Project Management Assignment: Petroleum Tank Renovation Plan

This project management assignment presents a detailed plan for the renovation and management of multi-storage tank facilities for petroleum. The project aims to develop a comprehensive implementation plan, focusing on key objectives such as scheduling activities, mitigating environmental risks, and renovating existing tanks. The assignment covers various aspects including the implementation phase, inspection of tanks, roles and responsibilities of different stakeholders, and a detailed implementation plan. It also includes an organizational chart, portfolio management strategies, a work breakdown structure, and cost, time, and quality management plans. The assignment further explores methodologies for project evaluation, including the use of Gantt charts, and addresses project closure procedures. The core of the project revolves around ensuring the efficient and safe storage of petroleum, addressing potential environmental hazards, and optimizing resource allocation. The assignment provides a structured approach to managing the project, ensuring quality control, and achieving project objectives effectively.

Assignment on
Project management 2017

Contents
Introduction:..........................................................................................................................................2
Project objectives:.................................................................................................................................2
Implementation phase:...........................................................................................................................2
Inspection of the tanks:......................................................................................................................2
Requirement:.....................................................................................................................................3
Roles and responsibilities:.................................................................................................................3
Implementation plan:.........................................................................................................................4
Organization chart:............................................................................................................................5
Portfolio management for the activities:................................................................................................6
Work Breakdown structure:...................................................................................................................6
Cost management Plan..........................................................................................................................7
Time management plan:........................................................................................................................7
Quality management plan:.....................................................................................................................9
Methodologies used for project evaluation:.........................................................................................10
Gantt chart:..........................................................................................................................................12
Project closure:....................................................................................................................................12
References...........................................................................................................................................13
1

Introduction:
The organization wants to develop a project plan for management of multi-storage tank
facilities for petroleum. The renewable schemes are needed to restrict the wastage of petrol.
The renovation is required in the infrastructure of the tank to handle storage. The purpose of
this project is to design an implementation plan which identifies the successful
implementation of the project requirement (Kvimis, 2016). The project also focuses on the
development of the management plan to make a study on the four major areas of the proposed
project which are classified as time, resources, cost, and quality (Hussain, 2013). The
evaluation of the tools and methods used helps in determining the performance of the project.
Project objectives:
The objectives of this project are to focus on the following:
 Scheduling of activities to make a balance of storage
 Identifying and developing mitigation plan for Environmental risks
 Renovation of the tank 1, tank 2, and tank 3.
 Automation in the required activities
 Reducing the risks associated with the environment.
 Minimize the efforts of labour and technical staff
Implementation phase:
From the research case study, we analysed there are three tanks of different storage capacity.
The tank 1 has the storage capacity of unleaded petrol of 1 million litres. The tank 2 has the
storage capacity of unleaded petrol of 3 million litres. The tank 3 has the storage capacity of
unleaded petrol of 7 million litres. The renovation of the tanks is required for leveraging the
supply valve which can handle inflammable fumes. The changes are required in the current
infrastructure of the tank scenario to resolves the issues related with environment and the
storage of the fuel oil.
Inspection of the tanks:
The inspection of the tanks gathers the following information related to the tanks:
Tank 1 Tank 2 Tank 3
The tank 1 has the storage The tank 2 has the storage The tank 3 has the storage
2

capacity of unleaded petrol
of 1 million litres.
capacity of unleaded petrol
of 3 million litres.
capacity of unleaded petrol
of 7 million litres.
There are four steel patches
of size 2 m.Sq.
There are 7 steel patches of
size 3 m.Sq.
There are Six steel patches of
size 1.5 m.Sq.
There are 4 steel anchors on
the roof of the tank
There are 4 steel anchors on
the roof of the tank
There are 4 steel anchors on
the roof of the tank
Painting and cleaning from
outside
Painting and cleaning from
outside
Painting and cleaning from
outside
Main supply valve of the
tank should be replaced
Requirement:
 Painting and cleaning from outside
 Main supply valve of the tank should be replaced
 Testing of the leakages Strategically maintained the spill kits for the tank
 Upgrading of the three tanks
 Managing integration between the three tanks.
 Closing of the bypass valves
 Management of the environmental risks to reduce the extra expenditure.
 Coordination between vendors and supplier
Roles and responsibilities:
The subcontractor department is responsible for identifying the ratio between demand and
supply of the material (Passenheim, 2011). The master agreement should be prepared for
facilitating the purchase on demand. The equipment and materials are associated with the
expedite delivery process. The face to face meetings should be organized between the
contractors and sub-contractors. The statement of work should be discussed between the
participating units. The quality of the past storage capacity should be analysed and reviewed
(Project service centre, 2015). The financial resources should be estimated and analysed to
associated the cost with every activity. The on-time delivery of the raw material helps in the
successful completion of handling fuel oil in the three tanks.
The responsibility of the quality control department is to deploy a quality control program for
analysing the project activities. The testing should be performed to check the quality of the
3

tank to handle the petrol efficiently without any leakages (Raufon, 2012). The in-house
activity should be performed for ensuring the quality of the services according to the
compliance plan. The table of below list some of personal roles and responsibilities clearly.
Name Role Responsibilities
Robert Anderson Project manager He is responsible for
approving the construction
design.
Ani Humes Project engineer
R. Donald Site manager
L. Lionel Field Superintendent
David Thomsons Project control manager
Robert brown Project director
D. Daisy Construction designer
F. Hussain Construction engineer
Implementation plan:
The implementation of the renovation plan for the three tanks to handle the storage of the
petrol efficiently without any leakages consist of following steps:
 The specification of the case study should be studied carefully to define the features
of the quality work.
 The drawings prepared by the contractor should be reviewed according to the
requirement specification plan (Roberts, 2008).
 The verification and validation of the proposal should be approved from the project
manager and director of the project.
 The testing plan should be reviewed periodically to check the quality of the proposed
construction plan.
 The preliminary work should be completed according to the construction design.
 The equipment and the material required should be provided according to the
requirement specified in the construction design.
 The balance should be maintained between the supply and demand to manage the
work flow of the activities.
4

 The safety plans should be prepared to reduce the chance of risks associated with the
project (Zhang, 2016)
 The environment risks should be proactively reduced to minimize the cost associated
with the handling of these risks (Srinivasan, 2009)).
 The requirement of the quality workmanship should be analysed before hand.
 The analysis of the hazard helps in reviewing of the safety plan.

Organization chart:
5
Project Director
Project manager
Team for project
management
Team required for resource
management
Team required for risks
management
1. Technical manager,
2. Personnel manager
3. Communication
manager
4. Project administrator
5. Mechanical engineer
6. Electrical Engineer
7. Civil engineer
8. Safety manager
9. Draftsman
10. Contractors
1. Finance manager
2. Account manager
3. Purchase manager
4. Logistic manager
5. IT manager
6. System manager
7. Metrics analyst
8. Contract manager
1. Configuration
manager
2. Scheduling manager
3. Estimator
4. Vendor
5. Customer
6. Insurance consultant

Portfolio management for the activities:
Work Breakdown structure:
Work Breakdown Structure
Preconstruction activities Technical Specification requirement
Solicitation with the contractor
Meeting organized before pre-construction
Permits and licensing for acquisition
Agreement of construction with vendors,
sub-contractors, and suppliers
Survey of the land
Testing of the soil
Aerial photography
Preparation of the construction activity Clearance of the site
Excavation of the land
Filling of the land
Levelling of the land
Removal of the ground water
Acquisition of the resources Tendering
Selection of the vendor
Ordering of the raw material
Testing of the material
6

Payments
Hiring of required construction equipment
Construction activity Excavation
Piling
Foundation of the tank
Welding of the plate
Handover and testing procedures Testing of the welding joints
Tanks hydro test
Handover the project for operation
Cost management Plan
The association of the cost with different activities laid down for the completion of the
project are measuring the value of money for the developed system.
Particular Unit Cost per cu.m.
Soil Excavation Cu.m. 95.00
Rocks excavation Cu.m. 145.00
Cement motor with the
association of brick work
Cu.m. 1450.00
Reinforcing of the steel bar,
cement concrete, and
shuttering
Cu.m. 4800.00
Piping Metre 470.00
Borehole in soil Metre 180
Time management plan:
Activities Duration (Days) Resources used
Technical Specification
requirement
15 Project manager
Solicitation with the contractor 1 Contractor engineer
Meeting organized before pre-
construction
1 Contract designer
Permits and licensing for 7 Project manager
7

acquisition
Agreement of construction with
vendors, sub-contractors, and
suppliers
3 Site engineer
Survey of the land 7 Site engineer
Testing of the soil 7 Project controller
Aerial photography 2 Project controller
Clearance of the site 7 Project manager
Excavation of the land 15 Construction engineer
Filling of the land 5 Construction engineer
Levelling of the land 5 Site engineer
Removal of the ground water 7 Site engineer
Tendering 15 Contractor
Selection of the vendor 7 Project manager
Ordering of the raw material 7 Project controller
Testing of the material 2 Project controller
Payments 1 Project manager
Hiring of required construction
equipment
5 Project manager
Excavation 10 Project site engineer
Piling 15 Site engineer
Foundation of the tank 15 Construction engineer
Welding of the plate 7 Construction engineer
Testing of the welding joints 7 Construction engineer
Tanks hydro test 3 Construction engineer
Handover the project for
operation
2 Construction engineer
Quality management plan:
The quality of the developed tanks should be checked to analyse the capacity and the
durability to hold the fuel oil without any leakages (Baars, 2015). The quality standards
should be determined to matchup with it. The responsibility of the quality control department
8

is to deploy a quality control program for analysing the project activities. The testing should
be performed to check the quality of the tank to handle the petrol efficiently without any
leakages (Hess, 2011). The in-house activity should be performed for ensuring the quality of
the services according to the compliance plan. It helps in overcoming the constraints and the
risks associated with the development process and the outcome. The review should be
periodically arranged for determining the correctness of the decision taken. The
malfunctioning should be avoided with the equipment replacement. The integrity of the
samples should be focused to get required output.
Phases Description
Site location It involves the sampling method required to
involves potential users to get the clear
perspective of the scenario
Installation of the equipment The analysis of the environment helps in
analysing the effects of it. The fuel leakages
should be checked to analyse the newer
version of the tanks.
Sampling process Quality assurance and quality control
procedures are used for analysing the
environment related policies. The capacity of
the tank should be checked
Durability The durability of the paints and welding’s
joints should be determined.
Consideration to the safety procedures The analysis should be done to check the
quality of the safety procedures used.
Accuracy The agreement and the delivery of the
material should be periodically checked and
determined (Das, 2014)
Precision The standard deviation should be measured
to check the difference in the quality with
that of mentioned agreement.
Completeness The availability of the resources and
equipment should be checked for the success
of the project completion on time.
9

Representatives The accuracy and precision are the two major
components for checking the efficiency of
the tanks with the environmental hazards.
The variation in the parameters should be
pleasured proactively to reduce the chance of
risks.
Comparability The qualitative checking should be
periodically performed by analysing the
sampling procedures to get the required
output.
Vendor agreement The storage quality plan should be submitted
by the vendors periodically.
Methodologies used for project evaluation:
The evaluation of the project can be done with the following approaches to check that the
completion of the project is according to the goal desired.
 Methodologies based on experiment: It is used for analysing the quality of the tanks
which is required for filling the tank without any leakages which can be hazardous for
the environment. It develops the framework of policies and facts which are used for
matching the effects of renovation on the environment. The analysis of the risks
associated helps in determining the quality of the renovation.
 Preparation of the risks matrix:
Categorise of risks Impact Responsible person
Anticipation of the operating
expenses raises
High Construction designer
Policies and standards should
be analysed for determining
the environmental risks
High Project director
Impact of cost and
scheduling
Medium Project director and project
contractor
Risks associated with
environment
High Construction designer.
10

 Economic analysis: The estimation of the cost with the project activities helps in
determining the cost benefit analysis. It helps in analysing the renovation of the tanks
construction (Amarnath, 2014). The impact on the potential environment helps in
reducing the cost incurred previously on the environment settlements. The association
of the cost with different activities laid down for the completion of the project are
measuring the value of money for the developed system. The benefits of the resources
used should be clearly defined.
 Quality analysis: Quality assurance and quality control procedures are used for
analysing the environment related policies. The capacity of the tank should be
checked periodically. The in-house activity should be performed for ensuring the
quality of the services according to the compliance plan. It helps in overcoming the
constraints and the risks associated with the development process and the outcome.
 Pragmatic approaches: It is used for simplifying the processes by managing the
resources on demand. The theoretical model should be developed to check the
efficiency of renovation in the tank.
 Qualitative and Quantitative analysis: These approaches are based on testing
hypothesis. For analysing the objectivity, precision, accuracy, standardization, and
reliability of the induced system for handling the fuel oil in the tank (Arizona, 2016).
The data collected from multiple resources to analyse the flaws of the system clearly.
 The evaluation of the project should be done on analysing the quality management
table, time management table, resource analysis, and cost analysis table (Ahmad,
2015). The facts of the cost, time, resources, and quality helps in defining the benefits
of the renovation of the tanks. The review of the previous policies should be
undertaken for comparing the values with the renovated system to develop the report
of cost benefit analysis.
 The financial resources should be estimated and analysed to associated the cost with
every activity. The on-time delivery of the raw material helps in the successful
completion of handling fuel oil in the three tanks.
11

Gantt chart:
Project closure:
From the research on case study, it helps in identifying the flaws of the existing system which
helps in taking the step forward for the renovation of the tanks for better handling of the fuel
oil. The closure of the project involves the following checklist to be performed:
 The pits should be created to handle the spills from the tanks.
 The efficiency of the tanks to be checked to handle the fuel oil by filling all the three
tanks according to their capacity. The first tank should be filled for 4 to 6 hours. The
second tank should be filled for 8 to 10 hours. The first tank should be filled for 18 to
20 hours.
 The permanent liners should be used for covering the tanks for storage.
 Scheduling of activities to make a balance of storage
 Automation in the required activities
 Reducing the risks associated with the environment.
 Minimize the efforts of labour and technical staff
 The shut-off valves should be changed to overcome the problem of leakages.
 The shut off valves should be used for handling the differential pressure.
 The coatings and paintings used on tank 1 and tank 2 should corrosion resistance
12

 The coatings and paintings used on tank 1 and tank 2 should be cathode protected.
 The potential impact on the environment should be periodically checked.
 The evaluation of the project should be done on analysing the quality management
table, time management table, resource analysis, and cost analysis table.
 The quality of the past storage capacity should be analysed and reviewed
 Development of cost analysis benefit table
 Analysis of the risk factors and mitigation plans used.
References
Ahmad, A. (2015). Project management office. Retrieved from
https://www.onepetro.org/conference-paper/SPE-177580-MS
Amarnath, M. (2014). Resource planning system for petrol station. Retrieved from
https://www.ijarcce.com/upload/2014/february/IJARCCE2E__a_vidhi_Resource.pdf
Arizona, C. (2016). Project management methodology guidelines. Retrieved from
https://www.chandleraz.gov/content/pm000pmmethodologygde.pdf
Baars, W. (2015). Project management handbook. Retrieved from
https://www.projectmanagement-training.net/wordpress/wp-content/uploads/
2015/11/book_project_management.pdf
Das, A. (2014). Construction of the marine tank farm. Retrieved from
https://www.slideshare.net/abhiktushardas/project-management-report-for-tank-farm
Hess, J. (2011). Petroleum and health care: Evaluating and managing health care’s
vulnerability to petroleum supply shifts. Retrieved from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3154246/
Hussain, E. (2013). Operations integrity management system. Retrieved from
http://corporate.exxonmobil.com/en/company/about-us/safety-and-health/operations-
integrity-management-system
Kvimis, K. (2016). Project management. Retrieved from
http://www.kvimis.co.in/sites/kvimis.co.in/files/ebook_attachments/Harvey
%20Maylor%20Project%20Management,3rd_0.pdf
13