LNG cloud conflict
B: Ensure the overrall project is back on schedule to make up time for earlier project slippages
D: Complete the footing ahead of schedule at an extra cost of $1,500,000.00 to recover from slippages on other project tasks
A: Complete the project in good time to commence the production and delivery of liquidfied natural gas
| A-C: | Assumption(s) | Injection(s) |
| Profit maximization and cost efficiency is important to any business and extra cost that will not impact on the critical path will not add value to the project | The primary focus of any business is to be up and running. that is also the objective in the construction of this LNG facility. Profit will not be earned if the facility is not built and operational. It isn't cost effective to save money in construction of the facility only to incur penalties for the inability to deliver LNG because the facility finished behind schedule. |
C: Ensure cost is controlled in the execution of the project
D': Avoid further expenditure of $1,500,000 by completing the footing by November 30 according to the earlier scheduled date
In order to Complete the project in good time to commence the production and delivery of liquidfied natural gas I must Ensure the overrall project is back on schedule to make up time for earlier project slippages and in order to Ensure the overrall project is back on schedule to make up time for earlier project slippages I must Complete the footing ahead of schedule at an extra cost of $1,500,000.00 to recover from slippages on other project tasks. But, in order to Complete the project in good time to commence the production and delivery of liquidfied natural gas I must also Ensure cost is controlled in the execution of the project and in order to Ensure cost is controlled in the execution of the project I must Avoid further expenditure of $1,500,000 by completing the footing by November 30 according to the earlier scheduled date. I can't both Complete the footing ahead of schedule at an extra cost of $1,500,000.00 to recover from slippages on other project tasks and Avoid further expenditure of $1,500,000 by completing the footing by November 30 according to the earlier scheduled date.
| Relation | Assumption(s) | Injection(s) |
| D-D' | The emphasis of the earned value system (used in D) to measuring project progress success is different from using the critical path method (used in D') to measure progress. EV will not see the benefit of spending $1,500,000 just to bring completion of the footing forward while critical path can justify the additional expenditure if it helps the overall project finish on schedule | Any of the systems used in isolation would be insufficient. Focusing on just the critical path may allow the project to have cost overruns while focusing on earned value alone may cause the project to fall behind schedule. They should be used together to achieve better results. |
| B-D | 1)Completing the footing ahead of schedule can help us bring forward the completion of other tasks that rely on the footing thereby finishing the entire project on time 2)It could also help to create a project buffer for project tasks as we can start all subsequent tasks early | 1)There are other possible ways of completing the footing on the new desired date of November 1 without spending $1,500,000.00 2)The completion of the footing might not help the project as we are only assuming the footing is on the critical path of the project which isn't known |
| C-D' | It isn't clear how finishing the footing task ahead of schedule will improve the critical path of the project | If the footing happens to be on the critical path and the $1,500,000.00 is not expended causing project completion to be delayed, potential revenue that will be lost from not finishing the project on time will make $1,500,000 pale into insignificance |
| A-B | If we do not make up for earlier slippages, project will not be completed and production of gas cannot begin and we may face penalties for failed LNG delivery contracts | The Gas Turbine team has so far failed to identify the cause of earlier slippages. This means the additional expenditure of $1,500,000.00 has not been justified by the GT team |
| A-C | Profit maximization and cost efficiency is important to any business and extra cost that will not impact on the critical path will not add value to the project | The primary focus of any business is to be up and running. that is also the objective in the construction of this LNG facility. Profit will not be earned if the facility is not built and operational. It isn't cost effective to save money in construction of the facility only to incur penalties for the inability to deliver LNG because the facility finished behind schedule. |