In this assessment students are required to identify an appropriate project management case study and develop a risk analysis and mitigation plan. It is not the aim of the assessment to develop a ‘real’ risk analysis of a competed project, but rather to seek to identify potential risks that students might identify based on their understanding of the project, and for which mitigation measures may be suggested. Students are not expected to be experts in any particular project field, but are required to identify and address potential risks, etc. which might reasonably be foreseeable or expected given comprehensive case study information
This project is mainly based on the risk analysis of the seven toll booths that have been implemented on the Bangalore-Chennai Highway. This is a 250 km long highway that aims to allow cars and other vehicles to travel between the two cities at high speeds. However, in order to recover the expenses faced during the construction phase, the government has implemented seven toll booths on various points of route. While passing through these toll booths, the car drivers have to pay a certain fair before getting green light to pass through.
In order to determine the project budget, the resource costs for human and material resources are first determined as follows.
Resource Name |
Type |
Initials |
Max. Units |
Std. Rate |
Project Manager |
Work |
P |
100% |
$200.00/hr |
Finance Manager |
Work |
F |
100% |
$150.00/hr |
HR Manager |
Work |
H |
100% |
$150.00/hr |
Construction Manager |
Work |
C |
100% |
$75.00/hr |
Workers |
Work |
W |
100% |
$300.00/hr |
Construction Materials |
Material |
C |
$150,000.00 |
|
Training Costs |
Material |
T |
$10,000.00 |
|
Technical Support and Equipments |
Material |
T |
$20,000.00 |
|
Vendor Costs |
Material |
V |
$2,500.00 |
Accordingly, based on resource allocation to each of the project activity, the overall budget breakdown using bottom up estimating is as follows.
Task Name |
Cost |
Implementation of Toll Booths on Bangalore Chennai Highway |
$552,300.00 [TOTAL COST / BUDGET] |
Project Planning |
$10,600.00 |
Survey of the Entire Route |
$4,400.00 |
Analysis of the total construction costs of the route |
$600.00 |
Analysis of toll funding requirements on monthly basis |
$2,400.00 |
Risk Identification and Management |
$1,600.00 |
Approval of Project |
$1,600.00 |
Project Initiation |
$26,000.00 |
Assign Respective Roles to the Right Stakeholders |
$5,600.00 |
Prepare Business Case for the Project |
$3,200.00 |
Develop Project Charter |
$1,600.00 |
Identify Scope of the Project |
$3,200.00 |
Estimate a Feasible Budget |
$1,200.00 |
Determine Assumptions and Constraints |
$1,600.00 |
Develop Project Schedule |
$3,200.00 |
Distribute duties and work packages among project team members |
$3,200.00 |
Get go ahead for the project |
$3,200.00 |
Project Execution |
$494,300.00 |
Assign Roles to Team Members |
$4,400.00 |
Mark Areas where the toll booths will be built |
$600.00 |
Secure budget from government |
$2,400.00 |
Start Developmet of Project |
$1,200.00 |
Hire Contractors |
$1,200.00 |
Build Toll Infrastructures |
$242,500.00 |
Build Toll Booths |
$90,000.00 |
Build removable and automated roadblocks on toll booth lanes |
$36,000.00 |
Develop online collection calculation system |
$32,000.00 |
Recruit toll managers |
$12,000.00 |
Train toll managers |
$34,000.00 |
Prepare toll fare structure |
$6,000.00 |
Demo testing of toll operations |
$8,000.00 |
Mark lanes passing through toll booths |
$12,000.00 |
Divide lanes based on vehicle types (separate lanes for trucks, buses and commercial cars) |
$12,000.00 |
Project Closing |
$21,400.00 |
Project Review |
$5,600.00 |
Documentation of Project |
$5,400.00 |
Final Appraisal |
$4,800.00 |
Stakeholder Sign Off |
$4,000.00 |
Official Closing |
$1,600.00 |
An appropriate schedule for the project including the stakeholder involved in each of the phases of the project is as follows.
Task Name |
Duration |
Start |
Finish |
Resource Names |
Implementation of Toll Booths on Bangalore Chennai Highway |
165 days |
Mon 5/7/18 |
Fri 12/21/18 |
|
Project Planning |
7 days |
Mon 5/7/18 |
Tue 5/15/18 |
|
Survey of the Entire Route |
2 days |
Mon 5/7/18 |
Tue 5/8/18 |
Construction Manager, Project Manager |
Analysis of the total construction costs of the route |
1 day |
Wed 5/9/18 |
Wed 5/9/18 |
Construction Manager |
Analysis of toll funding requirements on monthly basis |
2 days |
Thu 5/10/18 |
Fri 5/11/18 |
Finance Manager |
Risk Identification and Management |
1 day |
Mon 5/14/18 |
Mon 5/14/18 |
Project Manager |
Approval of Project |
1 day |
Tue 5/15/18 |
Tue 5/15/18 |
Project Manager |
Project Initiation |
15 days |
Wed 5/16/18 |
Tue 6/5/18 |
|
Assign Respective Roles to the Right Stakeholders |
2 days |
Wed 5/16/18 |
Thu 5/17/18 |
Project Manager, HR Manager |
Prepare Business Case for the Project |
2 days |
Fri 5/18/18 |
Mon 5/21/18 |
Project Manager |
Develop Project Charter |
1 day |
Tue 5/22/18 |
Tue 5/22/18 |
Project Manager |
Identify Scope of the Project |
2 days |
Wed 5/23/18 |
Thu 5/24/18 |
Project Manager |
Estimate a Feasible Budget |
1 day |
Fri 5/25/18 |
Fri 5/25/18 |
Finance Manager |
Determine Assumptions and Constraints |
1 day |
Mon 5/28/18 |
Mon 5/28/18 |
Project Manager |
Develop Project Schedule |
2 days |
Tue 5/29/18 |
Wed 5/30/18 |
Project Manager |
Distribute duties and work packages among project team members |
2 days |
Thu 5/31/18 |
Fri 6/1/18 |
Project Manager |
Get go ahead for the project |
2 days |
Mon 6/4/18 |
Tue 6/5/18 |
Project Manager |
Project Execution |
133 days |
Wed 6/6/18 |
Fri 12/7/18 |
|
Assign Roles to Team Members |
2 days |
Wed 6/6/18 |
Thu 6/7/18 |
Project Manager, Construction Manager |
Mark Areas where the toll booths will be built |
1 day |
Fri 6/8/18 |
Fri 6/8/18 |
Construction Manager |
Secure budget from government |
2 days |
Mon 6/11/18 |
Tue 6/12/18 |
Finance Manager |
Start Developmet of Project |
2 days |
Wed 6/13/18 |
Thu 6/14/18 |
Construction Manager |
Hire Contractors |
1 day |
Fri 6/15/18 |
Fri 6/15/18 |
HR Manager |
Build Toll Infrastructures |
30 days |
Mon 6/18/18 |
Fri 7/27/18 |
Construction Manager, Construction Materials[1],Vendor Costs[1],Workers |
Build Toll Booths |
30 days |
Mon 7/30/18 |
Fri 9/7/18 |
Construction Manager, Workers |
Build removable and automated roadblocks on toll booth lanes |
15 days |
Mon 9/10/18 |
Fri 9/28/18 |
Workers |
Develop online collection calculation system |
5 days |
Mon 10/1/18 |
Fri 10/5/18 |
Technical Support and Equipments[1],Workers |
Recruit toll managers |
10 days |
Mon 10/8/18 |
Fri 10/19/18 |
HR Manager |
Train toll managers |
15 days |
Mon 10/22/18 |
Fri 11/9/18 |
Project Manager, Training Costs[1] |
Prepare toll fare structure |
5 days |
Mon 11/12/18 |
Fri 11/16/18 |
Finance Manager |
Demo testing of toll operations |
5 days |
Mon 11/19/18 |
Fri 11/23/18 |
Project Manager |
Mark lanes passing through toll booths |
5 days |
Mon 11/26/18 |
Fri 11/30/18 |
Workers |
Divide lanes based on vehicle types (separate lanes for trucks, buses and commercial cars) |
5 days |
Mon 12/3/18 |
Fri 12/7/18 |
Workers |
Project Closing |
10 days |
Mon 12/10/18 |
Fri 12/21/18 |
|
Project Review |
2 days |
Mon 12/10/18 |
Tue 12/11/18 |
HR Manager, Project Manager |
Documentation of Project |
3 days |
Wed 12/12/18 |
Fri 12/14/18 |
HR Manager, Construction Manager |
Final Appraisal |
3 days |
Mon 12/17/18 |
Wed 12/19/18 |
Project Manager |
Stakeholder Sign Off |
1 day |
Thu 12/20/18 |
Thu 12/20/18 |
Finance Manager, HR Manager, Project Manager |
Official Closing |
1 day |
Fri 12/21/18 |
Fri 12/21/18 |
Project Manager |
This is a large scale project that aims to survey the implemented toll booths on Bangalore-Chennai Highway. The scope of the project includes the following.
- Survey of existing issues at the toll
- Analysis of the existing fare structure
- Revising the fare structure
- Recruitment of new toll managers
- Training to the toll managers
The project aims to manage the risks associated with the tolls in the highways so as to make the operations more efficient and earn sufficient revenue to cover for the construction costs of the highway. For this process, more efficient toll managers are to be recruited and the fare structure should be revised for making it feasible for all types of drivers.
Some expected difficulties and drawbacks are listed as follows.
- High toll fares
- Too many tolls on one highway
- Insufficient number of toll managers
- Inappropriate location of tolls
The key stakeholders are identified as follows.
Stakeholder |
Duty |
Project Manager |
Planning and management of project |
Finance Manager |
Management of financial aspect of project |
HR Manager |
Recruitment of human resources |
Construction Manager |
Management of the construction processes |
There are some major risk factors associated with the project that may reduce the feasibility of the project. Some of these risks are identified and described using risk matrix as follows.
Risk / Opportunity Identification |
Risk & Opportunity Analysis |
Post Treatment Risk & Opportunity Analysis |
||||||||||||||||
Number |
Date Logged |
Raised By |
Status |
Type |
Description (Cause/Event/Effect) |
Proximity |
Category |
Likelihood |
Consequence |
Level (pre treatment) |
Treatment Response |
Treatment |
Treatment Update |
Owner |
Residual Impact |
Likelihood (post treatment) |
Consequence (post treatment) |
Level (post treatment) |
1 |
1/5/2018 |
Too many tolls on one highway |
Active |
Threat |
There are seven tolls on one single highway, as a result, the drivers may feel the highway very costly to travel through. The truck drivers also face major financial problem while travelling through this highway. |
1/20/2018 |
Quantitative risk |
Likely |
Major |
High |
Reduce |
Either the number of tolls or the prices at each toll should be reduced. Another possible option is to exempt the driver from paying toll once he has passed through two or three tolls in the same trip. |
2/4/2018 |
Project manager |
It generally creates impact on the toll income |
Possible |
Critical |
High |
2 |
1/7/2018 |
Inappropriate locations of the tolls |
Active |
Threat |
The locations of the tolls are not situated in appropriate areas. Some tolls are placed in rural regions and hence, local people may find it costly to drive through the tolls. |
1/21/2018 |
Location risk |
Possible |
Major |
High |
Accept |
The tolls must only be placed in the vicinity of large towns and cities. People of local origin and rural background should be exempted from paying tolls. |
2/5/2018 |
Project manager |
It generally creates impact on the accessibility of the toll |
Possible |
critical |
high |
3 |
1/9/2018 |
No additional funding except toll payments |
Active |
Threat |
The tolls are not well maitained due to lack of funding from government. The only funding comes from a part of the toll revenue. |
1/22/2018 |
Maintainence risk |
Possible |
Moderate |
Medium |
Reduce |
Proper maintaince facility must be provided to the tolls |
2/6/2018 |
Project Manager |
It generally creates impact on the toll |
Possible |
Moderate |
Low |
4 |
1/10/2018 |
Lack of training for toll managers |
Active |
Threat |
The toll managers are not well trained to provide fast and efficient work during collection of tolls. |
1/23/2018 |
Training risk |
Possible |
Major |
High |
Reduce |
Sufficient amount of training should be provided to the toll managers for fast clearing of toll payments to prevent traffic bloackage. |
2/7/2018 |
Human resouce manager |
It generally creates impact on the operation of toll |
Possible |
Moderate |
high |
5 |
1/11/2018 |
Traffic blockage reducing the speed of car movement through the highway |
Active |
Threat |
Due to slow toll service, traffic easily stacks up and causes traffic blockage that also reduces the traffic speed on the highway. |
1/24/2018 |
Customer service risk |
Possible |
Major |
Medium |
Reduce |
The toll payments should be cleared fast in order to prevent any kind of traffic blockage on the lane. |
2/8/2018 |
Quality analyst |
It generally creates impact on the yearly revenue of the restuarnt |
Possible |
Moderate |
high |
6 |
1/13/2018 |
Political opposition regarding the implementation of the tolls. |
Active |
Threat |
Some political oppositions often raise concerns regarding the placement of so many tolls on the highway and high costs at each toll. |
1/25/2018 |
Political risk |
Possible |
Moderate |
Medium |
Reduce |
The political problem can be treated by discussion with oppositions and letting them know clearly about the benefits and needs for the tolls. |
2/10/2018 |
Ruling Political Party of the State |
It generally creates impact on the customer service |
Possible |
High |
Low |
7 |
1/14/2018 |
Low affordability |
Active |
Threat |
Due to extremely high toll prices, many drives cannot afford to pass through the tolls. Hence, they choose side roads and lengthy routes instead of the highway. |
1/26/2018 |
Affordability risk |
Possible |
Moderate |
High |
Reduce |
Either the number of tolls or the prices at each toll should be reduced. Another possible option is to exempt the driver from paying toll once he has passed through two or three tolls in the same trip. |
2/11/2018 |
Finanacial manager |
It generally creates impact on the prices of the toll |
Possible |
Moderate |
Low |
8 |
1/16/2018 |
Lack of sufficient number of toll managers at each toll |
Active |
Threat |
Insufficient recruitment of toll managers result in empty toll booths at each toll point, resulting in closed lanes on the highway. |
1/28/2018 |
Staffing risk |
Possible |
Moderate |
Medium |
Reduce |
Sufficient number of toll managers should be deployed in order to fill all the toll booths and faster clearing of tolls. |
2/12/2018 |
Human resource manager |
It generally creates impact on customer service |
Possible |
Low |
High |
9 |
1/17/2018 |
High toll fees at each toll |
Active |
Threat |
In order to maintain funding for the tolls, the toll prices are set at a very high value and if a driver has to drive from Chennai to Bangalore through this highway, he has to pay a massive Rs. 400 in the tolls. |
1/29/2018 |
Price risk |
Possible |
Moderate |
Medium |
Reduce |
The toll needs to manage their budget so that they can run the daily operation smoothly |
2/13/2018 |
Financial manager |
It generally creates impact on financial budget of the company |
Possible |
Moderate |
Medium |
The excel sheet for the risk register matrix has also been attached with the document.
For the various identified risks, there are certain mitigation plans required. The main objective of the mitigation plan is to solve the issues and risks for smooth operation of the presented system. The main identified strategies to mitigate the risks of the project are as follows.
Reduction of the Number of Tolls – In a stretch of 250-300 Km road, seven tolls is extremely high considering how many cars and vehicles ply through the entire course of the road every day. The soul reason of the development of the Chennai-Bangalore Highway was to provide continuous movement of traffic at high speeds from Chennai to Bangalore and vice versa without having to stop at different locations. Generally in these types of highways, there are two tolls, one at the start and one at the end. However, this highway has seven tolls at different locations and as a result, the cars have to stop at the different locations and also have to pay for the tolls. This not only reduces the traffic speed but also forces the drivers to pay for the tolls at each point.
Project Budget
Reduction of Toll Fare – Another major risk to be addressed is the extremely high fare that the driver has to pay at each toll. In two of the tolls, the driver has to pay as high as Rs. 80 and the total fare that the driver has to pay if he drives the entire stretch of the highway is Rs. 400, which is extremely high, especially for rural and truck drivers. It is required to reduce the prices at each toll and if it is not possible, a separate measure can be taken. This includes exemption from paying toll if the driver has already passed through two or three tolls in the same day.
Political Problem – Extreme political unstability in the region means the ruling political party often faces strong resistance from the opposition parties regarding implementation of so many tolls and their huge toll fares. In order to solve the problem, the ruling party should discuss with the opposition party regarding the decision and make it clear regarding why so many tolls and high toll fares are necessary.
Training of Toll Managers – One main identified risk is that the toll managers are not sufficiently trained and as a result, the toll collection process is very slow. Furthermore, there is a lack of sufficient toll managers that further adds to this problem. Due to the slow toll collection process, the traffic through the tolls passes very slow resulting traffic blockage at each of the tolls. This is not desirable for a high priority highway and hence, in order to solve the problem, it is recommended to provide suitable training to the toll managers to increase work efficiency and service time. Furthermore, recruitment process is to be done in order to fill the empty toll booths at each location with efficient toll managers.
Budget Problem – Another main risk related to this is that budget problem. The tolls do not receive sufficient funding from the government and also they receive only a part of the toll profit for their maintenance. In order to address this risk, a suitable budget plan is to be developed. The budget plan should include daily maintenance charges, operational costs and wages of the toll managers. Based on the prepared budget list, a monthly amount structure is to be developed and presented to the government for sufficient funding to the toll points.
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