Bus 519 Assignment several Final Daily news.
Project Management - BUS 519
" Governmental policies, Institutions, and Project Fund: The Dabhol Power Project”
Dabhol Electricity Project is actually a massive combined-cycle power plant on the western seacoast of India's Maharashtra point out in which Enron had the greater part shares. The Dabhol engine power was initiated in 1992 and took nine years to commence operation. The project was planned to create 2, 184 megawatts, which Enron assumed it was the largest gas-fired engine power in the world. National politics, institutions and finance resulted in a argument between the Maharashtra state government and the plant owners, and the job was closed in June, 2001. In this case we all will evaluate the role these factors played in the Dabhol Power Task.
Make a Risk Break down Structure examining the main categories of risks.
Risk breakdown composition is the hierarchically organized depiction of the discovered project hazards arranged by risk category (PMI PMBOK). The RBS will demonstrate extremely important to better understanding when a project needs to get special scrutiny, in other words, when risk may well happen. The RBS may help the job manager as well as the risk manager to better appreciate a continuing risks and concentrations of risks that can lead to problems that affect the position of the project. Following the idea of the Work breakdown Structures (WBS), the Risk Breakdown Structure provides a means for the project administrator and risk manager to structure the risks being dealt with or tracked.
The Risk Breakdown Structure of Dabhol project produced hierarchical structure underneath various titles to describe sources of risk, or perhaps risk types or types. Each of these set ups contains three to four hierarchical level to describe the kinds of risk encountered by the task in question. RBS Level | Level one particular | Level 2
Project risk| 1 . Development Environment Risk| 1 . 1development system1. two management methods1. 3 Work place | | 2 . Cost-effective risk | 2 . one particular Contractual terms & circumstances 2 . a couple of partnership & joint ventures2. 3 suppliers & vendors| | a few. Technology Risk| 3. you Scope Definition. 2 Specialized interfaces3. several Performance3. 5 Test and acceptance| | some. External Risk| 4. you Legislation4. a couple of Exchange Rates4. 3 Regulatory4. 4 Politics
From this RBS, we have designed a prioritized list of the best three (3) risks (potentially Most Critical) and most notable are economical risk, creation environment and technological risk Economical risk
Economic risk is the chance that macroeconomic circumstances like exchange rates, govt regulation, or perhaps political balance will have an effect on an investment, usually one in another country. Enron experienced monetary risk that was a serious threat to their investment. The selling price of the electrical power from Dabhol was far beyond what consumers inside the area would be to pay or perhaps the state can afford. This is the the majority of potentially important out of the three (3) dangers stated previously mentioned. For instance, In 2001, electricity from Dabhol was several times higher priced than that from domestic power suppliers. Phase one of the Dabhol plant began functions in May 99 and within just one month MSEB raised problems about the ability to spend a US$20 million monthly bill (custom publication 2011 pg 37). Furthermore, single customer was not able to pay for power: foreign collectors banks worried about MSEB's repayment problems. Advancement Environment Risk
This is the second potentially critical risks after economical risk. It is the risk that the advancement the job will cause break down to the surrounding natural environment through catastrophic environmental pollution. For instance, the local residential areas and other Indian interest groupings strongly compared with the Dabhol project through its advancement. The communities had a lot of the same problems outlined over regarding the lack of transparency inside the development procedure and the expense of the power. Additionally , the job was projected to displace 2, 1000 people and land was seized with no...
References: Customized book (2011) BUS 519: Project Risikomanagement Case packs 2011. Ny: John Wiley & Kids.
Hillson, Deb and Claire. P (2007) Practical Task Risk Management: The Atom Technique. Vienna VIRTUAL ASSISTANT management Principles.
PMI PMBOK, 3rd Edition Phase 11 Risikomanagement
The Enron Saga, http://www.rediff.com/money/enron1.htm