MGT5PMT: Western Australia Oil Storage Facility Project Case Study

This case study solution addresses a critical disruption in a project involving the construction of an oil and unleaded petrol storage facility in Western Australia. The original project timeline was compromised by an urgent requirement to complete the project five days earlier to accommodate a rescheduled shipment of aviation fuel. The solution utilizes Kotter's 8-step change model to manage the accelerated timeline, focusing on creating urgency, forming a powerful coalition, establishing a clear vision, and removing obstacles. The improved project schedule is detailed through a Gantt chart, outlining key phases such as initial planning, site construction, tanker construction, and project closure. The solution ensures that the project can still deliver on its objectives within the revised three-week timeframe, mitigating potential revenue losses and penalty payments. Desklib provides this and other solved assignments to aid students in their studies.

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Background of problem
The project was developed for constructing the Western Australia storage facility for oil
and unleaded petrol storage. The current storage tanker has worn out and it has become
impossible for continuing the tanker storage (Lord, Eastham & Jefferson, 2014). The tankers
have been more than 50 years old and the design has been outdated. However, the operation
manager of Western Australia, Kim had sent an urgent message asking for completing the
project in lesser time. A ship confinement with 4 million litres of aviation fuel was due in three
weeks and it was needed on urgent basis for completing the project successfully. The loss of this
confinement would result in delaying the backup ship for 12 months and loss of 2 million dollars
(Richert, Rogers & Burton, 2015). Moreover, the key customer would have to pay another 3
million dollars a month for the compensation. The completion of the project would require the
decreasing of the time required for completing the project in 5 days.
Solution of the Problem
The Kotter’s 8 step change model can be implied for adjusting the changes and
implementing it successfully and powerfully (Hickman & Ojo, 2017). Kotter’s model comprises
of eight steps namely creating urgency, forming a powerful coalition, creating a vision for
change, communicating the vision, removing the obstacles, creating short term wins, building on
change, and anchoring the changes (Lame, Jouini & Stal-Le Cardinal, 2017). The same steps can
be implied for easing the processes of the development and aligning the changes of the oil tanker
project so that the project could get ready before the shipment arrives in three weeks. The first
step of the process is creating urgency and since the project has to be completed in less time, the
project changes must be given highest priority for completion. The second step would involve

the convincing the people for agreeing to the change implication. The third step would involve
the creation of the change vision for the project so that changes can be implemented successfully.
The communication of the vision would be helpful for forming the alignment of the successful
determination of the success factors (Evans, 2016). The removal of the obstacles would result in
forming the solution of major problems for project development. The creation of short term
vision would align the deployment of the short term visions for supporting the motivation among
the project team. The early success to the smaller project operations would help in motivating the
project team. The building on change would help in working on the smaller changes and develop
proper project plan in the end (Anuar, 2015). The alignment of the Kotter’s 8 step change
method for the improved project plan of constructing the Western Australia storage facility for
oil and unleaded petrol storage would be done for completing the project in 3 weeks of time.
Improved Project Schedule
The modified project budget comprises of using the effective change implication and
management process. The complete project plan would be divided into 5 phases namely, initial
phase, planning phase, site construction, construction of tankers, and project closure. The initial
phase would comprise of requirement analysis, development of charter document, submission of
tender, and approval from government. The planning phase would comprise of requirement
analysis of planning, resource accumulation, plan development, and plan reviewed. The site
construction would comprise of site levelling, site cementing, developed plan implementation,
boundary construction, and building up the walls and roofs. The construction of tankers would
comprise of tanker specifications detailing, tank bottom construction, bottom plated installation,
installing shell plates, piping for the drainage, final coating, accessorizing the tank, platform
developing and railing, pipelining the tanks, passage for connection, and implication of fire and

other safety measures. The project closure would comprise of testing functionality of tanker
connections, approved by project manager, government authorization, tankers are being used,
and project completed. The improved project schedule is shown in the Gantt chart below,
ID Task
Mode
WBS Task Name Duration Start Finish
0 0 Development Project of Oil Tankers 3 wks Tue 5/1/18 Mon 5/21/18
1 1 Initial Phase 0.25 wks Tue 5/1/18 Wed 5/2/18
2 1.1 Requirement Analysis 3 hrs Tue 5/1/18 Tue 5/1/18
3 1.2 Development of charter document 3 hrs Tue 5/1/18 Tue 5/1/18
4 1.3 Submission of Tender 2 hrs Tue 5/1/18 Tue 5/1/18
5 1.4 Approval from Government 2 hrs Wed 5/2/18 Wed 5/2/18
6 2 Planning Phase 0.43 wks Wed 5/2/18 Fri 5/4/18
7 2.1 Requirement Analysis of Planning 3 hrs Wed 5/2/18 Wed 5/2/18
8 2.2 Resource Accumulation 4 hrs Wed 5/2/18 Thu 5/3/18
9 2.3 Plan Development 8 hrs Thu 5/3/18 Fri 5/4/18
10 2.4 Plan reviewed 2 hrs Fri 5/4/18 Fri 5/4/18
11 3 Site Construction 0.7 wks Fri 5/4/18 Wed 5/9/18
12 3.1 Site Leveling 6 hrs Fri 5/4/18 Mon 5/7/18
13 3.2 Site Cementing 6 hrs Mon 5/7/18 Mon 5/7/18
14 3.3 Developed plan implementation 3 hrs Mon 5/7/18 Tue 5/8/18
15 3.4 Boundary Construction 5 hrs Tue 5/8/18 Tue 5/8/18
16 3.5 Building up the walls and Roofs 8 hrs Tue 5/8/18 Wed 5/9/18
17 4 Construction of Tankers 1.3 wks Wed 5/9/18 Fri 5/18/18
18 4.1 Tanker Specifications Detailing 5 hrs Wed 5/9/18 Thu 5/10/18
19 4.2 Tank Bottom construction 6 hrs Thu 5/10/18 Fri 5/11/18
20 4.3 Bottom Plated Installation 4 hrs Fri 5/11/18 Fri 5/11/18
21 4.4 Installing Shell Plates 5 hrs Fri 5/11/18 Mon 5/14/18
22 4.5 Piping for the drainage 4 hrs Mon 5/14/18 Mon 5/14/18
23 4.6 Final Coating 5 hrs Mon 5/14/18 Tue 5/15/18
24 4.7 Accessarizing the tank 4 hrs Tue 5/15/18 Tue 5/15/18
25 4.8 Platform developing and railing 6 hrs Wed 5/16/18 Wed 5/16/18
26 4.9 Pipelining the tanks 5 hrs Wed 5/16/18 Thu 5/17/18
27 4.10 Passage for connection 4 hrs Thu 5/17/18 Thu 5/17/18
28 4.11 Implication of fire and other safety measures 4 hrs Thu 5/17/18 Fri 5/18/18
29 5 Project Closure 0.33 wks Fri 5/18/18 Mon 5/21/18
30 5.1 Testing Functionality of tanker connections 5 hrs Fri 5/18/18 Fri 5/18/18
31 5.2 Approved by Project Manager 2 hrs Mon 5/21/18 Mon 5/21/18
32 5.3 Government Authorization 4 hrs Mon 5/21/18 Mon 5/21/18
33 5.4 Tankers are being used 1 hr Mon 5/21/18 Mon 5/21/18
34 5.5 Project Completed 1 hr Mon 5/21/18 Mon 5/21/18
W F S T T S M W F S T T S
Apr 29, '18 May 6, '18 May 13, '18 May 20, '18 May 27, '18
Figure 1: Gantt chart of the project

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