Repairing of Storage Tanks at Western Australia Site - Project Management

This report includes a basic plan for the project including budget, schedule and resources with the most accurate estimations for Repairing of Storage Tanks at Western Australia Site. It also includes assumptions made while developing the schedule and a detailed project plan.

Running Head: PROJECT MANAGEMENT
Repairing of Storage Tanks at Western Australia Site
Name of the Student
Name of the University

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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Project Budget Estimation.........................................................................................................2
2.1 Overall Budget Estimation....................................................................................................2
2.2 Assumptions..........................................................................................................................7
3.0 Project Schedule........................................................................................................................8
3.1 Schedule.................................................................................................................................8
3.2 Tools and Techniques Used.................................................................................................13
3.3 Comparison of Tools and Methodologies............................................................................14
4.0 Resource Estimation for Project..............................................................................................14
4.1 Resources Required.............................................................................................................14
4.2 Critical Path and Stress Points for Resources......................................................................15
4.3 Tools and Techniques Used.................................................................................................17
5.0 Conclusion...............................................................................................................................17
Bibliography..................................................................................................................................18

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1.0 Introduction
As per the requirements of the project, the three petrol tanks at the Western Australia site
have to be repaired and modified to reach the modern standards as well as stop affecting the
nearby environment negatively. In order to do this, the organization has proposed a new project
to be executed for the works on the tanks.
In this report, a basic plan for the project including budget, schedule and resources has
been developed with the most accurate estimations.
2.0 Project Budget Estimation
2.1 Overall Budget Estimation
Task Name Duration Cost
Repairing of Storage Tanks at
Western Australia Site
132 days $1,394,380.00
Project Survey and Initiation 22 days $95,600.00
Undertake Survey at the Site 3 days $8,400.00
Inspect Tank 1 2 days $5,600.00
Take Notes on Repair
Requirements
1 day $2,800.00
Inspect Tank 2 2 days $5,600.00

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Take Notes on Repair
Requirements
1 day $2,800.00
Inspect Tank 3 2 days $5,600.00
Take Notes on Repair
Requirements
1 day $2,800.00
Prepare Survey Report 3 days $3,600.00
Submit the Report for Analysis 1 day $1,200.00
Call Board Meeting 1 day $1,600.00
Discuss the Tank Issues 1 day $5,000.00
Discuss Other Issues Related to the
Tanks
1 day $5,000.00
Reach a Suitable Solution 1 day $5,000.00
Agree on a Project for Repair and
Upgrade of the Tanks
1 day $5,000.00
Analyze the Feasibility of the
Project
2 days $10,000.00
Analyze the Constraints of the 2 days $10,000.00

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Project
Prepare Project Proposal 5 days $13,000.00
Submit Proposal 1 day $2,600.00
Receive Approval for Project 0 days $0.00
Project Planning 29 days $47,960.00
Develop a Detailed Project Plan 5 days $8,000.00
Develop Project Charter 2 days $3,200.00
Develop Scope of Project 1 day $1,600.00
Develop the Budget and Schedule
of the Project
2 days $5,200.00
Determine Risks Associated with
the Project
5 days $6,000.00
Develop Risk Management Plan 2 days $2,400.00
Prepare Quality Management Plan 2 days $2,400.00
Release Tender for Project
Contract
2 days $1,600.00
Conduct Bidding Session 1 day $800.00

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Select a Contractor for Project
Work
2 days $3,200.00
Discuss the Project with the
Contractor
2 days $7,840.00
Sign Contract 1 day $2,520.00
Hand Over Project Duty to
Contractor
2 days $3,200.00
Provide Approval to Contractor 0 days $0.00
Project Execution 70 days $1,230,820.00
Hire Workers for On Site Work 5 days $4,600.00
Hire Construction Vehicles 2 days $11,600.00
Procure Necessary Resources for
the Project Work
6 days $37,300.00
Proceed for Field Work of Project 1 day $920.00
Repair on Tank 1 30 days $247,600.00
Repair the Steel Patches 5 days $124,600.00
Install Steel Anchors 5 days $24,600.00
Repair Work on Entire Tank 10 days $49,200.00

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Including Top
Cleaning of the Tank 5 days $24,600.00
Repaint of the Tank 5 days $24,600.00
Repair on Tank 2 39 days $413,680.00
Repair the Steel Patches 5 days $205,600.00
Install Steel Anchors 7 days $42,840.00
Repair Work on Entire Tank
Including Top
13 days $79,560.00
Cleaning of the Tank 7 days $42,840.00
Repaint of the Tank 7 days $42,840.00
Repair on Tank 3 56 days $515,120.00
Repair the Steel Patches 6 days $189,120.00
Install Steel Anchors 10 days $65,200.00
Replacement of Main Supply
Valve
5 days $32,600.00
Repair Work on Entire Tank
Including Top
15 days $97,800.00

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Cleaning of the Tank 10 days $65,200.00
Repaint of the Tank 10 days $65,200.00
Project Hand Over 0 days $0.00
Project Closing 11 days $20,000.00
Review of Project Work 4 days $11,200.00
Finish Payments to Contractor and
Workers
2 days $2,800.00
Documentation of Project 5 days $6,000.00
Stakeholder Sign Off and Closing 0 days $0.00
2.2 Assumptions
The assumptions that have been made while developing this schedule are as follows.
 The determined costs for the materials are final and will not exceed the budget.
 The usages for the salaries of the stakeholders are based on 8 working hours per
day except Saturday and Sunday.
 The stakeholders do not need to perform overtime during the entire course of the
project.
 The determined duration of the project is accurate.

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3.0 Project Schedule
3.1 Schedule
Task Name Duration Start Finish
Repairing of Storage Tanks at
Western Australia Site
132 days Fri 21-09-18 Mon 25-03-19
Project Survey and Initiation 22 days Fri 21-09-18 Mon 22-10-18
Undertake Survey at the Site 3 days Fri 21-09-18 Tue 25-09-18
Inspect Tank 1 2 days Wed 26-09-18 Thu 27-09-18
Take Notes on Repair
Requirements
1 day Fri 28-09-18 Fri 28-09-18
Inspect Tank 2 2 days Wed 26-09-18 Thu 27-09-18
Take Notes on Repair
Requirements
1 day Fri 28-09-18 Fri 28-09-18
Inspect Tank 3 2 days Wed 26-09-18 Thu 27-09-18
Take Notes on Repair
Requirements
1 day Fri 28-09-18 Fri 28-09-18
Prepare Survey Report 3 days Mon 01-10-18 Wed 03-10-18
Submit the Report for Analysis 1 day Thu 04-10-18 Thu 04-10-18

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Call Board Meeting 1 day Fri 05-10-18 Fri 05-10-18
Discuss the Tank Issues 1 day Mon 08-10-18 Mon 08-10-18
Discuss Other Issues Related to
the Tanks
1 day Mon 08-10-18 Mon 08-10-18
Reach a Suitable Solution 1 day Mon 08-10-18 Mon 08-10-18
Agree on a Project for Repair
and Upgrade of the Tanks
1 day Mon 08-10-18 Mon 08-10-18
Analyze the Feasibility of the
Project
2 days Tue 09-10-18 Wed 10-10-18
Analyze the Constraints of the
Project
2 days Thu 11-10-18 Fri 12-10-18
Prepare Project Proposal 5 days Mon 15-10-18 Fri 19-10-18
Submit Proposal 1 day Mon 22-10-18 Mon 22-10-18
KEY MILESTONE 1: Receive
Approval for Project
0 days Mon 22-10-18 Mon 22-10-18
Project Planning 29 days Tue 23-10-18 Fri 30-11-18
Develop a Detailed Project Plan 5 days Tue 23-10-18 Mon 29-10-18

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Develop Project Charter 2 days Tue 30-10-18 Wed 31-10-18
Develop Scope of Project 1 day Thu 01-11-18 Thu 01-11-18
Develop the Budget and
Schedule of the Project
2 days Fri 02-11-18 Mon 05-11-18
Determine Risks Associated
with the Project
5 days Tue 06-11-18 Mon 12-11-18
Develop Risk Management Plan 2 days Tue 13-11-18 Wed 14-11-18
Prepare Quality Management
Plan
2 days Thu 15-11-18 Fri 16-11-18
Release Tender for Project
Contract
2 days Mon 19-11-18 Tue 20-11-18
Conduct Bidding Session 1 day Wed 21-11-18 Wed 21-11-18
Select a Contractor for Project
Work
2 days Thu 22-11-18 Fri 23-11-18
Discuss the Project with the
Contractor
2 days Mon 26-11-18 Tue 27-11-18
Sign Contract 1 day Wed 28-11-18 Wed 28-11-18

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Hand Over Project Duty to
Contractor
2 days Thu 29-11-18 Fri 30-11-18
KEY MILESTONE 2: Provide
Approval to Contractor
0 days Fri 30-11-18 Fri 30-11-18
Project Execution 70 days Mon 03-12-18 Fri 08-03-19
Hire Workers for On Site Work 5 days Mon 03-12-18 Fri 07-12-18
Hire Construction Vehicles 2 days Mon 10-12-18 Tue 11-12-18
Procure Necessary Resources
for the Project Work
6 days Wed 12-12-18 Wed 19-12-18
Proceed for Field Work of
Project
1 day Thu 20-12-18 Thu 20-12-18
Repair on Tank 1 30 days Fri 21-12-18 Thu 31-01-19
Repair the Steel Patches 5 days Fri 21-12-18 Thu 27-12-18
Install Steel Anchors 5 days Fri 28-12-18 Thu 03-01-19
Repair Work on Entire Tank
Including Top
10 days Fri 04-01-19 Thu 17-01-19
Cleaning of the Tank 5 days Fri 18-01-19 Thu 24-01-19
Repaint of the Tank 5 days Fri 25-01-19 Thu 31-01-19

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Repair on Tank 2 39 days Fri 21-12-18 Wed 13-02-19
Repair the Steel Patches 5 days Fri 21-12-18 Thu 27-12-18
Install Steel Anchors 7 days Fri 28-12-18 Mon 07-01-19
Repair Work on Entire Tank
Including Top
13 days Tue 08-01-19 Thu 24-01-19
Cleaning of the Tank 7 days Fri 25-01-19 Mon 04-02-19
Repaint of the Tank 7 days Tue 05-02-19 Wed 13-02-19
Repair on Tank 3 56 days Fri 21-12-18 Fri 08-03-19
Repair the Steel Patches 6 days Fri 21-12-18 Fri 28-12-18
Install Steel Anchors 10 days Mon 31-12-18 Fri 11-01-19
Replacement of Main Supply
Valve
5 days Mon 14-01-19 Fri 18-01-19
Repair Work on Entire Tank
Including Top
15 days Mon 21-01-19 Fri 08-02-19
Cleaning of the Tank 10 days Mon 11-02-19 Fri 22-02-19
Repaint of the Tank 10 days Mon 25-02-19 Fri 08-03-19

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KEY MILESTONE 3: Project
Hand Over
0 days Fri 08-03-19 Fri 08-03-19
Project Closing 11 days Mon 11-03-19 Mon 25-03-19
Review of Project Work 4 days Mon 11-03-19 Thu 14-03-19
Finish Payments to Contractor
and Workers
2 days Fri 15-03-19 Mon 18-03-19
Documentation of Project 5 days Tue 19-03-19 Mon 25-03-19
KEY MILESTONE 4:
Stakeholder Sign Off and Closing
0 days Mon 25-03-19 Mon 25-03-19
3.2 Tools and Techniques Used
For the estimation of the schedule, the primary tool used is the work breakdown structure
and the Microsoft Project software. These tools have been chosen because they provide accurate
results when the activities, deliverables and milestones are determined and entered accurately.
Moreover, with the help of these tools, the deliverables can be such managed that relevant
resources can be added thus also assisting in the budget estimation process.
There are some other techniques like manual calculation of schedule, PERT chart
method, CPM (Critical Path Method) and others that can also be used for scheduling. However,
these techniques have many drawbacks and hence, they have not been selected.

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3.3 Comparison of Tools and Methodologies
The comparison of the tools and methodologies are as follows.
WBS Method Other Methods (PERT, CPM, Manual)
Merit Easy to determine and accurate,
calculate, arrange the work packages
sequentially, simple in nature
Both PERT and CPM are detailed methods
of scheduling tools and take into
consideration a large number of additional
factors than WBS
Manual process follows an evaluative
approach and the exceptional cases and
drawbacks can be considered and adjusted
while preparing the schedule
Demerit For complex projects, it sometimes
becomes too simple in nature
PERT and CPM are way too complex and
are not suitable for projects with limited
scope and scale
Manual process is error prone and consumes
huge amount of time
4.0 Resource Estimation for Project
4.1 Resources Required
Resource Name Type Initials Group Max. Units Std. Rate
Project Manager Work P 100% $200.00/hr

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Project Finance
Manager
Work P 100% $175.00/hr
Project Site Supervisor Work P 100% $150.00/hr
Project Contractor Work P 100% $115.00/hr
Procurement Manager Work P 100% $100.00/hr
Worker Group 1 Work W 100% $500.00/hr
Worker Group 2 Work W 100% $650.00/hr
Worker Group 3 Work W 100% $700.00/hr
Construction Vehicles Material C $10,000.00
Repair Equipments and
Tools
Material R $7,500.00
Steel Patch Material S $25,000.00
Other Materials Material O $25,000.00
4.2 Critical Path and Stress Points for Resources
After the resources are integrated with the schedule and considering the stress points, the
following diagram has been developed. In the diagram, the critical path is marked in red in the

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Gantt chart and in the stress points for resources, the left side of the work packages have been
marked with a red humanoid shape.
Figure 1: Gantt Chart including Critical Path, Resources and Stress Points
(Source: Created by Author)

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4.3 Tools and Techniques Used
In order to develop the critical path and stress points, Microsoft Project software tool has
been used in which, the work packages, deliverables and milestones have been entered along
with the resources and their costs. The tool automatically calculated the budget and the stress
points after these resources were allocated to each work package.
This technique is also called bottom up estimation technique. However, another
technique that could have been used is top down estimation technique. This has not been chosen
because it does not provide accurate results for large scale projects that have a large number of
work packages with complex predecessor relationships among them.
5.0 Conclusion
Based on the overall estimations, the project will require 132 working days for
completion if there are no delays in between. Moreover, a budget of $1,395,000 have also been
determined, within which, the project has to be completed (although some buffer budget will be
available in case of urgent additional modifications or accidents.

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