Millennium Dome Project

MILLENNIUM DOME PROJECT Gurpreet Singh (23), Neha Ansal (35), Soham Chowdhury (59)

Agenda Introduction: Why Project Management Project Scheduling The Organizational Context Project Selection and Portfolio Management Leadership and Project Manager Scope Management Project Team Building, Conflict and Negotiation Risk Management Cost Estimation and Budgeting Project Scheduling I Project Scheduling II Critical Chain Project Scheduling

Introduction 

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The Millennium Dome is Dome  is the original name of a large dome-shaped building, originally used to house the Millennium Experience , a major exhibition celebrating the beginning of the third millennium. The project was largely reported by the press to have been a flop  a  flop : badly : badly thought-out, badly  executed, and leaving the government with the embarrassing question of what to t o do with it  afterwards. During the 12 months it was open there were approximately 6.5 million visitors — significantly  fewer than the approximately 10 million paying visitors that attended the Festival of  Britain , which only ran from May to September . According to the UK National Audit Audit Office, the total cost of The Dome at the t he liquidation of the  New Millennium Experience Company in 2002 was £789 million, of which £628 million was  covered by National Lottery grants and £189 million through sales of tickets etc . A surplus  of £25 million over costs meant that the full lottery grant was not required. However, the £603 million of lottery money was still £204 million in excess of the original estimate of £399

Millennium Dome - Location

Located on the Greenwich Peninsula in South East London, England, the exhibition was open to the public from 1 January - 31 December 2000.

CHAPTER LIST

Introduction: Why Project Management

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

The Parameters of success in a project:

TIME: 1997-2000

CLIENT ACCEPTANCE: 12 million visitors

COST: £750 million

PERFORMANCE: World-class dome

CHAPTER LIST

Introduction: Why Project Management

Chapters 1

Introduction: Why Project Management?

The elements of the project were the following:

2

The Organizational Context

3

Project Selection and Portfolio Management

•Unique: It was at the dome that the national exhibition was to be held as part of the millennium celebrations.

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

•Time scale: The time line was fixed- started in 1997 and ended in 2000. •Budget: The project was to be funded by National Lottery, visitors and commercial sponsors and had an estimated budget of £750 million. •Limited resources: Fixed amount of human resources and equipments, raw material etc. were allotted. •Cross-functional dimension: Involved human resources from all domains like designing, construction, hospitality, electricity and water boards etc.

CHAPTER LIST

Project Life Cycle

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

CONCEPTUALIZATION

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

February 1996 The Millennium Commission decides in principle to proceed with a Millennium Exhibition. March 1996 The site at Greenwich is selected from four short-listed options. January 1997 The Commission announce their 'in principle' support for the Dome. The Government decided that the project should be delivered in the public sector. February 1997 Millennium Central Ltd (later renamed the New Millennium Experience Company Ltd) became operational.

CHAPTER LIST

Project Life Cycle

Chapters

DEVELOPMENT

1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

EXECUTION

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

April 1998 The Company issues its first Corporate Plan. November 1998 Budget review by the Company and the Commission. March 1999 Competition to select a user for the Dome after the Millennium Exhibition begins. September 1999 Tickets go on sale to the public on 22 September. January 2000 The Dome opens to the public on 1 January. The Company revises its forecast number of visitors from 12 million to 10 million on 28 January. The Company reverses its decision not to sell tickets at the gate. February 2000 The Commission awards an additional grant of £60 million to the Company on 4 February. The Company's Chief Executive Ms Jennifer Page CBE is replaced by M. P Y Gerbeau.

May 1997 The New Millennium Experience Company finalizes its business plan which sets an overall cash cost of £758 million. June 1997 The new Government confirms its commitment to the Dome. Construction of the Dome and associated infrastructure begins. July 1997 The Millennium Commission awards a lottery grant of £449 .

CHAPTER LIST

Project Life Cycle

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

TERMINATION May 2000 The Company revises its forecast number of paying visitors to 6 million in its application for an additional grant of £38.6 million submitted on 19 May. The Chairman of the Company (Mr Robert Ayling) resigns & is replaced. July 2000 The number of paying visitors reaches the three million mark. August 2000 The Commission awards an additional grant of £43 million to the Company on 4 August. The Company revises its forecast number of paying visitors to 4.5 million. September 2000 The Commission awards an additional grant of £47 million to the Company on 5 September. Mr David James CBE is appointed Executive Chairman and Accounting Officer of the Company on 5 September. Mr Quarmby steps down and becomes Vice Chairman.

CHAPTER LIST

The Organizational Context

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

MISSION STATEMENT To create, build, and operate a national Millennium Experience which attracts, inspires, entertains, educates and involves visitors and participants. •

To seek, through the Experience, to influence positively each individual's view of themselves and the world's view of this nation. •

This mission statement was well in line with the objectives set forth by the  company to build in a world class exhibition dome for the millennium  celebrations.

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

Executive Chairman

Board of Directors

Executive Directors

Chief Executive

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Finance & Corporate Services

Non Executive Directors

Site & Structure

Transport

Commercial Director

Operations Director

Sponsorships

Ticketing

Licence

Daily Operations

Trade Travel

Challenger Director

Implementation Director

Production Director

Greenwich content & events

Marketing & Communications Director

Accounting Officer

CHAPTER LIST

Key Stakeholders

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Chief NMEC Executive Officer National Audit Committee

The Millennium Commission

Accounting Officers

Environment Groups

Board of Directors

EXTERNAL INTERNAL STAKEHOLDERS STAKEHOLDERS

National Lottery Fund Distribution Department

The Millennium Commission

Functional Managers

Governm ent, UK

Visitors Project of Department Managers Culture, Media and Sports

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Project Selection & Portfolio Management The basis for selection of this project for building the Dome was: Past History: The commission wanted the Millennium Exhibition of a scale and stature comparable to that of: •The Great Exhibition of 1851 •The Festival of Britain of 1951 Since, they already had such exhibition domes built earlier like the above; they could now focus on this Dome easily as they  had past data with them which brought them higher in the  learning curve. 

Financial aspect – Balanced Budget: The millennium commission was approved as it would achieve a balanced budget - costs and income of £758 million and it would result in a 12 million paying visitors. 

CHAPTER LIST

Leadership and Project Manager

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Ms.Jennifer Page was Chief Executive  of the London Millennium Dome project  from 1 March 1995 until she was fired  after a flawed opening night and poor  early attendance at the start of 2000. Page was sacked as Chief Executive on  5 February 2000. She had come under  pressure after an opening night fiasco on 31 December 1999, followed  by poor attendance in January 2000 and a revolt by sponsors. Page added to her criticism of ministers by insisting that the unexpected  decision by the Prime Minister Tony Blair to invite one million  schoolchildren to the Dome for free had had a significant impact on  its income . In the end,

admitted blame for the ‘Ticket Fiasco’ .

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Scope Management The scope of the project was to  build a Millennium Dome so as to conduct the millennium exhibition. The following is the : Work Breakdown Structure (WBS):

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Responsibility Matrix

CHAPTER LIST

Project Team Building

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

The major players included: The New Millennium Experience Company The Millennium Commission The Department of Culture, Sports and Media The designing and construction was outsourced to different project based teams. A few examples: Civil Engineer - WS Atkins Services Engineering - Buro Happold Consulting Engineers Acoustic Consultant - Sandy Brown Associates

CHAPTER LIST

Conflict and Negotiation

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Peter Mandelson – Minister for Trade and Industry was made the Dome Secretary.

Conflict of Interest: The dome was being sponsored by a number of companies - such as Rupert Murdoch's BSkyB which were affected by rulings from the Department of Trade and Industry

“My role in relation to the dome is as shareholder, not as head of the sponsorship team."I have never been and never intend to be  involved in procuring or negotiating sponsorship deals, so no  conflict arises.” – Peter Mandelson addressing the House of  Commons.

CHAPTER LIST

Risk Management

Chapters 1

Risk

Introduction: Why Project Management?

Consequence

Likelihood Score

Impact Potential Score

Score

2

The Organizational Context

1

Schedule Risk High Overall Probability:

0.8

Medium

0.7

Serious

0.56

3

Project Selection and Portfolio Management

2

Cost Estimate Risk

0.9

Medium

0.8

Serious

0.72

4

P 0.9 + High 0.7 + 0.7 + 0.4 0.8 + 0.9 +0.4 Market Risk,+volume Serious+0.5 + 0.3 0.56 0.7 + 0.5 High f = (0.8 +Market 0.1 +Risk, 0.1price + 0.8)/13 Serious 0.49 High = 0.55 0.7 High 0.7

5

Political Risk

6

Overall Consequences: Technical Risk Medium 0.4

3 4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

High

7

Medium

0.5

Medium

0.4

Moderate

0.2

Low

0.2

Minor

0.08

Financing Risk

High

0.9

Medium

0.4

Serious

0.36

8

Cf = (0.7 + + 0.8 + 0.8 + 0.7 + 0.4 + 0.2 + 0.4 +0.4 +0.2 + Promotion Risk Moderate 0.16 Medium 0.4 Medium 0.4 0.3 + 0.1 + 0.2 + 0.1)/13 = 0.26

9

Technical Risk

Medium

0.5

Low

0.2

Moderate

0.1

Project Scheduling II

10

11

Critical Chain Project Scheduling

11

12

Project Closeout and

12

Operating Risk Low = P 0.3 + C  – Low Overall Risk Factor (Pf) * 0.3 (Cf) Minor f f Integrating Risk Minor Low 0.1 Low 0.10.55*0.26 = 0.55 + 0.26  – = 0.67 Low 0.1 0.2 Environmental Risk Low Minor

0.09 0.01

0.02

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Risk Impact Matrix

THE RISKS

CHAPTER LIST 1

1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Construction (Schedule Risk) The Dome might not be completed on time.

Chapters

2

The Dome opened on schedule on 1 January 2000. The fit out of the Dome, originally to be completed by October 1999, continued up to opening day. This meant that t here was limited opportunity for trial running.

Cost Estimate Risk Costs might exceed the May 1997 budget.

3

WHAT HAPPENED IN PRACTICE

Costs moved over the period May 1997 to September 2000. As at September 2000, the budget had increased by five per cent.

Visitor numbers (Market Risk, volume) Visitor projections might be too The projected number of paying visitors reduced from high. 12 million to 4.5 million.

4

Marketing (Promotion Risk/ Market Risk, price) Marketing might not successfully sell the Dome to the public, particularly if there was considerable negative publicity.

The public perception of the Dome was of a 'risky purchase'. But the majority of people visiting the Dome enjoy it.

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

6

7

THE RISKS Sponsorship

WHAT HAPPENED IN PRACTICE

Delays in finalizing contracts, and the unattractiveness of certain zones to sponsors, might result in a failure to secure anticipated levels of sponsorship.

The total amount of sponsorship received (cash, 'value in kind' and 'budget enhancement') was below the original budget of £175 million

Sale Proceeds Buyers might not be found for the Dome, and an adequate selling price might not be achieved.

8

A preferred bidder for the Dome was announced in July 2000 with an offer of £105 million, but withdrew in September. The process of finding another buyer was then restarted.

Political Risk Political unrest, strike, riots, terrorism The Secretary for trade and industry, Peter Mandelson etc. had been given the responsibility for the Millennium Dome and was charged by the opposition for conflict of interest between his two jobs. The dome was being sponsored by a number of companies - such as Rupert Murdoch's BSkyB - which were affected by rulings from the Department of Trade and Industry.

CHAPTER LIST

Cost Estimation and Budgeting

Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Cost Sheet

Sponsorship income, compared with the Company’s forecast

Ticket sales income, compared with the Company's forecast

Actual total and paying visitors compared with the Company's successive targets

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Project Scheduling

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Gantt Chart

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Network Diagram

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Critical Chain Project Scheduling The concept of CCPM could be applied to the Millennium Dome project and work could be completed before schedule without any delay because of the safety and feeder buffers.

WITHOUT CCPM The total days required to complete the project was 1128 days before applying CCPM.

WITH CCPM The total days required to complete the project is 887 days after applying

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Project Closeout and Termination Body of the write up Write brief sentences or better just points

CHAPTER LIST Chapters 1

Introduction: Why Project Management?

2

The Organizational Context

3

Project Selection and Portfolio Management

4

Leadership and Project Manager

5

Scope Management

6

Project Team Building, Conflict and Negotiation

7

Risk Management

8

Cost Estimation and Budgeting

9

Project Scheduling I

10

Project Scheduling II

11

Critical Chain Project Scheduling

12

Project Closeout and

Project Closeout and Termination Body of the write up Write brief sentences or better just points