Background
The paper mainly focuses on a project that aims to install an interceptor which is a plastic waste collection machine. The main aim of the state government is to install the Interceptor on the Brisbane River to prevent unwanted waste from reaching the sea. The paper develops a pre-project work that requires proper analysis in order to highlight the needs of the project. Additionally, the paper also prepares a proper business case in order to summarize the cost-benefit analysis of the project and further elaborates on the required business need. Moreover, the paper also evaluates the risk that occurs during the project and further discusses mitigation strategies for each of the identified risks.
It is identified that installation of the Interceptor at the Brisbane River is needed to prevent tons of plastic in the seawater. The accumulation of plastic mainly makes up around 80% of all the marine debris at the surface of the water to deep-sea sediments. The marine species ingest those plastics, which causes severe injuries and death among them. The plastic that is accumulated generally decomposes very slowly by breaking the plastics into microplastics which further damages the sea life. In addition to this, it is identified that plastic also creates a physical threat within the marine life and additionally, it also has a chemical threat (Zhongming et al. 2019). Once the plastic is absorbed by chemical pollutants from the surrounding water bodies, it transports to great distances with the ocean currents. The accumulation of plastic not only degrades the quality of the water but also causes ingestion, entanglement as well as suffocation among the marine species. In order to resolve such issues and to prevent plastics into seawater, interceptors are necessary as they stop plastic from getting into the water bodies and reaching the seawater (Fang 2020).
It is identified that the installation of an Interceptor helps in stopping the plastic from entering the Brisbane River, which helps in saving the marine lives and further helps in improving the quality of seawater. The prevention of plastic from entering seawater is also one of the most significant steps for avoiding water pollution and further helps in avoiding negative impacts on the environment (Sakaki, Ghassemi and Keyvani 2019). The interceptors help in collecting plastic waste floating on the water surface between the two barriers, and thus, it can be helpful in resolving the issues that are associated with plastic in seawater.
Business case
The project mainly focuses on the installation of an interceptor which is a plastic waste collection machine on the Brisbane River. It is identified that earlier, it was quite difficult to stop the unwanted waste from reaching the sea, and as a result, the sea got contaminated. The contamination of the sea not only affects the quality of the water but also affects the lives of both flora and fauna. In order to avoid such issues, the government decided to install an interceptor on the bank of Brisbane River so that all the plastic waste can be easily collected and it becomes very much easy to stop the unwanted waste from reaching the sea. The technology is identified to be quite new, and therefore, successful implementation was identified to be evident worldwide.
Significance of Interceptor Installation
Cost-benefit analysis
The cost-benefit analysis that is undertaken for the installation of the Interceptor is provided below. The ROI of the project is around 1.3628, and the overall NPV of the project is around $99,884.30, which means the undertaken project is very much feasible.
Project Cost-Benefit Analysis |
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Analysis Variables: |
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Discount Rate Used |
5.00% |
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Annual Benefits |
$ 40,000.00 |
|||||||
Annual Operational Costs |
$ 10,000.00 |
|||||||
One-Time Development Cost |
$ 30,000.00 |
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Year of Project |
||||||||
0 |
1 |
2 |
3 |
4 |
5 |
TOTALS |
||
Economic Benefit |
$0.00 |
$ 40,000.00 |
$ 40,000.00 |
$ 40,000.00 |
$ 40,000.00 |
$ 40,000.00 |
||
Discount Rate |
1.0000 |
0.9524 |
0.9070 |
0.8638 |
0.8227 |
0.7835 |
||
PV of Benefits |
$0.00 |
$38,095.24 |
$36,281.18 |
$34,553.50 |
$32,908.10 |
$31,341.05 |
||
NPV of all BENEFITS |
$0.00 |
$ 38,095.24 |
$ 74,376.42 |
$ 108,929.92 |
$ 141,838.02 |
$ 173,179.07 |
$ 173,179.07 |
|
One-Time COSTS |
$ (30,000.00) |
|||||||
Recurring Costs |
$0.00 |
$ (10,000.00) |
$ (10,000.00) |
$ (10,000.00) |
$ (10,000.00) |
$ (10,000.00) |
||
Discount Rate |
1.0000 |
0.9524 |
0.9070 |
0.8638 |
0.8227 |
0.7835 |
||
PV of Recurring Costs |
$0.00 |
$ (9,523.81) |
$ (9,070.29) |
$ (8,638.38) |
$ (8,227.02) |
$ (7,835.26) |
||
NPV of all COSTS |
$ (30,000.00) |
$ (39,523.81) |
$ (48,594.10) |
$ (57,232.48) |
$ (65,459.51) |
$ (73,294.77) |
$ (73,294.77) |
|
Overall NPV |
$ 99,884.30 |
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Overall ROI |
1.3628 |
Essential business requirements
The essential business requirements that are associated with the work of the project are mainly elaborated below:
- Human resources: The human resources involved with the installation of the Interceptor are mainly listed below:
- Project manager
- Project planner
- Financial manager
- HR manager
- Installer
- IT manager
- Workers
- Suppliers
- Sponsors
- Financial resources: The total amount of budget that is mainly required in order to undertake the installation of the Interceptor at the bank of the Brisbane River is around $30,000.
- Equipment: Additionally, steel equipment, rods and other machinery are needed for assembling the Interceptor, which will be installed at the bank of Brisbane River.
The various business requirements will be delivered by the suppliers so that the Interceptor can be installed at the Brisbane River to prevent plastics within the seawater.
The risks which mainly arises during the installation of the Inceptor are mainly elaborated below. Additionally, proper mitigation strategies for each of the risks are also discussed.
Schedule slippage: During the installation of the Interceptor, if the project team does not take the right initiative, then it will be quite difficult to meet the deadline of the project. Improper management of the project schedule helps in delaying the work of the project, and as a consequence, it becomes quite tough to deliver the project work within the assumed timeline (Mican, Fernandes and Araujo 2020). In order to manage such issues, it is quite essential to track the progress of the project on a regular basis so that any changes within the schedule can be identified and the manager gets the correct initiative or opportunity of effectively handling the project work quite efficiently. This helps in delivering the work of the project within the assumed deadline.
- Budget shortfall: If the total cost that is allocated for the project is identified to be insufficient, the team members of the projecct experiences a lot of difficulties due to shortage of budget. Due to the lack of budget, it becomes very much difficult as well as challenging to install the Interceptor and start the operation (Galli and Lopez 2018).In order to avoid the risk, it is quite necessary to use EVM from the initial project phase for checking the cost variances of the project such that the managers of the project can be capable enough to take the correct action at the correct time. Successful management of the budget helps in avoiding financial hurdles during the project and further helps in accomplishing the goals and objectives of the project on time.
- Inexperienced team: Due to the lack of experience of the stakeholders who are involved with the installation of the Interceptor, it becomes very much challenging to undertake the project work quite properly (Vujovic et al.2020). Additionally, it becomes quite difficult for the project team to identify and handle the project uncertainties properly, which further impacts the output of the project. In order to resolve the issue, it is very much necessary to hire experienced team members so that they can able to handle any types of uncertainties of the project well and can be able to accomplish the goals and objectives of the project quite successfully. Moreover, a training facility must also be arranged for the project team in order to train the employees so that they can be able to finish the work of the project successfully.
- Improper communication: It is identified that due to improper communication between the workers, it becomes very much difficult to make a correct decision. Improper communication also causes conflicts among the project team, which further results in a number of challenges and uncertainties due to which the project work can get delayed (Dandage et al.2018). In order to mitigate such issues, it is quite essential to organize weekly meetings so that the team members can be capable of discussing the right information such that the project team make a correct decision related to the project, which is identified to be beneficial for the success of the project.
- Improper operations: The Interceptor that was installed was not operating properly, and as a result, it became quite difficult to stop the prevention of unwanted waste from reaching the sea; thus, the purpose of the project will not be achieved seawater will get contaminated (Shayan, Pyung Kim and Tam 2019). In order to avoid the operational issue, it is quite necessary to check the functioning of the Interceptor on a regular basis so that any operation-related issues that occur can be fixed, so it does not have a negative impact on the operations of the Interceptor. The Interceptor must also be tested on a weekly basis in order to avoid operational hurdles for maximizing the operational efficiency of the system.
- Lack of training:The person who operates the interceptors is not much trained then; they can experience a lot of issues and challenges in successfully accomplishing the goals and making the entire Interceptor properly work. In order to avoid such issues and to make the Interceptor operational, it is very much necessary to hire experienced workers who have proper training as well as skills in operating the Interceptor so that the system can work properly and can be able to collect all the floating plastics from the Brisbane River so that it will not reach the seawater. Additionally, the government can also arrange proper training facilities for the non-skilled workers so that they can also make the system fully operational and can use it to accomplish the goals and objectives of the project.
Conclusion
It can be concluded that the installation of an Interceptor at the Brisbane River would be very much advantageous as it would not only help in improving the quality of the water but also helps in preventing plastics from getting into the seawater. The paper also undertakes a proper cost-benefit analysis of the project in order to check the financial feasibility of the project, and it is identified that project that is undertaken is very much feasible as the project ROI is around 1.3628. The paper also identifies the risk that the project team can experience and further identifies proper strategies that are helpful in mitigating each of the risks that are identified such that the work of the project does not get impacted negatively.
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