DEVELOPMENT OF SCOPE MANAGEMENT
oVERVIEW
Project Scope Management includes the processes required to ensure that the project
includes all the work require...
• To complete the project on time by covering all the requirements.
• To satisfy the needs of the key stakeholders in my p...
DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT
OVERVIEW:
Project Human Resource Management includes the processes that organize, manage, and
lead the project team. The p...
JOB DISCRIPTION OF DIFFERENT STAKEHOLDERS
INVOLVED PERSONNELS ROLE IN THE PROJECT
Government of Pakistan Responsible for p...
HIRING OF SKILLED WORKERS
As the nature of the project says that the hiring of the skilled workers are the major part
of t...
• Different trainings on team work
• Trainings for the construction phases
DEVELOPMENT OF PROCUREMENTS PLAN
1. PLANNING AND CONDUCT PROCUREMENTS
After the detailed meetings from all the key stakeholders, and different experts in c...
GFCI three way 868 342 $296856
Grinding wheel
4/12x7/8x1/4
987 342 $337554
Grinding wheel
4/12x7/8x1/8
897 433 $388401
Han...
Tape, Teflon 1/2" 363 312 $113256
Tie Off Adapter 464 322 $149408
Tie Wire, Roll 436 343 $149548
Wafer Wheel, 4" 5/8" -
11...
Cheater, 1.50X
Welding Lens
Cheater, 1.75X
8769 878 $699182
Welding Lens
Cheater, 2.00
8890 654 $514060
Welding Rod,
7018 ...
Welding Sleeves 9897 457 $4522929
SMALL TOOL REQUIREMENTS
Air Arc 443 766 $339338
Air Mover 342 765 $261630
Arc Gouge 432 ...
Acetylene
Gauge, Oxygen 757 788 $596516
Grinder, Air Burr
1/4"
765 789 $603585
Grinder, Electric
4 1/2"
875 765 $669375
Gr...
• Crane Truck
• Dump Bodies
• Dump/Transfer
• Dump Truck
• Flatbed-Dump Truck
• Fuel/Lube Truck
• Grapple Truck
• Mixer/As...
11. Sterling Trucks
12. Western Star Trucks
A Complete vendor bid analysis is shown in the following. It is based on the
f...
On the basis of the preceding analysis, our core team members selected the two main
main manufacturers on the basis of qua...
=
$33,354,439
MANUFACTURING OF GAS PIPELINES
Manufacturing of gas pipelines is the tough part for all of our project team ...
DEVELOPMENT OF COMMUNICATION PLAN
1. IDENTIFICATION OF STAKEHOLDERS
The stakeholders described below, come from project charter. Procurement documents
are a...
I
N
F
L
U
C
E I M P A C T
A B
C
D
KEEP
SATISFIED
MANA-
GE
CLOSE
LY
KEEP
INFO
RME
D
LOW END
HIGH END
MONITOR
A CLASS STAKEH...
C CLASS STAKEHOLDERs
Description: these types of stakeholders include those that are not might be
actively involved in the...
3 Mr. Kamran
Zafar
Project
manager
To ensure that the
project must be
completed on
time
To ensure that all
the status repo...
and to ensure that
all the
requirements
related to the
administration of
the plan must be
on time
To minimize
costs and
ma...
To minimize
costs and
maximize profits
2. PLAN COMMUNICATIONS
Description: plan communication of our project includes the ...
Deliverables Type Target
audience
Delivery
method
Delivery
frequency
Who
responsible?
Status
reports
Mandatory Project
spo...
TOP 8 PLAN
To manage the expectations of different stakeholders the top 8 plan provides the overall
meeting schedule dates...
DEVELOPMENT OF QUALITY PLAN
OVERVIEW:
Project Quality Management includes the processes and activities of the performing
organization that determine q...
MANAGEMENT PLAN
PROCUREMENTS
MANAGEMENT PLAN
HSSE CONSULTANTS
………………………………………………………………………………………………
DEVELOPMENT OF RISK MANAGEMENT PLAN
OVERVIEW
The most critical part of our project is the risk management of risk because the as far as
Pakistan is concerned ...
landslides and floods. Instable Government policies, high rate of inflation, rapid change
in material prices are also impo...
action for forth coming risk management plan. In that context, it is necessary to identify,
categorize, analyze, and manag...
Risk
Breakdown
Structure
Socio
political risk
Socio
economical
risk
Organizatio
nal risk
Investmen
t risk
Technologic
al r...
EXPLANATION OF RISK BREAK DOWN FIGURE
• Socio-political risk: it includes all the political instability in the country. As...
PROBABILITIES OF RISK
Earthquake 40%
Floods 15%
Landslides 44%
Unexpected weather conditions 66%
Change in scope of projec...
RESULTS AND RECOMMENDATION
1. Three most critical tasks calculated by Risky Project are Excavation, Transportation of
Mate...
gas pipe line project report.
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gas pipe line project report.

  1. 1. DEVELOPMENT OF SCOPE MANAGEMENT
  2. 2. oVERVIEW Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling what is and is not included in the project. Following are some steps involved in the scope management process. • Collection of requirements. • Formation of project scope statement • Formation of WBS • Controlling through requirements traceability matrix SCOPE STATEMENT How to create opportunity for CATALYST CONSTRUCTION LTD: The main boundary lines of these gas lines are from Balakot to Muzafarabad. As we discussed earlier that during the last 10 years the network of main and distribution gas pipeline has been expanded by 85%. But the geological and geographical conditions of Pakistan are tough for the construction. On one side there are glaciers and high mountains, on the other side there is desert and plan of river Indus with extensive network of wide rivers and canals. There is always risk of earthquake, landslides and floods. Instable Government policies, high rate of inflation, rapid change in material prices are also important risk factors. Looking the current geopolitics situation there is a persistent threat of war and terrorism in the country. All these factors make the situation very complex in quantifying the risk factors especially when the project is gas pipeline in which the impact factor of risk exponentially rise in case of risk occurrence. Moreover, due to the absence of modern project or risk management techniques and methodologies the projects are usually not completed in their planned time or budget. Effort has been made to quantify the associated risks of gas pipeline project on the basis of historical data. The research will be helpful to separate the most important risks from the trivial many for the construction of any sort of pipeline project in the northern areas of Pakistan. So government of Pakistan selected our company to improve the infrastructure of gas pipelines in Pakistan. OBJECTIVES Main objectives of our company • To lower the cost by smart moves • To increase the profitability of the company by fulfilling the overall requirements of this project.
  3. 3. • To complete the project on time by covering all the requirements. • To satisfy the needs of the key stakeholders in my project. • To minimize the risk associated and its impact on the cost • To market the brand name of our company, so that in the next few years we move towards the international markets. Requirements of Overall Project As the project boundaries describes that the nature of the project is very complex due to the tough conditions of Pakistan geographical areas. So especially skilled workers are the key requirements in this project. On the other hand, the mining phase for the construction of these gas pipelines requires a detailed plan for the safety of our workers due to the emission of different gases like CO2 and ammonium which are the dangerous for the human heath. To make the detailed plan of requirements our core project members viewed the project charter to know the key stakeholders in this project. The list planned of requirements is given below. • Arial route for the gas pipelines • Acquisition of land • Long term financing • Raw materials • Skilled workers • Different tool requirements • Heavy duty machinery • Medium duty machinery • Stakeholders register • Gas pipelines KEY PROJECT DELIVERABLE The key project deliverable in my project is the services of the gas pipelines. The main efforts and contribution in the construction of these pipelines includes all the formation of status reports including the major parts in the construction methodology.
  4. 4. DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT
  5. 5. OVERVIEW: Project Human Resource Management includes the processes that organize, manage, and lead the project team. The project team is comprised of the people with assigned roles and responsibilities for completing the project. The type and number of project team members can change frequently as the project progresses. Project team members may also be referred to as the project’s staff. While the specific roles and responsibilities for the project team members are assigned, the involvement of all team members in project planning and decision making can be beneficial. Early involvement and participation of team members adds their expertise during the planning process and strengthens their commitment to the project. Develop Human Resource Plan—The process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan. Acquire Project Team—The process of confirming human resource availability and obtaining the team necessary to complete project assignments. Develop Project Team—The process of improving the competencies, team interaction, and the overall team environment to enhance project performance. Manage Project Team—The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance. The project management team is a subset of the project team and is responsible for the project management and leadership activities such as initiating, planning, executing, monitoring, controlling, and closing the various project phases. This group can also be referred to as the core, executive, or leadership team. For smaller projects, the project management responsibilities can be shared by the entire team or administered solely by the project manager. The project sponsor works with the project management team, typically assisting with matters such as project funding, clarifying scope, monitoring progress, and influencing others in order to benefit the project
  6. 6. JOB DISCRIPTION OF DIFFERENT STAKEHOLDERS INVOLVED PERSONNELS ROLE IN THE PROJECT Government of Pakistan Responsible for providing all the financing of the project Catalyst construction limited Responsible for the overall management of the project and provide SOPs for the project Mr. Kamran Zafar Responsible for the handling of all the project phases Mr. Ali Ahsan Provides the guidelines for the project, may be less involvement but has direct impact on the policies. Mr. Fazal Muqeem Responsible for providing the detailed human resource plan for the project and also for all the recruitment of skilled labor and JDs of each one. Mr. Ali Moazam Provides the guidelines in project and part in cost plan Mr. Mubashir Sadiq Responsible for manufacturing of cost plan and also procurements plan Mr. Riaz Hussain Provides the continuous contact with the market trends Mr. Noor Ahmed Responsible as a supporting regarding different phases of the project Mr. Abdul Khaliq Responsible as a supporting regarding different phases of the project Mr. Adeel Shabir Responsible as a supporting regarding different phases of the project Mr. Bakar-ul-Hassan Responsible as a supporting regarding different phases of the project JOB DISCRIPTION OF HSSE CONSULTANCY FIRMS HSSE CONSULTANTS HSSE consultants are responsible for the overall guidance in the project which will be discussed on different meetings throughout the project. on the other hand, guidance to different functional manager for smart moves in the project must be a part of consultants job.
  7. 7. HIRING OF SKILLED WORKERS As the nature of the project says that the hiring of the skilled workers are the major part of the project so these skilled workers will be hired after the planning and before the execution phase. Mr. Fazal Muqeem is responsible for providing the detailed report for the all the recruitment in the process. Following are the required skills needed for our project: • Most important Required skills needed for construction o Excellent communicator for different negotiation with the owners o Problem solving attitude o Have the ability to take the ownership of different complexities o Sharp thinking process o Must have the excellent listening power • Criteria for all skilled workers must be at least 5 years experience with other construction companies. • Minimum age limit for my workers within 25-35 • Formation of salaries plan for all these skilled workers must be on the following competencies:. o Accountability o Achievement orientation o Communication and coordination o Initiative o Professional integrity o Team work o Change orientation o Impact and influence o Planning and organizing o Team leadership o Information seeking and research o Problem solving o Judgment and decision making NOTE: People Excellence Department is responsible for giving all the ratings to each worker based on the actual level and required level in the project. TRAINING NEEDS OF LABOR The nature of the project told us that there are certain needs for training before the execution of the project. It includes: • Drivers training
  8. 8. • Different trainings on team work • Trainings for the construction phases DEVELOPMENT OF PROCUREMENTS PLAN
  9. 9. 1. PLANNING AND CONDUCT PROCUREMENTS After the detailed meetings from all the key stakeholders, and different experts in cost management, we are able to make a detailed report on the criticality of each item used in our project. In this whole process, our project team and other experts review the limits or boundaries of the project. The company (CATALYST CONSTRUCTION LTD) noticed that arrangement of 30% equipment must be outsourced from different manufacturing companies and the rest 70% must be internal arrangement of critical item. The most important part in the procurements is the arrangement of different machineries, so the company decided for the complete vendor bid analysis in this matter. Moreover, our cost accountants judged that the cost of fuel on these machines during these two years exceeds our limited budget. In this whole planning, for more accurate procurements CATALYST CONSTRUCTION LTD also hires HSSE (health, safety, security and environmental) consulting firm. Following table describes in detail of each item manufactured internally by CATALYST CONSTRUCTION LTD and the cost associated with it. CONSUMABLE REQUIREMENTS QUANTITY EACH PRICE EACH TOTAL Air horn 5000 50 $2500 Alcohol wipes for respirators 300 34 $10200 Anti seize can 589 67 $39463 Battery, AA 4000 98 $392000 Battery, AAA 5000 93 $465000 Blade port blade metal 9800 340 $3332000 Battery D 300 293 $87900 Port band metal 290 77 $22330 Blade sawzall 6’’ 898 432 $387936 Broom, push 321 434 $139314 Bucket plastic 5 gal 234 342 $80028 Choker, nylon 2x 16 321 343 $110,103 Choker nylon 2x4 213 444 $94572 Choker nylon 2x18 321 332 $106572 Cups drinking cone case 888 323 $286824 Drill index 798 334 $266532 Drop light 887 455 $403585 Extension cord 100’ 898 664 $596272 Extension cord 50’ 987 989 $976143 Face shields clear 898 988 $887224 Faceshield adoptor 987 654 $645498 File half round bastard 547 868 $474796 Fire blanket role 787 765 $602055 Flashlight G cell 876 674 $590424
  10. 10. GFCI three way 868 342 $296856 Grinding wheel 4/12x7/8x1/4 987 342 $337554 Grinding wheel 4/12x7/8x1/8 897 433 $388401 Hand wipes bucket 876 434 $380184 Hard hat earbuffs 876 432 $378432 Hole saw kit 567 324 $183708 Hose, Air, 50' $0.00 668 342 $228456 Knee Pads 759 354 $268686 Lens Cleaning Station 47 455 $21385 Lens, Clear 4 1/2" x 5 1/4" 658 654 $430332 Lens, Cutting #5 475 654 $309994 Lens, Shaded 2" x 4 1/4" 689 456 $314184 Light Bulb, 100W 585 78 $45630 Light Stringer, 50' 475 89 $42275 Light, Quartz 585 68 $39780 Mid-Life Tablets or Equivalent, Box 477 89 $42453 Padlock Keyed Alike 548 46 $25208 Paint Stick Black 686 688 $471968 Paint Stick Yellow 586 245 $143570 Paint Stick White 696 675 $469800 Pipe Dope 595 876 $521220 Rags, Box 759 467 $354453 Rain Coat, XL 484 476 $230384 Rain Coat, XXL 384 363 $139392 Rice Paper 374 877 $327998 Rope Grab 478 474 $2262 Rope, ½ Manila, Roll- List qty. of ft. 458 686 $314188 Rope, ¼ Nylon, Roll- List qty. of ft. 568 878 $498704 Sharpie Marker, Black, Box 475 638 $303050 Soapstone 475 322 $152950 Squencher or Gatorade, Case 474 234 $110916 Sweat Bands Tape, Caution Yellow 362 342 $123804 Tape, Danger Red 474 243 $115182 Tape, Duct Roll 685 432 $295920 Tape, Electrical Roll 253 343 $86779 Tape, Scotch #33 437 213 $93081
  11. 11. Tape, Teflon 1/2" 363 312 $113256 Tie Off Adapter 464 322 $149408 Tie Wire, Roll 436 343 $149548 Wafer Wheel, 4" 5/8" - 11 Spin On 475 234 $111150 Wafer Wheel, 6" 5/8" - 11 Spin On 596 324 $193104 Water Cooler, Igloo Type 5 gal 636 324 $20606 Wedge, Tube 253 324 $81972 Zip Ties, Bag 8” 754 539 $406406 WELDING EQUIPMENTS Cups, Gas Lens #4 475 98 $46550 Cups, Gas Lens #6 465 788 $36640 Gas, Acetylene Cylinder 323 765 $24095 Gas, Argon Cylinder 323 675 $28025 Gas, Oxygen Cylinder 322 765 $24330 Striker, Single Flint 232 768 $18176 Torch Tip 0 455 878 $39490 Torch Tip 00 654 788 $55352 Torch Tip 1 456 778 $3547 Torch Tip 2 Torch Tip 3 454 658 $29732 Weld Hood, Jackson, Flip Lens 2x4 459 687 $35333 Welding Jacket, Green XL 9879 678 $667962 Welding Jacket, Green XXL 8787 656 $576272 Welding Jacket, Green XXXL 8798 432 $300736 Welding Lead, 50' 8769 879 $777951 Welding Lens Cheater, 1.25X 8698 567 $431766 Welding Lens 8799 567 $499033
  12. 12. Cheater, 1.50X Welding Lens Cheater, 1.75X 8769 878 $699182 Welding Lens Cheater, 2.00 8890 654 $514060 Welding Rod, 7018 1/8 lbs. 9879 453 $445187 Welding Rod, 7018 3/32 lbs. 7768 654 $508272 Welding Rod, 7018 5/32 lbs. 9889 654 $467406 Welding Rod, 7018A 1/8 lbs. 8769 623 $563087 Welding Rod, 7018A 3/32 lbs. 9877 432 $466864 Welding Rod, 7018A 5/32 lbs. 9079 343 $114097 Welding Rod, 7010 1/8 lbs. 8990 342 $074580 Welding Rod, 7010 3/32 lbs. 9787 342 $347154 Welding Rod, 7010 5/32 lbs. 9899 434 $42166 Welding Rod, 308 1/8 lbs. 4557 876 $3991932 Welding Rod, 308 3/32 lbs. 9879 687 $6786873 Welding Rod, 308 5/32 lbs. 6576 768 $5050368 Welding Rod, 309 1/8 lbs. 7587 685 $5197095 Welding Rod, 309 3/32 lbs. 7658 876 $6708408 Welding Rod, 309 5/32 lbs. 8769 888 $7786872 Welding Rod, 5P+ 1/8 lbs. 8757 464 $4063248 Welding Rod, 5P+ 3/32 lbs. 8999 478 $4301522 Welding Rod, 5P+ 5/32 lbs. 8768 578 $5067904 Welding Rod, 6010+ 1/8 lbs. 323 546 $176358 Welding Rod, 6010+ 3/32 lbs. $ 2321 765 $1775565 Welding Rod, 6010+ 5/32 lbs. 3434 568 $1950512 Welding Rod, 8018 1/8 lbs. 2342 646 $1512932 Welding Rod, 8018 3/32 lbs. 3223 754 $2430142 Welding Rod, 8018 5/32 lbs. 7653 654 $5005062 Welding Screen, 6’ x 8’ 2343 655 $1534665
  13. 13. Welding Sleeves 9897 457 $4522929 SMALL TOOL REQUIREMENTS Air Arc 443 766 $339338 Air Mover 342 765 $261630 Arc Gouge 432 654 $282528 Beam Clamp, 4 Ton 324 656 $212544 Beam Clamp, 6 Ton 879 654 $574866 Cart, 2 Wheel 876 765 $670140 Cart, 4 Wheel 657 654 $429678 Caulk Gun 653 654 $427062 Chainfall, 1 Ton 676 987 $667212 Chainfall, 2 Ton 453 645 $292185 Chipping Hammer, Air 15lb 987 759 $749133 Clamp, C 10" 876 768 $62768 Clamp, C 6" 676 457 $30932 Clamp, C 8" 654 438 $28652 Comalong, 1/4 Ton Comalong, 3/4 Ton 657 654 $42968 Comalong, 1 1/2 Ton 557 675 $375975 Comalong, 3 Ton 768 547 $420096 Drill, Cordless 18V 765 657 $502605 Drill, Electric 1/2" 765 546 $417690 Drill, Hammer Electric 1/2" 899 657 $590643 Fan, Box 764 776 $5864 Fire Extinguisher, 10lb 453 654 $2262 Fire Extinguisher, 20lb 657 457 $300249 Fit Up Bar, 18" 567 648 $367416 Flash Arrestor, Acetylene 654 657 $429678 Flash Arrestor, Oxygen 654 567 $0818 Gauge, 898 878 $788444
  14. 14. Acetylene Gauge, Oxygen 757 788 $596516 Grinder, Air Burr 1/4" 765 789 $603585 Grinder, Electric 4 1/2" 875 765 $669375 Grinder, Electric 6" Angle Grinder, Electric 7" 876 765 $670140 Hammer, 4lb 798 657 $524286 Hammer, Claw 987 765 $7555 Hammer, Slag 876 764 $69264 Impact, Air 1/2" 876 456 $3956 Impact, Air 3/4" 987 787 $76769 Impact, Electric 1/2" 765 647 $49955 Impact, Electric 3/4" 485 765 $371025 Jitterbug 587 764 $48468 Knife, Utility 879 654 $574866 Ladder, Extension 18' 765 764 $58460 TOTAL ESTIMATED COST ON ALL THR PROCUREMENTS = $33,027,387 Excluding all machinery……….. ACQUISITION OF MACHINERY Acquisition of machinery is actually the tough task related to the complexity of the project. On the other hand, moving within budget constraints requires a deep understanding of the seller. To assure that the process must be within the scope, government of Pakistan deeply focused into this issue and moves side by side as the procurements goes on. Moreover, for about more than four to five months our whole project team along with government of Pakistan shows keen interest in the selection of vendors. As the project continues in the next few years, so the most critical part is the availability of sufficient technology otherwise it will ultimately affect the project cost and time. HSSE consultancy firm also assures that available technology will be sufficient for the rest of the years. The main machinery requirements identified after expert judgment and negotiations are: Heavy Duty • Bucket Truck/Boom Truck
  15. 15. • Crane Truck • Dump Bodies • Dump/Transfer • Dump Truck • Flatbed-Dump Truck • Fuel/Lube Truck • Grapple Truck • Mixer/Asphalt/Concrete Truck • Service/Utility/Mechanic Truck • Vacuum Truck • Water Truck Medium Duty • Bucket Truck/Boom Truck • Crane Truck • Dump Bodies • Dump Truck • Flatbed-Dump Truck • Fuel/Lube Truck • Mixer/Asphalt/Concrete Truck • Service/Utility/Mechanic Truck • Sweeper Truck • Vacuum Truck • Water Truck VENDOR BID ANALYSIS To purchase such a heavy our core project selected the following truck manufacturers; Truck Manufacturers: 1. Freightliner Trucks 2. International Trucks 3. Ford Trucks 4. Peterbilt Trucks 5. Kenworth Trucks 6. Mack Trucks 7. Volvo Trucks 8. GMC Trucks 9. Isuzu Trucks 10. Chevrolet Trucks
  16. 16. 11. Sterling Trucks 12. Western Star Trucks A Complete vendor bid analysis is shown in the following. It is based on the following factors. TRUCK MANUFACTURERS CREDIT TERMS PRICES OF TRUCKS RANGE WARRANTY PERIOD Freightliner trucks 5/one month; net 2months $9000- $20000 6months / 50,000 International trucks 5/one month; net 2 months $10000- $30000 6months / 50,000 Ford trucks 4/one month; net 2months $8000- $23000 6months / 50,000 Peterbut trucks 5.5/one month; net 2months $11000- $20000 6months / 50,000 Kenworth trucks 6/one month; net 2months $13000- $20000 6months / 50,000 Mack trucks 3/one month; net 2months $8000- $20000 6months / 50,000 Volvo trucks 4/one month; net 2months $11000- $20000 6months / 80,000 GMC trucks 6/one month; net 2months $4000- $20000 6months / 50,000 Isuzu trucks 1/one month; net 2months $15000- $20000 6months / 50,000 Chevrolet trucks 6/one month; net 2months $7900- $20000 6months / 70,000 Sterling trucks 4/one month; net 2months $9000- $20000 6months / 50,000 Western star trucks 3/one month; net 2months $9000- $20000 6months / 50,000
  17. 17. On the basis of the preceding analysis, our core team members selected the two main main manufacturers on the basis of quality and best discount and warranty period. • CHEVROLET TRUCKS • VOLVO TRUCKS After the final meeting and negotiations the company selected Chevrolet trucks on the their best discount rates and the final rates on the procurements are given below: Heavy Duty Purchases cost estimated in current market conditions Bucket Truck/Boom Truck $9000 Crane Truck $16000 Dump Bodies $23000 Dump/Transfer $13000 Dump Truck $14900 Flatbed-Dump Truck $12934 Fuel/Lube Truck $13564 Grapple Truck $15600 Mixer/Asphalt/Concrete Truck $14090 Service/Utility/Mechanic Truck $13657 Vacuum Truck $17432 Water Truck $17435 Medium Duty Bucket Truck/Boom Truck $15432 Crane Truck $14653 Dump Bodies $11010 Dump Truck $14987 Flatbed-Dump Truck $16723 Fuel/Lube Truck $16532 Mixer/Asphalt/Concrete Truck $9000 Service/Utility/Mechanic Truck $11050 Sweeper Truck $8000 Vacuum Truck $13054 Water Truck $15999 TOTAL MACHINERY PURCHASING COST= $327,052 + OTHERS PROCUREMENT COST =$33,027,387
  18. 18. = $33,354,439 MANUFACTURING OF GAS PIPELINES Manufacturing of gas pipelines is the tough part for all of our project team as far as the quality and estimated cost is concerned. So various consultants are hired to maintain the best quality and the internal cost estimated in the manufacturing is given as follows: NME OF THE GAS PIPELINE DIAMETER Per km pipeline cost LENGTH ESTIMATED COST BM integrated gas pipelines 42’ 400000 25.66 km 10444444 TOTAL MANUFACTURING COST = 10 million So by combining overall cost from all the procurements and manufacturing the net cost estimated is as follows TOTAL COST ESTIMATED IS 43,798,883
  19. 19. DEVELOPMENT OF COMMUNICATION PLAN
  20. 20. 1. IDENTIFICATION OF STAKEHOLDERS The stakeholders described below, come from project charter. Procurement documents are also required to ensure the two main contract parties which are the key stakeholders in this BM integrated gas pipeline. Moreover by looking on the industry standards or the past experiences of the government of Pakistan, we can realize those different issues with these stakeholders and how to cater these in this development. We realized that the previous contract almost two years before.i.e. PAKISTAN-IRAN gas pipeline provides us a handsome approach for smart moves. • Classification of different stakeholders in BM integrated gas pipiline contract Classification of different stakeholders in this project is usually a critical issue to be defined. Key stakeholders are easily to be defined from the contract. So for others stakeholder’s analysis our core project team members pass each stakeholder into different steps to identify their interest expectations and influence on the project. These processes include: o Interviewing different stakeholders to identify their impact on the whole project and interest from this project. (done by PROJECT CORE TEAM) CORE MEMBERS • Mr. Kamran Zafar • Mr. Ali Ahsan • Mr. Ali Moazam • Mr. Mubashir Sadiq • Mr. Fazal Muqeem • Mr. Abdul Khaliq • Mr. Riaz Hussain • Mr. Noor Ahmed • Mr. Adeel Shabir • Ms. Bakar-ul-Hassan o By influence/impact grid
  21. 21. I N F L U C E I M P A C T A B C D KEEP SATISFIED MANA- GE CLOSE LY KEEP INFO RME D LOW END HIGH END MONITOR A CLASS STAKEHOLDERs Description: These types of stakeholders include those that have low impact and high influence on this project. This stakeholder analysis shows that A class stakeholders includes….. • RESOURCE STAFF • SUPPORT TEAM B CLASS STAKEHOLDERs Description: These types of stakeholders include those that have both direct impact and direct influence on this project. It includes: • GOVERNMENT OF PAKISTAN • PROJECT MANAGER (KAMRAN ZAFAR) • CORE TEAM MEMBERS HIGH END KEEP SATISFIED
  22. 22. C CLASS STAKEHOLDERs Description: these types of stakeholders include those that are not might be actively involved in the project but have the ability to create changes in it. It includes: • Support team member D CLASS STAKEHOLDERs Description: these types of stakeholders are those that have high impact on the project but not actively involved in the project these includes: • Political Leaders Instead of all these quantification, our core project team also moves towards qualitative judgment through experts, which also shows more or less the same results as shown above……now the following table shows the particular list of stakeholders that are used in this project. Moreover stakeholders management strategy also shows their level of interest S.NO NAME ORGANIZ- ATION POSITION STAKEHOLDE- RS INTEREST IN THE PROJECT CLASSIFIC ATION ROLE IN THIS PROJECT 1 Government of Pakistan Project sponsor To minimize costs by smart moves To increase the profits by providing long term services External Responsible for providing all the financing of the project 2 Catalyst construction limited Project handlers To ensure that the project must be completed on time To minimize costs and maximize profits Internal Responsible for the overall management of the project and provide SOPs for the project
  23. 23. 3 Mr. Kamran Zafar Project manager To ensure that the project must be completed on time To ensure that all the status reports must be delivered to the stakeholders on time Internal Responsible for the handling of all the project phases 4 Mr. Ali Ahsan CEO To ensure that the selected projected must be profitable by estimating cash flows internal Provides the guidelines for the project, may be less involvement but has direct impact on the policies. 5 Mr. Fazal Muqeem Director (people excellence) To ensure that the HR plan must be completed on time To minimize costs To maximize profits internal Responsible for providing the detailed human resource plan for the project 6 Mr. Ali Moazam Chief technical officer (CTO) To ensure that all the requirements in the technical phase of the project Internal Provides the guidelines in project and part in cost plan 7 Mr. Mubashir Sadiq Chief financial officer (CFO) To ensure that the cost plans must be delivered on time to different stakeholders according to the future needs Internal Responsible for manufacturing of cost plan and also procurements plan 9 Mr. Riaz Hussain Chief marketing officer (CMO) To provide clear guidelines market trends of different materials .i.e prices Internal Provides the continuous contact with the market trends 10 Mr. Noor Ahmed Support team member Part of the administration of the organization Supporter Responsible as a supporting
  24. 24. and to ensure that all the requirements related to the administration of the plan must be on time To minimize costs and maximize profits regarding different phases of the project 11 Mr. Abdul Khaliq Support team member Part of the administration of the organization and to ensure that all the requirements related to the administration of the plan must be on time To minimize costs and maximize profits Supporter Responsible as a supporting regarding different phases of the project 12 Mr. Adeel Shabir Support team member Part of the administration of the organization and to ensure that all the requirements related to the administration of the plan must be on time To minimize costs and maximize profits Supporter Responsible as a supporting regarding different phases of the project 13 Mr. Bakar- ul-Hassan Support team member Part of the administration of the organization and to ensure that all the requirements related to the administration of the plan must be on time Supporter Responsible as a supporting regarding different phases of the project
  25. 25. To minimize costs and maximize profits 2. PLAN COMMUNICATIONS Description: plan communication of our project includes the different parts which include: • Overseeing the project charter which shows the list of deliverables • Identifying the target audience of the project. • Description of the proper delivery method and delivery frequency • Who is responsible for? The following table shows the above points in more detail with proper division. For the whole planning of communication needs, our project core project team uses a continuous communication loop model which includes a continuous repetition of four processes. Communication Plan Table
  26. 26. Deliverables Type Target audience Delivery method Delivery frequency Who responsible? Status reports Mandatory Project sponsor and other managers Through e- mail After every six months Project manager (KAMRAN ZAFAR) Registration documents of stakeholders Mandatory Project sponsor Through mail Monthly Project manager (KAMRAN ZAFAR) Stakeholders management strategy All project core team members and Mr. ali ahsan (CEO) Proper documents through courier services After two months Core team department Updated documents according to emerging needs Mandatory All project core team members Proper documents through courier services After every six months Support department Meeting schedules reports Mandatory All key stakeholders in the project Through e- mails Monthly Project manager (KAMRAN ZAFAR) 3. MANAGE STAKEHOLDERS EXPECTATIONS Before moving on this project, TOP 8 PLAN meeting schedule helps our company to manage the expectations of our key stakeholders in which our core team conducted individual meetings with stakeholders for addressing their issues. Different consultancy firms also hired to resolve the key issues of our stakeholders.e.g.HSSE consultancy firms Majority of the questions were directly link with the negative risks in these operations. (Detailed is given in the risk management plan) Moreover Mr. Kamran Zafar and all of his core team members are responsible for the reports performances on these operations which include: • All the past performance of these operations till the report day. • How much work completed till that time and who is responsible for whom.
  27. 27. TOP 8 PLAN To manage the expectations of different stakeholders the top 8 plan provides the overall meeting schedule dates t different point in time in the project. Meetings before the execution phase 2 meetings (must be informed through mails Meetings in the mid of the construction process (after the mining phase is over) 5 meetings (must be informed through mails Meetings at the end of the project (when the execution phase reaches at its final stages 1 meetings (must be informed through mails ………………………………………………………………………………………………
  28. 28. DEVELOPMENT OF QUALITY PLAN
  29. 29. OVERVIEW: Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken. It implements the quality management system through policy and procedures with continuous process improvement activities conducted throughout, as appropriate. Overview of the Project Quality Management processes which include the following: Plan Quality—The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance. Perform Quality Assurance—The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used. Perform Quality Control—The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. CATALYST CONSTRUCTION Company also requires complete quality plan to meet the stakeholder requirements. The benchmark of our company includes six sigma which says that quality of your project must be at its best, at your best effort. To assure this our company also incurs certain types of costs such as training costs, a complete vendor analysis, testing, and inspections. To assure that all the things must be on time CATALYST Company hires the consultancy firm (HSSE COSULTANTS) for all the audit checks of our business. Specific dates of these checks are given below. PERFORMS QUALITY CONTROL PLAN STATUS REPORTS AUDITED BY SCOPE MANAGEMENT PLAN HSSE CONSULTANTS TIME MANAGEMENT PLAN HSSE CONSULTANTS COST MANAGEMENT PLAN HSSE CONSULTANTS QUALITY MANAGEMENT PLAN HSSE CONSULTANTS HUMAN RESOURCE MANAGEMENT PLAN HSSE CONSULTANTS COMMUNICATIONS HSSE CONSULTANTS
  30. 30. MANAGEMENT PLAN PROCUREMENTS MANAGEMENT PLAN HSSE CONSULTANTS ………………………………………………………………………………………………
  31. 31. DEVELOPMENT OF RISK MANAGEMENT PLAN
  32. 32. OVERVIEW The most critical part of our project is the risk management of risk because the as far as Pakistan is concerned various types of negative risks associated with this gas pipeline. The objectives of the risk management plan are to increase the probability and impact of positive events and decrease the probability of negative risks in the project. the most important parts in the planning phase of the risk are: • Planning and identification of risks • Quantitative risk analysis • Qualitative risk analysis by expert judgment • Plans and strategies for handling of negative risks Risk is an uncertain event in the project, if it occurs affects at least one project objective. Objectives can include scope, schedule, cost and quality. On the other hand, there are also important issues inside the organization (CATALYST CONSTRUCTION LTD) that are also to be reviewed, for example, lack of integrated management systems and dependency on other companies who cannot be controlled. Our monthly meetings with different consultants ensure the type of attitude when the risk occurs which includes: perception, tolerances and other biases. 1. PLANNING AND IDENTIFICATION OF RISK All the project core team hold different planning meetings to develop the risk management plan. Attendees in these meetings include: • Mr. KAMRAN ZAFAR (Project Manager) • Mr. Ali Ahsan (CEO of the CATALYST CONSTRUCTION LTD) • Mr. Fazal Muqeem (director in the people excellence department) • Mr. Mubashir Sadiq ( chief financial analyst of the catalyst constion ltd) • Mr. Ali Moazam (chief technical officer) • Mr. Riaz Hussain (chief marketing officer) • HSSE consultants As we discussed previously, Pakistan is planning to improve the infrastructure of natural gas through pipelines in their countrry. For fully utilizing the imported gas, providing it to end customers, the infrastructure of gas pipeline is being developed. Therefore a huge investment is being carried out in this sector. During the last 10 years the network of main and distribution gas pipeline has been expanded by 85%. But the geological and geographical conditions of Pakistan are tough for the construction. On one side there are glaciers and high mountains, on the other side there is desert and plan of river Indus with extensive network of wide rivers and canals. There is always risk of earthquake,
  33. 33. landslides and floods. Instable Government policies, high rate of inflation, rapid change in material prices are also important risk factors. Looking the current geopolitics situation there is a persistent threat of war and terrorism in the country. All these factors make the situation very complex in quantifying the risk factors especially when the project is gas pipeline in which the impact factor of risk exponentially rise in case of risk occurrence. Moreover, due to the absence of modern project or risk management techniques and methodologies the projects are usually not completed in their planned time or budget. Effort has been made to quantify the associated risks of gas pipeline project on the basis of historical data. The research will be helpful to separate the most important risks from the trivial many for the construction of any sort of pipeline project in the northern areas of Pakistan. Table 1(a) Showing Natural resources reserves in Pakistan and their usage (%): SOURCE OF ENERGY SHARE (%) Natural gas 50,4 The discussion shows that, huge investment is expected in the field of gas pipeline construction domestic and cross boarders. Pakistan, not rich in experience of pipeline construction is looking for a technical and strategic partner for the pipeline construction, just after the final settlement of Pakistan-IRAN pipeline project is done expectedly in June, 2008. Geological and geographical conditions of Pakistan are very complex for the construction of oil or gas pipeline projects. Almost 50 % of the total area of Pakistan is mountainous. The northern areas are having different chains of mountains coming from China and India (Himalaya, Karakorum) which meet with the mountain chains coming from Iran and Afghanistan (Koh Salman, Hindu Kush) in the northern areas of Pakistan. There is also an extensive net work of wide rivers and canals in Pakistan. As the intensity of crossing and obstacles in the linear part of pipeline, the over all cost of the pipelines and associated risks to complete project in planed framework also increases. The risk can also be associated with the type of topography of region. In summer temperature ranges between 45-50*C due to that glaciers melt and melted water goes to the Indus water system. The monsoon rains which occurs during June to August raise the river flows to high extend and ultimately floods occurs. The statistics shows that big floods in the history occurred in summer. Considering geopolitics of the regions there is a persistent threat of terrorism and war. The economic instability has added the problem due to that there is frequent change in economic parameters. All these are in fact potential risks for any construction project especially oil and gas pipelines in which risk are multiplied many fold and there is exponential rise in damage in case of occurrence of one or more risks resulting huge human and environmental losses. Risk management process starts with the planning of risk management. For that meetings are conducted and it is mainly internal organizational effort for planning a course of
  34. 34. action for forth coming risk management plan. In that context, it is necessary to identify, categorize, analyze, and manage risks in projects. INPUT PROCESS OUTPUTS Organizational environmental factor Planning meetings and analysis Risk management plan Organizational process assets Project scope management Project management plan the risks characteristics are different in different part of same country, in which the project is being executed. After identification for the safe of simplicity we can make Risk Breakdown structure (RBS) ,which help to visualize the whole scenario of risk management process. Considering project life cycle of gas pipeline project in Pakistan we can mainly categorize risk in two ways: • Risks during Construction • Risk during Exploitation of oil and gas pipelines risks in gas pipeline construction sector. RBS make things simpler in visualizing the process of risk assessment or analysis. Once risks have been identified, they must then be assessed as to their potential severity of loss and to the probability of occurrence. Risk assessment/analysis is primarily a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity. Risk assessment is defined as a feasible detrimental outcome of an activity or action. Risk assessment process required two items: • The magnitude (Impact) of the possible adverse consequence (risk), and • The likelihood (probability) of occurrence of each consequence.
  35. 35. Risk Breakdown Structure Socio political risk Socio economical risk Organizatio nal risk Investmen t risk Technologic al risk Security risk Natural disasters Ecological risk Public safety and security Political influence Strikes, lockouts Economic instability Change in material prices High inflation rates Change in scope Unavailabili ty of labor resources Project not completed on time Credit availability Fluctuation in the currency Disinvestme nt in the market Design not in time Complicated site conditions Lack of communicat ion War Terrorism Accident on site Loss or damage to machine Loss of human resource Earthquake Floods Landslides Unexpected weather conditions Wind storms Damage to water resources Loss of animal and plant species
  36. 36. EXPLANATION OF RISK BREAK DOWN FIGURE • Socio-political risk: it includes all the political instability in the country. As during the past few years we have noticed that Pakistan is in deep trouble in building the trust of their people. Due to this instability, there might be high probability of strikes and lockouts which will ultimately negatively effect our project due to delay or change in the government policies. • Socio-economical risk: during the past 10 years, detailed marketing surveys shows that inflation rate in Pakistan almost thrice than today due to its instability in the political section. So we can say that, if at certain point in time, our material prices are high then it will ultimately impacts our project objectives that is ti me and budget. • Organizational risk: this type of risk is due to the internal factors of the organization. Unavailability of the labor resources inside the company due to its poor planning incurs a lot of impact on the overall cost and time of the pipeline. • Investment risk: due to the fluctuations in the dollar value, this huge investment project will ultimately impact its boundaries. We can say that reduction of only one dollar in the currency will damage the 30% effort of the project and since this problem cannot be controlled so we must look towards the cash reserves to cater this situation. • Technological risk: the construction of these pipelines that is 1674 km long includes a very complex designing of pipelines. Due to this our company hired a very experienced consultancy firm. • Security risks: history shows that in the past Pakistan-Iran gas pipelines construction process, terrorist attracts on these pipelines reaches up to 141. On the other, PAKISTAN is in deep trouble in facing these terrorists attack during past few years, so we can say that probability of terrorism and war in Pakistan must be high. To cater this problem, Government of Pakistan actively involved providing security in the operations of these gas pipelines. • Natural disasters: again, we cannot control nor have the power to cater this problem but yes we can minimize the impact of earthquakes, floods through different experts of HSSE firm and also from the China. • Ecological risk: during the construction, our project team noticed that the cutting of rocks will ultimately affect its the animal species that is wolf, blue sheep.e.t.c
  37. 37. PROBABILITIES OF RISK Earthquake 40% Floods 15% Landslides 44% Unexpected weather conditions 66% Change in scope of project 62% Insufficient technology 77% Construction not finished on time 62% Design not on time 40% Unexpected obstacles in rocks 70% Political instability 80% Change in the material price 84% Timely unavailability of labor 20% War 20% Terrorism 88% Loss of asset of human life 44% Damage to wild life 38% STRATEGIES FOR NEGATIVE RISKS AVOID TRANSFER MITIGATE Earthquake M Floods M Landslides M Unexpected weather conditions M Change in the scope of the project M Insufficient technology T Construction not finished on time T Design not on time T Unexpected obstacles in rocks M Political instability Change in the material price T Timely unavailability of labor War A Terrorism T Loss of asset of human life T Damage to wild life T
  38. 38. RESULTS AND RECOMMENDATION 1. Three most critical tasks calculated by Risky Project are Excavation, Transportation of Material and Stringing of pipelines. The most critical risks come out to be change in economic parameters, delay in approval from regulatory body, internal and external communication, earthquake and terrorism during construction and operation of gas pipelines. 2. The secondary risks like change in material prices, construction not finished in time or budget and design not in time can be reduced or transferred to the other party or organization by contract. However HSSE is designing, constructing and operating gas pipelines so risk can be eliminated by strengthening the internal organizational capacity for design, construction and operation. 3. Organizational or technological risk like insufficient resource planning or project management, change in scope etc can be eliminated by improving the process or application of new technologies available in this field. New state of the art technologies are helpful in managing change at any stage of the project. ………………………………………………………………………………………………

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