Control Experience In Construction Project Management

Project Budget

Project budget can be defined as the combination of various activities to be conducted in a project management process along with cost associated with each of the activity. This project management budgets are essential for getting approval for project funding that is required to complete a particular project. Therefore it can be said that approval for project funding is granted on basis of project budget prepared by management. Other advantage of preparing project budget is that it helps in implementation of cost control procedures on the activities to be performed in a project. In simple word that can be said that project budget helps in funding project and controlling cost of overall project (Kerzner and Kerzner, 2017).

This report is concerned with project of repair and maintenance in relation to Western Australian storage facility. There are three tanks that require repairs and maintenance as these kinds have become very old and their design is also very complex and outdated. Due to these tanks around 30 % of companies capacity for storage of unleaded petrol is on the verge of collapse. This would result in substantial financial loss for the company as it would affect 30 % operations of the country. In addition to that company has also required to pay $20000 per month for the environmental loss that this tank are projecting on the environment due to their outdated design.

Project budget prepared in following table describes the overall cost that will be incurred on repair and maintenance of these three tanks.

Tank 1

Tank 2

Tank 3

It can be observed in the above budgets for repair and maintenance of each tank that cost is changing according to the changes in total capacity of storage. Overall cost of conducting this project would be $663000. In addition to that maintenance cost would also be required @ 20000 per year for each of these tanks (Larson et.al, 2014). This repair and maintenance project will be cost efficient for overall operations of business organisation as it would reduce environmental fine to be paid and increase the overall capacity of company.

Time management is also very essential part of project management as a project Management process can be considered successful only when such projects completed within given time period. One time period is also essential as additional resources will be required if time of a project is which will ultimately result in more costs. In addition to that it would also result in loss of operational revenue for the company. Therefore it can be said that ineffective time management will have direct impact on financial position of the company.

Schedule

Project budget has already been prepared for the given case study, now schedule will be prepared which will include start date and completion date for each of the activity to be included in project management process. Completion of each of the activity in the project management process can also be defined as milestone in project as progress of project can be evaluated with the help of each activity (Nicholas and Steyn, 2017).

It can be seen in the above milestone chart that total time required in completion of this project would be 49 days. This means that unleaded oil cannot be stored in these three tanks for a period of 49 days. Company has to make arrangements in relation to storage of oil during these 49 days as 30% of the storage of unleaded oil is done with the help of these three tanks. In addition to that company is also required to make arrangement for various types of resources required to execute the project management process effectively and efficiently (Harrison, F. and Lock, 2017).

Gantt chart can be defined as a project management diagram that shows the main activities to be performed in a particular project along with its time line. It is a visual aid used in project management process to help stakeholders to understand the project timeline of a particular project. In this project all the activities are conducted after completion of one activity as it is not possible to conduct two activities simultaneously in this project. For example installation process cannot be started before proper cleaning and painting is completed. Project management activities and its timeline can be better explained with the help of following Gantt chart.

In this case study project use of Gantt chart technique has been used for effectively scheduling the project. This is one of the most commonly used technique that are used by Project business manager for scheduling activities in the project. Biggest advantage of this method is that it provides a visual description about all the activities and order of activities to be conducted in project management process (Liu et.al, 2018). Each task in a Gantt chart are presented with the help of a bar. Initial and end point of a bar indicates start date and date of conclusion for a particular activity. It simultaneously shows all the activities that are to be conducted in the process which can help project manager in overviewing the process.

Project Milestones

Updates can be made in Gantt chart prepared by management to review the status of progress in project management. Creation of Gantt chart is also very simple as it can be prepared in any project management software such as MS project or even Microsoft Excel. It is also easy to understand the progress of a particular project with the help of Gantt chart as visually aided techniques are easily understandable (Lock, 2016).     

Other method that can be used for the process of scheduling activities of case study project is decoration of a task list. It is one of the very simple method that can be used for the purpose of scheduling. Task list technique for scheduling is generally used in small projects due to its simplicity and Limited amount of information. This scheduling method provides very limited amount of information in relation to each activity to be performed. In given case study, project under consideration is on a large scale as 30 % of total storage is required to be repaired (Mubarak, 2015). Therefore it would be better for project management name to use Gantt chart instead of task list technique.

There are various type of resources that are required to completion of a construction project. Project given in current scenario can be considered as a construction project as it required repair and maintenance of 3 tanks that are currently storing around 30% of total unleaded oil manufactured by the company. Project management project cannot be completed without the help of various resources that are required for its completion. It is a characteristic of an efficient Project Management process to assess required resources in advance so that proper arrangements can be made at the time of executing the project. It is primary responsibility of a project manager to assess the resource requirement and make arrangement for their availability at specified time decided in accordance with scheduling of activities. It is important that scheduling process and resource requirement analysis are done together because mismanagement of both of these processes can result in financial loss for the company. for example, if resources required are not available at given time or they are hired for a time period longer than actual time to be devoted by them, then in both these cases it would result in extra cost for the company.

Following are some of the essential resources which will be required in the process of repairing 3 tank proposed by the company-

Gantt Chart

Human resources are most important resources that are required in a construction project. Majority of the works in a construction project are performed by human resources. Even machines used for the purpose of repair and maintenance are also used by human resources. It is important for organisation to select skilled resources for the current project as the repair and maintenance of Storage tank can be a complex process. Unskilled employees can be hired for the process of cleaning and painting but for the purpose of installing Steel patches, Steel anchor and Main supply valve it is essential that skilled employees are used. Use of unskilled workers for the purposes can result in additional maintenance cost to be incurred on yearly basis. After completion of the project an expert should be invited by the company to conduct an overview of storage facility developed by the company (Langford et.al, 2014). In the given case study 2 unskilled employees should be hired for painting and cleaning and 5 skilled employees should be used for the purpose of installation.

These are the resources that will be used for purchasing other resources so that project can be completed on time. Project budget has already been developed by project management team. According to this budget total expenditure required for repair and maintenance process would be $663000. This is the minimum cost that would be required for completing the project. Prices for material selected in the project budget are based on current prices and there can be a fluctuation in budget according to the prices of material in market. In addition to that budget can also be affected by unforeseeable conditions such as any environmental factor that can affect operations delay. This would also increase the overall financial resources required in this project (Burtonshaw-Gunn, 2017).

Raw material and machinery are also very important resources that will be required in this project management process. Raw material required in this procedure are already estimated by management. Project management team would require 17 Steel patches, 12 steal anchors and one main supply valve. In addition to that material for painting will also be required for the process of painting and cleaning (Walker, 2015). Majority of the operation in this project will be done with the help of human resource capital and machinery requirement will be estimated at the time of executing the project.

These are the main resources that will be required for the project. In addition to that the project will also require supervision from the project management team and experts from within the organisation to check if activities are properly done in the project or not.

References

Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. Routledge.

Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Langford, D., Fellows, R.F., Hancock, M.R. and Gale, A.W., 2014. Human resources management in construction. Routledge.

Larson, E.W., Gray, C.F., Danlin, U., Honig, B. and Bacarini, D., 2014. Project management: The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.

Liu, L., Sun, J., Ni, Y., Yang, S. and Song, P.A., 2018. Discussion on cost control experience in construction project management. Smart Construction Research, 2(3).

Lock, D., 2016. Project management in construction. Routledge.

Mubarak, S.A., 2015. Construction project scheduling and control. John Wiley & Sons.

Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Routledge.

Walker, A., 2015. Project management in construction. John Wiley & Sons.

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