Project Budget
The estimated project budget as per the deliverables is shown in the following table.
|
Task Name |
Cost |
|
Upgradation of Oil Storage Facility |
$5,163,800.00 [TOTAL BUDGET] |
|
Project Initiation Stage |
$266,400.00 |
|
Survey of the Site |
$51,000.00 |
|
Identification of the Issues and Problems |
$17,000.00 |
|
Call Team Meeting |
$4,000.00 |
|
Discuss the Issues |
$48,000.00 |
|
Find Possible Solutions |
$19,200.00 |
|
Discuss Project Feasibility |
$19,200.00 |
|
Prepare Initial Budget Estimate |
$38,400.00 |
|
Make Assumptions Regarding Project |
$38,400.00 |
|
Determine Project Constraints |
$19,200.00 |
|
Review Proposed Plan |
$4,000.00 |
|
Approve Project |
$8,000.00 |
|
Project Planning Stage |
$144,600.00 |
|
Develop Business Case |
$48,000.00 |
|
Develop a Detailed Project Charter |
$14,000.00 |
|
Determine Project Scope |
$14,000.00 |
|
Develop Project Objectives |
$5,600.00 |
|
Prepare Project Work Breakdown Structure |
$2,800.00 |
|
Develop Gantt Chart |
$1,400.00 |
|
Estimate Project Schedule |
$1,400.00 |
|
Estimate Project Budget |
$1,400.00 |
|
Appoint Roles to Stakeholders |
$8,000.00 |
|
Release Tenders for Contract |
$10,000.00 |
|
Hire Contractors based on Lowest Bid |
$4,000.00 |
|
Contact Sponsor |
$9,600.00 |
|
Procure Project Budget |
$9,600.00 |
|
Provide Project Plan to the Contractor |
$2,800.00 |
|
Initiate Project |
$12,000.00 |
|
Project Execution Stage |
$4,594,000.00 |
|
Works on Tank 1 |
$1,358,000.00 |
|
Relocation of Attached Structures and Equipments |
$120,000.00 |
|
Install Scaffolding |
$21,000.00 |
|
Install Cranes |
$46,000.00 |
|
Start Repair Work |
$21,000.00 |
|
Add Steel Patches |
$400,000.00 |
|
Add Steel Anchors |
$500,000.00 |
|
Cleaning of Tank |
$85,000.00 |
|
Repaint of the Tank |
$85,000.00 |
|
Remove Cranes |
$40,000.00 |
|
Remove Scaffolds |
$40,000.00 |
|
Works on Tank 2 |
$1,548,000.00 |
|
Relocation of Attached Structures and Equipments |
$120,000.00 |
|
Install Scaffolding |
$21,000.00 |
|
Install Cranes |
$46,000.00 |
|
Start Repair Work |
$21,000.00 |
|
Add Steel Patches |
$590,000.00 |
|
Add Steel Anchors |
$500,000.00 |
|
Cleaning of Tank |
$85,000.00 |
|
Repaint of the Tank |
$85,000.00 |
|
Remove Cranes |
$40,000.00 |
|
Remove Scaffolds |
$40,000.00 |
|
Works on Tank 3 |
$1,688,000.00 |
|
Relocation of Attached Structures and Equipments |
$120,000.00 |
|
Install Scaffolding |
$21,000.00 |
|
Install Cranes |
$46,000.00 |
|
Start Repair Work |
$21,000.00 |
|
Add Steel Patches |
$540,000.00 |
|
Add Steel Anchors |
$540,000.00 |
|
Replace Main Supply Valve |
$150,000.00 |
|
Cleaning of Tank |
$85,000.00 |
|
Repaint of the Tank |
$85,000.00 |
|
Remove Cranes |
$40,000.00 |
|
Remove Scaffolds |
$40,000.00 |
|
Project Closing Stage |
$158,800.00 |
|
Project Handover |
$4,000.00 |
|
Review of the Entire Project |
$72,000.00 |
|
Project Documentation |
$14,000.00 |
|
Clearing of Payments and Dues |
$48,000.00 |
|
Stakeholder Signoff |
$16,800.00 |
|
Project Closing |
$4,000.00 |
While preparing this budget, the assumptions that have been made are as follows (Kerzner and Kerzner 2017).
- The material costs are one time payments and the values of the prices will not change within a very short time.
- The budget costs for the human resources have been calculated as per hours of work per day.
- The budget has been prepared without contingency budget that will be added additionally to the budget.
An estimated schedule for the case study project is shown in the following table.
|
Task Name |
Duration |
Start |
Finish |
|
Upgradation of Oil Storage Facility |
283 days |
Mon 07-05-18 |
Wed 05-06-19 |
|
Project Initiation Stage |
47 days |
Mon 07-05-18 |
Tue 10-07-18 |
|
Survey of the Site |
15 days |
Mon 07-05-18 |
Fri 25-05-18 |
|
Identification of the Issues and Problems |
5 days |
Mon 28-05-18 |
Fri 01-06-18 |
|
Call Team Meeting |
2 days |
Mon 04-06-18 |
Tue 05-06-18 |
|
Discuss the Issues |
5 days |
Wed 06-06-18 |
Tue 12-06-18 |
|
Find Possible Solutions |
2 days |
Wed 13-06-18 |
Thu 14-06-18 |
|
Discuss Project Feasibility |
2 days |
Fri 15-06-18 |
Mon 18-06-18 |
|
Prepare Initial Budget Estimate |
4 days |
Tue 19-06-18 |
Fri 22-06-18 |
|
Make Assumptions Regarding Project |
4 days |
Mon 25-06-18 |
Thu 28-06-18 |
|
Determine Project Constraints |
2 days |
Fri 29-06-18 |
Mon 02-07-18 |
|
Review Proposed Plan |
2 days |
Tue 03-07-18 |
Wed 04-07-18 |
|
Approve Project |
4 days |
Thu 05-07-18 |
Tue 10-07-18 |
|
Project Planning Stage |
66 days |
Wed 11-07-18 |
Wed 10-10-18 |
|
Develop Business Case |
10 days |
Wed 11-07-18 |
Tue 24-07-18 |
|
Develop a Detailed Project Charter |
10 days |
Wed 25-07-18 |
Tue 07-08-18 |
|
Determine Project Scope |
5 days |
Wed 08-08-18 |
Tue 14-08-18 |
|
Develop Project Objectives |
4 days |
Wed 15-08-18 |
Mon 20-08-18 |
|
Prepare Project Work Breakdown Structure |
2 days |
Tue 21-08-18 |
Wed 22-08-18 |
|
Develop Gantt Chart |
1 day |
Thu 23-08-18 |
Thu 23-08-18 |
|
Estimate Project Schedule |
1 day |
Fri 24-08-18 |
Fri 24-08-18 |
|
Estimate Project Budget |
1 day |
Mon 27-08-18 |
Mon 27-08-18 |
|
Appoint Roles to Stakeholders |
4 days |
Tue 28-08-18 |
Fri 31-08-18 |
|
Release Tenders for Contract |
5 days |
Mon 03-09-18 |
Fri 07-09-18 |
|
Hire Contractors based on Lowest Bid |
2 days |
Mon 10-09-18 |
Tue 11-09-18 |
|
Contact Sponsor |
2 days |
Wed 12-09-18 |
Thu 13-09-18 |
|
Procure Project Budget |
2 days |
Fri 14-09-18 |
Mon 17-09-18 |
|
Provide Project Plan to the Contractor |
2 days |
Tue 18-09-18 |
Wed 19-09-18 |
|
Initiate Project |
15 days |
Thu 20-09-18 |
Wed 10-10-18 |
|
Project Execution Stage |
126 days |
Thu 11-10-18 |
Thu 04-04-19 |
|
Works on Tank 1 |
101 days |
Thu 11-10-18 |
Thu 28-02-19 |
|
Relocation of Attached Structures and Equipments |
15 days |
Thu 11-10-18 |
Wed 31-10-18 |
|
Install Scaffolding |
2 days |
Thu 01-11-18 |
Fri 02-11-18 |
|
Install Cranes |
2 days |
Mon 05-11-18 |
Tue 06-11-18 |
|
Start Repair Work |
2 days |
Wed 07-11-18 |
Thu 08-11-18 |
|
Add Steel Patches |
25 days |
Fri 09-11-18 |
Thu 13-12-18 |
|
Add Steel Anchors |
25 days |
Fri 14-12-18 |
Thu 17-01-19 |
|
Cleaning of Tank |
10 days |
Fri 18-01-19 |
Thu 31-01-19 |
|
Repaint of the Tank |
10 days |
Fri 01-02-19 |
Thu 14-02-19 |
|
Remove Cranes |
5 days |
Fri 15-02-19 |
Thu 21-02-19 |
|
Remove Scaffolds |
5 days |
Fri 22-02-19 |
Thu 28-02-19 |
|
Works on Tank 2 |
106 days |
Thu 11-10-18 |
Thu 07-03-19 |
|
Relocation of Attached Structures and Equipments |
15 days |
Thu 11-10-18 |
Wed 31-10-18 |
|
Install Scaffolding |
2 days |
Thu 01-11-18 |
Fri 02-11-18 |
|
Install Cranes |
2 days |
Mon 05-11-18 |
Tue 06-11-18 |
|
Start Repair Work |
2 days |
Wed 07-11-18 |
Thu 08-11-18 |
|
Add Steel Patches |
30 days |
Fri 09-11-18 |
Thu 20-12-18 |
|
Add Steel Anchors |
25 days |
Fri 21-12-18 |
Thu 24-01-19 |
|
Cleaning of Tank |
10 days |
Fri 25-01-19 |
Thu 07-02-19 |
|
Repaint of the Tank |
10 days |
Fri 08-02-19 |
Thu 21-02-19 |
|
Remove Cranes |
5 days |
Fri 22-02-19 |
Thu 28-02-19 |
|
Remove Scaffolds |
5 days |
Fri 01-03-19 |
Thu 07-03-19 |
|
Works on Tank 3 |
126 days |
Thu 11-10-18 |
Thu 04-04-19 |
|
Relocation of Attached Structures and Equipments |
15 days |
Thu 11-10-18 |
Wed 31-10-18 |
|
Install Scaffolding |
2 days |
Thu 01-11-18 |
Fri 02-11-18 |
|
Install Cranes |
2 days |
Mon 05-11-18 |
Tue 06-11-18 |
|
Start Repair Work |
2 days |
Wed 07-11-18 |
Thu 08-11-18 |
|
Add Steel Patches |
30 days |
Fri 09-11-18 |
Thu 20-12-18 |
|
Add Steel Anchors |
30 days |
Fri 21-12-18 |
Thu 31-01-19 |
|
Replace Main Supply Valve |
15 days |
Fri 01-02-19 |
Thu 21-02-19 |
|
Cleaning of Tank |
10 days |
Fri 22-02-19 |
Thu 07-03-19 |
|
Repaint of the Tank |
10 days |
Fri 08-03-19 |
Thu 21-03-19 |
|
Remove Cranes |
5 days |
Fri 22-03-19 |
Thu 28-03-19 |
|
Remove Scaffolds |
5 days |
Fri 29-03-19 |
Thu 04-04-19 |
|
Project Closing Stage |
44 days |
Fri 05-04-19 |
Wed 05-06-19 |
|
Project Handover |
5 days |
Fri 05-04-19 |
Thu 11-04-19 |
|
Review of the Entire Project |
15 days |
Fri 12-04-19 |
Thu 02-05-19 |
|
Project Documentation |
10 days |
Fri 03-05-19 |
Thu 16-05-19 |
|
Clearing of Payments and Dues |
10 days |
Fri 17-05-19 |
Thu 30-05-19 |
|
Stakeholder Signoff |
2 days |
Fri 31-05-19 |
Mon 03-06-19 |
|
Project Closing |
2 days |
Tue 04-06-19 |
Wed 05-06-19 |
The tool used for preparation of this schedule is the Microsoft Project software and its Gantt chart feature that automatically calculates estimated time period of project once relevant parameters are entered in the same. This can also be done other project management tools like Microsoft Excel but it needs to be done manually and hence, it is much more inaccurate and not suitable for high scale projects like this (Schwalbe 2015). Again, other tools like Jira are also available but they are expensive and licensing is required to use such tools. On the other hand, Microsoft Project does not require such complications.
For the cost estimation in the previous part, bottom up estimation method is applied which is also aided by Microsoft Project and it is provides much accurate results.
The project resources used are shown in the following table.
|
Resource Name |
Type |
Max. Units |
Std. Rate |
Ovt. Rate |
|
Project Manager |
Work |
100% |
$250.00/hr |
$0.00/hr |
|
Revenue Division |
Work |
100% |
$600.00/hr |
$0.00/hr |
|
HSE Manager |
Work |
100% |
$175.00/hr |
$0.00/hr |
|
Terminal Manager |
Work |
100% |
$175.00/hr |
$0.00/hr |
|
Contractor |
Work |
100% |
$100.00/hr |
$0.00/hr |
|
Repair Workers |
Work |
100% |
$1,000.00/hr |
$0.00/hr |
|
Steel Patches |
Material |
$50,000.00 |
||
|
Steel Anchors |
Material |
$75,000.00 |
||
|
Supply Valve |
Material |
$30,000.00 |
||
|
Cranes |
Material |
$15,000.00 |
||
|
Scaffolding |
Material |
$5,000.00 |
||
|
Repair Tools |
Material |
$5,000.00 |
||
|
Paints |
Material |
$5,000.00 |
The allocation of resources in the project deliverables is shown in the following table.
|
Task Name |
Resource Names |
|
Upgradation of Oil Storage Facility |
|
|
Project Initiation Stage |
|
|
Survey of the Site |
HSE Manager, Project Manager |
|
Identification of the Issues and Problems |
HSE Manager, Project Manager |
|
Call Team Meeting |
Project Manager |
|
Discuss the Issues |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Find Possible Solutions |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Discuss Project Feasibility |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Prepare Initial Budget Estimate |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Make Assumptions Regarding Project |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Determine Project Constraints |
HSE Manager, Project Manager, Revenue Division, Terminal Manager |
|
Review Proposed Plan |
Project Manager |
|
Approve Project |
Project Manager |
|
Project Planning Stage |
|
|
Develop Business Case |
Revenue Division |
|
Develop a Detailed Project Charter |
Terminal Manager |
|
Determine Project Scope |
HSE Manager, Terminal Manager |
|
Develop Project Objectives |
Terminal Manager |
|
Prepare Project Work Breakdown Structure |
Terminal Manager |
|
Develop Gantt Chart |
Terminal Manager |
|
Estimate Project Schedule |
Terminal Manager |
|
Estimate Project Budget |
Terminal Manager |
|
Appoint Roles to Stakeholders |
Project Manager |
|
Release Tenders for Contract |
Project Manager |
|
Hire Contractors based on Lowest Bid |
Project Manager |
|
Contact Sponsor |
Revenue Division |
|
Procure Project Budget |
Revenue Division |
|
Provide Project Plan to the Contractor |
Terminal Manager |
|
Initiate Project |
Contractor |
|
Project Execution Stage |
|
|
Works on Tank 1 |
|
|
Relocation of Attached Structures and Equipments |
Repair Workers |
|
Install Scaffolding |
Repair Workers, Scaffolding[1] |
|
Install Cranes |
Cranes[2], Repair Workers |
|
Start Repair Work |
Repair Tools[1], Repair Workers |
|
Add Steel Patches |
Repair Workers, Steel Patches[4] |
|
Add Steel Anchors |
Repair Workers, Steel Anchors[4] |
|
Cleaning of Tank |
Repair Tools[1], Repair Workers |
|
Repaint of the Tank |
Paints[1], Repair Workers |
|
Remove Cranes |
Repair Workers |
|
Remove Scaffolds |
Repair Workers |
|
Works on Tank 2 |
|
|
Relocation of Attached Structures and Equipments |
Repair Workers |
|
Install Scaffolding |
Repair Workers, Scaffolding[1] |
|
Install Cranes |
Cranes[2], Repair Workers |
|
Start Repair Work |
Repair Tools[1], Repair Workers |
|
Add Steel Patches |
Repair Workers, Steel Patches[7] |
|
Add Steel Anchors |
Repair Workers, Steel Anchors[4] |
|
Cleaning of Tank |
Repair Tools[1], Repair Workers |
|
Repaint of the Tank |
Paints[1], Repair Workers |
|
Remove Cranes |
Repair Workers |
|
Remove Scaffolds |
Repair Workers |
|
Works on Tank 3 |
|
|
Relocation of Attached Structures and Equipments |
Repair Workers |
|
Install Scaffolding |
Repair Workers, Scaffolding[1] |
|
Install Cranes |
Cranes[2], Repair Workers |
|
Start Repair Work |
Repair Tools[1], Repair Workers |
|
Add Steel Patches |
Repair Workers, Steel Patches[6] |
|
Add Steel Anchors |
Repair Workers, Steel Anchors[4] |
|
Replace Main Supply Valve |
Repair Workers, Supply Valve[1] |
|
Cleaning of Tank |
Repair Tools[1], Repair Workers |
|
Repaint of the Tank |
Paints[1], Repair Workers |
|
Remove Cranes |
Repair Workers |
|
Remove Scaffolds |
Repair Workers |
|
Project Closing Stage |
|
|
Project Handover |
Contractor |
|
Review of the Entire Project |
Project Manager, Terminal Manager, HSE Manager |
|
Project Documentation |
Terminal Manager |
|
Clearing of Payments and Dues |
Revenue Division |
|
Stakeholder Signoff |
Contractor, HSE Manager, Revenue Division, Terminal Manager |
|
Project Closing |
Project Manager |
Again, the critical path for the project is shown in the following diagram.
In the diagram, the critical path of the project is shown using a Gantt chart. The project path marked in red colour is the critical path and it is determined using the Gantt chart tool of Microsoft Project. Furthermore, the network diagram tool can also be utilized to develop the critical path for the project (Fleming and Koppelman 2016). Again, the stressful points in the project are those that have red colored man figure at the left of each deliverable.
References
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Boud, D., Cohen, R. and Sampson, J. eds., 2014. Peer learning in higher education: Learning from and with each other. Routledge.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management. Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
Heagney, J., 2016. Fundamentals of project management. AMACOM Div American Mgmt Assn.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley & Sons.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Lock, D., 2017. The essentials of project management. Routledge.
Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), pp.202-217.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Snyder, C.S., 2014. A guide to the project management body of knowledge: PMBOK (®) guide. Project Management Institute: Newtown Square, PA, USA.
Turner, R., 2016. Gower handbook of project management. Routledge.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
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