Evaluating Risk Management Strategies in Project Management

The research aims to critically analyze the triple constraint model in project management, particularly focusing on its application within the realm of Information Technology (IT) projects in Australia. Through case studies including Victoria's My Health Record system and the Queensland Health ...Read More

Running head: PROJECT MANAGEMENT
Project Management: Large Multinational Oil Company in Australia
Name of the Student:
Student ID:
Name of the University:
Author’s note:

2PROJECT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Implementation Plan of Oil Tanker Development Project..............................................................3
2. Management Plan for the project of development of Oil Tanker................................................6
3. Project Performance Evaluation for Oil Tanker Development Project.......................................9
4. Project Closure for Development of Oil Tanker Project...........................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

3PROJECT MANAGEMENT
Introduction
The project management holds an integral part for the analysis of the operations of the
project and integration of the effective processes. The concept of project management is applied
for various types of project such as construction, IT technology, program and events, and
business development (Baratta 2006). The following assignment would evaluate the case study
of Oil Tanker Development for Large Multinational Oil Company in Australia. The development
of the operations and the simultaneous implication would be helpful for the effective project
management operations for the Oil Tanker Development Project.
Implementation Plan of Oil Tanker Development Project
The project implementation plan is developed on the basis of the type of the project. The
project of Oil Tanker Development Project is developed for the integration of the effective
process. The analysis of the implementation would be evolved with the development of the
project operations. The Project Implementation Plan Structure consists of five phases namely
project initiation, project planning, project implementation, project monitoring, and project
closure (ExecutiveBrief 2008). The project of developing the oil tanker would require the
development of the effective operations. The activities of the implementation plan for Oil Tanker
Development Project are analysis of project requirements, project charter development, tender
submission, government approval, requirement analysis of planning, gathering resources of
project, developing plan of operations, reviewing plan, levelling the site, making cemented
grounds for location, implementing plan of operations, constructing boundaries at the site,
raising walls and forming shelter, detail analysis of tanker specification, bottom tank
development, installation of tank plates, installation of shell plates, drainage works at the site,

4PROJECT MANAGEMENT
coating the tanks with c3, adding tinkles to the tankers, building platforms, making pipeline
connection, connecting the tankers platform by passage way, fire safety installation, functional
testing for tanker operations, approved by managers, approval by government, tankers are
functional for general use, and project closed. These operations are divided into the five phase
for ensuring that the operations of the project are completed in the estimated time duration. The
project would require the Top-Down Management Structure for the development of the project
implementation and carrying out of the activities of the project (Flyvbjerg 2006). The project
would require the Surveyors, Project Manager, Planner, Contractor, Workers, Technicians, and
Supervisors.
Team
Member
Roles and Responsibilities Skills and Attributes
Surveyors The surveyors are in charge of the
analysis operations for the project of
development of Oil Tanker for Large
Multinational Oil Company in
Australia. The activities of Surveyors
include Analysis of Project
Requirements, Requirement Analysis of
Planning, and Detail Analysis of tanker
specification.
The Surveyors for the project of
development of Oil Tanker for Large
Multinational Oil Company in
Australia would require the skills and
attributes of analysis experience, field
knowledge, and understanding of the
tanker construction requirements
(Goetz 2010).
Project
Manager
The project managers are responsible
for the development of the improved
operations and ensuring the success of
the project (Haughey 2011). It is
evident that the project manager for the
project of development of Oil Tanker
for Large Multinational Oil Company in
Australia would have to play a crucial
role for the completion of the project
and they are responsible for gathering
resources of project, reviewing plan,
The project manager for the project of
development of Oil Tanker for Large
Multinational Oil Company in
Australia would require the use of the
effective management skills,
communication, leadership, and client
persuasion.

5PROJECT MANAGEMENT
and approved by managers
Planner The planner for the project of
development of Oil Tanker for Large
Multinational Oil Company in Australia
would be helpful for the development of
the effective and improved development
plan of operations. The planner would
be in charge of the project plan
development and scheduling. The
activities for which the planner is
responsible are project charter
development, tender submission,
developing plan of operations, and
implementing plan of operations for the
project.
The project planner would have to
ensure that all the activities of the
project would be formed and proper
sequence of the activities are developed
for the project. the attributes and skills
required for the planner of the project
of development of Oil Tanker for Large
Multinational Oil Company in
Australia are forecasting ability,
knowledge of plan development, and
use of Ms-Project software.
Contractor The contractor for the project of
development of Oil Tanker for Large
Multinational Oil Company in Australia
would provide outside or external
support for the project and would take
care of the outsourced activities. The
contractor would held effective control
of the operations and it would be
developed for taking care of the
activities that are not possible for being
managed by the existing project team.
Construction knowledge, architectural
understanding, and some idea of fluid
mechanics should be present for the
contractor
Workers The workers for the project of
development of Oil Tanker for Large
Multinational Oil Company in Australia
would carry out all the small activities
and it would tend to the development of
the construction activities. The
construction of the oil tanker would be
carried out by the workers.
Hard work, construction habit and
experience are some of the qualities of
workers
Technicians The technicians for the project of
development of Oil Tanker for Large
The development skills, knowledge of
dynamics, and experience in

6PROJECT MANAGEMENT
Multinational Oil Company in Australia
are responsible for the development of
the safety features and ease of
operations for the construction activities
(Van de Vonder et al. 2008). They
would integrate the development of the
activities and form the plan of system
development for the construction of Oil
Tanker
construction are some of the skills of
technicians.
Supervisors The supervisor for the project of
development of Oil Tanker for Large
Multinational Oil Company in Australia
would be responsible for the
development of the project supervision
and ensuring that the activities of the
project are carried on successfully.
The supervisors of project would have
to form the development of the
activities and form the analysis of the
operations.
2. Management Plan for the project of development of Oil Tanker
The project management plan for the project of development of Oil Tanker for Large
Multinational Oil Company in Australia would comprise of developing the Project Schedule
Plan, Budget Estimate Plan, Resource Management Plan, and Scope and Change
Management Plan (Kerzner 2013). The description of all these plans have been given below,
Project Schedule Plan: The project schedule plan is developed for ensuring that the
activities of the project are completed in the estimated time duration (Herroelen, Leus and
Demeulemeester 2002). The project schedule plan consists of various activities and scheduled as
shown in the table below,
Task Name Duration Start Finish
Development of Oil Tanker Project 97 days Tue 12/19/17 Wed 5/2/18

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Initialization of project 10 days Tue 12/19/17 Mon 1/1/18
Analysis of Project Requirements 3 days Tue 12/19/17 Thu 12/21/17
Project Charter Development 4 days Fri 12/22/17 Wed 12/27/17
Tender Submission 2 days Thu 12/28/17 Fri 12/29/17
Government Approval 1 day Mon 1/1/18 Mon 1/1/18
Making Appropriate Plan for Project 13 days Tue 1/2/18 Thu 1/18/18
Requirement Analysis of Planning 2 days Tue 1/2/18 Wed 1/3/18
Gathering Resources of Project 4 days Thu 1/4/18 Tue 1/9/18
Developing Plan of Operations 5 days Wed 1/10/18 Tue 1/16/18
Reviewing Plan 2 days Wed 1/17/18 Thu 1/18/18
Constructing Site for Oil tankers 28 days Fri 1/19/18 Tue 2/27/18
Leveling the site 10 days Fri 1/19/18 Thu 2/1/18
Making cemented grounds for location 4 days Fri 2/2/18 Wed 2/7/18
Implementing plan of operations 3 days Thu 2/8/18 Mon 2/12/18
Constructing Boundaries at the site 6 days Tue 2/13/18 Tue 2/20/18
Raising Walls and forming shelter 5 days Wed 2/21/18 Tue 2/27/18
Refurbishing the Tankers 39 days Wed 2/28/18 Mon 4/23/18
Detail Analysis of tanker specification 3 days Wed 2/28/18 Fri 3/2/18
Bottom tank development 6 days Mon 3/5/18 Mon 3/12/18
Installation of tank plates 5 days Tue 3/13/18 Mon 3/19/18
Installation of Shell Plates 4 days Tue 3/20/18 Fri 3/23/18
Drainage works at the site 3 days Mon 3/26/18 Wed 3/28/18
Coating the tanks with C3 2 days Thu 3/29/18 Fri 3/30/18
Adding Tinkles to the Tankers 2 days Mon 4/2/18 Tue 4/3/18

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Building Platforms 4 days Wed 4/4/18 Mon 4/9/18
Making Pipeline connection 3 days Tue 4/10/18 Thu 4/12/18
Connecting the tankers platform by passage way 2 days Fri 4/13/18 Mon 4/16/18
Fire safety installation 5 days Tue 4/17/18 Mon 4/23/18
Closing the Project 7 days Tue 4/24/18 Wed 5/2/18
Functional Testing for tanker operations 3 days Tue 4/24/18 Thu 4/26/18
Approved by Managers 1 day Fri 4/27/18 Fri 4/27/18
Approval by Government 1 day Mon 4/30/18 Mon 4/30/18
Tankers are functional for general use 1 day Tue 5/1/18 Tue 5/1/18
Project Closed 1 day Wed 5/2/18 Wed 5/2/18
Budget Estimate Plan: The project of development of Oil Tanker for Large
Multinational Oil Company in Australia would comprise of developing an effective project
budget for managing the cost of the project. The overall project budget would comprise of the
cost of the individual materials and salary paid to the team members (Jutte 2016). The budget
estimate plan for the project includes,
Resources Cost
Surveyors $ 3280.00
Project Manager $ 11930.00
Planner $ 5640.00
Contractor $ 9470.00
Workers $ 11750.00
Technicians $ 7430.00
Supervisors $ 4300.00

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Cost of Raw Materials $ 13000.00
Cost of site $ 17600.00
Other costs (Travelling, Transportation, and
lunch cost for project team)
$ 5600.00
Total Budget $ 90000.00
Resource Management Plan: The resource management plan is formed for the
integration of the effective resource allocation and development of the improved process
development (Lovallo and Kahneman 2003). The resources of the project are Surveyors, Project
Manager, Planner, Contractor, Workers, Technicians, Supervisors, raw materials, site, and
equipments. The resource management plan would integrate the development of project
operations and its analysis for the deployment of the project resources.
Scope and Change Management Plan: The scope and change management plan is
developed for ensuring that the project outcomes are aligned to the requirements of the project
and there is no probability of the occurrence of any issue for the system (LeMay 2011). The
Scope and Change Management Plan are helpful in keeping the quality of the project intact.
3. Project Performance Evaluation for Oil Tanker Development Project
The project’s performance evaluation can be done by the help of using analysis of the payback
and net economic value of the project. The feasibility study would help in determining the
accuracy of the project (Kloppenborg 2014). The overall project cost is comprise of the cost of
the individual activities such as Analysis of Project Requirements $2,000.00, Project Charter
Development $1,080.00, Tender Submission $720.00, Government Approval $0.00,
Requirement Analysis of Planning $2,000.00, Gathering Resources of Project $7,680.00,

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Developing Plan of Operations $1,440.00, Reviewing Plan $1,280.00, Levelling the site
$3,360.00, Making cemented grounds for location $4,800.00, Implementing plan of operations
$1,080.0, Constructing Boundaries at the site $14,400.00, Raising Walls and forming shelter
$12,000.00, Detail Analysis of tanker specification $2,000.00, Bottom tank development
$7,200.00, Installation of tank plates $2,880.00, Installation of Shell Plates $2,880.00, Drainage
works at the site $6,000.00, Coating the tanks with C3 $1,760.00, Adding Tinkles to the Tankers
$1,760.00, Building Platforms $4,800.00, Making Pipeline connection $1,920.00, Connecting
the tankers platform by passage way $8,400.00, Fire safety installation $1,920.00, Functional
Testing for tanker operations $1,320.00, Approved by Managers $640.00, Approval by
Government $0.00, Tankers are functional for general use $480.00, and Project Closed $0.00.
According to O'Halloran (2013), the analysis of the outflow of the project with that of the benefit
values would provide the evaluation of the project in terms of the value.
4. Project Closure for Development of Oil Tanker Project
The final project closure is given below,
Check (x) if
completed
Checklist Items
1. Following documents are made,
 Statement of Work
 Change Management Plan
 Budget and Cost
 Project Plan
 Other
2. Functional Requirements have been met successfully

11PROJECT MANAGEMENT
3. Construction Requirements have been met successfully
4. Safety and Controls certification completed
5. Support Government agreements
6. Maintenance Plans established
7. Licensing Agreements completed
8. Account Authorization and Management Procedures completed
9. Deployment Plan implemented successfully
10. Maintenance team has access to artifacts to help them maintain
the system
11. Customer formal acceptance
Conclusion
It can be concluded from the assignment that the construction projects like Oil Tanker
Development for Large Multinational Oil Company in Australia had required the use of the
concepts of project management and applied it. The project management had held an integral
part for the analysis of the operations of the project and integration of the effective processes.
The analysis of the implementation was evolved with the development of the project operations.
The Project Implementation Plan Structure consisted of five phases namely project initiation,
project planning, project implementation, project monitoring, and project closure. The project
had required the Top-Down Management Structure for the development of the project
implementation and carrying out of the activities of the project. The project consisted of the
Surveyors, Project Manager, Planner, Contractor, Workers, Technicians, and Supervisors. The
project management plan for the project of development of Oil Tanker for Large Multinational
Oil Company in Australia comprised of developing the Project Schedule Plan, Budget Estimate

12PROJECT MANAGEMENT
Plan, Resource Management Plan, and Scope and Change Management Plan. The project’s
performance evaluation was done by the help of using analysis of the payback and net economic
value of the project. The final project closure was given by a project checklist.

13PROJECT MANAGEMENT
References
Baratta, A. 2006. The triple constraint, A triple illusions.University of Washington. Seattle.
<http://depts.washington.edu/pmgroup/GlobalCongress2006/PDS01_wp.pdf>. viewed 22
September 2016.
ExecutiveBrief. 2008. Which life cycle is best for your project?. Project Smart.
<https://www.projectsmart.co.uk/which-life-cycle-is-best-for-your-project.php> viewed 22
September 2016.
Flyvbjerg, B. 2006. From Nobel Prize to project management: Getting risks right. Project
Management Journal, 37(3): 5-15.
Goetz, R. 2010. Defining project goals and objectives. Project Smart.
<https://www.projectsmart.co.uk/defining-project-goals-and-objectives.php>. viewed 6
September 2016.
Haughey, D. 2011. Understanding the project management triple constraint. Project Smart.
<https://www.projectsmart.co.uk/understanding-the-project-management-triple-constraint.php>.
viewed 14 September 2016.
Herroelen, W., Leus, R. and Demeulemeester, E. 2002. Critical chain project scheduling: Do not
oversimplify. Project Management Journal.33(4): 48–60.
Jutte, B. 2016. 10 golden rules of project risk management. Project Smart.
<https://www.projectsmart.co.uk/10-golden-rules-of-project-risk-management.php>. viewed 18
November 2016.

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Kerzner, H. R. 2013. Project management: A systems approach to planning, scheduling and
controlling (11th ed.). New Jersey: Wiley
Kloppenborg, T. J. 2014. Contemporary project management (3rd ed.). Stamford, CT: Cengage
Learning US.
LeMay, R. 2011. Vic government IT in flames: $1.4 billion over budget, all projects late or
failed. Delimiter Just Australia. Just technology.<https://delimiter.com.au/2011/11/23/vic-
government-it-in-flames-1-4-billion-over-budget-all-projects-late-or-failed/>. viewed 8
September 2016.
Lovallo, D. and Kahneman, D. 2003. Delusions of success: How optimism undermines
executives’ decisions. Harvard Business Review, 81(7): 56-63.
Mind Tools. 2016. Project schedule development: Planning the timing and sequence of project
activities. UK<https://www.mindtools.com/pages/article/newPPM_71.htm>. viewed 18
November 2016.
O'Halloran, C. 2013. How To Apply Qualitative Risk Analysis To Reduce Project Risk, Striking
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19 November 2016
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<http://www.projectmanagementguru.com/scheduleplan.html>. viewed 7 November 2016
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<http://www.pmi.org/-/media/pmi/documents/public/pdf/certifications/talent-triangle-flyer.pdf>.
viewed 24 November 2016.

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Project Management Institute. 2013. A guide to the project management body of knowledge
(PMBOK Guide) (5th ed.). Pennsylvania: Project Management Institute.
Van de Vonder, S., Demeulemeester, E. and Herroelen, W. 2008. Proactive heuristic procedures
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