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Project Process Model for Olympics Activities - Case Study Example

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The author of the paper "Project Process Model for Olympics Activities" argues in a well-organized manner that staging and organizing an Olympic Games is a large undertaking both in terms of management and planning. Some key facts of it will be discussed…
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Extract of sample "Project Process Model for Olympics Activities"

TABLE OF CONTENT 1. Introduction 2 1.1 BACKGROUND 2 1.2 Statement of work: 4 1.2.1 Olympics activities on the whole: 4 1.3 Stakeholder identification and needs 12 1.4 System requirements 15 2 – Project Management 16 2.1 Project Process Model 16 2.2 Work breakdown structure 17 2.3 PERT Network and the probability of project success 18 2.4 Project cost estimation breakdown and planned value projection 20 3 – Risk Management 21 3.1 Risk Matrix 21 3.3 HAZOP Analysis 22 3.4 FTA 23 3.5 FMECA 23 References: 24 1. Introduction 1.1 BACKGROUND The Olympic Charter (by Pierre de Coubertin), specifies the goal of the Olympic Movement as the contribution through sports for building a peaceful and better world and educating youth on perils and disadvantages of practicing discrimination of any kind and play and live with a spirit of friendship, solidarity and fair play. Staging and organizing an Olympic Games is a large undertaking both in terms of management and planning. Some key facts are: 1. 11 000 athletes would be competing in about 300 events during the 16 days of the Games starting from 27th July 2012 and ending on 12th August 2012. 2. These athletes will be accompanied by 5000-6000 coaches and officials in addition to the 4000-5000 members of the family and friends. 3. 7000 sponsors are expected to attend the Games. 4. The mega event will be covered by 20,000 newspaper, radio, television, and internet journalists requiring state-of-the-art communications facilities throughout. 5. Approximately, 9 million tickets are expected to be sold, which includes the costs of spectators traveling to events in and around London.(Arup, 2002) 6. The Olympic Park will be built to include the Olympic Stadium, Aquatics Centre, Velopark, Hockey Centre, Paralympic tennis and archery facility, and there will be separate areas to stage basketball, fencing, modern pentathlon and handball. 7. Another 18 venues which already exist will be used for various events. These are mostly in and around London. 8. The organizers are planning to hold around 40 test events at the selected venues in preparation of the Games. Sources: LOCOG, the Olympic Delivery Authority, and the International Olympic Committee 1.2 Statement of work: 1.2.1 Olympics activities on the whole: The focus of the London 2012 Games is the new Olympic Park in east London, which will host the new sport venues and the Opening and Closing Ceremonies and athletics events. This park is located in the Lower Lea Valley and will have a seating capacity of 80,000 people. The London authorities are planning to transform the park into the largest urban park created in Europe. Broadly, the delivery and schedule of programs set by the Olympic Delivery Authority is for the seven years from July 2005 April 2012. The first two years were kept to acquire, plan and prepare the land area for construction activities. The idea was to ensure all land and other requirements should be procured and ready to use for the next step. The next four years have been set aside for the construction activity such as building the venues and infrastructure. And the final year for doing the test runs and doing the last minute changes etc. Initially, a budget of £2.375 billion was estimated to finance the transport, venues and infrastructure necessary to stage the Games. But with passage of time, this seems to have increased and the revised budget of over £9 billion has been announced in 2007. . The Olympic Park will be around 670 hectares and the necessary planning permissions have been taken. The provisional timetable and the major milestones are as follows : 1. The Site preparation activity – this includes any demolition work, remediation or investigations for other utilities and services has been scheduled from 2005 to mid 2008. 2. Tenders have been invited for designers in 2005 / 2006 and tenders from contractors were invited in 2006/2007. 3. The plan is to shift all the power and cable lines underground . This has been started in 2005 and is scheduled to be completed by mid 2008. 4. For the main stadium or the village – the procurement process has already started in 2005. On site construction will start in 2008 and it is scheduled to be completed by early 2011. 5. Similarly the Aquatics centre is scheduled to start construction in late 2006 and is expected to be completed by end of 2008. 6. And the Velodrome and the BMX arena – the construction to start in January 2007 and scheduled to be completed in December 2008. 7. Then the three western arenas will start activity by mid 2007 and are expected to be completed by end of 2010. 8. The Athletes village will be started in 2007 and will be completed by the end of 2011. 9. The Media centre activity will start in mid 2008 and has been scheduled to be completed by end of 2011. (ALM London, 2006) 1.2.2 The Chosen Subsystem : Olympic Village and the Park We have chosen the Olympic park and the Village as our subsystem for the purpose of this report. The focus of the London 2012 Games is the new Olympic Park in east London, which will host the bulk of the competitions in addition to the opening and closing ceremonies on 27th July and 12th August respectively. It is the most grand and huge park and will be the largest in Europe in the last 150 years. The park is located in the Lower Lea Valley in East London. And as one of the most disadvantaged and underdeveloped area of the London city -- it is expected to benefit from these changes. In any case, the government has planned to develop this area and already lots of investment had been made in areas such as transport and housing, which will help in this endeavor. These major infrastructure investments in addition to the public transport, roads, utilities and environmental clean up, are expected to develop and sustain the area of Lower Lea Valley in East London beyond and after the Olympic Games. Some of the important points regarding the developing the Olympic Park site will involve: 1. 3,000 meters of river and 3,800 meters of canal will need to be dredged and cleaned up. 2. 3 million cubic meters of soil will be cleaned and moved. 3. New Roads which are about 10 kms long are being laid. 4. And over 150,000 seats will be installed in various venues across the park. 5. Ten railway lines will be connected to the Olympic Park such that there will be a new train arrival in the intervals of 15 secs during peak hours. The Olympic park site development includes all the Olympic Park's infrastructure elements, the utilities, waterways, drainage, landscape, roads and bridges. The bridges are being laid out to facilitate more cohesive unit and allowing people across the area to remain united. Since the main development will take place here – this is the most important area. The plan is to convert this new Olympic site into an athletics-led venue later on after the games. It will also have a community centre, an educational library, IT centre in addition to a gymnasium and cafeteria. There will a separate complex for hockey complete with green turf etc. and will have a capacity of 20,000 people. It will also have warm-up and training pitches. Similarly, The Velopark will have the Velodrome and BMX track, each having a seating capacity of about 6,000 persons. There will be a cycling speedway along with on road and off road circuits for cycling competitions. The Aquatics Centre will consist of two 50m pools and a 25m diving pool. This will have a seating capacity for 20,000 people. The accommodation for the athletes and officials will be another crucial aspect of the development project. It would be great idea to convert them into environmentally friendly housing option for people after the games are over. The plan is to make around 3,600 units of accommodation. The houses will be built around communal squares and courtyards with Four to 13 storeyed residential units. To allow for more environment friendly nature of construction, the park will have power sources which are run on are using sustainable sources of renewable energy. The water management and waste management will also run on similar lines of recycling and regeneration of energy. (London 2012 Olympic Park Masterplan) The construction of Olympic village or park will involve activities right from the beginning such as land procurement and land cleaning and getting it ready for use etc The land for the Olympic park will be acquired and the estimated budget is of £665 million Then there are some activities which need to be done prior to construction to clear the acquired land. These are activities such as under grounding the overhead power lines on the area of the Olympic Park. These will need to be re-routed through new cables under the ground in two tunnels that are six km long and some 30 m below the ground. This activity alone is estimated to cost around £250 million. After the cables have been laid down and commissioned, the power will be switched from above the ground to underground. Then there will be operational costs of various agencies responsible for undertaking these works. For example the Olympic Delivery Authority which came into being on 1 April 2006 have appointed various officers for different activities. The operating costs for this agency are expected to be around £25 million. Similarly another agency LOCOG’s operating costs will be around £26 million for year 2006-07. But there are some costs which will not be billed as Olympic costs as they will anyway occur when the development work is started in the East London. These will be handled by the Government of UK and they are expected to give around £1.044 billion towards the costs of such non-Olympic infrastructure. These Non-Olympic costs include expenditure on infrastructure such as the under grounding of power lines. And similarly some of the costs such as building of roads, bridges and tunnels, will be shared by government and the Olympic agencies as they are assumed to be 75 per cent Olympic costs and 25 per cent non-Olympic costs. See table 1 below for some rough estimates. Table 1 : LOCOG’s estimated revenue and expenditure, summarized from the London 2012 Candidate File (in 2004 prices) Expenditure % £ million % Sports venues 261 17 Information systems 204 13 Administration 159 10 Olympic Village/accommodation 136 9 Transport 124 8 Games Workforce 117 8 Paralympic Games 90 6 Telecommunications and other technologies 63 4 Advertising and promotion 58 4 Ceremonies and cultural program 57 3 International Broadcast Centre 29 2 Security 23 1 Catering 13 1 Internet 13 1 Medical Services 12 1 Pre Olympic events 12 1 Other miscellaneous 102 7 Other contingency 66 4 Total 1,539 100 Source: London 2012 Candidate File For our subsystem, the total cost should be around 2500 million £ 1.3 Stakeholder identification and needs The Olympic Park project is a huge project which comprises of a series of small and interrelated and interdependent projects. For effective management of this complex project, it is important to list down all the stakeholders and their needs as well as the factors of time, cost and quality need to closely monitored. These three factors are so related that any changes in one of them will lead to changes in other two specially compromises and trade offs. For example if there is any delay in meeting delivery schedules of any of the construction activities – the costs will go up and to meet the deadline ( which is non-negotiable) , the quality may go down. Both the conditions will lead to undesirable consequences Now let us take a look at the Key organizations and groups involved in the delivery of the London 2012 Olympic Games. There are three principal stakeholders in the project management and delivery of the Olympic Park. They are : the Government of UK which is represented by the Department for Culture, Media and Sport, the Mayor of London and the British Olympic Association. In addition to these there are many other bodies which have been setup for proper functioning and planning of resources and actual activities. Two new bodies have been set up -- the Olympic Delivery Authority and the London Organizing Committee of the Olympic Games and Paralympic Games (LOCOG). See figure 1 below for some of the key stakeholders. Source : National Audit Office, 2007 The other parties include the contractors, land surveyors, project managers, suppliers, the Olympic Delivery authority, LOGOC, Land Development agency, Road authorities and Waterways authorities etc. Thus the construction contractors will need to work closely with water authorities, road authorities, power supply authorities, security authorities to name a few. 1.4 System requirements 1. 3,000 meters of river and 3,800 meters of canal will need to be dredged and cleaned up. 2. 3 million cubic meters of soil will be cleaned and moved. 3. New Roads which are about 10 kms long to be laid. 4. And over 150,000 seats to be installed in various venues across the park. 5. Ten railway lines will be connected to the Olympic Park such that there will be a new train arrival in the intervals of 15 secs during peak hours. 6. Two tunnels of 6 km each to be made for cabling. 7. 3400 units of accommodation to be built. 8. Proper waste management system. 9. Efficient Power sources. 10. Efficient water management of the park. Optional : 11. Planning for use of all these facilities after the games are over. 12. Liaising with transport authorities for providing transport services for the athletes and officials to different venues. 2 – Project Management 2.1 Project Process Model • Describe your key project processes by adapting those described in CMMI. Use the standard notation for process diagrams given in the notes. Capability Maturity Model® Integration (CMMI) is an approach of process improvement that helps organizations to identify and define the essential elements of an effective process. (Centre for technology, 1998) It contains about 22 process areas that describe the various aspects of product development that are to be covered by organizational processes. All these 22 processes can be grouped together based on the maturity levels or process area categories. Thus the main four process area categories used in CMMI for Development are : Project Management, Process Management, Engineering, and Support. The Project Management talks about the Project planning, control and monitoring in addition to risk management while the Process management discusses the organization process focus, performance and training aspects. The Engineering element comprises of the Actual requirements, their development and verification and validation and finally the Support system includes the measurements and analysis and the Quality control and assurance techniques. The key process areas for our sub system i.e the construction of Olympic park includes : 1 Setting up of master plan for the construction activity and its contracting o suitable contractors. 2 Procurement of materials, equipment etc. needed for the project. 3 The construction activity within the estimated time frame. 4 The Project to be completed within the estimated budget and of he desired quality. 5 The technical requirements such as electricity, water, transport, security and other services 2.2 Work breakdown structure A WBS is the tree structure of project planning that establishes the actual work elements and the activities that make up that project. It is basically a summary of all project activities that need to be undertaken to finish it. A WBS shows the relationship between all elements of a project. And this can then be used to provide very good estimates for cost and schedule control. (Booz, Allen, Hamilton, 2003) See below for the WBS for our subsystem. Fig 2 : The Work breakdown structure. 2.3 PERT Network and the probability of project success The Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM) are the two major techniques for monitoring and controlling the performance of a large project. (Lindo systems, 2003) Identifying the set of activities that must be performed in a way that the project finishes in lowest possible time is the Critical path method. This is done by using Nodes where nodes represent the activity in the network. The relationship between two nodes or activities is shown by the link between the two nodes. We will use this method to draw our activities. A – Underground cabling,(3 years) B – Canal Widening, (3 years) C – Leveling, (6 months)D – Main Stadium, (3 years) E- Cycling center, (1 years) F—Aquatic center, (2 years) G – Transport, communications and security services, (3 years) H – Final completion. As is clear, Activity C cannot be started until A and B are completed and Similarly, activities D, E and F will start only after the completion of Activity C. Activities A and B can start simultaneously and D, E and F can also go on simultaneously along with G 2.4 Project cost estimation breakdown and planned value projection Activities Cost (In million) A – Underground cabling,(3 years) 250 B – Canal Widening, (3 years) 250 C – Leveling, (6 months) 150 D – Main Stadium, (3 years) 700 E- Cycling center, (1 years) 450 F—Aquatic center, (2 years) 500 Total 2300 3 – Risk Management 3.1 Risk Matrix Risk Assessment is a process to identifying risks in our process or project and finding out means and methods to reduce risks. Both qualitative and quantitative methods are used for risk assessment. Some of them are: • Hazard and operability (Hazop Studies) • Failure Tree Analysis (FTA) • Event Tree Analysis (ETA) • Primary Hazard Analysis (PHA) using Dow index • Risk Assessment (With Risk Ranking technique) (Aptikar, 2005) Risk Matrix is a methodology that helps to identify, prioritize and manage key risks on our project. The main risks associated with our project are: 1 Construction of the Park against an immovable deadline. 2 The need for strong management and delivery structures because of involvement of multiple groups. 3 The Budget and cost implications if the project is delayed. 4 Applying effective procurement practices. 5. Implementing effective monitoring and risk management techniques. CONSEQUENCES Consequence Range Consequence criteria 4 Loss of prestige, Games not held. 3 Loss of prestige as Venues are shifted to already present stadiums in UK 2 Only one part of the game say cycling or aquatic center shifted to other venue. 1. Small hitch ups such as delay in starting an event or program but acceptable. 3.3 HAZOP Analysis The Hazard and Operational Analysis is done to consider the possibilities of an accident occurring and taking measures to prevent them. (Kleitz, 1992) It is important to identify the most important things that can go wrong accurately and we should be able to predict its consequences on the public, employees and stakeholders in general. It is also necessary to know the frequency of its occurrence (HAZAN) (Lewin, 2004). For our project – there are no specific operational and safety hazards. There is a possibility of part of building collapsing – its frequency is going to be very very rare.But the consequences if it actually happens will be very very severe since besides loss of property and lives( depending on the time it happens) the prestige and loss of face will be tremendous for the authorities. Thus it is important to check and take into account the quality of materials being used in the construction. 3.4 FTA • Conduct an FTA of a relevant part of your project. The Fault Tree analysis are generally used in safety concerns of critical systems especially where human life is involved. (NASA Lewis Research Center, 1996) The idea is that if there is a critical failure mode, then all possible ways of occurrence of that mode should be identified and prevented. There is no need for such an analysis for our case. 3.5 FMECA . Failure modes, effects, and criticality analysis (FMECA) is a methodology to identify and analyze the failures from design, system or process before the final product is ready. Used mostly in product development life cycles. (Rausand, 2004) In our system that is the construction activity – this technique is not applicable in totality. But for each small activity – there are risks associated that can be in general assessed using risk matrix. References: ALM London Briefing Paper, 2005, Olympics 2012 Update Key developments for the staging of the London 2012 Olympic Games Aptikar, D, 2005, TECHNICAL REVIEW, Risk Matrix Bellsoftware.net Arup, 2002, London Olympics 2012 Costs and Benefits Booz, Allen and Hamilton, 2003, Earned Value Management Tutorial Module 2: Work Breakdown Structure Center for Technology in Government, 1998. A Survey of System Development Process Models CTG.MFA – 003 Kletz, T, 1992, HAZOP and HAZAN, 3rd Ed., IChemE Lewin, D. 2004. LECTURE 12: HAZARD AND OPERABILITY (HAZOP) STUDIES, Department of Chemical Engineering, Technion, Haifa, Israel LINDO Systems, 2003 Application Survey Paper, Project Planning with PERT/CPM LOCOG, the Olympic Delivery Authority, and the International Olympic Committee National Audit Office, 2007. Preparations for the London 2012 Olympic and Paralympic Games –Risk assessment and management NASA Lewis Research Center, 1996, FTA Rausand, M., 2004. System Reliability Theory (2nd ed), Wiley Read More
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