Project Management: Fuel Tank Renovation Project Analysis and Report

This project management assignment analyzes a fuel tank renovation project in Western Australia, addressing the critical need to repair aging fuel storage tanks. The project's scope includes a detailed budget breakdown, utilizing activity-based budgeting, and outlines the assumptions made. A comprehensive project schedule is provided, estimating a four-month completion timeframe and employing a waterfall approach, along with a Gantt chart and work breakdown structure. The resource requirements are meticulously detailed, identifying workers, materials, and equipment, along with their associated costs and potential stress points, such as material and worker availability. The project emphasizes the importance of skilled workers and a contingency approach for resource estimation, ensuring alignment with business objectives and successful project implementation. The project also highlights the importance of project planning and schedule accuracy for budget accuracy.

Running head: PROJECT MANAGEMENT
Project Management
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Project Budget.................................................................................................................2
2. The Project Schedule.......................................................................................................4
3. Resource Requirements...................................................................................................7
References..........................................................................................................................12

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1. Project Budget
The project is undertaken in order to repair the fuel tanks of the storage capacity in
Western Australia. This is essential as 30% of the company’s unleaded petrol is bordering on
collapse due to the age and condition of the tanks. The Condition of the tanks is over 50 years
old with a complex and outdated design. Therefore renovation of the tanks is essential and the,
budget has been proposed for implementation of the project (Maravas & Pantouvakis, 2012).
The project budget is represented in the following table.
Task Name Cost
Renovation of the oil tanker storage $867,800.00
Project Starts $0.00
Requirement Analysis $1,920.00
Meeting with Client for discussion on repairing start
date $640.00
Knowing basic Requirements of the client in repairing
the tanks $1,280.00
Planning $4,800.00
Understanding the Technical Requirements and the
resource requirements $1,280.00
Budget calculation for the resources $2,240.00
Documenting the Requirements $640.00
Drafting the documents for Client's Approval $640.00
Implementation/ Renovation of the Tanks $858,680.00
Repairing works on Tank 1 $267,640.00
Working on 4 Steel Patch $30,000.00
Working 4 Steel anchor on top of the tank $35,000.00
Cleaning the tank $600.00
Repainting the Tank $202,040.00
Repairing Tank 2 $274,240.00
working on 7 Steel Patch $35,800.00
Working on 4 Steel anchor $35,800.00
Cleaning the tank $600.00
Repainting the Tank $202,040.00
Repairing Tank 3 $316,800.00
Working on 6 steel patch $22,000.00
Working on 4 Steel anchor on top of the tank $37,000.00
Replacing the main water supply valve of the tank $52,000.00

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Cleaning the tank $2,400.00
Repainting the Tank $203,400.00
Project Handover $2,400.00
Documents Handover $800.00
Documents Archive $0.00
Payment completion $960.00
Resource Release $640.00
Client Feedback $0.00
Client Sign off $0.00
Project Ends $0.00
Table 1: The Project Budget
(Source: Created by author using MS Project)
The budget is prepared with the help of activity based budgeting. This budgeting uses the volume
of a particular activity in developing a project budget. Apart from this, the difficulty in accessing
the tanks is considered while estimating this budget.
The assumptions made while preparing this budget are as follows-
1. The budget includes the cost of materials and labor cost.
2. The rate of the wage of the workers will remain unchanged throughout the project
implementation phase.
3. The schedule will not hamper the normal operation of the tank
4. The budget estimated will be sufficient to implement the project.
5. The materials needed will be easily accessible during the project implementation
(Khodakarami & Abdi, 2014.).

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2. The Project Schedule
It is estimated that it will take at least 4 months to complete the repairing works of three
tanks. The project is taking more time than expected as the accessing the tanks simultaneously
will be difficult. In addition to that, the tanks cannot be accessed during its filling time. The
schedule and the major milestone of the project is represented in the table below (Beşikci, Bilge
& Ulusoy, 2015)-
Task Name Duration Start Finish
Renovation of the oil tanker storage 110.38 days Mon 02-04-18 Mon 03-09-18
Project Starts 0 days Mon 02-04-18 Mon 02-04-18
Requirement Analysis 3 days Mon 02-04-18 Wed 04-04-18
Meeting with Client for discussion on
repairing start date 1 day Mon 02-04-18 Mon 02-04-18
Knowing basic Requirements of the
client in repairing the tanks 2 days Tue 03-04-18 Wed 04-04-18
M1: Completion of Requirements
Gathering 0 days Wed 04-04-18 Wed 04-04-18
Planning 6 days Thu 05-04-18 Thu 12-04-18
Understanding the Technical
Requirements and the resource
requirements
2 days Thu 05-04-18 Fri 06-04-18
Budget calculation for the resources 2 days Mon 09-04-18 Tue 10-04-18
Documenting the Requirements 1 day Wed 11-04-18 Wed 11-04-18
Drafting the documents for Client's
Approval 1 day Thu 12-04-18 Thu 12-04-18
M2: End of Project Planning 0 days Thu 12-04-18 Thu 12-04-18
Implementation/ Renovation of the
Tanks 91 days Fri 13-04-18 Fri 17-08-18
Repairing works on Tank 1 28 days Fri 13-04-18 Tue 22-05-18
Working on 4 Steel Patch 2 days Fri 13-04-18 Mon 16-04-18
Working 4 Steel anchor on top of
the tank 2 days Tue 17-04-18 Wed 18-04-18
Cleaning the tank 1 day Thu 19-04-18 Fri 04-05-18
Repainting the Tank 3 days Mon 07-05-18 Tue 22-05-18
M3: Tank 1 Repaired 0 days Tue 22-05-18 Tue 22-05-18
Repairing Tank 2 28 days Wed 23-05-18 Fri 29-06-18
working on 7 Steel Patch 2 days Wed 23-05-18 Thu 24-05-18
Working on 4 Steel anchor 2 days Fri 25-05-18 Mon 28-05-18
Cleaning the tank 1 day Tue 29-05-18 Wed 13-06-18

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Repainting the Tank 3 days Thu 14-06-18 Fri 29-06-18
M4: Tank 2 Repaired 0 days Fri 29-06-18 Fri 29-06-18
Repairing Tank 3 35 days Mon 02-07-18 Fri 17-08-18
Working on 6 steel patch 5 days Mon 02-07-18 Fri 06-07-18
Working on 4 Steel anchor on top of
the tank 5 days Mon 09-07-18 Fri 13-07-18
Replacing the main water supply
valve of the tank 5 days Mon 16-07-18 Fri 20-07-18
Cleaning the tank 4 days Mon 23-07-18 Fri 03-08-18
Repainting the Tank 5 days Mon 06-08-18 Fri 17-08-18
M5:Tank 3 Repaired 0 days Fri 17-08-18 Fri 17-08-18
Project Handover 10.38 days Mon 20-08-18 Mon 03-09-18
Documents Handover 10 hrs Mon 20-08-18 Tue 21-08-18
Documents Archive 5 hrs Tue 21-08-18 Tue 21-08-18
Payment completion 12 hrs Tue 21-08-18 Thu 23-08-18
Resource Release 1 day Thu 23-08-18 Fri 24-08-18
Client Feedback 5 days Fri 24-08-18 Fri 31-08-18
Client Sign off 1 day Fri 31-08-18 Mon 03-09-18
M6: Project Handover Successful 0 days Mon 03-09-18 Mon 03-09-18
Project Ends 0 days Mon 03-09-18 Mon 03-09-18
Table 2: The Project schedule
(Source: Generated by author using MS Project)
The Gant Chart and work breakdown structure of the project schedule is represented below -

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Figure 1: Representing the Gantt Chart of the project
(Source: Generated by author using MS Project)
Renovation of the oil
tanker storage
Project Starts Requirement Analysis
Meeting with Client for
discussion on repairing
start date
Knowing basic
Requirements of the
clinet in reparing the
tanks
M1: Completion of
Requiremnets Gathering
Planning
Understanding the
Technical Requirements
and the resource
requiremnts
Budget calculation for the
resources
Documenting the
Requirements
Drafting the docuemnts
for Client's Approval
M2: End of Project
Planning
Implementation/
Renovation of the
Tanks
Repairing works on Tank 1
Working on 4 Steel Patch
Working 4 Steel anchor on
top of the tank
Cleaning the tank
Repainting the Tank
M3: Tank 1 Repaired
Repairing Tank 2
working on 7 Steel Patch
Working on 4 Steel anchor
Cleaning the tank
Repainting the Tank
M4: Tank 2 Repaired
Repairing Tank 3
Working on 6 steel patch
Working on 4 Steel anchor
on top of the tank
Replacing the main water
supply valve of the tank
Cleaning the tank
Repainting the Tank
M5:Tank 3 Repaired
Project Handover
Documents Handover
Documents Archive
Payment completion
Resource Release
Client Feedback
Client Sign off
M6: Project Handover
Successful
Project Ends
Figure 2: the work breakdown Structure of the Project
(Source: Created by author using MS schedule Pro)
The different tools and techniques used in developing the project structure include Gantt chart
and work break down structure. The project will be following a waterfall approach since
simultaneous working on all the three tanks will be practically impossible (Brioso, 2015). The
merit of choosing waterfall approach is that there will be no scope creep and the project will be
following a sequential approach (Balaji & Murugaiyan, 2012). This is one of the main merits of
waterfall project management techniques over the other similar approaches (Burke, 2013). The
organization is paying a heavy fine due to the oil leakage that is causing a considerable amount
of environmental damage. Therefore, it is essential for the project team to complete the project
within the set schedule (Kim, Kang & Hwang 2012). The schedule prepared for this project is
expected to remain unchanged subjected to the fact that no new requirements are identified in the
later stages of project implementation.
3. Resource Requirements

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The resources involved in the project are listed below (Artigues, Leus & Nobibon, 2013)-
1. Workers and labors
2. Materials (Steel patches, Anchors, supply valve, paint)
3. Cranes
4. Project Management Team
The resources required for implementing the different tasks associated with the project is
represented in the table below (Tavana, Abtahi & Khalili-Damghani, 2014)-
Task Name Resource Names
Renovation of the oil tanker storage
Project Starts Project Manager
Requirement Analysis
Meeting with Client for discussion on
repairing start date Project Manager
Knowing basic Requirements of the
client in repairing the tanks Project Manager
Planning
Understanding the Technical
Requirements and the resource requirements Project Manager
Budget calculation for the resources Business Analyst, Project Manager
Documenting the Requirements Project Manager
Drafting the documents for Client's
Approval Project Manager
M2: End of Project Planning
Implementation/ Renovation of the
Tanks
Repairing works on Tank 1
Working on 4 Steel Patch Steel Patch 2m2[1],Rented large crane, Rented small crane
Working 4 Steel anchor on top of the
tank Steel anchors T1[1]
Cleaning the tank Cleaning Staff, Rented large crane, Rented small crane,
Workers
Repainting the Tank Rented large crane, Paint[1], Painter, Rented small crane,
Workers
Repairing Tank 2

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working on 7 Steel Patch Steel Patch 3m2[1],Workers, Rented large crane, Rented
small crane
Working on 4 Steel anchor Steel anchors T2[1],Workers
Cleaning the tank Cleaning Staff, Rented large crane, Rented small crane,
Workers
Repainting the Tank Paint[1],Painter, Rented large crane, Rented small crane,
Workers
Repairing Tank 3
Working on 6 steel patch Steel Patch1.5m2[1],Workers, Rented large crane, Rented
small crane
Working on 4 Steel anchor on top of
the tank
Steel anchors T3[1],Workers, Rented large crane, Rented
small crane
Replacing the main water supply valve
of the tank Supply Valve[1],Workers
Cleaning the tank Cleaning Staff, Rented large crane, Rented small crane,
Workers
Repainting the Tank Paint[1],Painter, Rented large crane, Rented small crane,
Workers
M5:Tank 3 Repaired
Project Handover
Documents Handover Project Manager
Documents Archive Archieve
Payment completion Project Manager
Resource Release Project Manager
Client Feedback
Client Sign off
Project Ends
Table 3: The resources used for each task
The details of the resources along with their standard rate of payment is represented in
the following table-
Resource Name Type Max. Units Std. Rate
Project Manager Work 100% $80.00/hr
Steel Patch 2m2 Material $30,000.00
Steel Patch 3m2 Material $35,000.00
Steel Patch1.5m2 Material $20,000.00
Steel anchors T1 Material $35,000.00
Steel anchors T2 Material $35,000.00
Steel anchors T3 Material $35,000.00

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Supply Valve Material $50,000.00
Workers Work 50,000% $50.00/hr
Paint Material $200,000.00
Cleaning Staff Work 30,000% $25.00/hr
Painter Work 25,000% $35.00/hr
Archieve Cost
Business Analyst Work 100% $60.00/hr
Rented large crane Cost
Rented small crane Cost
Table 4: Representing the Resources details
The major resources stress points include availability of the materials and the presence of
the workers during the project implementation stage. Since the tanks will remain accessible only
for a limited time, availability of the workers in that time is a major stress point associated with
the project. This project is particularly complex and it is the responsibility of the project manager
to identify and manage the critical stress points of the resources, in this case it is the availability
of the materials and the workers (Martinelli & Milosevic, 2016). Another major resourcing
stress point is choice of workers. Since the geographical location and shape of the site makes it
difficult to work on it (Kogan et al., 2017). Therefore, properly skilled workers are needed to be
chosen for the project so that they can work on the tank in any condition.
A contingency approach technique is chosen for resource estimation in the project
(Kerzner & Kerzner, 2017). The use of contingency approach is valid in this case as it deals with
the funding of the resources based on the business objectives. In this approach, the less important
resources can be sacrificed as well if it does not fit the budget (Wang et al., 2014).
One of the major tools of developing a proper budget is developing a proper project
schedule and the project plan. If the project plan is accurate, the budget will be accurate as well.

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In this project, a resource manager is appointed who is responsible for identifying the resource
requirements of the project (Navaz et al., 2013). However, the project budget and the resource
estimation is done according to the project deliverable, it is expected that no changes in the
resources will be required for successful project implementation.

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References
Artigues, C., Leus, R., & Nobibon, F. T. 2013. Robust optimization for resource-constrained
project scheduling with uncertain activity durations. Flexible Services and Manufacturing
Journal, 25(1-2), 175-205.
Balaji, S., & Murugaiyan, M. S. 2012. Waterfall vs. V-Model vs. Agile: A comparative study on
SDLC. International Journal of Information Technology and Business Management, 2(1), 26-30.
Beşikci, U., Bilge, Ü., & Ulusoy, G. 2015. Multi-mode resource constrained multi-project
scheduling and resource portfolio problem. European Journal of Operational Research, 240(1),
22-31.
Brioso, X. 2015. Integrating ISO 21500 guidance on project management, lean construction and
PMBOK. Procedia Engineering, 123, 76-84.
Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Khodakarami, V., & Abdi, A. 2014. Project cost risk analysis: A Bayesian networks approach for
modeling dependencies between cost items. International Journal of Project
Management, 32(7), 1233-1245.
Kim, J., Kang, C., & Hwang, I. 2012. A practical approach to project scheduling: considering the
potential quality loss cost in the time–cost tradeoff problem. International Journal of Project
Management, 30(2), 264-272.

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Kogan, L., Papanikolaou, D., Seru, A. and Stoffman, N., 2017. Technological innovation,
resource allocation, and growth. The Quarterly Journal of Economics, 132(2), pp.665-712.
Maravas, A., & Pantouvakis, J. P. 2012. Project cash flow analysis in the presence of uncertainty
in activity duration and cost. International journal of project management, 30(3), 374-384.
Martinelli, R. J., & Milosevic, D. Z. 2016. Project management toolbox: tools and techniques for
the practicing project manager. John Wiley & Sons.
Navaz, A. S., Fiaz, A. S., Prabhadevi, C., Sangeetha, V., & Gopalakrishnan, S. 2013. Human
Resource Management System. arXiv preprint arXiv:1309.5351.
Tavana, M., Abtahi, A. R., & Khalili-Damghani, K. 2014. A new multi-objective multi-mode
model for solving preemptive time–cost–quality trade-off project scheduling problems. Expert
Systems with Applications, 41(4), 1830-1846.
Wang, W. C., Weng, S. W., Wang, S. H., & Chen, C. Y. 2014. Integrating building information
models with construction process simulations for project scheduling support. Automation in
construction, 37, 68-80.