ENGINEERING ECONOMICS AND PROJECT

MANAGEMENT

SKKK 4173

PROJECT PLAN PROPOSAL

Installation of Air Pollution Control System and Device at SIRIM
Foundry, Rasa Hulu Selangor

Date of Submission: 30th May 2016

Lecturer: Dr. Hashim Hassan

Name Matric No.

Muhammad Rizal bin Abdul Rahim SX153153KKKF04

Muhamad Farid Farhan bin Ariffin SX123031KKKF04

TABLE OF CONTENTS

Clause Descriptions Page

1.0 Project Scope Statement 3

1.1 Project Objectives 3

1.2 Deliverables 3

1.3 Milestones 3

1.4 Technical Requirements 4

1.5 Limits and Exclusions 4

2.0 Project Management Planning 5

2.1 Project Organization Chart 5

2.2 Risk Analysis 6

2.3 Resource Requirement 7

2.3.1 Budget 7

2.4 Work Breakdown Structure 8

2.5 Project Scheduling 9

2.5.1 Forward and Backward Pass 10

2.5.2 Gantt Chart 11

3.0 Baseline Budget Control Plan and Status Report 12

3.1 Baseline Budget 12

3.2 Status Report 13

3.3 Index to Monitor Progress 14

3.4 Summary Graph 15

4.0 Conclusion 16

5.0 Recommendations 16

References 17

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1.0 PROJECT SCOPE STATEMENT

1.1 Project Objectives

To install Air Pollution Control System and Device at SIRIM Foundry, Rasa Hulu Selangor with duration of
completion not more than 61 days at cost not exceed than RM 186,000

1.2 Deliverables

SIRIM Foundry offermetal castings services.

Metals are cast into shapes by melting them into a liquid, pouring the metal in a mold, and
removing the mold material or casting after the metal has solidified as it cools in order to form
desired shapes and sizes.
The most common metals processed are aluminium and cast iron. Other metals such as bronze,
brass, steel, magnesium, and zinc, are also used to produce castings in foundries.
This metal castings processes produce significant quantities of airborne pollutants in all forms
such as particulate, gases, vapors and fumes.
Many are toxic and concentrations often exceed safe levels of exposure.
Reducing the pollutants to acceptable levels is critical for the safe operation of many industrial
processes and mandatory to meet stringent emission regulations.
Air pollution control equipment need to be install in order to achieve the pollutants acceptable
levels and meet the requirements from DOE Malaysia regulations.

1.3 Milestones

Site visit
Build internal components
Modify roof and floor
Construct collection stack
Pour concrete and install frame
Build Hi-Temperature burner
Install Control System
Install Air-Pollution Control Device
Inspection and Testing

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1.4 Technical Requirements

Collection stack must be size 1500 mm diameter and 30 m height

Concrete and frame size must capable to support and meet the size of Air Pollution Control
System and Device
Hi Temperature burner that able to operate temperature range 1500F to 1800F
Control Systemconsists of Centrifugal exhaust blower, hoods, gas duct and stacks
Air-Pollution Control Device type used is Regenerative Thermal Oxidizers (RTO)
No of workers for installation are 8 people
Air Pollution Control System and Device operation hours from 8.00 a.m to 5.00 p.m
Cleaning and Maintenance will be conduct annually

1.5 Limits and Exclusions

Air-Pollution Control System and Device capable tomeet requirement of emission from DOE
Malaysia as stipulated in the Environmental Quality (Clean Air) Regulations 1978
The workers must comply the OHSAS safety requirements during installation
Site work is limited on Monday to Friday from 8.00 a.m. to 5 p.m.
Achieve main goals of the project in maximum ways.

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 2.0 PROJECT MANGEMENT PLANNING

2.1 Project Organization Chart

The Project Organization Chart are described as per below:

AIR PURIFIER SDN BHD

Managing Director

Administration & Sales & Marketing Engineering Account & Finance

Human Resources & Inspection

IT Customer Advertising Project Asset Purchasing &

Service Manager Management Supply Chain

Project Maintenance
Team & Inspection

Figure 1: Project Organization Chart

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2.2 Risk Analysis

The risk analysis identified as per below table:

The increase of price due to Misunderstand requirements

currency exchange Communication overhead
Communications
Budget risks Troublesome in dealing with sub-
risks
contractor andoverseas suppliers
The cost are higher than estimated

Delay in schedule Lack of experience

Late delivery of parts and device Resources and Negatives attitudes of members
Schedule risks
Miscommunications Team Lack of commitment
Bad weathers Resources turnover

Device and parts damaged Decisions are ambiguous and

Decisions & issue
Technical risks Lack of experience and expertise incomplete
resolution

Environment Workplace safety Fails to match organization

Organizational
risks Pollutions culture and vision

Insufficient of utilities Not following Standard Operating

Utilities risks Management
Procedure (SOP)

Team Lack of professionalism Quality issues that affect the

management Conflict of opinions and working style Commercial employee (Customers) and
risks Information and file sharing company reputations

Quality issues Change request conflicts with

Requirements Did not comply with the requirements Change requirements
risks Requirements fail to align with management
strategy

Table 1: Risk Analysis

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2.3 Resource Requirement

The resource requirement are described in table below:

Equipment &
Financial People Human resources Marketing
Device

Employee wages Air pollution The manpower Include expertise, Customer

Cost to build internal control system involve in competency, service, sales
components Air pollution construction knowledgeand and marketing
Cost to modify roof Control device and installation training
and floor of the Air
Cost to build Pollution
concrete and frame Control System
Cost to Build Hi- and Device
Temperature burner Engineers
(Furnace)

Table2: Resource Requirement

2.3.1 Budget

The budget for each activities of the project are described in table below:

No. Descriptions Budget, RM

1 Site visit 2,000

2 Build internal components 32,000

3 Modify roof and floor 16,000

4 Construct collection stack 14,000

5 Pour concrete and install frame 18,000

6 Build Hi-Temperature burner 30,000

7 Install Control System 32,000

8 Install Air-Pollution Control Device 34,000

9 Inspection and Testing 8,000

Total 186,000

Table 3: Budget

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 2.4 Work Breakdown Structure

The Work Breakdown Structure are described as per below:

High Performance and Quality of Air

Pollution Control System and Device

Selection of Air Pollution Control

System and Device, Regenerative
Thermal Oxidizers (RTO)

Build and set up Modifying the Construction Installation of Control Installation of Air
the internal roof and floor works including System which involves Control Device,
components pour concrete in assembling the Regenerative
and assemble the Centrifugal exhaust Thermal
frame blower, hoods, gas duct Oxidizers (RTO)
and stacks

Inspection & Testing

Figure 2: Work Breakdown Structure

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2.5 Project Network Schedule

The project network schedule are listed in table below:

Durations
Activity Descriptions Predecessor
(Days)

A Site visit None 2

B Build internal components A 7

C Modify roof and floor A 14

D Construct collection stack B 7

E Pour concrete and install frame C 14

F Build Hi-Temperature burner D 7

G Install Control System D 14

H Install Air-Pollution Control Device E,F 28

I Inspection and Testing G,H 3

Table 4: Project Network Schedule

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 2.5.1 Forward and Backward Pass

0 A 2 2 B 9 9 D 16 16 F 23

Construct Build Hi-

Build internal 7 7
0 Site Visit 0 7 component 7 7 Collection Stack 7 Temperature
Burner

0 2 2 16 16 7 23 23 7 30
9 7

2 C 16 16 E 30 16 G 30

Modify Roof Pour Concrete Install Control

0 And Floor 0 0 and Install 0 28 System 28
Frame

2 14 16 16 14 30 44 14 58

30 H 58

Install Air-
0 Pollution Control 0
Device

30 28 58

LEGEND

ES ID EF 58 I 61

Inspection and
SL DESCRIPTION SL 0 Testing 0

LF DUR LF 58 3 61

Critical Path

Figure 3: Forward and Backward Pass

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 2.5.2 Gantt Chart

Descriptions Duration, Days

A. Site visit 0-2

B. Build internal
components
2-9

C. Modify roof
and floor
2-16

D. Construct
collection stack
9-16

E. Pour concrete
and install frame
16-30

F. Build Hi-
Temperature 16-23
burner

G. Install Control
System
16-30

H. Install Air-
Pollution Control 30-58
Device

I. Inspection and
Testing
58-61

Legend :

Critical Path

Figure 4: Gantt Chart

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3.0 BASELINE BUDGET CONTROL PLAN AND STATUS REPORT

3.1 Baseline Budget

The total budget for the Installation of Air Pollution Control System and Device for Air Purifier Sdn.Bhd. is
RM 186,000.00. The budget will be allocated in some units of activities of the project.

Activity Descriptions Predecessor Duration, days Cost, RM

A Site visit None 2 2,500

B Build internal components A 7 30,000
C Modify roof and floor A 14 14,000
D Construct collection stack B 7 19,500
E Pour concrete and install frame C 14 17,000
F Build Hi-Temperature burner D 7 32,500
G Install Control System D 14 29,000
H Install Air-Pollution Control Device E,F 28 32,000
I Inspection and Testing G,H 3 6,000

Table 5: Project Network Cost

Schedule Information Baseline budget needs (RM 00)

Time Period
ACT DUR ES LF SL Total PV
0 1 2 3 4 5 6
A 2 0 2 0 2 2
B 7 2 16 7 32 16 16

C 14 2 16 0 16 8 8

D 7 9 23 7 14 14

E 14 16 30 0 18 8 10

F 7 16 30 7 30 30

G 14 16 58 28 32 14 18

H 28 30 58 0 34 14 10 10

I 3 58 61 0 8 8

Total PV by period 26 46 54 32 10 18

Cumulative PV by period 26 72 126 158 168 186

Table 6: Baseline Budget

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3.2 Status Report

Status reports from Ending Period 1 to 6 are listed in below table:

Status Report: Ending Period 1(Day 1-11)

Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B 70 % 22,000 21,000 16,000 1,000 6,000
C 60 % 9,600 8,400 8,000 1,200 1,600
Cumulative Totals 33,600 31,900 26,000 1,700 7,600

Table 7: Status Report Ending Period 1

Status Report: Ending Period 2 (Day 12-21)

Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B Finished 32,000 30,000 32,000 2,000 0
C Finished 16,000 14,000 16,000 2,000 0
D Finished 14,000 19,500 14,000 - 5,500 0
E 60% 10,800 10,200 8,000 600 2,800
Cumulative Totals 74,800 76,200 72,000 - 1,400 2,800

Table 8: Status Report Ending Period 2

Status Report: Ending Period 3(Day 22-31)

Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B Finished 32,000 30,000 32,000 2,000 0
C Finished 16,000 14,000 16,000 2,000 0
D Finished 14,000 19,500 14,000 - 5,500 0
E Finished 18,000 17,000 18,000 1,000 0
F Finished 30,000 32,500 30,000 - 2,500 0
G 85% 27,200 24,650 14,000 2,550 13,200
Cumulative Totals 139,200 140,150 126,000 - 950 13,200

Table 9: Status Report Ending Period 3

Status Report: Ending Period 4 (Day 32-41)

Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B Finished 32,000 30,000 32,000 2,000 0
C Finished 16,000 14,000 16,000 2,000 0
D Finished 14,000 19,500 14,000 - 5,500 0
E Finished 18,000 17,000 18,000 1,000 0
F Finished 30,000 32,500 30,000 - 2,500 0
G Finished 32,000 29,000 32,000 3,000 0
H 60% 20,400 19,200 14,000 1,200 6,400
Cumulative Totals 164,400 163,700 158,000 700 6,400

Table 10: Status Report Ending Period 4

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 Status Report: Ending Period 5 (Day 421-51)
Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B Finished 32,000 30,000 32,000 2,000 0
C Finished 16,000 14,000 16,000 2,000 0
D Finished 14,000 19,500 14,000 - 5,500 0
E Finished 18,000 17,000 18,000 1,000 0
F Finished 30,000 32,500 30,000 - 2,500 0
G Finished 32,000 29,000 32,000 3,000 0
H 90% 30,600 28,800 24,000 1,800 6,600
Cumulative Totals 174,600 173,300 168,000 1,300 6,600

Table 11: Status Report Ending Period 5

Status Report: Ending Period 6 (Day 52-61)

Task % complete EV AC PV CV SV
A Finished 2,000 2,500 2,000 - 500 0
B Finished 32,000 30,000 32,000 2,000 0
C Finished 16,000 14,000 16,000 2,000 0
D Finished 14,000 19,500 14,000 - 5,500 0
E Finished 18,000 17,000 18,000 1,000 0
F Finished 30,000 32,500 30,000 - 2,500 0
G Finished 32,000 29,000 32,000 3,000 0
H Finished 34,000 32,000 34,000 2,000 0
I Finished 8,000 6,000 8,000 2,000 0
Cumulative Totals 186,000 182,500 186,000 3,500 0

Table 12: Status Report Ending Period 6

3.3 Index to Monitor Progress

The Index to Monitor Progress are calculated in below table:

Period SPI CPI PCIB

1 1.30 1.05 18.1 %

2 1.04 0.98 40.2 %

3 1.10 0.99 74.8 %

4 1.04 1.00 88. 4 %

5 1.04 1.01 93. 9 %

6 1.00 1.02 100 %

Table 13: Index to Monitor Progress

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3.4 Summary Graph

Summary Graph for EV,AC and PV are plotted as per below:

EV, AC, PV
200000
180000
160000
140000
120000
RM

100000 EV

80000 AC

60000 PV

40000
20000
0
1 2 3 4 5 6
Period

Figure 5: Summary Graph

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4.0 CONCLUSION

Based on the data obtained, it was found that the objective of the proposal can be achieved within 61 days total
project duration and cost not more than RM 186,000 at the end of Period 6. This was supported by the SPI Index
value equivalent to 1.00, which indicates the project durations are completed on time. While for CPI, the
index value showed 1.02 which is more than 1.00, indicates that the project is under cost. The usage of
functional structure in this projects organization would enhance the productivities and efficiencies of each
workers and their employees. On the other hand, the application of this project scheduling and work
breakdown structure would also be able to ensure the project durations for all of the activities are
completed within time frame and maintained reasonable budget control plan.

5.0 RECOMMENDATIONS

Based on CPI Index for Period 2 and 3, the value showed less than 1.00 which indicates that the cost
was over budget. There are several recommendations that can be proposed to improve the cost of this
project during the period 2 and 3. First, the project management team should reduce the cost by
identifying the parts, raw materials, equipment and etc from reliable and valid suppliers that can offer
much cheaper price and at the same time capable to meet the technical requirements for the project.
Secondly, the project team need to consider the currency exchange loss in the budget if the parts, raw
materials and equipment were purchased from other countries. The currency loss must be include in
order to avoid any burst in allocated budget.

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REFERENCES

1. Clifford F. Grey, Erik W. Larson, Project Management; The Managerial Process, published by
The McGraw-Hill Companies, 2008

2. https://en.wikipedia.org/wiki/Regenerative_thermal_oxidizer

3. http://epp.co.in/eppchemical/air-pollution-control-system.htm

4. http://www.doe.gov.my/eia/wp-content/uploads/2012/03/A-Guide-For-Investors1.pdf

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