Project Management of Large Asset: Analysis and Report

This project report delves into the intricacies of managing large asset projects, specifically focusing on the installation of major equipment in thermal power stations. It explores critical aspects such as project justification, contract processes, and project financing, emphasizing the importance of modularization, quality, and safety. The report examines the financing of power plants via project finance, the role of project teams, project processing, and the significance of tender estimation. It also covers the requirements for project changes, project assurance, and quality control, as well as the need for effective document management, reporting, and dispute resolution. The analysis highlights the challenges and strategies involved in managing large-scale projects, including the procurement of materials, the role of sub-contractors, and the importance of risk mitigation.

Running head: PROJECT MANAGEMENT OF LARGE ASSET
PROJECT MANAGEMENT OF LARGE ASSET
Name of the Student
Name of the University
Author Note

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Table of Contents
Definition of the project.............................................................................................................3
Project justification and contract process...................................................................................3
Financing of the project.............................................................................................................5
Identification..............................................................................................................................6
Project condition....................................................................................................................6
Project team............................................................................................................................7
Project processing..................................................................................................................7
Estimated tender.........................................................................................................................7
Project labor...........................................................................................................................7
Plant........................................................................................................................................8
Materials.................................................................................................................................8
Sub-contractor........................................................................................................................8
Requirement of project changes.................................................................................................9
Requirement of project assurance and quality control...............................................................9
Requirement for document management, reporting and governance......................................10
Requirement for disputes, attribution and mediation...............................................................11
Requirement for safety.............................................................................................................12
References................................................................................................................................13

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Definition of the project
The main focus which is related to the project is in the sector of the unique
construction which is focused on the aspect of the installation of major equipment in the
thermal power station which would be including mainly the turbines, boilers and generators.
The main customer relating to the project are the electrical power companies which are
mainly the commercial thermal power station, independent power producers (IPPs),
wholesale power producers and other thermal electrical plant, government agencies etc. The
delivery record relating to the thermal power station are stated below:
 Combined cycle thermal power station
 Conventional thermal power station that directly use coal, gas, oil and other fuels.
 Diesel power thermal station.
 Gas engine and other special thermal power station
 Gas turbine generator power station.
The projects main consideration which is taken into consideration is that the organization
modularize the different parts which are to be installed with the objective of shortening the
construction period. This majorly ensures the quality and the safety and directly improves the
efficiency. The organization has also developed the equipment which is related to the
transportation modules and other huge components to the location of the installation. In the
site of the power station large equipment’s are periodically replaced after operation. This is
mainly done to ensure the safety and the quality and the performance maintenance sector. In
this case it can be stated that special technology is very much needed due to the factor that
equipment which are to be replaced are very much large in size.
Project justification and contract process
Project justification

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It can be stated that in current time the concept of the thermal power using the concept
if the concentrated solar radiation which is known as CSP is evolving towards the aspect of
the lower electricity cost. This is done by means of effective conversion system and cheaper
components with longer life. It can be stated here that over 90% of the installed CSP plants
can be considered as large scale (multi megawatt) system which uses the concept of the steam
turbines energy convertor concept. There are a large potential which is related power
generation from the aspect of the sterling engine based CSP plant where the collector which
is related to the solar directly consist of parabolic dish units with the combination of high
temperature receiver of solar.
The main aspect which is related to the building of thermal solar power station is the
efficient and durable solar collector. The collector system directly consist of circular
parabolic mirror that directly concentrate the Sun’s ray to the receiver which is placed at the
focal point, this receiver directly converts the energy of the solar into heat at high
temperature.
Contract process
In recent times due to the general lack of resources, long project can lead to increasing
complexity of the legal system under which the project would be operating. The contract can
be considered as a document which directly binds the procurement and the parties which
ensure fairness in the process of acquisition. It can be stated that in this context that the
project manager should have a clear understanding so that their service/material acquisition
activities may not become isolated incidents. On the other hand it can be stated that the aspect
can be integrated whole upon which they are directly build a successful project practice of
management.

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Figure 1: (PROJECT JUSTIFICATION AND CONTRACT)
(SOURCE: Laudon & Laudon, 2016).
Financing of the project
A power plant is directly financed via the project finance route. The financing of the
project is usually defied as a limited or non-resource financing of the new project through the
establishment of a separate incorporated vehicle. The sector of the reliance is on the non-
resources dept (Bastos, 2018). which represents one of the different which is considered as
key between the traditional corporate finance and project finance. Taking into consideration a

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corporate finance the primary aspect of the repayment for the creditors and the investors is in
the sponsoring company which is backed up by its entire balance sheet not only the project. It
can be stated that if the overall project fails the creditors would be still in a level of comfort
due to the factor that they would be getting repaid which directly depends on the aspect of the
overall strength of the sponsor’s balance sheet. Project financing can be especially be used in
the sector of large scale capital intensive projects generation hard currency flow of cash for
example from internationally traded commodities. In particular it can be stated that
structuring of the large project as opposed to several smaller deals, reduce the overall legal
and cost of transaction thanks to the scale of economics. On the other hand it can be stated
that financing of large scale hard currency can leave the vendor to the aspect of the exposing
of the factor of the risk. The host government might have a keen interest in the sector of the
high profile project which being funded might directly fail to renew the agreement of the
concession, change the regulation or even expropriate the assets of the project and the cash
flow to gain the political rents and the access to the hard currency during the economic
downturn (Bastos, 2018).
Identification
Project condition
The condition of the project can be considered to be one of the most vital factors
which are taken into during the initial process of the project. The planning of the future of the
project directly depends upon the project condition. In most of the cases it should be taken
into consideration that the project condition should be taken into consideration by an expert
due to the factor that the overall working of the project would be directly depend on it. False
judgment of the project can sometimes lead the project to direct failure as it would not be
incorporating different strategy which are related to the working of the project.

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Project team
The project team can be considered one of the main factors which directly involve the
person who would be activity involving themselves into crucial activity of the thermal power
plant. The project team member in mainly incorporate the stakeholders, creditor, the project
members and the project manager. The project manager can be considered as one of the most
vital players in the position due to the factor that they control the overall working of the
organization. The project members work according to the notification of the project manager
and they actively contribute towards the different goal of the project which is set by the
management of the project (Kerzner & Kerzner, 2017). The project team should have a
common goal in place which they have to thrive to achieve in order to ultimately gain success
in the overall working of the project.
Project processing
The processing of the project is basically done by the project manager with the help of
the project team members. It can be stated the processing of the project is basically done with
the help of a goal which is predefined which directly impact the normal proceeding of the
project. In most of the cases if the project processing is not done properly the project manager
would be directly liable in these situation.
Estimated tender
Project labor
The estimation of the tender of the project labor directly involve people who would be
involving into the different sectors of the working. It can be stated that the people who would
be involved should be highly professional who can directly involve themselves into the
normal working of the different sectors.

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Plant
The plant would be incorporating the area of the location of the project. The plant can
be directly related to the aspect of the position of the implementation. There are different
factors which play a vital role in this aspect are the requirement of the raw material and the
cost which is related to the aspect of the transportation (Bastos, 2018).
Materials
Description Weight value (100%)
Excavation of power block 1.6
Discharge of circulating water system 3.0
Structure of circulating water system 2.6
System intake canal of circulating water
system
2.1
Landscape 0.8
Sanitary and waste water treatment system 1.5
Crushers plant and batcher 0.6
Yard firefighting and underground utility 2.8
Sub-contractor
The equipment purchase can directly account for 30% of the total power plant cost of
construction. According to the financial sources it can be stated here that the procurement of
the equipment can be directly be classified as “foreign” and “domestic” (Kerzner & Kerzner,

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2017). The GENCO’s head office which is located in the Seoul is in charge of the handling
aspect which is related to the procurement from foreign countries as these equipment are
imported from outside which is more economical in the aspect of the effectiveness and
efficiency. In accordance to the site arrangement and the criteria of the design, the technical
specifications are taken into consideration. The main functionality which is related to the
aspect of the sub contactor are mainly in the field of general description, site condition,
power plant outline, environment limits of design, quality of industrial water and sea water.
The technical side of the specification may include: operating condition, division of
responsibility for the equipment for responsibility supply.
Requirement of project changes
In some cases it can be seen that changes into the internal as well as external can be
incorporated which would be directly focusing on the aspect of a risk event which has
occurred. The main aim of the project change is to mitigate the factor of the risk which are
incorporated into the working of the project. The main focus point would be to decrease the
factor of the risk so that it does not impact the overall working of the project and does not
hamper the overall functionality of the organization. The project changes are majorly
incorporated by the project manager and should focus on the regaining of the normal
functionality of the organization (Kerzner & Kerzner, 2017).
Requirement of project assurance and quality control
The aspect which is related to the project assurance can be directly related to the act
of providing a project assurance that the project would be a success. It can be stated here that
the thermal power project has different types of feasibility aspects which are related to the
concept which has to be taken into consideration when the main implementation of the
project would be done. In most of the cases it should be taken into consideration that a

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feasibility study should be taken into consideration which would be directly affecting the
overall process. If it is taken into consideration that after the implementation if the project is
found out not to be feasible it would be a great loss for the organization who would be in
charge of the project.
The control aspect of the project which can be taken into consideration is related to
the different functionality of the project. It can be stated here that the normal working of the
project would be directly dependent on the different functional part of the project. Each of the
parts of the project should be functional able according to the requirement so that it would not
impact the other functional area of the project. In some of the cases it can be seen that it is
role of the project manager to take into concentration of the overall quality control of the
project. There can be different tools which can be related to the aspect of the quality control
of the project. It should be taken into consideration that check of the quality should be done
periodically so that the normal functionality and the proper functionality of the different parts
can be taken into consideration. In some cases if there are issue arises in any sector of the
working it can be noted that the mitigation strategy should be incorporated so that the system
would be not be involved into the issue and the normal functionality of the system can be
gained.
Requirement for document management, reporting and governance
Document management: It can be stated that the aspect which is related to the
document management can be very much crucial taking into consideration the internal
working of the organization. There are different types of software which can be used in these
aspect which can be used in the sector of the document management. Project management
tools can be utilized in this aspect which directly enhances the sector of the management of
the different activity of the organization.

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Reporting: Reporting should be done periodically to take into consideration that the
different parts of the project are working according to the requirement of the project. The
reporting is mainly done by the supervisor of the project who has the overall knowledge of
the projects internal as well as external working (Laudon & Laudon, 2016).
Governance: The aspect of governance is directly in the hand of the project manager
or the project supervisor. The project manager has the directly control over the working of the
project and the governance of the project. It can be stated that in this context the project
manager should be a person who is highly educated and should be immense knowledge in the
different fields of the project, the governance factors impacts the overall working of the
project on the long run.
Requirement for disputes, attribution and mediation
Disputes: The factor of dispute can be considered as one of the most important factor
which can alter the normal working of the different factors of the project. The disputes can
take place in different forms and it is the role of the project manager to deal with all the issue
and resolve the cases so that it would not be hampering the overall working of the project.
Attribution: It can be stated that in the normal working of the project there are
different attributes which have to be taken into consideration. There can be different types of
attributes which can be small but they have to be taken care of as it could directly impact the
overall working of the project.
Mediation: the factor of mediation is taken care of by the stakeholders or the
creditors of the project. It should be taken into consideration that the mediation sector can be
helping when the judgment of the other factors which are related to the internal working of
the project. the mediation factor play a vital role in the sector of the stakeholders and how
they directly operate the normal working of the project.

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Requirement for safety
The safety aspect in the working of the project which is related to thermal power plant
can be considered very much important. This is due to the factor that since the sector majorly
deal with chemical substances the safety of the workers should be given top most propriety.
In most of the cases it can be noticed that the workers should be given proper training so that
they could easily indulge into the different activity of the project. Training in these type of
situation can be considered very much important factor which directly involve the normal
functionality of the different aspect of the organization.

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