PPMP20010 Heathrow Terminal 5 Project Status Report Assessment 1 Answer

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Question :

PPMP20010 - Assessment 1

Part A

Project Status Report (time based)


  • Project Information

Project reporting is the act of collecting and distributing project information. Project information is distributed to many groups of stakeholders and should be adapted to provide information at an appropriate level, format, and detail for each type of stakeholder Reports are either time-based or event based. 

Please complete the time-based status report at the end of week 8 for the case study provided within the assessments section in Moodle. (Heathrow Terminal 5 project, main terminal roof erection sub-project).

Supporting documentation for the case study is listed in Moodle. Please familiarise yourself with the information provided, especially about the main terminal roof design and erection method.

Project name: A brief name to describe the project

Date: Date of the current status report

Project ownership: Area responsible for the project

Prepared by: Name and position

Distribution list: List of those receiving the report, their positions and role in the project.

  • Gantt Chart with budgeted cost

This chart represents the original baseline plan for the project. The original Excel file is available on Moodle.

Gantt Chart with budgeted cost

  • Actual performance

This chart represents the work performed with the actual cost incurred.  The original Excel file is available on Moodle.

Actual performance



Heaththrow terminal

  • Variance analysis

Complete the table below. Calculate the values at the data date and show the formula used. 

Describe the current status of the project in terms of time and cost performance.

Acronym
Term
Formula
Value
PV (BCWS)
Planned Value


EV (BCWP)
Earned Value


AC (ACWP)
Actual Cost


SV



CV



SPI



CPI



Description of the current status in terms of time and cost performance:



  • Forecasts- values at completion

Calculate the following forecast values and motivate your choice of the EAC formula used


Acronym
Term
Formula
Value
EAC



ETC



VAC



TCPI



Motivation for use of EAC formula:



  • Forecast Completion Date

Even though a more accurate forecast completion date is derived from the updated schedule, the forecast duration could also be derived from the Schedule Performance Index (SPI) and can help forecasts the end date of the project (see AS 4817-2006 pp.13-15 Section 2.3.2).  

Calculate the forecast project duration using the SPI of the project at the data date.

Forecast duration formula
Forecast duration in weeks


Milestone Report

Milestones are events on a schedule which marks the completion of a key activity (Managing PRINCE2 (2017) Page 113 & 155).


Milestone Task
Scheduled Completion
Projected Completion
Actual Completion
Issues/reasons
Lift 1




Lift 2




Lift 3




Lift 4




Lift 5




Lift 6










  •  issues, risks and other matters Include any other matters for reporting such as issues, risks and any other relevant matters and their potential impact on the project in the future, that need to be brought to the attention of the stakeholders.
Issues
Risks
Other matters












  • learning from this exercise

Describe in your own words what you have learned from this exercise. E.g. would comparing the budget with actual cost alone have given an accurate picture of the project?

List at least 3 lessons learned.

Lesson 1
Comparing the budget with actual cost alone would/would not have given an accurate picture of the project because…
Lesson 2

Lesson 3

PPMP20010 - Assessment 1

Part B 

Exception Report (event based)

An exception report is produced when a stage plan or project plan is forecast to exceed tolerance levels set. It is prepared by the project manager in order to inform the project board of the situation, and to offer options and recommendations for the way to proceed. (Managing Successful Projects with PRINCE2, 2017, Section A.10).

An exception report is event driven and is compiled by the project manager as soon as tolerances are forecast to be exceeded.

Please complete the report in the context of the case study provided within the assessments section on the unit Moodle website. (Heathrow Terminal 5 project, main terminal roof erection sub-project).

The report is to follow the PRINCE2 (2017) format for exception reports, as described in Appendix A.10.

The Heathrow terminal 5 main building roof erection is considered to be a project stage for the purpose of this exercise, with the following tolerances allowed:

Cost:+ 10%-15%

Time:+1 week, no negative tolerance given.

Project Information

Project name: A brief name to describe the project

Stage:A brief name to describe the project stage

Date: Date of the current status report

Project ownership: Area responsible for the project

Prepared by: Name and position

Distribution list: List of those receiving the report, their positions and role in the project.

Establish the need for an exception report

Motivate your decision to compile and submit an exception report to the Project Board.

Provide reasons and supporting documentation for your decision.

Exception report

Complete the report with all relevant and necessary information as per Appendix A.10 in PRINCE2 (2017)

Carefully study the report derivation (inputs), format and presentation and quality criteria.

Describe the possible consequences in the context of the full Heathrow Terminal 5 project, its stakeholder expectations and challenges (see literature as per the links provided).

Exception title

An overview of the exception being reported
Cause of the exception
A description of the cause of a deviation from the current plan
Consequences of the deviation
What the implications are if the deviation is not addressed for:

  • The project


  • Corporate, programme manager or the customer


Options

What options are available to address the deviation and the effect of each option on the business case, risks and tolerances
Recommendation
Of the available options, which is recommended, and why?
Lessons
What can be learned from the exception, on this project or future projects?


  • learning from this exercise

Answer the questions below in your own words.

Question 1
What are the differences between a time-based report and an events-based report?
Question 2
What are the advantages and disadvantages of an events-based report for the project?
Question 3
What are the advantages and disadvantages of an events-based report for the project manager and the project management team?


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Answer :

PPMP20010 - Assessment 1

Part A

Project Status Report (time based)


  • Project Information

Project name: Heathrow Terminal 5 Project (Main Terminal Roof Erection Sub-Project)

Project ownership: Civil Aviation Authority (CAA), British Airport Authorities Ltd., Structural Engineer – ARUP, Steelwork Contractor- WATSON STEEL STRUCTURES LTD

Distribution list:  Civil Aviation Authority (CAA)

                               British Airport Authorities Ltd.

  • Gantt Chart with budgeted costGantt Chart with budgeted cost
  • Actual performanceActual performanceActual performance2
  • Variance analysis
Acronym
Term
Formula
Value
PV (BCWS)
Planned Value
(Planned % Complete) X (BAC)
=2,100,000
EV (BCWP)
Earned Value
% of completed work X BAC (Budget at Completion)
= 1,750,000
AC (ACWP)
Actual Cost
Actual cost incurred till week 8
=1,960,000
SV
Schedule variance
EV-PV
=1,750,000 – 2,100,000 = (-)350,000
CV
Cost variance
EV- AC
= 1,750,000 – 1,960,000 = (-) 210,000
SPI
Schedule Performance Index
(Earned Value) / (Planned Value)
= 1,750,000/2,100,000 = 0.83
CPI
Cost performance index
(Earned Value) / (Actual Cost)
= 1,750,000/1,960,000 = 0.89
Description of the current status in terms of time and cost performance: The SPI is 0.83 which is less than 1 . This means that the  project is behind the schedule. 
The CPI is 0.89 which is less than 1. This means that the project is over budget. That is the spending is more than planned. 
Since the value of SPI is less than CPI it shows that the project more behind the schedule than over budget.

  • Forecasts- values at completion
Acronym
Term
Formula
Value
EAC
Estimate at Completion
EAC = AC +(BAC – EV)
= 1,960,000 + (3,930,000 – 1,750,000) = 4,140,000
ETC
Estimate to Complete
EAC - AC
= 4,140,000 – 1,960,000 = 2,180,000
VAC
Variance at Completion
BAC - EAC
= 3,930,000- 4,140,000 = (-)210,000
TCPI
To- Complete performance Index
(BAC – EV) / (EAC – AC)
 = 2,180,000/2,180,000 = 1
Motivation for use of EAC formula: The EAC formula used is EAC =  AC +(BAC-EV). This formula is used because of following reasons:
  1. We know that there are deviation in actual performance from planned so we cannot use the formula where there is no deviation
  2. The future estimates have not been revised, thus the planned budget and schedule remains the same
  3. Since it is believed that the project will cover up the loss of time and over budget and so the future deviations will be different from the current. Thus the EAC is estimated to be AC plus the remaining value of work to perform.

  • Forecast Completion Date
Forecast duration formula
Forecast duration in weeks
 Expected duration of project/SPI
= 18 weeks/.83 = 20.93 = 21.6 weeks
  • Milestone Report

The status report is dated : 20.04.2020 which is the completion of  week 8, the project completion dates are with  reference to the status report date.

Milestone Task
Scheduled Completion
Projected Completion
Actual Completion
Issues/reasons
Lift 1
Week 5
Week 5
Week 6
Delay in temporary steel work
Lift 2
Week 8
9.6 week – 30- April 2020
In progress
Bay 6 not yet completed
Lift 3
Week 11
13.25 weeks – 27- May- 2020
In progress
The delay based upon the delay in completion of earlier work and this starting of the work for the event late. The delay is calculated by assuming that the future activities will be delayed in same proportion as the past activities. 
Lift 4
Week 14
16.87 weeks- 18 June 2020
Not Completed
  • Do - 

Lift 5
Week 17
20.48 weeks – 15 July 2020
Not Completed
  • Do- 

Lift 6
Week 18
21.69 weeks – 24 July 2020
Not completed
  • Do -






  • issues, risks and other matters 
Issues
Risks
Other matters
  1. The project is architecturally innovative and hence needs expertise as in a large roof spanning 150m to a height of 40m and 400m long

The inability to construct might lead to redesigning of the architecture
The steel roof beans needs detailed control over work
  1. Large parts of machines and concrete is to be handles

Risk  of injury and loss of life to workers

  1. Since the use of steel was more in roof construction large prefabricated units were used  

Handling and transportation of these large units without breakage and loss
Construction of large units  was done 
  1. To ensure efficiency trial full erection  was done at fabrication site

Time consuming as unless the trial erection is perfect the onsite erection cannot start.
The engineers were overloaded with work as they to ensure perfection at both the sites.


Source: (steelconstruction.org, 2018) 

  • learning from this exercise


Lesson 1
Comparing the budget with actual cost alone would not have given an accurate picture of the project because the work completed in the cost incurred is also important. If the cost of work completed is equal to the budgeted cost of the work completed the project is on budget. However it is possible the project cost is equal to the budget but the work delivered is not satisfactory or complete. Therefore in Project management it is important to check the progress of the project from multifaceted angle and not only one factor (PMI, 2020). 
Lesson 2
There could be some uncontrollable reason for delay in schedule which can be technical or due to some uncontrollable factors.  The project deadlines and budget needs to be revised for the future activities on the basis of these factors so that the progress of the project can be managed efficiently. 
Lesson 3
The future progress of the project cannot be calculated on the past progress. It can improve or decrease depending upon the future environment. Thus the project manager should always has risk mitigation plans to minimize the risks to the project. Also the updated program should be communicated to the stakeholders on a regular manner to get their support.

PPMP20010 - Assessment 1

Part B 

Exception Report (event based)


1. Project Information

Project name: Heathrow Terminal 5 Project (Main Terminal Roof Erection Sub-Project)

Project ownership: Architect - ROGERS STIRK HARBOUR & PARTNERS, Structural Engineer – ARUP, Steelwork Contractor - WATSON STEEL STRUCTURES LTD, Main Contractor - LAING O’ROURKE LTD, Construction Manager – Mace ltd

Distribution list:    Civil Aviation Authority (CAA)

                            British Airport Authorities Ltd.

                                  Architect - ROGERS STIRK HARBOUR & PARTNERS

                                   Structural Engineer – ARUP

                                   Steelwork Contractor - WATSON STEEL STRUCTURES LTD

                                   Main Contractor - LAING O’ROURKE LTD

                                   Construction Manager – Mace ltd

2. Establish the need for an exception report

An Exception report is a very important piece of document for the effective functioning of the project. The document reflects on what is not right in the progress of the project. The document illustrates the areas where the project is lacking and the effect of these on the progress of the project (Accountingtools, 2020). The document is important as:

  1. It documents the mistakes that occurred in the project so that they can reviewed in future and avoided
  2. The reports shows the extent of deviation in the actual progress from the planned so that the stakeholders can take well informed decision regarding the project (Saunders, G. ,2016) 

3. Exception report

Delay in Schedule by more than 1 week 


The project is running behind the schedule by more than 1 week. Thus the delay is beyond the tolerant limits of the project. The planned schedule of the project was 18 weeks. However considering the current pace the expected completion of project will be in 21.6 weeks. This is 3.6 weeks behind the schedule and hence is an exception to be reported.
Cause of the exception
The sub project of rood structure was a complicated project as the roof was very vast to be constructed. It has the span of 165-metre (540-foot), and was treated as entirely independent from the interior of the building.  The project was a unique design and so to ensure efficiency the part of roof and façade for the terminal were first constructed at a false site in Yorkshire to see that the issues related to the tolerances and sequencing are properly tested. Once they are finalised the installation at the construction site were done (rsh-p.com, 2020). 
This led to delay in construction at the main site as certain changes were required tome made in design to make it risk free and more robust. 

Consequences of the deviation
The consequences of the deviations in the design were change and approval of the changed design by the engineer, updating the construction contractor about the change, changes in test site and then finally at the construction site. Thus the cost and time to the project both increased. 
The whole sub-project stands delayed unless the addition of more resources is done on the remaining part of the project to overcome the time lost. However the money lost cannot be recovered and the cost of the project is bound to increase. The increase in resources to complete the project on time will lead to further increase in cost of the project. 

Options



In order to avoid the delays in the completion of the project, the project manager needs to add more resources to the project in terms of labour and material. This will lead to increase in cost of project. Thus this needs approval from the stakeholders.
Another option is to communicate the delay to the stakeholders and revise the project deadlines based upon the past delays and future expectations. However this should be with the consent of the stakeholders. 
Recommendation

Considering the level of this sub project criticality in the whole project the project manager should decide if he needs to request for the increase in budget to overcome the delay in the project or the delay in schedule is accepted owing to delays in other sub project. 
Lessons

In case the project is delayed, there will be increase in cost to keep the remaining part of the project on schedule. Thus the decision to incur more cost should be dependent upon the criticality of the project/task in the whole project (Alby, T. 2020). 

4. learning from this exercise

Question 1
What are the differences between a time-based report and an events-based report?
The time based reports focus on time of reporting. The progress of the project is reported at regular intervals of time and not much importance is given on the events that are completed in that time. The report is prepared at the regular intervals of time.
The events based report focus on the events/tasks of the project completed and reporting is done once the tasks/event is completed. The time taken to complete the event is not considered to report. 
Question 2
What are the advantages and disadvantages of an events-based report for the project?
The event based reporting focuses on the completion of the tasks/events considered as important milestones in the project. The reporting is done once the events are triggered to complete.
The reporting style is good as it focuses on the work units and the real progress of the project is reported
The disadvantage of the styles is that it ignores the time taken to complete the project and can lead to ignorance of schedule delays.
Question 3
What are the advantages and disadvantages of an events-based report for the project manager and the project management team?
The project manager and project management team can measure the actual progress of the project by the vents completed. Once the report on any event is presented all the resources and focus can be diverted to that event.
The report is a disadvantage because  it leads to ignorance on the time taken to complete the event and can lead to delays in project.