Business Case Report: Mernda Rail Extension Project Evaluation

This business case report examines the Mernda Rail Extension project, focusing on the development of an 8km dual rail line connecting South Morang to Mernda in Melbourne. It details the project's needs, objectives (including reducing travel time and constructing new stations), and critical success factors, such as integrating the new Mernda station with the town center and ensuring timely project completion within budget. The report analyzes two options, recommending the integration of the station with Mernda for optimal access to amenities. It defines the project scope, constraints, and scope management steps, including understanding the project's needs and identifying potential scope creep. The report also outlines project deliverables, KPIs, and a project management strategy, including risk and quality management plans. Appendices include a project schedule, cost plan, and risk register, providing a comprehensive overview of the project's planning and execution.

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TITLE
Student Name: ######## ########
Student Number: #######
Team/Group: #############
Course: [enter name of course enrolled]
Unit Coordinator/
Lecturer: Grant Axman-Friend ([e-mail])
Institution: Queensland University of Technology
Teaching Period: [enter semester and year]
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EXECUTIVE SUMMARY
The paper mainly reflects on the project “Mernda Rail extension project” in order to involve
within the development of a new 8km long dual line for linking the South Morang with the
city of Mernda in Melbourne. It is found that the project also included construction of number
of stations including Marymede, Hawkstowe as well as Mernda. It is found that the entire
report mainly reflects on the needs of the project, option analysis as well as on project scope
definition. The project also elaborates the timeline as well as project cost that are generally
required in order to finish the project on expected budget and time. Moreover, the paper also
discusses risk management plan as well as quality management plan for complete the entire
project within the expected time and budget.
Content
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Business Case
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EXECUTIVE SUMMARY........................................................................................................3
1 PROJECT NEED...............................................................................................................6
1.1 PROJECT NEED.........................................................................................................6
1.2 PROJECT OBJECTIVES............................................................................................6
1.3 CRITICAL SUCCESS FACTORS (CSF’S)...............................................................6
1.4 ORGANISATIONAL CHANGE................................................................................6
2.1 OPTIONS CONSIDERED..........................................................................................7
2.2 OPTIONS EVALUATION CRITERIA......................................................................7
2.3 OPTIONS EVALUATION.........................................................................................7
2.4 RECOMMENDED OPTION......................................................................................8
3.1 SCOPE DESCRIPTION..............................................................................................8
3.2 CONSTRAINTS AND DEPENDENCIES.................................................................8
3.3 SCOPE MANAGEMENT...........................................................................................8
3.4 PROJECT DELIVERABLES.....................................................................................9
3.5 PROJECT KPI’S.........................................................................................................9
4.1 PROJECT MANAGEMENT STRATEGY..............................................................10
4.1.1 PROJECT STRUCTURE...................................................................................10
4.1.2 PROJECT GOVERNANCE FRAMEWORK...................................................11
4.1.3 PROJECT REPORTING STRUCTURE...........................................................11
4.2 PROCUREMENT STRATEGY...............................................................................11
4.3 COMMUNICATION AND STAKEHOLDER MANAGEMENT STRATEGY.....11
5.1 TIMING / PROJECT READINESS..........................................................................13
5.2 BUDGET/COST ANALYSIS AND FUNDING STRATEGY................................14
5.3 RISK ANALYSIS AND MANAGEMENT STRATEGY........................................15
5.4 PROJECT QUALITY MANAGEMENT STRATEGY............................................16
5.5 PROJECT COMPLETION STRATEGY..................................................................16
5.6 BENEFITS REALISATION PLAN..........................................................................16
6 REFERENCES.................................................................................................................17
APPENDIX A..........................................................................................................................19
A.1 PROJECT SCHEDULE............................................................................................19
A.2 PROJECT COST PLAN............................................................................................20
A.3 PROJECT RISK REGISTER....................................................................................21
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1 PROJECT NEED
1.1 PROJECT NEED
The key requirements for this project are generally elaborated below:
 The project “Mernda Rail extension project” was needed in order to develop an 8km
long dual line for linking the present South Morang line with Mernda in Melbourne,
Australia.
 In addition to this, it is found that the development of this project is quite advnatgeous
as it generally helps in minimizing the time of the journey by providing proper
services between the stations of Morang, Mernda and Doreen.
1.2 PROJECT OBJECTIVES
The objectives of the entire project are listed below:
 To develop a new 8km line for linking the line of South Morang with the city of
Mernda in Melbourne.
 To reduce the time that is needed to travel by providing direct services between
stations of Mernda, Morang and Doreen
 To build new rail bridges as well as underpasses with no level crossing as well as train
stabling
1.3 CRITICAL SUCCESS FACTORS (CSF’S)
The critical success factors of the project are elaborated below:
 Integration of bridge with Mernda Town center: It is found that the integration
of the new station at Mernda is generally integrated with the Mernda Town centre
which will generally helpful in providing proper as well as easy access to the
shopping, restaurant as well as fitness and bus services.
 Proper extension of the Mernda rail: It is very much necessary to extend the
Mernda rail properly so that the transport hub with proper interchange of bus
services are generally developed to the station of Mernda.
 Completion of project within the expected time and budget: It is very much
necessary to estimate the time and budget of the project quite properly so that there
will be no extension of time and budget.
1.4 ORGANISATIONAL CHANGE
The changes that are generally required within the entire project are elaborated below:
 It is necessary for the project team to set up appropriate risk management plan with
the purpose of analyze the challenges and risks which are mainly related with this
project.
 It is quite necessary to update proper opportunities so that the cost that is mainly
associated with the project can be minimized.
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 It is quite important to develop proper construction management plan for the project
with the purpose of diminish the impact of the project
 It is quite significant to use standard environmental controls as well as operating
practice for managing the impact of the project.
2 OPTIONS ANALYSIS
2.1 OPTIONS CONSIDERED
It is found that there are two options that are generally considered for the analysis and
the two options are generally listed below:
 Option 1: The Mernda railway extension should be integrated with the town of
Mernda
 Option 2: The platform of the Mernda station must help in offering clutter free space
that must be covered with the help of roof canopy.
2.2 OPTIONS EVALUATION CRITERIA
The evaluation criteria are generally elaborated in the table below:
Criteria Weightage
The delivery of the entire project should be
under $5 million
25%
The delivery of the entire project should be
done within the timeline that is expected
30%
The construction of the rail extension should
not extend the environment
25%
It is necessary to extend the rail of Mernda
properly in order to access other facilities of
the city of Mernda.
30%
The project must be successfully delivered
within the subject site
Mandatory
2.3 OPTIONS EVALUATION
The reasons of the selected options are generally evaluated below:
 Option 1: It is found that option is selected as if the new station that is developed is
integrated into the town center of Mernda for accessing shopping malls, restaurants,
entertainments as well as other facilities without wasting much time. Moreover, the
station will also helpful in offering parking facilities for the bikes that are more than
1,000 cars.
 Option 2: This option is generally selected so that proper transport hub including the
bus services can also be developed to the east of the station of Mernda. In addition to
this, it is found that this will also assists in building of pedestrian at the stations in
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order to allow the passengers so that they do not need to cross the busy bridge for
entering within the station.
2.4 RECOMMENDED OPTION
It is found that option 1 is mainly recommended as the integration of the station with the
city of Mernda will generally allow the people of that area or city to access the restaurants,
entertainment, hospitals as well as shopping malls quite easily without wasting much time.
Moreover, they can also get the facility of parking for the bikes that are more than 1,000 cars.
3 PROJECT DEFINITION
3.1 SCOPE DESCRIPTION
The scope of the project is listed below:
 Development of an 8km long line of rail in order to link South Morang with the city
of Mernda
 Construction of three different new stations within the area of Hawkstowe,
Marymede as well as Mernda.
 The project must be finished within the approved budget as well as time
 The project must provide the facility of minimizing the time as well as helpful in
providing direct services between Morang, Doreen as well as the stations of Mernda
 Integration of the new station with the Mernda city in order to provide proper
access of restaurants as well as other facilities to the people of that area.
3.2 CONSTRAINTS AND DEPENDENCIES
The constraints of the project are generally elaborated below:
 Scope: It is quite important to follow the project scope so that the Mernda rail
extension project can completed within the assumed budget and time by
accomplishing all the objectives of the project.
 Time: This is necessary to finish the entire project within the time that determined as
per the developed schedule in the planning phase. It is important to finish the project
within the expected time as extension of project time generally enhances the project
budget.
 Budget: It is essential to accomplish all the objectives of the project within the
approved budget in order to avoid financial challenges and for achieving success after
the project gets finished successfully.
3.3 SCOPE MANAGEMENT
The steps that are generally required for managing the scope of the project are
generally elaborated below:
Understanding the problem: It is very much essential to understand the project quite
efficiently therefore, the reasons of the problems can be identified quite effectively.
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Understanding the needs of the project: It is essential to understand the needs of the
project quite successfully therefore, the requirements of the project can be properly gathered.
Identifying the signs of the project creep: The signs of the project creep must be
understood in the initial stage so that the problems or challenges that are mainly associated
with the scope can be effectively avoided.
Account for the various changes that is done financially: The changes of the project
should not incur cost that is above the ore-determined amount so that the manager of the
project must be prepared for asking for increase the budget of the project. Moreover, if the
resources of the project are unavailable then it is identified that the project managers cannot
make this type of determination without taking the permission to increase the budget.
3.4 PROJECT DELIVERABLES
The deliverables of the entire project are generally elaborated below:
 Development of 8km long rail line that will generally link the present South Morang
line with the Mernda in Melbourne
 Construction of three different stations in areas including Marymede, Hawkstone as
well as Mernda
 Integration of the station with the Mernda Town centre for accessing shopping malls,
bus services as well as other facilities
 Reduction of time for giving direct services between the various stations that are
constructed.
3.5 PROJECT KPI’S
The KPI’s of the project are generally elaborated below:
Time spent: It is found that the time that is generally spent by the team members on
each of the project tasks should be effectively tracked.
Budget variance: It is quite responsible to track the actual budget that generally varies
from the projected budget in order to determine the KPI for measuring the baseline amount of
expenses.
Training: Proper method of training facility should be provided to the team members
so that they can be able to work effectively within the entire project.
Project sign off: This is generally required in order to track that whether each of the
activities of the project can be completed successfully.
4 PROJECT APPROACH
4.1 PROJECT MANAGEMENT STRATEGY
The project management strategies are elaborated below:
Adopting proper project management methodologies: It is quite essential to use
proper project methodology so that the rail extension can be effectively completed.
Setting clear expectation: It is important to set good as well as clear expectation of
the project so that the entire project can be completed within the expected budget and time.
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Selecting the right team as well as system: It is quite important to use right team
members within the entire project so that the entire work of the project can be finished quite
successfully.
Defining milestones: It is quite necessary to define the project milestones properly
throughout the lifecycle of the project in order to perform evaluation after each phase of the
project.
Managing risks of the project: It is quite necessary to manage the risks as well as
problems of the project quite effectively in order to finish the extension of the Mernda project
within the expected time and budget.
4.1.1 PROJECT STRUCTURE
The structure of the project is elaborated below:
Mernda Rail extension
project
Project initiation phase
Feasibility study of
project plan
Prepare business
case
Review of business
case
Appointment of
project government
team
Acquistion of land
Milestone 1:
Completion of project
development phase
Project Design Phase
Prepare a design
report
Designing the
extension rail
Detailed
engineering done
Infrastructure
provision
Milestone 2:
Completion of
project design
phase
Project Construction
Phase
Hire of project
contractors
Preparaing layout
for 8km-long dual
rail line
Developing
Mernda Rail
extension project
Integration of
Mernda Rail
extension project
with the town of
Mernda
Milestone 3:
Completion of project
construction phase
Project Testing Phase
Identify risk
Mitigate risk
Testing
Audit report
Milestone 4:
Completion of
project testing
phase
Project close out
Figure 1: Project Structure
(Source: Created by Author)
4.1.2 PROJECT GOVERNANCE FRAMEWORK
It is found that various managers are generally hired for the governance of the project:
Project manager: The manager of the project is mainly answerable for managing the
team of the project including functional project team as well as civil and transport team of the
project. Moreover, it can be explained that the project manager generally governs as well as
associates the advisors for finishing the project quite effectively.
Program director-Civil and transport: It is found that the program director of civil
and transport is mainly responsible of managing the success of the project in association with
the transport as well as civil delivery manager of the project.
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4.1.3 PROJECT REPORTING STRUCTURE
The reporting structure of the project is generally provided below:
Tester
Risk manager
Supplier
Business
Consultant
Team member
Sub-contractor
Contractor
Project planner
Project Manager
Project
Manager
M M M M M M -
Project
planner
- R
Contract
or
M M - R R
Sub-
contracto
r
- R
Team
member
- R
Business
Consulta
nt
- R
Supplier - R
Risk
manager
- R
Tester - R
4.2 PROCUREMENT STRATEGY
The procurement strategy that are generally utilized within the entire project are mainly
elaborated below:
 It is necessary for the project team to set up appropriate plan for risk management so
that the risks as well as challenges of the project can be managed appropriate. In
addition to this, it is quite necessary to develop proper opportunities for minimizing
the cost that is mainly associated with the project.
 Integration of the new station with the Mernda city in order to provide proper access
of restaurants as well as other facilities to the people of that area.
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 Construction of the underpasses with absence of proper level crossing as well as train
stabling yard that is mainly built on the entire project.
4.3 COMMUNICATION AND STAKEHOLDER MANAGEMENT STRATEGY
The communication plan for the project are provided below:
Audience Description Frequency Vehicle Responsible
Team members The project
manager
discusses about
the objectives
as well as goals
of the project
Once Email/face to
face
Project managers
Financial
planner
Discuses about
the budget that
is needed for
the project
Once Email/face to
face
Project manager
Team leader Discusses
about the risks
and challenges
of the project
Whenever
required
Email/face to
face
Team member
The stakeholder’s management strategy is provided in the below table:
Stakeholders Interest Influence Management
strategy
Project Manager High High Manage closely
Project planner High High Manage closely
Contractor High High Manage closely
Sub-contractor High High Manage closely
Team member Medium High Manage closely
Business Consultant Medium High Manage closely
Supplier Medium Medium Manage closely
Risk manager High High Manage closely
Tester High High Manage closely
5 BUDGET, PROGRAM AND RISK
5.1 TIMING / PROJECT READINESS
The expected timing of the project is provided in the table below:
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WBS Task Name Duration Start Finish
0 Mernda Rail extension project 352 days Wed 19-04-
17 Thu 23-08-18
1 Project initiation phase 57 days Wed 19-04-
17 Thu 06-07-17
1.1 Feasibility study of project plan 10 days Wed 19-04-
17 Tue 02-05-17
1.2 Prepare business case 12 days Wed 03-05-
17 Thu 18-05-17
1.3 Review of business case 13 days Fri 19-05-
17 Tue 06-06-17
1.4 Appointment of project government
team 10 days Wed 07-06-
17 Tue 20-06-17
1.5 Acquisition of land 12 days Wed 21-06-
17 Thu 06-07-17
1.6 Milestone 1: Completion of project
development phase 0 days Thu 06-07-
17 Thu 06-07-17
2 Project Design Phase 110 days Fri 07-07-
17 Thu 07-12-17
2.1 Prepare a design report 30 days Fri 07-07-
17 Thu 17-08-17
2.2 Designing the extension rail 25 days Fri 18-08-
17 Thu 21-09-17
2.3 Detailed engineering done 28 days Fri 22-09-
17 Tue 31-10-17
2.4 Infrastructure provision 27 days Wed 01-11-
17 Thu 07-12-17
2.5 Milestone 2: Completion of project
design phase 0 days Thu 07-12-
17 Thu 07-12-17
3 Project Construction Phase 109 days Fri 08-12-
17 Wed 09-05-18
3.1 Hire of project contractors 30 days Fri 08-12-
17 Thu 18-01-18
3.2 Preparing layout for 8km-long dual
rail line 24 days Fri 19-01-
18 Wed 21-02-18
3.3 Developing Mernda Rail extension
project 30 days Thu 22-02-
18 Wed 04-04-18
3.4 Integration of Mernda Rail extension
project with the town of Mernda 25 days Thu 05-04-
18 Wed 09-05-18
3.5 Milestone 3: Completion of project
construction phase 0 days Wed 09-05-
18 Wed 09-05-18
4 Project Testing Phase 76 days Thu 10-05-
18 Thu 23-08-18
4.1 Identify risk 20 days Thu 10-05-
18 Wed 06-06-18
4.2 Mitigate risk 18 days Thu 07-06-
18 Mon 02-07-18
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