Project and Risk Management

This document provides a comprehensive study material on project and risk management. It includes topics such as project charter, scope statement, work breakdown structure, schedule, network diagram, and critical path. The document also discusses the challenges and opportunities faced by British Petroleum in venturing into renewable energy sources.

Running Head: PROJECT AND RISK MANAGEMENT
Project and Risk Management
Name of the Student
Name of the University

1PROJECT AND RISK MANAGEMENT
Table of Contents
Section 1: Introduction and Project Charter....................................................................................2
1. Introduction..............................................................................................................................2
2. Project Charter and Scope Statement......................................................................................2
3. Project Work Breakdown Structure.........................................................................................8
4. Schedule, Network Diagram, Critical Path............................................................................11
References......................................................................................................................................17

2PROJECT AND RISK MANAGEMENT
Section 1: Introduction and Project Charter
1. Introduction
British Petroleum (BP) is a multinational company that deals with the business of
petroleum supply to various retailers and clients and it is also one of the “supergiants” in the
world in this business. However, with recent recommendations from various health organizations
around the world to reduce the use of fossil fuels, BP is now focusing on renewable energy like
solar energy and electricity (Zhao and Burke 2014). The company has now commissioned a new
project in which solar car charging points will be set up at five different locations in UK. As per
the initial decision taken, the five locations will have to in popular locations where most people
are expected to use solar powered cars. Being one of the supergiants in the world in oil industry,
the company does not face much competitive challenge but keeping up with the increasing
demands of oil and maintain and grow the business is a challenge itself (Al-Mashhadany and
Attia 2014). On the other hand, ever since the company has started venturing into other markets
like eco-friendly and renewable energy sources, a great opportunity has opened for the company
to establish its authority over the new market that is currently on the rise in terms of usefulness
and popularity.
2. Project Charter and Scope Statement
The rationale for triggering this project is that with worldwide calls for increasing use of
renewable energy and expected reduction in use of oil and other fossil fuels, the company must
venture into the growing market in order to maintain sustainability of the business (Kim et al.
2014).

3PROJECT AND RISK MANAGEMENT
The purpose of the project is to provide charging points for solar powered cars that will
encourage people to purchase more solar powered cars.
Three SMART objectives of the project are as follows.
Specific – The project will deliver five solar power charging points for vehicles at five
different parts of London.
Relevant – The project will promote the purchase of solar powered cars among the
customers.
Time Based – The project aims to deliver the charging stations within 6-7 months time
period.
The key stakeholders in this project include the project manager, construction manager,
mechanical engineer and electrical engineer. The scope of the project that is also within the
boundary of the project includes the following (Heagney 2016).
 Renting land from Government for installation works
 Construction of charging stations
 Installation of charging machines
 Connection with the main transmission line
 Testing of the machines
The project timeline including the budget estimation is shown in the following table.
Task Name Duration Start Finish Cost
Installation of Solar Car 181 days Mon 5/6/19 Mon 1/13/20 $4,066,400.00

4PROJECT AND RISK MANAGEMENT
Charging Points
Project Initial Planning
and Discussion Phase
14 days Mon 5/6/19 Thu 5/23/19 $56,000.00
Marketing Department
Meeting
2 days Mon 5/6/19 Tue 5/7/19 $8,000.00
Discussion Regarding
New Market Venture
2 days Wed 5/8/19 Thu 5/9/19 $8,000.00
Consideration of Solar
Energy Market
2 days Fri 5/10/19 Mon 5/13/19 $8,000.00
Make Final Decision 1 day Tue 5/14/19 Tue 5/14/19 $4,000.00
Prepare Project
Proposal
5 days Wed 5/15/19 Tue 5/21/19 $20,000.00
Submit Proposal to
Higher Management
2 days Wed 5/22/19 Thu 5/23/19 $8,000.00
Receive Approval to
Proceed
0 days Thu 5/23/19 Thu 5/23/19 $0.00
Project Preparation
Phase
28 days Fri 5/24/19 Tue 7/2/19 $164,400.00
Form Project Team 3 days Fri 5/24/19 Tue 5/28/19 $12,000.00

5PROJECT AND RISK MANAGEMENT
Survey Various Area of
the City
10 days Wed 5/29/19 Tue 6/11/19 $40,000.00
Identify Specific and
Convenient Points for Solar
Power Charging
4 days Wed 6/12/19 Mon 6/17/19 $16,000.00
Analyze Project
Feasibility
5 days Tue 6/18/19 Mon 6/24/19 $34,000.00
Determine Resources
Required for the Project
4 days Tue 6/25/19 Fri 6/28/19 $54,400.00
Submit Analysis Report 2 days Mon 7/1/19 Tue 7/2/19 $8,000.00
Receive Approval to
Proceed with Project
Planning
0 days Tue 7/2/19 Tue 7/2/19 $0.00
Detailed Planning for
the Project
37 days Wed 7/3/19 Thu 8/22/19 $192,800.00
Preparation of Project
Charter
5 days Wed 7/3/19 Tue 7/9/19 $20,000.00
Preparation of Project 2 days Wed 7/10/19 Thu 7/11/19 $8,000.00

6PROJECT AND RISK MANAGEMENT
Schedule
Estimation of Final
Budget
5 days Fri 7/12/19 Thu 7/18/19 $20,000.00
Risk Analysis 5 days Fri 7/19/19 Thu 7/25/19 $48,000.00
Development of Risk
Mitigation Plan
3 days Fri 7/26/19 Tue 7/30/19 $28,800.00
Contact Government for
License
2 days Wed 7/31/19 Thu 8/1/19 $8,000.00
Receive Approval and
Land Rent from
Government
15 days Fri 8/2/19 Thu 8/22/19 $60,000.00
Completion of Planning 0 days Thu 8/22/19 Thu 8/22/19 $0.00
Charging Point
Installation Works
85 days Fri 8/23/19 Thu 12/19/19 $3,048,000.00
Purchasing Materials 10 days Fri 8/23/19 Thu 9/5/19 $2,040,000.00
Building of Charging
Station
30 days Fri 9/6/19 Thu 10/17/19 $384,000.00

7PROJECT AND RISK MANAGEMENT
Installation of Electrical
Machines and Equipments
20 days Fri 10/18/19 Thu 11/14/19 $336,000.00
Connection with Main
Line
10 days Fri 11/15/19 Thu 11/28/19 $136,000.00
Installation of Insulators 5 days Fri 11/29/19 Thu 12/5/19 $84,000.00
Detailed Testing 10 days Fri 12/6/19 Thu 12/19/19 $68,000.00
Completion of
Installation
0 days Thu 12/19/19 Thu 12/19/19 $0.00
Commissioning, Sign
Off and Closing
17 days Fri 12/20/19 Mon 1/13/20 $605,200.00
Review the Charging
Stations
10 days Fri 12/20/19 Thu 1/2/20 $540,000.00
Commissioning of the
Charging Stations
5 days Fri 1/3/20 Thu 1/9/20 $38,000.00
Stakeholder Sign Off 2 days Fri 1/10/20 Mon 1/13/20 $27,200.00
Closing 0 days Mon 1/13/20 Mon 1/13/20 $0.00
The project assumptions include the following.
 There is sufficient number of solar powered cars in the city.
 There is sufficient amount of solar power generated for charging the cars.

8PROJECT AND RISK MANAGEMENT
 The charging points will encourage the customers to purchase more solar powered
cars.
The constraints of the project are as follows.
 Solar power generation is a constraint as there is no high efficiency solar energy
capturing device yet developed.
 Installation of five charging stations will require huge amount of investment.
3. Project Work Breakdown Structure
The work breakdown structure of the project is shown in the following table (Kerzner and
Kerzner 2017).
WBS Task Name
0 Installation of Solar Car Charging Points
1 Project Initial Planning and Discussion Phase
1.1 Marketing Department Meeting
1.2 Discussion Regarding New Market Venture
1.3 Consideration of Solar Energy Market
1.4 Make Final Decision
1.5 Prepare Project Proposal
1.6 Submit Proposal to Higher Management

9PROJECT AND RISK MANAGEMENT
1.7 Receive Approval to Proceed
2 Project Preparation Phase
2.1 Form Project Team
2.2 Survey Various Area of the City
2.3 Identify Specific and Convenient Points for Solar Power Charging
2.4 Analyze Project Feasibility
2.5 Determine Resources Required for the Project
2.6 Submit Analysis Report
2.7 Receive Approval to Proceed with Project Planning
3 Detailed Planning for the Project
3.1 Preparation of Project Charter
3.2 Preparation of Project Schedule
3.3 Estimation of Final Budget
3.4 Risk Analysis
3.5 Development of Risk Mitigation Plan
3.6 Contact Government for License

10PROJECT AND RISK MANAGEMENT
3.7 Receive Approval and Land Rent from Government
3.8 Completion of Planning
4 Charging Point Installation Works
4.1 Purchasing Materials
4.2 Building of Charging Station
4.3 Installation of Electrical Machines and Equipments
4.4 Connection with Main Line
4.5 Installation of Insulators
4.6 Detailed Testing
4.7 Completion of Installation
5 Commissioning, Sign Off and Closing
5.1 Review the Charging Stations
5.2 Commissioning of the Charging Stations
5.3 Stakeholder Sign Off
5.4 Closing

11PROJECT AND RISK MANAGEMENT
4. Schedule, Network Diagram, Critical Path
The main activities that define the execution work package for the project is shown in the
following table.
WBS Task Name
0 Installation of Solar Car Charging Points
1 Charging Point Installation Works
1.1 Purchasing Materials
1.2 Building of Charging Station
1.3 Installation of Electrical Machines and Equipments
1.4 Connection with Main Line
1.5 Installation of Insulators
1.6 Detailed Testing
1.7 Completion of Installation
The project is sequenced using CPA methodology as shown in the following diagram.

12PROJECT AND RISK MANAGEMENT
Figure 1: Project Sequence (Execution Phase) Using CPA Method
(Source: Created by Author)
The resource estimation is shown in the following table.
Resource Name Type Max. Units Std. Rate
Project Manager Work 100% $500.00/hr
Electrical Engineer Work 100% $450.00/hr
Mechanical Engineer Work 100% $400.00/hr
Construction Manager Work 100% $350.00/hr
Worker Group 1 Work 100% $250.00/hr
Worker Group 2 Work 100% $250.00/hr
Worker Group 3 Work 100% $250.00/hr
Worker Group 4 Work 100% $250.00/hr
Worker Group 5 Work 100% $250.00/hr
Materials Material $2,000,000.00
Other Costs Material $500,000.00
The resources are allocated to the work packages as shown below.
WBS Task Name Resource Names

13PROJECT AND RISK MANAGEMENT
4 Charging Point Installation Works
4.1 Purchasing Materials Materials[1], Project Manager
4.2 Building of Charging Station
Construction Manager, Worker Group 1,
Worker Group 2, Worker Group 3,
Worker Group 4, Worker Group 5
4.3
Installation of Electrical Machines
and Equipments
Electrical Engineer, Mechanical Engineer,
Worker Group 1, Worker Group 2,
Worker Group 3, Worker Group 4,
Worker Group 5
4.4 Connection with Main Line
Electrical Engineer, Worker Group 1,
Worker Group 2, Worker Group 3,
Worker Group 4, Worker Group 5
4.5 Installation of Insulators
Electrical Engineer, Mechanical Engineer,
Worker Group 1, Worker Group 2,
Worker Group 3, Worker Group 4,
Worker Group 5
4.6 Detailed Testing Electrical Engineer, Mechanical Engineer
4.7 Completion of Installation
The duration of the activity is estimated as follows.

14PROJECT AND RISK MANAGEMENT
WBS Task Name Duration Start Finish
4
Charging Point Installation
Works
85 days Fri 8/23/19 Thu 12/19/19
4.1 Purchasing Materials 10 days Fri 8/23/19 Thu 9/5/19
4.2 Building of Charging Station 30 days Fri 9/6/19 Thu 10/17/19
4.3
Installation of Electrical
Machines and Equipments
20 days Fri 10/18/19 Thu 11/14/19
4.4 Connection with Main Line 10 days Fri 11/15/19 Thu 11/28/19
4.5 Installation of Insulators 5 days Fri 11/29/19 Thu 12/5/19
4.6 Detailed Testing 10 days Fri 12/6/19 Thu 12/19/19
4.7 Completion of Installation 0 days Thu 12/19/19 Thu 12/19/19
Finally, the project Gantt chart is developed as follows.

15PROJECT AND RISK MANAGEMENT
Figure 2: Gantt Chart of the Project
(Source: Created by Author)

16PROJECT AND RISK MANAGEMENT
In this case, the critical path covers the entire project as the dependency chain within the
activities is linear in nature.

17PROJECT AND RISK MANAGEMENT
References
Al-Mashhadany, Y.I. and Attia, H.A., 2014. Novel design and implementation of portable
charger through low-power PV energy system. In Advanced Materials Research (Vol. 925, pp.
495-499). Trans Tech Publications.
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.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kim, J., Wang, Y., Pedram, M. and Chang, N., 2014, August. Fast photovoltaic array
reconfiguration for partial solar powered vehicles. In Proceedings of the 2014 international
symposium on Low power electronics and design (pp. 357-362). ACM.
Mouli, G.C., Bauer, P. and Zeman, M., 2016. System design for a solar powered electric vehicle
charging station for workplaces. Applied Energy, 168, pp.434-443.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Wang, X., Jiang, C., Lei, B., Teng, H., Bai, H.K. and Kirtley, J.L., 2016. Power-loss analysis and
efficiency maximization of a silicon-carbide MOSFET-based three-phase 10-kW bidirectional

18PROJECT AND RISK MANAGEMENT
EV charger using variable-DC-bus control. IEEE Journal of Emerging and Selected Topics in
Power Electronics, 4(3), pp.880-892.
Zhao, H. and Burke, A., 2014, December. An intelligent solar powered battery buffered EV
charging station with solar electricity forecasting and EV charging load projection functions.
In 2014 IEEE International Electric Vehicle Conference (IEVC) (pp. 1-7). IEEE.