Principle of Project Management

Tesla New Gigafactory in Texas

ENG7143 PRINCIPLE OF PROJECT MANAGEMENT

Author: Shaghayegh Tajik (22106137)
Professor Dr. Aminu Bature
Due date: 30th, August 2022

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Contents
1. Introduction......................................................................................................................................3
2. Project’s general overview...........................................................................................................3
2.1 Project’s Goal (SMART)..........................................................................................................4
2.2 Project success factors..........................................................................................................4
3. Project Planning..............................................................................................................................5
3.1 Structure and role...................................................................................................................6
3.2 Responsibility matrix.............................................................................................................8
3.3 Project planning and controlling methods.......................................................................8
3.4 Work breakdown structure (WBS)......................................................................................9
3.5 Project implementation plan...............................................................................................10
3.6 Project optimized implementation plan............................................................................11
3.7 Project timeline.......................................................................................................................12
3.8 Gantt Chart..............................................................................................................................13
3.8 Network diagram and critical path.....................................................................................14
4. Stockholder management...........................................................................................................19
4.1 Stakeholder analysis.............................................................................................................19
4.2 Stakeholder action plan........................................................................................................21
5. Prime contractors and subcontractors...................................................................................21
6. Project budget and cost estimation.........................................................................................22
6.1 Cost breakdown.....................................................................................................................22
6.1 Advantages and disadvantages of estimation...............................................................23
7. Risk management.........................................................................................................................24
7.1 Risk Assessment (PESTEL Analysis)..............................................................................24
7.2 Risk breakdown.....................................................................................................................25
7.3 Risk Analysis (FMEA)..........................................................................................................26
8. Project management methodologies.......................................................................................28
8.1 Applied project management methodology...................................................................29
9. Conclusion.....................................................................................................................................30
10. References.......................................................................................................................................31

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 1. Introduction
Tesla was founded in 2003 by a group of engineers who wanted to demonstrate that driving
an electric vehicle would not need making sacrifices and that it might be better than
gasoline-powered automobiles in terms of reliability, speed, and fun. In addition to all-
electric automobiles, Tesla currently manufactures endlessly scalable sustainable energy
generation and storage solutions. Tesla designed the world's first luxury all-electric sedan,
the Model S, from the ground up, and it has subsequently become the best car in every
category. Tesla believes that the sooner the world abandons fossil fuels and transforms into
an emission-free future, the better. Tesla's Fremont, California, and Shanghai Gigafactories
both manufacture automobiles. Tesla keeps making its goods available and inexpensive to
an expanding number of customers with the creation of its most reasonable vehicle to date,
hastening the development of renewable energy and mobility. We envision a world in which
electric vehicles, batteries, renewable energy generation, and storage all work together to
produce even more electricity than they do individually. Tesla started building the
Gigafactory in June 2014, located outside of Sparks, Nevada. The term "Gigafactory" is
derived from the word "Giga," which is a unit of measurement meaning "billions." The
Gigafactory is being built in stages so that Tesla may immediately begin manufacturing and
expand within the finished areas. (Tesla website) Recently, Tesla has decided to build
another Gigafactory in Texas, one of the biggest buildings on Earth (electrek). Gigafactory
now produces Model 3 electric motors and batteries for Tesla's Powerwall and Powerpack
energy storage systems. (Tesla, 2020)

2. Project’s general overview

The implementation plan of the Texas Gigafactory will start in January 2022 and will be
completed by the early beginning of January 2024. In case of any delay in the project
completion plan, in addition to the initial budget, the corporation will begin to incur costs of
$1,000,000 every day. Elon Musk, the CEO of the company, revealed the project cost could
be as much as $1 Billion.

Project: Gigafactory Construction

Project’s Nature: Construction & Assembly
Location: Austin, Texas
Start Date: Jan 1, 2022
End Date: Jan 1, 2024
Total Duration: 2 years
Cost of delays per day: $1,000,000
The estimated cost of the project: $1 Billion

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 Tesla actual land vs render (isideevs,2020 & electrk,2020)

2.1 Project’s Goal (SMART)

Project goals should be provided very clearly and transparently as it’s playing a crucial role
in the on-time delivery of the project. The objectives of the project are not independent, and
it should follow the SMART. The project’s goal for this case study is to construct Gigafactory
within 24 months from the 1st of January, 2022 with the estimated cost of $1 billion. In
addition, there are some general goals related to the purpose of building the new
Gigafactory.
 Accelerating the world's transformation to renewable energy sources by making electric
vehicles and energy goods more economical.
 Increasing profit margin
 Increasing its rate of production
 Double the world’s production of rechargeable lithium-ion batteries
 (Tesla,2022)

2.2 Project success factors

The success of a construction project is the main issue for the government, users, and
business owners. Due to rising design complexity and stakeholder participation, modern
construction projects present substantial difficulties for both clients and subcontractors to
complete the project successfully. A project's success is determined by its aesthetic
performance for a builder; for a contractor, it is determined by its functional performance, a
project's success is determined by whether the contractor makes money on it. (Ramlee et
al., 2016)

Success factor Description

Revenue & Profit To Ensure revenue and Profitability
Technical and managerial
To be chosen appropriately and implemented effectively
processes
Cost To deliver the project within the expected budget ($1 Billion)
Time To deliver all milestones and the project on time (the start of the 2024 season)
Deliverables To meet specifications, requirements, and quality expectations
Scope To Achieve the scope as defined in the project documents
Customer Satisfaction Product acceptance, use, and effectiveness
To ensure stakeholder participation and happiness with project management
Stakeholder Satisfaction
methods and results
Team Satisfaction To Make sure the team feels satisfied with the project
Table 1

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 3. Project Planning
Project management includes the conception, definition, planning, implementation, and
completion of a project. The responsibilities of project planning and resource allocation are
included in the project framework. While the purpose of project scheduling is to set the
beginning and ending dates of project activities, the purpose of resource allocation is to
ensure that adequate resources are available to finish projects on time. (Sunke,2008)

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 3.1 Structure and role

A crucial arrangement for establishing the hierarchy of employees, their purpose, workflow,
and reporting structure is the project organizational structure. It is a component of business
that is essential in determining and directing how the company conducts its activities (tw
project). As below figure, the actual structure of the Tesla company has been demonstrated
and with the leadership of a full-time project manager, dedicated team member has been
created, also These teams act independently of the main organization. The advantage of a
dedicated team member is simple, fast, and cohesive. Although, this structure would be
expensive, but with on-time delivery of the project, it can be compensated. In addition, for
some specific parts of the project, it has been decided to run it with subcontractors for
construction, electrical, and plumping activities, as there is a possibility that subcontracting
can support a business at any given moment, brings cost efficiency, and can improve
productivity. In section five, the prime contractors and subcontractors have been explained.

Figure 2

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 The role description of each position is described as below table :
Role Team member Role description
CEOs are responsible for managing a company's overall operations.
CEO Elon Mask
This may include delegating and directing agendas, driving
profitability, managing company organizational structure, and strategy,
and communicating with the board.
The project sponsor is the person responsible for the overall success
Project sponser Robyn Denholm
of the project, including appointing the project manager
and team, defining success criteria, and ensuring the successful
delivery of the project.
A project manager is accountable for planning and allocating
resources, preparing budgets,
monitoring progress, and keeping stakeholders informed throughout
the project lifecycle. All of this takes place within the framework of
Project manager Sarvenaz Hemati achieving a company's goals and achieving their vision. PM plan
resources, handle finances and organize the business documents
related to the project. They also work directly with higher management
to ensure the project has a set direction for success, and that it meets
this definition of success at the completion period.
A Quality Assurance Manager is a professional in charge of ensuring
that all products are made with quality and are reliable. In addition,
they implement systems to test products, making sure they meet
company standards for safety.
Quality and assurance
Shaghayegh Tajik Developing quality control policies and standards for the company to
manager
follow. Training staff members on the quality control processes and
policies. Overseeing quality control processes, and a team of QA
specialists. Conducting in-house audits of product inventory and
documentation.
A production manager is a technical expert responsible for the
Production and planning, management,
Jesujuwa
engineering manager and supervision of industrial manufacturing, and processes. A
Production Manager is a professional who oversees the production
Estate managers supervise and manage the day-to-day operations of
private estates.
Site and estate
Maryam Hosseini
They oversee all maintenance and repairs to the estate grounds and
manager buildings, manage house staff and groundskeepers, and coordinate
events and functions. They are also responsible for managing estates'
budgets.
Design managers are sometimes known as design coordinators or
design and build managers.
Design managers coordinate all design matters relating to a project,
Design manager Oluwatoyin
helping to ensure that the multi-disciplinary teams building the project
work together smoothly and that everything is delivered on time and
within budget.

Table 2

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 3.2 Responsibility matrix

Project management techniques like the responsibility assignment matrix (RAM) promote
thorough project understanding among all participants. Everyone on the team has a better
understanding of what they are responsible for and where their part of the project falls along
the timetable after looking at the chart, which incorporates all stakeholders and encourages
an end-to-end view of any major assignment at work (Forbes, 2022). The below table is
demonstrating the responsibility matrix related to Tesla’s Gigafactory.

Table 3

3.3 Project planning and controlling methods

Project planning methods help to manage projects easier and more effectively. They can be
applied to any project regardless of the field or industry. The current planning methods
according to PMBOK edition 6 are as below:

 Mathematical analyze
 Critical path method (CPM) : determines the beginning and end dates for
each step and activity. The primary goal of CPM is to determine which
activities have schedule flexibility.
 Graphical evaluation and review technique (GERT): It analyzes network logic
and estimations of activity time probabilistically.
 Program evaluation and review technique (PERT): Project time is estimated
using balanced average time and progressive network logic.

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  Duration compression
 Crashing in: uses for determining how to obtain the maximum amount of
compression for cost increment.
 Fast-tracking: executing the tasks simultaneously. usually raises the risks and
frequently needs redoing work.
 Simulation
 Resource leveling heuristics
 Project management software: it assists in schedule development.
 Brainstorming
 Cause and effect diagrams
 Gantt chart

The following activities include in project controlling:

 Matching initiatives to the goals and objectives of the portfolio or organization

 Developing a work breakdown structure (WBS)
 Working together to create early project timelines
 Developing a risk management plan
 Project budgeting and forecasting
 Tracking project expenses
 Feedback and reporting
Improving project techniques to produce greater results in the future

For the current case study, regarding project planning and controlling, the below methods
are executed:
 WBS
 Gantt chart
 Critical path
 Project management software (MS project)
 Budgeting and forecasting

3.4 Work breakdown structure (WBS)

The work breakdown structure (WBS) in project management is a method for completing a
difficult, multi-step project. It's a technique for breaking up large projects into manageable
pieces in order to finish them more quickly and efficiently. Reducing a large project's size
and complexity is the goal of a WBS. By segmenting the job, it can be completed
simultaneously by several team members, enhancing team productivity and streamlining
project management. The project's major reason for executing WBS is to:

 Give a unique identification to each activity

 Be aware of the distinctive features of the overall action.
 Calculate the time and expense needed for a task.
 Monitor and control the task
 Describe the complete activity's purpose, all the outputs, and all the deadlines.

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 This project has two phases, one is construction and the second is internal assembly and
support systems. As below structure, every task breaks into different phases, and as an
optimization WBS, after finishing the construction of phase one, the resources can be
released and the construction central supply building related to phase 2 can be constructed.

Initial WBS

Figure 3

3.5 Project implementation plan

Project decision-making and task execution are separated by the implementation planning
phase, which is essential for establishing the project's goals, project management strategy,
and guiding the project's execution (Cao et.al, 2011)
The initial PIP is 850 days according to the sequence of the case study and phase 2 could
be divided to phase 2a(Internal assembly) and 2b(support system).
With an initial plan that is 322 days behind the estimated plan, the project will cause the
below delay.

No. of delayed
Planned finish Calculated Finish days
Cost of delay
date Date (business
days)
1/1/2024 04/04/2025 322 322*1,000,000$=322,000,000

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 $
Table 4

Implementation plan (850 days)

Figure 4

3.6 Project optimized implementation plan

Through an optimization plan, 100 days can be deducted from the total timeline. The
central supply building construction of phase 2, can be started after finishing the watertight
roof construction of phase 1 since the resources are free at this stage and they can start
the construction of phase 2 immediately. According to this modification, the project timeline
will be ended up by 750 days in November 2024.

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 Optimized Implementation plan (750 days)

Figure 5

3.7 Project timeline

Project managers can view the whole project plan in one spot by using a project timeline,
which is a visual list of tasks or activities arranged sequentially. A project timetable offers a
thorough perspective of the entire undertaking from beginning to end. ( projectmanager)
The below timeline is demonstrating the start and end time of the project which will be
started by the beginning of January 2022 and will be ended up by April 2025. The whole
delivery of the project would be 850 days.

Project timeline (850 days)

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 Figure 6
As mentioned in the above section, the optimized timeline would be 750 days.

Optimized timeline (750 days)

Figure 7
3.8 Gantt Chart

A Gantt chart is a common pictorial representation of a project timetable. The beginning and
conclusion dates of a project's aspects, including its resources, planning, and dependencies,
are shown in this particular type of bar chart. The project management chart that is most
regularly used is the Gantt chart. The order in which tasks must be accomplished is
specified using these diagrams, which are useful for project planning. (Investopeida) As
explained in the above sections, the Gantt chart is also created based on initial and
optimized duration. The used tool for creating a Gantt chart is the MS project.

Gantt chart (850 days)

Figure 8

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 Optimized Gantt chart (750 days)

Figure 9

3.8 Network diagram and critical path

An essential tool for teams is a project network diagram because it helps them visualize the
tasks that need to be completed throughout the project. Additionally, it provides important
scope like task duration, order, and dependency. Using a network diagram has advantages
that include:

 Visual image of progression

 Project workflow generation
 Tracking potential obstacles
(wrike,2022)

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 The most frequently used scheduling approach in the construction industry is the critical
path method (CPM). Because it primarily determines the minimal amount of time required to
finish a construction project combined with the potential start and end periods for the various
operations, it is frequently referred to as critical path scheduling. The critical path method is
cited frequently in construction texts and by professional project managers as the only
workable scheduling technique.
Additionally, there are numerous computer systems and critical path scheduling algorithms
that can handle projects with various activities successfully and proficiently. The collection or
order of precursor/consequent actions that will take the longest to complete is referred to as
the critical path. The cumulative duration of all the actions along the critical path makes up
the critical path's length. Any delay along the critical path would indicate the requirement for
more time to finish the construction project.
The critical path relates to the minimum amount of time required to accomplish a project
(letsbuild).

The initial network diagram and critical path (850 days)

Figure 10

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 The optimized network diagram and critical path (750 days)

Figure 11

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 As below figure, the critical path is demonstrated in red color for both the initial and
optimized plan, that is showing any delay can affect the length of the project.

Critical path (850 days)

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 Figure 12
Optimized critical path (750 days)

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 Figure 13

4. Stockholder management
Stakeholder management is concerned with the interactions between a company and its
interested parties or stakeholders. These relationships have an impact on the individuals
and the companies they represent, which could be advantageous or disadvantageous for
any successful endeavor. Organizations should manage the stakeholders of all projects to
prevent bad consequences and make sure there are no obstacles in the path of a
successful project. (pmideas, 2022).
According to winch et.al (2002), A project's stakeholders can be classified into internal and
external stakeholders. Internal stakeholders are team members within a company, whereas
external stakeholders are those who will be impacted by the project in some way.
Owners and facility users, project management, team members, facility managers,
designers, shareholders, public administration, workers, subcontractors, services suppliers,
competitors, banks, insurance companies, media, and community representatives are
frequently on the list of stakeholders in a construction project. Each of these could have an
effect on the project at a certain point. Even if certain individuals have a higher-than-normal
impact on the project, the bulk will only do so during a specific time. (pmideas, 2022).
To be able to manage stakeholders, the organization could follow three approaches include:

 Strategic Approach
 Multifiduciary Approach
 Stakeholder Synthesis Approach

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 (Goodpaster, 1991)

In this case, the internal and external stakeholders are divided as below:

Internal stakeholders: Project sponsor, investors, CEO, Project team, Project manager,
PMO, internal managers
External stakeholders: Government agencies, SC team, Community, Customers, Supplier,
SC managers

One of the stakeholders is Auditor, that can be considered an internal and/or external
stakeholder. The main difference between these two is that the internal auditor works on
behalf of the company management while the external auditor is selected upon shareholder
vote.

4.1 Stakeholder analysis

A Power-Interest Matrix, which separates individuals into groups depending on their level of
power and interest in the project's success, is a commonly accepted and simple technique
for recording project stakeholders.
The mentioned diagram shows the different approaches including:

 High power- high interest: this stakeholder is playing a crucial role in making a
decision and has the main impact on the success of the project. There is a need to
keep this type of stakeholder close to the organization, to manage their expectation.
 Hight power- low interest: this type of stakeholder needs to keep in the loop of what
is happening in the project. On the other hand, they could negatively use their power
if they are not satisfied.
 Low power- high interest: Always need to keep these stakeholders updated, and they
are so helpful with the details of the project.
 Low power – low interest: needs to monitor these stakeholders but there is no need
to spend too much time with excessive communication
(solitaireconsulting)

As below figure, the power-interest matrix is demonstrated as below :

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 Figure 14

4.2 Stakeholder action plan

The stakeholder action plan is required to keep a relationship between the organization and
stakeholders, to maintain up to date understanding of stakeholder needs, and make sure
their views are realized and incorporated daily operation of the business.

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 Figure 15

5. Prime contractors and subcontractors

Most construction work is done through contracting procedures, in which a construction or
project management company gets a contract to complete work and then completes that
work in exchange for payment. This entity is thought of as the main contractor.
Subcontractors are then hired by the prime contractor to help them finish the job.
(valiantgrouplink, 2021) Prime contracting is mostly appropriate for a massive project like this
gigafactory case study.
The advantage of hiring prime contractors could be as below:

 Remove the need for coordination with multiple supply chain contracts
 Improve collaboration
 The ability to improve the ongoing process
 Improve potential for long-term partnership
(designingbuildings, 2021)

Regarding Tesla’s Gigafactory, it is assumed that an automotive organization such as Tesla

would not have workers with the required expertise in the building of a Gigafactory within

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 their organization. Hence the project team has decided to hire a prime contractor for the
above job to professionals within their various industries and will all be closely monitored by
the design manager to achieve optimum results.
One of the major reasons behind subcontracting asides from sourcing expertise is also
giving back to society in terms of creating jobs for qualified locals.
According to the Dallas Architect review, below three companies in Texas have the required
potential to be prime contractor, as their area of experience are in construction and they
have successful project in this field.
 Lyness construction
 Austin Industries
 Ridgmont commercial construction
(Dallas,2021)

6. Project budget and cost estimation

There are several methods for cost estimation, and in this project Analogous estimating
has been used which is a top-down technique for cost, resources, and duration estimation.
(PMBOK). This technique is useful while plenty of information is not available. (PMI Practice
Standard for Project Estimating)
The analogous method of cost estimating compares the proposed project to similar
completed projects that were cost and functionally defined similarly to it.
A sound decision must be made when comparing the qualities of two completed projects.
This decision must be calculated in a way that can be described in terms of cost. The
technique should be as objective as feasible.
The basic idea behind this strategy is to extrapolate from related cases (the source case)
and the current context (target case). The source cases are extracted from the project's
historical databases. The structure of the destination case may differ from that of the source
instance. The case base must be frequently updated with new handled instances. (Challal,
A. and Tkiouat, M., 2012.) Tesla’s cost estimation is calculated according to the previous
experience of a similar project and the percentages are considered based on Peters (1990)
fixed capital investment.

6.1 Cost breakdown

As below the cost breakdown figure, the total estimated cost of the project is $1 billion and
the main portion of the cost is related to phase 2 due to the technological concept of the
company.

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 Figure 16

6.1 Advantages and disadvantages of estimation

Like any other cost estimating technique, the Analogous method has advantages and
disadvantages including as below:

Advantages:
 This technique doesn’t require too many resources or time
 It can be estimated with very limited data
 It is useful for the initial phase of the project
 It can be ideal for high-level assessment as it’s showing the big picture of the project

Disadvantage:
 The estimation would be roughly and more often is not accurate
 It is calculated based on historical data and previous experiences and if the
assumption was incorrect, the estimation is useless

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  Top-down estimations are frequently influenced in practice by political factors or
even pressure rather than by the unique qualities of the project or the knowledge of
the subject matter specialists.
 The high-level inaccuracy of Analogous estimation causes certain limitations on
decision making or project planning and controlling.

7. Risk management
Individual risk occurrences as well as overall risk can be understood and controlled through
the risk analysis and management process, which maximizes success by limiting threats
while optimizing possibilities and results. Risk management is focused on forecasting what
could go wrong and implementing methods to decrease uncertainty to a reasonable level.
(apm, 7th edition)

7.1 Risk Assessment (PESTEL Analysis)

Risk assessment is the process of analyzing and evaluating and it is a systematic

examination of all aspects of work. One of the tools for analyzing the risks is PESTEL which
is executed for this case as below table:

Risk Factor Description

These are government’s decisions that will have an effect on a certain environment. One such
factor is intrastate trade agreements. Trade agreements, state government policies, and economic
chain reactions are all examples of political that might have an impact on Tesla's company (Frue,
2018). Although Tesla has generally benefited from lower taxes in certain spheres, the taxation
Political policies in Texas makes it a state with high tax burden on companies and properties (Dallas
Express, 2022).Non-governmental organisations, protest and pressure groups, and activist
movements, among others, have a significant impact on contemporary Texas policies. According
to Shaw (2020), Tesla should collaborate closely with these organisations in order to make a
greater contribution to both community and company goals (Shaw, 2021).
The pandemic, lockdown, and business closure plagued the whole year of 2020. However, the
post-pandemic world's recession is still to come. It means that people will lose their employment
and their purchasing power will fall (Shaw, 2021). Lithium, cobalt, steel, aluminium, nickel, and
lithium cells are some of the primary components used in in-house production by Tesla. The
Economical
market for such components and resources, as well as their pricing, are volatile (Shaw, 2021).
Even minor changes in the cost of those supplies might have a significant influence on the retail
pricing. Rapidly changing volatility foreign exchange market also impacts the rate and time at
which Tesla is able to procure some goods, products and services from international partners.
Texas is known as a state with a large amount of social diversity, in terms of ethnicity, gender,
income levels etc. Ethnic and cultural differences continue to cause problems in the workplace
(Thisway, 2017). Some people still harbor prejudices towards persons from other ethnic, cultural,
Social
and religious backgrounds than their own, and this might have an impact on a company's current
initiative.Tesla management has however noted that Workplace cultural sensitivities training and
diversity awareness initiatives can assist solve this issue. (Thisway, 2017).

Table 5

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 Risk Factor Description
Another social factor is the consideration that certain people have for constructing huge projects
Technological that can directly or indirectly affect the environment, which feels opposite to what Tesla pushes for
in terms of eco-friendly gestures.
According to an article on Tesla by Kolodny (2019), the company's rising presence with its first
gigafactory has strained local infrastructure to the point that some are questioning if the transaction
was worthwhile. According to a USA Today analysis of 911 call and Occupational Safety and
Legal Health Administration inspection data, accidents at the Gigafactory are common (at least three per
month), but not all injuries are recorded as required by law. Also, because Tesla is known for its
encouragement for in-house manufacturing, it is liable legally if shortcuts that are not reported are
taken in the process of funnelling out said in-house production.
Natural and environmental issues like climate change as a result of global warming, varying and
unstable weather conditions, global pandemic like the corona virus and natural disasters like
Environmental
earthquakes and hurricanes are factors that could pose as risk to the company and any ongoing
project.

Table 6

7.2 Risk breakdown

Following the pattern of the WBS description above, the RBS is defined as "A source-
oriented grouping of project risks that organizes and specifies the project's total overall risk."
(Hillson, D. (2002).
Such risk breakdowns give the understanding of risk exposure required for effective risk
management. As a result of the above PESTLE analysis, below the RBS for Gigafactory is
shown:

Figure 17

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 7.3 Risk Analysis (FMEA)

FMEA, or Failure Mode and Effects Analysis, is a tried-and-true method for analyzing
failures and assessing risk. While each phase of the FMEA process is important for
successful analysis, the risk assessment technique is key in deciding an action plan for
process improvement. In addition, ineffective risk assessment can lead the project to an
ineffective risk reduction strategy. Regarding Tesla’s project, below FMEA is shown and the
high risks factor are demonstrated in red color.

Probabili
Probabili Probabi
ty of
Severit ty of lity Responsible
Risk Category Risk early Risk Response Recommended Action
y occuranc Index Owner
Detectio
e (RPN)
n
Involvement of key
Intrastate trade CEO, Project stakeholders and sponsor to
9 2 10 180 Accept
agreements changes Sponsor have better communication
with governments

Involvement of key
CEO, Project stakeholders and sponsor to
Political Political uncertainty 5 2 10 100 Accept
Sponsor have better communication
with governments

Involvement of key
CEO, Project stakeholders and sponsor to
Taxation policies 7 5 5 175 Accept
Sponsor have better communication
with governments
CEO, Project Balance cash inflow and
High prices in Texas 9 6 3 162 Accept
Sponsor outflow
Involvement of key
CEO, Project stakeholders and sponsor to
Inflation 9 6 2 108 Accept
Sponsor have better communication
with governments
Economical FX currency CEO, Project
7 2 5 70 Accept Effective FX strategy
fluctuation Sponsor
Use lesson learnt from Covid
19 pandemic experience
Post-pandemic CEO, Project
9 9 2 162 Mitigate brainstorming meetings on
recession Sponsor
how to cover the loss during
pandemic

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 Be aware of multiple
Social diversity; cultures and ethnicities
CEO, Project
ethnicity, gender, 5 5 2 50 Avoid training for all staffs
Sponsor
income level etc. regarding respect to
gender/ethnicity
Social
Involvement of key
Pressure from NGOs
CEO, Project stakeholders and sponsor to
and environmental 7 7 3 147 Avoid
Sponsor have better communication
activists
with governments
Data backup.
CEO, Production
Regular security update.
Information and engineering
9 8 5 360 Mitigate Security trainings for staff.
insecurity manager, Project
Implementing best security
Manager
tools
Data backup.
CEO, Production
Regular security update.
and engineering
Industry espionage 9 8 6 432 Mitigate Security trainings for staff.
manager, Project
Implementing best security
Manager
tools
Technological
Data backup.
CEO, Production
Regular security update.
and engineering
Cyber attacks 9 8 5 360 Mitigate Security trainings for staff.
manager, Project
Implementing best security
Manager
tools
Data backup.
CEO, Production
Regular security update.
Technological and engineering
9 6 8 432 Mitigate Security trainings for staff.
glitches manager, Project
Implementing best security
Manager
tools
Preparing optimized working
platforms for remote
CEO,Project
working
Sponsor, Quality
Pandemic 9 3 10 270 Accept Define a process for
and assurance
emergency situations
manager
Regular trainings &
maneuver
Preparing optimized working
platforms for remote
Quality and working
Environmental Natural Disaster 7 4 10 280 assurance Accept Define a process for
manager emergency situations
Regular trainings &
maneuver
Preparing optimized working
platforms for remote
Quality and working
Climate change 5 5 5 125 assurance Accept Define a process for
manager emergency situations
Regular trainings &
maneuver

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 Legal liability CEO, Quality and
stemming from in- assurance Employ standard legal
9 2 1 18 Avoid
house manager, Project consultants.
manufacturing Manager
Legal Quality and
Workplace safety Ensuring work safety
9 5 5 225 assurance Avoid
issues process.
manager
Patency and CEO, Project Implementing compliance
9 5 5 225 Avoid
copyright issues Manager measures.
Escalate to project sponsor.
Implement late clauses.
Implement backup.
Contractor’s delay 9 7 3 189 Project Manager Mitigate Implement use of project
management software to
keep track of all works and
costs
Escalate to project sponsor.
Implement late clauses.
Implement backup.
Varying market
Project Management 9 6 5 270 Project Manager Mitigate Implement use of project
conditions
management software to
keep track of all works and
costs
Escalate to project sponsor.
Implement late clauses.
Implement backup.
Scope change 8 6 5 240 Project Manager Mitigate Implement use of project
management software to
keep track of all works and
costs
Table 7

8. Project management methodologies

A project management methodology is a collection of rules, techniques, and processes used
in project planning, execution, and management. (Projectmanager, 2021) Using project
management approaches is critical for project success, and it is a vital tool to have a clear
strategy that specifies all required actions to properly complete the project. Structure,
process standards, test activities, and deliverables are all provided by project
methodologies. (kissflow)
There are 10 top project management methodologies, and each of them has its own
advantage and disadvantage. However, using an efficient methodology can speed up the
delivery and increase the accuracy of the project plan.
The current mythologies are as below:

 Waterfall
 Agile
 Scrum (works with agile framework)

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  PMI’s PMBOK
 Kanban (works with agile framework)
 Extreme programming
 Prince2
 Lean (works with agile framework)
 Six sigma

Figure 18 (thedigitalproject manager, 2021)

8.1 Applied project management methodology

According to the concept of the project, and based on the characteristics of each
methodology the best-fitted methodology is PMBOK.
Although, the waterfall methodology is great for manufacturing and construction projects,
which are highly structured, and when it is too expensive to change after starting the project,
there is a risk that any phase starts only when the previous one ends, so even if one step is
late, there will be a delay. Tasks in waterfall methodology are classified into phases
according to their activity types. So, for the current project, as there is a need to shift one
task from phase 2 to phase 1 to decrease 100 days from the whole timeline (as explained in
detail in the PIP section), the best choice for project management methodology is PMBOK.
The PMBOK contains definitions and principles for project planning, scheduling, execution,
and control. The PMBOK methodology can be used for any type of project from small to big.
It is a great tool to keep all team members, and stakeholders on the same page through
various stages, and it helps to have a clear understanding of how a project can be
managed. (Project manager, 2021)

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 9. Conclusion
For the organization to govern the project, project management is crucial. A team leader
must understand the project lifecycle, risk, and risk management in order to develop a
successful project strategy. Furthermore, using the effective tools throughout the process
time estimation might lead to the project's completion.
According to this case study, below factors have been observed that need to control by
project manager:

Milestone: the project has divided to two phases, that phase 1 related to infrastructure and
phase 2 related to internal assembly and support system. Moreover, each phase has its own
milestone and to achieve each step, the monitoring skill of project manager is vital.
Risk: based on company’s nature, the main risk is related to technological factors which
project manager needs to monitor and control them strictly.
Cost: initial project implementation plan according to provided details is about 2 years,
however with optimization plan (750 days) still the project has 322 business days delay,
which it causes cost increment. So, more optimization plan is required.

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