samdo case study answers

subject related to this case study is project risk and management.

The textbook related to this : Ward, Chapman:How to Manage Project Opportunity and Risk: Why Uncertainty Management can be a Much Better Approach than Risk Management, 3rd Edition ISBN: 978-1-119-96665-4 September 2011 Wiley

10:12 Done 3 of 4 Ontario Hydro will provide grid connections, and will not allow anyone else to do so. Low pressure steam connections, emergency power connections and water supply piping can be contracted for by Samdo using local firms. Water for the CCGT set will be taken from a river which flows through the municipality Extraction of water requires provincial as well as municipal approval. Municipal planning approval is required for the plant, water pipeline, low pressure steam lines and power lines. The latter two also require provincial approvals with respect to safety issues. Sam proposes the purchase of phase 2 (state of the art tested design) CCGT plant to be installed and running as soon as possible. He has made you responsible for preparing and implementing the plans. If you succeed, in Sam's view, you will become a vice-president in charge of new plant developments for Samdo. Sam has no time for failures. Case study tasks 1. Identify key activities, and/or key components using other structures, and/or key objectives - think carefully about the structure used as a starting position; key sources of uncertainty: key responses to these sources of uncertainty: key secondary sources and responses 2. Structure the sources of uncertainty and responses and illustrate this structure using a source-response diagram. 3. Identify what you perceive to be some key decisions Sam should take. 4. Identify what you perceive to be aspects to be quantified, the form of required computations, and outputs to provide appropriate guidance to Sam. Do not attempt quantification. 10:12 Done 3 of 4 Sam has identified what he believes to be his first big opportunity. It would involve: Producing base load clectric power for sale to Ontario Hydro in a north Ontario town using a CCGT (combined cycle gas turbine) set (2 or 3 natural gas powered turbines driving generators with waste heat producing high pressure steam to drive a steam turbine generator) Providing emergency back-up power in the event of Ontario Hydro grid failure to a hospital and a group of information system dependent organisations in the municipality, on a contract which would provide for heavy damages if Samdo fails to provide emergency power when needed. 3. Providing low pressure steam for manufacturing organisations in the immediate vicinity of the CCGT set. The municipality has a natural gas network and supply, but the supply pipeline is not large enough to cope with the proposed CCGT. The gas supply company will provide a new main and gas at a price per unit fixed for a substantial period of time, but require a "take-or-pay" contract: if Samdo contract to take gas from any given date, they will in effect have to pay for the contracted gas flow whether they use it or not. A range of established suppliers of CCGT plants can provide the required equipment. They each tend to be at a different point in a cycle, which can be approximated by three phases as follows. 1. New untested design. Very high fuel efficiency. Initial reliability is uncertain. Likely to be very reliable in the long run. Claimed very low maintenance costs. Low capital cost to encourage purchase. 2. State of the art tested design. High fuel efficiency, high reliability and low maintenance costs. Very high capital cost. 3. Tried and true design. Low fuel efficiency, moderate reliability and maintenance costs. Moderate capital cost. CCGT plant suppliers will install plant on a fixed price turnkey 10:12 Done 3 of 4 Sam has identified what he believes to be his first big opportunity. It would involve: Producing base load clectric power for sale to Ontario Hydro in a north Ontario town using a CCGT (combined cycle gas turbine) set (2 or 3 natural gas powered turbines driving generators with waste heat producing high pressure steam to drive a steam turbine generator) Providing emergency back-up power in the event of Ontario Hydro grid failure to a hospital and a group of information system dependent organisations in the municipality, on a contract which would provide for heavy damages if Samdo fails to provide emergency power when needed. 3. Providing low pressure steam for manufacturing organisations in the immediate vicinity of the CCGT set. The municipality has a natural gas network and supply, but the supply pipeline is not large enough to cope with the proposed CCGT. The gas supply company will provide a new main and gas at a price per unit fixed for a substantial period of time, but require a "take-or-pay" contract: if Samdo contract to take gas from any given date, they will in effect have to pay for the contracted gas flow whether they use it or not. A range of established suppliers of CCGT plants can provide the required equipment. They each tend to be at a different point in a cycle, which can be approximated by three phases as follows. 1. New untested design. Very high fuel efficiency. Initial reliability is uncertain. Likely to be very reliable in the long run. Claimed very low maintenance costs. Low capital cost to encourage purchase. 2. State of the art tested design. High fuel efficiency, high reliability and low maintenance costs. Very high capital cost. 3. Tried and true design. Low fuel efficiency, moderate reliability and maintenance costs. Moderate capital cost. CCGT plant suppliers will install plant on a fixed price turnkey 10:12 Done 3 of 4 Ontario Hydro will provide grid connections, and will not allow anyone else to do so. Low pressure steam connections, emergency power connections and water supply piping can be contracted for by Samdo using local firms. Water for the CCGT set will be taken from a river which flows through the municipality Extraction of water requires provincial as well as municipal approval. Municipal planning approval is required for the plant, water pipeline, low pressure steam lines and power lines. The latter two also require provincial approvals with respect to safety issues. Sam proposes the purchase of phase 2 (state of the art tested design) CCGT plant to be installed and running as soon as possible. He has made you responsible for preparing and implementing the plans. If you succeed, in Sam's view, you will become a vice-president in charge of new plant developments for Samdo. Sam has no time for failures. Case study tasks 1. Identify key activities, and/or key components using other structures, and/or key objectives - think carefully about the structure used as a starting position; key sources of uncertainty: key responses to these sources of uncertainty: key secondary sources and responses 2. Structure the sources of uncertainty and responses and illustrate this structure using a source-response diagram. 3. Identify what you perceive to be some key decisions Sam should take. 4. Identify what you perceive to be aspects to be quantified, the form of required computations, and outputs to provide appropriate guidance to Sam. Do not attempt quantification. 10:12 Done 3 of 4 Sam has identified what he believes to be his first big opportunity. It would involve: Producing base load clectric power for sale to Ontario Hydro in a north Ontario town using a CCGT (combined cycle gas turbine) set (2 or 3 natural gas powered turbines driving generators with waste heat producing high pressure steam to drive a steam turbine generator) Providing emergency back-up power in the event of Ontario Hydro grid failure to a hospital and a group of information system dependent organisations in the municipality, on a contract which would provide for heavy damages if Samdo fails to provide emergency power when needed. 3. Providing low pressure steam for manufacturing organisations in the immediate vicinity of the CCGT set. The municipality has a natural gas network and supply, but the supply pipeline is not large enough to cope with the proposed CCGT. The gas supply company will provide a new main and gas at a price per unit fixed for a substantial period of time, but require a "take-or-pay" contract: if Samdo contract to take gas from any given date, they will in effect have to pay for the contracted gas flow whether they use it or not. A range of established suppliers of CCGT plants can provide the required equipment. They each tend to be at a different point in a cycle, which can be approximated by three phases as follows. 1. New untested design. Very high fuel efficiency. Initial reliability is uncertain. Likely to be very reliable in the long run. Claimed very low maintenance costs. Low capital cost to encourage purchase. 2. State of the art tested design. High fuel efficiency, high reliability and low maintenance costs. Very high capital cost. 3. Tried and true design. Low fuel efficiency, moderate reliability and maintenance costs. Moderate capital cost. CCGT plant suppliers will install plant on a fixed price turnkey 10:12 Done 3 of 4 Sam has identified what he believes to be his first big opportunity. It would involve: Producing base load clectric power for sale to Ontario Hydro in a north Ontario town using a CCGT (combined cycle gas turbine) set (2 or 3 natural gas powered turbines driving generators with waste heat producing high pressure steam to drive a steam turbine generator) Providing emergency back-up power in the event of Ontario Hydro grid failure to a hospital and a group of information system dependent organisations in the municipality, on a contract which would provide for heavy damages if Samdo fails to provide emergency power when needed. 3. Providing low pressure steam for manufacturing organisations in the immediate vicinity of the CCGT set. The municipality has a natural gas network and supply, but the supply pipeline is not large enough to cope with the proposed CCGT. The gas supply company will provide a new main and gas at a price per unit fixed for a substantial period of time, but require a "take-or-pay" contract: if Samdo contract to take gas from any given date, they will in effect have to pay for the contracted gas flow whether they use it or not. A range of established suppliers of CCGT plants can provide the required equipment. They each tend to be at a different point in a cycle, which can be approximated by three phases as follows. 1. New untested design. Very high fuel efficiency. Initial reliability is uncertain. Likely to be very reliable in the long run. Claimed very low maintenance costs. Low capital cost to encourage purchase. 2. State of the art tested design. High fuel efficiency, high reliability and low maintenance costs. Very high capital cost. 3. Tried and true design. Low fuel efficiency, moderate reliability and maintenance costs. Moderate capital cost. CCGT plant suppliers will install plant on a fixed price turnkey