This project deals with the installation of an upgrade to one of the environmental control systems at the Viltor Oil Refinery. Specifically a sump containment system is being upgraded. This paper outlines the project reporting plan that will be used to report the sump project’s progress to upper management. The expected outcome of the project will be discussed as well as how the operation of the new sump system aligns with the corporation’s goals and mission. Three learning points from the Applying the Project Life cycle simulation will be presented and their relevance to the sump tank project will be discussed. The paper provides budget estimates as well as a forecast of the time to complete the sump project and discusses the project closure process. Finally an explanation of the project audit process and how this process will be applied to the sump tank project will be provided.
Measures of success and Alignment with Company Goals
The sump containment system directs oil that is released from over pressurized piping into an emergency oil storage tank without spilling oil on the ground. Currently Viltor experiences on average 12 overflows of sumps per month. My goal is to reduce this number to 3 or fewer sumps overflows per month. I would consider my project to be a success when the refinery experiences three or less sump overflows per month over a 6 month period. The successful implementation of the project would result in a 75% reduction of potential environmentally unsafe incidents (Wolff, 1992)
By reducing the amount of overflows of oil from the sump, Viltor reduces the potential for oil leaking into the ground and eventually contaminating the underground aquifers of the local area, as well as the number of fines that Viltor receives from the EPA each year.
Budget Forecasts and Proposed Schedule
The entire sump project will be completed in 12 months at a total cost of $1 million. The proposed schedule of the sump project along with relevant costs is as follows. Having the designs for the system prepared and approved within the first 4 weeks at a cost of $100,000; Receiving all of the hardware for the project within 60 days from the start of the project at a cost of $250,000; Installation of the new sump system to be completed 9 months into the project at a cost of $400,000. Testing the new system to begin at 10 months into the project and having the new system fully operational 12 months into the project at a combined cost of 250,000 or less.
Project reporting is an integral part of project management, in that it keeps upper management, project sponsors, and clients involved and informed as to the progress of a project (Rosario, 2001).
For the sump project, project reporting will consist of written memos sent to upper management, monthly, as to the progress of the project. There will also be further Project reporting in the form of a quarterly presentation, complete with slides and PowerPoint presentation, by the project manager and select members of the project team to upper management. At each milestone of the project, upper management will be invited to physically tour the actual job site, led by a member of the project team. This physical and in person type of Project reporting allows upper management to actually see what is going on in the life of the project and allows them to have a clearer understanding of the written reports that they are receiving on a monthly basis.
Any concerns or questions that upper management may have as to the project, will be documented and responded to in 72 hours.
The sump project like all projects in the refinery must have an exit strategy. The requirements for termination of the project will be an excessive amount of Scope Creep and/or a shift in Company priorities and values. For example the refinery could decide to shift from environmental conservation and cost savings, to a mindset that focused on increasing production capacity, in which case the sump project would be terminated. Also any mechanical failure of the new sump system to perform adequately in the testing phase would lead to termination of the project. If any of the aforementioned requirements should happen during the life cycle of the project then the project will be terminated.
Project auditing is a process that consists of; project audit initiation; baseline definition; data basing; preliminary analysis; audit report preparation; and Project audit termination. In Project auditing the sequence of events is as follows, in the initiation phase the project audit team is assembled, whereupon they establish the operating procedures for the audit team and the timeline for the audit (LaBossiere, 2005)
. Next, standards are developed by which to judge the progress of the particular project that is being audited. Third information is collected and organized for examination; this is the data basing phase. A rough draft of the results of the audit is produced, along with recommendations for improvement of the audited project and plans for how to implement the recommendations (LaBossiere, 2005). Finally the result of the audit is discussed with the project manager prior to the release of the results of the audit.
Use of Project Auditing on the Sump Project
With the sump project, the project audit process will be used to analyze the progress of the sump project and to make recommendations as to possible ways to more efficiently use resources. The project audit process in my case will also make safety recommendations, as to how the project team can not only perform the work more efficiently but also more safely, as safety issues are a major component of all refinery work!
After the audit is completed, the recommendations of the audit team will be discussed with the project manager and project team to determine the feasibility of the audit team’s recommendations. If the recommendations are deemed feasible then they will be documented and implemented into the daily workings of the project team.
By following the above implementation and auditing procedures the sump project will be completed on time and on budget.
LaBossiere, R. (2005) Ok on Project Audit Hailed: High school Work has Left
Questions. Hartford Courant. Sep 8, 2005. p. B.3.
Rosario,J. (2001) On the leading Edge: A Project isn’t over when it’s over.
BusinessWorld. Jul 18, 2001. p.1.
Wolff, M. (1992). Working Faster. Research Technology Management.
Nov/Dec 1992. Vol. 35, Iss. 6; p. 10.