Project Management in Engineering and Construction - Coursework Example

Executive summary

The project on the generation of power using wind turbines will be beneficial to the British government because it shall power the new enterprise park on the north east coast of England. Project, management involves a lot of elements and being a project manager in this project; a well-analysed report will be required. In this paper, the report looks the competencies and skills required by the manager. The scope of the project, as well as the objectives of the project, are well defined. It also looks at the project life cycle which incorporates most of the things learnt in class. The projects also have risks that are involved and the risk management procedures taken. Finally, the report looks at the investment appraisal of the whole project.

Task 1

1. Types of project

Engineering and construction projects

These are projects that require students to build something to demonstrate their understanding of what they have learned in class. The project can be based on a racing car, architectural building, a musical instrument or a bridge. The project gives the students to demonstrate how it works and what measures can be taken to improve on what they have built. Intense research has to be done and various tests to determine its validity (Kuhn, et al. 2015). For example, fixing a jet engine on a sports car to break the speed of sound record, is a project which will take time, intense research, testing and will incur a lot of costs.

Measurements, experimental or research projects

In this projects, design is made and then it is exposed to various variables to study the effect of each variable on the object. After the experiments, the results are presented in a report which usually include the problem being studied, data collected, different variables, results and the conclusion of the tests. For instance, developing a new drug or vaccine.

Search, find projects

These are projects where a topic is chosen and research is done about it. Students would then present their findings in summary form. Students can find information about the subject on the internet or libraries.

Scope management

It is getting the right information that should be included when starting a project. Includes the features of the product or service that would meet the essential needs of the stakeholders. Scope management contains the project scope and the product or service scope (Karl, 2015). In the segment, a person should include the various means that will be used to achieve the objectives sets, the workability of the project as well as the financial implication of the project. The tools to use in scope management are visualisation tools which will help in presenting the project visually in the form of graphs and tables. The visualisation tools make the understand ability of the project scope easier for the investor or the person to whom it is presented.

Importance of Gantt charts

Gantt charts are paramount in every project for they help in timely completion of the project. It eliminates confusion by keeping the users on track. The chart keeps everyone who is participating in the project on the same page hence fewer chances of misunderstanding. It helps in allocating resources efficiently to the different departments of the projects hence maximising the use of resources. It keeps the cost of the projects within the budget line (Kar, 2015). It also helps in decision making for the users can look ahead of the project and make a decision that will entail the future aspects of the project.

task

precedence

DAYS

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Critical path (0-a-c-f-h=22)

How to decide if a project is successful

A project is successful if it has met all the set objectives that had been laid out. If there is stakeholder and customer satisfaction, then, the project must be successful. When the final delivery of the project is efficient and has excellent outcomes. Then, it can be said that the project was successful having met the deadline on time as well as maintaining the budget lines (Verzuh, 2015).

Managing project change

As the project manager, it is good to know where the change is coming from and whatare the causes of the changes. By so doing, the change control board can be changed to review and prioritise the changes presented. Prioritisation will determine whether the change is critical to the project after which the right cause of action will be taken (Verzuh, 2015). Communication is essential to let everyone know of the changes to take place to avoid confusion. The change log is updated, and the right steps are taken to change all the necessary documents related to the change.

Quality project audits

Audits are essential in every project because they help identify the risks involved in the project by prioritising areas that need much attention. It also helps in documentation and process walkthroughs which help in gaining more understanding of the procedures being applied to the project. The audit helps in identifying trouble gaps where controls and procedures are not carefully designed. It also helps in tests to ensure that all the controls are working adequately, and finally the audit helps in reporting of the project providing recommendations according to the observations made.

Task 2

Introduction

The project entails the installation of wind turbines off the north-east coast of England. The turbines are new totalling to ten in number with an estimated cost of 1 million British pounds. The wind turbines are exposed to all weather conditions. The project is as a result of a successful tender by snowball limited with the budget estimate of 14 million British pounds and the wind turbine will produce enough energy to give the government enough power to power up their new enterprise park which will generate up to 30,000 jobs when completed. The enterprise park will be ready for use by 2017. However, the wind turbine has to be in proper working conditions. In this project management report, it shall look at the various concepts that entail the project to give a detailed overview of the project.

Objectives of the projects

• To finish the installation of the wind turbines timely

• The success of the project should usher in the expansion procedures of the company

• Coordinate the technological process, finances and administration of the entire project

• Coordinate and supervise all the stakeholders involved in the installation of the wind turbines according to the solid work plan

Project scope

Justification

The project is government ran since the government imitated it is that it could be able to generate more power to power up the new investment of a park that will be located on the north east coast of England. The park shall be an income generation project for the government hence the need for the energy. The government preferred the wind energy because it is a resource that is natural and untapped, also, wind energy does not pollute the environment (Verzuh, 2015). Furthermore, the area is prone to strong wings and many weather patterns which are conducive for producing wind-generated energy. It an advantage for the government since the wind will never run out as compared to other sources of energy. It is also cost effective for the government hence saving the taxpayer a lot of money.

Product scope

The project will involve the use of massive machinery for the installation. Different machines will be used by the various stakeholders each specialized for his work. The wind turbines are massive and will require special transportation to the site (Jugdev, 2002). The wind turbines will offer sufficient amount of electricity which will serve the northeast coast of England and its environs for a long time. The final result of the project is ten turbines that will produce enough energy to power up the new government investment of 50 million British pounds

Acceptance criteria

The deliverables must meet the desired criteria set by the project engineers so that proper and quality work can be produced. The acceptance criteria must also meet the international standards of quality machinery and reliable wind turbines which shall not course havoc on the environment. The acceptance criteria for this project are well set out and will enhance quality work that is secure for the generation of power.

Skills and competence by the project manager

The project manager is essential for the progress of the project. For the project to be successful, the manager must have a set of skills and competence to be able to run the project successfully. A project of this magnitude requires a project manager who is up to the standards.

Inspires and shares a vision

The project manager must be a person who can be able to motivate the various stakeholders in the project and share the vision with them. Because of the different challenges that occur during the project, some of the stakeholders may lose hope or give up especially when part of the turbine wing collapses. The project manager must be able to give them renewed hope and a vision that will drive the stakeholders in the project to completion of the project.

Good communicator

The manager must have the skill to communicate with the different people working on the project. Since they are all on different levels of responsibility, he must have that leadership skill of communicating with all of them without disregarding some and honouring others (Jugdev, 2002). It is a leadership skill that will enhance the completion of the project on time. There should be clear communication between the various stakeholders on the project manager to eliminate instances of confusion. Clear feedback and expectations from the project manager are helpful in getting the project on course.

Integrity

The action of the project manager will set the mood of project teams on the ground. For a project manager to demonstrate excellent leadership skills, he should be committed to his job showing high levels of ethical practices because a project of this magnitude does not have room for errors or unethical practices that can lead to injury of the engineers on the ground. Leadership that is based on integrity is the values that all the stakeholders in the project share. They should show honesty, reliability and walk the talk to set a good example to others.

Enthusiasm

Because of the expectations of the project, it requires the project manager who is not negative but one with an enthusiasm which has a can-do attitude which works well in encouraging the teams. The stakeholders of the project will tend to follow a person who has a can-do attitude making them believe that all the handles being faced in the project can be controlled and eliminated only if the teams have a positive attitude.

Functional competency

This is the ability of the project manager to perform a range of task effectively to produce outcomes that are specific and complete. Multitasking and managing the various aspects of the projects requires a manager who can deal with several issues at a time without being overwhelmed.

Project lifecycle

Initiation phase

In this phase, the project objectives are identified which in this case it is an opportunity to produce more power via wind turbines. The opportunity is documented with the appropriate solutions set in place. A feasibility study is carried out in the area of the project to determine whether the place qualifies for the project. Also, the feasibility study will check on costs, accessibility and other recommended solutions to make the project a success. Once the recommendations have been approved, the project will be initiated and other major deliverables identified.

Planning phase

The project solution is further developed into details so that it can meet the project objectives. In this phase, the project manager together with the team identifies the overall work to be done, risks and resource required and the strategy for acquiring them. In other terms, this is known as scope management where the team will outline tasks, time frames dependencies and activities (Jugdev, 2002). Project stakeholders are identified and a good communication network is set to keep the stakeholders informed. At this stage, all the threats are accessed and dealt with appropriately. Finally, the whole plan is documented with all the necessary details and is now ready for execution.

Implementation phase

In this phase, the project plan is put into action. Constant communication is maintained as progress is monitored continuously. Any changes that may occur during this period are handled by the project manager and are evaluated (Kovacic, 2015). All the teams involved carry out their stipulated duties efficiently and in case anything happens, it is the work of the project manager to bring the project back on course. Sponsors and key stakeholders are kept informed of the progress according to the agreed mediums. Status reports are also produced as the project continues. The deliverables in the project should also be reviewed against the set acceptance criteria for approval. Once that is done, the project is ready for close.

Closing phase

In this phase, handing over of the deliverables and the project to the customer is done. In this case, the project documentation is handed over to the ornery, supplier contracts are terminated, and communication is put across to all stakeholders of the closure of the project. The final part involves conduction of an evaluation of what went wrong and what went right during the project. The wisdom gained during the project is transferred to the customer or organisation that has taken over the complete project.

Risk and risk management

The project will face the following risks and challenges in the course of completion. One of the risks is resource risk which is experienced in the first stage if the team fails to get everything right which can lead to underfunding and equipment (McNeil, et al. 2015). Financial challenges and risks will also be encountered due to changes encountered in the project. Quality risk involves risk due to the level of quality work done. If quality is not met, the turbines may not work appropriately. Other challenges that the project may face are the lack of proper equipment or breakdown of machinery which can derail the completion of the project. Because of the risks involved in this project, risk management technique will have to be employed to ensure that all the risks have been mitigated. However, since during planning all the risks had been identified, it will be easy for the manager in respond to the risks and how to deal with them. Risk man agent is essential for such a massive project that involves millions of pounds and delicate machinery. However, no project can be completed without any risks. What brings about the difference is how the risks will be handled the moment they present themselves? For instance, a manager can mitigate a risk even before the risk is evident. Such measures will lead to the completion of the project on time.

Investment appraisal

It involves accessing whether the project is worthwhile or the project will be a failure. Different techniques are used in appraising of projects (Locatelli, et al. 2016). In most cases, decisions will be made depending on the results of the appraisals. They show how profitable a project is, completion dates and the return on investment on the projects. In this case, the government needs to know what will be the cost implication of the energy generation project considering they are investing millions of shillings into this project.

The following techniques are used in the appraisals.

Accounting rate of return

It compares the profits that the company will get from the investment to the initial amount that will be invested into the reject. ARR is calculated as an average annual profit that is expected over the lifespan of the project compared with the overall amount of capital invested. ARR is essential in making decisions because it will help the management in evaluating the best strategy to take in implementing the project.

Payback period

This is the length of time that the investment would take to repay back its initial investments. The time will be determined by the level of cash flow and profits. However, it is suitable for small business and not big business. However, for this project, the payback period will take longer than expected. Since the government various factors run it may affect it such as a change in governments thus derailing the payback period.

Discounting cash flow

It applies a rate that is discounted at the present day equivalent to the cash flow of the company. The discounting methods used in this case the Net present value NPV and internal rate of return IRR. The company uses this method to project it future cash flow and the performance of the project. These methods have to be used to ensure the sustainability of the project as well as future projections of the government on the park investment.

Reference

Jugdev, K. and Thomas, J., 2002. Project management maturity models The silver bullets of competitive advantage. Project Management Institute.

Karl, W., 2015. Defining the project scope: context and use case diagram.

Kovacic, I. and Zoller, V., 2015. Building lifecycle optimization tools for early design

phases. Energy, 92, pp.409-419.

Kuhn, J., Giersing, J., Jumbe, E., Beierbahs, E. and Søvik, O., 2015.Applying project

management tools in entrepreneurial ventures (Doctoral dissertation).

Locatelli, G., Invernizzi, D.C. and Mancini, M., 2016. Investment and risk appraisal in energystorage systems: A real options approach. Energy, 104, pp.114-131.

McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,

techniques, and tools. Princeton University Press.

Pinto, J.K., 2014. Project management, governance, and the normalization of

deviance. International Journal of Project Management, 32(3), pp.376-387.

Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.