Project Management Report: Repairing Fuel Tank Leakage Project

This project management report details a project aimed at preventing fuel tank leakages in Western Australia, which were causing significant financial losses due to environmental fines and reduced storage capacity. The report outlines the project's budget, which includes costs for various tasks such as tank repairing, cleaning, and repainting, and utilizes an activity-based budgeting technique. It also presents a detailed project schedule with milestones, durations, and start/finish dates for each task, visualized through a Gantt chart and a work breakdown structure. Furthermore, the report identifies the resources required, including skilled workers, project management personnel, materials like steel patches and paint, and equipment such as cranes. The report also provides a table detailing the resources responsible for each task and their associated costs, emphasizing the complexities of site accessibility and the importance of a well-defined project plan for successful implementation.

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. Milestone and Project Schedule.......................................................................................3
3. Resources Required.........................................................................................................8
References..........................................................................................................................12

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1. Project Budget
A project has been undertaken in order to prevent leakages of the Tank due to which the
30% of the ULP storage capacity of Western Australia is on a verge of collapse. Furthermore, the
organization has been paying $20,000 per month as environmental fines due to the leakage. The
condition of the tanks is critical mainly due to its age as the tanks are over 50 years old.
Therefore, repairing the tanks is essential in order to prevent the collapse of 30% of the
company’s capacity of unleaded petrol. The project budget is represented in the following table
(Walker, 2015)-
Task Name Cost
Fuel Tank Repairing $774,616.00
Project Starts $0.00
Planning Stage $18,528.00
Analysing the Requirements $4,368.00
Schedule Estimation $11,040.00
Budget and Resource Estimation $3,120.00
Documenting the Requirements $0.00
M1: End of Planning and Requirements Gathering $0.00
Repairing Work Implementation $750,760.00
Working on Tank 1 $231,200.00
Fixing the 4 steel patches $13,600.00
Adding 4 Steel anchor on top of the tank $30,000.00
Cleaning the outside of Tank $3,600.00
Repainting the Tank after cleaning $184,000.00
M2: Completion of Work on Tank 1 $0.00
Working on tank 2 $237,560.00
Fixing seven steel patches on the Tank $18,280.00
Working on the steel anchor $31,680.00
Cleaning works done $3,600.00
Repainting the outside of the Tank $184,000.00
M3: Completion of Work on Tank 2 $0.00
Working on Tank 3 $282,000.00
working on six steel patches $23,000.00
Working on the 4 anchors $35,000.00
Replacing the supply Valve $36,400.00
Cleaning the Tank $3,600.00

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Repainting the outside of the Tank $184,000.00
M4: Completion of Work on Tank 3 $0.00
Project Completion and Handover $5,328.00
Checking whether the leakage has been fixed $2,208.00
Documenting the project work $0.00
Payment completion $1,872.00
Resource Release $1,248.00
Client Sign off $0.00
Feedback and improvements $0.00
M5: End of Project $0.00
Table 1: The prepared budget
(Source: Created by author using MS Project)
An activity based budgeting technique is used to prepare this budget for the project. The cost of
materials and the labours are considered while preparing this budget. The main assumptions
associated with this budget are as follows (Saadé, Dong & Wan, 2015)-
1. It is assumed that the rate of wages of the labourers will remain constant till project
completion.
2. The materials that are needed will be readily available during the project implementation.
3. No extra requirement will be added while project implementation.
4. The entire budget prepared will be sufficient for covering all the requirements identified in the
project planning stage (Maravas & Pantouvakis, 2012).
2. Milestone and Project Schedule
Repairing, cleaning and repainting all the three tanks are the main objectives of the
project. The schedule prepared for implementing the project is represented in the following table

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(Kim, Kang & Hwang, 2012). The major milestone of the project is marked in red. It is estimated
that the project tank will take a minimum of four and half months will be required to implement
this project. The project would not have been complex if the site were easily accessible (Kogan
et al., 2017).
Task Name Duration Start Finish
Fuel Tank Repairing 135 days Wed 02-05-18 Tue 06-11-18
Project Starts 0 days Wed 02-05-18 Wed 02-05-18
Planning Stage 23 days Wed 02-05-18 Fri 01-06-18
Analyzing the Requirements 7 days Wed 02-05-18 Thu 10-05-18
Schedule Estimation 10 days Fri 11-05-18 Thu 24-05-18
Budget and Resource Estimation 5 days Fri 25-05-18 Thu 31-05-18
Documenting the Requirements 1 day Fri 01-06-18 Fri 01-06-18
M1: End of Planning and Requirements
Gathering 0 days Fri 01-06-18 Fri 01-06-18
Repairing Work Implementation 98 days Mon 04-06-18 Wed 17-10-18
Working on Tank 1 31 days Mon 04-06-18 Mon 16-07-18
Fixing the 4 steel patches 6 days Mon 04-06-18 Mon 11-06-18
Adding 4 Steel anchor on top of the
tank 5 days Tue 12-06-18 Mon 18-06-18
Cleaning the outside of Tank 10 days Tue 19-06-18 Mon 02-07-18
Repainting the Tank after cleaning 10 days Tue 03-07-18 Mon 16-07-18
M2: Completion of Work on Tank 1 0 days Mon 16-07-18 Mon 16-07-18
Working on tank 2 33 days Tue 17-07-18 Thu 30-08-18
Fixing seven steel patches on the Tank 6 days Tue 17-07-18 Tue 24-07-18
Working on the steel anchor 6 days Wed 25-07-18 Wed 01-08-18
Cleaning works done 10 days Thu 02-08-18 Wed 15-08-18
Repainting the outside of the Tank 10 days Thu 16-08-18 Wed 29-08-18
M3: Completion of Work on Tank 2 1 day Thu 30-08-18 Thu 30-08-18
Working on Tank 3 35 days Thu 30-08-18 Wed 17-10-18
working on six steel patches 5 days Thu 30-08-18 Wed 05-09-18
Working on the 4 anchors 5 days Thu 06-09-18 Wed 12-09-18
Replacing the supply Valve 5 days Thu 13-09-18 Wed 19-09-18
Cleaning the Tank 10 days Thu 20-09-18 Wed 03-10-18
Repainting the outside of the Tank 10 days Thu 04-10-18 Wed 17-10-18
M4: Completion of Work on Tank 3 0 days Wed 17-10-18 Wed 17-10-18
Project Completion and Handover 14 days Thu 18-10-18 Tue 06-11-18
Checking whether the leakage has been
fixed 2 days Thu 18-10-18 Fri 19-10-18
Documenting the project work 1 day Mon 22-10-18 Mon 22-10-18

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Payment completion 3 days Tue 23-10-18 Thu 25-10-18
Resource Release 2 days Fri 26-10-18 Mon 29-10-18
Client Sign off 1 day Tue 30-10-18 Tue 30-10-18
Feedback and improvements 5 days Wed 31-10-18 Tue 06-11-18
M5: End of Project 0 days Tue 06-11-18 Tue 06-11-18
Table 2: The Milestone and Project Schedule
(Source: Generated by author using MS Project)
The schedule of the project is further represented in the Gantt chart below-

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Figure 1: Representing the Gantt chart of the project
(Source: Generated by author using MS Project)
The work break down structure of the project is as follows (Larson, and Gray, 2013)-
Fuel Tank Repairing
Project Starts Planning Stage
Analyzing the
Requirements
Schedule Estimation
Budget and Resource
Estimation
Documenting the
Requiremnets
M1: End of Planning and
Requiremnets Gathering
Reparing Work
Implementaion
Working on Tank 1
Fixing the 4 steel patches
Adding 4 Steel anchor on
top of the tank
Cleaning the outside of
Tank
Repainting the Tank after
cleaning
M2: Completion of Work
on Tank 1
Working on tank 2
Fixing seven steel
patches on the Tank
Working on the steel
anchor
Cleaning works done
Repainting the outside of
the Tank
M3: Completion of Work
on Tank 2
Working on Tank 3
working on six steel
patches
Working on the 4 anchors
Replacing the supply
ValveCleaning the Tank
Repainting the outside of
the Tank
M4: Completion of Work
on Tank 3
Project Completion and
Handover
Checking whether the
leakage has been fixed
Documenting the project
work
Payment completion
Resource Relase
Client Sign off
Feedback and
improvements
M5: End of Project
Figure 2: Representing the work breakdown Structure of the Project
(Source: Created by author using MS schedule Pro)
The tools used for preparing this project schedule include different scheduling tools such
as Gantt chart and Ms Project. A sequential approach is chosen for project implementation and
therefore, the schedule has been created following a waterfall approach. Simultaneous working
on all the tanks will not be possible due to its limited accessibility and therefore, the chosen
method is appropriate for project implementation (Ruël, Bondarouk & Smink, 2012).
Furthermore, in order approaches, such as PRINCE2 there is a chance of scope creep which
cannot be considered in this project as the project needs to be implemented as soon as possible.
One of the significant merits of waterfall approach is that it helps in implementing a
project within the set schedule (Kim, Kang & Hwang, 2012). The use of work break down
structure has considerably helped in breaking up of the entire task in smaller executable form.

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The schedule identified for the project is needed to be followed throughout the project
implementation phase in order to successfully implement the project (De Brucker, Macharis &
Verbeke, 2013).
3. Resources Required
Since the repairing works of the tank is particularly complex, it is very necessary to
identify the resources required for successful implementation of the project. The resourcing
stress points include choice of skilled workers who would be able to work on heights and on the
tanks which are difficult to access (Kerzner, 2017). The resources identified for repairing and
cleaning the Tanks are as follows-
1. Skilled workers and Labourers
2. Project manager and the business analyst
3. Materials needed such as steel patches, steel anchors, supply valve and paint
4. Cranes and scaffolds
5. The project management team.
The resources that will be responsible for performing each task associated with the project that
has been identified in the project planning stage is indicated in the following table (Kerzner &
Kerzner, 2017)-
Task Name Resource Names
Fuel Tank Repairing
Project Starts Project Manager
Planning Stage
Analyzing the Requirements Project Manager

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Schedule Estimation Appointing Business Analyst, Project Manager
Budget and Resource Estimation Project Manager
Documenting the Requirements
M1: End of Planning and Requirements Gathering
Repairing Work Implementation
Working on Tank 1
Fixing the 4 steel patches Steel Patch 2m2[1],Large crane on
rent[1],Renting small crane[1]
Adding 4 Steel anchor on top of the tank Steel anchors for Tank 1[1]
Cleaning the outside of Tank Cleaning Staffs appointed, Large crane on
rent[1],Renting small crane[1]
Repainting the Tank after cleaning Large crane on rent[1],Paint to be
bought[1],Painter chosen, Renting small crane[1]
M2: Completion of Work on Tank 1
Working on tank 2
Fixing seven steel patches on the Tank Steel Patch 3m2[1],Workers and laborers, Large
crane on rent[1],Renting small crane[1]
Working on the steel anchor Steel anchors for Tank 2[1],Workers and laborers
Cleaning works done Cleaning Staffs appointed, Large crane on
rent[1],Renting small crane[1]
Repainting the outside of the Tank Paint to be bought[1],Painter chosen, Large crane
on rent[1],Renting small crane[1]
M3: Completion of Work on Tank 2
Working on Tank 3
working on six steel patches Steel Patch1.5m2[1],Workers and laborers, Large
crane on rent[1],Renting small crane[1]
Working on the 4 anchors
Steel anchors for Tank 3[1],Workers and
laborers, Large crane on rent[1],Renting small
crane[1]
Replacing the supply Valve Tank 3 Supply Valve[1],Workers and laborers
Cleaning the Tank Cleaning Staffs appointed, Large crane on
rent[1],Renting small crane[1]
Repainting the outside of the Tank Paint to be bought[1],Painter chosen, Large crane
on rent[1],Renting small crane[1]
M4: Completion of Work on Tank 3
Project Completion and Handover
Checking whether the leakage has been fixed Project Manager ,Appointing Business Analyst
Documenting the project work Archieve
Payment completion Project Manager
Resource Release Project Manager
Client Sign off
Feedback and improvements
M5: End of Project

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Table 3: The Resources responsible for each task
A standard rate has been assumed for the resources on an hourly basis. The cost of the materials
is also considered on basis of standard rates of the materials (Burke, 2013). The table below
represents the resources and the rate on which the resources will be paid during the project
implementation phase (Tavana, Abtahi & Khalili-Damghani, 2014)-
Resource Name Type Max. Units Std. Rate
Project Manager Work 100% $78.00/hr
Steel Patch 2m2 Material $12,000.00
Steel Patch 3m2 Material $15,000.00
Steel Patch1.5m2 Material $20,000.00
Steel anchors for Tank 1 Material $30,000.00
Steel anchors for Tank 2 Material $30,000.00
Steel anchors for Tank 3 Material $32,000.00
Tank 3 Supply Valve Material $35,000.00
Workers and laborers Work 2,000% $35.00/hr
Paint to be bought Material $180,000.00
Cleaning Staffs appointed Work 1,000% $25.00/hr
Painter chosen Work 2,000% $30.00/hr
Archieve Cost
Appointing Business Analyst Work 100% $60.00/hr
Large crane on rent Material $1,000.00
Renting small crane Material $600.00
Table 4: Representing the details of the Resources identified
One of the major complexities associated with this project is the accessibility of the
tanks. Therefore, skilled workers are needed who will be able to work in the site which is
triangular in shape and accessible only from one side. Hence the choice of skilled workers is a
major stress point associated with the project.

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For proper resource identification, it is essential to develop a proper project plan as the
budget of the project is determined according to the tasks required to be performed for successful
project implementation. Easy availability of the materials needed for implementation of the
project is another major resources stress point associated with the project.