A project, which is unique but as a project underwent many scope changes, making it a 'failure' in the eyes of PMI'sm.

1. KLIA2
- Some Salient Facts
Source: Masters Thesis of Mr Sivabalan Naidu of IPE
Management School, Paris
1st June 2014

2. The Regional Hub to be?

3. Is KLIA 2 sinking now?
• Why was a new master plan drawn up in 2008 for
the expansion of the low-cost carrier airport
(KLIA2), resulting in the airport being built on soft
soil, when an earlier plan circumvented (avoided)
this problem?
• This question lies at the heart of the current
outcry over the ballooned cost of the airport
from an estimated RM1.7 billion to up to over
RM4 billion today and the question of safety.
• Refer to the International Airport Masterplan
1992

4. Why we continue to faulter in our
projects?

6. Executive summary
• The purpose of this report was to undertake a thorough investigation
into the various causative factors which may have contributed to the
failure of KLIA 2 by Malaysia Airports Holdings Berhad (MAHB)
• The cost overrun was from RM 1.9 Billion to RM 4.0 Billion and with
more than 2 years of delay in its completion.
• One of the major factors which may have contributed to the cost
overrun and delayed completion is the inability to manage change.
• As we know, managing the changes in a project is a part of project
management life cycle.

7. Executive summary
• Based on the report, given by CEO & Managing Director of
Malaysia Airports Holdings Berhad (MAHB) Tan Sri Bashir
Ahmad, the new terminal was delayed three times from its
original completion date of September 2011
• It is because of the new requirements.
• If only the additional or new requirements had been managed
with a scope which is a major factor in having a balanced
project management these cost overruns and delays would not
have occurred.

8. Executive summary
• After taking all the project success and failure factors into
consideration, it is recommended that the Chairperson of the
MAHB Board of Directors should use Statement of Work
(SOW) as a yardstick of progress and success.
• Plan the purpose of the project by taking into consideration,
the risk management and scope in this case is to finish the
KLIA 2 as per the initial project planning without running
away from the schedule and cost.….

9. Executive summary
• ….and to clearly outline the possible risks, and
management of the risk so that when a change or new
requirements arises we could manage it without
interrupting the iron triangle, where the main
components are quality, scope, cost and schedule.
• This is the key being the co-ordination between all the
sectors working in building KLIA 2

11. Scope Variation

14. - Air
Asia

15. Conclusion & Recommendations
• We have discussed the various relevant factors which
may have contributed to the failure of KLIA 2 by
Malaysia Airports Holdings Berhad (MAHB).
• The key factors being lack of anticipation to the
project plan changes and a poor risk management.
• Thus, I would recommend to the chairperson of
MAHB in the future projects have a change
management team where they help execute and
manage change to ensure, you not only meet your
business objectives but new processes are adopted
and sustained.

16. Conclusion& Recommendations
• Other than that it’s crucial to follow the four
phases of project management life cycle and not
skipping any of these phases will ensure the
success of the project.
• It is also important to create statement of work
(SOW) for the business case to identify the
purpose, scope, project deliverables, goals and
objectives and cost and schedule estimates. These
ensure we do not run out of the planning we
initially made thus preventing mishaps such as cost
overrun or delays..

17. Conclusion & Recommendations
• Adding to that the risk management team
should calculate the possible risks with the
help of risk impact / probability chart. This
gives a quick and clear view of the priority we
need to give each, and help us to decide what
resource to allocate in managing the
particular risk

18. Conclusion & Recommendations
• Therefore as conclusion project management
skills should be incorporated with the theories
and models I have presented in my study
above should be followed to attain project
success, as these are the models proven by
researches and trials. I hope these
recommendations will help to elevate the
project success in future business cases