Table 2.1 - Business Benefits Benefit Category Benefit Description Benefit Value Financial Reduction in Costs Rs. 30 Mn Operational Improved Efficiency Reduce Downtime Reduced Maintenance 85% Rs. 10 Mn Rs. 50 Mn Market Additional competitive advantage Continued product supply to market Customer Greater Customer Loyalty Consistent product quality for the customers
Table 2.2 - Business Costs Expense Category Expense Description Expense Value Expense Type People Salaries of project staff Contractors / outsources parties Rs. 5 Mn Rs. 2 Mn OPEX CAPEX Physical Equipment and Material Tools and Machinery Rs. 20 Mn Rs. 3 Mn OPEX OPEX Marketing Announcements and Communication Rs. 0.1 Mn OPEX Organizational Downtime Rs. 3 Mn OPEX Total Cost Rs. 33.1 Mn
Table 2.4 - Business Risks Risk Description Risk Likelihood Risk Impact Actions Required to Mitigate Risk Inability to complete project on time i.e. within 15 days High High Careful and thorough planning Additional expenditure may occur Medium High Scope re-verification during planning Critical demand situation during shutdown Low Medium Maintain Safety stock of Oil during project
Table 2.5 - Business Issues Issue Description Issue Priority Actions Required to Resolve Issues Required capital expenditure funds have not been budgeted High Request funding proposal at immediately Regulatory and board approval must be sought to implement the final solution High Initiate regulatory approval process early so that it does not delay the execution process. Managing outsourcing and material import action Medium Initiate Purchase Requisitions at early stage of the project.
Table 2.7 - Business Requirements Business Problem / Opportunity Project Requirements Continuous equipment usage results in wear and tear Requires maintenance to ensure the integrity of the infrastructure Upgradation of facilities Requires shut down for installation
Table 2.11 – Project Deliverables Deliverable Components Description To accomplish overhauling of refinery Improved equipment integrity, Reduced maintenance, Production Efficiency Overhauling of refinery by shutting down all production operations for 15 days using Rs. 33.1 Million budget.
Table 2.12 – Project Organization Customer Representative Operations Department Mr. Paracha Maintenance Department Mr. Tahir
Table 2.13 – Project Stakeholders Stakeholder Stakeholder Interest CEO Alignment with company vision Marketing Department Continued product supply Government Country fuel requirements, Industry business continuity Health and Safety Office Alignment with health and safety standards Operations Department Increased efficiency and low equipment breakdown
Table 2.14 – Project Roles Roles Resource Name Organization Assignment Status Assignment Date Project Manager Basit Sultan Maintenance Assigned 14-06-2009 Planning Engineer Ashar Ahmed Planning Assigned 16-06-2009 Cost Engineer Munawar Projects Assigned 16-06-2009 Field Engineer Haider Maintenance Not Assigned 01-09-2009 Outsourced Technicians To be hired Outsourced Not Assigned 01-01-2010
Table 2.15 – Project Approach Phase Overall Approach Initiation Outline the method by which the project will be further defined, the project team appointed and the project office established Planning Define overall planning process to ensure that activities are listed down after physical site inspections, they are scheduled and procurements / contracts are planned. Execution Start implementation of the activities listed in the project management plan. Refinery Shut Down Stop all production and start the maintenance as mentioned in the plan. Perform inspection after completion of all activities and commission the refinery to start production. Closing Close contracts, close procurement, report project issues and performance.
Table 2.16 – Project Milestones Milestone Date Description Project Planning 1-Jul-2009 to 30-Aug-2009 Generate Project management plan Project Execution 1-Sep-2009 to 15-Feb-2010 Start activities listed in the plan to arrange for refinery shut down. Refinery Shutdown 1-Feb-2010 to 15-Feb-2010 Shut down production and perform all scheduled jobs with the help of available resources Project Closure 15-Feb-2010 to 28-Feb-2010 Conclude project and log project performance
Table 2.17 – Project Dependencies Project Activity Impacts On Is impacted by Criticality Date Shutdown Production Sales High 1-2-2010