Project Budget, Schedule and Resources

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.

Running Head: PROJECT MANAGEMENT
Project Budget, Schedule and Resources
Name of the Student
Name of the University

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1. 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

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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

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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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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

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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).

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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 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

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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

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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

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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

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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

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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.
3. Project Resources and Critical Path
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

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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

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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

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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

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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

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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]

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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.

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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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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.

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