gas pipe line project report.

D EVELOPMENT O F S COPE M ANAGEMENT

o VERVIEW

Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling what is and is not included in the project. Following are some steps involved in the scope management process.

Collection of requirements. Formation of project scope statement Formation of WBS Controlling through requirements traceability matrix

SCOPE STATEMENT

How to create opportunity for CATALYST CONSTRUCTION LTD:

The main boundary lines of these gas lines are from Balakot to Muzafarabad. As we discussed earlier that during the last 10 years the network of main and distribution gas pipeline has been expanded by 85%. But the geological and geographical conditions of Pakistan are tough for the construction. On one side there are glaciers and high mountains, on the other side there is desert and plan of river Indus with extensive network of wide rivers and canals. There is always risk of earthquake, landslides and floods. Instable Government policies, high rate of inflation, rapid change in material prices are also important risk factors. Looking the current geopolitics situation there is a persistent threat of war and terrorism in the country. All these factors make the situation very complex in quantifying the risk factors especially when the project is gas pipeline in which the impact factor of risk exponentially rise in case of risk occurrence. Moreover, due to the absence of modern project or risk management techniques and methodologies the projects are usually not completed in their planned time or budget. Effort has been made to quantify the associated risks of gas pipeline project on the basis of historical data. The research will be helpful to separate the most important risks from the trivial many for the construction of any sort of pipeline project in the northern areas of Pakistan. So government of Pakistan selected our company to improve the infrastructure of gas pipelines in Pakistan.

OBJECTIVES

Main objectives of our company

To lower the cost by smart moves To increase the profitability of the company by fulfilling the overall requirements

of this project.

To complete the project on time by covering all the requirements. To satisfy the needs of the key stakeholders in my project. To minimize the risk associated and its impact on the cost To market the brand name of our company, so that in the next few years we move

towards the international markets.

Requirements of Overall Project

As the project boundaries describes that the nature of the project is very complex due to the tough conditions of Pakistan geographical areas. So especially skilled workers are the key requirements in this project. On the other hand, the mining phase for the construction of these gas pipelines requires a detailed plan for the safety of our workers due to the emission of different gases like CO2 and ammonium which are the dangerous for the human heath. To make the detailed plan of requirements our core project members viewed the project charter to know the key stakeholders in this project. The list planned of requirements is given below.

Arial route for the gas pipelines Acquisition of land Long term financing Raw materials Skilled workers Different tool requirements Heavy duty machinery Medium duty machinery Stakeholders register Gas pipelines

KEY PROJECT DELIVERABLE

The key project deliverable in my project is the services of the gas pipelines. The main efforts and contribution in the construction of these pipelines includes all the formation of status reports including the major parts in the construction methodology.

D EVELOPMENT O F H UMAN RESOURCE M ANAGEMENT

O VERVIEW:

Project Human Resource Management includes the processes that organize, manage, and lead the project team. The project team is comprised of the people with assigned roles and responsibilities for completing the project. The type and number of project team members can change frequently as the project progresses. Project team members may also be referred to as the project’s staff. While the specific roles and responsibilities for the project team members are assigned, the involvement of all team members in project planning and decision making can be beneficial. Early involvement and participation of team members adds their expertise during the planning process and strengthens their commitment to the project.

Develop Human Resource Plan—The process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.

Acquire Project Team—The process of confirming human resource availability and obtaining the team necessary to complete project assignments.

Develop Project Team—The process of improving the competencies, team interaction, and the overall team environment to enhance project performance.

Manage Project Team—The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance. The project management team is a subset of the project team and is responsible for the project management and leadership activities such as initiating, planning, executing, monitoring, controlling, and closing the various project phases.

This group can also be referred to as the core, executive, or leadership team. For smaller projects, the project management responsibilities can be shared by the entire team or administered solely by the project manager. The project sponsor works with the project management team, typically assisting with matters such as project funding, clarifying scope, monitoring progress, and influencing others in order to benefit the project

JOB DISCRIPTION OF DIFFERENT STAKEHOLDERS

INVOLVED PERSONNELS ROLE IN THE PROJECTGovernment of Pakistan Responsible for providing all the financing

of the project Catalyst construction limited Responsible for the overall management of

the project and provide SOPs for the project

Mr. Kamran Zafar Responsible for the handling of all the project phases

Mr. Ali Ahsan Provides the guidelines for the project, may be less involvement but has direct impact on the policies.

Mr. Fazal Muqeem Responsible for providing the detailed human resource plan for the project and also for all the recruitment of skilled labor and JDs of each one.

Mr. Ali Moazam Provides the guidelines in project and part in cost plan

Mr. Mubashir Sadiq Responsible for manufacturing of cost plan and also procurements plan

Mr. Riaz Hussain Provides the continuous contact with the market trends

Mr. Noor Ahmed Responsible as a supporting regarding different phases of the project

Mr. Abdul Khaliq Responsible as a supporting regarding different phases of the project

Mr. Adeel Shabir Responsible as a supporting regarding different phases of the project

Mr. Bakar-ul-Hassan Responsible as a supporting regarding different phases of the project

JOB DISCRIPTION OF HSSE CONSULTANCY FIRMS

HSSE CONSULTANTS HSSE consultants are responsible for the overall guidance in the project which will be discussed on different meetings throughout the project. on the other hand, guidance to different functional manager for smart moves in the project must be a part of consultants job.

HIRING OF SKILLED WORKERS

As the nature of the project says that the hiring of the skilled workers are the major part of the project so these skilled workers will be hired after the planning and before the execution phase. Mr. Fazal Muqeem is responsible for providing the detailed report for the all the recruitment in the process. Following are the required skills needed for our project:

Most important Required skills needed for construction

o Excellent communicator for different negotiation with the ownerso Problem solving attitudeo Have the ability to take the ownership of different complexitieso Sharp thinking processo Must have the excellent listening power

Criteria for all skilled workers must be at least 5 years experience with other construction companies.

Minimum age limit for my workers within 25-35 Formation of salaries plan for all these skilled workers must be on the following

competencies:.o Accountabilityo Achievement orientationo Communication and coordinationo Initiativeo Professional integrityo Team worko Change orientationo Impact and influenceo Planning and organizingo Team leadershipo Information seeking and researcho Problem solvingo Judgment and decision making

NOTE: People Excellence Department is responsible for giving all the ratings to each worker based on the actual level and required level in the project.

TRAINING NEEDS OF LABOR

The nature of the project told us that there are certain needs for training before the execution of the project. It includes:

Drivers training Different trainings on team work

Trainings for the construction phases

D EVELOPMENT O F P ROCUREMENTS P LAN

1. PLANNING AND CONDUCT PROCUREMENTS

After the detailed meetings from all the key stakeholders, and different experts in cost management, we are able to make a detailed report on the criticality of each item used in our project. In this whole process, our project team and other experts review the limits or boundaries of the project. The company (CATALYST CONSTRUCTION LTD) noticed that arrangement of 30% equipment must be outsourced from different manufacturing companies and the rest 70% must be internal arrangement of critical item. The most important part in the procurements is the arrangement of different machineries, so the company decided for the complete vendor bid analysis in this matter. Moreover, our cost accountants judged that the cost of fuel on these machines during these two years exceeds our limited budget. In this whole planning, for more accurate procurements CATALYST CONSTRUCTION LTD also hires HSSE (health, safety, security and environmental) consulting firm. Following table describes in detail of each item manufactured internally by CATALYST CONSTRUCTION LTD and the cost associated with it.

CONSUMABLE REQUIREMENTS

QUANTITY EACH

PRICE EACH

TOTAL

Air horn 5000 50 $2500Alcohol wipes for respirators

300 34 $10200

Anti seize can 589 67 $39463Battery, AA 4000 98 $392000Battery, AAA 5000 93 $465000Blade port blade metal 9800 340 $3332000Battery D 300 293 $87900Port band metal 290 77 $22330Blade sawzall 6’’ 898 432 $387936Broom, push 321 434 $139314Bucket plastic 5 gal 234 342 $80028Choker, nylon 2x 16 321 343 $110,103Choker nylon 2x4 213 444 $94572Choker nylon 2x18 321 332 $106572Cups drinking cone case 888 323 $286824Drill index 798 334 $266532Drop light 887 455 $403585Extension cord 100’ 898 664 $596272Extension cord 50’ 987 989 $976143Face shields clear 898 988 $887224Faceshield adoptor 987 654 $645498File half round bastard 547 868 $474796Fire blanket role 787 765 $602055Flashlight G cell 876 674 $590424GFCI three way 868 342 $296856

Grinding wheel 4/12x7/8x1/4

987 342 $337554

Grinding wheel 4/12x7/8x1/8

897 433 $388401

Hand wipes bucket 876 434 $380184Hard hat earbuffs 876 432 $378432Hole saw kit 567 324 $183708Hose, Air, 50' $0.00 668 342 $228456Knee Pads 759 354 $268686Lens Cleaning Station 47 455 $21385Lens, Clear 4 1/2" x 5 1/4"

658 654 $430332

Lens, Cutting #5 475 654 $309994Lens, Shaded 2" x 4 1/4" 689 456 $314184Light Bulb, 100W 585 78 $45630Light Stringer, 50' 475 89 $42275Light, Quartz 585 68 $39780Mid-Life Tablets or Equivalent, Box

477 89 $42453

Padlock Keyed Alike 548 46 $25208Paint Stick Black 686 688 $471968Paint Stick Yellow 586 245 $143570Paint Stick White 696 675 $469800Pipe Dope 595 876 $521220Rags, Box 759 467 $354453Rain Coat, XL 484 476 $230384Rain Coat, XXL 384 363 $139392Rice Paper 374 877 $327998Rope Grab 478 474 $2262Rope, ½ Manila, Roll- List qty. of ft.

458 686 $314188

Rope, ¼ Nylon, Roll- List qty. of ft.

568 878 $498704

Sharpie Marker, Black, Box

475 638 $303050

Soapstone 475 322 $152950Squencher or Gatorade, Case

474 234 $110916

Sweat Bands Tape, Caution Yellow

362 342 $123804

Tape, Danger Red 474 243 $115182Tape, Duct Roll 685 432 $295920Tape, Electrical Roll 253 343 $86779Tape, Scotch #33 437 213 $93081Tape, Teflon 1/2" 363 312 $113256

Tie Off Adapter 464 322 $149408Tie Wire, Roll 436 343 $149548Wafer Wheel, 4" 5/8" - 11 Spin On

475 234 $111150

Wafer Wheel, 6" 5/8" - 11 Spin On

596 324 $193104

Water Cooler, Igloo Type 5 gal

636 324 $20606

Wedge, Tube 253 324 $81972Zip Ties, Bag 8” 754 539 $406406

W ELDING E QUIPMENTS

Cups, Gas Lens #4

475 98 $46550

Cups, Gas Lens #6

465 788 $36640

Gas, Acetylene Cylinder

323 765 $24095

Gas, Argon Cylinder

323 675 $28025

Gas, Oxygen Cylinder

322 765 $24330

Striker, Single Flint

232 768 $18176

Torch Tip 0 455 878 $39490Torch Tip 00 654 788 $55352Torch Tip 1 456 778 $3547Torch Tip 2 Torch Tip 3

454 658 $29732

Weld Hood, Jackson, Flip Lens 2x4

459 687 $35333

Welding Jacket, Green XL

9879 678 $667962

Welding Jacket, Green XXL

8787 656 $576272

Welding Jacket, Green XXXL

8798 432 $300736

Welding Lead, 50'

8769 879 $777951

Welding Lens Cheater, 1.25X

8698 567 $431766


8799 567 $499033


8769 878 $699182

Welding Lens Cheater, 2.00

8890 654 $514060

Welding Rod, 7018 1/8 lbs.

9879 453 $445187


7768 654 $508272


9889 654 $467406

Welding Rod, 7018A 1/8 lbs.

8769 623 $563087


9877 432 $466864


9079 343 $114097


8990 342 $074580


9787 342 $347154


9899 434 $42166


4557 876 $3991932


9879 687 $6786873


6576 768 $5050368


7587 685 $5197095


7658 876 $6708408


8769 888 $7786872

Welding Rod, 5P+ 1/8 lbs.

8757 464 $4063248


8999 478 $4301522


8768 578 $5067904

Welding Rod, 6010+ 1/8 lbs.

323 546 $176358

Welding Rod, 6010+ 3/32 lbs. $

2321 765 $1775565

Welding Rod, 6010+ 5/32 lbs.

3434 568 $1950512


2342 646 $1512932


3223 754 $2430142


7653 654 $5005062

Welding Screen, 6’ x 8’

2343 655 $1534665

Welding Sleeves 9897 457 $4522929

S MALL T OOL R EQUIREMENTS

Air Arc 443 766 $339338Air Mover 342 765 $261630Arc Gouge 432 654 $282528Beam Clamp, 4 Ton

324 656 $212544

Beam Clamp, 6 Ton

879 654 $574866

Cart, 2 Wheel 876 765 $670140Cart, 4 Wheel 657 654 $429678Caulk Gun 653 654 $427062Chainfall, 1 Ton 676 987 $667212Chainfall, 2 Ton 453 645 $292185Chipping Hammer, Air 15lb

987 759 $749133

Clamp, C 10" 876 768 $62768Clamp, C 6" 676 457 $30932Clamp, C 8" 654 438 $28652Comalong, 1/4 Ton Comalong, 3/4 Ton

657 654 $42968

Comalong, 1 1/2 Ton

557 675 $375975

Comalong, 3 Ton 768 547 $420096Drill, Cordless 18V

765 657 $502605

Drill, Electric 1/2" 765 546 $417690Drill, Hammer Electric 1/2"

899 657 $590643

Fan, Box 764 776 $5864Fire Extinguisher, 10lb

453 654 $2262

Fire Extinguisher, 20lb

657 457 $300249

Fit Up Bar, 18" 567 648 $367416Flash Arrestor, Acetylene

654 657 $429678

Flash Arrestor, Oxygen

654 567 $0818

Gauge, 898 878 $788444

Acetylene Gauge, Oxygen 757 788 $596516Grinder, Air Burr 1/4"

765 789 $603585

Grinder, Electric 4 1/2"

875 765 $669375

Grinder, Electric 6" Angle Grinder, Electric 7"

876 765 $670140

Hammer, 4lb 798 657 $524286Hammer, Claw 987 765 $7555Hammer, Slag 876 764 $69264Impact, Air 1/2" 876 456 $3956Impact, Air 3/4" 987 787 $76769Impact, Electric 1/2"

765 647 $49955

Impact, Electric 3/4"

485 765 $371025

Jitterbug 587 764 $48468Knife, Utility 879 654 $574866Ladder, Extension 18'

765 764 $58460

TOTAL ESTIMATED COST ON ALL THR PROCUREMENTS = $33,027,387 Excluding all machinery………..

ACQUISITION OF MACHINERY

Acquisition of machinery is actually the tough task related to the complexity of the project. On the other hand, moving within budget constraints requires a deep understanding of the seller. To assure that the process must be within the scope, government of Pakistan deeply focused into this issue and moves side by side as the procurements goes on.

Moreover, for about more than four to five months our whole project team along with government of Pakistan shows keen interest in the selection of vendors. As the project continues in the next few years, so the most critical part is the availability of sufficient technology otherwise it will ultimately affect the project cost and time. HSSE consultancy firm also assures that available technology will be sufficient for the rest of the years. The main machinery requirements identified after expert judgment and negotiations are:

Heavy Duty Bucket Truck/Boom Truck

Crane Truck Dump Bodies Dump/Transfer Dump Truck Flatbed-Dump Truck Fuel/Lube Truck Grapple Truck Mixer/Asphalt/Concrete Truck Service/Utility/Mechanic Truck Vacuum Truck Water Truck

Medium Duty Bucket Truck/Boom Truck Crane Truck Dump Bodies Dump Truck Flatbed-Dump Truck Fuel/Lube Truck Mixer/Asphalt/Concrete Truck Service/Utility/Mechanic Truck Sweeper Truck Vacuum Truck Water Truck

V ENDOR B ID A NALYSIS

To purchase such a heavy our core project selected the following truck manufacturers;

Truck Manufacturers:

1. Freightliner Trucks2. International Trucks3. Ford Trucks4. Peterbilt Trucks5. Kenworth Trucks6. Mack Trucks7. Volvo Trucks8. GMC Trucks9. Isuzu Trucks10. Chevrolet Trucks11. Sterling Trucks12. Western Star Trucks

A Complete vendor bid analysis is shown in the following. It is based on the following factors.

TRUCK MANUFACTURERS

CREDIT TERMS

PRICES OF TRUCKS RANGE

WARRANTY PERIOD

Freightliner trucks 5/one month; net 2months

$9000-$20000

6months / 50,000

International trucks 5/one month; net 2 months

$10000-$30000

6months / 50,000

Ford trucks 4/one month; net 2months

$8000-$23000

6months / 50,000

Peterbut trucks 5.5/one month; net 2months

$11000-$20000

6months / 50,000

Kenworth trucks 6/one month; net 2months

$13000-$20000

6months / 50,000

Mack trucks 3/one month; net 2months

$8000-$20000

6months / 50,000

Volvo trucks 4/one month; net 2months

$11000-$20000

6months / 80,000

GMC trucks 6/one month; net 2months

$4000-$20000

6months / 50,000

Isuzu trucks 1/one month; net 2months

$15000-$20000

6months / 50,000

Chevrolet trucks 6/one month; net 2months

$7900-$20000

6months / 70,000

Sterling trucks 4/one month; net 2months

$9000-$20000

6months / 50,000

Western star trucks 3/one month; net 2months

$9000-$20000

6months / 50,000

On the basis of the preceding analysis, our core team members selected the two main main manufacturers on the basis of quality and best discount and warranty period.

CHEVROLET TRUCKS VOLVO TRUCKS

After the final meeting and negotiations the company selected Chevrolet trucks on the their best discount rates and the final rates on the procurements are given below:

Heavy Duty Purchases cost estimated in current market conditions

Bucket Truck/Boom Truck $9000Crane Truck $16000Dump Bodies $23000Dump/Transfer $13000Dump Truck $14900Flatbed-Dump Truck $12934Fuel/Lube Truck $13564Grapple Truck $15600Mixer/Asphalt/Concrete Truck $14090Service/Utility/Mechanic Truck $13657Vacuum Truck $17432Water Truck $17435

Medium DutyBucket Truck/Boom Truck $15432Crane Truck $14653Dump Bodies $11010Dump Truck $14987Flatbed-Dump Truck $16723Fuel/Lube Truck $16532Mixer/Asphalt/Concrete Truck $9000Service/Utility/Mechanic Truck $11050Sweeper Truck $8000Vacuum Truck $13054Water Truck $15999

TOTAL MACHINERY PURCHASING COST= $327,052

+OTHERS PROCUREMENT COST =$33,027,387

=

$33,354,439 MANUFACTURING OF GAS PIPELINES

Manufacturing of gas pipelines is the tough part for all of our project team as far as the quality and estimated cost is concerned. So various consultants are hired to maintain the best quality and the internal cost estimated in the manufacturing is given as follows:

NME OF THE GAS PIPELINE

DIAMETER Per km pipeline cost

LENGTH ESTIMATED COST

BM integrated gas pipelines

42’ 400000 25.66 km 10444444

TOTAL MANUFACTURING COST = 10 million

So by combining overall cost from all the procurements and manufacturing the net cost estimated is as follows

TOTAL COST ESTIMATED IS 43,798,883

D EVELOPMENT O F C OMMUNICATION P LAN

I

N

F

L

U

C

E I M P A C T

A B

CD

KEEP SATISFIED

MANA-GE CLOSELY

KEEP INFORMED

HIGH END

1. IDENTIFICATION OF STAKEHOLDERS

The stakeholders described below, come from project charter. Procurement documents are also required to ensure the two main contract parties which are the key stakeholders in this BM integrated gas pipeline. Moreover by looking on the industry standards or the past experiences of the government of Pakistan, we can realize those different issues with these stakeholders and how to cater these in this development. We realized that the previous contract almost two years before.i.e. PAKISTAN-IRAN gas pipeline provides us a handsome approach for smart moves.

Classification of different stakeholders in BM integrated gas pipiline contract

Classification of different stakeholders in this project is usually a critical issue to be defined. Key stakeholders are easily to be defined from the contract. So for others stakeholder’s analysis our core project team members pass each stakeholder into different steps to identify their interest expectations and influence on the project. These processes include:

o Interviewing different stakeholders to identify their impact on the whole project and interest from this project. (done by PROJECT CORE TEAM)

CORE MEMBERS

Mr. Kamran Zafar Mr. Ali Ahsan Mr. Ali Moazam Mr. Mubashir Sadiq Mr. Fazal Muqeem Mr. Abdul Khaliq Mr. Riaz Hussain Mr. Noor Ahmed Mr. Adeel Shabir Ms. Bakar-ul-Hassan

o By influence/impact grid

HIGH END

KEEP SATISFIED

LOW END

MONITOR

A CLASS STAKEHOLDERs

Description: These types of stakeholders include those that have low impact and high influence on this project. This stakeholder analysis shows that A class stakeholders includes…..

RESOURCE STAFF SUPPORT TEAM

B CLASS STAKEHOLDERs

Description: These types of stakeholders include those that have both direct impact and direct influence on this project. It includes:

GOVERNMENT OF PAKISTAN PROJECT MANAGER (KAMRAN ZAFAR) CORE TEAM MEMBERS

C CLASS STAKEHOLDERs

Description: these types of stakeholders include those that are not might be actively involved in the project but have the ability to create changes in it. It includes:

Support team member

D CLASS STAKEHOLDERs

Description: these types of stakeholders are those that have high impact on the project but not actively involved in the project these includes:

Political Leaders

Instead of all these quantification, our core project team also moves towards qualitative judgment through experts, which also shows more or less the same results as shown above……now the following table shows the particular list of stakeholders that are used in this project. Moreover stakeholders management strategy also shows their level of interest

S.NO NAME ORGANIZ-ATION POSITION

STAKEHOLDE-RS INTEREST IN THE PROJECT

CLASSIFICATION

ROLE IN THIS PROJECT

1 Government of Pakistan

Project sponsor

To minimize costs by smart movesTo increase the profits by providing long term services

External Responsible for providing all the financing of the project

2 Catalyst construction limited

Project handlers

To ensure that the project must be completed on timeTo minimize costs and maximize profits

Internal Responsible for the overall management of the project and provide SOPs for the project

3 Mr. Kamran Zafar

Project manager

To ensure that the project must be completed on timeTo ensure that all the status reports must be delivered

Internal Responsible for the handling of all the project phases

to the stakeholders on time

4 Mr. Ali Ahsan

CEO To ensure that the selected projected must be profitable by estimating cash flows

internal Provides the guidelines for the project, may be less involvement but has direct impact on the policies.

5 Mr. Fazal Muqeem

Director (people excellence)

To ensure that the HR plan must be completed on time To minimize costsTo maximize profits

internal Responsible for providing the detailed human resource plan for the project

6 Mr. Ali Moazam

Chief technical officer (CTO)

To ensure that all the requirements in the technical phase of the project

Internal Provides the guidelines in project and part in cost plan

7 Mr. Mubashir Sadiq

Chief financial officer (CFO)

To ensure that the cost plans must be delivered on time to different stakeholders according to the future needs

Internal Responsible for manufacturing of cost plan and also procurements plan

9 Mr. Riaz Hussain

Chief marketing officer (CMO)

To provide clear guidelines market trends of different materials .i.e prices

Internal Provides the continuous contact with the market trends

10 Mr. Noor Ahmed

Support team member

Part of the administration of the organization and to ensure that all the requirements related to the administration of the plan must be on time

Supporter Responsible as a supporting regarding different phases of the project

To minimize costs and maximize profits

11 Mr. Abdul Khaliq

Support team member

Part of the administration of the organization and to ensure that all the requirements related to the administration of the plan must be on timeTo minimize costs and maximize profits


12 Mr. Adeel Shabir

Support team member



13 Mr. Bakar-ul-Hassan

Support team member



2. PLAN COMMUNICATIONS

Description: plan communication of our project includes the different parts which include:

Overseeing the project charter which shows the list of deliverables Identifying the target audience of the project. Description of the proper delivery method and delivery frequency Who is responsible for?

The following table shows the above points in more detail with proper division. For the whole planning of communication needs, our project core project team uses a continuous communication loop model which includes a continuous repetition of four processes.

Communication Plan Table

Deliverables Type Target audience

Delivery method

Delivery frequency

Who responsible?

Status reports

Mandatory Project sponsor and other managers

Through e-mail

After every six months

Project manager (KAMRAN ZAFAR)

Registration documents of stakeholders

Mandatory Project sponsor

Through mail

Monthly Project manager (KAMRAN ZAFAR)

Stakeholders management strategy

All project core team members and Mr. ali ahsan (CEO)

Proper documents through courier services

After two months

Core team department

Updated documents according to emerging needs

Mandatory All project core team members

Proper documents through courier services

After every six months

Support department

Meeting schedules reports

Mandatory All key stakeholders in the project

Through e-mails

Monthly Project manager (KAMRAN ZAFAR)

3. MANAGE STAKEHOLDERS EXPECTATIONS

Before moving on this project, TOP 8 PLAN meeting schedule helps our company to manage the expectations of our key stakeholders in which our core team conducted individual meetings with stakeholders for addressing their issues. Different consultancy firms also hired to resolve the key issues of our stakeholders.e.g.HSSE consultancy firms Majority of the questions were directly link with the negative risks in these operations. (Detailed is given in the risk management plan)

Moreover Mr. Kamran Zafar and all of his core team members are responsible for the reports performances on these operations which include:

All the past performance of these operations till the report day. How much work completed till that time and who is responsible for whom.

TOP 8 PLAN

To manage the expectations of different stakeholders the top 8 plan provides the overall meeting schedule dates t different point in time in the project.

Meetings before the execution phase 2 meetings (must be informed through mails

Meetings in the mid of the construction process (after the mining phase is over)

5 meetings (must be informed through mails

Meetings at the end of the project (when the execution phase reaches at its final stages

1 meetings (must be informed through mails

………………………………………………………………………………………………

D EVELOPMENT O F Q UALITY P LAN

O VERVIEW:

Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken. It implements the quality management system through policy and procedures with continuous process improvement activities conducted throughout, as appropriate.

Overview of the Project Quality Management processes which include the following:

Plan Quality—The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.

Perform Quality Assurance—The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

Perform Quality Control—The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

CATALYST CONSTRUCTION Company also requires complete quality plan to meet the stakeholder requirements. The benchmark of our company includes six sigma which says that quality of your project must be at its best, at your best effort. To assure this our company also incurs certain types of costs such as training costs, a complete vendor analysis, testing, and inspections. To assure that all the things must be on time CATALYST Company hires the consultancy firm (HSSE COSULTANTS) for all the audit checks of our business. Specific dates of these checks are given below.

PERFORMS QUALITY CONTROL PLAN

STATUS REPORTS AUDITED BYSCOPE MANAGEMENT PLAN

HSSE CONSULTANTS

TIME MANAGEMENT PLAN

HSSE CONSULTANTS

COST MANAGEMENT PLAN

HSSE CONSULTANTS

QUALITY MANAGEMENT PLAN

HSSE CONSULTANTS

HUMAN RESOURCE MANAGEMENT PLAN

HSSE CONSULTANTS

COMMUNICATIONS MANAGEMENT PLAN

HSSE CONSULTANTS

PROCUREMENTS MANAGEMENT PLAN

HSSE CONSULTANTS

………………………………………………………………………………………………

D EVELOPMENT O F R ISK MANAGEMENT P LAN

O VERVIEW

The most critical part of our project is the risk management of risk because the as far as Pakistan is concerned various types of negative risks associated with this gas pipeline. The objectives of the risk management plan are to increase the probability and impact of positive events and decrease the probability of negative risks in the project. the most important parts in the planning phase of the risk are:

Planning and identification of risks Quantitative risk analysis Qualitative risk analysis by expert judgment Plans and strategies for handling of negative risks

Risk is an uncertain event in the project, if it occurs affects at least one project objective. Objectives can include scope, schedule, cost and quality. On the other hand, there are also important issues inside the organization (CATALYST CONSTRUCTION LTD) that are also to be reviewed, for example, lack of integrated management systems and dependency on other companies who cannot be controlled.

Our monthly meetings with different consultants ensure the type of attitude when the risk occurs which includes: perception, tolerances and other biases.

1. PLANNING AND IDENTIFICATION OF RISK

All the project core team hold different planning meetings to develop the risk management plan. Attendees in these meetings include:

Mr. KAMRAN ZAFAR (Project Manager) Mr. Ali Ahsan (CEO of the CATALYST CONSTRUCTION LTD) Mr. Fazal Muqeem (director in the people excellence department) Mr. Mubashir Sadiq ( chief financial analyst of the catalyst constion ltd) Mr. Ali Moazam (chief technical officer) Mr. Riaz Hussain (chief marketing officer) HSSE consultants

As we discussed previously, Pakistan is planning to improve the infrastructure of natural gas through pipelines in their countrry. For fully utilizing the imported gas, providing it to end customers, the infrastructure of gas pipeline is being developed. Therefore a huge investment is being carried out in this sector. During the last 10 years the network of main and distribution gas pipeline has been expanded by 85%. But the geological and geographical conditions of Pakistan are tough for the construction. On one side there are glaciers and high mountains, on the other side there is desert and plan of river Indus with extensive network of wide rivers and canals. There is always risk of earthquake,

landslides and floods. Instable Government policies, high rate of inflation, rapid change in material prices are also important risk factors. Looking the current geopolitics situation there is a persistent threat of war and terrorism in the country. All these factors make the situation very complex in quantifying the risk factors especially when the project is gas pipeline in which the impact factor of risk exponentially rise in case of risk occurrence. Moreover, due to the absence of modern project or risk management techniques and methodologies the projects are usually not completed in their planned time or budget. Effort has been made to quantify the associated risks of gas pipeline project on the basis of historical data. The research will be helpful to separate the most important risks from the trivial many for the construction of any sort of pipeline project in the northern areas of Pakistan.

Table 1(a) Showing Natural resources reserves in Pakistan and their usage (%):

SOURCE OF ENERGY SHARE (%)Natural gas 50,4

The discussion shows that, huge investment is expected in the field of gas pipeline construction domestic and cross boarders. Pakistan, not rich in experience of pipeline construction is looking for a technical and strategic partner for the pipeline construction, just after the final settlement of Pakistan-IRAN pipeline project is done expectedly in June, 2008.

Geological and geographical conditions of Pakistan are very complex for the construction of oil or gas pipeline projects. Almost 50 % of the total area of Pakistan is mountainous. The northern areas are having different chains of mountains coming from China and India (Himalaya, Karakorum) which meet with the mountain chains coming from Iran and Afghanistan (Koh Salman, Hindu Kush) in the northern areas of Pakistan. There is also an extensive net work of wide rivers and canals in Pakistan. As the intensity of crossing and obstacles in the linear part of pipeline, the over all cost of the pipelines and associated risks to complete project in planed framework also increases. The risk can also be associated with the type of topography of region. In summer temperature ranges between 45-50*C due to that glaciers melt and melted water goes to the Indus water system. The monsoon rains which occurs during June to August raise the river flows to high extend and ultimately floods occurs. The statistics shows that big floods in the history occurred in summer. Considering geopolitics of the regions there is a persistent threat of terrorism and war. The economic instability has added the problem due to that there is frequent change in economic parameters. All these are in fact potential risks for any construction project especially oil and gas pipelines in which risk are multiplied many fold and there is exponential rise in damage in case of occurrence of one or more risks resulting huge human and environmental losses.

Risk management process starts with the planning of risk management. For that meetings are conducted and it is mainly internal organizational effort for planning a course of

action for forth coming risk management plan. In that context, it is necessary to identify, categorize, analyze, and manage risks in projects.INPUT PROCESS OUTPUTSOrganizational environmental factor

Planning meetings and analysis

Risk management plan

Organizational process assetsProject scope managementProject management plan

the risks characteristics are different in different part of same country, in which the project is being executed. After identification for the safe of simplicity we can make Risk Breakdown structure (RBS) ,which help to visualize the whole scenario of risk management process. Considering project life cycle of gas pipeline project in Pakistan we can mainly categorize risk in two ways:

Risks during Construction Risk during Exploitation of oil and gas pipelines risks in gas pipeline construction

sector.

RBS make things simpler in visualizing the process of risk assessment or analysis. Once risks have been identified, they must then be assessed as to their potential severity of loss and to the probability of occurrence. Risk assessment/analysis is primarily a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity. Risk assessment is defined as a feasible detrimental outcome of an activity or action. Risk assessment process required two items:

The magnitude (Impact) of the possible adverse consequence (risk), and The likelihood (probability) of occurrence of each consequence.

Risk Breakdown Structure

Socio political risk

Socio economical

risk

Organizational risk

Investment risk

Technological risk

Security risk

Natural disasters

Ecological risk

Public safety and security

Political influence

Strikes, lockouts

Economic instability

Change in material prices

High inflation

rates

Change in scope

Unavailability of labor resources

Project not completed

on time

Credit availability

Fluctuation in the

currency

Disinvestment in the market

Design not in time

Complicated site

conditions

Lack of communicat

ion

War

Terrorism

Accident on site

Loss or damage to machine

Loss of human

resource

Earthquake

Floods

Landslides

Unexpected weather

conditions

Wind storms

Damage to water

resources

Loss of animal and

plant species

E XPLANATION OF R ISK B REAK DOWN F IGURE

Socio-political risk: it includes all the political instability in the country. As during the past few years we have noticed that Pakistan is in deep trouble in building the trust of their people. Due to this instability, there might be high probability of strikes and lockouts which will ultimately negatively effect our project due to delay or change in the government policies.

Socio-economical risk: during the past 10 years, detailed marketing surveys shows that inflation rate in Pakistan almost thrice than today due to its instability in the political section. So we can say that, if at certain point in time, our material prices are high then it will ultimately impacts our project objectives that is ti me and budget.

Organizational risk: this type of risk is due to the internal factors of the organization. Unavailability of the labor resources inside the company due to its poor planning incurs a lot of impact on the overall cost and time of the pipeline.

Investment risk: due to the fluctuations in the dollar value, this huge investment project will ultimately impact its boundaries. We can say that reduction of only one dollar in the currency will damage the 30% effort of the project and since this problem cannot be controlled so we must look towards the cash reserves to cater this situation.

Technological risk: the construction of these pipelines that is 1674 km long includes a very complex designing of pipelines. Due to this our company hired a very experienced consultancy firm.

Security risks: history shows that in the past Pakistan-Iran gas pipelines construction process, terrorist attracts on these pipelines reaches up to 141. On the other, PAKISTAN is in deep trouble in facing these terrorists attack during past few years, so we can say that probability of terrorism and war in Pakistan must be high. To cater this problem, Government of Pakistan actively involved providing security in the operations of these gas pipelines.

Natural disasters: again, we cannot control nor have the power to cater this problem but yes we can minimize the impact of earthquakes, floods through different experts of HSSE firm and also from the China.

Ecological risk: during the construction, our project team noticed that the cutting of rocks will ultimately affect its the animal species that is wolf, blue sheep.e.t.c

PROBABILITIES OF RISK

Earthquake 40%Floods 15%Landslides 44%Unexpected weather conditions 66%Change in scope of project 62%Insufficient technology 77%Construction not finished on time 62%Design not on time 40%Unexpected obstacles in rocks 70%Political instability 80%Change in the material price 84%Timely unavailability of labor 20%War 20%Terrorism 88%Loss of asset of human life 44%Damage to wild life 38%

STRATEGIES FOR NEGATIVE RISKS

AVOID TRANSFER MITIGATEEarthquake MFloods MLandslides MUnexpected weather conditions MChange in the scope of the project

M

Insufficient technology TConstruction not finished on time

T

Design not on time TUnexpected obstacles in rocks MPolitical instabilityChange in the material price TTimely unavailability of laborWar ATerrorism TLoss of asset of human life TDamage to wild life T

RESULTS AND RECOMMENDATION

1. Three most critical tasks calculated by Risky Project are Excavation, Transportation of Material and Stringing of pipelines. The most critical risks come out to be change in economic parameters, delay in approval from regulatory body, internal and external communication, earthquake and terrorism during construction and operation of gas pipelines.

2. The secondary risks like change in material prices, construction not finishedin time or budget and design not in time can be reduced or transferred to the other partyor organization by contract. However HSSE is designing, constructing and operating gas pipelines so risk can be eliminated by strengthening the internal organizational capacity for design, construction and operation.

3. Organizational or technological risk like insufficient resource planning or project management, change in scope etc can be eliminated by improving the process or application of new technologies available in this field. New state of the art technologies are helpful in managing change at any stage of the project.

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gas pipe line project report.

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Transcript of gas pipe line project report.