Case Study-3

Pittsburgh Airport: Midfield Terminal Energy Facility

(Area of discussion- Cost & Quality)

Team Members:

Case Study – 5

Outline of projectBackground

The Pittsburgh International Airport is owned and operated by the Allegheny County Department of Aviation.

The new Midfield Terminal includes, Landside/central services bldg - 500,000 sft Airside building - 1,200,000 sft Gate capacity - 75 aircraft Provisions to expand - 100 gate terminal.

Pittsburg is the second busiest passenger airport in Pennsylvania and 47th-busiest in the United States, serving 8,041,357 passengers in 2012.

Outline of projectBackground

The airport has the longest runways of a commercial airport in Pennsylvania at 11,500 feet (3,500 m).

Until 2004 US Airways largest hub was at PIT.

PIT occupies more than 12,900 acres (52 km2), making it the fourth-largest airport by land area owned in the

nation.

The Midfield Terminal Energy Facility was designed to meet the requirement as: Ultimate cooling load of 9,100 tons Ultimate heating load of 113 x 106 Btuh

Outline of projectOut Line of Project

The energy facility also provides electric power to the Midfield Terminal from the new substation located between the energy facility and the field-erected concrete cooling tower.

Completion – 6 weeks ahead of schedule and within budgeted cost.

Outline of project ???

Cost Quality

Outline of projectScope Management

Well defined scope and explicitly required quality removes building up of cost contingencies for unknowns

by the executers in turn reduction of in Cost.

Outline of projectScope Management

Scope with freezed quality requirement with no expected deviations

Requirements with proper specification with comparative studies of a alternatives

No Cost cutting on Engineering

Outline of projectTime Management

Realistic Cost

Scope with Complete details

Project Completion Time

Outline of projectTime Management

Realistic Project Schedule

All contingencies properly factored in to the Schedule.

Getting Realistic Input By allowing more cost on

engineering.

Outline of projectTime Management

Performance Review

Variance Analysis

Resource leveling

What if Analysis

After negotiating the Realistic Engineering and Construction Budget, The Job was to focus on Schedule regress monitoring of

schedule with following control tools

Outline of projectTime Management

The Start up testing was delayed due to non controllable issues

Contingencies were taken for preparing Realistic Schedule

Project was completed Six Weeks of Ahead of Schedule

Outline of projectCost Management

Key Inputs available General Tools and Techniques Outputs/advantagesCost Estimation and BudgetingVery clear project scope statement

Detailed conceptual engineering Analysis

Detailed Drawings and specification with high degree of accuracy.Complete project schedule

Project Management software's

Resource (Man, material, machine) plan

Over Head ratio and Staff performance analysis

Tax planning

Realistic budget cost without any contingencies

Cost Management Plan

Cost ControlCost Base line. Realistic budgeted cost

Detailed project schedule

Project Management Plan

Periodical Performance review

Productivity Monitoring

Variance analysis

Project completed within the budget

Due to owners commitment, realistic scheduling , optimum equipment selection, detailed bid documents and specs, project was completed under budget.

Outline of projectQuality ManagementKey Inputs available General Tools and Techniques Outputs/advantages

Quality Planning Detailed Scope statement prepared

Detailed Engineering details/specs

Very clear project objective

Budget analysis

Standards of Measurement of performance Process Flow charts

Quality Management plan to implement the quality policy/ Objective.

Quality Assurance /controlReliable equipment systems are selected.

Proper technical persons are deployed

Detailed Activity schedule

Quality Audits

Third Party tests

Training for staffs and workmen

Inspection of material and products

Audit Findings

Low Maintenance in operation.

Long term availability of energy

Environmentally safe.

Total Job completed with required quality.

Outline of projectHuman Resource Management

Inputs Tools and Techniques Outputs

1. Develop Human Resource Plan

Organization Chart and Position Descriptions

Since project inception stage it was decided to staffing the project with well qualified and trained personnel.

2. Acquire Project TeamPre-assignment, negotiation, acquisition, virtual teams

Well trained and skilled persons were engaged.

3. Develop Project TeamInterpersonal skills, training, team-building activities, recognition and rewards

Team work was well-functioned at every stage.

4. Manage Project TeamObservation and conversation, performance appraisals, conflict management

Every team member was committed to their performance.

Outline of projectCommunication Management

Inputs Tools and Techniques Outputs

1.Identify Stake Holder Stake holder analysis, Expert judgment.

The Owner, Allegheny County and SE Technology were well synchronized.

2. Plan Communications

Communication requirement analysis, communication technology, communication models.

Project objectives were established that they will built a facility of world class, on schedule and within the budgeted cost.

Outline of projectCommunication Management

Inputs Tools and Techniques Outputs

3. Distribute Informations Information distribution toolsProject mile stones were scheduled and monitored regularly.

4. Manage Stakeholder’s expectations and performance reporting

Communication methods, management skills, variance analysis, forecasting methods and reporting systems.

SE Technology came with idea that HTW system will be better than the conventional HPS heating system and it was accepted considering the overall impact of this total project schedule and cost.

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Management of Engineering

The facility has been design to serve 365 days per year and 24 hours a day.

Though High Pressure Steam System was considered at bidding stage, during conceptual design it was changed to High Temperature Water System which provided many advantages.

HTW System is a less complex system than steam heating.

Initially there was a perception that HTW System is dangerous. A practical test was done which proved that HTW is safe comparing with Steam system.

HTW System is more energy efficient as it doesn’t have parasitic steam and heat losses.

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Management of Engineering

O&M costs are low as there is no steam trap maintenance, less make up water, low water treatment chemical requirements.

System start-up is simple as the system involve only liquid phase of water.

Smaller Piping sizes helped to reduce project costs. Pipe installation was simple as there was no requirement to maintain the slope.

Heat storage also become possible which helped to handle sudden increase in loads.

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Integration Management

Project integration management - managing the interdependencies among the various processes involved.

Key difficulties in the execution of projects have often been associated with project integration management.

Despite the fact that many different organizations were involved, the project must come together as per the intended purpose.

Outline of projectIntegration Management

Outline of projectIntegration Management

The processes were planned to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, and cost control.

With proper scheduling and planning, as well as with proper control of the project, quality in the process is assured.

By keeping all the stakeholders informed and involving them in the process whenever appropriate, the owners and the stakeholders grow to feel for the project and ensured their support and cooperation.

All stakeholders were focused on the common interests in the process rather than the opposing positions of the parties.

Cost v/s Quality

• The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service.

Success Factors

Strategic Project Management Conceptual Engineering Proper Design Construction Management Quality in the design and construction was the

focus of the project. Emphasis on Start up activities Importance of Project Cost Realistic Project Schedule The right people are put on the job and the job is

managed properly.

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Key findings

Owner’s commitment to realistic scheduling, budgeting for comprehensive engineering.

Detailed analysis to finalize Energy system Better Reliability Improved safety Greater System efficiency Lower O&M Cost System Start Up Simplification Closed System Smaller Piping Pipe Installation Simplification Close Temperature

Less Over all Life cycle cost of Energy system Detailed bid document helps in competitive bids &

minimize construction cost Early completion of project ( 6 weeks ahead schedule)

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Key Learnings & Conclusion

Scope management process was properly carried out and the identified activities were clearly stated.

Successful projects have owner’s commitment to realistic scheduling and budgeting.

If realistic budget & quality is established the project is properly controlled by controlling the schedule & not the budget.

If the schedule is realistic w.r.t quality & budget minimum contingencies are required.

Negotiations by the owner for a realistic budget that ensures required quality & sufficient money.

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Key Learnings & Conclusion

Comprehensive preliminary engineering studies by the owner results in detailed & competitive bidding which minimizes contingencies & enhances savings on long term operating costs.

Owners openness to the adaptability of new technology. (HTW opted over HPS )

Success ingredients of project– Comprehensive and Conceptual Design.– Focus on quality, Life cycle cost & Schedule.– Strategic Management to be an integral part of Project

Management.

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Thank You..!!

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