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Chunnel Project_Development Phase
 

Chunnel Project_Development Phase

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Case Analysis of the Chunnel Project with respect to the Development Phase of the Project

Case Analysis of the Chunnel Project with respect to the Development Phase of the Project

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    Chunnel Project_Development Phase Chunnel Project_Development Phase Presentation Transcript

    • PHASE II : THE DEVELOPMENT PHASE THE CHUNNEL TUNNEL PROJECT
    • BRIEF INTRODUCTION 1. Introduction to Chunnel Project 2. Introduction to Development Phase of the Project 2 CHUNNEL PROJECT DEVELOPMENT PHASE
    • CHANNEL + TUNNEL = CHUNNEL 3 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Introduction “The Channel Tunnel (Chunnel) Project was launched to create a connection between England and France via dedicated underground tunnel”  Scope of the Project:  To create a fixed transportation link between England and France  Objective of the Project:  To spur economic development in the region  Improve European trade environment  Provide alternative high speed transportation method 4 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Introduction  The Channel Tunnel comprises three tunnels - two main rail tunnels : Northbound and Southbound; with a service tunnel of smaller diameter passing from in between them 5 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Contracts 6 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Life Cycle  Inception Phase: Historical background, nature of project, political climate and pre-feasibility studies.  Development Phase: Planning, financing and conceptual designing.  Implementation Phase: Detailed designing, construction, installation, testing and commissioning.  Closeout Phase: Overall performance, settlement of claims, financial status and post-project evaluation.7 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Development Ph.  Development may also be interpreted as planning, scheduling, design and primary engineering.  It address development of plan for various project parameters i.e. risk, quality, resources etc.  It includes finalizing the project charter and obtaining approval to proceed with the project. “This was an important phase for the project because of the sheer size and complexity of the project” 8 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Chunnel Project : Development Ph. Some Critical Aspects in Development Phase:  Massive communication barriers  Problems due to huge scope of the project  IGC played critical and detrimental role  Cost management  Banks played an influential role from the beginning  Well worked out schedules, but project still faltered on the delivery date  Better risk management could have been done 9 CHUNNEL PROJECT DEVELOPMENT PHASE
    • CASE ASSESSMENT QUESTION 01: Evaluation of Project Management During Development Phase 10 CHUNNEL PROJECT DEVELOPMENT PHASE INCEPTION PHASE DEVELOPMENT PHASE EXECUTION PHASE CLOSE-OUT PHASE
    • Development Phase: Scope Management  Lack of a Define Scope made lots of things difficult, viz. – resource planning, cost estimating and budgeting.  This factor alone would have placed the scope management at the rating level of very poor but for the quarterly status reports it got placed at poor level.  The status report, prepared every three months, for the investors contributed to keeping the project somewhat on track. 11 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Time Management  The schedule planning during the development phase was more or less adequate.  True the project finished a year later than it was due but it was often because of things beyond the project management team‟s control.  Hence, the project management team couldn’t be held wholly responsible for improper time management and hence placed at an average rating of good. 12 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Cost Management  Scope Creep played a large part in the substantial increase from its initial cost estimates  IGC was allowed to have a scope control without the ability to approve additional funding  At times an over-management of risks led to unnecessary expenses which could have been avoided  Based on the above mentioned factor, Cost Management is placed at the lowly rating of very poor 13 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Quality Management  IGC mandated – „whenever a difference occurred in standards between the two countries, the higher of the two standards kept‟  Most advanced technological equipment and very little margin for error allowed for quality to be an extremely important attribute while planning during this phase  Thus IGC’s involvement made a huge impact on the quality management of the project but adversely affected other areas and the phase received a high rating of very good but not an excellent rating 14 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Human Resource Management  For every British team member, the French had a matching counterpart  IGC was also a part of this factor and IGC played an important role in maintaining the quality of the project  Teamwork was helped by the focus on fairness that was followed by the two governments involved  All these above mentioned justify the very good rating given to the human resource management factor for this phase 15 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Communications Management  Communication between the French and English side was limited  Each side worked toward a goal and did not feel the need to communicate because the assumption was that they were both working towards meeting in the middle  Just because, they were clear about the objective and initial communication was good, the rating for this phase is put at poor and not very poor  This factor of project management can be summarized as the following chart on the next slide 16 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Communications Management 17 CHUNNEL PROJECT DEVELOPMENT PHASE Two Countries Two Languages Two Governments Two Standards Communication Issues were a result of: This resulted in: LIMITED INTERNAL COMMUNICATION
    • Development Phase: Risk Management  Risk could have been better researched and evaluated when it came to the technical side of the project  At times there were cases of over managing risk which led to cost increases and delays  At the same time, leeway given to the banks – focus shifted to minimizing risks, which worked in the project‟s favor until it was taken to the extremes  For the aforementioned reason, risk management for the phase has been given a good rating18 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Procurement Management  Over management of risks led to use of sophisticated and advanced equipment, procurement of which was handled well  IGC‟s involvement and mandatory – “better of the two methods”, made it necessary for the team to procure advanced technological equipments and maintain quality – which was again handled very well  But of course, this resulted in increased costs  Hence it is safe to give a rating of very good to the procurement management factor of the phase 19 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Integration Management  Teamwork concept was sidelined when the two governments refused to guarantee the project financially  Two teams working on opposite ends didn‟t feel the need to communicate and integrate leading to differences in opinions in project‟s later stages  These factors prove the lack of integration between the teams on the two ends and hence a low rating of poor 20 CHUNNEL PROJECT DEVELOPMENT PHASE
    • PROJECT MANAGEMENT AREA RATING Scope Management 2 Time Management 3 Cost Management 1 Quality Management 4 Human Resource Management 4 Communications Management 2 Risk Management 3 Procurement Management 4 Integration Management 2 Average Rating for the Phase 2.78 ~ 3 (approx.) CHUNNEL PROJECT DEVELOPMENT PHASE21 Rating Scale: 5:Excellent 4:Very Good 3:Good 2:Poor 1:Very Poor
    • CASE ASSESSMENT QUESTION 02: Major Areas of Strength During Development Phase 22 CHUNNEL PROJECT DEVELOPMENT PHASE INCEPTION PHASE DEVELOPMENT PHASE EXECUTION PHASE CLOSE-OUT PHASE
    • Development Phase: Major Areas of Strength  Quality Management The project was delivered with a relatively high degree of quality because the free reign given to the IGC  Project Office The project office did an adequate job and followed the planning, designing and retailing phases required in this phase of project. Project management in this phase was hopeful and project management practices in place did provide an mechanism for achieving success 23 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Major Areas of Strength  Project Team The project team did a very reasonable job in planning the technical equipment and understanding the complexity involved  Team Work The focus on fairness was followed by the both governments involved (teamwork concept was lost in later phases)  Planning and Scheduling The schedule planning during the development phase seemed to be adequate - the project finished a year late but due to things beyond the project team control24 CHUNNEL PROJECT DEVELOPMENT PHASE
    • CASE ASSESSMENT QUESTION 03: Major Opportunities for Improvement During Development Phase 25 CHUNNEL PROJECT DEVELOPMENT PHASE INCEPTION PHASE DEVELOPMENT PHASE EXECUTION PHASE CLOSE-OUT PHASE
    • Development Phase: Major Opportunities for Improvement  Communication Communication plays a very vital role in a project, not only for the project managers but also for the rest of the team members - this is one of the factors driving a project to success or failure  Control Given to IGC There was much debate on the free reign given to IGC because of the delays and cost increments caused by the decisions of IGC 26 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Major Opportunities for Improvement  Technical Specifications Scope, functional requirement and technical specifications need to be defined and validated at an early stage - although the data from past projects was taken into account and studies, the learning from those projects was not implemented when planning of the project was being done; because of need to do too much in too little time  Risk Management Risk management definitely needed looking into because it was either over managed or under managed27 CHUNNEL PROJECT DEVELOPMENT PHASE
    • CONCLUSION Key Lessons Learnt From The Development Phase 28 CHUNNEL PROJECT DEVELOPMENT PHASE
    • Development Phase: Key Lessons Learnt  Scope needs to be properly defined at the very beginning to avoid delays  Technical and Functional Requirements need to be given due and equal importance and lessons learnt from earlier projects need proper implementation (wherever required) while planning for a complex project like Chunnel Project  Communication plays a major role in the success of a project – it can lead the project either on the road to success or failure 29 CHUNNEL PROJECT DEVELOPMENT PHASE
    • THANK YOU… Presented By: Khyati G. Tewari 30 CHUNNEL PROJECT DEVELOPMENT PHASE