Case study

1. CASE
Pittsburgh Intern. Airport
Midfield Terminal Energy
Facility
NICMAR
(National Institute of Construction Management and Research)
EXECUTIVE POST GRADUATE PROGRAM IN MANAGEMENT (E-PGPM)
2018-19
AFCONS INFRASTRUCTURE LIMITED, MUMBAI
BATCH-15 GROUP-1
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2. GROUP MEMBERS
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Mr. Bipul Kumar
Mr. Chinmaya Nayak
Mr. Deepak Kumar Saxena
Mr. Gajendra Singh
Mr. Gaurav Gupta
Mr. Gurjit Singh
Mr. Gyanesh Kumar Jha
Mr. Sanjeev Sharma
Mr. Suraj Singh

3. • The Pittsburgh International Airport is owned & operated by the Allegheny County
Department of Aviation.
• Pittsburgh is the second busiest passenger airport in Pennsylvania and 47th busiest in US,
serving 8,041,357 passengers in 2012.
• The new Midfield Terminal includes;
• Landside/central services building 500,000 sft
• Airside building 1,200,000 sft
• Gate capacity 75 aircraft
• Provisions to expand 100 gate terminal
• The modified Terminal Energy Facility was designed to meet the requirement as ;
• Ultimate cooling load 9,100 tons
• Ultimate heating load 113 x 106 Btuh (British Thermal Units per Hour
• The energy facility also provides electric power to the modified Terminal from the new
substation located between the energy facility and the field-erected concrete cooling tower.
• The energy facility was subcontracted by Allegheny County to 3rd Party contractor.
Background
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4. PROJECT REVIEW FROM PROJECT MANAGEMENT POINT OF VIEW
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5. • No cost cutting on engineering had taken place by keeping the following design objectives
in mind;
• Long term availability of energy /fuels.
• Reliable equipment system selections
• State of the art centralized control.
• Optimum equipment systems efficiencies.
• Environmentally safe emissions.
• Low maintenance operations.
• Requirements with proper specification with comparative studies of alternatives done.
Scope Management
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6. • Despite the fact that many different organizations were involved, the project must come
together with proper integration management.
• At this project the process were planned to ensure that project is completed within
approved budget.
• By keeping all stakeholders informed and involving them in the process whenever
appropriate, the owners and stakeholders grow to feel for the project and ensured their
support and coordination.
• All stakeholders were focused on the common interests in the process rather than
opposing positions of the parties.
Integration Management
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7. • Realistic project schedule was made for complete three years.
• With all contingencies properly factored into the schedule.
• After negotiating the realistic budget, the job was to focus on schedule regress monitoring
of schedule with following control tools;
• Performance review.
• Variance analysis.
• Resource leveling.
• The startup testing was delayed due to some non-controllable issues and begins later than
scheduled.
• But due to contingencies already was taken in schedule so it has not affected schedule
much.
• And project was completed six weeks ahead of schedule.
Time Management
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8. • Project cost is equally important but it is directly proportional to the level of quality required.
• Many owners try to save money by minimizing engineering cost witch results in lot of
design changes in later stage and hence delays happened and results in cost increase.
• This was not happened in this project as there was no compromise on engineering costs
and by considering the following points;
• The scope statement was very clear.
• Best contractors was selected with proper bidding and contract award.
• Major equipment's are pre purchased.
• The costs on this project was under control due to balance between the following factors;
• Quality
• Schedule
• Budget
Cost Management
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9. • The 1st objective “quality” was stressed not only by Allegheny County but also by the owner
of the energy facility.
• This facility was the 1st energy facility with the best equipment's available to produce
reliable energy over a long term contract. This was done by the following factors;
• Very clear project objective.
• Detailed engineering details and specifications.
• Reliable equipment systems are selected.
• Proper technical personal was deployed.
• Proper material testing's was done.
Quality Management
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10. • Human resource plan was developed as described below;
• Project was staffed with well qualified and trained personals.
• Selected by strictly intervening them.
• Well defined organization chart with position descriptions was made.
• Development on the project team by providing trainings on interpersonal skills, team
building activities, recognition and rewards / incentives.
• Management of project team by observing, performance appraisal and conflict
management.
HR Management
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11. • It’s the result of effective communication as the project scope was well defined and clear to
all parties including Owner, Contractor and Sub-contractors.
• In schedule also “interface with other entities” had properly factored.
• The Owner , Allegheny County and SE Technology were well synchronized.
• Also the design documents were developed before bidding process which sometimes
becomes a point of communication gap and final projects got delayed.
• Project milestones were scheduled and monitored regularly.
Communication Management
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12. • The owner negotiated a realistic budget that would ensure the level of quality required and
sufficient money to implement the project.
• After schedule is made for 3 years, construction bidding document was prepared.
• And the construction contract was awarded in mid- November of 1990.
• as it was decided before biding process that Major equipment's to be pre-purchased,
• so in the 1st week of December major equipment's started to deliver at the energy facility as
planned.
• And all major equipment's was in facility by March 1991.
Procurement Management
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13. • High pressure steam system was considered at bidding stage, during conceptual stage
design it was changed to High Temperature Water system (HTW) which provided many
advantages.
• HTW system is a less complex system than steam heating because of absence of high
pressure in pipes.
• Initially there was a perception that HTW system is dangerous. A practical test was done
which proved that HTW is safe comparing with steam system.
• Other risks as said before were managed properly and are listed below;
• Risk of improper communication.
• Risk of improper integrity management.
• Risk involved with change in design / drawings (or change of scope).
• Risk with inefficient technical staff.
Risk Management
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14. • Successful projects must have owner’s commitment to realistic scheduling and
budgeting / cash flow.
• Scope management process was properly carried out and the identified activities were
clearly described / stated.
• Projects can be properly controlled by controlling the schedule not the budget as budget
is directly proportional to variations in the schedule.
• Schedule must have sufficient contingencies to manage small delays in critical
resources and activities.
• Proper strict monitoring of schedule can also play a vital role in timely completion of
project.
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CONCLUSION AND KEY LEARNINGS

15. THANK YOU
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