Project Management: Revamping Internal Controls - British Petroleum

This project outlines a plan to revamp the internal control systems of refineries within British Petroleum (BP). The project aims to enhance production efficiency, improve consistency, and better handle adverse situations, with an expected revenue increase of 2% within two years. It includes key objectives such as revamping the control system, increasing efficiency, and boosting production output. The project details deliverables, milestones, budget estimates, timelines, and geographical scope, focusing on implementation in the United Kingdom to leverage geographical advantages. Assumptions include stakeholder understanding and authority, with constraints of a six-month timeline and a $200,000 budget. The project also includes a Work Breakdown Structure (WBS), scope baseline, schedule, risk assessment, risk management strategies, cost-benefit analysis, and Key Performance Indicators (KPIs) to ensure successful execution and monitoring.

Running head: PROJECT MANAGEMENT
Project management
Name of the student
Name of the university
Author note

1PROJECT MANAGEMENT
Table of Contents
Section 1.....................................................................................................................................3
Background of the company, key markets and activities.......................................................3
Rationale and Project purpose................................................................................................3
Smart objectives.....................................................................................................................3
Project deliverables................................................................................................................4
Project Milestones..................................................................................................................4
Budget estimate and project timeline.....................................................................................5
Geographical scope................................................................................................................7
Project assumptions and constraints.......................................................................................7
Section 2.....................................................................................................................................9
WBS.......................................................................................................................................9
Project scope baseline and Schedule....................................................................................10
Section 3...................................................................................................................................13
Project risk and risk register.................................................................................................13
Qualitative risk assessment..................................................................................................16
Risk management Strategy...................................................................................................19
Section 4...................................................................................................................................19
Project costing and Budget...................................................................................................19
Cost benefit analysis............................................................................................................21
Section 5...................................................................................................................................23
KPI.......................................................................................................................................23

2PROJECT MANAGEMENT
Section 6...................................................................................................................................23
Conclusion and recommendations.......................................................................................23
References and Bibliography...................................................................................................24

3PROJECT MANAGEMENT
Topic: Revamp the internal control systems of refineries in British Petroleum
Section 1
Background of the company, key markets and activities
BP Inc. is one of the multinational companies in the field of oil and natural in United
Kingdom. The company has its headquarters in London and one of the super majors
companies in the field of oil and natural gas companies. It is sixth among all the large energy
companies in terms of capitalization in the market. Moreover, the company is the 12th largest
company in terms of the revenue generation in the market (BP global 2018). The company
operates at all areas of the industry so it can be considered as vertically integrated and
operates in more than 70 countries all over the world. The company operates in marketing,
exploration, and refining, production, distribution, petrochemicals, trading and power
generation. The company has more than 18000 service stations all over the world and has
considerable amount of holdings in countries like United States and India.
Rationale and Project purpose
The purpose of the project is revamping the internal control system of refineries in
British Petroleum. This project aims to improve the production efficiency of the refinery so
that adverse situations can been handled and there is significant increase in the consistency of
the production of oil and other byproducts. The project will examine the existing control
system and revamp it to develop an innovative system that has higher efficiency and better
control aspects for extreme situations. This project is expected to increase the revenue
generation of the company by at least 2% in the upcoming 2 years.
Smart objectives
The objective of the project are as follows:
 Revamping the control system of the refineries

4PROJECT MANAGEMENT
 To increase the efficiency of the existing control system
 To increase the production output in the refineries
Project deliverables
The deliverables in the projects describes the different activities that needs to be
performed in order to complete each phase of the project (Kerzner and Kerzner 2017).
Deliverables consists of all the tasks that are both tangible and intangible functions
responsible for the success of the project. In this current project, the different phases of the
project has been described.
Outline
Number Task Name Duration Start Finish
0 Revamp of internal control
systems in refineries 116 days Thu 20-12-18 Thu 30-05-19
1 Project initiation 9 days Thu 20-12-18 Tue 01-01-19
3 Project planning 33 days Wed 02-01-19 Fri 15-02-19
5 Project execution 51 days Mon 18-02-19 Mon 29-04-19
7 Project monitor and closure 23 days Tue 30-04-19 Thu 30-05-19
Project Milestones
Project milestone consists of all the tasks with duration zero and determines the clear
sequence of events in the project (Harrison and Lock 2017). The project milestone defines
completion of any important phase in the project. In this current study, the project milestone
consists of the expected timeline when each of the phases needs to be completed.
Outline
Number Task Name Duration Start Finish
0 Revamp of internal control
systems in refineries 116 days Thu 20-12-18 Thu 30-05-19
2 Milestone 1: project initiation
completed 0 days Tue 01-01-19 Tue 01-01-19
4 Milestone 2: Project planning
completed 0 days Fri 15-02-19 Fri 15-02-19
6 Milestone 3: Project executed 0 days Mon 29-04-19 Mon 29-04-19
8 Milestone 4: Project completed 0 days Thu 30-05-19 Thu 30-05-19

5PROJECT MANAGEMENT
Budget estimate and project timeline
Name Actual
Cost
Remaining
Cost
Baseline
Cost
Cost Cost
Variance
Project initiation $0.00 $6,200.00 $0.00 $6,200.00 $6,200.00
Milestone 1:
project initiation
completed
$0.00 $0.00 $0.00 $0.00 $0.00
Project planning $0.00 $22,640.00 $0.00 $22,640.00 $22,640.00
Milestone 2:
Project planning
completed
$0.00 $0.00 $0.00 $0.00 $0.00
Project execution $0.00 $58,080.00 $0.00 $58,080.00 $58,080.00
Milestone 3:
Project executed
$0.00 $0.00 $0.00 $0.00 $0.00
Project monitor
and closure
$0.00 $28,560.00 $0.00 $28,560.00 $28,560.00
Milestone 4:
Project
completed
$0.00 $0.00 $0.00 $0.00 $0.00

6PROJECT MANAGEMENT
Project initiation
Milestone 1: project initiation
completed
Project planning
Milestone 2: Project planning
completed
Project execution
Milestone 3: Project executed
Project monitor and closure
Milestone 4: Project completed
Revamp of internal control systems in refineries
0
10000
20000
30000
40000
50000
60000
70000
Baseline Cost Report
Baseline Cost Cost Actual Cost
Cost
Name Cost Baseline Cost Cost Variance
project manager $12,600.00 $0.00 $12,600.00
control engineer $19,600.00 $0.00 $19,600.00
electronics engineer $13,720.00 $0.00 $13,720.00
electrical engineer $10,920.00 $0.00 $10,920.00
Mechanical engineer $10,920.00 $0.00 $10,920.00
software engineer $19,320.00 $0.00 $19,320.00
Technicians $800.00 $0.00 $800.00
project board $1,600.00 $0.00 $1,600.00

7PROJECT MANAGEMENT
Q4 Q1 Q2
2018 2019
0
10000
20000
30000
40000
50000
60000
70000
80000
0
20000
40000
60000
80000
100000
120000
140000
Cash Flow Report
Cost Cumulative Cost
Cost
Cumulative Cost
Geographical scope
The geographic defines the areas where the firms can gain competitive advantage
based on the geographical location (Rai, Agrawal and Khaliq 2017). In this project, the
company will implement the project in United Kingdom as it will present the company with
geographical advantage.
Project assumptions and constraints
The assumptions of the following project are as follows:
 All the stakeholders have clear idea about the different stages of the project
 The purpose of the project has been clearly defined and been communicated to the
stakeholders
 The stakeholders has provided full authority for executing the project
The constraints consists of time and budget where it has been mentioned that the
project needs to be completed in the next 6 months and the budget of the project is

8PROJECT MANAGEMENT
$2,00,000. These constraints has to be taken into consideration while developing the
project.

9PROJECT MANAGEMENT
Section 2
WBS
Revamp of internal
control systems in
refineries
Project initiation
Identify the objective of
the project
Develop formal document
Sent for approval and
discuss with the
stakeholders
Make changes if
necessary
Documentation
Milestone 1: project
initiation completed Project planning
Identify functional
requirements
Identify user requirements
Document the overall
requirenments
Approval and discussion
with stakeholders
Make amendments if
necessary
Study existing network
Identify new hardware and
software requirements
identify the network
requirements
Milestone 2: Project
planning completed Project execution
Develop new control
system
Modify the existing
system for compatibility
conduct testing
make necessary
amendments
Implement the control
system
Milestone 3: Project
executed Project monitor and
closure
monitor the new
developed
system
identify the drawbacks
Make changes if
necessary
project review document
Member sign off
Milestone 4: Project
completed

10PROJECT MANAGEMENT
Project scope baseline and Schedule
The project schedule shows that overall time span of the project is 116 days and the
project commences on 20th December, 2018 and finishes on 30th of May, 2019. The project
has described the time allotted for each activity in each of the phases along with the timeline
for each tasks. However, it has been made sure that every phase in the project will be
provided with buffer time in case of delays and other risk factors.
Outline
Number Task Name Duration Start Finish
0 Revamp of internal control
systems in refineries 116 days Thu 20-12-18 Thu 30-05-19
1 Project initiation 9 days Thu 20-12-18 Tue 01-01-19
1.1 Identify the objective of the
project 1 day Thu 20-12-18 Thu 20-12-18
1.2 Develop formal document 2 days Fri 21-12-18 Mon 24-12-18
1.3 Sent for approval and discuss
with the stakeholders 3 days Tue 25-12-18 Thu 27-12-18
1.4 Make changes if necessary 2 days Fri 28-12-18 Mon 31-12-18
1.5 Documentation 1 day Tue 01-01-19 Tue 01-01-19
2 Milestone 1: project initiation
completed 0 days Tue 01-01-19 Tue 01-01-19
3 Project planning 33 days Wed 02-01-19 Fri 15-02-19
3.1 Identify functional requirements 7 days Wed 02-01-19 Thu 10-01-19
3.2 Identify user requirements 5 days Fri 11-01-19 Thu 17-01-19
3.3 Document the overall
requirements 4 days Fri 18-01-19 Wed 23-01-19
3.4 Approval and discussion with
stakeholders 1 day Thu 24-01-19 Thu 24-01-19
3.5 Make amendments if necessary 1 day Fri 25-01-19 Fri 25-01-19
3.6 Study existing network 5 days Mon 28-01-19 Fri 01-02-19
3.7 Identify new hardware and
software requirements 7 days Mon 04-02-19 Tue 12-02-19
3.8 identify the network
requirements 3 days Wed 13-02-19 Fri 15-02-19
4 Milestone 2: Project planning
completed 0 days Fri 15-02-19 Fri 15-02-19
5 Project execution 51 days Mon 18-02-19 Mon 29-04-19
5.1 Develop new control system 15 days Mon 18-02-19 Fri 08-03-19
5.2 Modify the existing system for
compatibility 12 days Mon 11-03-19 Tue 26-03-19
5.3 conduct testing 10 days Wed 27-03-19 Tue 09-04-19

11PROJECT MANAGEMENT
5.4 make necessary amendments 7 days Wed 10-04-19 Thu 18-04-19
5.5 Implement the control system 7 days Fri 19-04-19 Mon 29-04-19
6 Milestone 3: Project executed 0 days Mon 29-04-19 Mon 29-04-19
7 Project monitor and closure 23 days Tue 30-04-19 Thu 30-05-19
7.1 monitor the new developed
system 10 days Tue 30-04-19 Mon 13-05-19
7.2 identify the drawbacks 7 days Tue 14-05-19 Wed 22-05-19
7.3 Make changes if necessary 2 days Thu 23-05-19 Fri 24-05-19
7.4 project review document 3 days Mon 27-05-19 Wed 29-05-19
7.5 Member sign off 1 day Thu 30-05-19 Thu 30-05-19
8 Milestone 4: Project completed 0 days Thu 30-05-19 Thu 30-05-19