Table of Contents

Advanced Project Management and Risk Management..................................................................5

1.0

Critical Review Methodology and Concepts for an Organization Project...........................5

1.1

Introduction.......................................................................................................................5

Basic Concept Regarding Organization Critical Review........................................................5

1.2

Brief Introduction of Ras Lanuf Oil and Gas Processing Company, Libya......................6

1.3

Project Management.........................................................................................................6

1.4

Objective Clarification......................................................................................................7

1.5

Project Organization Structure..........................................................................................8

Hierarchy Structure..................................................................................................................8
Appointing competent manager/supervisor.............................................................................9
Power Balance.........................................................................................................................9
1.6

Complexity Determination................................................................................................9

Reviewing Organizational Complexity.....................................................................................10

Reviewing Vertical Differentiation........................................................................................10
Surface level Review.............................................................................................................10
Reviewing Horizontal Differentiation...................................................................................10
Reviewing Technological Complexity.......................................................................................11
Technology Differentiation Analysis.....................................................................................11
Technological Interdependency Analysis..............................................................................11
1

1.7

Time/Schedule Assessment.............................................................................................12

Analyzing the defined activities............................................................................................12

Review of Schedule Development.........................................................................................12
1.8

Critically Review of Cost Management Processes.........................................................13

Critic of Costs of Technology................................................................................................13

1.9

Quality Processes Assessment........................................................................................14

Analysis of Explanation provided regarding Performance Criteria......................................14

Project / Process Objectives in accordance of Quality Standard...........................................14
1.10

Training and Education facilities Review...................................................................15

1.11

Monitor and Control....................................................................................................15

Plus Meeting..........................................................................................................................16
Program Reviews...................................................................................................................16
1.12

Communication Patterns Review................................................................................16

2.0

Project Plan.........................................................................................................................17

2.1

Brief Introduction of Project...............................................................................................17

2.2

Scope Statement..................................................................................................................18

Purpose......................................................................................................................................18
Objective....................................................................................................................................18
Project Product...........................................................................................................................18
Project Product (Monitoring System) Characteristics...............................................................18
2

Milestones..................................................................................................................................19
Project Deliverables...................................................................................................................19
Budget........................................................................................................................................19
Project Success Criteria.............................................................................................................19
Cost........................................................................................................................................20
Quality...................................................................................................................................20
Schedule.................................................................................................................................20
Critical Assumptions and Related Constraints..........................................................................20
Maiden Project Requirements....................................................................................................21
Potential Risks...........................................................................................................................21
Milestones..................................................................................................................................21
2.3

Project Plan.........................................................................................................................22

Gantt chart.................................................................................................................................23
PERT..........................................................................................................................................24
Work Breakdown Structure for Project.....................................................................................25
WBS Structure...........................................................................................................................25
2.4

Risk Management Plan.......................................................................................................26

Strategies....................................................................................................................................27
Risk Identification.................................................................................................................27
Risk Analysis.........................................................................................................................27
3

Risk Modifications.................................................................................................................27
Risk Monitor and Control......................................................................................................27
2.5

Project Organization Structure............................................................................................28

Appendix........................................................................................................................................29
Bibliography..................................................................................................................................31

Advanced Project Management and Risk Management

1.0

Critical Review Methodology and Concepts for an Organization Project

1.1

Introduction

In order to critically review an organization or any project the basic need is to understand the
processes and the major objectives involved in the organization processes. An organization
constitutes different departments and requires the value sustainability in each art of the company,
to ensure the best output in financial and non-financial terms. At present the organizations have
revived their position to project oriented organizations. Projects are said to be small organization
working with a company towards the benefit of the company. A proper planning, development,
execution of project processes with allotted time and budget, through quality sustainability has
been the major concern for the profit earning. Different methodologies and concepts have been
linked to withstand the appropriate organization of the Company projects. The proper research,
planning, designing of the processes, allotment of time indicating the process starting and finish
time, along with it the appropriate budget allocation, monitoring and controlling of risks are
some processes maintained by different techniques. These involve investment methods, cost
determination methods and concepts, motivational theory implementation for the employees,
organizational structure complexity dealing methods, technological changes, marketing strategies
maintenance, resources utilization methods, quality sustaining methodologies like Lean, TQM
etc. practical implication and many such methods and techniques.
Basic Concept Regarding Organization Critical Review
The basic concept that backs the critical review of any organization or project is to analyze the
different systems, departments, the procedures, the workforce related factors, and the structures
5

based variables, the complexity management being done or not, along with the review regarding
the control measures and the training and development are involved. Reviewing a system of
organization or a project involves considering the optimistic and pessimist view to be utilized.

1.2

Brief Introduction of Ras Lanuf Oil and Gas Processing Company, Libya

Organizations work in accordance to benefit the people and earn maximum profit. This in turn
results in economy boost up of a country. A company is an integration of different processes
integrated to fulfill the firm objectives. Ras Lanuf Oil and Gas Processing Company is a Libya
corporation that is owned by National Oil Corporations (NOC). Libya holds oil reserves of 46.4
billion barrels of oil. Though in 2011, a layer of revolution in the formal authority was observed,
but the system of sovereignty of central system over the natural resources remained the same. Oil
reserves are in abundance in Libya, though petroleum is the major income source for Libya
economy and social existence (Kailani & Saleh, 2012). Libya has a strong position in petroleum
economy of the world. The Raslanuf Oil and gas processing company (RASCO) was founded to
form the processes linked to the manufacturing of oil and petrochemical, and to facilitate
electricity and other needed elements such as nitrogen gas, instruments, service air, cooling
water, drinking & service water, steam, and chemicals. RASCO has been the establishment
established to ensure the best products availability of oil and other petrochemical products
(RASCOOfficialWebsite, n.d.).

1.3

Project Management

Project has been regarded as the one time activity that incorporates in an organization for a
specified time period to accomplish company particular objectives being set in accordance to
company goals and objectives. Project Management has been referred as the methodology or
procedure that facilitate the organization to manage different puzzled piece into their right place
6

through incorporating technical, human and process related means through utilizing the
resources, budget, scope and schedule details (Bakouros & Kelessidis, 2000).

1.4

Objective Clarification

The primary concern in any organization or project is the clarity in stating the objectives. The
basic critic involves the determination of the objective clarification and goals and aims clear
mentioning. The management should clarify the primary goals and aims of the organization and
the key expectations of the organization from particular departments or the processes, to ensure
the risk minimization. The objective clarification could be ensured through communicating the
major concerns of the organization for which the project has been brought into practice, the
expectations of the organization from the workforce. It involves the concepts and scope
determination and clarity, in order to obtain employee job satisfaction and motivate them to work
through linking personal targets with organization target achievement. Scope of the project
would provide a road map regarding the departments, the resources involved (Turner, 1993).
Moreover, objective clarification method if implemented appropriately, it facilitates the overview
of expected results of the project. Thus, providing ease to the workforce, mangers, departments
of the organization involved in projects to ensure the achievement of estimated results. As, in the
company under study Ras Lanuf, the major objective of the operation section has been explained
to be the proper monitoring and maintenance of the different divisions involved in operation
section. This power project of Ras Lanuf basically deals with providing electricity to
petrochemical complex, along with basic elements to ensure the maintenance of the units
incorporated in this particular division. Thus, proper objectives of the utility department of
Company operation section have been explained to avoid any confusion and ensure the better
execution of the utility department divisions in best possible manner. This would lead to the

biggest goal of company operation section regarding maintenance and monitoring of the
company projects.

1.5

Project Organization Structure

Organizing a whole structure of establishment or a project is the basic requirement that needs to
be identified and fulfilled. The organizational structure refers basically to the details regarding
who will report whom and in what manner. The organization could be critically evaluated
through viewing and analyzing the structure of the organization on which a particular
establishment works. This could be done through analyzing different processes being mentioned
and linked in the structure. A company undergoes a project or any department related process
through inducing different sort of workforce. In order to reduce complexity among the project
organization structure, the determination of the supervisor for particular sector or process
involved subordinates has been considered the basic necessity (Ireland, 1985). A well-defined
organization structure overview provides blockage regarding any kind of ambiguity to arise.
Different methods that could be utilized while reviewing the formation of an appropriate
structure of organization or project includes:
Hierarchy Structure
The methodology of establishing a hierarchy for the processes involved in any project of
organization to be lead in a civilized and defined manner could be used. This could facilitate the
project to be executed in a stepwise manner avoiding confusion among linkage of processes and
the workforce. Thus, the structure type being induced in any system represents the way an
organization is upholding its processes.

Appointing competent manager/supervisor

The organization structure could be enhanced through appointing such a leader or supervisor that
could ensure best system and working patterns incorporating in the project. Moreover, an able
and highly skilled supervisor could only ensure the best outcome particularly for companies
involving construction or processing products.
Power Balance
The best method to organize a structure is through ensuring the power balance among the
managers and the subordinates to ensure the maximum utilization of the ideas, so that the
structure of the organization departments could be formulated in smooth manner. Power balance
presence or absence leads the critics being positive or negative regarding the organization overall
structure.
The Ras Laufe Company has been facilitating different equipment and material availability,
though the objectives of the company are clear but the structure of its departments are still in
vague situation to some extent. The utilities department has been under the direct supervision of
the operation sector, but the proper hierarchy system and the power division of workforce has not
been brought to surface clearly. This has been backed by the sovereignty system existence over
natural resource processing and utilization in Libya. Thus, the manpower system of Ras Lufe
seems to be in a dark room finding its way to come out to light.

1.6

Complexity Determination

The complexities linked to different sectors of the organization or the complications existence or
non-existence among or between the organization related and technology based complexities.
Though, the basic two sectors of organizations involve the management and the technological
means assimilated in the organizations.
9

Reviewing Organizational Complexity

The primary function of an organization management is to ensure that the differentiating
processes should be managed to reduce the difficulty linked to it. The organizational complexity
could be reviewed through providing in depth insight into the differentiation factors management
by consuming the following ways:
Reviewing Vertical Differentiation
The organization hierarchy level maintenance review regarding the depth of the listing and
involvement of the levels determines whether the organization processes are being managed in a
proper way or not.
Surface level Review
The surface review method could be utilized while organizational levels review. This refers to
the review of the outlook regarding the vertically differentiation of the organization, regarding
that whether the number of levels involved in the hierarchy are being ranked and linked as
required or not.
Reviewing Horizontal Differentiation
Horizontal different refers to the differences occurring in the units or departments of organization
and the structure of tasks in regard of how the workforce has been hired depending on the
number of specialists and the division of tasks being made appropriately or not. This refers to the
reviewing of the system, that whether the tasks have been divided appropriately to reduce the
costs and the excess workforce linked to a particular job. Organizational complexity management
details leads towards the evaluation of the organizational competencies being indulged in the
system (Bubshait & Selen, 1990).

10

The Ras Lanuf being an oil and gas processing company is based on different project existences
that are linked to different departments of the company working towards accomplishment of
different phases. The company utilities department has two major tasks to produce power and
steam and to support the utilities division including sea water system, cooling water system etc.
All the tasks are divided appropriately into subtasks, thus providing a minimum complexity in
horizontal differentiation of company system.

Reviewing Technological Complexity

The technological means are the basic need for fulfillment of the organizational processes at
present, particularly for construction and natural resource processing companies. Technological
complexity refers to the different technologies being utilized and in what manner to convert the
input into appropriate output. Thus, the technological complexity resolution or maintenance
could be critically analyzed through analyzing the method network and the human capital being
utilized to operate the technology involvement.
Technology Differentiation Analysis
The analysis of the inputs and outputs produced through focusing on the series of the tasks
involved and the technological means used for doing that particular job whether fits accordingly
or not.
Technological Interdependency Analysis
The analysis of the interdependency existence between tasks, between used technology or even
the specialists indulged in it, provide an overview of the utilization of resources. This facilitates
the critical analysis of the technology being utilized in the organization projects (Gidado, 1993).
The technologies being utilized in power production that supports the utilities division has been
well-organized and in an appropriate manner as in all the processes incorporated in the project
11

system along with the used technology has been presented and utilized appropriately. This
provides an optimistic view of Ras Lanuf resources and technological utilization, thus
representing the high quality standard maintenance (See Appendix for details).

1.7

Time/Schedule Assessment

The most important aspect under consideration in any project linked to the project has been time.
The best method to critically evaluate any organization or its project is to assess the time utilized
in particular project or task under consideration. Different techniques could be utilized for this
purpose.
Analyzing the defined activities
For any particular task, process or project to be held by any company involves some activities
definition. To critically review the project schedule the defined activities should be assessed by
analyzing that whether the activities are in accordance with the project objectives or not.
Review of Schedule Development
For every organizational project a schedule is prepared and implemented to ensure that the
processes could be accomplished on the allotted time. Different techniques could be used to
review the schedule whether it has been established in appropriate manner or not. Such
techniques include:

PERT

It is referred as a control and planning tool that is used in determining the activities and the
milestones involved along with the time allotted to complete a particular task or process. It
makes a network diagram facilitating to analyze the estimated position of the project that could

12

be compared with actual position of project processes to distinguish the lacking part of the
project.

Gantt chart

It is also provides a computerized based diagrammatical representation of the tasks involved in

any particular organizational project linking different department processes, along with details of
the finish and the start date. Thus, the tool could be used to review the present and the expected
position of the processes (Maserang, 2002).

1.8

Critically Review of Cost Management Processes

The critical review of the cost processes and the techniques used to manage the costs in
particular process facilitates with a clear vision of the monetary position of Company. this
involves to ensure that the costs have been managed within the allotted budget for particular
process completion. The planned resources, allocation of costs for accomplishment of particular
activity involved in organization project process are analyzed with perspective of to lie within
the budget. Moreover, different cost techniques could be considered while reviewing the cost
allocated that either an appropriate cost estimation technique has been utilized or not.
Critic of Costs of Technology
The costs used in technology could be used for getting an appropriate critic regarding the
management decisions towards the allocation of budget being made in correct manner or not.
Technology is enhancing in its value due its excess utilization, thus, proper usage and appropriate
budget allocation is the need of hour under consideration. This facilitates to obtain valid result
while critically reviewing an organization or an organizational project financial assets utilization
or wastage being made (Trepper, 2000).

13

1.9

Quality Processes Assessment

There are different quality concepts that have been practiced and applied in different
organizations and in different organizations projects to sustain the quality in the system, these
include Total Quality Management, Six Sigma, Lean Production etc. and other such quality
measures.
Analysis of Explanation provided regarding Performance Criteria
Every quality system consists of some criteria related to the performances expected from the
workforce. Thus, the quality processes could be critically reviewed through assessing the extent
to which the performance criteria has been defined and explained by the top and middle level
management. This assessment would lead to a correct critical review regarding the quality
sustainability being maintained in the organization or not.
Project / Process Objectives in accordance of Quality Standard
Quality standards such as ISO Standard 2000 or Six Sigma and many others, depending upon the
country laws in which the company is established are made to be implemented in accordance to
the primary aims and objectives of the processes involved. Scrutiny of such quality standards
being implemented or not provides a clear vision of the quality sustainability of the company
processes (Mast, 2004).
However, the Ras Lanuf Oil and Gas Processing Company has been maintaining its quality
standards, as the company issues statement no.(19) revised for every year regarding the company
board concerns. Moreover, the company has been founded in accordance to the Statement 137\
1982 and statement 523\1986 and is obliged to sustain its quality according to National Oil
Company rules. This has been the major facts that besides fluctuating political and economic

14

position of Libya, the oil and gas sector of Libya oil companies are still among top reserve
holders of oil, gas and petroleum so far.

1.10

Training and Education facilities Review

Training and education enhancement are the most important aspects under consideration by the
organizations, as the rapid knowledge advancement and development has created high level of
competition. Moreover, the workforce is considered more profit maximization asset than the
physical assets. Thus, companies are spending a lot on the training and education of its
employees. The companies have been facilitating the employees with technical centers of data
through utilizing online facilities. So, the organizations incorporating such training and education
systems are said to be listed among good and value offering organizations. Therefore, critical
evaluation of training and education related facilities through utilizing the insight into such
facility availability or non-availability add to a fundamental critical review remarks for an
organization or its related project.
Ras Lanuf Company of Libya has been found to be good facilitator of these facilities to
employees. As, the company possesses a technical library started in 1984 to facilitate its
employees with possible education related material to enhance skills.

1.11

Monitor and Control

An organization critical review cannot be completed without analyzing its control and monitor
system. Only initiation, development, execution and implementation of project or processes
through utilization of the allotted resources and budget, are not the essentials for an organization
system even from critic point of view. The organizations systems and projects are useless without
proper monitoring and control. Thus, a detailed review of the control and monitor processes
provides an in depth critical review of an organization.
15

Plus Meeting
Plus meeting methods are used to review the daily basis meetings being held either in face-toface or virtually based is evaluated on the basis of the progress of the company. That is, either the
organization projects are in smooth position or not could be known through it. The extreme plus
meeting mode refers to some disruptions going on in the organization.
Program Reviews
These refer to the review of long term based projects to view the bigger snap of the processes
rather than daily based short-term reports. Thus, it leads to the vision of the benefit or loss
occurrence of the project outcomes (ProjectManagemnetGuru, n.d.).

1.12

Communication Patterns Review

The last but not the least method that leads to a wise and valid critical review regarding an
organization is to analyze the communication procedures being incorporated in an organization.
The process either being top-down or bottom-up communication would provide the view to
internal system of organization (Vokurka et al., 2000).

16

2.0

2.1

Project Plan

Brief Introduction of Project

Ras Lanuf Oil and Gas Processing Company works in accordance to the production of steam,
power and other products like petroleum products, petrochemical products and many others. The
Company has incorporated a project of monitoring and maintenance of power plant in Utility
division to provide electricity needed by company other plants and facilitate the company other
plants with products like nitrogen gas, drinking and steam water etc. The project could be made
much better if properly planned and stated. Monitoring and maintaining a power plant and it
products is a tough job which could be properly sustained through a proper project plan.

17

2.2

Scope Statement

18

The purpose of the project undergone by the operation section is

Purpose

concerned with the monitoring and looking after all productions units
that are incorporated in the utility division power plant and following
up all maintenance planning period.
The main objectives of the project are:

Objective

1.

To monitor and control the production units working and the

maintenance of the plans being implemented in different units of the

production plant.
2. To facilitate the processes involved in the production units being
planned and executed according to a pattern.
3. To ensure quality maintenance among all production units of the
power plant.
4. This project aims to ensure appropriate workforce division in all
the production units.
5. The project aims to facilitate the operation section with appropriate
control and monitor system to ensure elements and electricity

Project Product

availability to other plants of the company.

The project would facilitate the Ras Lanuf company with an
appropriate monitoring system for future usage as well to ensure the

Project

Product

elements providence.
1. The system would help the operation system to keep records of the

(Monitoring System) electric energy being produced by power plant and being transferred to
Characteristics

the other plants of the company.

2. The project product would be easy to use and implement.
3. The system would also provide a clear pictorial representation of
19

the processes being incorporated in the company.

20

This project would be divided in different phases with appropriate

Milestones

time division as shown:

Project Deliverables

Initiation Phase

June 2015

Planning Phase

July 2015

Development Phase

August 2015

Implementation Phase

November 2015

Close out Phase

December 2015
The project related deliverables would include the documents related
to the different phases of the project being utilized that include the
resources, project time, cost, quality and other risks details.
The budget involved in this project would be

Budget

Project
Criteria

Success

Categories

Budget

Staff

$ 2000

Contractual Services

$10000

Documentation

$ 5000

Other

$3000

Total
$20,000
The project would be made to rely on the balance of cost, quality and
time factors.
Cost
Cost requires being within the allotted budget for the project. The
excess costs results in losses, thus resulting in reduction in allotted
resources that would lead to issues in project completion.
Quality
High quality in system would be maintained as the monitoring system
21

is for the oil and gas company particular to monitor the production
units details incorporating dangerous elements. So, quality would be
assured to avoid any kind of destruction.
Schedule
The allotted time of seven months from June - December would be
assured that the project processes remain in this time span.

Critical Assumptions and Related Constraints

The project of the company would experience a six month time limitation, along with it an
installation of the monitoring system constraint. The issue regarding the low budget, in addition
to the lacking human resource abilities to utilize the system might arise. The need of the hour is
to consider the completion of the project within the time, as Ras Lanuf deals in the gas and oil
products which require consistent and high level of monitoring. Thus, time delay in the project
competition might cost the company a lot. Such a project involving technology cannot be held
without the cooperation of the stakeholders including the project manager and the company
employees, thus company involvement needs to be made maximum. In doing so, proper training
regarding the usage of the monitoring system would be provided to the employees.

Maiden Project Requirements

The project of the monitoring system for Ras Lanuf operation department to keep the records of
the resources being utilized would require proper computer systems. Highly qualified and
professional IT workforce would be needed. Moreover, the most import need would include the
availability of budget of approximately $ 20,000 in order to accomplish the project goals within
time.

22

Potential Risks

Risk of Human capital capable of ensuring the proper dealing with the installed system
The Risk associated with chances of lacking budget
The high costs risk might be an issue in long-term processes of the project
Most importantly the risks associated with the resistance towards adaptability of the
system among the employees of Las Ranuf Company

Milestones
Processes

Completion Duration

Initiation Phase

June

Planning Phase

July

Design Phase

August

Development/Programming Phase

October

Acceptance Phase

November

Deployment Phase

December

2.3

Project Plan

The project plan consists of the starting and the finishing time details along with the processes
involved in the project. The Gantt chart and PERT diagram are mostly used tools for representing
the project plan. The project plan for the present project is shown below:

23

24

Gantt chart

25

PERT

26

Work Breakdown Structure for Project

WBS Structure
The WBS facilitates with the overview of the processes involved in a project. The monitoring
system project for Las Ranuf Oil and Gas Company has been divided into
Level
1

Element Name
Monitoring and Evaluation System for Risk Management in

2
3

1.1
1.2

Las Ranuf Company

Initiate Monitoring System
Requirement along with Analysis of environment for the

1.3
1.4
1.5
1.6

system
Design Phase of the system
System Development Phase
Acceptance of the Monitoring System Phase
Implementation/ Execution of monitoring system

4
5
6
7

WBS Code

Monitoring and Evaluation System for Risk Management in Las Ranuf

Company
1

1.2
1.1
Initiate
Monitoring
System

Requirement
along with
Analysis of
environment
for the system

1.3.
Design
Phase of
the
system

1.4.
System
Development
Phase

1.5.
Acceptance
of the
Monitoring
System

1.6.
Implementati
on/
Execution of 27
monitoring
system

2.4

Risk Management Plan

Risk Management Plan is the process that refers to identify the risks associated with the projects,
along with it incorporates the probability of the risks that might occur and certain responses that
should be made for risks. Risk Management Plan is as much important for a Company as the
balancing of schedule, budget and quality. The Operation section of Ras Lanuf Company has
established an approach for risk management addressing the following questions:
1.

What id risk according to this project?

2.

Can we classify the risks associated with this project?

3.

What strategies could be applied to overcome this project risks?

4.

How can we handle these risks?

5.

What strategies would be implemented to track these associated risks?

6.

Who will be made responsible for managing these risks?

Strategies
Different Strategies would be implemented for tackling the risks associated with this project.

28

Risk Identification
This strategy would involve the identification of the risks and its reasons along with proper
documentation of the factors associated with the risks.
Risk Analysis
In order to evaluate the risk of project, different qualitative and quantitative methods and
techniques would be made use in this strategy. This strategy would determine the effects and the
consequences of the identified risks.
Risk Modifications
According to this strategy every risk varies from the other and has different impacts. So, different
processes according to the risks nature would be modified and used.
Risk Monitor and Control
This strategy refers to the processing related to tracking, evaluation and responses to particular
risk. Monitoring and control is a continuous ongoing process which incorporates the analysis,
identification and mitigation plans of the project associated risks.

2.5

Project Organization Structure

The project organization structure refers to the pictorial representation of the phases being
involved in the project structure. The organization structure for this project is shown below:

Monitoring System for Operation Section

Project Manager

Initiation Phase

Planning Department

Developing

Implementation
29

Manager

Manager

Department

Phase Manager

Manager

Supervisor

Supervisor

Supervisor

Supervisor

Staff

Staff

Staff

Staff

Employees

Employees

Employee

Employees

30

Appendix

31

32

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C.H.,

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35