Aps1001 Project Management Essay Example
Aps1001 Project Management Essay Example

Aps1001 Project Management Essay Example

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  • Published: April 6, 2017
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The Rocky Flats Contamination Cleanup Project, part of the APS 1001H Fall 2011 program at the University of Toronto, focused on various aspects of project management. Its goal was to share the knowledge acquired from the cleanup efforts at the Rocky Flats site. This included understanding time, cost, and performance management; planning and managing risks; ensuring quality control; effectively managing information; facilitating communication; handling human resources; and complying with regulations. This document provides a detailed overview of these insights and concludes with important findings. The bibliography offers additional references for further exploration.

In 2005, Kaiser-Hill LLC (K-H) completed the Rocky Flats Cleanup Project. This report gives a summary of the project. The Rocky Flats site was a government facility that produced nuclear weapons and materials for over 37 years. It experienced accidents which led to the release of r

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adioactive material and permanent contamination of buildings, grounds, and ponds. These contamination problems were a significant factor in the facility's closure in 1989.

The cleanup project received a significant amount of money for its execution. K-H was chosen as the contractor in charge of carrying out the project and they exceeded expectations in terms of both time and cost reduction. This project was honored with the "PMI 2006 Project-of-The-Year-Award" due to its success in developing a highly detailed and well-planned approach, which was implemented with great caution throughout different stages of the project (Hunsberger, 2007). The lessons learned from this project should be applied to future cleanup projects as they provide valuable insights that can be easily adapted to various industries.

The lessons are divided into seven categories: "Time, Cost and Performance Management" addresses the project's triple objectives; "Risk

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Management" explains K-H's experiences in creating a risk management plan to avoid and mitigate risks, as well as strategies to counteract them; "Quality Management" pertains to quality and leads into the next phase, "Knowledge Management," where lessons emphasize applying lessons learned from previous projects and phases for success.

The last three sections cover the lessons on "Communication Management," "Human Resource Management," and "Regulation Management." Introduction and Background on the Rocky Flats Site Cleanup Figure 1, Rocky Plant Before Cleanup The Rocky Flats plant was a nuclear weapon manufacturing facility from 1952 to 1989, located near Denver, Colorado. The facility heavily polluted the surrounding areas with dangerous and toxic materials.

In the late 1950s and 1960s, leaks were discovered in several storage facilities containing plutonium, a highly flammable and radioactive chemical element used in nuclear weapons. As a result of these leaks, nearby areas became contaminated with plutonium, and even inhaling a small amount of it could cause lung cancer. In 1969, there was a major explosion at the same site, which later gained recognition as the "most costly industrial accident" in U.S. history (Hobbs, Farrel, 2010).

In 1989, the plant underwent a thorough investigation by representatives from the FBI, the Justice Department, and the Environmental Protection Agency (EPA) due to environmental violations. As a result of multiple legal infractions, the plant was closed in the same year and included on the U.S. EPA's "Superfund list" for cleanup. The responsibility for managing the cleanup process fell upon Kaiser-Hill LLC., which began its work in 1995 and completed it after ten years in 2005 (Schubert, Tuor, 2003).

The team initiated their project by carefully assessing the immediate

and future objectives. They aimed to cut expenses and accomplish the project promptly. As they worked on the short-term strategy, they concurrently formulated the long-term strategy to ensure efficient advancement. They made progress by demolishing impacted structures and removing contamination from surrounding areas.

The initial agreement, which was concluded in 1995 at a cost of around $3 billion, led to their selection for the second phase. This phase commenced in 2000 and had a project deadline set for the end of 2006, with a budget totaling nearly $4 billion. Initially, the U.S. Department of Energy (DOE) projected that completing the project would take approximately 70 years and necessitate $36 billion in funds. Nevertheless, the cleanup was ultimately completed at a final cost estimated to be approximately $8 billion.

The project, which won the PMI's Project of the Year award in 2006, also earned the "Project Merit Award from the Environmental Business Journal in 2005" (Hunsberger, 2007). It accomplished remarkable success by completing nearly half a billion under budget and more than a year ahead of schedule in October 2005. This project offered valuable lessons for contamination cleanup projects.

The project has been successful due to effective planning and scheduling, clear project scope, accurate budget planning, and other factors. In this report, we will examine thirteen lessons learned from the closure project (specifically the second phase from 2000 to 2005) with a focus on project management. These lessons primarily concern time, cost, and performance management. The first lesson emphasizes the importance of prioritizing safety over all else, even if it causes project delays. This approach strengthens credibility and trust.

Ensuring safety is crucial for employees in projects, especially in terms

of job security. If cost and time become the top priorities, employees may overlook safety practices, posing risks to their own employment. The management team regarded safety as their foremost mission, requiring every employee to prioritize it. According to Howard Gilpin, Kaiser-Hill's vice president of safety, engineering, and quality programs, they would occasionally implement a "safety pause" lasting a day or more. This practice aimed to refocus everyone on the job's safety aspects. The company also welcomed external inputs to point out any unsafe practices. This approach motivated employees, as they realized that the company prioritized their well-being over the work itself. Anyone involved in the project had the authority to halt work if safety was compromised (Hunsberger, 2007).

The Department of Energy (DOE) agency's managers have consistently emphasized safety in contamination cleanup projects, as demonstrated by Kaiser-Hill's outstanding work. This sets an example for future projects. It is also crucial to involve interested groups and stakeholders to establish credibility, maintain positive relationships, enhance performance, expedite project timelines, and effectively handle issues. At Kaiser-Hill, managers consistently encouraged public and stakeholder participation in their projects.

The concept of "Nothing to Hide" was put into practice by the company, with a commitment to transparent communication with all interested parties. Ms. Jan Walstrom, deputy project manager, explains that important commitments were made to various stakeholders, including clients, regulators, affected communities, politicians, and other interested parties. To demonstrate these commitments, Kaiser-Hill managers have consistently shared project details and changes with stakeholders, including financial information, critical path updates, and cost details. Additionally, they have provided the Department of Energy with real-time access to data (Hunsberger, 2007).

By involving the groups in case of

failure or problems, more support can be obtained, which would enhance quality and speed up project completion. The senior managers emphasized the importance of mandatory participation and continuous follow-up in order to establish credibility, confidence, and responsibility among stakeholders. Additionally, motivation strategies such as incentives and benefits should be employed to encourage personnel and enhance performance.

Maximizing productivity can be achieved by offering special benefits or incentives to the cleanup contractor. Recognizing that the project's anticipated longer closing time could potentially lead employees to work on this project indefinitely, the project manager and management group aimed to prevent such a situation. Their solution was to find methods of motivating the contractor to increase their productivity.

The U. S. Government Accountability Office (GAO) reported that the DOE provided incentives worth up to $100 million to assist the project. These incentives aimed at reducing project cost and expediting completion. This funding boost significantly increased the contractor's potential earnings from $460 million to $560 million. Furthermore, the contractor introduced a safety incentive program for its employees, featuring spot cash awards.

The U.S. Government Accountability Office (GAO) disclosed in 2006 that the contractor distributed approximately $100 million of its earnings as worker rewards, which accounted for about 20% of its incentive fee. Alongside this, the Department of Energy (DOE) added an extra $30 million for incentive pay. This successful approach encouraged the team to complete the project ahead of schedule by fourteen months and under budget by nearly $500 million. It is crucial to acknowledge that motivation strategies can differ based on the specific requirements of each project, requiring suitable alignment of incentives.

Risk Management & Planning “A pessimist sees the difficulty

in every opportunity; an optimist sees the opportunity in every difficulty. ” Sir Winston Churchill, prime minister of the United Kingdom. The Rocky Flats Closure project posed financial, safety, and social and environmental risks. However, through creative planning, Kaiser-Hill was able to identify opportunities and set objectives with both quantitative and qualitative details. Each activity involved estimating risks and uncertainties based on technology, scope, and inter-site dependency (Maloney, 2000). To successfully handle these challenges, a clear set of well-defined procedures and a risk management plan were developed to mitigate risks throughout different project phases while avoiding negative impacts on the project. The main challenge in this project was effectively managing each individual task due to their high level of interdependency. Any failure in one task could lead to project failure. Therefore, scheduling and maintaining quality of work were crucially important and required easy monitoring and control.

Reducing uncertainty and improving the risk aspect of the project is crucial. Planning must be detailed and leave no room for uncertainty. The planning phase takes a long time but has a positive impact on the work force, as they understand that all tasks must be completed within specific timeframes. This ensures that other activities are not delayed. The company invests significant time and money in developing a well-designed risk management plan.

One effective method for minimizing risk is to collaborate with industry leaders who are able to anticipate various potential outcomes. "We assembled a group of individuals who were highly knowledgeable in their respective fields to explore the possibility of expediting the cleanup of Rocky Flats by several decades and at a significantly reduced cost," stated Mr. Schubert, PMP,

vice president of strategic planning. While thorough planning can mitigate uncertainties, it is essential to have a clearly outlined risk management plan in order to address unexpected factors that will inevitably arise during these projects.

According to William Harroun, PMP, director of planning and integration, many unanswered questions persisted even after signing the contract with DOE. These questions included inquiries about what lay beneath the dirt and buildings, how regulators would respond, and what constituted a "clean" state. In order to address these unknowns, it was crucial to develop adaptable procedures, analyze variations in cost and schedule, identify responsible parties, understand the root causes of problems, and apply mitigation strategies in a timely manner (Hunsberger, 2007). These procedures needed to be adjustable to accommodate unforeseen changes, address different problem domains, and be detailed yet applicable across all areas. Additionally, it was important to have a clear vision and recognize the need for cultural and mindset shifts within the workforce. Transforming the company's mindset from focusing on productivity to closure required a new and intense vision to motivate employees and break free from old ways of thinking.

Kaiser-Hill recognized the need for a new vision to guide the employees' future work. Many of these employees were previously part of the Rocky Flats Project and were accustomed to a productive, rather than creative, approach to closing and cleaning up the site. The introduction of the "Accelerator Closure Vision" classified this new vision as an innovative idea within the project. However, being the first complex cleanup project operating under an accelerated schedule also increased the project's level of risk.

In addition, the "Accelerator Closure Vision" helped Kaiser-Hill to achieve

and speed up the closure process by sharing risks and rewards, ensuring accountability, consolidating materials, and creating a stable environment with the involvement of stakeholders from the beginning to the end (Duran, 2006). This approach fully met the expectations of the Department of Energy (DOE) as it aligned with their objectives, resulting in enthusiastic support from the DOE. The next step after establishing a clear vision is to define specific objectives and goals for the project that are both attainable and measurable.

Objectives must be aligned with the DOE’s goals. In this case, the DOE did not anticipate completing the project soon. However, Kaiser-Hill exceeded the DOE’s expectations by devising a super plan to achieve their long-term objectives in just a decade. The primary goals were to significantly reduce costs and completion time. Although Kaiser-Hill spent a couple of years developing the accelerated closure plan, it was worthwhile as the project would be finished much earlier than anticipated by the DOE.

Furthermore, the decision making process was influenced towards the new vision’s objectives such as the budget decision, project performance expectations, approaches to regulatory compliance and application of human resources (Duran, 2006). Quality management has a direct relationship with overall organizational quality management in terms of costs and processes. Air quality and safety were the major processes that Kaiser-Hill was responsible for during the cleanup project. The true enhancement in quality should have been planned and designed by quality manager before the project has been executed. 7.

The use of technology plays a crucial role in improving efficiency. According to Tuor and Schubert (2003), deploying project enhancing technologies and innovations has been instrumental in achieving strong cost and

schedule performance. These technologies have allowed Kaiser-Hill to question and improve complex processes in planning, management, and operation, resulting in better cost, schedule, and safety outcomes. Some examples of the technologies used by Kaiser-Hill include Decontamination solutions, Spray-on Shipping Container, and Hydrolase.

Furthermore, Rocky Flats previously utilized traditional management tools such as Gant Charts and Cost Estimate Profiles to display cost and schedule. However, these tools could yield inaccurate results due to insufficient information regarding cleaning and closing processes (Burdge and Nolter, 1999). Conversely, the programmatic risk implemented by Kaiser-Hill enabled the classification of cost, schedule variances, and risks during the planning phase. This approach not only enhanced project operations but also successfully prevented unexpected and uncontrolled cost and schedule growth (Maloney, 2000). Additionally, programmatic risk assessment served as a management tool for Kaiser-Hill to distinguish between risks associated with cost, schedule, environmental impacts, public safety, and worker well-being within the closure project plan.

In terms of Knowledge Management, managers can facilitate knowledge creation, sharing, and utilization within the organization's framework. This enables the project team to leverage acquired knowledge to expedite project timelines and reduce costs by swiftly responding to customer needs and requests. Furthermore, embracing new technologies and innovations is strongly encouraged to foster creativity and drive company growth.Despite fear and resistance towards change, the rocky flats contractor embraced new technologies and utilized them to foster future innovations. The company's encouragement of an innovative environment allowed employees to demonstrate their creativity. According to Mr. Schubert, numerous innovations were developed within the organization, effectively addressing various problems and resulting in significant cost savings.

Regarding the use of glove box equipment, employees found it to be inappropriate and

decided to improve it. According to Mr. Hansberger, the glove box is a sealed container that enables workers to safely manipulate objects outside of hazardous areas, but changing gloves was a difficult task. To address this issue, they modified the tool by creating a new version using an old pair of pliers with a welded metal rod. This innovative change significantly reduced costs, which was an unexpected realization.

Recognizing the value of this innovation as a motivational tool for encouraging employee creativity, Kaiser Hill managers asserted that this innovative atmosphere led to substantial cost savings. In addition, they emphasized the importance of applying lessons learned and efficiencies gained from prior experience. The experience gained from the Department of Energy's (DOE) previous work at Rocky Flats was a crucial factor in saving time and reducing costs in the cleanup and closure of the project. Both DOE and Kaiser Hill acknowledged the significance of utilizing learning curves and efficiencies achieved through their past projects.

The involvement of experienced corporate and national experts enhanced the project's adaptability to sudden changes during its closure. As Rocky Flats transitioned from a productive facility to a closure phase, the removal and stabilization of hazardous materials became a priority. One of the initial tasks was draining plutonium-bearing liquids from tanks and piping, which bore similarities to activities carried out by hourly workers during weapons production (Duran, 2006). The knowledge and experience gained from these previous activities proved invaluable in efficiently executing the cleanup project.

An essential aspect of the closure process was ensuring that communication and documentation were managed in an open and accessible manner. Kaiser-Hill, the company leading the project, provided monthly reports

detailing project costs, deviations from the schedule, and explanations for such deviations. These reports included comparisons of trends and performance to the contract schedule and working plan.

During the month, Kaiser-Hill identified accomplishments and verified the validity or status of the critical path. They also updated the status of demolition milestones on a monthly basis (Duran, 2006). Whenever external support was required for a specific activity in the "Closure Project," proper documentation was done, and it was discussed and submitted for approval. This ensured that Kaiser-Hill involved the DOE and other influential individuals to expedite the project's progress. It is worth mentioning that Kaiser-Hill also produced a comprehensive quarterly report that analyzed key accomplishments, risks, near-term objectives, performance indices, issues, and recovery items. The report also included other important metrics like external project issues, critical path performance, DOE regulatory issues, estimated cost at completion, funding status, and analysis of critical staffing skills. In order to reduce safety and procedures training time, Kaiser-Hill recruited staff who had previously worked in the Rocky Flats production facilities as they were familiar with most of the initial tasks' procedures (Human Resources Management 11).

At the start of the cleanup efforts, the primary goals were to remove and stabilize dangerous substances. This required a range of meticulously regulated tasks, such as working in glove boxes and draining plutonium-containing liquids from process tanks and piping (Duran, 2006). The contractor in charge of the Rocky Flats cleanup recognized that these activities closely resembled those carried out by the workers involved in weapons production. As a result, they assigned these initial tasks to employees who were already knowledgeable about safety protocols and familiar with the

risks associated with the work.

By hiring experienced staff, K-H was able to significantly decrease the time and expense involved in the initial cleanup and stabilization operations. The company implemented subcontracting as a way to manage resources, increase flexibility, and reduce costs. K-H found ways to eliminate or minimize unnecessary tasks, specialties, and the associated labor costs. They achieved this by aligning the work scope into execution projects, discerning closure-critical resources from those that were optional. This ongoing elimination of tasks involved reallocating or eliminating resources as activities were completed. Additionally, K-H aimed to reduce subcontractor's overhead rates. They acknowledged that many subcontractor employees had a stronger connection to the Rocky Flats Site than to a specific subcontractor, so in some cases, contracts were terminated, resulting in staff finding employment with subcontractors that remained.

Reducing overall labor costs and improving worker efficiency can result in significant cost savings. It is crucial to carefully monitor subcontractor hiring practices and staff skills to minimize overhead fees. Another effective cost-cutting strategy is reducing infrastructure expenses, whether it is related to physical facilities like heating and electricity for offices or support staff needed to maintain site security. For example, moving support staff to offsite offices not only decreases central heating costs but also facilitates the decommissioning of unnecessary facilities.

Additional measures that were taken involved the delegation of certain tasks such as laboratory services and the off-site handling of mixed wastes. The significance of establishing regulatory milestones at an early stage was emphasized in Regulation Management 13. The Department of Energy (DOE) was instructed to create a comprehensive "10 Year Plan" outlining the remediation efforts for the Rocky Flats site. It was

estimated that concluding operations at Rocky Flats by 2015 would incur a cost of $7.5 billion. The accelerated closure of Rocky Flats would have been significantly more arduous, if not impossible, without proper guidance and support (Duran, 2006).

The signing of the Rocky Flats Cleanup Agreement (RFCA) marked an important regulatory milestone. This agreement established the regulatory structure for expediting the closure of the Site and establishing agreed-upon project milestones. The development of the regulatory framework for the Rocky Flats cleanup project played a crucial role in defining the proper plan and schedule for activities. The evolution of this framework, culminating in the successful negotiation and implementation of the RFCA, was essential in achieving accelerated Site closure.

The project baseline ensured that the regulators, the contractor, and the DOE were all working towards the same milestones. The Rocky Flats cleanup project was initiated by the DOE with estimated costs of $36 billion and a duration of over 70 years. Through successful project management, regulation and contract changes, as well as active stakeholder involvement, the project was completed early in approximately 10 years and with a significant cost reduction to around $8 billion. Safety was a constant consideration in the Rocky Flats project, contributing to improved performance as workers knew their exposure to risk was controlled, monitored, and they had a say in it. Kaiser Hill implemented an "open doors" policy that garnered support from influential stakeholders. Important changes in DOE's policy allowed for the introduction of early completion incentives, which played a crucial role in reducing the project's timeline. Planning was an essential aspect of the Rocky Flats cleanup project, although some important definitions such as "How

clean is clean enough" remained unclear even after the initial contract was signed.

Undoubtedly, the hiring of former workers from the Rocky Flats production facilities played a vital role in guaranteeing safety and providing necessary training for the cleanup operations. Equally significant was the promotion of an innovative work environment, which greatly contributed to problem-solving and cost savings. The successful practices in project management and the valuable lessons learned from the Rocky Flats cleanup project should serve as a crucial reference for future cleanup efforts.

Bibliography 1. Hobbs, Farrel (2010). An Insider's View of Rocky Flats: Urban Myths Debunked.

CreateSpace ISBN 978-1460911471

Lessons Learned at the Rocky Flats Closure Project and Their Applicability to the Emerging Cleanup of the United Kingdom's Civil Nuclear Liabilities by Nany Tuor and Allen Schubert (Kaiser-Hill Company, LLC)

ASME Conf. Proc. 2003, 743 (2003), DOI:10.1115/ICEM2003-4784

Accessed November 13th, 2011

PMI 2006 Project of The Year, Finding Closure, Kelley Hunsberger, PM Network, 30-37, January 2007, www.mi.org

The United States Government Accountability Office (GAO), Report to Congressional Requesters, Nuclear Cleanup of Rocky Flats: Department of Energy Can Use Lessons Learned to Improve Oversight of Other Site’s Cleanup Activities, GAO-06-352, July 2006

Accessed November 11th, 2011

Status Update: Closing Rocky Flats By 2006 by Nancy R. Tuor, Executive Vice President and Chief Operating Officer, and Allen L. Schubert, Director Strategic Planning, Kaiser-Hill Company LLC, 23-27, February 2003

Accessed November

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