Project Management Report: Future Frigates (War Ships) Analysis

This project management report provides a comprehensive analysis of the Future Frigates (War Ships) project. The report is divided into three parts: Part A provides an overview of the project, including the budget, social and economic rationale, key information, scope, estimated costs, time requirements, construction phases, and environmental considerations. Part B focuses on risk analysis, including qualitative and quantitative assessments, and presents a risk matrix. Part C outlines a risk mitigation plan, evaluating identified risks, prioritizing them, and detailing mitigation strategies. The analysis considers factors such as schedule slippage, design flaws, inexperienced workers, and resource management, offering insights into potential challenges and effective solutions. The report also includes a detailed bibliography of the sources consulted.

Running head: PROJECT MANAGEMENT
Future Frigates (War Ships)
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Part A: Project Overview.................................................................................................................2
A.1 Overall budget for the project...............................................................................................2
A2: Social and economic rationale..............................................................................................2
A3: Key information about the project........................................................................................2
A4: Scope and size.......................................................................................................................3
A5. Budget and estimated cost....................................................................................................4
A6. Time required........................................................................................................................5
A7. Construction elements or phases...........................................................................................6
A8. Environmental costs or benefits............................................................................................7
Part B: Risk analysis........................................................................................................................8
B1. Risk analysis.........................................................................................................................8
B2. Risk matrix..........................................................................................................................11
Part C: Risk mitigation plan..........................................................................................................13
Mitigation strategy.....................................................................................................................15
Bibliography..................................................................................................................................17

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Part A: Project Overview
A.1 Overall budget for the project
It is found that in order to undertake the project of “Future Frigate”, the government has
approved budget of over $6 billion so that the design activity will incorporate the various needs
of the Australians and for conducting prototyping of ship blocks.
A2: Social and economic rationale
Benefits and drawbacks
The Future Frigate will be helpful in providing Australian defence force with highest
levels of submarines capability and it will further help in setting in place proper naval
shipbuilding. It is considered to be advantageous for the Australian Defence force as they can
detect, track as well as destroy the submarines of enemy (Slocombe 2017). In context to
economic field, it is found that due to construction of Future Frigates, a greater number of jobs
will be generated which will become a significant source of strength for the economy of
Australia (Defence.gov.au 2020). Moreover, the companies that will provide input for the
construction will also generate huge amount of revenue which will further improve the
Australia’s revenue.
On the other hand, it is found that the Government of Australia provides above $6 billion
for proper design and construction of Future Frigates and expenditure of such a huge amount on
a project at once can create some economic challenges for the country and this is considered as a
drawback (Schmidt 2017).

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A3: Key information about the project
They various key information that is mainly related with the Future Frigate project are
reflected in the below table:
Criteria Explanation
Budget $6 billion
Time period 2015-2020
Dimension of Future frigates Length -149.9 metres Maximum beam - 20.8
metres
Displacement Full Load 8,800 tonnes
Weapons MU90 torpedos, Mk45 Mod4 5” gun, SM2 &
ESSM missiles and more
Top speed 27+ knots
Accommodation 180 crew including embarked flight with
accommodation as well as services up to 208.
A4: Scope and size
The project scope includes:
 Government first pass approval
 RFT released
 Combat Management System selected
 Government Second Pass Approval
 Construction
 Prototyping of ship blocks in the new shipyard
 Combination of Aegis CMS, CEAFAR and the Standard

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 Missile II and Evolved Sea Sparrow
 Operations and sustainment
A5. Budget and estimated cost
The estimated cost for designing as well as constructing Future frigates will be around $
6 billion which is showcased with the help of the below figure:
Figure 1: Budget

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(Source: Created by Author)
A6. Time required
The future Frigates commencement starts on 2015 and it is found that the entire work
including design, prototyping, construction as well as project review will be completed by 2020.
The entire schedule is reflected below in the form of Gantt chart.

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Figure 2: Time needed
(Source: Created by Author)
A7. Construction elements or phases
The various construction elements or activities that are mainly associated with Future
Frigates construction is mainly reflected in the table below:
Activities Duration Start Finish
Government first pass
approval
240 days Fri 01-04-16 Thu 02-03-17
RFT released 140 days Fri 03-03-17 Thu 14-09-17
Combat Management System
selected
200 days Fri 15-09-17 Thu 21-06-18
Government Second Pass
Approval
400 days Fri 22-06-18 Thu 02-01-20
Prototyping of ship blocks
in the new shipyard
150 days Fri 03-01-20 Thu 30-07-20
Combination of Aegis
CMS, CEAFAR and the
Standard
50 days Fri 31-07-20 Thu 08-10-20
Missile II and Evolved Sea
Sparrow
60 days Fri 09-10-20 Thu 31-12-20
Operations and sustainment 40 days Fri 01-01-21 Thu 25-02-21

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A8. Environmental costs or benefits
Funding mechanism
The entire project of Future Frigates construction was funded by the government. In
addition to this, it is analyzed that due to future Frigates, a number of job opportunities open
which assists in raising money and improving the economic condition of Australia. In addition to
this, the inputs that are delivered to Future Frigates also makes money and it is considered as a
source of money making from the project (Defence.gov.au 2020).
Key stakeholders
The key stakeholders that are associated with the Future Frigates project are listed below:
 Project manager
 Project planner
 Financial manager
 HR manager
 Contractor
 Construction manager
 Worker
 Civil engineers

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Part B: Risk analysis
B1. Risk analysis
Qualitative risk analysis
In the below table, qualitative risk analysis method is used as per PMBOK, in order to
determine the risks that are associated with the Future Frigates project.
Risk Id Risk Description Impact (1-5) Probability (1-5)
R1 Schedule
slippage
During the design,
prototyping as well
as construction of
Future Frigates, if
the project
managers are
unable to track the
schedule the
chances of schedule
slippage is quite
high that further
causes delay in the
progress of the
project (Kerzner
2017).
5 4
R2 Improper design If the design of the 5 5

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of the project Future Frigate is not
appropriate then it
would be quite
difficult for the
BAE systems for
undertaking
construction with
the Global combat
Ship-Australia
design (Marchewka
2016).
R3 Inexperienced
workers
The workers who
are working for
Future Frigates
construction, if not
experienced then
they will unable to
handle such types
of construction
properly and the
chances of delay
within the project
rises (Almeida,
4 3

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Hankins and
Williams 2017).
Quantitative risk analysis
It is found that quantitative risk analysis method is used as per PMBOK, in order to
determine the risks that are associated with the Future Frigates project.
Id Risk/
opportunity
Description Probability Cost impact Expected
monetary
value
1 Improper use
of resources
If the resources that is
mainly associated
with the future Frigate
project is not
effectively used
during project
progress then more
resources will be
required that will
further enhance the
total cost of the
project (Martens and
Carvalho 2017).
5% $2,000,000 $100,000
2 Scope creep Due to scope creep, a
number of new
10% $3,000,000 300,000

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facilities will be
added within the
future Frigates that is
considered to be
advantageous
(Slocombe 2017).
B2. Risk matrix
Risk matrix for qualitative analysis
Consequences
Negligible
1
Minor
2
Moderate
3
Major
4
Catastrophic
5
Likelihood
Almost
certain
5
Improper
design of the
project
Likely
4
Schedule
slippage
Possible
3
Inexperienced
workers
Unlikely
2
Rare

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1
Risk matrix for quantitative risk analysis
Consequences
Negligible
0
Minor
<$100,000
Moderate
$100,000-
1,000,000
Major
(1,000,000-
100,000,000)
Catastrophic
(more than
$100,000,000)
Likelihood
Almost
certain
>50%
Likely
10%-
50%
Improper
use of
resources
Possible
1%-10%
Scope
creep
Unlikely
0.1%-1%
Rare
0-0.1%

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Part C: Risk mitigation plan
Risk evaluation
The risk evaluation tables priorities the risks and explain the reason why the risk is
addressed.
Risk/opportunity Priority Reason
Improper use of resources 4 Improper use of resources
can enhance the total budget
of the project and therefore
the budget shortfall can occur
further rising to a number of
financial challenges during
the construction of Future
Frigates (Aven 2016). The
priority of this risk is 4 assist
creates moderate
consequences on the project.
Scope creep 5 This risk is positive for
Future Frigates project and
therefore this risk does not
need to be addressed (Cole et
al. 2017).
Improper design of the 2 If the design of the project is

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project not properly done then would
be quite difficult for the BAE
systems for undertaking
construction with the Global
combat Ship-Australia which
further can cause obstruction
as well as financial issues
(Defence.gov.au. 2020). This
risk is prioritized as 2 as its
impact is major on the project
(Hopkin 2018).
Schedule slippage 1 It is found that the problem
of schedule slippage can
further cause delay in the
project that further can
increase the total budget of
the project which further can
cause a number of economic
challenges (Kerzner 2017).
This risk is marked as 1 in the
priority list as its impact is
catastrophic.
Inexperienced workers 3 If the workers are not skilled

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and experienced then they are
unable to handle the work of
the project effectively and as
a result delay and financial
issues can occur (Marchewka
2016). The priority of this
risk is 3 as it creates medium
consequences on the
undertaken project.
Mitigation strategy
The table that is provided below generally reflects on the ways in which risks will be
managed as well as on the management strategy so that the risks that occur during the
construction of Future Frigates project can be resolved successfully.
Risk/opportunity Ways for managing risk Mitigation strategy
Improper use of resources Mitigate The project manager from
the initiation phase must take
care that all the resources are
used in a proper way and as
per specification so that not
extra amount of money is
spend is needed (Kerzner
2017).
Scope creep Accept The problem of scope creep

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must be accepted as it will be
bringing positive impact for
the project. It is found that
due to this risk, a number of
new facilities will be added
within the future Frigates that
is found to be beneficial.
Improper design of the
project
Avoid The design must be done by
the experienced stakeholders
so that the BEM can
undertake construction with
the Global combat Ship-
Australia quite successfully
(Hopkin 2018).
Schedule slippage Avoid The problem of schedule
slippage must be avoided by
tracking the progress report
as well as project status from
time to time for keeping the
project on track (Aven 2016).
If slippage occurs then proper
actions are taken so that such
types of challenges can be

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avoided quite effectively
(Martens and Carvalho 2017).

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Bibliography
Almeida, H., Hankins, K.W. and Williams, R., 2017. Risk management with supply
contracts. The Review of Financial Studies, 30(12), pp.4179-4215.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.
Bergmann, K., 2019. Future frigates combat system-Have the rules changed?. Asia-Pacific
Defence Reporter (2002), 45(4), p.10.
Cole, S., Giné, X. and Vickery, J., 2017. How does risk management influence production
decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6), pp.1935-
1970.
Defence.gov.au. 2020. Future Frigate: Equipping Defence : Department Of Defence. [online]
Available at: <https://www.defence.gov.au/CASG/EquippingDefence/SEA%205000%20Phase
%201.asp> [Accessed 18 April 2020].
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring
and monitoring project performance. John Wiley & Sons.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Marchewka, J.T., 2016. Information technology project management: Providing measurable
organizational value. John Wiley & Sons.

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Martens, M.L. and Carvalho, M.M., 2017. Key factors of sustainability in project management
context: A survey exploring the project managers' perspective. International Journal of Project
Management, 35(6), pp.1084-1102.
Schmidt, K.E., 2017. Augmented Reality Navigation: The use of Augmented Reality on the
bridge to aid navy personnel with safe navigation on future frigates.
Slocombe, G., 2017. SEA 5000 future frigates: Will the shipyard and workforce be ready by
2020?. Asia-Pacific Defence Reporter (2002), 43(8), p.68.