University Project: Storage Tank Dispute Analysis and Solutions Report

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Added on  2022/10/10

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AI Summary
This report examines a case study involving a dispute in a storage tank project in Western Australia. The primary issue revolves around the delay in restoring the tank to receive a shipment of 4 million liters of aviation fuel, leading to potential penalties and revenue loss. The delay is attributed to issues discovered in other tanks, resulting in a 10-day setback. The report emphasizes the importance of proper planning, resource management, and effective communication to resolve the issues. It suggests repairing the tanks promptly and considering alternative solutions, such as increased workforce and revised schedules, to meet the project deadline. The analysis also highlights the impacts of project changes, including financial penalties and customer dissatisfaction, underscoring the need to mitigate negative consequences and ensure customer satisfaction. The report references several sources to support its findings.
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Running head: DISPUTE IN THE STORAGE TANK
Dispute in the Storage Tank
Name of the Student
Name of the University
Author Note
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1DISPUTE IN THE STORAGE TANK
Issue Identification
The primary issue associated with the given case study focuses on the ‘Storage Tank’ in
Western Australia that has to be restored online to receive 4 million liters of Aviation Fuel from
a shipment, which is rescheduled. If the organization misses the target date, it will cost a
penalization of $3million per month from the customer-end along with a loss of $2million
revenue for the product from the Commercial Division. The deferment of the stated project by 10
days from the original timetable due to the discovery of problems in other tanks on the site has
led to a serious disaster. Organizing any other supporting shipment system would cost more
budget and an extra time of 12 weeks, that is unaffordable. Hence, according to (Kerzner,
2017) a proper planning and resource management can help to resolve the issues and achieve the
project goal within the estimated time.
Solution for Identified Problem
The given case study notifies that lack of time and inadequacy of resources are
responsible for such management problems. Hence, one should check the functionality of the
tanks on site and resolve the disputes so that no hindrance is created due to lack of resources.
Due to the flaw in the tanks, the project is delayed already by 10 days. To complete the project
on time, one should repair all the tanks at its earliest.
Alternative Solutions and Effective Communication
The project needs to have more work force who will have to work overtime to complete
the project on its stipulated time, which is 3weeks. One needs to revise the schedule and plan a
timetable to meet the requirements of the project within the deadline (Hornstein, 2015).
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2DISPUTE IN THE STORAGE TANK
Before the initiation of the project, the manager must plan the strategies and inform about
it to the labors. Communication plays an effective role in the processing of any task. The
manager must hold meetings with the workforce in between the project schedules to take updates
about the accomplishments of the tasks (Muller, 2017).
Impacts Identified
According to (Conforto and Amaral, 2016), one has to aim in preventing any negative
impact due to the changes in a project management task. In the given project, the Commercial
Division will fine $3m per month, on failing deadline, along with a loss of $2m revenue will
occur. The deadline is the main concern of the project to ensure customer satisfaction.
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3DISPUTE IN THE STORAGE TANK
References
Conforto, E. C., & Amaral, D. C. (2016). Agile project management and stage-gate model—A
hybrid framework for technology-based companies. Journal of Engineering and
Technology Management, 40, 1-14.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Muller, R. (2017). Project governance. Routledge.
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