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Midland Health Campus: Project Management

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Question:

Describe about overview of project scope, commencement of Construction works and fund development -2012-2015 and work breakdown structure of Midland Health Campus?

 

Answer:

1. Introduction:

Midland Health Campus (MHC) development project is one of the largest construction projects which are currently being executed in Western Australia (www.midlandhospitals.org.au, 2015). Construction works for MHC development project was started in 2012 and is expected to be finished within 2015 (www.sjog.org.au, 2015). However, the tasks related to EOI (Expressions of Interest) Phase and RFP (Request For proposal) phase were conducted during the period of 2010-2012 (Treasury.wa.gov.au, 2015). Health Department of Western Australia took the initiative for expanding Midland Health campus as a part of health infrastructure up gradation in Midland. However, the health department is undertaking this construction project of new campus in public private partnership (PPP) model.  Brookfield Multiplex Pty Ltd, a well known constructor for infrastructure development, is appointed as the project manager (Brookfieldmultiplex.com, 2015).The organization is responsible for executing all construction works required for this campus expansion program. A contract is developed between the government and St John of God Health on operation of the campus. According to that contract, St John of God Health is responsible for all operational activities in MHC for next 23 years (www.federalfinancialrelations.gov.au, 2015). (Refer to Appendix)

2. Project Charter for Midland Health campus expansion:

Elements  of charter

Description

Scope  overview

· Development  of a new 367-bed hospital   which can be expanded in future

· Development of  expanded emergency unit

· Infrastructure  for 24 hr. anesthesia  unit

· Infrastructure  for cancer treatment

· High Dependency units development

· General pediatric  section

· Surgical  infrastructure developments

· Post natal and neo natal  care units

· Improved mental health care and rehabilitation   infrastructure

· Infrastructure development  for geriatric and general medical departments

Business case analysis

 The current project is a part of  health  infrastructure  improvement  programs in Western Australia under  WA  Health Clinical services Framework 2010-20

 Important Milestones

· Commencement of EOI(Expressions of Interest) Phase-6 October, 2010

· Evaluation  of EOI-December 2010

· RFP (Request For proposal) Releasing-May  2011

· Analysis of RFPS and  selection of project manager-November 2011

· Contract development – June 2012

· Commencement of construction-Sepetember-2012

· Construction completion-November 2015

· Operating  new hospital-December  2015

Risk analysis

· Conflict among stakeholders

· Changes  in Health policy

Budget Estimation

$360 million

Stakeholder  analysis

· Health Department of Western Australia

· St John of God Health Care

· Brookfield Multiplex Pty Ltd

 

Overview of learned lessons

· Importance  of communication in teams  for large projects

· Strategy development

· Identification of subtasks in a large task

Team Operating principle

Arrangement of meetings, communication though telephonic calls and e-mails for maintaining  collaboration


Table1: Project Charter for MHC

2.1   Overview of project scope:

The current project deals with   development of a new hospital in Midland. Currently the hospital will be able to accommodate 367 patients (www.nmahs.health.wa.gov.au, 2015). However, according to the future plan, the total capacity will be increased up to 464 beds by 2020 (www.sjog.org.au, 2015).Key deliverables of MHC development project are a public hospital with capacity of 307 beds along with a private hospital with 60 bed-capacities (Treasury.wa.gov.au, 2015). However, according to the proposal, both hospitals will share   health services infrastructure. As the new campus is being developed with the aim of increasing availability of advanced medical facilities in Midland area, both private and public hospital of   new campus will possess infrastructure for major medical requirements. In both the hospitals of Midland campus special focus is given on providing 24 Hrs emergency services to patients (www.sjog.org.au, 2015).  

The new hospitals will include infrastructure for emergency care unit. As the project aims at providing medical services to local people at affordable cost,   the infrastructure will be well- advanced and cost effective. However, in this campus, importance is also given on developing a well equipped surgical unit along with 24 hrs anesthesia unit.  The project will also aim at optimizing effectiveness of its infrastructure. Development of high dependency units is included in MHC development project scope (Swan.wa.gov.au, 2015).

As   the new health campus in Midland targets to provide health services to all people, building proper infrastructure required by neonatal care units and geriatric units are incorporated into project plan (Treasury.wa.gov.au, 2015).Apart from  building  units  for specialized services ,Brookfield  multiplex  will also develop general medical  units. WA health department is planning to develop Midland Campus as a provider of all medical services. Deliverables of this project include mental health care and rehabilitation units. Apart from this infrastructure for providing 24 hrs ambulance services will be developed as part of whole project.

 

2.2 Business case analysis:

Midland planning area, which covers several suburbs of Western Australia including Bellevue, part of Swan and Koongamia, is one of the highly populated areas in the region. Approximate population of Midland is about 11861(Swan.wa.gov.au, 2015).Although people of   the age group 20-54 years constitute almost 51% of total population, about 37.5%  of local people are above 55 years (Swan.wa.gov.au,2015). Population is increasing rapidly and about 20% of total population belongs to age group of less than 20 years (Swan.wa.gov.au, 2015).

Currently Swan District Hospital is the main provider of health services in Midland. Analysis on the current population growth   of this area indicates that requirement for health services are going to be increased in future. Thus the need for developing a campus which will be able to meet requirements of local people at low cost is also increasing. Primary reason for undertaking the project of MHC development is reducing the pressure on Swan District Hospital. However the project also a part of health infrastructure improvement in Midland area.

2.3 Milestone schedule:

Task

Date of completion

Selection  of  respondent

December  2011

Master plan  for MHC developed

February 2012

Announcing the name of  CEO

September  2012

Final plan developed

November 2012

Construction began

December 2012

Completion of 25% of whole project

June 2013

Recruitment  starts

February 2014

Completion of 50% of whole project

March 2014

Expected date of completion

2015


Table 2: Milestones schedule for MHC development

Milestones for completing The Midland Health campus can be segmented into three categories on basis of their time of completion and nature of success criteria. As stated by Kovacic and Filzmoser (2014), large tasks are segmented into subtasks and milestones are set on basis of nature of a task to complete those in time to enhance efficiency of project members. The   project was initiated in early 2011 through the commencement of RFP invitation. In the same year all tasks related to respondent selection and contract development were finished.  Designing   works for the new campus were started in next phase of project. However,   the final plan was developed in November 2012 and   the construction works also commenced for December in 2012.By 2013, Brookfield Multiplex successfully completed 1/4th of whole construction (www.sjog.org.au, 2015). In the next year, half of the total campus was built. Current progress in construction and administrative works indicates that new campus can be opened in 2015.

 

Pre-project works- October, 2010- December 2011:

Pre –project works such as releasing and analyzing RFPs for the construction work started from May 2011.  However, before conducting these tasks, the Health Department completed all works of EOI phase by late 2010. On receiving the proposals health department analyzed those. Finally, in December of 2011, the department selected St John of God Health Care as the preferred respondent for Midland Health Campus construction project. However, Brookfield Multiplex Pty Ltd was chosen for executing all construction works.

Commencement of Construction works and fund development -2012-2015:

Primary design of both public and private hospital was completed within February of 2012. The Health Department of Western Australia published the primary design. It was proposed that the campus will start operating in 2015 with a capacity of 367 beds. However, the design will allow future increase in number of beds.  Main construction works of the proposed campus will include highly advanced units for critical care, surgical department, cancer treatment etc. However, the design also ensures that sufficient green spaces will be created. Apart from that, the design also focuses on increasing the use of sunlight in outdoors. However, the design as modified slightly as receiving feedbacks of local people. The finalized design was revealed in November of 2012.Brookfield Multiplex started the construction works in December of the same year.

Although The Health Department of Australia adopted PPP model for development of MHC, the authority is accepting donations from local organizations (www.sjog.org.au, 2015). Ascheman  (2013) stated that   lack of funds  is one of the most common reasons which can restrict timely completion of large projects. On other hand, delay in project works result significant increases in budgets (Bocquet, 2013). As the government is encouraging people of Western Australia to donate for MHC, chances of interruption in project work are reducing.  However, the process of accepting donation for MHC was initiated in March of 2013 (www.sjog.org.au, 2015).

Progress in construction works reflected that St John’s will be able to operate from 2015. Tasks related to staffing were started in the month of February of 2014.Currently, more than half of required infrastructure is completed. It is expected that MHC will be able to serve local people from 2015.

 

2.4 Analysis of risk and identifying constraints:

According to Clements and Gido (2012) in case of hospitals and health care units, risks can be caused by poor quality of developed infrastructure. However in the current project, Brookfield is conducting the construction tasks and thus the risks of poor infrastructure development is reduced.Eric Kirkland (2014) opined that smooth operation of joint ventures in often interrupted  due to  complexity  arise in contracts between two parties. However, the chances of conflicts increases in long contracts (Zhang and Bishop, 2013).The health ministry developed a contract for 23 years with St John’s Health Care for operating MHC. Activities of MHC can be hampered if any complexity arises among the Government and private partners in future. Apart from containing a public hospital, new campus in Midland will also contain a private hospital. However, any change in Government Health policies cam impact on operating of the private hospital and thus activities of MHC will be affected.

Time can be considered as a constraint for this project. As the project includes development of two separate hospitals, large number of subtasks needed to be completed within time. However, all the stakeholders are working together to complete these tasks on time.

2.5 Budget estimation:

Randolph (2014) opines that uninterrupted execution of tasks depends on accuracy of budget allocation. Estimated budget of competing MHC is about $360 million (www.sjog.org.au, 2015). Both the health Ministry and St John’s is collaborating with each other for development of fund. However, the authorities are also focusing on collection of find from local charities.

2.6 Stakeholder analysis:

According to Morris (2013) nature of stakeholder influences success of a project.MHC development is a part of health infrastructure improvement and Health Ministry of Western Australian Government is one of its main stakeholders. However, the project is being executed as a joint venture between public departments and private organizations. St John of God Health Care another major stakeholder is responsible for operating the public and private hospital in Midland Health campus. Other stakeholders include Brookfield Multiplex and the organization is responsible for completion of construction works on time. The Authorities engaged charities and not-for-profit organizations with the project for designing and fund development.

 

2.7 Lessons learned:

Working in large project gives several opportunities to learn new things which can be applied later (Rega, 2013).Both the members of our group got the opportunity of learning several techniques while working in MHC development project. After working in the project we learned the techniques of dividing a large task into subtasks. We realized the importance of maintaining regular communication   among team members and also among different teams especially in case of large projects. Apart from this we took part in planning process of our team and it improved our ability of making strategies.

2.8 Operating principle of teams:

Silvius (2012) states that operating principle of teams varies according to the size and nature of project. As different organizations were responsible for execution of project, the organizations created their teams for completing several tasks. All the teams in this project collaborate for planning and executing their allocated tasks. However, these teams also seek feedback from local people and modify their decisions according to these feedbacks.

3. Communication plan:

SI

Audience  of meeting

Meeting arranger

Purpose of meeting

Time/frequency

Medium

1.

Members  of group

Members  of group

Primary planning on task completion and budget allocation

Before staring the project

Face to face communication

2.

Group leader

Team members

Resource  and budget allocation

Once before starting project /once in week

Meeting

3.

Team Members

Group leader

Status of work

Daily

E-mail

4.

Whole team

Leader

Discussing issues

Twice in a week

Meeting


Table 3: Communication plan in teams

According to Davidson (2014), communication among members impacts on efficient execution of tasks. However Journal (2013) opines that nature of communication changes as the purpose changes. While executing the tasks members of our team and team leader communicated several times. However, the purpose of communication was different in each case. On basis of the purpose, the meetings of our team can be categorized as –meeting for identification of issues, reporting, and resource distribution. Our first meeting was held before commencement of project .In that meeting we discussed on the plans for executing tasks. In that meeting we identified the resources required to complete tasks. Team leader arranged the second meeting for distribution of resources. Such meetings were arranged whenever we required resources. We reported status of work daily to the leader using e-mails. While executing the tasks we faced several issues. These issues were discussed with other members and leader twice in a week. In these meetings we also developed strategies to eliminate the effects of these issues.

4. Work Breakdown Structure (WBS):

Figure 1: WBS for Midland Health Campus Development

Generally a task in project is composed of several subtasks and successful execution of tasks depends on identification of subtasks (Hughes, 2012).Figure 1 indicates that the project is going to be completed in three phases. The first phase of MHC development deals with invitation of RFPs and selection of respondents as well as constructors. However, the contract between government and St John healthcare was also developed in this phase. The second phase deals with designing and construction. Tasks completed in this phase are development of master   plan, feedback collection from locals and modification of primary design according to the received feedbacks. However, in the second phase, tasks related with fund collection were also conducted. Administrative tasks were executed in the third phase. In this phase, the contract was revised and recruitment of employees for MHC was started.

5. Conclusion:

Analysis on the current project indicates that development of MHC in PPP model will enable the Government to finish all tasks within short time. As well known organizations like Brookfield and St John of God Health Care are engaged with this project, quality of services offered by health campus will be high. It is evident from current status that local people can get benefits of MHC from mid 2015.However, the effectiveness of this campus may get reduced is any complexity arises in contract between Health Department and other stakeholders.

 

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