Project Budget

Dsicuss about the Multi-Mode Resource And Constrained Multi-Project.

The project is undertaken in order to repair the fuel tanks of the storage capacity in Western Australia. This is essential as 30% of the company’s unleaded petrol is bordering on collapse due to the age and condition of the tanks. The Condition of the tanks is over 50 years old with a complex and outdated design. Therefore renovation of the tanks is essential and the,  budget has been proposed for implementation of the project (Maravas & Pantouvakis,  2012). The project budget is represented in the following table.

Task Name	Cost
Renovation of the oil tanker storage Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	$867,800.00
Project Starts	$0.00
Requirement Analysis	$1,920.00
Meeting with Client for discussion on repairing start date	$640.00
Knowing basic Requirements of the client in repairing the tanks	$1,280.00
Planning	$4,800.00
Understanding the Technical Requirements and the resource requirements	$1,280.00
Budget calculation for the resources	$2,240.00
Documenting the Requirements	$640.00
Drafting the documents for Client’s Approval	$640.00
Implementation/ Renovation of the Tanks	$858,680.00
Repairing works on Tank 1	$267,640.00
Working on 4 Steel Patch	$30,000.00
Working 4 Steel anchor on top of the tank	$35,000.00
Cleaning the tank	$600.00
Repainting the Tank	$202,040.00
Repairing Tank 2	$274,240.00
working on 7 Steel Patch	$35,800.00
Working on 4 Steel anchor	$35,800.00
Cleaning the tank	$600.00
Repainting the Tank	$202,040.00
Repairing Tank 3	$316,800.00
Working on 6 steel patch	$22,000.00
Working on 4 Steel anchor on top of the tank	$37,000.00
Replacing the main water supply valve of the tank	$52,000.00
Cleaning the tank	$2,400.00
Repainting the Tank	$203,400.00
Project Handover	$2,400.00
Documents Handover	$800.00
Documents Archive	$0.00
Payment completion	$960.00
Resource Release	$640.00
Client Feedback	$0.00
Client Sign off	$0.00
Project Ends	$0.00

Table 1: The Project Budget

(Source: Created by author using MS Project)

The budget is prepared with the help of activity based budgeting. This budgeting uses the volume of a particular activity in developing a project budget. Apart from this, the difficulty in accessing the tanks is considered while estimating this budget.

The assumptions made while preparing this budget are as follows-

1. The budget includes the cost of materials and labor cost.
2. The rate of the wage of the workers will remain unchanged throughout the project implementation phase.
3. The schedule will not hamper the normal operation of the tank
4. The budget estimated will be sufficient to implement the project.
5. The materials needed will be easily accessible during the project implementation (Khodakarami & Abdi, 2014.).

It is estimated that it will take at least 4 months to complete the repairing works of three tanks. The project is taking more time than expected as the accessing the tanks simultaneously will be difficult. In addition to that, the tanks cannot be accessed during its filling time. The schedule and the major milestone of the project is represented in the table below (Be?ikci, Bilge & Ulusoy, 2015)-

Task Name	Duration	Start	Finish
Renovation of the oil tanker storage	110.38 days	Mon 02-04-18	Mon 03-09-18
Project Starts	0 days	Mon 02-04-18	Mon 02-04-18
Requirement Analysis	3 days	Mon 02-04-18	Wed 04-04-18
Meeting with Client for discussion on repairing start date	1 day	Mon 02-04-18	Mon 02-04-18
Knowing basic Requirements of the client in repairing the tanks	2 days	Tue 03-04-18	Wed 04-04-18
M1: Completion of Requirements Gathering	0 days	Wed 04-04-18	Wed 04-04-18
Planning	6 days	Thu 05-04-18	Thu 12-04-18
Understanding the Technical Requirements and the resource requirements	2 days	Thu 05-04-18	Fri 06-04-18
Budget calculation for the resources	2 days	Mon 09-04-18	Tue 10-04-18
Documenting the Requirements	1 day	Wed 11-04-18	Wed 11-04-18
Drafting the documents for Client’s Approval	1 day	Thu 12-04-18	Thu 12-04-18
M2: End of Project Planning	0 days	Thu 12-04-18	Thu 12-04-18
Implementation/ Renovation of the Tanks	91 days	Fri 13-04-18	Fri 17-08-18
Repairing works on Tank 1	28 days	Fri 13-04-18	Tue 22-05-18
Working on 4 Steel Patch	2 days	Fri 13-04-18	Mon 16-04-18
Working 4 Steel anchor on top of the tank	2 days	Tue 17-04-18	Wed 18-04-18
Cleaning the tank	1 day	Thu 19-04-18	Fri 04-05-18
Repainting the Tank	3 days	Mon 07-05-18	Tue 22-05-18
M3: Tank 1 Repaired	0 days	Tue 22-05-18	Tue 22-05-18
Repairing Tank 2	28 days	Wed 23-05-18	Fri 29-06-18
working on 7 Steel Patch	2 days	Wed 23-05-18	Thu 24-05-18
Working on 4 Steel anchor	2 days	Fri 25-05-18	Mon 28-05-18
Cleaning the tank	1 day	Tue 29-05-18	Wed 13-06-18
Repainting the Tank	3 days	Thu 14-06-18	Fri 29-06-18
M4: Tank 2 Repaired	0 days	Fri 29-06-18	Fri 29-06-18
Repairing Tank 3	35 days	Mon 02-07-18	Fri 17-08-18
Working on 6 steel patch	5 days	Mon 02-07-18	Fri 06-07-18
Working on 4 Steel anchor on top of the tank	5 days	Mon 09-07-18	Fri 13-07-18
Replacing the main water supply valve of the tank	5 days	Mon 16-07-18	Fri 20-07-18
Cleaning the tank	4 days	Mon 23-07-18	Fri 03-08-18
Repainting the Tank	5 days	Mon 06-08-18	Fri 17-08-18
M5:Tank 3 Repaired	0 days	Fri 17-08-18	Fri 17-08-18
Project Handover	10.38 days	Mon 20-08-18	Mon 03-09-18
Documents Handover	10 hrs	Mon 20-08-18	Tue 21-08-18
Documents Archive	5 hrs	Tue 21-08-18	Tue 21-08-18
Payment completion	12 hrs	Tue 21-08-18	Thu 23-08-18
Resource Release	1 day	Thu 23-08-18	Fri 24-08-18
Client Feedback	5 days	Fri 24-08-18	Fri 31-08-18
Client Sign off	1 day	Fri 31-08-18	Mon 03-09-18
M6: Project Handover Successful	0 days	Mon 03-09-18	Mon 03-09-18
Project Ends	0 days	Mon 03-09-18	Mon 03-09-18

Table 2: The Project schedule

(Source: Generated by author using MS Project)

The Gant Chart and work breakdown structure of the project schedule is represented below –

Figure 1: Representing the Gantt Chart of the project

(Source: Generated by author using MS Project)

Figure 2: the work breakdown Structure of the Project

(Source: Created by author using MS schedule Pro)

The different tools and techniques used in developing the project structure include Gantt chart and work break down structure. The project will be following a waterfall approach since simultaneous working on all the three tanks will be practically impossible (Brioso, 2015). The merit of choosing waterfall approach is that there will be no scope creep and the project will be following a sequential approach (Balaji & Murugaiyan, 2012). This is one of the main merits of waterfall project management techniques over the other similar approaches (Burke, 2013). The organization is paying a heavy fine due to the oil leakage that is causing a considerable amount of environmental damage. Therefore, it is essential for the project team to complete the project within the set schedule (Kim, Kang & Hwang 2012). The schedule prepared for this project is expected to remain unchanged subjected to the fact that no new requirements are identified in the later stages of project implementation.

Project Schedule

The resources involved in the project are listed below (Artigues, Leus & Nobibon, 2013)-

1. Workers and labors
2. Materials (Steel patches, Anchors, supply valve, paint)
3. Cranes
4. Project Management Team

The resources required for implementing the different tasks associated with the project is represented in the table below (Tavana, Abtahi & Khalili-Damghani, 2014)-

Task Name	Resource Names
Renovation of the oil tanker storage
Project Starts	Project Manager
Requirement Analysis
Meeting with Client for discussion on repairing start date	Project Manager
Knowing basic Requirements of the client in repairing the tanks	Project Manager
Planning
Understanding the Technical Requirements and the resource requirements	Project Manager
Budget calculation for the resources	Business Analyst, Project Manager
Documenting the Requirements	Project Manager
Drafting the documents for Client’s Approval	Project Manager
M2: End of Project Planning
Implementation/ Renovation of the Tanks
Repairing works on Tank 1
Working on 4 Steel Patch	Steel Patch 2m2[1],Rented large crane, Rented small crane
Working 4 Steel anchor on top of the tank	Steel anchors T1[1]
Cleaning the tank	Cleaning Staff, Rented large crane, Rented small crane, Workers
Repainting the Tank	Rented large crane, Paint[1], Painter, Rented small crane, Workers
Repairing Tank 2
working on 7 Steel Patch	Steel Patch 3m2[1],Workers, Rented large crane, Rented small crane
Working on 4 Steel anchor	Steel anchors T2[1],Workers
Cleaning the tank	Cleaning Staff, Rented large crane, Rented small crane, Workers
Repainting the Tank	Paint[1],Painter, Rented large crane, Rented small crane, Workers
Repairing Tank 3
Working on 6 steel patch	Steel Patch1.5m2[1],Workers, Rented large crane, Rented small crane
Working on 4 Steel anchor on top of the tank	Steel anchors T3[1],Workers, Rented large crane, Rented small crane
Replacing the main water supply valve of the tank	Supply Valve[1],Workers
Cleaning the tank	Cleaning Staff, Rented large crane, Rented small crane, Workers
Repainting the Tank	Paint[1],Painter, Rented large crane, Rented small crane, Workers
M5:Tank 3 Repaired
Project Handover
Documents Handover	Project Manager
Documents Archive	Archieve
Payment completion	Project Manager
Resource Release	Project Manager
Client Feedback
Client Sign off
Project Ends

Table 3: The resources used for each task

The details of the resources along with their standard rate of payment is represented in the following table-

Resource Name	Type	Max. Units	Std. Rate
Project Manager	Work	100%	$80.00/hr
Steel Patch 2m2	Material		$30,000.00
Steel Patch 3m2	Material		$35,000.00
Steel Patch1.5m2	Material		$20,000.00
Steel anchors T1	Material		$35,000.00
Steel anchors T2	Material		$35,000.00
Steel anchors T3	Material		$35,000.00
Supply Valve	Material		$50,000.00
Workers	Work	50,000%	$50.00/hr
Paint	Material		$200,000.00
Cleaning Staff	Work	30,000%	$25.00/hr
Painter	Work	25,000%	$35.00/hr
Archieve	Cost
Business Analyst	Work	100%	$60.00/hr
Rented large crane	Cost
Rented small crane	Cost

Table 4: Representing the Resources details

The major resources stress points include availability of the materials and the presence of the workers during the project implementation stage. Since the tanks will remain accessible only for a limited time, availability of the workers in that time is a major stress point associated with the project. This project is particularly complex and it is the responsibility of the project manager to identify and manage the critical stress points of the resources, in this case it is the availability of the materials and the workers (Martinelli & Milosevic, 2016).  Another major resourcing stress point is choice of workers. Since the geographical location and shape of the site makes it difficult to work on it (Kogan et al., 2017). Therefore, properly skilled workers are needed to be chosen for the project so that they can work on the tank in any condition.

A contingency approach technique is chosen for resource estimation in the project (Kerzner & Kerzner, 2017). The use of contingency approach is valid in this case as it deals with the funding of the resources based on the business objectives. In this approach, the less important resources can be sacrificed as well if it does not fit the budget (Wang et al., 2014).

One of the major tools of developing a proper budget is developing a proper project schedule and the project plan. If the project plan is accurate, the budget will be accurate as well. In this project, a resource manager is appointed who is responsible for identifying the resource requirements of the project (Navaz et al., 2013). However, the project budget and the resource estimation is done according to the project deliverable, it is expected that no changes in the resources will be required for successful project implementation.

References

Artigues, C., Leus, R., & Nobibon, F. T. 2013. Robust optimization for resource-constrained project scheduling with uncertain activity durations. Flexible Services and Manufacturing Journal, 25(1-2), 175-205.

Balaji, S., & Murugaiyan, M. S. 2012. Waterfall vs. V-Model vs. Agile: A comparative study on SDLC. International Journal of Information Technology and Business Management, 2(1), 26-30.

Be?ikci, U., Bilge, Ü., & Ulusoy, G. 2015. Multi-mode resource constrained multi-project scheduling and resource portfolio problem. European Journal of Operational Research, 240(1), 22-31.

Brioso, X. 2015. Integrating ISO 21500 guidance on project management, lean construction and PMBOK. Procedia Engineering, 123, 76-84.

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Khodakarami, V., & Abdi, A. 2014. Project cost risk analysis: A Bayesian networks approach for modeling dependencies between cost items. International Journal of Project Management, 32(7), 1233-1245.

Kim, J., Kang, C., & Hwang, I. 2012. A practical approach to project scheduling: considering the potential quality loss cost in the time–cost tradeoff problem. International Journal of Project Management, 30(2), 264-272.

Kogan, L., Papanikolaou, D., Seru, A. and Stoffman, N., 2017. Technological innovation, resource allocation, and growth. The Quarterly Journal of Economics, 132(2), pp.665-712.

Maravas, A., & Pantouvakis, J. P. 2012. Project cash flow analysis in the presence of uncertainty in activity duration and cost. International journal of project management, 30(3), 374-384.

Martinelli, R. J., & Milosevic, D. Z. 2016. Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.

Navaz, A. S., Fiaz, A. S., Prabhadevi, C., Sangeetha, V., & Gopalakrishnan, S. 2013. Human Resource Management System. arXiv preprint arXiv:1309.5351.

Tavana, M., Abtahi, A. R., & Khalili-Damghani, K. 2014. A new multi-objective multi-mode model for solving preemptive time–cost–quality trade-off project scheduling problems. Expert Systems with Applications, 41(4), 1830-1846.

Wang, W. C., Weng, S. W., Wang, S. H., & Chen, C. Y. 2014. Integrating building information models with construction process simulations for project scheduling support. Automation in construction, 37, 68-80.