Table of Contents

QUESTION 1
Appraise the differences between projects and operations and demonstrate if the case
study project could have avoided the delays and shortcomings if it was handled as
a true project from the start.

QUESTION 2
By referring to the project scope management process, discuss how the case study
project scope could have been defined more efficiently by specifically referring to
plan scope management.

QUESTION 3
Appraise the project risk management process that could have been prudently adopted
for the case study project that could have averted the risks during the lifecycle of the
project.

QUESTION 4
Identify
and recommend the types that may be most appropriate for the case study project and
ensure that you justify your choice.

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Question 1

Introduction
The case study "TBD and Erroneous Specifications for a Project" centres on the
installation of a mooring system on an oil rig in the Gulf of Mexico. The fact that
there were so many TBDs (to be decided) items in the project specifications made it
difficult for this fixed-price contract project to complete. These TBDs forced the
project manager to work through challenges and disagreements with the customer's
project management (Atesmen, 2015).

In contrast to projects, operations are the ongoing, repetitive tasks that support an
organization's continuing operations. Operations have their roots in early human
endeavours including agriculture, trade, and handicraft that tried to satisfy
fundamental requirements. Operations became crucial to the operation of
organizations like enterprises, governments, and institutions as societies developed.

Operations saw a substantial shift throughout the 18th and 19th centuries' Industrial
Revolution. It brought mass manufacturing and mechanization, which sparked the
growth of factories and assembly lines. Frederick Taylor's introduction of scientific
management ideas improved operational procedures much further. Midway through
the 20th century, advances in technology, logistics, and quality control led to the
emergence of modern operations management.

The nature of the task is one of the key differences between projects and operations.
Operations are "the ongoing, recurring activities involved in the management of an
organization for the purpose of producing value for the stakeholders," according to
Heizer and Render (2019, p.4). The ongoing character of operations and their function
in providing value are highlighted by this term.

Operations are described by Chase, Jacobs, and Aquilano (2020) as "the set of
activities that creates value in the form of goods and services by transforming inputs
into outputs" (p. 5). This definition emphasizes the operational transformational
aspect.

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Operations entail repetitive, continuing duties, whereas projects are one-of-a-kind,
transitory endeavours with clear goals and timetables (PMBOK Guide, 2017). Due to
the fact that it involved a one-time task—designing and delivering a mooring system
for the offshore oil rig—the mooring system project in this instance qualifies as a
project.

Another characteristic of projects is their clearly defined goals and scope (PMI, 2017).
Delivering a mooring system in accordance with predetermined requirements was one
of the clearly outlined project's goals. TBDs in the specifications, however, suggested
that the project's scope was not clearly defined.

Through thorough planning and scope definition, effective project management

should reduce TBD items (Schwalbe, 2021). The frequent TBDs in this situation
imply that the project may not have been properly planned, which resulted in
difficulties and disputes with the client.

To deal with unforeseen changes or scope changes, change management is essential in

project management (Schwalbe, 2021). The requirement for a change management
approach was made clear by the modification to the chain connection passage. This
alteration derailed the project and resulted in delays, emphasizing how crucial it is to
deal with unanticipated changes right away.

Project management includes risk management as a core component (PMI, 2017). It

entails spotting and averting possible problems before they have an effect on the
project. In this instance, the sudden change in the chain connector flow represented a
concern that ought to have been recognized and dealt with sooner.

In projects, resource allocation entails allocating workers and other resources for a
predetermined amount of time (PMBOK Guide, 6th ed., PMI, 2017). In the case
study, it was important to reallocate resources to fulfill the change order, and careful
preparation was needed to guarantee the project's success.

To make sure that projects stay on schedule and achieve their goals, monitoring and
control are crucial to project management (Schwalbe, 2021). Monitoring and control

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were essential in this situation for handling changing specifications and reacting to the
unexpected change order.

The mooring system project may have benefited from better project planning and risk
management techniques to avoid delays and flaws. The difficulties faced during the
project's execution may have been lessened with a thorough approach to scope
definition, risk assessment, and change management.

Following the recommended best practices indicated in industry standards is essential

for efficient project management. An extensive foundation for managing projects is
provided by industry-recognized standards like the PMBOK Guide from the Project
Management Institute (PMI) (PMI, 2017). These guidelines cover essential project
management procedures including scope definition, risk management, and change
control, which can be used to address difficulties like those that the mooring system
project ran into. The possibility of problems may have been decreased if the project
manager had foreseen and controlled TBDs by adhering to PMBOK rules from the
beginning.

The case study emphasizes how important proper documentation and communication
are to project management. One of a project manager's duties is to keep a thorough
record of the project's requirements and modifications (Grey & Larson, 2018). The
project manager in this instance did a good job of recording the finished smoothness
requirements and any further negotiations with the project manager of the customer.
When resolving differences in the project's needs, this documentation was quite
helpful. To avoid misconceptions and make sure that all stakeholders are on board
with the project's goals, it is crucial to maintain an accessible and clear structure for
project documentation.

The success of a project is greatly dependent on risk management (Kerzner, 2017). To

identify potential risks and create mitigation techniques, one strategy is to carry out a
complete risk assessment from the project's outset. The project manager may have
identified the danger of erroneous or changing requirements and put proactive
measures in place to address it by completing such an evaluation. This strategy would

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have improved readiness for unforeseen events like the chain connector passage
problem, minimizing the project's total impact.

Project management relies heavily on resource allocation and availability (Gido &
Clements, 2019). The project manager needs to make sure the appropriate resources
are accessible when they are needed. The unanticipated change order in this situation
necessitated a speedy evaluation of resource availability, emphasizing the value of
contingency planning. A well-prepared project manager should have already
evaluated the team members' availability and have backup plans available for any
anticipated resource shortages.

Conclusion
In a nutshell, the case study emphasizes the crucial value of following industry
standards, effective communication, thorough documentation, risk management, and
resource planning in project management in its conclusion. The project manager may
have reduced delays and flaws, ultimately resulting in a more successful conclusion
for the mooring system project, by adopting these principles from the project's
inception and proactively addressing any concerns.

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Question 2

Introduction
Project scope management is an essential component of project management that
entails establishing and managing what is and is not included in a project. A more
effective specification of the project scope using Plan Scope Management might have
avoided many of the issues in the case study, where the project manager had to deal
with a lot of TBDs (To Be Determined) items and revisions. This essay will elucidate
how, using the Plan Scope Management approach, the project scope for the case study
may have been set more effectively.

Along with the development of project management as a whole, project scope

management has also advanced. While formal project management techniques started
to evolve in the middle of the 20th century, project management ideas have existed
since antiquity. Large-scale building and engineering projects, as well as the need to
manage complicated initiatives like the Manhattan Project during World War II, had
an impact on the creation of project management as a subject.

Organizations and government agencies started to see the value of formal project
management techniques in the 1950s and 1960s. For managing complicated defence
projects, the U.S. Department of Defence, for instance, developed the Work
Breakdown Structure (WBS). Project management organizations like the Project
Management Institute (PMI) contributed significantly to the codification of best
practices and processes over time.

The first procedure in the Project Scope Management knowledge area, Plan Scope
Management, lays the groundwork for successful scope management (PMI, 2017).
Defining, validating, and controlling the project scope requires developing a scope
management plan. The following are some ways that Plan Scope Management may
have been used in the case study more successfully:

Clearly Define the Scope: According to PMI (2017), defining how the project scope
will be established is the first step in plan scope management. In this instance, the
project manager need to have worked closely with the client to determine a specific

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and thorough project scope. All project specifications, including any potential TBDs,
would have been thoroughly discussed and documented.

Scope Statement: Project deliverables, objectives, limitations, and assumptions are all
outlined in the project scope statement, which is created as part of plan scope
management (PMI, 2017). The likelihood of TBDs would have decreased if a
thorough scope statement had been created to ensure that all stakeholders understood
what the project was anticipated to produce.

Requirements Documentation: Requirements Project requirements documentation is

also a part of the process (PMI, 2017). To avoid later disagreements and arguments, a
thorough list of needs, including details for issues like the smoothness of stainless
steel surfaces, should have been prepared ahead.

Scope Verification and Control: Plan Scope Management describes how scope
verification and control will be carried out (Scope Verification and Control) (PMI,
2017). The project manager might have addressed the chain connector passing issue
more skillfully and made sure it was in line with the original project scope if a strong
methodology for checking and managing scope adjustments had been established.

Communication Plan: According to PMI (2017), effective communication is essential

for scope management. To keep all stakeholders updated on the project's scope,
revisions, and any potential TBDs, the project manager should have created a
communication plan.

Risk Assessment: According to PMI (2017), plan scope management also entails
assessing potential hazards associated with project scope. The project manager may
have foreseen problems like changing requirements and taken proactive steps to
reduce them by conducting a thorough risk assessment during the planning stage.

Conclusion
To sum up, Plan Scope Management is a crucial step in effectively establishing and
managing project scope. The project manager might have created a clear scope,
reduced TBDs, and better prepared the project for unforeseen changes like the chain

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connector passage problem by rigorously implementing the process's principles in the
case study.

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Question 3

Introduction
In order to proactively detect, assess, and reduce risks throughout the project lifetime,
it is essential to implement an efficient project risk management strategy. Several
risks, such as TBDs in project requirements and unforeseen modifications, were
identified in the case study. These dangers may have been avoided or reduced with
the careful adoption of a risk management methodology. The application of risk
management and how it can have been done better will be discussed in this essay.

With projects becoming more complicated and uncertain over time, project risk
management has developed into a codified subject within project management. The
systematic management of project risks rose to prominence in the middle of the 20th
century, despite the fact that project management as a discipline has historic roots.

Early Methods: Scheduling and resource allocation were the two main focuses of
project management in the early 20th century. Risk management was frequently
unorganized, reactive, and gave little thought to prospective risks.

Post-World War II Era: In the years following World War II, the demand for
institutionalized risk management increased. The value of detecting, assessing, and
minimizing risks was underlined by the complexity of programs like the Manhattan
Project. The development of risk management principles was aided by the lessons
acquired from these significant projects.

1960s–1970s: During this time, a number of industries, especially aerospace and

defence, started to implement more structured risk management techniques. It became
more popular to employ methods like Monte Carlo simulation and the idea of risk
assessment.

1980s–1990s: The Project Management Institute (PMI) was crucial in helping the
discipline of project management formalize risk management. The PMI's PMBOK
Guide, which focused on risk identification, analysis, response planning, and
monitoring, featured specific sections on risk management processes.

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21st Century: Project risk management has been made easier to practice in the 21st
century thanks to developments in technology, data analytics, and project
management software. Companies from a variety of industries understand how crucial
proactive risk management is to a project's success.

Risk Identification: Finding possible risks is the first stage in risk management (PMI,
2017). In the case study, the project manager need to have started the project with a
thorough risk assessment. The project team would have participated in brainstorming
meetings to identify any potential risks, such as TBDs in requirements, resource
limitations, and scope modifications.

Risk Register: According to PMI (2017), a risk register was supposed to be made in
order to record recognized hazards. Each risk would be thoroughly explained, along
with its likelihood of happening and any potential effects it would have on the
project's goals. The central repository for all project risks would be this document.

Risk Analysis: Once hazards have been identified, they need to be prioritized through
risk analysis (PMI, 2017). To classify hazards according to their seriousness,
qualitative and quantitative risk analysis methodologies such as likelihood and impact
assessments might have been used. This would have aided in determining the possible
effects of TBDs and scope modifications in the case study.

Risk Response Planning: A response plan needs to be created for each risk that has
been identified (PMI, 2017). For TBDs in specifications, for instance, the reaction
could entail proactive discussion and negotiations with the client to reduce upcoming
modifications. A backup plan need to have been created in case the scope changed, as
it did with the chain connection problem.

Risk Monitoring and Control: Risks need to be continuously tracked and managed
throughout the project (PMI, 2017). The project manager would have been able to
track the status of identified risks and take appropriate action as needed if regular risk
review meetings had been held. For instance, the risk response plan might have been
immediately implemented when the chain connector passage issue appeared.

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Contingency Planning: A contingency plan need to have been created in advance of
unanticipated hazards (Schwalbe, 2021). This plan describes the actions to be taken in
the event that a certain risk materializes. If the specifications had changed, a backup
plan could have been put in place to handle anticipated changes without halting the
project.

Risk Ownership: It should have been established that roles and responsibilities for risk
management were clearly defined (Grey & Larson, 2018). This involves appointing
risk owners who are in charge of keeping an eye on certain hazards and carrying out
action plans.

Communication: Effective communication of risks and their possible effects is crucial

(PMBOK Guide, 2017). Transparent communication with all parties involved,
including the client, would have made it easier to control expectations and avoid
problems, particularly when it came to TBDs in specifications.

Change Management: There ought to have been a strong change management

approach in place (Kerzner, 2017). This would guarantee that before being accepted,
all changes, such as modifications to project specifications, are carefully evaluated for
their influence on the project's scope, schedule, and budget.

Risk Review and Lessons Learned: After a project is finished, a thorough evaluation
of risks and the efficacy of risk management measures should be done (Gido &
Clements, 2019). This technique aids in learning from mistakes and enhancing risk
management procedures for upcoming projects.

Conclusion
In conclusion, a methodical strategy to identifying, assessing, and mitigating risks
over the course of the project lifecycle is required for a properly implemented project
risk management process. The risks associated with TBDs and scope changes in the
case study could have been avoided or reduced with a more thorough and proactive
approach to risk management, including robust risk identification, response planning,

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and change management, leading to a more seamless project execution and fewer
delays.

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Question 4

Introduction
The right contract type must be chosen while managing a project because it has a
direct impact on how costs are managed and distributed. A contract that has the
essential flexibility and risk-sharing measures could have benefited the case study
project, which dealt with cost uncertainty. This essay will evaluate numerous contract
kinds and suggest, with supporting arguments, the ones that are best suitable for the
case study project.

Lump-Sum (Fixed-Price) Contract:

Features: Regardless of changes in project costs, the price is fixed and remains the
same under a fixed-price contract (Schwalbe, 2021).
Application: When project parameters are clear and risks are low, this sort of contract
is appropriate.
Justification: A fixed-price contract might not be the best option given the project's
specifications' uncertainties and TBDs. It does not allow for adaptability to changes
and unforeseen expenses.

Contract with a Cost-Plus-Fixed-Fee (CPFF):

Features: A CPFF contract pays a predetermined fee (% of costs) and reimburses the
contractor for allowed costs (PMI, 2017).
Application: Projects with a lot of uncertainty and changing requirements are good
candidates for CPFF contracts.
Justification: A CPFF contract could have been better suitable given the case study
project's unknowns and shifting criteria. It enables risk sharing between the customer
and the contractor as well as cost flexibility.

Contract for Time and Materials (T&M)

Features: T&M contracts have the following features: They entail payment for the
contractor's labour and supplies in addition to a predetermined profit margin (Grey &
Larson, 2018).
Applicability: T&M contracts are utilized when the project's length and scope are
unclear.

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Justification: A T&M contract could have been appropriate given the TBDs and
changing specifications in the case study. It permits cost and project scope alterations
with flexibility.

Contract with a Cost-Plus-Incentive-Fee (CPIF):

Features: The reimbursement of permitted expenses and payment of an incentive fee
based on cost savings or performance are features of CPIF contracts (Kerzner, 2017).
Application: Projects requiring cost management and with unknown expenses should
use CPIF contracts.
Justification: A CPIF contract may have rewarded cost savings and superior
performance in the case study project, which included cost uncertainties and called for
strict cost control.

Contract with a Guaranteed Maximum Price (GMP):

Features: Under a GMP contract, the contractor ensures that project costs won't rise
above a predetermined ceiling (Lock, 2020).
Applicability: When cost management is important and the customer wants certainty
about maximum expenses, GMP contracts are appropriate.
Justification: A GMP contract with specific cost controls might have been a wise
decision given the cost uncertainties in the case study to guarantee that spending
restrictions were satisfied.

Cost-Sharing Agreement:
Features: The customer and contractor share project expenses and risks under cost-
sharing contracts (Gido & Clements, 2019).
Application: These agreements are appropriate for undertakings with considerable
risk where both parties share financial obligations.
Justification: A cost-sharing agreement could have more fairly divided risks and
expenses among the customer and contractor given the case study's uncertainties and
shifting specifications.

Conclusion
A combination of contract types would be the most suitable option given the case
study project's many unknowns and changing parameters. For the first stage of the

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project, a Cost-Plus-Incentive-Fee (CPIF) or Time and Materials (T&M) contract
could be utilized to manage cost uncertainties and give flexibility. This would enable
cost modifications as the project scope became more clear. A guaranteed maximum
price (GMP) contract would give both parties cost control and certainty as the project
advances and the scope stabilizes. With this strategy, the project would be able to
adjust to shifting standards while retaining cost predictability.

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