Project Management Report of Chunnel

Project Initiation Phase

Submitted to:- Submitted by:-

Dr. V.K. Gupta Satyajit Chatterjee (BM- 017055)
Sreya Ghosh (BM- 017059)
Sayak Dutta (BM- 017057)
Suman Dutta (BM- 017060)
Samriddhi Banerjee (BM- 017054)
Nitesh Kumar (BM- 017061)
 Channel Project Initiation Phase
The Project Initiation Phase is the 1st phase in the Project
Management Life Cycle, as it involves starting up a new project. You
can start a new project by defining its objectives, scope, purpose and
deliverables to be produced. We have also to hire the project team, setup
the Project Office and review the project, to gain approval to begin the
next phase.

Overall, there are six key steps that you need to take to properly initiate
a new project. These Project Initiation steps and their corresponding
templates are shown in the following diagram.
Activities
1.
Develop a
Business Case

2.
Undertake a
Feasibility Study

3.
Establish the
Project Charter

4.
Appoint the
Project Team

5.
Set up the
Project Office

6.
Perform a
Phase review
WHAT IS THE PROJECT INITIATION PHASE?
The initiation phase encompasses all the steps you must take before a project is
approved and any planning begins. The goal is to define the project at a high level and
tie it into the business case it is suppose to solve.

It should be able to answer two questions: why are we doing this project and what is the
business value we expect to deliver? Consider the feasibility of the project and all of the
stakeholders that may be affected or require involvement.

CREATE A PROJECT CHARTER

Once the initiation phase is underway and you’ve been given the green light, you need
to create your project charter, or project initiation document (PID). The project charter
outlines the purpose and requirements of the project.

It includes details, like business needs, key participants and stakeholders, scope,
objectives, and overall goals. The project charter provides a foundation for defining
project decisions and ensuring they are in line with company goals.

Although typically around one to two pages in length, your charter can be longer
depending on the size, type, and complexity of the project. Here are some items you
should be sure to include in your project charter:

 Title
 Brief Description
 Background
 Goals/Deliverables
 Scope
 Impact on Other Business Systems and Units
 Stakeholders
 Roles and Responsibilities
 Milestones
 Budget
 Constraints, Assumptions, Dependencies, and Risks
 Success Measurements/ROI
 Project Approval
Now let’s go through the Chunnel Project
Initiation phase in more details….
Overview Diagram:-

The Chunnel Project : Introduction

“The Channel Tunnel (Chunnel) project was launched to create a connection
between England and France via dedicated underground tunnel.

Scope of the project: To create a fixed transportation link between England and
France.

Objective’s of the project:

1. To spur economic development in the region.
2. Improve European trade environment.
3. Provide alternative high speed transportation method.
Cost and Finance:-
(Cost Estimates)
Construction Cost (in pounds) 2.8 billion
Corporate and Other Costs 0.5
Provision for Inflation 0.5
Net Financing costs 1.0
Total 4.8 billion

(Financing Plan)
Equity (in pounds) 1.0 Billion
Loans 5.0 billion
Total 6.0 billion

Project Stakeholders:-
1. The Government of France
2. The Government of Britain
3. Eurotunnel Group
4. Citizens of France
5. Citizens of Britain
Organizational Breakdown Structure:-
Project Challenges:-

Scope and Procurement:-

During the inception phase, Eurotunnel entered into a construction contract with
TML in 1987 having three cost categories:
1. Target cost for tunneling, done on a cost-plus fixed-fee basis, with a target cost
above or below which there would be a sharing of the difference.
2. Lump sum for the terminals and the mechanical and electrical works for the
tunnel.
3. The procurement contract for rolling stock and associated major equipment was
procured on a cost-plus-percentage-fee basis.
Human Resource Management:-

Item English Side French Side

Recruitment  50% travelling men  95% from depressed
 Housed in a temporary camp regions
 Recruited from depressed  Part of employment
mining regions regeneration
 Help with job at end of the
project
Policies  Smoking and drinking not  Smoking and drinking
allowed allowed
 Poor safety record  More organized union
structure
Problems  Seniors managers did not get  Harmonious atmosphere
along
Quality Management:-

Communication Management:-
Major areas of strength in the management of Inception
phase:-
1. High level design and respective rough order of magnitude of estimates were
appropriate.
2. Schedule planning included activity definition, sequencing and duration to
develop base line project schedule.
3. Risk management to have reviewed the scope of the euro-tunnel initial risks
with perspective of engineering risks.
4. Quality management included quality planning, assurance, and control.
5. Team work was explicit given the fact thousands of workers, machinist and
engineers worked very well over a period of 3.5 years.
6. Communication perspective related to project planning, negotiations and its
flow was achieved and technical problems were solved smoothly.
7. Monitoring of project objectives and its progress was accomplished.
8. There was a significant value of an effective in decision making following “
best practices” to include all key stakeholders.

Major areas of opportunities for improvement in Inception

phase:-
1. Enough time should have been provided for low level design keep the project
cost effective and with respect to initial estimation.
2. Contractual assessment could have been more precise which led to additional
claims to 2.25 billion USD.
3. Risk management of know or unknown and change control methods could have
been more rigorous.
4. Incomplete requirements, scope changes and risk responses should have been
mitigated to reduce likelihood of negative schedule and cost variance.
5. Communication within organizational structure, contracts and finances were
addressed with conflicts.
6. Monitoring of project should have been managed to industry specific pratices
and agreed upon international standards.
7. Decision making along with roles and responsibilities of a project management
office should have been validated