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THE CHUNNEL TUNNEL


PROJECT
PHASE-2: THE DEVELOPMENT PHASE
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OVERVIEW OF THE DEVELOPMENT
PHASE

This phase is key to successful project management


and focuses on developing a roadmap that everyone
will follow.
The development phase of the Chunnel project
consists of detailed planning, communication
agreements and governmental approvals.
This was an important phase for the project because of
its sheer size, complexity and breadth.
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OVERVIEW OF THE DEVELOPMENT
PHASE

Two different companies, on two different sides of the


project, speaking two different languages, led by two
different managing directors, did the planning.
A large part of the struggles that the project incurred
were due to failures in the development phase of this
project.
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1) SCOPE
2) TIME
3) COST
4) QUALITY
PROJECT 5) HUMAN RESOURCE
MANAGEMENT 6) COMMUNICATIONS
AREAS 7) RISK
8) PROCUREMENT
9) INTEGRATION
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SCOPE MANAGEMENT

Scope of project was enormous.


Decision to link France and England was considered before
but never completed.
Measures to prevent scope creep was not put into place
This was the worlds largest privatized project, and scope
creep played a large part in the substantial increase from its
initial cost estimates and its completion behind schedule.
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SCOPE MANAGEMENT

Treaty of Canterbury and setting up of IGC resulted in


total loss of control in scope and huge cost increases.
During development phase, scope was not fully
assessed and proper precautions to prevent scope
creep were not put in place.

RATING :2
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TIME MANAGEMENT

Delays from parliamentary process


Design problems not identified at the start which
led to the further delay of the project
There was no enough time for risk management
The schedule planning during development
phase was less adequate
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TIME MANAGEMENT

The project finished a year later that it was due but it


was often because of things beyond project
management team control

RATING :3
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COST MANAGEMENT

The results of the Chunnel Project point clearly to challenges


when it comes to Cost management in this phase. The project
finished substantially above budget and led to an additional
significant claim. The reasons behind cost increase were :

1) Early negotiation by Banks : Banks early involvement in the


renegotiation of the contract and multiple methods of
compensation for different parts of work.
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COST MANAGEMENT

2) Change in design of tunnel : IGC decision to force Eurotunnel to


change its design from 600mm doors to 700mm doors by itself
cost the project a nine month delay which was the one of the
factors in increasing cost structure of project.

3) Inadequate risk management : Due to French fears about


unable to grout on their side , much more sophisticated and
advance equipment was used but later it was found that
equipment as old as 1974 which makes an impact on the cost of
project.
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COST MANAGEMENT

4) Size of project : Cost is one the difficult aspect to plan for the
project management team due to the huge magnitude of
project.

5) Claims against Eurotunnel : Due to lack of planning and


detailing in Cost management US $2.25 billion claim was brought
against Eurotunnel by the contracting company which affects
the financial aspects of the project.
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COST MANAGEMENT

6) Additional Cost due to Scope Creep: A USD 200 million


increase happened due to scope creep when a need for air
conditioning of tunnel was required

RATING : 2
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QUALITY MANAGEMENT

High standards were maintained by the Inter Governmental


Commission(IGC)
Highly advanced and cutting-edge tech(laser LOS and modern
GIS surveying techniques) was utilized
Very little margin for error and strict quality control measures
were enforced by the commission thereby bringing about
conformance with codal provisions.
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QUALITY MANAGEMENT

However bureaucratic regulations once the proof-of-concept


was established greatly hampered other areas such as scope
management which could have been done in tandem with
quality management
The quality of the techniques employed played a vital role in
ensuring the completion of an otherwise herculean project

RATING :4
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HUMAN RESOURCE MANAGEMENT

For every British team member, the French had a matching


counterpart.
IGC was also a part of this factor and IGC played an
important role in maintaining the quality of the project.
Teamwork was helped by the focus on fairness that was
followed by the two governments involved.

RATING :3
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COMMUNICATIONS MANAGEMENT

Limited communication between French and English sides.


Working on assumption towards meeting in the middle.
Lack of communication in development and design of
project.
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COMMUNICATIONS MANAGEMENT

The status reports were helpful and consistent every three


months yet it did not foster the spirit of communication. It
was akin to a yearly prospectus that did not accentuate
communication. It was a report for the financial world just to
appease the project to continue.
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COMMUNICATIONS MANAGEMENT

The initial communications was good which is stated by


smoothly solving the technical issues which cropped up

RATING :2
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RISK MANAGEMENT

Technical risk was taken into consideration very well


Process and approval risk were not envisaged
Both the governments denied to give financial
guarantee.
Over management of Risk
Contingencies and margins were barest minimum
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RISK MANAGEMENT

Social cost benefit analysis was not done


Environmental risk was one of the requirements
by the governments before awarding the
project
A proper risk assessment plan was not made

RATING :3
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PROCUREMENT MANAGEMENT

Effect of Scope and Specification change on


procurement management.
Procurement of over sophisticated and advanced
equipment due to over managing of risk.
Role of IGC(Intergovernmental Commission) over
quality and procurement of advanced technological
equipment to maintain quality of work with less error.
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PROCUREMENT MANAGEMENT

Impact on cost of the project due to scope and


specifications changes and advanced machines, on
the procurement management.

RATING :4
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INTEGRATION MANAGEMENT

Two different countries with two different project teams


made the integration a lot difficult.
The lack of communication led to poor integration
which further led to differences in opinions in projects
later stages.
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INTEGRATION MANAGEMENT

Teamwork was done by focus on fairness.


The teamwork concept was hit hard when both
the governments refused to guarantee the
project financially.

RATING :2
AREAS RATING
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SCOPE MANAGEMENT 2
TIME MANAGEMENT 3
COST MANAGEMENT 2

SUMMARY OF QUALITY
MANAGEMENT
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THE RATING OF HUMAN RESOURCE


MANAGEMENT
3

PROJECT COMMUNICATIONS
MANAGEMENT
2

MANAGEMENT RISK MANAGEMENT 3

AREAS PROCUREMENT 4
MANAGEMENT
INTEGRATION 2
MANAGEMENT
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STRENGTHS IN
DEVELOPMENT
PHASE
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Planning the technical equipment that would be


needed and understanding the complexity involved, by
the project team
This schedule planning during development phase
seemed to be adequate
Quality aspects of this project were handled very well
The project office did an adequate job during the
development phase
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MAJOR
OPPORTUNITIES
FOR
IMPROVEMENT
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COMMUNICATION:
Communication plays a vital role in our project, not only for the
project managers but also for the rest of the team members-
this is one of the factors driving a project to success or failure.

CONTROL GIVEN TO IGC:


There was much debate on the free reign given to IGC
because of the delays and cost increment by the decision of
IGC.
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TECHNICAL SPECIFICATION:

Scope, functional requirement and technical specification


need to be defined and validated at an early stages
although the data from past data from past projects was taken
into accounts and studies, the learning from those projects was
not implemented when planning of the project was being
done; because of need to do too much in too little time.
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RISK MANAGEMENT:

Risk management definitely needed looking into because it


was either over managed or under managed.
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KEY LESSONS
LEARNED IN
DEVELOPMENT
PHASE
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Scope creep should have been controlled by properly


defining the scope initially.
Although over managing of Risk does not lead to technical
problems but it leads to increase in costs which is undesirable
in already cost-stressed project.
Giving IGC powers to control scope without mandate of fund
allocation for scope creep was a mistake as banks were
reluctant to face situations of cost overruns. This also led to
disputes.
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For projects of such enormity, size and complexity,


Communication plays an integral part in making each and
every member associated with the project to understand
every aspect of his roles, authority, powers and
responsibility which was lacking in Chunnel project.
Project management team, in hindsight, could have done
a better job of detailing, planning and designing this
project.
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The financing aspect of the project was tricky as the


tunnel was a creation of political vision of two
governments. Putting financial stress solely on private
sector is always not a wise option. The government
support is not only financial but provides a momentum
to the project, eases stress on the private sector and
improves trust between stakeholders
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THANK YOU