Project Budget And Schedule For Fuel Tank Repairs

Project Budget

The project aims at repairing the three large Fuel Tanks, as the condition of this tank is very bad. The tanks are over 50 years old and therefore the company has to pay $20000 per month as environmental fines. In order to avoid that the company is planning to repair the fuel tanks.

In order to develop an effective budget for any project, the project manager should acknowledge the importance of cost management by understanding the basic cost concepts in budget estimation. The importance of profits and profit margins and analysis of cash flow is utmost important in estimating the budget of a project. The budgeting process that is considered for developing the budget of this process is traditional line budgeting. In this budgeting approach, an amount of money is allotted for a specific duration and helps in spending the money according to the plan. Therefore, this budgeting theory is implemented for this case (Van de Vonder et al., 2008).

A budget is estimated for the whole project, which includes the costing of the staffs, materials and paint. The estimated budget for the whole project is elaborated in the following table-

Task Name	Duration Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Cost
Fuel Tank Repairing	148 days	$770,200.00
Project Starts	0 days	$0.00
Feasibility Study	8 days	$5,120.00
Technical Feasibility	4 days	$2,560.00
Operational Feasibility	4 days	$2,560.00
Requirement Analysis	4 days	$2,560.00
Meeting with Client	1 day	$640.00
Knowing basic Requirements	3 days	$1,920.00
Planning	25 days	$22,640.00
Technical Requirement	8 days	$5,120.00
Budget Estimation	13 days	$15,600.00
Documenting the Requirements	3 days	$1,920.00
Client’s Approval	1 day	$0.00
Implementation	103 days	$739,240.00
Repairing Tank 1	34 days	$234,320.00
4 Steel Patch	5 days	$10,000.00
Adding 4 Steel anchor on top of the tank	5 days	$20,000.00
Cleaning the tank	12 days	$1,920.00
Repainting the Tank	12 days	$202,400.00
Repairing Tank 2	34 days	$237,120.00
working on 7 Steel Patch	5 days	$11,400.00
Adding 4 Steel anchor on top of the tank	5 days	$21,400.00
Cleaning the tank	12 days	$1,920.00
Repainting the Tank	12 days	$202,400.00
Repairing Tank 3	35 days	$267,800.00
6 steel patch	5 days	$11,400.00
Adding 4 Steel anchor on top of the tank	5 days	$21,400.00
Replacement of main supply valve	5 days	$31,400.00
Cleaning the tank	10 days	$1,600.00
Repainting the Tank	10 days	$202,000.00
Project Handover	8 days	$640.00
Documents Handover	1 day	$640.00
Documents Archive	2 days	$0.00
Payment completion	2 days	$0.00
Client Feedback	2 days	$0.00
Client Sign off	1 day	$0.00
Project Ends	0 days	$0.00

Table 1: the budget estimation of the Project

(Source: Created by author using MS Project)

While preparing the budget of this project, the extreme conditions are kept in mind. The costing includes the cost of the materials needed as well as the staffing cost for the entire project. Since the accessing the fuel tanks is complex and difficult, the fare of renting a large and a small crane is included in the budget as well. Since the normal working of the tanks cannot be disturbed, the repairing works of the tanks are done one by one.

The assumptions made while preparing this budget are listed below-

1) The number of staffs assumed for patch repairing, adding steel anchor, cleaning and painting is sufficient for the project to be completed within time

2) The rate of the laborers will not increase in the couple of months

3) The materials needed will be readily available, and there will be no shortage of materials.

4) The cost estimated for the materials will be sufficient for fetching all the required materials.

The main objective of this project is the repairing of the fuel tank without disrupting the normal operations of the tank. The first tank approximately takes 6 hours to fill during which no works can be done. Similar is the case for tank 2 and tank 3.  Therefore, the project schedule is estimated keeping in mind this time constraints. Furthermore, the works on all the tanks are not started simultaneously in order to manage the work of all these tanks in a better method.

Proper project scheduling is important for implementing the project in according to the project aim and objectives. The different techniques and approaches involved in developing a proper project schedule include development of Gantt chart, analyzing the critical paths and so on (Larson & Gray, 2013). The major two techniques that are used for proper scheduling of a project include Gantt chart or milestone charts that is used to mark the significant events in the project life cycle and the critical activities of the project (Burke, 2013). Another important technique used for proper project scheduling is development of activity network or work breakdown structure that gives the detailed knowledge about the tasks needed to be completed and the dependencies among the different tasks along with the priorities (Kerzner, 2013).  

Project Schedule

The deliverables of the project are listed in the following table-

Task Name	Duration
Fuel Tank Repairing	148 days
Project Starts	0 days
Feasibility Study	8 days
Requirement Analysis	4 days
Planning	25 days
Implementation	103 days
Project Handover	8 days
Project Ends	0 days

Table 2: The Project deliverables

(Source: Generated by author using MS Project)

The Milestone of the project are elaborated in the following table

Task Name	Duration	Start	Finish
Fuel Tank Repairing	148 days	Wed 01-11-17	Fri 25-05-18
Project Starts	0 days	Wed 01-11-17	Wed 01-11-17
Feasibility Study	8 days	Wed 01-11-17	Fri 10-11-17
Requirement Analysis	4 days	Mon 13-11-17	Thu 16-11-17
Planning	25 days	Fri 17-11-17	Thu 21-12-17
Implementation	103 days	Fri 22-12-17	Tue 15-05-18
Project Handover	8 days	Wed 16-05-18	Fri 25-05-18
Project Ends	0 days	Fri 25-05-18	Fri 25-05-18

Table 3: Representing the Project Milestone

(Source: Created by author using MS Project)

It is assumed that the project will be completed within the given schedule and the workers will not face any difficulty in implementing the project within the allotted time. The chosen methodology for this project is Waterfall model approach.  Waterfall model is a sequential design process that is used in implantation of the project. Since the repairing of the fuel tanks will be completed one by one, therefore this project method will be best for successful implementation of the project (Balaji & Murugaiyan, 2012).

The merit of choosing waterfall model over agile methodology is that, it is a sequential process and therefore, the project is implemented according to the scheduled plan. Furthermore, the time of completion of the project generally remains unchanged in waterfall model, while in agile methodology; there remains a high chance for the project being not completed within the scheduled time, as different other project features are incorporated in the project while the project is in the implementation stage (Kerzner, 2013.).

The detailed work breakdown structure of the project is elaborated in the following table –

WBS	Task Name	Duration	Start	Finish
0	Fuel Tank Repairing	148 days	Wed 01-11-17	Fri 25-05-18
1	Project Starts	0 days	Wed 01-11-17	Wed 01-11-17
2	Feasibility Study	8 days	Wed 01-11-17	Fri 10-11-17
2.1	Technical Feasibility	4 days	Wed 01-11-17	Mon 06-11-17
2.2	Operational Feasibility	4 days	Tue 07-11-17	Fri 10-11-17
3	Requirement Analysis	4 days	Mon 13-11-17	Thu 16-11-17
3.1	Meeting with Client	1 day	Mon 13-11-17	Mon 13-11-17
3.2	Knowing basic Requirements	3 days	Tue 14-11-17	Thu 16-11-17
4	Planning	25 days	Fri 17-11-17	Thu 21-12-17
4.1	Technical Requirement	8 days	Fri 17-11-17	Tue 28-11-17
4.2	Budget Estimation	13 days	Wed 29-11-17	Fri 15-12-17
4.3	Documenting the Requirements	3 days	Mon 18-12-17	Wed 20-12-17
4.4	Client’s Approval	1 day	Thu 21-12-17	Thu 21-12-17
5	Implementation	103 days	Fri 22-12-17	Tue 15-05-18
5.1	Repairing Tank 1	34 days	Fri 22-12-17	Wed 07-02-18
5.1.1	4 Steel Patch	5 days	Fri 22-12-17	Thu 28-12-17
5.1.2	Adding 4 Steel anchor on top of the tank	5 days	Fri 29-12-17	Thu 04-01-18
5.1.3	Cleaning the tank	12 days	Fri 05-01-18	Mon 22-01-18
5.1.4	Repainting the Tank	12 days	Tue 23-01-18	Wed 07-02-18
5.2	Repairing Tank 2	34 days	Thu 08-02-18	Tue 27-03-18
5.2.1	working on 7 Steel Patch	5 days	Thu 08-02-18	Wed 14-02-18
5.2.2	Adding 4 Steel anchor on top of the tank	5 days	Thu 15-02-18	Wed 21-02-18
5.2.3	Cleaning the tank	12 days	Thu 22-02-18	Fri 09-03-18
5.2.4	Repainting the Tank	12 days	Mon 12-03-18	Tue 27-03-18
5.3	Repairing Tank 3	35 days	Wed 28-03-18	Tue 15-05-18
5.3.1	6 steel patch	5 days	Wed 28-03-18	Tue 03-04-18
5.3.2	Adding 4 Steel anchor on top of the tank	5 days	Wed 04-04-18	Tue 10-04-18
5.3.3	Replacement of main supply valve	5 days	Wed 11-04-18	Tue 17-04-18
5.3.4	Cleaning the tank	10 days	Wed 18-04-18	Tue 01-05-18
5.3.5	Repainting the Tank	10 days	Wed 02-05-18	Tue 15-05-18
6	Project Handover	8 days	Wed 16-05-18	Fri 25-05-18
6.1	Documents Handover	1 day	Wed 16-05-18	Wed 16-05-18
6.2	Documents Archive	2 days	Thu 17-05-18	Fri 18-05-18
6.3	Payment completion	2 days	Mon 21-05-18	Tue 22-05-18
6.4	Client Feedback	2 days	Wed 23-05-18	Thu 24-05-18
6.5	Client Sign off	1 day	Fri 25-05-18	Fri 25-05-18
7	Project Ends	0 days	Fri 25-05-18	Fri 25-05-18

Table 4: The work breakdown structure of the project

(Source: Created by author using MS project)

The resource requirement for this project is clear but the proper allocation of resources in necessary keeping in mind the complexity of the project (Phillips, 2013). The process of resource allocation helps in assigning and scheduling the resources available for the project in an economic manner (Kogan et al., 2017). It is the responsibility of the project manager to determine the proper timing of the available resources with the project schedule. The resource allocation of this project abides by the contingency approach, which includes funding of the resources and prioritizing the resources to be used according to the business objectives. It also indicates the less important resources that can be possibly sacrificed in the project do not fit according to the budget.

The different resources that will be mainly used for implementing the repairing works of the fuel tank are listed in the following table-

Resource Name	Type	Max. Units	Std. Rate
Project Manager	Work	100%	$80.00/hr
Steel Patch 2m2	Material		$10,000.00
Steel Patch 3m2	Material		$10,000.00
Steel Patch1.5m2	Material		$10,000.00
Steel anchors T1	Material		$20,000.00
Steel anchors T2	Material		$20,000.00
Steel anchors T3	Material		$20,000.00
Supply Valve	Material		$30,000.00
Workers	Work	2,200%	$35.00/hr
Paint	Material		$200,000.00
Cleaning Staff	Work	1,000%	$20.00/hr
Painter	Work	2,000%	$25.00/hr
Archieve	Cost
Business Analyst	Work	100%	$70.00/hr
Renting large crane	Cost
Renting small crane	Cost

Table 5: The resources used in the project

(Source: created by author)

The project manager is appointed for a developing a detailed project plan and ensuring the project implementation. A business analyst is required to check that the business is not hampered with the implementation of the project and the normal operational work remains unaltered with this project. Furthermore, the materials required for the project are listed below

1) Steel patches of sizes 2m2(4 pieces), 3m2(7 pieces) and 1.5m2(6 pieces).

2) 12 steel anchors required on the top of the tank

3) One main supply valve of 300mm in diameter and made of stainless steel

4) One large and one small crane in lent

Apart from the materials to be used, the major resources required for the project is labors and workers for implementing the project.

Since the project including cleaning and painting of the outside of the tank as well, the cleaning staffs and the painting staffs are also to be hired. They should have the knowledge about the fact that the tanks cannot be accessed only for a few hours a day, as while filling of the tank, it becomes impossible to work there due to highly flammable vapors venting from the tanks as they fill. Therefore, all the workers should have a detailed knowledge about the time when the tank docks for fuel filling.

The workers are the major resource for this project as repairing the tank from great heights is difficult and the site is triangular in shape, which makes its access more difficult.

The tanks are to be repainted and therefore the resource planning should include the amount of paint that will be needed for painting the three tanks.  The workers for painting the tanks should also be considered in the resource planning.

Therefore, this major resource will be required for completion of the project fuel tank repairing successfully.

The resource planning is done according to the schedule of the project and the resources that will be required for each project deliverable is also preplanned.

The potential resources stress point includes the availability of the workers and the continuous supply of the materials throughout the project. Since this is a complex project keeping in mind the various factors and constrains of the project, it is the responsibility of the project manager to ensure the proper availability of workers during the execution of the project.

The technique that can be used for proper management of the resource is laying out a detailed project plan during the project initiation. However, there are certain tools that can be used for proper managing of the resources. Hub planner is one such software that helps in managing the resources in a proper way.

Another resource required is the need of documenting the project phases and the project works before the project sign off. The benefit of project documentation is that, it will keep the records of all the works and phases the project has undergone.

Furthermore, resources management is an effective and efficient method of managing the resources of an organization. The project manager is responsible for proper resource management, which includes managing the financial resources, human resources along with the production resources.

Therefore, managing all these resources is necessary for managing the successful implementation of the project. Proper resources management is necessary especially for this project, as there are different constraints that are associated with the project, which includes not affecting the normal business processes, no work during the fuel filling hours and difficulty in accessing the Tank.

References

Balaji, S., & Murugaiyan, M. S. 2012. Waterfall vs. V-Model vs. Agile: A comparative study on SDLC. International Journal of Information Technology and Business Management, 2(1), 26-30.

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.

Kerzner, H. 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kogan, L., Papanikolaou, D., Seru, A. and Stoffman, N., 2017. Technological innovation, resource allocation, and growth. The Quarterly Journal of Economics, 132(2), pp.665-712.

Larson, E.W. and Gray, C., 2013. Project Management: The Managerial Process with MS Project. McGraw-Hill.

Phillips, J. 2013. PMP, Project Management Professional (Certification Study Guides). McGraw-Hill Osborne Media.

ProjectManagement: A Systems Approach to Planning, Scheduling, and Controlling – Harold Kerzner, Ebook Library 2013 (electronic resource)Book, Techniques for Determining a Project Cost Budget, 5 Ways top project managers allocate their resources, https://www.project-management-skills.com/project-cost-estimating.html

Van de Vonder, S., Demeulemeester, E. and Herroelen, W., 2008. Proactive heuristic procedures for robust project scheduling: An experimental analysis. European Journal of Operational Research, 189(3), pp.723-733.