This article discusses the project budget, schedule, and resources for an oil storage facility upgrade project. It includes a detailed breakdown of costs, estimated schedule, and resources used. The project was prepared using Microsoft Project software and bottom-up estimation method.
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Running Head: PROJECT MANAGEMENT Project Budget, Schedule and Resources Name of the Student Name of the University
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1PROJECT MANAGEMENT 1. Project Budget The estimated project budget as per the deliverables is shown in the following table. Task NameCost Upgradation of Oil Storage Facility$5,163,800.00 [TOTAL BUDGET] Project Initiation Stage$266,400.00 Survey of the Site$51,000.00 Identificationof theIssuesand 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
2PROJECT MANAGEMENT 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
3PROJECT MANAGEMENT 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$120,000.00
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4PROJECT MANAGEMENT and Equipments 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
5PROJECT MANAGEMENT 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).
6PROJECT MANAGEMENT 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. 2. Project Schedule An estimated schedule for the case study project is shown in the following table. Task NameDurationStartFinish Upgradation of Oil Storage Facility283 daysMon 07-05-18Wed 05-06-19 Project Initiation Stage47 daysMon 07-05-18Tue 10-07-18 Survey of the Site15 daysMon 07-05-18Fri 25-05-18 Identification of the Issues and Problems 5 daysMon 28-05-18Fri 01-06-18 Call Team Meeting2 daysMon 04-06-18Tue 05-06-18 Discuss the Issues5 daysWed 06-06-18Tue 12-06-18 Find Possible Solutions2 daysWed 13-06-18Thu 14-06-18 Discuss Project Feasibility2 daysFri 15-06-18Mon 18-06-18
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10PROJECT MANAGEMENT Works on Tank 3126 daysThu 11-10-18Thu 04-04-19 RelocationofAttached Structures and Equipments 15 daysThu 11-10-18Wed 31-10-18 Install Scaffolding2 daysThu 01-11-18Fri 02-11-18 Install Cranes2 daysMon 05-11-18Tue 06-11-18 Start Repair Work2 daysWed 07-11-18Thu 08-11-18 Add Steel Patches30 daysFri 09-11-18Thu 20-12-18 Add Steel Anchors30 daysFri 21-12-18Thu 31-01-19 Replace Main Supply Valve15 daysFri 01-02-19Thu 21-02-19 Cleaning of Tank10 daysFri 22-02-19Thu 07-03-19 Repaint of the Tank10 daysFri 08-03-19Thu 21-03-19 Remove Cranes5 daysFri 22-03-19Thu 28-03-19 Remove Scaffolds5 daysFri 29-03-19Thu 04-04-19 Project Closing Stage44 daysFri 05-04-19Wed 05-06-19 Project Handover5 daysFri 05-04-19Thu 11-04-19 Review of the Entire Project15 daysFri 12-04-19Thu 02-05-19
11PROJECT MANAGEMENT Project Documentation10 daysFri 03-05-19Thu 16-05-19 Clearing of Payments and Dues10 daysFri 17-05-19Thu 30-05-19 Stakeholder Signoff2 daysFri 31-05-19Mon 03-06-19 Project Closing2 daysTue 04-06-19Wed 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. 3. Project Resources and Critical Path The project resources used are shown in the following table. Resource NameTypeMax. UnitsStd. RateOvt. Rate Project ManagerWork100%$250.00/hr$0.00/hr Revenue DivisionWork100%$600.00/hr$0.00/hr
12PROJECT MANAGEMENT HSE ManagerWork100%$175.00/hr$0.00/hr Terminal ManagerWork100%$175.00/hr$0.00/hr ContractorWork100%$100.00/hr$0.00/hr Repair WorkersWork100%$1,000.00/hr$0.00/hr Steel PatchesMaterial$50,000.00 Steel AnchorsMaterial$75,000.00 Supply ValveMaterial$30,000.00 CranesMaterial$15,000.00 ScaffoldingMaterial$5,000.00 Repair ToolsMaterial$5,000.00 PaintsMaterial$5,000.00 The allocation of resources in the project deliverables is shown in the following table. Task NameResource Names Upgradation of Oil Storage Facility Project Initiation Stage Survey of the SiteHSE Manager, Project Manager
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16PROJECT MANAGEMENT Start Repair WorkRepair Tools[1], Repair Workers Add Steel PatchesRepair Workers, Steel Patches[7] Add Steel AnchorsRepair Workers, Steel Anchors[4] Cleaning of TankRepair Tools[1], Repair Workers Repaint of the TankPaints[1], Repair Workers Remove CranesRepair Workers Remove ScaffoldsRepair Workers Works on Tank 3 Relocation of Attached Structures and Equipments Repair Workers Install ScaffoldingRepair Workers, Scaffolding[1] Install CranesCranes[2], Repair Workers Start Repair WorkRepair Tools[1], Repair Workers Add Steel PatchesRepair Workers, Steel Patches[6] Add Steel AnchorsRepair Workers, Steel Anchors[4] Replace Main Supply ValveRepair Workers, Supply Valve[1]
17PROJECT MANAGEMENT Cleaning of TankRepair Tools[1], Repair Workers Repaint of the TankPaints[1], Repair Workers Remove CranesRepair Workers Remove ScaffoldsRepair Workers Project Closing Stage Project HandoverContractor Review of the Entire Project ProjectManager,TerminalManager,HSE Manager Project DocumentationTerminal Manager Clearing of Payments and DuesRevenue Division Stakeholder Signoff Contractor, HSE Manager, Revenue Division, Terminal Manager Project ClosingProject Manager Again, the critical path for the project is shown in the following diagram.
18PROJECT MANAGEMENT Figure 1: Critical Path for the Project (Source: Created by Author) 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
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19PROJECT MANAGEMENT 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.
20PROJECT MANAGEMENT References Binder, J., 2016.Global project management: communication, collaboration and management across borders. Routledge. 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.
21PROJECT MANAGEMENT Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking projectmanagementperformanceandprojectsuccess.Internationaljournalofproject management,32(2), pp.202-217. Nicholas,J.M.andSteyn,H.,2017.Projectmanagementforengineering,businessand 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.