Using the lirans-Alaska Pipeline System as an example, this article has presented a model for "prudent and reasonable" project management consisting of:

• owner strategic planning and management

• use of a project management system

• use of contemporaneous project management theory and practice in the management of a project.

Using this model as a philosophical base, I concluded that the management of TAPS was not prudent and reasonable.

First, the Owners Construction Committee failed to provide adequate leadership in assuring that certain actions were taken on the project. They did not:

• develop a master strategic plan for TAPS to include appropriate organizational missions, objectives, goals, and strategies

• establish management of the project from a project management system perspective

• design and operate an integrated formal information, planning, and control system to manage the TAPS project and to provide the basis for determining if project schedules, budgets, and technical performance objectives were being effectively attained

• define the key organizational roles of the Owners Construction Committee, Alyeska, Bechtel, and the execution contractors regarding relative authority, tespontibility, and ad±ráñtabÉtyiñ

« ; resohfe^onflict bétwélí the ^ÉÉÜjM W|atii^6náduring the TAPS pfe-feci so that responsibility ánd ádcountability cdiíld be determined and monitoring of the project could be effectively carried out • use the existing body of knowledge on the nianagenientof large projects. ? Second, the involvement of Alyeska in the hierarchy of the TAPS organization created a redundant management layei which slowed decision-making and implementation as well as violated proven management principles.

During implementation of the TAPS project/ the Owners' Construction Committee failed to exercise adequate control of the project. Alyeska and the Ownérs' Construction Committeé became involved in the day-to-day management of the project by Bechtél and duplicated roles performed by that constructi9n management contractor. This created confusioñ, inefficiencies, and increased costs on the project. [f'* }

Thé United Stales nucleat power plant íríduátry hks baen plagued with management problems. Many plants have beeíi canceled, others are in various stages of construction. Rate proceedings are pending on many plants, and more are in the works. There will be rate challenges. Both public utility commissions and corporate managers require a general model for determining if projects have been prudently and reasonably managed. This article has proposed such a model. ^

2. Th&Wall Street Journal. 1985. Man 10.

h. "New Projects: Beware of False Economics." 1985. Harvard Business Review, Mar.-Apr., p. 95. \

5. "Nuclfear Follies." 1985. Forbes, Feb. Ü. ; ;

^ 6. The author of this paper, David I. Cleland, prepáred direct closing testimony ^ and exhibits, presented on behalf of the State of Alaska, Federal Regulatory Commis-'H^stífer. Washington, D.C., Oct. 19, 1984. He is indebted to Eugeife j. Comey, Tferry F. ^jypena&er, and Randall Lee Speck of the law offices of Rogovin, Huge & Lenzner, Wash-^'mjtelh, D.C., for the opportunity to participate as an expert witness in the Tians-Alaska Pipeline System Case.

7. Adapted from Cleláhd, tí.I. 1977. "Defining a Project Management System." Project Management Quarterly 8, no. 4, p. 39.

8. The TAPS organization consisted of a construction committee with several subcommittees. In actual practice the TAPS otgdnization was a multi-committee operation.

9. Anderson, J. Q. 1978. "Organizing for Largé Project Management—The Client's Needs." Proceedings. Project Management Institute, pp. II-Í3.2—II-13.9.

10. Archibald, R. D. 1984. Prepared Direct Rebuttal Testimony and Exhibits, Alaska Public Utilities Commission, Trans-Alaska Pipeline System. Washington, DC: Federal Energy Regulatory Commission, Jan. 10.

11. Moolin, Jr., F. P. The Organization and Management of Large Projects... Realities vs. Theory, Exhibit II-42-3, p. 75. j

12. J.M. Leaver (Bechtel) to F.P. Moolin (Alyieska), "Alyeska/Bechtel Labor Relations Relationship," memo, dated Dec. 4, 1974; R.E. Johnston (Alyeska) to E.H. Belter (Bechtel), memo, "Bechtel Quality Control Nonconformances, Section 1, Alignment Sheet #16," Jan. 28, 1975.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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