LNG project assignment 2 - conflict on decision to bring the installation of the gas turbine footings forward and incur $1500000.00 of unplanned expenses

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The project was approved to proceed and a year after that decision a project change request has been logged in the Management of Change system to request additional funds to pay the overtime ($1.5m) to complete the footings for the gas turbines (GT’s). The gas turbines are a vital component of the LNG facility as they provide the entire energy requirements for the LNG liquification site. The original schedule had the footings completed by the 30th November but the proposed change is now targeting the 1st of November. This timing is feasible and the GT installation team are able to mobilise earlier. However, it is costly.

D: Use the Critical Path Method to manage the project
D': Stick to the original project agreement and manage the project according to the Earned Value method
B: Regain lost time from previous task slippages
C: Complete the project on schedule and to budget
A: Finish the project to start gas production
Click on the icons on the arrows to see assumptions and injections
In order to Finish the project to start gas production I must Regain lost time from previous task slippages and in order to Regain lost time from previous task slippages I must Use the Critical Path Method to manage the project. But, in order to Finish the project to start gas production I must also Complete the project on schedule and to budget and in order to Complete the project on schedule and to budget I must Stick to the original project agreement and manage the project according to the Earned Value method. I can't both Use the Critical Path Method to manage the project and Stick to the original project agreement and manage the project according to the Earned Value method.
RelationAssumption(s)Injection(s)
D-D'Bringing the gas turbine footings task forward will only benefit the project if this helps progress the critical path schedule.
The task associated with the gas turbine footings is not on the original project critical path
B-Dthis will make up lost project time and clear the schedule to complete other behind schedule tasks
The gas turbines can provide the entire energy requirements for the entire LNG liquification site.
It is possible to crash other project tasks to regain lost time from previous task slippages.
There gas turbines cannot begin production until other project tasks are completed.
C-D'Accepting changes to the original task schedule will incur unplanned expenses affecting the project budget negativelyManage site contractors to focus on prioritising critical path tasks.
A-BThe project is behind schedule,further delays to the project will increase overall project costs and jepordise the planned production start date.Crashing other project tasks to recover from previous lost time will not cost $1,500,000.00
A-CThe project is behind schedule as contractors have little regard for the critical path schedule, hence the project is incurring unnecessary expenses associated with non critical tasks being completed by contractorsBringing the Gas Turbine footings forward is a simple solution to the challenges of meeting the production dead-line and minimising overall project costs.