Scenario analysis in Project Management
Congratulations, your company (Team NPP) has been appointed as the EPC contractor for the new Nuclear Power Pl
at Dadra & Nagar Haveli. Kindly plan the activities and schedule them so that the Plant is ready to receive nuclear fue
the shorted possible time. You have been awarded a cost-plus contract with Bonus for early completion. Your compa
will be eligible for a hefty bonus of Rs 50 lakhs per week saved. Your objective is to maximize it. Your documented ti
for completion is 85 weeks.
The Nuclear power plant consists of three islands: 1. Power station 2. Thermal Power generating Plant and 3. Nuclea
Reactor. Each island is a physically separated area with independent access, services and utilities.
Activity Activities of Team NPP
#
1
Project Launch
2
Pre-project activities -site
3
Pre-project activities -Liaison
office
4
Setting up the Utilities and
Facilities
Description
Duration & Explanatory
notes
Appointment of Team NPP as EPC
Contractors
Site securing, getting approvals
and clearances, appointment of
Project Management personnel,
setting up a Project Management
Office(site) and Liaison office at
Mumbai to coordinate with Your
Principal.
Setting up a Liaison office at
Mumbai to coordinate with Your
Principal.
Setting up the Utilities like
substation and stand-by power
generation facilities (100% stand
by), water supply, sewerage
treatment plant. Site
accommodation for Project Staff
etc. Sub-contractor personnel will
be ferried in and out of the site
and will not stay at site. Canteen
serving drinking water, food and
beverages will be operational
(through a third party). Field
hospital.
1 week
Preceding
activities
0
10 weeks
0
4 weeks
0
12 weeks
0
5
Project engineering
6
Procurement Logistics
7
Safeguard, physical
protection, periphery lighting
firefighting equipments
8
Site preparation
9
Erection
10
Equipment installation
Separate Teams independently
work on Project Engineering for
Site Preparation, Erection and
equipment installation
4 weeks for site
preparation,4 weeks for
Erection and 4 weeks
for month for
Equipment installation
for each island. Testing
also calls for Project
engineering and the
duration is 2 weeks.
However, Project
Engineering for Testing
can be done only after
Equipment Erection
Procurement is carried out by Your Logistics details are
Principal and only logistics from
given separately and
Port of arrival to site has to be
Equipment installation
managed by NPP (Only shipping
can start only after the
cost of barges will be borne by
items arrive at site
your Principal)
Appointment of Security agency
4 weeks for each island
for 24 x 7 manning of gates and
check posts within the project
area. Setting up of periphery
lighting and security and
firefighting equipment
Each island is prepared in a
6 weeks for Power
different manner. Contractors are station, 18 weeks for
different. No common equipment Thermal Power
or manpower. It is possible to start generating plant, 20
site preparation from two sides
weeks for Nuclear
and thus activities may be carried
Reactor.
out in parallel. The duration
reduces by 33/13% for power
station island (island No.1), 40%
for Nuclear Reactor (island No.3),
and 33/13% for Thermal power
generating plant island (Island
No.2)
Erection at each island is carried
20 weeks for Power
out by different contractors and
station, 30 weeks for
no common equipment or
Thermal Power
manpower. By doing erection with generating plant, 30
multiple crews it is possible to
weeks for Nuclear
reduce the time by 40% for each
Reactor.
of the islands.
Installation at each island is
6 weeks for Power
carried out by different
station, 18 weeks for
contractors and no common
Thermal Power
equipment or manpower. By doing generating plant, 20
installation with multiple crews it
weeks for Nuclear
Reactor.
3
3
4
7
8
9
is possible to reduce the time by
40% for each of the islands.
11
Testing without fuel
Third party testing and inspection
for certification.
4 weeks for island No.1,
6 weeks for island no. 2
and 8 weeks for island
no.3
10
Logistics
Due to the specialized nature of cargo, cranes available can handle only one ship at a time. Secondary cranes are use
for loading barges and 12 barges can be handled at a time. However, up to 10 ships can be berthed at a time. At the
installation site also 6 barges can be handled (unloaded) at a time. Supply will be in seven shiploads and each shiploa
will be transported in 12 barge loads. There is no shortage of barges. You can schedule the arrival of ships very
accurately.
Unloading time per ship
1/2 a week
Loading time for barge
Transit time of barge from
Port to site
one week for six barges
1/2 a week
Logistics Managers fee
To be paid by Team NPP and it is charged from the date of arrival of the fir
ship at the port till the last barge reached the site. (Rs 10 lakh per 1/2 a we
It is paid by the Principal and then deducted from the bonus payable to yo
arrive at the Net Bonus Amount.
Q.1 What is the minimum possible Project Duration? What is the maximum Bonus (Net Bonus Amount) that can b
achieved?
Q.2 What is the minimum amount of Logistics Manager's fee that can be obtained by efficient Logistics Manageme
Q.3 Prepare a Gantt Chart for the Project
Important Note:
Please state your assumptions (if any) and the reason why such an assumption was(were) needed
on a separate sheet.