that it had been timely since the country was experiencing tough times in terms of recession of the economy. Therefore, the reasons for its failure had to be investigated and the important lessons leant so as to be used in future projects. Based on elements of project management, this part of the paper shall discuss the reasons for the failure of this project. It shall also provide the reasons for assessment of this part of the project. The selection of elements of project management in this project was based on the fact that project management is the backbone of the project (Aronson et al, 2013). It is through project management that the direction of the project can be taken. It can be decided whether the project will work out successfully from the process of planning, organizing, monitoring and controlling the project and its resources. Project management requires a disciplined process of planning, organizing, controlling and monitoring every aspect of the project. This includes the application of tools, skills and techniques together with balancing the competing demands of specifications for products and services. A balance of time and cost is also crucial in project management (Hobart, 2007). Management of public sector projects is an important issue because the government depends on the project to provide benefits to its citizens. This therefore requires timely delivery of expectations and effective utilization of the allocated resources; especially public resources. For the case of the Port Adelaide Flower Farm, various factors were not done in the right way and these were the reasons for the failure of this project. The problem of planning played a part in contributing to the failure of this project. The business plan of this project provided objectives that were socially, economically and environmentally wider. However, these did not relate to the critical success factor of the project. The mission of a project, the support it gets from top management, the schedule of the project, the feedback and communication are all critical factors in the success of a project (Steinfort and Walker, 2007). The project missed out on one important success factor; that the farm had to be viable commercially in order for it to achieve the objectives that had been set by the business plan and to achieve the mission of the project. Therefore, the project plan did not effectively investigate how viable the flower farm would be commercially. This is a critical element in establishment of every project. In addition, the sponsors of the project were informed that the project would provide benefits and be profitable to key stakeholders and payers of rates. This advice was given to the sponsors by council officers and consultants. However, the sponsors were not briefed adequately on the on the important risks that were associated with the project. This brings a flaw in terms of risk management of the project. In every project, the manager is supposed to define the risks that are associated with the project so as to find out ways of managing the risks (Love, 2002). These risks have to be communicated across the whole project team so as to make everyone aware of the risks that they face. In addition, the ways in which the risks should be handled should also be communicated to the team. In every project, there are risks involved. Risks are not necessarily bad; they only serve to provide a precaution so that the project can be handled in the best way possible. The business risk is one important factor that has to be analyzed by the risk management team (Flanagan, 2002). All the stakeholders will want to know what risks the organization is exposed to. In this case, the stakeholders would want to know the risk that the new project would be presenting them to. In addition, the economic risk that the project faces or presents also has to be analyzed and assessed. Whenever the risks have not been properly identified and their control measures taken, the project is vulnerable to failure (Khalili and Maleki, 2011). Many public projects have reported cases of filed risk assessment. For the Adelaide flower farm, an effective risk assessment would provide the necessary precautions so as to avoid falling victim of the risks that the project faced. For instance, the risks that were associated with areas that were prone to floods were not identified so that the floods could be curbed in case they occurred. Another failure in the planning of the business was reported in the business plan. The financial projections that were made by the plan seemed extremely optimistic. There were key technical issues that were related to the types of plants that were to be grown and these issues were not addressed. When a project plan does not provide the right projection in terms of its financial implications, the success of the project is jeopardized (Mckellar, 1991). The importance of an accurate financial plan is that it helps in providing the right direction to be taken by the project from the beginning. Identifying the right plan early enough also helps in identification and control of the activities of the project. This will lead to establishment of a structured approach that would be used in providing guidance to the project team. The projected financial plan also has to be accurate because it helps in ensuring that the allocated resources are well utilized and they serve their purposes. Misappropriation of the resources will be the result of a poor financial plan. In addition, such a problem would lead to shortage in the resources since the resources will be exhausted before they accomplish their functions in the project. This could bring the whole project to a standstill. It is therefore very vital that the financial plan that is used is accurate in estimation so as to accomplish the whole project without wasting time in stagnation of the project or bring the whole project down due to failure. The marketing plan for the Adelaide flower farm was also ambitious and could not be effectively attained. It was based on dubious information and this was a major failure since the real figures were not presented in marketing. Another deficiency in this project was in the organization of the project plan. The project was new in the industry because no one had experience in growing native plants in Australia. It was therefore important that this fact be made known in the plan of the project. The government was not the most appropriate body to carry out such a new venture since it had many other commitments and would not provide its best in such a new venture. It was necessary that this fact be made known and the plan for the project should have indicated this so that the research team of the project carries out an intensive research on viability. An effective plan would involve proper research and development of the whole project before laying the tools to start up the project (IPMA, 2008). Works Cited Aronson, Zvi, Shenshar, Aaron and Patanakul, Peerrasit, Managing the Intangible Aspects of a Project: The Effect of Vision, Artifacts, and Leader Values on Project Spirit and Success in Technology-Driven Projects, Project Management Journal, 44 (1): 35-58, 2013. Audit.sa, Special Audit Report - Port Adelaide Flower Farm, retrieved on April 23, 2013 from: http://www.audit.sa.gov.au/publications/96-97/paff/chp1.html Brady, Tim and Davies, Andrew, ‘From hero to hubris – Reconsidering the project management of Heathrow’s Terminal 5,’ International Journal of Project Management, 28: 151–157, 2010. Crawford, Lynn, Pollack, Julien and England, David, Uncovering the trends in project management: Journal emphases over the last 10 years, International Journal of Project Management 24, 175–184, 2006. Davies, Andrew, Dodgson, Mark and Gann, David, From iconic design to lost luggage: Innovation at Heathrow Terminal 5, Summer Conference 2009, Imperial College, London, 2009. Davies, Andrew, Gann, David, & Douglas, Tony, ‘Innovation in megaprojects: systems integration at London Heathrow Terminal 5,’ California Management Review, 51 (2), 101–125, 2009. Flanagan, Roger, Managing Risk for an Uncertain Future – A Project Management Perspective, University of Reading, UK, pp. 22-32, 2002. Hobart, Some Reflections on the Management of Projects in the Australian Public Sector, Australian Institute of Project Management, Australia, 2007. IPMA, ‘Research and development—the backbone of project management’ International Journal of Project Management Research, Iss. 3: 3-18, 2008. Khalili, Hossein and Maleki, Anahita, Project Risk Management Techniques in Resource Allocation, Scheduling and Planning, World Academy of Science, Engineering and Technology, 59, 2011. Love, Margaret, “Risks, Issues, and Changes—Help, I’m Drowning in Logs!” Proceedings of the Project Management Institute Annual Seminars and Symposium, 2002. McKellar, W. Time and resource management: the time plan, Engineering Management Journal, Vol 1 Iss. 2, pp. 71-81, 1991. Prasser, Scott, Overcoming the ‘White Elephant’ Syndrome in Big and Iconic Projects in the Public and Private Sectors, Faculty of Business, University of Sunshine Coast, pp. 47-64, 2006. Steinfort, Paul and Walker, Derek, ‘Critical Success Factors in Project Management Globally and how they May be Applied to Aid Projects’ in D. Baccarini (ed.) Proccedings of the PMOZ Achieving Excellence-4th Annual Project Management Australia Conference, Brisbane, Australia, 28-31, 2007. Wanna, John, Improving Implementation: Organisational Change and Project Management, ANU EPress, Australia, 2007. Read More