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Phase 1: Report
EngM 530
Presented by:
Sam Tseung (1394850)
Prashant Nundloll (1414257)
Devin Prazak (1291870)
Naveed Pirzado (1488955)
Navy Kaur (1423984)
Table of Contents
1. Initiation Phase .................................................................................................................... 3
A. Business Case................................................................................................................... 3
Introduction ..................................................................................................................... 3
Business Objective ............................................................................................................ 4
Statement on Current Situation ........................................................................................ 5
Critical Assumptions and Constraints ............................................................................... 6
Analysis of Option and Recommendation .......................................................................... 6
Project Requirements ....................................................................................................... 7
Budget Estimate and Financial Analysis ........................................................................... 7
Schedule Estimate............................................................................................................. 7
Potential Risks .................................................................................................................. 8
B. Kickoff Meeting ............................................................................................................... 8
Project Kickoff Activity Checklist ..................................................................................... 8
Kickoff Meeting Agenda ................................................................................................... 9
Team and Stakeholder Communication Plan .................................................................... 9
2. Planning Phase ................................................................................................................... 10
A. Project Scope Management ........................................................................................... 10
B. Project Charter ............................................................................................................. 11
C. Table 1: Roles and Responsibilities................................................................................ 13
D. Collect Requirements .................................................................................................... 14
E. Table 2: Requirements Traceability Matrix ................................................................... 14
F. Project Scope Statement ................................................................................................ 18
G. Work Breakdown Structure Flow Chart ........................................................................ 19
H. WBS Index .................................................................................................................... 20
Table 3: Work Breakdown Structure Dictionary ........................................................... 21
I. Project Time Management .............................................................................................. 24
References ............................................................................................................................. 25
Appendix A: Project Schedule................................................................................................ 26
1. Initiation Phase
This phase contains information on introduction, project objective, statement on current
situation, critical assumptions, options, recommendations, project requirements, financial
analysis, schedule estimate, and potential risks.
A. Business Case
Introduction
The Texas Ring Road project is the construction of a ring road in Texas to address traffic safety
and commuter traffic issues in Texas downtown area. Since the early 2000s, the lack of
highways to accommodate commuters residing in Texas, as well as commuters travelling via
Texas, to nearby cities has caused heavy traffic congestions inside the city. The objective for
this ring road is to divert this traffic around the edge of the city, essentially having one highway
connected between an incoming and outgoing peripheral highway. This Texas Ring Road will
not only solve traffic congestions for commuters incoming and outgoing the city but will also
serve to help revitalize the economic downturn with job creation. An estimated 10,000 jobs
will be created through the construction of this highway. There will also be spin-off benefits to
businesses located near the highway. The Texas Ring Road project management team is
partnered with the City of Texas and the Texas Department of Transportation for project
funding, and oversees managing the Texas Ring Road project and ensuring that the deliverables
are completed. The project team will undergo a survey of the area, complete earthwork,
roadbed paving, conduct ride quality and drainage tests, landscaping around the pavement
where necessary, apply permanent pavement markings, and finally commission for public use.
Project sponsor/owner and Client: City of Texas and the Texas Department of
Transportation are the sponsors funding the Texas Ring Road.
Project Managers: Sam Tseung, Prashant Nundloll, Devin Prazak, Naveed Pirzado,
and Navy Kaur.
Figure 1: Blue line indicates the projected Texas Ring Road; orange line indicates incoming
and outgoing city highways
Business Objective
The Texas Bypass is essential to improve public safety and to support continued economic
growth. The Bypass project and its various components have been the subject of many planning
studies dating back to the 1990s. These plans have been subject to exhaustive reviews by
experts in civil engineering and transportation planning both internal and external to the
Ministry. The analysis consistently shows that the selected route, as shown in Figure 1, is the
optimal location for the bypass now and into future. After undertaking significant stakeholder
and public consultation, the consensus reached amongst industry and municipalities was that
this is the most logical route.
This project will have significant economic benefits for the province by creating 8,200
construction-related jobs in Texas and 11,300 jobs overall. The Texas Ring Road is needed to
improve overall traffic safety and support continued economic growth. Since the nineties,
traffic congestion along Victoria Avenue and Highway 1 East has been a major safety concern.
The bypass project was redesigned based on several studies and public and stakeholder
consultations. The new overpasses and bypass route will drastically improve traffic safety and
efficiency as well as maximize strategic advantage of location.
Eliminate key transportation bottlenecks while creating an efficient traffic flow on Highway 1
completion, the mentioned problems will be address more than adequately and will continue
to service the growing population for the following 20-25 years. The project will provide
several entrance/exit ramps to allow easier access into different areas of the city. This will
indirectly stimulate economic growth nearer the city center and bring in more outside spending
at local businesses. The direct benefits of the project will show a decrease of Annual Average
Daily Traffic (AADT), a decrease in vehicular collisions and a reduction of commuting time
for residence.
Project Requirements
The project requires project managers to coordinate with stakeholders, execute quality
procurement process per budget analyses, and cooperate with construction experts to
successfully fulfill the project scope. Major concerns for this projects are ensuring workers are
sufficiently protected while dealing with heavy machineries as well as working outdoors. To
address this concern, worker liability insurance is a requirement before offering contracts to
contractors and subcontractors. Weather conditions as well as individual worker schedules may
have the potential to further delay the project schedule. The City of Texas was also required to
attain the required road allowances and crossing agreements with all pipeline crossings. The
agreements and allowances have been provided to the project team for review.
Schedule Estimate
The ring road project will take approximately 11 months from start to finish. There are three
major phases of the project, earthwork, paving, and signage, lighting, and finishing. Earthwork
will be completed first starting on October 16, 2016 and finishing on February 17, 2017, taking
a total of 4 months. The next phase, paving, will begin after a portion of lag time after the
earthwork has began. These two phases can be completed somewhat in parallel. The
completion of paving will occur April 17, 2017, 6 months after the project launch date. Signage,
lighting and finishing can take place throughout the second phase of the project and up to the
estimated completion date. A more detailed timeline breakdown can be seen in Appendix A.
Potential Risks
With many construction activities, there are several risks associated. The weather can generate
several delays or unexpected costs. The climate around Texas City can be sporadic since it is a
coastal city. To accommodate for this, a contingency of 45 days will be included in the time
estimates for the project and financial retainers will be used to cover these situations. Another
considerable risk relates to the accruing materials for the project, mainly concrete and asphalt.
Both concrete and asphalt material will be batched onsite by our company employees, but the
raw materials will be provided by a third-party subcontractor. Delivery of these products
depends on this subcontractor, which could result in delays; however, our selection of this
third-party subcontractor was significantly weighted on their qualifications and prior
performances and reliability.
B. Kickoff Meeting
Project Kickoff Activity Checklist
Obtain and review project charter.
Understand and confirm project team members (roles, responsibilities, time
commitment and availability).
Understand and confirm project timeline, considering resource availability identified
above.
Develop stakeholder communications plan with input from team members and key
stakeholders.
Identify who should be attending kick-off meeting (project team, key stakeholders,
project sponsors, others).
Determine the amount of time needed for the kick-off meeting.
Email all meeting participants to understand their availability for a meeting date and
time or utilize Outlook Calendar to assess common availability.
Coordinating calendars, schedule kick-off meeting with everyone involved.
Communications
distribute
Contractors
2.
3. For each stakeholder identified above, identify the type of communication (from above list)
to be used and the frequency of the communication.
4. Define the content of each communication implemented (consider the stakeholder, level of
detail needed, metrics, etc). Team meeting agendas can be standardized for consistency.
2. Planning Phase
A. Project Scope Management
The project charter summarizes the essential stakeholders, work schedule, and project
management approaches and methods utilized for Texas Ring Road.
10
Project Charter
Project Title: Texas Ring Road Construction Project
Project Start Date: September 1, 2016
Project Managers:
Project Objectives:
The project objective is to construct a ring road around the city of Texas. The project will cover
the construction of the main ring road around Texas, along with the numerous side ramps to
access and leave the ring road. It will also include the road signage, traffic lights, associated
utilities such as road lighting, and any other work needed to ensure that the ring road is
accessible and open to the public for use by the completion date of the project. The construction
of the ring road will be conducted in five phases: the planning phase, the earthwork phase, the
paving phase, utilities phase, and the finishing phase. The construction of the ring road, along
with the earthwork, road signage and drainage construction will be subcontracted to Ring Road
Construction Ltd., a road construction contractor. The electrical portion of the project, which
includes road lighting and traffic lights setup, will be subcontracted to Better Electricals Ltd.,
an electric utilities contractor.
Main Project Success Criteria:
The road construction should be completed on time by the completion date of the project, to
alleviate the current commuter traffic issues in the city of Texas. The project should also be
adhering to the safety and quality standards to ensure that the public can use the ring road
safely.
Budget Information:
The budget for the ring road project is 1 billion dollars (USD), which will cover the
construction costs for the ring road to be operational and open for public use as from the
completion date of the project. The budget will be allocated to the earthwork, paving and
utilities phases. Project will be broken down into three execution phases; earthwork, paving,
and signage, lighting, and finishing. 400 million USD is budgeted for the earthwork. The
11
budget for paving is estimated at 350 million USD, while the last phase will cost an estimated
250 million USD.
Key Schedule Milestones:
Completion of detailed engineering of the ring road, which includes the design of the
ring road, its drainage system and the associated electrical utilities, by October 19, 2016
Completion of planning phase of project, which includes feasibility, topographical, and
geotechnical studies as well as pavement planning, by October 26, 2016
Completion of earthwork by February 13, 2017
Completion of paving by April 03, 2017
Setup of electrical utilities by May 08, 2017
Painting of pavement markings by May 29, 2017
Placement of barrier by June 26, 2017
Inspection of ring road by July 24, 2017
Approach:
Outline a list of proposed work and budget plans
Develop detailed estimate of the scope of the project
Develop detailed estimate of the time required to complete the project
Develop detailed estimate of the cost of the project
Consult with Better Electricals Ltd. and Ring Road Construction Ltd. to finalize project
schedule
Coordinate paving, drainage construction, and road signage of ring road by Ring Road
Construction Ltd. in an efficient manner
Coordinate electrical utilities such as road lighting and traffic lights by Better
Electricals Ltd. in an efficient manner
Bi-weekly review with Ring Road Construction Ltd and Better Electricals Ltd. (if
necessary) for suggestions and status update
Plan inspection of the ring road construction project by the relevant authorities to ensure
conformity to quality standards
Open inspected final product for use by the public by the project completion date
12
Role
Responsibility
City of Texas
Department of
Transportation
Client
Sam Tseung
Project Manager
Prashant Nundloll
Project Manager
Navy Kaur
Project Manager
Devin Prazak
Project Manager
Naveed Pirzado
Project Manager
Bora Yoon
Yoona Lim
Tiffany Hwang
Sooyoung Choi
Highway Inspector
Yuri Kwon
Highway Consultant
13
Collect Requirements
A series of interviews will be conducted to all contractors and subcontractors to ensure
sufficient qualifications and suitability for the job. Mind Mapping and Multicriteria Decision
Analysis will be used in brainstorming sessions during the planning phase. Dictatorship
decision-making technique is employed by the City of Texas on the project scope direction,
while Majority decision-making within the project management group will be enforced prior
and during construction planning phases. Online questionnaires, surveys, and polls will be
accessible on government website, news outlet, and social medias, aimed to gather important
traffic data, to make informed decisions on effective traffic light placements, entry and exit
ramp placements, and number of traffic lanes on certain freeways. General observations on
traffic congestions will be included prior to decision making. Benchmarking with other
highways outside of Texas for similar purpose as well as past highway construction techniques
and methods will be thoroughly investigated.
Name
Category
Source
Status
R1
Conduct Feasibility
Study
Planning
N/A
R2
Conduct Topography
Study
Planning
N/A
R3
Conduct Geotechnical
Study
Planning
N/A
R4
Planning
R5
Plan pavement
construction method
Planning
R6
Landscape design
Planning
R7
Drainage design
Planning
Project
manager, N/A
Texas Department of
N/A
14
Waste
Management
specifications
R8
R9
Create procurement
process plan
Planning
R10
Planning
R10
Commence earthmoving
on projected area
N/A
R11
N/A
R12
Implement drainage
design on specified
locations
R13
Commence landscaping
work per specifications
R14
N/A
R15
N/A
R16
Procure necessary
pavement material and
machineries
N/A
R17
Batch Asphalt
N/A
R18
Batching Concrete
N/A
R19
Steamrolling the
pavement
N/A
15
R20
Procure required
materials for electrical
systems, lamp posts, and
machineries for
installation
Utilities
N/A
R21
Electrical wiring
installations
Utilities
R22
Utilities
R23
Utilities
R24
Procure pavement
marking paints, standard
street signages, and
installation machineries
Pavement
Markings
R25
Install pavement
markings on ramp
directions, speed limit,
cross roads, and lamp
posts markings
Pavement
Markings
R26
Planning
R27
Pavement
Marking
R28
Planning
N/A
16
R29
Procure concrete
Barrier
material for median strip,
specified guardrail
material
R30
Barrier
R31
Inspection
R32
Conduct highway
inspection
Inspection
R33
Inspection
R34
Inspection
R35
Inspection
17
18
19
WBS Index
1. Texas Ring Road Highway Construction
1.1. Planning
1.1.1. Feasibility Studies
1.1.2. Topography Studies
1.1.3. Geotechnical Studies
1.1.4. Surveying the Area
1.1.5. Pavement Planning
1.1.6. Detailed Engineering
1.1.6.1. Landscape design
1.1.6.2. Drainage design
1.1.6.3. Electrical wiring design
1.1.7 Procurement Planning
1.2. Earthwork
1.2.1. Implementation phase
1.2.1.1. Earthmoving
1.2.1.2. Foundation
1.2.1.3. Drainage
1.2.1.4. Landscaping
1.2.1.5. Compaction
1.2.1.6. Grading
1.3. Paving
1.3.1 Implementation Phase
1.3.1.1. Procurement
1.3.1.2. Batching Asphalt
1.3.1.3. Batching Concrete
1.3.1.4. Steamrolling
1.4. Utilities
1.4.1. Electrical
1.4.1.1. Lighting
1.4.1.2. Foundations
1.4.1.3. Electrical supply
1.4.1.4. Traffic Lights
1.4.1.5. Lamp posts
1.4.2. Pavement Markings
1.4.2.1. Ramps
1.4.2.2. Signage
1.4.2.3. Cross Roads
1.4.2.4. Lamp posts markings
1.4.3 Barrier
1.4.3.1. Median Strip
1.4.3.2. Guard Rails
20
1.5. Finishing
1.5.1. Ride quality tests
1.5.2. Highway inspection
1.5.3. Pavement crack inspection
1.5.4. Soil creep inspection
1.5.5. Erosion control
Task Name
Duration
Description
1.
Texas Ring
Road Highway
Construction
233 days
1.1.
Planning
40 days
1.1.1.
Feasibility
Studies
1 week
1.1.2.
Topography
Studies
1 week
1.1.3.
Geotechnical
Studies
2 weeks
1.1.4.
Surveying the
Area
1 week
1.1.5.
Pavement
Planning
1 week
1.1.6.
Detailed
Engineering
15 days
1.1.6.1.
Landscape
Design
1 week
1.1.6.2.
Drainage
Design
1 week
1.1.6.3.
Electrical
Wiring Design
1 week
21
1.1.7.
Procurement
Planning
1 week
1.2.
Earthwork
78 days
1.2.1.
Implementation
Phase 1
78 days
1.2.1.1.
Earthmoving
3 weeks
1.2.1.2.
Foundation
3 weeks
1.2.1.3.
Drainage
3 weeks
1.2.1.4.
Landscaping
2 weeks
1.2.1.5.
Compaction
2 weeks
1.2.1.6.
Grading
2 weeks
1.3.
Paving
35 days
1.3.1.
Implementation
Phase 2
35 days
Pavement installation
1.3.1.1.
Procurement
2 weeks
1.3.1.2.
Batching
Asphalt
2 weeks
1.3.1.3.
Batching
Concrete
2 weeks
1.3.1.4.
Steamrolling
1 week
1.4.
Utilities
60 days
1.4.1.
Electrical
25 days
1.4.1.1.
Lighting
1 week
22
1.4.1.2.
Foundations
2 weeks
1.4.1.3.
Electrical
Supply
1 week
1.4.1.4.
Traffic Lights
1 week
1.4.1.5.
Lamp Posts
1 week
1.4.2.
Pavement
Markings
15 days
1.4.2.1.
Ramps
1 week
1.4.2.2.
Signage
1 week
1.4.2.3.
Cross Roads
1 week
1.4.2.4.
Lamp Posts
Markings
1 week
1.4.3.
Barrier
20 days
1.4.3.1.
Median Strip
2 week
1.4.3.2.
Guard Rails
2 week
1.5.
Finishing
20 days
Quality Inspection
external experts
1.5.1.
Ride Quality
Tests
1 week
1.5.2.
Highway
Inspection
2 weeks
with
stakeholders
and
23
1.5.3.
Pavement
Crack
Inspection
1 week
1.5.4.
Soil Creep
Inspection
1 week
1.5.5.
Erosion Control
1 week
24
References
1. Highway construction http://www.brighthubengineering.com/building-constructiondesign/125227-highway-construction-and-engineering/
2. Project Management Institute. A Guide to the Project Management Body of Knowledge
(PMBOOK Guide), 5th Edition. 2013. (ISBN-10: 1935589679)
25
26
27
28
EngM 530
Presented by:
Sam Tseung (1394850)
Prashant Nundloll (1414257)
Devin Prazak (1291870)
Naveed Pirzado (1488955)
Table of Contents
Project Cost Management ....................................................................................................... 3
Planning Cost Management ............................................................................................... 3
Estimating Cost.................................................................................................................... 3
Determining the Budget ...................................................................................................... 6
Earned Value Management ................................................................................................ 9
Project Quality Management ................................................................................................ 12
Plan Quality Management ................................................................................................ 12
Quality Assurance ............................................................................................................. 13
Quality Control .................................................................................................................. 13
Project Risk Management ..................................................................................................... 16
Risk Identification ............................................................................................................. 16
Risk Analysis ...................................................................................................................... 17
Risk Response and Control .............................................................................................. 20
Project Procurement Management ....................................................................................... 21
Plan Procurement Management ...................................................................................... 21
Conduct Procurement ....................................................................................................... 21
Control Procurement ........................................................................................................ 22
Close Procurement ............................................................................................................ 22
Project Stakeholder Management ........................................................................................ 22
Identifying Stakeholders ................................................................................................... 22
Lessons Learned ..................................................................................................................... 26
APPENDIX ............................................................................................................................. 28
10%.
Organizational procedures links: WBS provides the framework for cost management plan,
therefore, WBS will be used for project cost accounting.
Rules of Performance measurement: Earned Value Management rules will be used to indicate
the level of performance, cost performance index and schedule performance index.
Control Thresholds: Allowable 10% for each activity cost.
Estimating Cost
A bottom up estimate was performed before including the activity in the Work Breakdown
Structure (WBS) and project scheduling. The number of units and unit cost per item named are
based on historical data on previous road construction projects. The following table outlines
the cost estimate on each work activity and its work package contingency reserve. The total
project cost estimate is $680,000,000, not including project contingency reserve.
Table 1: Project Cost Estimation, all costs are rounded to thousands
Item
Number
Task Name
# Unit or Cost/unit
Hrs.
or
Cost/hr.
Subtotals
Work
Activity
Contingency
Reserve
WBS
Level
Totals
% of Total
1.1.
Planning
$81,480
$20,370
$101,850
14.98%
1.1.1.
Feasibility
Studies
30,177
$0.3
$9,053
1.1.2.
Topography
Studies
30,177
$0.3
$9,053
1.1.3.
Geotechnical
Studies
30,177
$0.3
$9,053
1.1.4.
Surveying
the Area
30,177
$0.3
$9,053
1.1.5.
Pavement
Planning
30,177
$0.3
$9,053
1.1.6.1.
Landscape
Design
18,107
$0.5
$9,053
1.1.6.2.
Drainage
Design
18,107
$0.5
$9,053
1.1.6.3.
Electrical
Wiring
Design
18,107
$0.5
$9,053
1.1.7.
Procurement
Planning
45,265
$0.2
$9,053
1.2.
Earthwork
$71,295
$237,650
34.95%
1.2.1.1.
Earthmoving
5,198
$8
$41,588
1.2.1.2.
Foundation
20,794
$2
$41,588
1.2.1.3.
Drainage
6,654
$2.5
$16,636
$166,355
1.2.1.4.
Landscaping
3,697
$4.5
$16,636
1.2.1.5.
Compaction
55,452
$0.6
$33,271
1.2.1.6.
Grading
3,697
$4.5
$16,636
1.3.
Paving
1.3.1.1.
Procurement
142,590
$0.5
$71,295
1.3.1.2.
Batching
Asphalt
23,765
$1.2
$28,518
1.3.1.3.
Batching
Concrete
15,843
$1.8
$28,518
1.3.1.4.
Steamrolling
15,843
$0.9
$14,259
1.4.
Utilities
1.4.1.1
Lighting
8,911
$0.8
$7,129
1.4.1.2.
Foundations
7,921
$0.9
$7,129
1.4.1.3.
Electrical
Supply
9,505
$0.75
$7,129
1.4.1.4.
Traffic
Lights
14,258
$0.5
$7,129
1.4.1.5.
Lamp Posts
17,823
$0.4
$7,129
1.4.2.1.
Ramps
25,460
$0.35
$8,911
1.4.2.2.
Signage
35,644
$0.25
$8,911
1.4.2.3.
Cross Roads
19,802
$0.45
$8,911
1.4.2.4.
Lamp Posts
Markings
13,709
$0.65
$8,911
1.4.3.1.
Median Strip
10,185
$1.5
$15,278
1.4.3.2.
Guard Rails
12,732
$1.2
$15,278
1.5.
Finishing
$142,590
$101,850
$900
$61,110
$203,700
29.96%
$33,950
$135,800
19.97%
$100
$1,000
0.14%
1.5.1.
Ride Quality
Tests
300
$0.6
$180
1.5.2.
Highway
Inspection
257
$0.7
$180
1.5.3.
Pavement
Crack
Inspection
360
$0.5
$180
1.5.4.
Soil Creep
Inspection
180
$1.0
$180
1.5.5.
Erosion
Control
120
$1.5
$180
Total
Project
Cost
Estimates
$680,000
100%
Activity
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Total
1.1.
Planning
$45,266.67
$56,583.33
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$101,850
1.1.1.
Feasibility
Studies
$11,316.67
$11,316.67
1.1.2.
Topography
Studies
$11,316.67
$11,316.67
1.1.3.
Geotechnical
Studies
$11,316.67
$11,316.67
1.1.4.
Surveying the
Area
$11,316.67
$11,316.67
1.1.5.
Pavement
Planning
$11,316.67
$11,316.67
1.1.6.1.
Landscape
Design
$11,316.67
$11,316.67
1.1.6.2.
Drainage
Design
$11,316.67
$11,316.67
1.1.6.3.
Electrical
Wiring Design
$11,316.67
$11,316.67
1.1.7.
Procurement
Planning
$11,316.67
$11,316.67
1.2.
Earthwork
$14,853.13
$84,167.70
1.2.1.1.
Earthmoving
$14,853.13
$44,559.38
1.2.1.2.
Foundation
1.2.1.3.
Drainage
1.2.1.4.
Landscaping
$23,765.00
$23,765.00
1.2.1.5.
Compaction
$47,530.00
$47,530.00
1.2.1.6.
Grading
1.3.
Paving
1.3.1.1.
Procurement
1.3.1.2.
Batching
Asphalt
$40,740
$40,740
1.3.1.3.
Batching
Concrete
$40,740
$40,740
1.3.1.4.
Steamrolling
$10,185.0
$10,185.0
1.4.
Utilities
28518
1.4.1.1
Lighting
$9,506
$9,506
1.4.1.2.
Foundations
$9,506
$9,506
1.4.1.3.
Electrical
Supply
$9,506
$9,506
1.4.1.4.
Traffic Lights
$9,506
$9,506
1.4.1.5.
Lamp Posts
$9,506
$9,506
$39,608.33
$43,569.17
$71,295
$23,765
$237,650
$59,412.50
$19,804.17
$59,412.50
$23,765.00
$23,765.00
$23,765
$23,765.00
$203,700
$101,850
$101,850.0
$20,370.0
66542
40740
$135,800
1.4.2.1.
Ramps
$11,883
$11,883
1.4.2.2.
Signage
$11,883
$11,883
1.4.2.3.
Cross Roads
$11,883
$11,883
1.4.2.4.
Lamp Posts
Markings
$11,883
$11,883
1.4.3.1.
Median Strip
$20,370
$20,370.00
1.4.3.2.
Guard Rails
$20,370
$20,370.00
1.5.
Finishing
1.5.1.
Ride Quality
Tests
1.5.2.
100
900
$1,000
$100.0
$100.0
$200.0
Highway
Inspection
$200.0
$200.0
1.5.3.
Pavement
Crack
Inspection
$200.0
$200.0
1.5.4.
Soil Creep
Inspection
$200.0
$200.0
1.5.5.
Erosion
Control
$200.0
$200.0
Project Cost
Estimates
$680,000
Figure 1: A summary of project budget components and its associated costs (hundred
thousands of dollars)
8
Activity
Planned Value
Percentage Complete
Earned Value
1.1.
Planning
1.1.1.
Feasibility
Studies
$11,316.67
100%
$11,316.67
1.1.2.
Topography
Studies
$11,316.67
100%
$11,316.67
1.1.3.
Geotechnical
Studies
$11,316.67
100%
$11,316.67
1.1.4.
Surveying the
Area
$11,316.67
100%
$11,316.67
1.1.5.
Pavement
Planning
$11,316.67
100%
$11,316.67
1.1.6.1.
Landscape
Design
$11,316.67
100%
$11,316.67
1.1.6.2.
Drainage
Design
$11,316.67
100%
$11,316.67
1.1.6.3.
Electrical
Wiring Design
$11,316.67
100%
$11,316.67
1.1.7.
Procurement
Planning
$11,316.67
100%
$11,316.67
1.2.
Earthwork
1.2.1.1.
Earthmoving
$59,412.50
100%
$59,412.50
1.2.1.2.
Foundation
$59,412.50
80%
$47,530.00
1.2.1.3.
Drainage
$23,765.00
75%
$17,823.75
1.2.1.4.
Landscaping
$23,765.00
90%
$21,388.50
1.2.1.5.
Compaction
$47,530.00
80%
$38,024.00
1.2.1.6.
Grading
$23,765.00
79%
$18,774.35
1.3.
Paving
1.3.1.1.
Procurement
$101,850.00
55%
$56,017.50
1.3.1.2.
Batching
Asphalt
$40,740.00
59%
$24,036.60
1.3.1.3.
Batching
Concrete
$40,740.00
57%
$23,221.80
1.3.1.4.
Steamrolling
$10,185.00
20%
$4,074.00
1.4.
Utilities
1.4.1.1
Lighting
$0.00
0%
$0.00
1.4.1.2.
Foundations
$0.00
0%
$0.00
1.4.1.3.
Electrical
Supply
$0.00
0%
$0.00
1.4.1.4.
Traffic Lights
$0.00
0%
$0.00
1.4.1.5.
Lamp Posts
$0.00
0%
$0.00
1.4.2.1.
Ramps
$0.00
0%
$0.00
1.4.2.2.
Signage
$0.00
0%
$0.00
1.4.2.3.
Cross Roads
$0.00
0%
$0.00
1.4.2.4.
Lamp Posts
Markings
$0.00
0%
$0.00
1.4.3.1.
Median Strip
$0.00
0%
$0.00
1.4.3.2.
Guard Rails
$0.00
0%
$0.00
1.5.
Finishing
10
1.5.1.
Ride Quality
Tests
$0.00
0%
$0.00
1.5.2.
Highway
Inspection
$0.00
0%
$0.00
1.5.3.
Pavement
Crack
Inspection
$0.00
0%
$0.00
1.5.4.
Soil Creep
Inspection
$0.00
0%
$0.00
1.5.5.
Erosion
Control
$0.00
0%
$0.00
Total
$533,015
$412,153
Description
Value
Planned Value
$533,015,000
Earned Value
$412,153,000
Actual Cost
$400,000,000
Budget at Completion
Cost Variance
Schedule Variance
1.03
Schedule Performance
Index
0.773
Budget Estimate at
Completion
11
233 days
Estimated Time to
Complete
301 days
As shown in the table above, the cost was under budget at the end of March according to the
positive cost variance and a cost performance index (1.03) greater than unity. It was estimated
that the project would be completed under budget at a total cost of $970,873,786 according to
the performance till March. However, the project was behind schedule at the end of March,
shown by the negative schedule variance and a schedule performance index less than unity. It
was estimated that, according to the performance till March and if the trend followed the same
path, the project would be completed 68 days later than expected. Since completing the project
on schedule is one of the major criteria of success for the ring road project, the project
management team implemented scheduling compression strategies such as fast tracking
(conducting activities in parallel instead of sequentially) and crashing (shortening duration of
activities by adding resources such as overtime hours and expediting material delivery) in an
effort to bring the schedule back on track.
12
3. Highway paint barrels: all incoming paints must be checked for color consistency,
adhesion failure, light coverage, and pops by inspector.
Failure to adhere to the minimum quality standards will have the material reproduced at the
cost of manufacturer.
A routine check for worker license by an inspector will be conducted to confirm worker work
experience and the necessary qualifications.
Quality Assurance
Government inspectors will liaise with contractors to stay on top of scheduling and overlook
all construction phases performed by subcontractors. Inspectors will ensure that the Texas City
Highway Code are adhered and the costs awarded for each performed work activities are
recorded and reimbursed at the end of each week.
All change requests will be forwarded to inspectors, then subsequent decisions will be discussed
with project managers and the responsible subcontractor.
A quality audit will be performed by project manager at the end of procurement phase in order
to identify the lessons learned and ways to improve performance on future projects.
Quality Control
The following cause-and-effect diagram helps us to trace the root cause of construction delay:
A number of key materials required for the project can be analyzed for quality control. Three
major materials, concrete batches, steel beams, and highway paint barrels are of particular
importance.
Concrete Batches
During the execution phase of the project, an average of 120 batches of concrete will be
produced per day. The civil engineer assigned to the concrete production and design is required
to perform a field slump test on 12 randomly chosen batches per day. The slump test will
indicate the consistency, water content, and workability of the concrete. The city of Texas will
accept a 5% defective rate but more than 40% is unacceptable. If more than 2 batches fail the
slump test then the batches will be rejected.
N=120 batches of concrete
n=12 sampled batches
c=2 batches defective
p0=0.05 acceptable defective rate
p1 = 0.40 unacceptable defective rate
Suppliers risk: = P(x > 2 | p = 0.05)
2
=1 (
=0
12
) 0.05 0.9512
12
12
12
= 1 ( ) (0.05)0 (0.95)12 ( ) (0.05)1 (0.95)11 ( ) (0.05)2 (0.95)10
0
1
2
=1- 0.54036 - 0.34128 - 0.09879
=0.01957=1.96%
Texas Ring Road Project Team risk: = P(x 2 | p = 0.40)
2
= (
=0
12
) 0.40 0.6012
12
12
12
= ( ) (0.40)0 (0.60)12 + ( ) (0.40)1 (0.60)11 + ( ) (0.40)2 (0.60)10
0
1
2
= 0.002177 + 0.017414 + 0.06385
=0.08344=8.34%
Steel Beams
Steel beams will arrive in 300 product-lots. Again, the City of Texas will accept 5% defective
rate and more than 30% is unacceptable. The lead supervisor for steel products will be required
to check 20 beams and if more than 3 are defective the lot will be rejected.
N=300 product lots n=20 sampled beams
c=3 beams defective
p0=0.05 acceptable defective rate
p1 = 0.30 unacceptable defective rate
14
=1 (
=0
20
) 0.05 0.9520
20
20
20
20
= 1 ( ) (0.05)0 (0.95)20 ( ) (0.05)1 (0.95)19 ( ) (0.05)2 (0.95)18 ( )
0
3
1
2
(0.05)3 (0.95)17
= (
=0
20
) 0.10 0.9020
= (20) (0.30)0 (0.70)20 + (20) (0.30)1 (0.70)19 + (20) (0.30)2 (0.70)18 + (20)
0
3
1
2
(0.30)3 (0.70)17
= 0.000798 + 0.006839 + 0.027846 + 0.0716
=0.107=10.7%
=1 (
=0
100
) 0.05 0.95100
0
1
2
100 (0.01)3 (0.99)97
100 (0.01)5 (0.99)95
100 (0.01)4 (0.99)96
(
)
)
)
3
5
4
15
= (
=0
100
) 0.10 0.90100
+(
+(
3
5
4
= 0.00002656 + 0.00029513 + 0.0058916 + 0.015875 + 0.033866
=0.05595=5.60%
Both contractor and producers risks in all sample material categories are under the agreed 15%
risks. The specified conditions on each sampled category ensures the materials purchased from
suppliers are at an acceptable quality.
Risk Identification
The following major risks for the construction of the ring road were identified during a meeting
with the project stakeholders:
1. Weather Conditions - Unfavourable weather conditions could cause delays to the
project schedule, since construction of certain parts of the road depend on the
temperature and whether the conditions are dry or wet. Also, natural occurrences such
as tornadoes and hurricanes are will also negatively affect the project schedule.
2. Inadequate Planning and Scheduling - Due to the immensity of the project, any
inadequate planning on the part of both the project management team and contractors
will most likely result in project schedule delay and unexpected costs.
3. Poor Cost Estimates - Underestimating the cost of materials and labor will cause reevaluation of material and labor cost, which may lead to needing more funds. This could
also result in schedule delays.
4. Geotechnical Problems - Problems may arise regarding the preparation of the soil
(foundation problems, earthworks, managing underground water, and ground stability)
16
which could develop into delays, depending on the magnitude of the problem. Further
delay includes performing geotechnical problem related surveys and studies and then
consult with professionals for a solution.
5. Equipment Malfunction/Failure - Machine breakdowns on a large scale project are
likely to happen, especially if the machines are old or not maintained properly.
6. Delay of material and equipment delivery - Any delay in the delivery of material or
equipment delivery will lead to pushing back work activities.
7. Design Changes- Changes to the design may be needed due to unforeseen
circumstances. Depending on when the design changes occur during the execution of
the project, minor to major delays in the project schedule may occur.
The risks are categorised as shown in the risk breakdown structure below:
Risk Analysis
The following table was used as the standard for assigning probability of occurrence and impact
on project ratings to the different risks identified.
17
Probability Description
Impact Description
Rating
High
15
Medium
May occur
10
Low
Unlikely to occur
The following table was used to assess the priority of monitoring the risks and the general
response plan to follow according to their ratings:
Table 6: Rating range on a combined impact of risk and probability level
Final Rating
Description
Priority
150-225
High
75-100
Medium
25-50
Low
Using the tables above, the identified risks were categorized in terms of priority as follows:
Table 7: Risk priority ranking
Risk
#
Risk
Probability
Impact
Weather Delay
Medium
Medium
100
Medium
Inadequate Planning
Low
High
75
Medium
Medium
Low
50
Low
Geotechnical
Problems
Medium
High
150
High
Equipment
Malfunction/Failure
Low
Medium
50
Low
Delay of material
delivery
Low
High
75
Medium
18
Design Changes
Low
High
75
Medium
The results of the qualitative risk analysis are shown in the probability and impact matrix below:
execution of the project could lead to delays in the schedule, depending on the scale of the
problem encountered. Machine breakdowns on a large scale project are likely to happen,
especially if the machines are old or not maintained properly, and hence can cause delays in the
project schedule. Potential delays in material and equipment delivery could result in work being
halted or not completed on time, which would result in schedule delays. Any changes in the
design could have a big impact on the execution of the project, especially if it happens in the
latter stages of the project.
The tornado diagram in figure 5 shows the results of the sensitivity analysis, which plots the
different risks against the number of days of delay that can be caused due to each of them. The
negative number of days shows positive risk, that is, if the risk/activity takes less time than
anticipated, while the positive number of days show the number of days that the schedule will
be delayed by.
before the execution phase of this project. The risks associated with equipment malfunction and
delays in material delivery will be transferred to the contractors, since they are responsible for
the provision of the material and equipment. The risk due to design changes should be mitigated
by the detailed engineering performed before the execution phase of the project.
All the risks will be monitored periodically to ascertain that they can be controlled. The
contingency reserve of $170 million will be used in the control of the risks in order to lessen
their impact on the project schedule. The management reserve of $150 million will be used to
mitigate the effects of any unexpected risks that may arise during the execution of the project
so that any resulting delay will be minimised.
Conduct Procurement
The City of Texas released a request for proposal (RFP) for each outsourced area of work. The
RFP was open for any interested agency for six weeks, upon which the submitted proposals
would be considered. The proposals were all evaluated based on a weighted scoring guide
relevant to the citys needs and a short list of sellers was created. The sellers were notified and
asked to provide the city with a best and final offer (BAFO) from which the city would select
21
the most appealing offer. All of the awarded contracts are time and material contracts which
are based on the contractor's services and material that they provide.
Control Procurement
To control procurement, Texas City has set up a system to manage any issues that may arise
over the duration of the project. A contract change control system will be implemented so that
any major changes to the agreed upon contract will require an official request to be delivered
and reviewed by the appropriate members of that project area. The change requests will be
approved or denied in a formal write up with supporting reasons for the decision within 5
business days after the request was submitted. Throughout the project there will be procurement
performance reviews which will be used to analyze the efficiency of material use. Regular
performance reviews and inspections will take place during the execution of the project. These
reviews will ensure Occupational Health and Safety practises are being followed and to ensure
the quality of workmanship is to the standard of Texas City. Work performance information,
approved change requests, and records management will also be officially document and kept
on site in both electronic and hard-copy format.
Close Procurement
Upon completion of the contracts, any outstanding issues of concern will be addressed. All
work completed needs to be confirmed and up to the standards of Texas City. All relevant
documents should be updated and reflect the final results, as well as, archived for future
reference in both electronic and hard-copy format. Contracts can then be reviewed and formally
closed and turn over to the City of Texas can be signed off.
Identifying Stakeholders
The stakeholders include all individuals and groups affected by the announcement, execution
and completion of the project. These stakeholders, their roles, and contact information can be
seen below in table 8.
Table 8: Stakeholders information
22
Name
Position
Internal/
External
Responsibility
Contact
Information
City of Texas
Department of
Transportation
Client
Internal
Project Sponsor/
Financer
ctt@texas.com
Sam Tseung
Chief
Operating
Officer
(COO)
Internal
Senior Manager,
approves funds, and
is the superior of all
project managers
y2j@texas.com
Prashant
Nundloll
Project
Manager
Internal
loll@texas.com
Navy Kaur
Human
Resource
Manager
Internal
Team member,
assist in resource
team hiring
kaur@texas.com
Devin Prazak
Civil
Construction
Manager
Internal
Naveed Pirzado
Electrical
Manager
Internal
Manage electrical
construction,
installation and
commissioning
activities
Bora Yoon
Lead
Contractor
from Ring
Road
Construction
Ltd.
External
Plan detailed
by@rrcl.com
landscape and
drainage design.
Supervise 8,500
skilled labourers to
carry out landscape,
drainage, earthwork,
pavement tasks,
Yoona Lim
Lead
Contractor
from Better
Electricals
Ltd.
External
Plan detailed
yl@bel.com
electrical wiring
design for electrical
power supply, and
hire 1,500 skilled
labourers to carry
out electrical wiring,
and lamp posts and
traffic lights
installation.
pirzado@texas.com
23
Tiffany Hwang
Senior Civil
Engineer
from City of
Texas
Internal
Lead civil
engineering
department team to
conduct feasibility,
geotechnical, and
topographical
studies.
ty@texas.com
Sooyoung Choi
Highway
Inspector
External
Inspect road
conditions,
pavement cracks,
and soil erosion.
sc@hi.com
Yuri Kwon
Highway
Consultant
External
Employees
Employees of
different
disciplines
Internal
Customer
Public/
commuters
External
Local and
international public/
commuters
N/A
Suppliers
Material
Suppliers
External
supplier@gmail.com
Government
US
department of
transportation
External
Government official
regulation and
guidelines provider
for roads and
highways
construction
gov.us@gmail.com
The following is the stakeholder analysis performed based on internal and external
stakeholders interest and influence level.
24
25
Lessons Learned
Category
Issue Name
Problem/Success
Impact
Recommendation
Project
Management
Knowledge
areas
Project
Management
Concepts
The structure of
phase-1 closeout
report was not
properly done,
where project
charter was
included in
planning phase,
however it should
have been in
Initiation phase
Though the
assigned work was
completed as per
PMI project
management
guidelines, there
were mistake in
project report
compilation, the
impact was
minimal.
The project
manager should
recheck the final
report before
submitting to client
/ stakeholders and
rectify any issue
proactively.
Procurement
Management
Contract
Requirements
The Project
Manager (PM) was
not fully engaged
in the contract
process.
All requirements
were not included
in the initial
contract award.
PM must be fully
engaged in all
contract processes.
This must be
communicated to
both PM and
contract personnel.
Human
Resources
Management
Award Plan
The PM should
institute and
communicate an
awards/recognition
program for every
project.
Quality
Management
Construction
Material
A process for
determining
acceptable
construction
material quality
was planned into
the project.
26
Zoning
Approval
A risk was
identified that
there may delay in
receiving approval
from the
government. This
was a success
because it was
identified early
and planned for.
Impact was
minimal because
the PM included
potential zoning
delays into
feasibility section
of the project
schedule.
Always consider
external impacts on
the project cost and
schedule. This
must be continuous
throughout the
project lifecycle.
27
APPENDIX
The inconsistencies in the project proposal and this report are as follows:
A more specific responsibilities for each project team members:
Project Cost Management - Prashant Nundloll and Sam Tseung
Project Quality Management - Sam Tseung
Project Risk Management - Prashant Nundloll
Project Procurement Management - Devin Prazak
Project Stakeholder Management - Devin Prazak
Lessons Learned - Navid Pirzado
28