REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA.
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Running head:REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Regional Rail Fleet (NSW) – Recommendations for WA Name of the Student Name of the University Author’s note
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1REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Executive Summary The report is based on the discussion over the various risks that are approaching the project during the course of the design of the new fleet of trains. These risks might hamper the project and might lead to improper service delivery. In the present project, the discussion is focused over the fact that the NSW Government has provided the major responsibility to Momentum Trains for designing a plan and thus plan for the best technical plan that would be implemented for the project. The discussed risks also put focus over the project and the ways in which they could impact the project. The report also discusses about the recommendations that could be applied to the project in order to mitigate the risk scenarios.
2REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Table of Contents 1. Introduction..................................................................................................................................2 2. Discussion....................................................................................................................................2 2.1 The Possible Risk Treatments and other Response Elements that are identified..................2 2.2 Risk Management Plan highlighting the Positive and Negative Risks..................................6 2.3 Recommendations towards the Project with Justification.....................................................9 3. Conclusion.................................................................................................................................10 References......................................................................................................................................12
3REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA 1. Introduction The case study is focused on the works of the NSW Government, which is in the process of replacing the NSW regional fleet of XPLORER, XPT and Endeavour Trains that have included the trains that have been 36 years old. The new train would be mainly be built in Dubbo would be helpful for stimulating the economy of the region and would help in the creation of various skills and sustainable job opportunities. These services would be for the customers who travel from the region of Sydney to different regional centres of NSW (Regional Rail Transport for NSW, 2019). The newly designed trains would help in improving of comfort, safety of passengers, reliability and accessibility in Brisbane, Canberra and Melbourne. The project based on the development of the new railway coaches based within Regional Rail Fleet has been contracted to Momentum Trains. Momentum Trains is considered as one of theinternationalconsortiumthatcomprisesofUGLRailServices,DIFInfrastructureV Cooperatief and CAF Investment projects. The new railway coaches would include several features such as comfortable and functional design that would also incorporate spacious buffet cars, reversible seating and a suitable luggage storage system (New Intercity Fleet Transport for NSW, 2019). The business development contract that is been executed by Momentum Trains is mainly responsible for planning, designing the project outlines and also maintain the newly constructed trains. The project would start in the year 2019 and is thus expected to be completed by the year 2023.
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4REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA 2. Discussion 2.1 The Possible Risk Treatments and other Response Elements that are identified During the work of development of the project, Momentum Trains could incur various kind of risks in relation to project development stages. The different kind of risks based within the project are political interest risks, technical risks, manpower insufficiency, financial risks, construction period risks and operation period risks. The different forms of risk treatment or risk response elements, which could incur for the following project are described as follows: Strategies for Risk Response RisksRisk StatementRisk Response Political Interest Risks There could be different kind of problems based on political interests that could arise within the project. The officials in the NSW Government might change, which might lead to changes in requirements of the present government (Graetz & Franks, 2016). This would create a problem for Momentum Trains in the development of the project. Mitigate:Inordertomitigatethe problems, there should be a formal sign of negotiation contract with the present officials for the progress of the project. Theremightbecertainkindofcorruptions within the contract based development of the project.Thegovernmentmightnotpaythe instalmentfor the project withinthe proper time. Avoid:In order to deal with such kind ofsituationsofcorruption, Momentum Trains should conduct a proper negotiation contract with the governmentofficialsinorderto properly deal with the progress of the project. Technical Risks There might be changes in the technical design oftheproject.Thetechnicianswithinthe project might face difficulties during the design of the coaches. Avoid:Duringdesigningofthe project,thetechniciansshouldbe solelyresponsiblefordesigninga technical plan for the project. There might be some changes in the technical specification of the project (Smith, Merna & Jobling, 2014). The technical specifications that Mitigate:The technical designers of the project should sort out a meeting and conduct a technical design with
5REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA are described within the project might be found tobeinaccurateduringthedesigningand manufacturing of coaches. the high level management team of the company (Takey & de Carvalho, 2015). They should conduct a market research about the ongoing trends in the technical aspects of the project. Manpower related Risks There might be insufficient amount of workers within the team concerned within the project. These workers might not be available due to any kind of payment related issues or other various kind of issues. Mitigate:Theworkerswhowould work on the project should be hired on a contractual basis for some years. They should be told about the salary related queries in order to avoid future complicationsafterthe startof the work. Theremightbesomeincompetentworkers within the design team of the project (Vrhovec et al., 2015) They might be able to understand about the requirements of the project or they mightperforminaccurateactivitiesforthe project. Avoid:In order to deal with such kind ofissueswithintheproject,the projectmanagerandthetechnical head of the project should conduct a certainassessmentofeachofthe workers who would perform work for theproject.Thiswouldhelpin understanding the competent workers within the team. Financial Risks The costs for the resources required within the project might be escalated due to rising price of items required during the manufacturing of the coaches. Mitigate:Inordertomitigatethe risksincomingfortheproject,the project manager should decide some strategies with the project sponsor in order to deal with imminent costs that would be required in the future design stages of the project (Pauw, 2015). After the progress of the project, there might occur a financial crisis or financial constraints over the project (Hopkin, 2018). Hence, in such situationstheprojectmighthavetobe completedwithinthelimitedbudget.This wouldthusresultinlowoutcomesforthe project. Avoid:Theprojectmanager, technical design team and the project sponsor should communicate among themselves. They should conduct an extensive market research about the present costs required for resources and should hence plan the future cost estimation of the project. Construction Period Risks There might be some interruptions in power supply of the project. Electric failure during the work of the project would result in disruption in work of the project (Zeng et al., 2015). This Avoid:Theprojectteamshould consult with the Electric Department atNSWandthusshouldsigna negotiationcontractaboutcertain
6REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA wouldalsoputafurthernegativeimpact towards the construction of the coaches. dealingsfortheproject(Rumane, 2017). They should also ensure that the electric supply remains constant and throughout the project. Absence of proper kind of technical equipment required for the project might lead to disruption of the project. The project might abruptly stop duetosuchkindoflackoftechnical deficiencies for the project. Avoid:Eachofthetechnical resourcesrequiredfortheproject should be procured before the start of the project (Chen & Tarko, 2014). In caseofanylackordeficiencyof resources during the work over the project, the project manager should be notified in advance. This would help in finishing proper execution of the project without any kind of problems.
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7REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA 2.2 Risk Management Plan highlighting the Positive and Negative Risks During the development of the project, a risk management plan would be identified and thus included within the project. The discussed risk management plan helps in the identification of negative and positive risks that might be incurred for the project. Risks Occurred Risk ImplicationsTypeof Risk Levelof Risk Impactof Risk Contingency/Mitigation Political Interest Risks 1. The delay in the solving of the politicalrisksincurredinthe projectwouldleadtoseveral kindofdelayintheproject management scenario. 2.Politicalinstabilitiesduring the work over the project might lead to disruption in the project work (Yeung, 2017). The highest form of impact would lead to disruptionintheentirework over the project. NegativeMediumHighIn order to avoid or mitigate the political risksincurablefortheproject,the project manager and the management team of the organisation should conduct a brief meeting with the officials of the NSW Government (Hirschman, 2014). A proper kind of contract should be signed with the officials and then the project should commence. Technical Risks 1. Improper defining of technical design of the project would lead tocomplicationsinthefinal output of the project. 2.Constantchangesinthe technicaldesignaspectofthe project would lead to improper aspectsoftheproject(Islam, Mouratidis & Weippl, 2014). PositiveMediumMediumIn order to mitigate the risks involved within the project, the technical designer andprojectmanagershouldwork together for sorting out a technical plan for the project (Milosevic & Martinelli, 2016).Thetechnicaldesignershould focus over the requirements of the NSW Government and thus should plan some technicalstrategiesthataretobe
8REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA includedwithinthetechnicalproject plan. Manpower related Risks 1.Insufficientnumberof memberswithin theconcerned team of the project would lead to complexity of performing of the task(Boateng,Chen& Ogunlana, 2015). It would also result in delay over the project work and might lead to miss of deadline for project completion. 2.Incompetentworkerswould leadtoproblemsforthe technical team of the project as theywouldnotbeableto completethetaskasperthe requirements. PositiveLowMediumBasedongatheringtheproper estimationonthenumberofpeople requiredfortheproject,theproject manager would be able to decide about the best possible measure to complete the project (Ebert, 2017). The project manager could also make some assessments in order to decide on the best possible measure to decide over theproperworkerswhocouldbe involved within the team. Financial Risks 1. The rising price of resources and the escalating costs incurred within the project might lead to complications in service delivery (Huston,Rahimzad&Parsa, 2015). 2.Financialconstraintswithin theprojectwouldleadto improper delivery of the project withintheconcerneddateof delivery. NegativeHighHighTheprojectmanagershouldconduct meetings with the project sponsor. They shouldthusdecideonsomekindof strategies for understanding the present market demands (Linnerooth-Bayer & Mechler,2015). They would thusbe abletodecidethebestpossible measures of procuring of items required for the project. Construction1.InterruptionsinsupplyofNegativeMediumHighBasedontheproblemsthatare
9REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Period Riskspower for the project would lead to delay in service delivery for theproject(Chileshe&John Kikwasi, 2014). 2. Lack of the entire technical requirementsorshortageof technicalrequirementsforthe project would lead to delay in project delivery. occurring within the project, the project managershouldameetingwiththe ElectricDepartmentatNSW.They shouldsignanegotiationcontract, which would be able to mention the proper and legal start of the project. The technical resources that would be requiredfortheprojectshouldbe procured before the start of the project (Locatelli, Mancini & Romano, 2014). In case, there is a shortage of supply of itemsfortheproject,theproject manager should conduct constant review over each of the items of the project.
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10REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA 2.3 Recommendations towards the Project with Justification The risks that have approached towards the project could lead to several problems for the success criteria of the project. The different kind of risks that have approached towards the project are of high concern and should be mitigated by taking proper measures that have been defined within the risks management plan. Some of the necessary recommendations that could support the proper success of the project are: Identification of the Issues or Risks– The concerned team involved within the project should conduct a proper assessment of each of the risks within the project. As per the given project case, it has been identified that there are financial risks, operational risks, technical risks and other risks that could affect the project. The project manager should be responsible for gathering each of the technical details of the project. They should thus be responsible for conducting surveys or be present during defining each of the critical aspects of the project. Developing an Action Plan– After the risks have been identified, the project manager decide over the development of an action plan. This action plan should take into consideration about the basic details of each of the technical aspects of the project and should prepare strategies for removing them. Approval of the Action Plan– After the action plan has been defined, it should be approved by the steering committee of Momentum Trains and NSW Government. This would help in keeping a track of each of the recommended changes that would be made for the project. The political risks incurred for the project could be reduced by having a formal meeting with the officials of the NSW Government. The issues could be addressed by conducting a formal meeting and then initiate the project. The technical risks that are incurred within the
11REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA project could be removed by having a proper design aspect of the project. The technical specification of the project could be removed by specifying the decisions to be taken for the project before the initiation of the project. The manpower and technical resources that would be required for the project should be properly estimated during the signing of contract for the project. The project sponsor would then be able to allocate funds required for the project. The financial aspects of the project should be taken into consideration and it would be the sole responsibility of the project manager to ensure that there is a financial stability for the purpose of completing the project. 3. Conclusion Based on the supported discussion from the above report, it could be concluded that each of the described risks within the project should be highly taken into consideration. During the discussion over the project, the various risks have been identified, which could be incurred by Momentum Trains when they would initiate the works over the project. The different risks that have incurred within the project are technical risks, financial risks, construction period risks and risks based on manpower. These risks are highly crucial and thus should be solved at the earliest. This would help in completing the works of the project in a successful manner. The project also discusses about the all forms of possible risk treatments or response elements that could be identified that could be applied for the project. The project would incur the best form of measures, which could be applied in order to complete the project. Upon further consideration over the risks, a risk management plan have been applied for the project. The risk management plan discusses on the negative and positive risks that have been identified for the project. The identification of such kind of risks have been able to provide better suggestion and strategies for mitigating them. The relevant risks identified within the project have been properly
12REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA identified in the report. Hence, with the discussion supported in the report, it has been helpful for identifying the possible risk situations and thus take proper strategies that would help in mitigating the possible risk scenarios. These would thus lead to successful technical design of the project and incur the best outcomes for NSW Government.
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13REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA References Boateng, P., Chen, Z., & Ogunlana, S. O. (2015). An Analytical Network Process model for risks prioritisationinmegaprojects.InternationalJournalofProjectManagement,33(8), 1795-1811. Chen, E., & Tarko, A. P. (2014). Modeling safety of highway work zones with random parameters and random effects models.Analytic methods in accident research,1, 86-95. Chileshe, N., & John Kikwasi, G. (2014). Critical success factors for implementation of risk assessmentandmanagementpracticeswithintheTanzanianconstruction industry.Engineering, Construction and Architectural Management,21(3), 291-319. Ebert,C.(2017,May).Supplierperformancemanagement:riskmitigationandindustry benchmarks.In2017IEEE12thInternationalConferenceonGlobalSoftware Engineering (ICGSE)(pp. 86-95). IEEE. Graetz, G., & Franks, D. M. (2016). Conceptualising social risk and business risk associated with private sector development projects.Journal of Risk Research,19(5), 581-601. Hirschman, A. O. (2014).Development projects observed. Brookings Institution Press. Huston,S.,Rahimzad,R.,&Parsa,A.(2015).‘Smart’sustainableurbanregeneration: Institutions, quality and financial innovation.Cities,48, 66-75. Islam, S., Mouratidis, H., & Weippl, E. R. (2014). An empirical study on the implementation and evaluation of a goal-driven software development risk management model.Information and Software Technology,56(2), 117-133.
14REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Linnerooth-Bayer, J., & Mechler, R. (2015). Insurance for assisting adaptation to climate change in developing countries: a proposed strategy. InClimate Change and Insurance(pp. 29- 44). Routledge. Locatelli,G.,Mancini,M.,&Romano,E.(2014).Systemsengineeringtoimprovethe governanceincomplexprojectenvironments.InternationalJournalofProject Management,32(8), 1395-1410. Milosevic, D. Z., & Martinelli, R. J. (2016).Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons. NewIntercityFleet|TransportforNSW.(2019).Retrievedfrom https://www.transport.nsw.gov.au/projects/current-projects/new-intercity-fleet Pauw, W. P. (2015). Not a panacea: private-sector engagement in adaptation and adaptation finance in developing countries.Climate Policy,15(5), 583-603. RegionalRail|TransportforNSW.(2019).Retrievedfrom https://www.transport.nsw.gov.au/projects/current-projects/regional-rail Rumane, A. R. (2017).Quality management in construction projects. CRC Press. Smith, N. J., Merna, T., & Jobling, P. (2014).Managing risk in construction projects. John Wiley & Sons. Takey, S. M., & de Carvalho, M. M. (2015). Competency mapping in project management: An action research study in an engineering company.International Journal of Project Management,33(4), 784-796.
15REGIONAL RAIL FLEET (NSW) – RECOMMENDATIONS FOR WA Vrhovec, S. L., Hovelja, T., Vavpotič, D., & Krisper, M. (2015). Diagnosing organizational risks insoftwareprojects:Stakeholderresistance.Internationaljournalofproject management,33(6), 1262-1273. Yeung, H. W. C. (2017). The political economy of transnational corporations: a study of the regionalization of Singaporean firms. InSingapore(pp. 57-84). Routledge. Zeng, S. X., Ma, H. Y., Lin, H., Zeng, R. C., & Tam, V. W. (2015). Social responsibility of majorinfrastructureprojectsinChina.InternationalJournalofProject Management,33(3), 537-548.