Project Controlling and Closing

Project Controlling and Closing
Project Controlling and Closing

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Project Controlling and Closing

Project control activities go hand in hand with project development activities so that while the work of the project is being handled, the project is being managed and monitored through the implementation of proper oversight levels. Project controls should effectively address cost controls, project planning, and scheduling, productivity, and change management (Shohreh 2015).

Project controls include data gathering, analysis, and management of process used to predict and manage the results from a project program. Project controls encompass project strategy, risk management, project scheduling, document control, forensic assessment and cost control. The project controls must be effectively implemented and managed for a positive outcome from a project.

For effective project control, ABC organization review metrics and reports to identify variances from the planned project. Variances are determined by taking the actual performance value of a project and comparing it against the planned performance. If problems are anticipated, control measures are also taken into place (Shohreh 2015). Project controls used by the organization include planning, cost management, cost estimation and cost analysis. The project controls are implemented into the project by directing other people to take corrective actions. All stakeholders are informed of the changes, and they then discuss to update the changes required in their specific sections of the project.

Project Controlling and Closing

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Project controls are managed through configuration system. The configuration system has processes for submitting changes, tracking the project for reviewing and provision of methods to approve the required changes. The system mostly includes change control system. The system has formal documented procedures that are used in the application of technical and administrative directions. Project control management involves the identification of the features of a product, applying the necessary changes, and record changes and implementation status of the project. Configuration management ensures consistency in a project by integrating all the project control elements.

According to Nick (2013), control measures include:

1.    Scope control

A scope control is implemented to identify and manage all features of a project that may increase or decrease its scope beyond the approved scope. Scope control determines when a change has occurred and managed the changes when they occur. Change in scope requires additional project resources and; therefore, all stakeholders involved in the project should discuss the change.

2.    Schedule control

Schedules are affected by funding, climate, vendors. Schedule control is characterized by determination of the change in schedule and management of the schedule. Once a problem in the schedule is discovered, it is investigated and updated.

3.    Risk control

Risk control is the process of carrying out risk management plan to take necessary precautions resulting from risks over the course of the project. Risk control involves identification of the threat, quantifying and qualifying the risk, and responding to the risk. Workarounds are tools used to assess and analysis risks as they are short term, and the response is not defined before the occurrence of risks.

4.    Quality control

Quality control is a project control measure that monitors the result of the project to determine whether they conform to the required standards. Quality control is carried out through the project by the quality control engineers.

5.    Cost control

Cost control determines if forecasted project budget has changed; manage the change through corrective actions, and then informing the stakeholders of the changes. A project is managed through revised cost estimates that provide a modification to the cost information.

6.    Contract administration control

Type of project control that ensures sections within organization performance is in accordance to the contractual agreements.

Recommendation

For effective project control, cost control and scheduling should be interlinked to manage better variations from the budget and schedule by integration of the two controls to look at the big picture of the project.

Some of the methods used to assess project effectiveness include cycle-time reduction, the number of processes and steps, and customer satisfaction. However, one way to assess the effectiveness of a project is to evaluate its present level of efficiency and effectiveness. Current project efficiency and effectiveness provides a complete evaluation. Assessment is done for each of the segments in the project (Nick 2013).

Customer satisfaction measures effectiveness while resources measure efficiency. By measuring customer satisfaction and resource utilization, it is possible to determine the process to focus on for improvement together with other tools and measurements.

Use of current efficiency and effectiveness allows project managers to make quick decisions, visualize outcomes and simultaneously make a comparison of the processes. The current evaluation helps in generation of discussion by stakeholders for consensus. Current evaluation of efficiency and effectiveness creates focus and coordination within projects and helps in identification of gaps for improvement. The process is done by taking all resources and rating them as per the progress of the project on the planned results (Shohreh 2015).

Project Controlling and Closing

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Project managers apply project controls to keep up with the changes that happen during the implementation of a project. The controls include cost, schedule, risks, and quality. Proper management of the controls through integration leads to successful completion of a project. Changes in the control elements are identified and stakeholders informed to apply the necessary changes. Integration of the different control elements and stakeholders is a sure way to effectively enhance project management.

References

Nick Gamino (2013). Tips to manage projects effectively. Retrieved from https://www.huddle.com/blog/manage-projects/

Shohreh Ghorbani (2015). Key role of project controls in successfully managing your projects. Retrieved from http://www.projectcontrolacademy.com/key-role-of-project-controls-in-successfully-managing-your-projects/

Project Controlling and Closing

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Lotschberg Base Tunnel Project

Lotschberg Base Tunnel
Lotschberg Base Tunnel

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Lotschberg Base Tunnel Project

Introduction

Project management is an exercise that requires proper handling. This is because if weaknesses occur in the process of project management, a project may fail to be completed successfully. Project managers are supposed to ensure that all success measures are fulfilled. One of the success measures that stand out is proper risk management. A project that gets completed with low level of risk incidents is deemed to be successful.

This calls for the need to have proper risk management during implementation of projects. Another success measure for projects is use of suitable tools and technology. Projects are known to use tools and technology to carry out the different processes towards completion. This means that proper selection and application of tools and technology is necessary.

This essay is focusing on Lotschberg Base Tunnel project that was successful. The risks that were identified are well explained together with the management that was done. This is done properly through identification of specific risks and approaches that were used to mitigate them.

The essay goes further and gives details of the tools and techniques that were used in the implementation of Lotschberg Base Tunnel project. The suitability of each tool and technique is also explained fully. To sum it up, conclusion is drawn for the matters arising from the essay.

The project

The Lotschberg Base Tunnel project was constructed in Switzerland. The project resulted into a 34.57 km long tunnel. The Alps accommodates this mega tunnel. This project was initiated in the year 2005 and continued until 2007.

The purpose of the project

All projects are supposed to have clear goals. The project goals determine the suitable approach to use. The purpose of the Lotschberg Base Tunnel was to provide transport solution to the area of location. This tunnel was aimed at enabling growth of railway transport.

Management of risks and uncertainties

It is common knowledge that projects are full of risks and uncertainties. Some of the risks are so dreadful that they threaten the progress of a project. In cases where the project is complex, the probability of having numerous risks goes high unlike the case of simple projects, thus the need to have a working approach (Kwan 2011, p. 91).

The management of risks for Lotschberg Base Tunnel project was done through proper planning. This commenced through with definition of the strategy likely to spearhead risk management efforts. The risk strategy advocated that there should be a team mandated with risk management. In risk management for projects, it is advisable to have a reliable risk management wing (Sullivan 2001, p. 35). Additionally, the strategy for risk management during this project defined clearly the process of managing risk. The phases defined included;

  1. Risk identification
  2. Risk overview
  3. Examination of risk
  4. Mitigation of risk

After defining the risk management approach above, it was easy to manage the identified risks for the project. The risks identified for during implementation of Lotschberg Base Tunnel project were handled as below;

  1. Complexity risk

Upon identifying the risk identification approach, this is one of the noted risks. This project was a complex one thus attracting risk associated with projects of that size. This risk was associated with the probability of failing o meet the various aspects of the project. To manage this risk successfully, the risk management function started by coming up with a strategy to identify all aspects of the project.

This gave the project managers an insight into the big picture of the project. With this done, a risk management plan was created. The risk management plan for Lotschberg Base Tunnel project ensured that all parts of the project were well factored in all activities. Additionally, managing the complexity risk for this project involved identifying and clarifying the small bit of tasks that had to be handled.

This came as a way of simplifying the complex processes and activities for Lotschberg Base Tunnel project. Having created clarity of the internal tasks, it became easy for each of the risk management team members to understand their responsibility in the project without confusion related to high level of complexity of this project.

  1. Finance risk-cost funds

Mega projects are known consumers of large amounts of money. To implement complex projects, it requires proper planning on matters of financing (Didraga 2012, p. 89). According to Strazewski, L 2009, p. 82), finance risk should be handled as a priority risk. This is because poor finance risk planning leads to inadequate funds thus affecting the progress of a project. During the implementation of Lotschberg Base Tunnel project, risk related to finances was identified.

This risk was broken down into two categories. One of these categories was source of funds while the other risk category was about financial cost. Regarding the risk about sources of financing, proper planning was done to ensure that there would be no financial drought during the progress of this project. This ensured that all requirements were financed for when needed.

On the other hand, the cost risk was about the level that would be used to completion of Lotschberg Base Tunnel project . To manage this risk, the project managers ensured that aspects that would lead to increased risk were handled well. Firstly, proper stock management was carried out. This enabled the project to adhere to good practices on stock management such as equilibrium order quantity. Additionally, the project risk function ensured that the assumptions regarding finance risk were realistic. This is because each risk has to be managed through the assistance of assumptions.

  1. Communication risk

In implementation of a project, there has to be proper communication system. This means that absence of proper communication leads to unsuccessful flow of project activities. According to Jafari et al. (2011, p. 16), lack of proper project communication sometimes leads to stalled or abandoned projects. As the identification of risks for Lotschberg Base Tunnel project was taking place, communication risk was identified.

There was fear that lack of proper communication could affect this project. To handle this risk, the risk management function for this project ensured that a working project communication system was put in place. Firstly, everybody who was working on Lotschberg Base Tunnel project  was informed of the need to have proper communication. This was done with support given to those who were likely to have communication challenges. Moreover, proper management of barriers to efficient communication were broken.

To make it better, the project managers ensured that communication equipments were acquired for efficient system. To make communication risk well managed, each individual was urged to ensure that clarity of communication messages was observed. This was aimed at ensuring that the actions that were intended to be carried out were easily picked.  As the project progressed, the risk regarding communication was put away through ensuring that there was continuous improvement of the communication channels. This was supported by review of the communication related policies.

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  1. Human resource risk

Risk related to human resource for the project was also identified. One of the identified events that would lead to this risk was poor recruitment process. There was fear that the recruitment process would not be on time together with hiring of incompetent people. To manage this, the recruiting function ensured that timelines were adhered to throughout the process. Additionally, evaluation of the skills held by the potential employees was done thoroughly. Induction, monitoring and control of the successful individuals were also done appropriately.

The other risky event was the fear that some employees would abandon their duties. To manage this, the human resource management function for the project ensured that close supervision was carried out. Another identified contributor of human resource risk was project team disagreements. Whenever there are conflicts within the workforce, the human resource risk escalates (Pardo 2009, p.86).

To handle this, the human resource management group ensured that proper conflict resolution was applied. This increased the number of conflicts solved amicably. Time to time team building activities were also helpful in ensuring that the human resource risk as a result of conflicts was mitigated. To ensure that the workforce stayed on duty, the human resource function identified health and safety aspect of workplace as qualifying for management to avoid the related risk.

This was done through having health and safety experts advise accordingly. From the health and safety experts consulted proper assessment was done. This was followed by education cum advice on health and safety matters. This was made better by support of the aspects that make employees motivated and geared towards completion of their tasks.

These included attractive wages and incentive programs. Through this, the employees felt appreciated and workforce turnover was reduced throughout the project. To make it better, the working conditions were made friendlier to the workers. Proper management of working conditions ensures that the human resource risk is managed properly (Riley 2013, p.54).

  • Technological risk

Technology has become one of the greatest aids to creation of efficiency in the implementation of projects. According to Nikolova (2015, p.34), technological aspect of a project should always be considered in risk management.. The events that were feared might cause technological risk included the use of wrong technology or use of technology that is not tested yet.

To manage the risk, the issue of using the wrong technology for Lotschberg Base Tunnel project was handled through proper comparison of the project with the available technologies. This exercise led to elimination of the irrelevant technologies. To settle on the final right technology, the benefits of each relevant technology were looked at and decision was made. Regarding use of untested technology for the project, elimination was done. This led to a clear picture of the suitable technology.

  • Environmental risk

Regarding the identified environmental risk, the negative effects that the project would have on environment were considered. According to Ali, M et al. (2008, p. 56), environmental conservation is a success measure in projects. First, the physical interference with land through excavation for tunnelling was considered. Secondly, this project has part of its length constructed on the Alps thus the need to consider the effects on the beautiful topography.

To manage the environmental risk as per the identified aspects of the project, proper research and consultation was carried out. This let to proper input regarding the processes that would be friendly to the environment within the project location. Additionally, materials that are friendly to environment were used. This was followed by proper use of equipments to ensure that they maintain the stability of the environment. The processes and techniques used in a project should always help in improving life through environmental carefulness (Sharma, Pablo & Vredenburg 2009, p. 21)

  • User risk

Project users have become an integral part of project management (Huang 2010, p. 25). This is because the role they play as stakeholders is priceless. With this in mind, proper risk searching was carried out and the risk function felt that there was need to consider user risk for management. To manage this risk, proper rapport was created between the project and users. Constructive meetings were scheduled for the users to interact with the project team.

This was useful in ensuring that there was better understanding of the project progress. Additionally, proper interaction with the users created a platform where confusing aspects of the project were made clear. With clarification of confusing elements of the project, it was easy to explain some of the challenges that the project was coming through. This brought about a situation where more support was given by the stakeholders.

  • Supplier risk

Projects are usually sustained by material availability. Breakdown in material requirement was identified as an occurrence that may lead to supplier risk. According to Vivian and Shen (2012, p. 86), this is usually brought about by the fear that some suppliers may be inefficient in their supply.

To handle this, the stock management for the project was made more efficient. This included proper management of the re-order level to ensure that proper levels of stock are maintained. Additionally, adherence to supplier payment plans was done to avoid supplier unrests. To make it better, suppliers were warned against going against their contracts.

Benefits to the project from proper risk management

It is worth noting that when risk management is done well, a project benefits from it. During Lotschberg Base Tunnel project, risk management was done in a way that brought about several benefits.

  1. Budget adherence

Risk management has a positive correlation with budget movements. The budget that was set for this project did not skyrocket beyond. This was caused by various reasons, proper risk management being one of them. Eventually, Lotschberg Base Tunnel project was completed within the estimated budget one reason being there was no risk related compensation to make.

  1. Certification

During the implementation of this project, proper risk management let to certification of the various phases. It is worth noting that projects are usually halted or stopped whenever they operate under circumstances that are too risky. With this project managing its risks properly, it was easy to obtain certificates from the relevant authorities.

  1. Reduced disruptions

Whenever risky incidences occur during implementation of a project, disruptions take place. This means that the project schedule is affected among other aspects of the project. Luckily, Lotschberg Base Tunnel project saw few disruptions. This is because there was proper management of risks identified for the project.

  1. Reduced insurance premiums

This project ran to completion successfully with few incidents. This means that insurance evaluation did not find need to increase the premiums already set for various covers. Interestingly, there was an effort to negotiate for lower premiums since the project was progressing within safe operation.

  • Cost stability

As a result of proper risk management during implementation of this project, the cost involved was stable. This project operated within the cost range planned. The stability of the cost was brought about by the fact that there were no much additions as a result of response to risky incidences.

Tools, techniques and their suitability for Lotschberg Base Tunnel project

This project called for the use of reliable tools for project management. According to Loo (2009, p. 46), the need for project management tools is brought about by the complex nature involved. The tools are known to simplify activities that would have proved complex without.

During the implementation of Lotschberg Base Tunnel project, the Program Evaluation Review Technique (PERT) was used as a tool. This project management tool was applied manually in the project. It is worth noting that it can be used with the aid of computer software. PERT is a very useful project management tool since it identifies the activities that are required for a project to continue up to completion (Radek 2016, p. 14-24). This tool is known to give proper guidance when it comes controlling the flow of activities.

Through the use of PERT as a project management tool, the specific project activities were identified successfully. The identification of these activities assisted in planning better for the project. During the progress of Lotschberg Base Tunnel project, this tool of project management enabled the project managers control all processes successfully.

With the aid of this project management tool, the project managers were able to identify the time requirement for each of the identified tasks. This enabled the project managers come up with suitable schedules as per the identified timeframe of the projects. Additionally, this project tool was used in identifying the challenges that were embodied to each activity.

Proper identification of challenges facing a particular project activity is very important since it creates a good opportunity for finding solution (Sunday Business Post 2011, p. 16). Therefore, this tool enabled the project managers come up with ways of overcoming challenges facing the project.

The use of Program Evaluation Review Technique (PERT) was advisable. The suitability of this project management tool was encouraged by its ability to address several aspects of a project at the same time. It does away with instances of omissions that other project techniques have.

Importance of using suitable tools and techniques for Lotschberg Base Tunnel project

It is advisable for projects to be handled properly through use of the suitable tools and techniques. The tools and techniques used were able to bring benefits regarding the following.

The use of PERT enabled the project to run within the expected cost level. According to Engwall (2012, p. 595) says that this is because this tool for project management enables proper planning. Proper planning is known to be useful in cost management of a project.

Communication

Through the use of the identified tools and techniques, communication within the stakeholder community was made efficient. Selection of proper techniques ensures that the project system is coordinated in terms of communication.

Risk

It is worth noting that project techniques play a big role in risk management. Through the use of the suitable techniques for Lotschberg Base Tunnel project, risk management was made easy thus reaping benefits of having proper risk management for a project.

Resource allocation

The use of PERT as a tool for this project enabled the project manager is able to manage the available resources well. This was through the ability of this tool to give forecasts for resources. This is very useful in projects since it makes planning easy.

Efficiency

Through the use of suitable tools and techniques for this project, efficiency was created in all activities of the project. The tools assisted in identifying the main activities for the project. Upon identification, the activities were scheduled according to the design of the project. This was merged with proper time plan that let to successful completion of Lotschberg Base Tunnel project.

Conclusion

Projects should be handled with a lot of care. This is necessary because it brings about identification of all aspects that need to be put under control. Risk management should be planned for whenever a project is being implemented. The project manager should ensure all aspects of risk management are put in order. This should be through assignment and investment in risk management. Additionally, the process of risk management should be defined properly to avoid confusion.

The tools and techniques to be used for a particular project should be identified in time. Testing practically or through precedent should be done. This should be supported by detailed proof of their suitability. This should be motivated by the need to gain from the benefits associated with project tools and techniques. It is worth noting that the tools and techniques used in project management require continuous review. This is always important since it enables the project managers update the appropriately.

References

Engwall, M 2012, PERT, Polaris, and the realities of project execution, [Online]  Available at: http://search.proquest.com/business/docview/1112233880/F6CAB9846CF14773PQ/1?accountid=45049, [Accessed 2 May 2016].

Ali, M et al. 2008, developing environmental impact statement (EIS) guidelines for the management of environmental quality at major projects in Kuwait, [Online]  Available at: http://search.proquest.com/business/docview/204618562/13EB17FBF311442APQ/2?accountid=45049, [Accessed 2 May 2016].

Didraga, O 2012, The importance of risk management for achieving success in it projects, [Online] Available at: http://search.proquest.com/business/docview/1287028821/4C6CD6EFE1EE4787PQ/1?accountid=45049,  [Accessed 2 May 2016].

Huang, T 2010, Dynamic Quality Management in Complex Construction Projects, [Online] Available at: http://search.proquest.com/business/docview/733014523/13EB17FBF311442APQ/1?accountid=45049, Last accessed 28th April 2016

Jafari, M, Rezaeenour, J, Mohammad M & Atefe H 2011, Development and evaluation of a knowledge risk management model for project-based organizations, [Online]  Available at: http://search.proquest.com/business/docview/857707230/4C6CD6EFE1EE4787PQ/29?accountid=45049, [Accessed 2 May 2016].

Kwan, TW 2011, A Risk Management Methodology for Project Risk Dependencies, [Online] Available at: http://search.proquest.com/business/docview/893974664/4C6CD6EFE1EE4787PQ/26?accountid=45049, [Accessed 2 May 2016].

Loo, R 2009, A multi-level causal model for best practices in project management, [Online] Available at: http://search.proquest.com/business/docview/217359658/2F4FAD9DE7DB443DPQ/8?accountid=45049, [Accessed 2 May 2016].

Nikolova, LV, Kuporov, JJ & Rodionov, DG 2015, Risk Management of Innovation Projects in the Context of Globalization, [Online]  Available at: http://search.proquest.com/business/docview/1753590788/4C6CD6EFE1EE4787PQ/32?accountid=45049, [Accessed 2 May 2016].

Pardo, IS et al. 2009, Looking into the black-box: analysis of the effectiveness of human resources strategy*, [Online] Available at: http://search.proquest.com/business/docview/225146340/1B854395A7974BD1PQ/16?accountid=45049, [Accessed 2 May 2016].

Radek, D 2016, The Level of Use of Project Management Methods, Techniques and Tools and Their Impact on Project Success – Selected Region of Czech Republic, [Online] Available at: http://search.proquest.com/business/docview/1752861959/B741D3FD890042F6PQ/1?accountid=45049, [Accessed 2 May 2016].

Riley, JM 2013, Understanding the antecedent competencies of organizational risk management capabilities, [Online] Available at: http://search.proquest.com/business/docview/1437003886/B69B4A30BC934996PQ/19?accountid=45049, Last accessed 2nd May 2016

Sharma, S, Pablo, A & Vredenburg, H 2009, corporate environmental responsiveness strategies: The importance of issue interpretation and organizational context. [Online]  Available at: http://search.proquest.com/docview/236358217/5524C7862854D96PQ/14?accountid=45049, [Accessed 2 May 2016].

Strazewski, L 2009, Benefits/Financial Products Fit Risk Management Strategy, [Online]  Available at: http://search.proquest.com/docview/200367306/88A8C3FB34ED4BF3PQ/2?accountid=45049, Last accessed 28th April 2016

Sullivan, L 2001, Enterprise wide: Building a Risk Management program from the ground up, [Online] Available at: http://search.proquest.com/docview/227018296/A25516E0136242C6PQ/2?accountid=45049, [Accessed 2 May 2016].

Sunday Business Post 2011, Project Management: Tools of the trade, [Online] Available at: http://search.proquest.com/business/docview/1112233880/F6CAB9846CF14773PQ/1?accountid=45049, [Accessed 2 May 2016].

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Management of Complex Projects: The Seikan Tunnel in Japan

Management of Complex Projects
Management of Complex Projects

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Management of Complex Projects: The Seikan Tunnel in Japan

Introduction

Project management is one of the aspects that cannot be ignored whenever there is need to have a project. This may be for simple as well as complex projects.  Management of complex projects is demanding. This is because the complexity of the projects involves many requirements. This calls for dedication from those tasked with seeing a complex project to completion.

The completion should be within the expected standards. This essay is focusing on various aspects of mega projects. This is done through analyzing one of the complex projects that have been carried out across the globe. This essay will focus on the Seikan Tunnel in Japan.

The project

The Seikan Tunnel in Japan is a project that brought to birth a dual gauge railway line. This tunnel is 53.85 kilometers long. It is worth noting that part of this length is under water. The length of portion of this tunnel that is under water is 23 kilometers. It is interesting to learn that the portion that is immersed under water is found 302 feet below the sea level. It is worth noting that the Seikan Tunnel comes second in terms of tunnel lengths in the world. This means that it is beaten in length by the Channel Tunnel.

The project goal

Each project set for implementation should always have a goal (Huang 2010, p.28). The purpose of implementing this project was to offer transports solution to users in the location of this project. The Seikan Tunnel connects Honshi and Hokkaido Islands in Japan. The fact that it is dual carriage gives users an opportunity to maximize on efficiency. It is interesting to learn that the need to give people returning home after World War II contributed immensely in calling for a project like the Seikan Tunnel.

Additionally, the increased traffic witnessed in the route that eventually accommodates this tunnel pushed for implementation of this project to ease it. This project was meant to reduce the transport challenges facing users in this area such as ferry accidents. For example, sinking of 5 ferries ferrying about 1430 passengers increased the need for this project.

Type of project approach

The Seikan Tunnel project was implemented through the use of traditional project framework. This was through planning around the general processes of a project. The traditional approach concentrated on commencement, proper planning and design, construction, contrl and finishing of the project. This framework created ease in handling each task.

The project success measures

For a project to be successful, there are certain measures that have to be put in place (Weissenberger & Kotch 2007, p. 24). For that matter, this project had its success measures too. One of the success measures for this project was completion within the set time. This project had time set for all stages. Completion within the stipulated time would deem this project successful. As a matter of fact, it was completed within the expected time.

The other success measure for this project was continuous progress. The project was to be declared successful if all phases continued without stalling. The continuity was necessary since it means that the project would be completed within the set duration. Thirdly, acceptance of this project was the other success measure. In project management, acceptance from stakeholders is very crucial (Windapo & Goulding 2013, p.431).

This is because implementing a project that none of the targeted persons would not want to be associated with is useless. Luckily, this project received wide acceptance from stakeholders thus being declared successful.

The other vital success measure for this project was based on budgeting. This measure guided that the project’s completion within the set budget would deem it successful. The Seikan Tunnel was planned to operate with a budget of about $4.0 billion. Fortunately, it was completed with US $3.6 billion. This means that the budget was adhered to thus the project becoming successful as per this measure.

The project web

The implementation of this project saw the presence of a wide project web. This touched on the contractors, government, media, observers and multinationals among others. The Japan Railway Construction public was created to handle this project. Several suppliers were given tenders to supply the required materials. Most of these suppliers were multinational companies.

The media and observers ensured that information about the project trickled to the stakeholders. Zeng et al. (2009, p.19) say that the media is an important partner in project management. On the other hand, the government ensured that the project was properly secured and funded.

The Seikan Tunnel project organization

This project had project-based organization. This was evident from the fact that various functional sections were created during the project implementation. These departments had individuals assigned to them for the long periods of the implementation. This led to the project having defined authority from the project managers. Additionally, each and every individual in the project implementation group had tasks to handle thus need for upholding high levels of responsibility.

The Project life cycle of Seikan Tunnel

This project took a total of 43 years to be completed. Over the 43 years, the project went through several stages. Below is a matrix showing the stages and events over the 43 years of the project.

DateMain event
April 1946Surveying for the project commenced
March 1954The Japan Railway Construction public was established to oversee implementation of the Seikan Tunnel
September 1971The main tunnel construction kicked off
January 1983The Seikan Tunnel piloting was done
March 1985The Seikan main tunnel  was confirmed
March 1988The Seikan Tunnel was opened

Problem areas that had to be overcome during the project life cycle

Mega projects are known to have problems that have to be overcome for a project to be completed (Zolkos 2012, p. 21). For the Seikan Tunnel, the problem areas were found in;

  • Inadequate expertise

Expertise is one thing that each project should have (Sullivan 2001, p. 78). This means lack of adequate expertise becomes a problem that should be dealt with so that it does not disrupt a project. At some point during the implementation of this project, certain expertise became inadequate. This threatened the success of this project. In a bid to save the project from failure, the project managers moved with speed and acquired individuals who had the required expertise to drive this project to completion.

For example, the use of tunnel boring machines had to be stopped for sourcing of blasting expertise. This was brought about by discovery of hard rock that could not be bored successfully.

  • Design

The design of a project is very important in implementation. The design for this project had to be altered to make it more suitable for the project. It is worth noting that only small alterations were done.

  • Unforeseen Disruptions

The implementation of this project saw some minor disruptions. The weather and surroundings would get turbulent sometimes. The weather sometimes disrupts continuity of projects (Sharma 2009, p. 45). This would affect continuity of operations for this project. This was a major threat to the time that was set for completion of this project.

Areas of good practice in the Seikan Tunnel project implementation

In the implementation of this project, several areas witnessed good practices. These good practices led to successful completion of the Seikan Tunnel. These good practices include;

  • Environmental practices

The environment is one thing that many implementers of mega projects fail to respect (Ali et al. 2008, p.670). It is worth noting that taking care of the environment should be concern for everyone involved in implementation of complex projects (Loo 2009, p. 30). With this in mind, this project saw the environment taken care of. This was through the use of environment friendly technology. This project was implemented in a way that had efforts to see carbon emissions reduced. Additionally, the other habitats of the environment were not affected.

During the implementation of this project, eco-friendly materials were used. The project managers ensured that material selection was proper to avoid those unfriendly to environment. The suppliers were informed that they should adhere strictly to the specifications forwarded to them.

For example, water was not contaminated in any way. The soil was also prevented from effects of corrosive processes.

  • Human resource

Human capital is usually the backbone of a project (Pardo et al. 2009, p. 31). Human resource management during the implementation of The Seikan Tunnel project was excellent. It is worth noting that the best practices in the management of human capital were put into use. This made the project managers have the best of their time when implementing this project.

The working conditions for the employees for this project were made good. Each one of the employees was made to work under conditions that respect human dignity. Additionally, matters of employee safety were handled properly. This was through ensuring that standards related to safety of employees were adhered to. The procedures regarding the use of tools and machinery were put in a way that protected the employees better.

To make it better, the human resource function ensured that the employees felt appreciated. This was through recognizing exceptional performance during the implementation of this project. The employees were given attractive incentives. This boosted their morale thus increasing the level of output.

  • Accountability

This project was able to be declared full of accountability. The project managers were found to have taken care of the allocated resources. This means that after taking stock of what was allocated to them; auditors were satisfied with the use of all resources that were offered for use during implementation of this project. There were no cases of mass corruption reported as is the case when other major projects are being implemented. Proper records were available for any interested party to go through.

  • Innovation

The Seikan project was one of the projects where innovation is known to have played a major role. This project saw the project managers coming up with new ways of doing things. The processes and equipments used had creative aspects that led to increased efficiency.

User participation in the project

Users of a project are the stakeholders. These are the people who are beneficiaries of a project that is being implemented (Ling et al. 2015, p .45). During the execution of this project, the users had full participation. The project managers ensured that there was freedom for the users to interact with all stages of the project. This was arrived at for the purpose of reducing the negative impacts of criticism as a risk in project implementation. The users had full access to all information regarding the designs and progress of this project.

This brought about wide acceptance. The project managers would listen to the perspectives of the users. This was necessary for the purpose of building on the plan that the project was based on. From the fact that users participated well, the project management became more geared towards completing it. This is because the users became source of assurance that the project was necessary for them.

The users had a huge influence of standards set for the project. It is worth noting that many mega projects end up not fulfilling the expectations of users due to project managers who disregard the standards agreed for the project. This did not happen during execution of this project. The users were keen when looking at the design and other documented standards. This close monitoring put pressure on the project managers to a point of making the implementation of this project follow rules to the letter.

The users were able to succeed in getting the expected standards through arranging meetings. They would discuss deeply about the progress of this project. Each one of the users would give contributions for the benefit of the meeting. The fact that the meetings were consistent made the user participation strong.

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Core capabilities or competencies involved in implementation of the Seikan Tunnel

During the implementation of this project, there were evident core competencies. These competencies are always credited for the success of this project. One of the core competencies is the integration of technology into the project implementation process. Technology is known to increase efficiency in projects (Meyers 2013, p.65). Technology was widely used to drive most of the processes for the project.

Information was managed through the use of the best information handling technological platforms. This made it easy to use and execute the project from an informed perspective. Additionally, technology was integrated into the communication bit during the project. Technological involvement in the communication channels for the project was a major plus for the project.

The second core competence during the implementation of this project was proper project management. It is worth noting that the project managers were quite skillful. This led to proper execution of all aspects of the project.

Another core competence for this project was proper risk management. Risk management is a very important aspect to consider while handling projects (Sridhar 2011, p.63). During the execution of this project, risk management was done efficiently. This led to reduction of negative effects of risks that were identified. Qiao (2007, p. 14) says that proper risk management reduces project hardships.

Another key competence factor during the execution of this project was proper management of human capital. The human resource management function for the project is credited for having done its job properly. All the time that the project was continuing, all matters related to the affairs of the workforce were handled as expected. This reduced unrests and disruptions from the workers for the project. Strazewski (2009, p. 34) says that mitigation of employee related risks is very important since it makes project implementation successful.

Broader issues affecting megaprojects; The Seikan Tunnel in focus

Mega projects are usually faced by several broad issues. Theodore (2014, p. 88) says that broad issues affect projects are usually caused by the fact that numerous processes and operations take place. Generally, the complexity of mega projects brings rise to issues that have to be managed. These broad issues include;

  1. Risks

Risk is always present in all projects, whether minor or complex. However, the risk level in major projects is much higher. This calls for a very solid risk management function for complex projects. During the execution of this project, several risks were identified. One of the identified risks was about the project design. There was fear that the design would show some weaknesses towards the end of the project life cycle.

This made the project managers become apprehensive throughout the project. To mitigate this risk, the project handlers ensured that the designers of the project kept confirming the reliability of the project design. Additionally, the project managers made several consultations with experts in design to try and get assurance. At the end of the project, only immaterial alterations were made to make the project design a success.

The other risk that was identified by the risk function for this project was high labor turnover. Generally, complex projects are known to be full of work. Many a times workers tend to burn out or opt out due to poor conditions at work (Suriyamathi et al. 2013, p. 54). This identified risk did not affect the project since proper human resource management was done during the project.

To do away with this risk, all project employees for the project were treated as per the international labor standards. This was through ensuring that remuneration to the employees was as per the expected standards. Additionally, payments to the employees were disbursed on time to avoid workforce unrest. To ensure that the risk does not disrupt the project continuity, the project managers ensured that the conditions at work were up to the expected standards. This made employees work properly thus avoiding negative effects of high employee turnover risk.

  1. Decision making

For projects to be completed successfully, decision making should be done in an efficient way. This is because decisions that are made determine the level of achievement to be expected. Proper decision making in projects leads to continuity of projects in proper ways. On the other hand, if decision making for a project is poor, negative occurrences will affect the plan towards successful completion. For complex projects, decision making is usually very difficult.

During execution of this project, several challenges occurred during decision making. It is worth noting that complex projects call for many decision makers. Therefore, the process of decision making becomes very complicated and slow. The decision making process for this project was very hard since managers were many. The many decision makers took long time for decision making. This is because they had to consult each other. Opposed suggestions by some of the decision makers took more time for the purpose of discussions and explanations as to why certain opinions could not be upheld.

  1. Cultural

Cultural differences usually affect mega projects. This is because the many employees are required for complex projects are drawn from diverse cultures. This brings about cultural diversity within the workforce in a project. This was the case during the lifecycle of this project. The project managers brought in individuals from various cultures. This was caused by many reasons, need for expertise being one. With cultural differences, attitudes towards tasks approaches were different. This created some sort of sluggish participation from laborers. As a result, the project time was consumed in the process of harmonizing the cultures.

  1. Labor

Labor management is the other broad issue that affects mega projects. This happens to be a very sensitive issue since complex projects are usually labor intensive. Therefore, the project handlers should always ensure that labor matters are managed in a way that does create stability of the workforce. During the life cycle of this project, the workforce was well handled. This means that project was able to continue without alarming cases of workforce dissatisfaction. The minor cases of complains that were forwarded were amicably settled.

  1. Political

The politics prevailing in areas where complex projects are being held affects the continuity. It happens that in areas where there is political instability projects tend to stall or become abandoned completely. During the lifecycle of this project, the political waters were cool. This gave this project an opportunity to continue without disruptions. It is worth noting that the political leaders within the geographical location of the project did not want to interfere with the project. The instances that saw the political leaders enquire about the project were all friendly. This gave motivation to the managers of the project thus pushing for completion.

  1. Criticism

It is common practice for people to criticize projects. It is a global thing for people to spoil the image of mega projects (Riley 2013, p. 91). This is always through trashing those projects on basis of prioritization. During the execution of this project, criticism was identified as one of the risks.

The criticism directed towards this mega project was based on the fact that the amount of money used could be used for other projects that are better in terms of meeting the needs of the common citizens. To ensure that this did not affect this mega project, the project managers ensured that proper public participation was done. The project managers created a system that made all stakeholders aware of what the project was all about.

Conclusion

Management of complex projects is known to be quite demanding. Therefore, the people in charge of such kind of projects should ensure that proper planning is done. The goal of the project should be the guiding tool for all processes. To make it better, the life cycle of mega projects should be monitored to ensure that it does not get disrupted. The stakeholders should be managed well to ensure that the project continues with understanding. All challenges should be handled with sobriety and efficiency. It is worth noting that good practices should be priority when drawing the strategic plan for complex projects.

Risk management during project implementation should be done in a good way. This calls for the need to have a reliable risk function during the life cycle of a mega project. All risks should be identified and mitigated properly to ensure that the project does not become disrupted.

References

1.      Ali, M et al. 2008, Developing environmental impact statement (EIS) guidelines for the management of environmental quality at major projects in Kuwait, Retrieved from http://search.proquest.com/business/docview/204618562/13EB17FBF311442APQ/2?accountid=45049, Last accessed 28th April 2016.

2.      Huang, T 2010, Dynamic Quality Management in Complex Construction Projects, Retrieved from http://search.proquest.com/business/docview/733014523/13EB17FBF311442APQ/1?accountid=45049, Last accessed 28th April 2016

  1. Ling, F et al. 2015, Effect of adoption of relational contracting practices on relationship quality in public projects in Singapore, Retrieved from http://search.proquest.com/business/docview/1660895554/13EB17FBF311442APQ/15?accountid=45049, Last accessed 28th April 2016.

4.      Loo, R 2009, A multi-level causal model for best practices in project management, Retrieved from http://search.proquest.com/business/docview/217359658/2F4FAD9DE7DB443DPQ/8?accountid=45049, Last accessed 28th April 2016.

5.      Meyers, GR 2013, Investigating New Tools, Technologies for the Permian Basin. Retrieved from http://search.proquest.com/business/docview/1540778404/53066480327B4D1DPQ/3?accountid=45049, Last accessed 28th April 2016.

6.      Pardo, IS et al. 2009, Looking into the black-box: analysis of the effectiveness of human resources strategy*, Retrieved from http://search.proquest.com/business/docview/225146340/1B854395A7974BD1PQ/16?accountid=45049, Last accessed 28th April 2016.

8.      Riley, JM 2013, Understanding the antecedent competencies of organizational risk management capabilities, Retrieved from, http://search.proquest.com/business/docview/1437003886/B69B4A30BC934996PQ/19?accountid=45049, Last accessed 28th April 2016.

10.  Sridhar, V 2011, The practice of risk management in outsourcing and its impacts: An empirical investigation, Retrieved from http://search.proquest.com/business/docview/916760095/B69B4A30BC934996PQ/7?accountid=45049, Last accessed 28th April 2016.

11.  Strazewski, L 2009, Benefits/Financial Products Fit Risk Management Strategy, Retrieved from http://search.proquest.com/docview/200367306/88A8C3FB34ED4BF3PQ/2?accountid=45049, Last accessed 28th April 2016

  1. Sullivan, L 2001, Enterprise wide: Building a Risk Management program from the ground up, Retrieved from http://search.proquest.com/docview/227018296/A25516E0136242C6PQ/2?accountid=45049, Last accessed 28th April 2016.
  2. Suriyamathi, S, Velavan, M & Radhiga, TD 2013, Importance of Leadership in Innovations of HR Practices. Retrieved from http://search.proquest.com/docview/1470793027/5AD72EE4297469CPQ/6?accountid=45049, Last accessed 28th April 2016.
  3. Theodore, J 2014, the Importance of Imbedding the Concept of Continuous Development in The Formulation Of Global Strategies. Retrieved from http://search.proquest.com/docview/1516952897/5524C7862854D96PQ/8?accountid=45049, Last accessed 28th April 2016.

15.  Weissenberger, M, & Kotch, DJ 2007, Importance of industrial services and service innovations, Retrieved from http://search.proquest.com/docview/233255106/5AD72EE4297469CPQ/4?accountid=45049, Last accessed 28th April 2016.

16.  Windapo, AO & Goulding, J 2013, Value-based perspectives of stakeholders’ building requirements in low cost and government subsidised housing projects in South Africa, Retrieved from http://search.proquest.com/business/docview/1432234099/1B854395A7974BD1PQ/12?accountid=45049, Last accessed 28th April 2016.

17.  Zeng, Sx et al. 2009, Managing information flows for quality improvement of projects, Retrieved from http://search.proquest.com/business/docview/208736728/13EB17FBF311442APQ/18?accountid=45049, Last accessed 28th April 2016.

18.  Zolkos, R 2012, Strategic outlook key to successful risk management: Organizational goals must be considered at program’s outset, Retrieved from http://search.proquest.com/business/docview/1009713401/B69B4A30BC934996PQ/5?accountid=45049, Last accessed 28th April 2016.

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Project Manager Roles in an Organization

Project Manager Roles in an Organization
Project Manager Roles in an Organization

Project Manager Roles in an Organization

  1. What is a “single-line-of-command” organization? Why would employees used to such an organizational structure find it difficult to work with more than one boss at a time, as they would if they were reporting to both a project manager and a line manager at the same time?
  1. Jim is a project manager for a project that requires twelve months to be completed. During the 7th, 8th, and 9th months, he needs two team members with special qualifications. The functional manager associated with these team members has promised that these people will be available two months before they are needed on the project. If Jim doesn’t assign them to his project at that time, they will be assigned elsewhere and Jim will have to make do with whoever is available later on. What should Jim do? Make any assumptions necessary to support your answer.
  1. Imagine that you are a project engineer on a high-technology project. As your project begins to wind down, the project manager asks you to write a paper about the project so he can present it at a technical meeting. His name goes first on the paper credits. Should this be a part of your job? How do you feel about this situation?
  1. As a project nears completion, the project manager may find that the functional people on the project are more interested in finding a new role for themselves than in giving their best effort to the current task. How does this relate to Maslow’s hierarchy of needs, and what should the project manager do?
  1. Your company just hired a senior manager with two masters degrees in engineering. This engineer is quite competent, and has worked well as a loner for the past twenty years. He has just been assigned to the Research and Development phase of your project. You, as project manager, must insure that he works well as a team member with other functional employees, and not as a loner. How will you accomplish this? If this engineer persists in wanting to be a loner, should you fire him?
  1. Last month, Alice completed an assignment as chief project engineer on Project X. It was a great assignment; Alice and all other project personnel were kept fully informed by the project manager about all project activities. Alice is now working for a new project manager who tells his staff only what they have to know in order to get their job done. What can Alice do about this situation? Can this be a good situation? Why or why not? Which management style would you prefer?
  1. Is it possible for a project manager to improve his time management skills by understanding what motivates his team? Why or why not?

Project Manager Roles in an Organization Sample Answer

Question one

A single-line-of-command organization is whereby individual report addresses their concerns   by addressing them to a senior manager of a particular section or department. The manager in such organization does as directed by the supervisor. Employees used to such structures find it difficult to work with more bosses at a time because; decisions are delayed, as it requires more time and negotiations.

Question two

In this situation, Jim should negotiate with the functional team manager to make the two-team members available at the right time and if the negotiation fails, then he will have to work with the available members later. This is because, hurrying the project to solicit the service of the team members will be a risk to the project as it may not be handled well. Therefore, I would rather he use other members who will also be having skills in the areas to handle the tasks in the 7th or 8th or 9th month.

Question three

 I do believe that the name of the project manager should not be the first on the paper credit and as well; the project engineer should not be the one to write the paper but rather should help him with a draft. It is the responsibility of the project manager to write a final paper that should be presented to the technical committee.

Question four

This relates to Maslow’s hierarchy of need because, they are worried about their physiological needs such as food and clothing. They must therefore look for another alternative that will enable them achieve this. They are also insecure as the job is ending. The project manager should therefore, assures them that they are secure and that there will be another project to do. They should also be well paid o be able to cater for their needs even if they are not going to have another immediate project.

Question five

To ensure that the engineer works well with other members, as a project manager, I will make him through negotiation to understand the policy of an organization at his time of employment. He will also be told the importance of working as teamwork. In case the engineer persists in working as a loner, I will not fire him immediately but will try to talk to him and as well assess his performance. If he performs well without affecting the functions and operations of the team and the organization, he will not be fired, but given more time to learn to work with others.

Question six

In this situation, Alice should just comply with this situation. To me, it is not a bad situation because, the most important thing is to handle the project and finish it as required. Other things concerning the project do not hold water. I would therefore, prefer this style of management because, it is straight to the point and will ensure that projects are finished in the right time. 

Question seven

It is possible for a project manager to improve his time management skills. Time is a valuable resources and it requires proper planning. A good manager must have these skills to be able to handle his or her responsibilities well (Pothukuchi, 2008). A project manager that has time management skills will have time for his employees or team members and this will allow him o understand their needs and therefore be in a position to devise various strategies to motivate them. Therefore, it is good skill and managers ought to have it.

Reference

Pothukuchi, B. (2008). Personality-Time Management Skills Relationship. ICFAI Journal of Organizational Behavior, 7(1): 57-61.

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Technical evaluation of a project

Technical evaluation of a project
Technical evaluation of a project

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Technical evaluation of a project 

Managing the design and construction of an electrical power station for a community of 20,000 resident

Abstract

In any project, it is imperative that proper planning   is done before designing and construction of an electrical power station.  The stakeholders in this project are diverse and all of them should participate in the whole project in order to ensure that it is given support. This project is based on three fundamental factors that need to be considered in evaluating the authenticity and appropriateness of a project.

These include technical, economic and environment. It is imperative that evaluations on these is conducted and even put into consideration in the designing and construction of this project to ensure that it is successful. The literature review covered demonstrated the importance of ensuring that these three issues are well investigated in designing and construction of the power station. The research design used to solicit views included use of questionnaires and interviews that enabled success of the project. 

Outline

  1. Introduction
  2. Problem identification
  3. Objectives and aims
  4. Literature Review
  5. Economic evaluation
  6. Technical evaluation
  7. Environmental evaluation 
  8. Research Methodology
  9. Assumptions and limitations
  10. Results
  11. Findings
  12. Potential for future direction 
  13. Conclusion
  14. Reference list 

Managing the design and construction of an electrical power station for a community of 20,000 resident

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Introduction 

Before designing and carrying out any construction work, it is imperative that proper planning is done to ensure that the project meets the objective set.  Designing and construction of an electrical power station for a community of 20,000 residents should be carried out with precision and proper planning.  In such project, the three major factors that need to be considered include technical, economic and environmental factors. These three are crucial in determining whether the project will be set up and be able to provide or meet the intended goals and objectives. This project report is analyzed in four major areas, introduction, literature review, research methodology, and the results of the study.

Technical evaluation of a project 

Problem identification

Designing and construction of an electrical power station not only requires enough skills, and expertise of the constructors but it requires consideration of various factors.  For the project to be viable there is need to ensure that factors such as economic, technical and environmental are factored in the whole process of designing to ensure that the project is able to meet the set standards.

Many projects may be viable in one area but not in another area. For instance,  setting up of an electrical power station in one location may  improve the economic  status of the people in the area but due to environmental factors such as  poor weather conditions the project may not be viable. It is therefore important that all three factors, which interrelate, are considered to ensure viability of a project. Many projects fail to achieve their objectives and goals because of the lack of proper management in term of design and construction hence the need for more research to find out the best ways to alleviate such problems.

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Objectives and aims

The objectives and the aims that the project seeks to achieve include:

  1. To investigate on the need for considering economic factors in designing and actual construction of a an electrical power station that supports 20,000 residents
  2. To establish the significance of considering technical capabilities in the construction of electrical power station
  3. To investigate why environmental factors are important factor in designing and constructing of an electric power station
  4. To find out appropriate ways to ensure that an electrical power station is designed and constructed to meet the objectives and goals of the residents

Literature review

Under this review, various, issues will be discussed relating to the management and construction of the electrical power station that is able to serve a population of 20,000 residents. The variables to guide the literature review include; technical, economic, and environmental factors when designing and constructing an electrical power station. Evaluation of a project on these three attributes makes the designers to incorporate all of them to ensure that the project upon its completion satisfies all the stakeholders concerned.

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Economic evaluation

In these modern days, availability of electricity is one of the preconditions of ensuring that society functions and thrives forward.  Electricity is used in various areas, including, household use, running of information and communication technologies, and even in industries.  

According to Wagner & Antonio (2012),availability of electricity is important in facilitating industrialization, which provides employment to many people (p. 20). Electricity also stirs development in a given area because it contributes to the sprouting up of informal sectors such as blacksmiths that plays a pivotal role in the general economy of the country.

            Various forms of energy provide electricity to the locals and industries. These electricity may be generated from, water, wave and tidal, wind, solar, geothermal, and nuclear power energy just to name but a few. These different forms of energy are then converted to electricity at a central location from where distribution is done.  The cost of every kind of designing and constructing the station varies due to the logistics involved.

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According to El-Kordy et al. (2002), it is important to evaluate the economics of energy systems basing on the four forms of cost; maintenance costs, capital costs, fuel costs and external cost (p. 319).  In deigning the electricity power station, the cost of maintenance should be considered to ensure that the project is sustained over a considerable duration of time. This cost includes repair, human capital to ensure that the station is well manned to protect it from external distractions and costs that are related to proper functioning of the station.

Capital cost is the initial costs that require the station to be set up in a given area. The company or the contractors should put in priority or budget sufficiently for the start up costs to ensure that the project is initiated and completed within the required period. External costs involve any other costs incurred during the process of setting up and operating the electricity power station.

Electrical power station 

            It is also important that economic parameters such as inflation and escalation of rates, discounts and taxes be considered when designing and constructing power station for the 20,000 residents.  Inflation may affect the progressive of a project causing a stall due to lose of value of the funds that reserved for the project. It is therefore important that such considerations are put in the mind of the designers especially if the project is going to take long time before its completion. Therefore, future sums of money should be discounted based on the inherent risks of future events not turning out to be as planned (Zati & Toosi, 2011, p. 22) 

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.           It is also important that electrical energy generation costs are calculated, plus all other installments of the power plant to be known during the designing of a power station to serve a certain population.  The cash flow of such project includes expenditures in relation to acquisition of land, fuel and maintenance costs and the construction costs.  

This costs should be broken into units to enable the constructors know the estimated amount of money required. Some of the cost analysis tools that can be used include cost benefit ratio, total-life cycle cost, levelized electricity generation cost, net present cost and unitary present average cost among many others (Gokcek & Genc, 2009, p. 2732)  

            When it comes to economic evaluation, it is also important to consider the economic impacts that project will have on the residents or the consumers of the electricity. Economic benefits should surpass the negative aspects that the project brings to the users or the clients (Wagner & Antonio, 2012, p. 22).  When the project is designed, it should be able to improve the living standards of the people by enabling them to develop and grow in terms of their level of developments.

The benefits associated with setting up an electricity station in a given locality or a community should be to benefit the locals economically. Electricity is a cheap source of energy compared to other sources of energy at home and even in industries. Furthermore, the station should be able to serve all the residents with adequate supply of energy to enable them carry out their duties well. 

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Technical evaluation of a project 

            Therefore, in designing the project, all these issues need to be factored to ensure that the residents as well as the company benefits from the station. The company will accrue some benefits from the charges they levy on the consumption of power, but they should also provide enough power to serve the entire target population.

Technical evaluation of a project 

Electrical power station 

            Technical evaluation of a project ensures that all the necessary details that can ensure successful completion of the project are put into consideration. In technical evaluation, it is important for the designers and the constructing company to take note of all the issues that surrounds the project (Zati & Toosi, 2011, p. 23) 

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            Technical evaluation encompasses many areas of considerations in the designing and construction of an electricity power station. The team should evaluate its capability and expertise to know if they have the required skills and competence to finish the project successful. This is a very important factor in the project. The availability of work force to carry out the project is vital.

            Technical evaluation should also be carried out to determine the durability of the equipments and the long life of the assets, their performance and price stability to find out whether the project is sustainable or no (Zati & Toosi, 2011, p. 22). Other technical evaluation include, finding out whether the area has enough rivers or dams to be exploited for power production during emergencies. 

            Technical evaluation is therefore important in ensuring the success of a project of this nature. The costs and logistics of setting up and constructing an electricity power station   must be well defined and known to enable the construction team to finish the project successful.  For the project to be sustainable, maintenance costs should be provided to ensure that in case of any problem immediate action is taken to remedy the solution. For instance, vandalism of electric equipments should be controlled through installation of CCTV to ensure that those involved are pursued and persecuted (Gokcek & Genc, 2009, p 2732).

Technical evaluation of a project 

Environmental evaluation

According to Zati & Toosi (2011) environmental evaluation or assessment, if paramount before any project is undertaken (p. 24). This is not exclusion to the electricity power station. The station, even though, is important to the survival of the people in the area, it is necessary for the effects it has to the environment be accessed. The location of the station will have to be assessed before construction work begins to ensure that there are no future environmental effects to the resident (El-Kordy et al. 2002, p. 318)  

Some of the environmental concerns associated with projects of setting up and constructing an electricity power station includes, effects of the exposed cable to the people in the area, power shocks and outages, rugged landscape that poses threats to the stability of the electricity lines and re-channeling or overuse of water depriving the local residents water to carryout their farming activities. These are environmental concerns that should be investigated and assessed to determine the magnitude or impact that they have on the residents before constructing the power station.

Summary of the Literature Review

            Various stakeholders need to be consulted in the designing and construction of an electricity power station. These stakeholders include the government, the construction company, the residents and any other important party. This ensures that consensus is reached as well as it ensures that all the logistics concerning project are put into consideration.  The three factors; technical, economic and environmental are important and should be scrutinized to allow the successful completion of any project.

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Research Methodology

            Research methodology is the procedure and processes that the researcher uses to gather information, analyze and present data.  The nature of the project required use of survey descriptive method.  This method allowed the study to gather information through questionnaires, interviews and observations from the relevant stakeholders that the project affected.

The residents or the population where the project was to be set up were sampled through simple random sampling method to give a sample size that was representational of the entire population. 100 respondents responded to the questionnaires and interview questions.

The research design was descriptive survey method, which allowed questionnaires and interviews that sort to know how the residents viewed the project in terms of economic, technical and environment implications. This method was used because it can be repeated for verification. The information gathered was then analyzed and presented in the pie charts, graphs and table for ease of interpretations. 

Assumptions and limitations

            During the study, it was assumed that the respondents came for the areas where the project was to be set. The information that was collected was taken with a lot of confidentially and was assumed to be true and to the best knowledge of the respondents

             During the study, there were a number of limitations that the researcher faced. One of the limitations was inadequate time to carryout an extensive research on how the residents felt about the setting up of the power station in the area. Furthermore, the fact that, the population was very large, the sample size was not enough to elicit the views of the larger population hence a limitation to the study.

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Technical evaluation of a project 

Results

            The study findings helped the researcher to make decisive decision on the appropriate ways to design and constructing the electricity power station in the area. Results of the study were presented in the form of tables, and graphs.

Findings

            From the study, it was revealed that, economic factors were important in designing and construction of the electricity power station in the area.  Most respondents said that, the establishment of the station was welcome because it could spur economic growth in the area. It was also going to improve their living standards since they were going to use the power to do their domestic chores and other works at a low rate.

 Yes No Percentage 
Important of evaluating economic factors8020100
Percentage 8020100

Table 1.1: Economic evaluation

Figure 1.1: Economic Evaluation            

The table illustrates the importance of evaluating the economic factors before designing and constructing an electrical power station. Form the table, 80 percentage agreed that evaluation was important while 20 percent were of the contrary opinion.

            Furthermore, the findings showed that, those projects that were designed and constructed after enough economic evaluation were carried out were sustainable and provided economies of scale to both the resident and the company.  Most of the respondents supported the notion that, economic evaluation was essential because it was through such information that sufficient data on the viability of the project was to be determined.

            When it comes to technical evaluation, the study finding showed that indeed it was paramount for an assessment to be carried out during designing and construction of the power station to know the logistic and the issues that pertained to the projects.

Technical evaluation ensured that the project was completed at the time set because it allowed the project designers and constructors to understand the issues they needed to handle first before embarking on others.

            On environmental evaluation, many of the respondents said that, this was a very important area to consider because, their health and environment was important than anything that could put it at stake. However, they were in support of the project because, it had minimal effect on the environment.

Therefore, by gathering this information, and getting the views of the residents, the designers and constructors were at liberty to begin their project. This is because they got support from the stakeholders and from their visibility and surveys, the area was suitable since it could impact on economic, and had less implications on the environment. 

A table showing the total cost of setting up an electrical power station 

Item/Material Quantity Price per unity Total Price in US dollars
Survey   2000
Land2 acres 2000040000 
Equipments   100000
 Human capital 10050050000
Maintenance costs   100000
    
    

Table 1.2: Cost of setting up a power station

Instruments that is required to support the residents and the costs

Instruments                            Number Total cost  in US dollars
Transformers            3600000
Lightning protectors 50100000
Vehicles4400000
Cables100metre500000
Reading Metres 1000200000

Table 1.3: Instruments required 

Figure 1.3: Instruments required

Cost of setting up the power station 

Section of the stationCost in US Dollars
Walls200000
Signs15000
Foundation200000
Fences50000
Alarm system 10000
Total 475000

Table 1.4: Cost of setting up the power station

Figure 1.4: Cost of setting up the power station

The total amount of power that will be consumed

The station expects to produce 40kWhz of electricity in the year that will be enough for every homestead and the local industries in the area.

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Potential for future direction

            From the study, it is important for any individual or organization to carryout a survey on their project before designing and carrying out the project.  Not all projects are suitable in certain areas and therefore, these factors should be put into consideration. Therefore,   further investigation need to be carried out on how communities influence the design and construction of a project.

Conclusion

            It is imperative for any company or individual to carryout a survey before designing any carrying out a project. Planning is vital as it allows an individual to assess the benefits and the costs of the project. This allows for proper planning and implementation of the project.

                                                                    References                         

El-Kordy, M. N., Badr, M. A., Abed, K. A., & Ibrahim, S, 2002, “Economical evaluation of Electricity generation considering externalities.” Renewable Energy, 25(2), 317-328.

Gokçek, M., & Genç, M. S, 2009, “Evaluation of electricity generation and energy cost of wind energy conversion systems (WECSs) in Central Turkey.” Applied Energy,    86(12), 2731-2739.

Wagner, S. & Antonio, J. 2012. “Optimization model for economic evaluation of wind farms- How to optimize a wind energy project economically and technically.”International Journal of energy economics and policy, 2(1):10-20.

Zati, A, & Toosi, E, 2011, “Technical evaluation-economic execution of hydroelectric project at micro scale.”America journal of scientific research, Issue. 16, pp. 20-25.

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