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

1. PHASE II : THE DEVELOPMENT
PHASE
THE CHUNNEL TUNNEL
PROJECT

2. BRIEF INTRODUCTION
1. Introduction to Chunnel Project
2. Introduction to Development Phase of the Project
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3. CHANNEL + TUNNEL =
CHUNNEL
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4. 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
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5. 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
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6. Chunnel Project : Contracts
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7. 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
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8. 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”
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9. 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
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10. CASE ASSESSMENT
QUESTION 01:
Evaluation of Project Management
During Development Phase
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INCEPTION
PHASE
DEVELOPMENT
PHASE
EXECUTION
PHASE
CLOSE-OUT
PHASE

11. 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.
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12. 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.
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13. 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
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14. 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
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15. 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
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16. 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
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17. Development Phase:
Communications Management
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Two Countries Two Languages
Two Governments Two Standards
Communication
Issues
were a result of:
This resulted in:
LIMITED INTERNAL
COMMUNICATION

18. 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
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19. 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
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20. 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
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21. 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.)
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Rating Scale:
5:Excellent 4:Very Good 3:Good 2:Poor
1:Very Poor

22. CASE ASSESSMENT
QUESTION 02:
Major Areas of Strength
During Development Phase
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INCEPTION
PHASE
DEVELOPMENT
PHASE
EXECUTION
PHASE
CLOSE-OUT
PHASE

23. 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
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24. 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
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25. CASE ASSESSMENT
QUESTION 03:
Major Opportunities for Improvement
During Development Phase
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INCEPTION
PHASE
DEVELOPMENT
PHASE
EXECUTION
PHASE
CLOSE-OUT
PHASE

26. 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
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27. 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
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28. CONCLUSION
Key Lessons Learnt
From The Development Phase
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29. 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
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30. THANK YOU…
Presented By: Khyati G. Tewari
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