2018-19

NICMAR
(National Institute of Construction Management and Research)

EXECUTIVE POST GRADUATE PROGRAM IN MANAGEMENT (E-PGPM)

BATCH-15 GROUP-1
AFCONS INFRASTRUCTURE LIMITED, MUMBAI

CASE
Pittsburgh Intern. Airport
Midfield Terminal Energy
Facility 1
GROUP MEMBERS
Mr. Bipul Kumar
Mr. Chinmaya Nayak
Mr. Deepak Kumar Saxena
Mr. Gajendra Singh
Mr. Gaurav Gupta
Mr. Gurjit Singh
Mr. Gyanesh Kumar Jha
Mr. Sanjeev Sharma
Mr. Suraj Singh

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 Background
• The Pittsburgh International Airport is owned & operated by the Allegheny County
Department of Aviation.
• Pittsburgh is the second busiest passenger airport in Pennsylvania and 47th busiest in US,
serving 8,041,357 passengers in 2012.
• The new Midfield Terminal includes;
• Landside/central services building 500,000 sft
• Airside building 1,200,000 sft
• Gate capacity 75 aircraft
• Provisions to expand 100 gate terminal
• The modified Terminal Energy Facility was designed to meet the requirement as ;
• Ultimate cooling load 9,100 tons
• Ultimate heating load 113 x 106 Btuh (British Thermal Units per Hour
• The energy facility also provides electric power to the modified Terminal from the new
substation located between the energy facility and the field-erected concrete cooling tower.
• The energy facility was subcontracted by Allegheny County to 3rd Party contractor.
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PROJECT REVIEW FROM PROJECT MANAGEMENT POINT OF VIEW

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 Scope Management

• No cost cutting on engineering had taken place by keeping the following design objectives
in mind;
• Long term availability of energy /fuels.
• Reliable equipment system selections
• State of the art centralized control.
• Optimum equipment systems efficiencies.
• Environmentally safe emissions.
• Low maintenance operations.
• Requirements with proper specification with comparative studies of alternatives done.

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 Integration Management

• Despite the fact that many different organizations were involved, the project must come
together with proper integration management.
• At this project the process were planned to ensure that project is completed within
approved budget.
• By keeping all stakeholders informed and involving them in the process whenever
appropriate, the owners and stakeholders grow to feel for the project and ensured their
support and coordination.
• All stakeholders were focused on the common interests in the process rather than
opposing positions of the parties.

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 Time Management

• Realistic project schedule was made for complete three years.

• With all contingencies properly factored into the schedule.
• After negotiating the realistic budget, the job was to focus on schedule regress monitoring
of schedule with following control tools;
• Performance review.
• Variance analysis.
• Resource leveling.
• The startup testing was delayed due to some non-controllable issues and begins later than
scheduled.
• But due to contingencies already was taken in schedule so it has not affected schedule
much.
• And project was completed six weeks ahead of schedule.

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 Cost Management
• Project cost is equally important but it is directly proportional to the level of quality required.
• Many owners try to save money by minimizing engineering cost witch results in lot of
design changes in later stage and hence delays happened and results in cost increase.
• This was not happened in this project as there was no compromise on engineering costs
and by considering the following points;
• The scope statement was very clear.
• Best contractors was selected with proper bidding and contract award.
• Major equipment's are pre purchased.
• The costs on this project was under control due to balance between the following factors;
• Quality
• Schedule
• Budget

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 Quality Management

• The 1st objective “quality” was stressed not only by Allegheny County but also by the owner
of the energy facility.
• This facility was the 1st energy facility with the best equipment's available to produce
reliable energy over a long term contract. This was done by the following factors;
• Very clear project objective.
• Detailed engineering details and specifications.
• Reliable equipment systems are selected.
• Proper technical personal was deployed.
• Proper material testing's was done.

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 HR Management

• Human resource plan was developed as described below;

• Project was staffed with well qualified and trained personals.
• Selected by strictly intervening them.
• Well defined organization chart with position descriptions was made.
• Development on the project team by providing trainings on interpersonal skills, team
building activities, recognition and rewards / incentives.
• Management of project team by observing, performance appraisal and conflict
management.

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 Communication Management

• It’s the result of effective communication as the project scope was well defined and clear to
all parties including Owner, Contractor and Sub-contractors.
• In schedule also “interface with other entities” had properly factored.
• The Owner , Allegheny County and SE Technology were well synchronized.
• Also the design documents were developed before bidding process which sometimes
becomes a point of communication gap and final projects got delayed.
• Project milestones were scheduled and monitored regularly.

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 Procurement Management

• The owner negotiated a realistic budget that would ensure the level of quality required and
sufficient money to implement the project.
• After schedule is made for 3 years, construction bidding document was prepared.
• And the construction contract was awarded in mid- November of 1990.
• as it was decided before biding process that Major equipment's to be pre-purchased,
• so in the 1st week of December major equipment's started to deliver at the energy facility as
planned.
• And all major equipment's was in facility by March 1991.

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 Risk Management
• High pressure steam system was considered at bidding stage, during conceptual stage
design it was changed to High Temperature Water system (HTW) which provided many
advantages.
• HTW system is a less complex system than steam heating because of absence of high
pressure in pipes.
• Initially there was a perception that HTW system is dangerous. A practical test was done
which proved that HTW is safe comparing with steam system.
• Other risks as said before were managed properly and are listed below;
• Risk of improper communication.
• Risk of improper integrity management.
• Risk involved with change in design / drawings (or change of scope).
• Risk with inefficient technical staff.

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 CONCLUSION AND KEY LEARNINGS

• Successful projects must have owner’s commitment to realistic scheduling and

budgeting / cash flow.
• Scope management process was properly carried out and the identified activities were
clearly described / stated.
• Projects can be properly controlled by controlling the schedule not the budget as budget
is directly proportional to variations in the schedule.
• Schedule must have sufficient contingencies to manage small delays in critical
resources and activities.
• Proper strict monitoring of schedule can also play a vital role in timely completion of
project.

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THANK YOU

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