2
Project Charter
Trine University
Project title: Beaumont blue ammonia production facility-$2,060m
Purpose:
The purpose of the project is to produce ammonium dichromate by chemically converting the inorganic form of ammonia, NH3, into its organic form CH4. The process for producing ammonium dichromate is called alkylation, which involves a two-step reaction. First step entails water splitting into hydrogen and hydroxyl radicals as well as oxidation of OH-. This causes an increase in electrons and free radicals, forming reactive chlorine compounds that react with ammonia molecules.
Objective:
The Beaumont Blue Ammonia Production Facility will be the first of its kind in the world, and it is projected to produce over 2.4 million tonnes of liquefied ammonia per year.
The facility will use feedstocks such as natural gas to make hydrogen, which will be used as an energy source for ammonia production.
Once finished, this project is expected to generate many jobs in our region while also increasing economic development benefits throughout the local area.
The facility was originally designed to produce pure liquid ammonia and nitrogen gas for producing fertilizer and fertilizing crops.
Scope:
Beaumont Facility announced that it has achieved a key operational milestone which is the beginning of its transition from ammonia production to nitrogen gas. Now that the facility has begun transitioning from ammonia production to nitrogen gas production. In addition, this process could have a significant impact on reducing greenhouse gases with the switch from burning natural gas by-products such as carbon dioxide emissions and methane flaring.
Success criteria or expected benefits:
The Beaumont Blue Ammonia Production Facility will be adding more than 4,500 jobs to the region and manufacturing 730 tons of ammonia per day at its opening.
This project could have $2 billion in economic benefits for Jefferson County.
It would also help the area comply with environmental regulations for the next 25 years without exceeding nitrogen dioxide limits set out by US EPA that are scheduled to rise dramatically over time.
The Beaumont Blue Ammonia Production facility is forecast to contribute to the regional economy through wages and salaries, direct procurement of goods and services from local industry, taxes on economic activity and infrastructure investment in the region.
Funding:
$2060m is the estimated cost for this project. The facility is due to commence production in 2020 and when it does, it will be able to produce up to one billion litres of blue ammonium nitrate per annum. This clear liquid ammonia product has many uses within agriculture. They include plant nutrient management and animal feed supplementing.
Blue ammonium nitrate is not only used as a form of plant nutrient management, it is also used as a boost to stock feed. An increased nitrogen level in the diet raises the amount of protein that can be obtained from a given amount of feed. This reduces the cost to farmers and also has an environmental benefit, as less fuel is needed to transport food around the country.
Major deliverables and Milestone schedule:
The project is considered to be one of the major deliveries for Lee County, Texas and Gulf Coast refineries.
Beaumont has been awarded with this major production facility because it provides the essential elements needed for ammonia processing plant construction such as crude and treated hydrocarbons plus liquefied natural gas, feedstock chemicals and a source of electrical power.
This facility has been operated continuously for 58 years and employed approximately 6800 people at its peak.
Milestone schedule for the project is it in the year of 2021 and completes in the year of 2023.
The total cost of operating this plant came out to be $2,060 Million US Dollars and produced 747500 metric tons of methane gas.
Acceptance criteria:
The project is a $2,060m project that was announced by Beaumont Petroleum, who have the sole rights to sell Blue Ammonia in the Eastern North American Market.
The production facility will be dedicated entirely to producing purified ammonia gas and consequently produce 100% of its own nitrogen-based fertilizers for all markets for their customers.
As it is not possible for any other company or country outside of Western North America to produce purified ammonia gas due to the high-heat processing requirements.
This production facility will be an essential piece of infrastructure for feeding nearby coal power plants and cement factories with high quality air emissions that meet stringent Environmental Protection Agency (EPA) requirements.
Key assumptions:
The following assumptions were taken from the Beaumont Blue Ammonia Production Facility $2,060m project and are categorized as an average construction cost of $400m per month will be spent on the project. Beaumont Blue Ammonia Production Facility will be available for use in Australia, New Zealand and other areas such as South Africa, Zambia and India where it has been trailed successfully.
Revenue generating operations will commence in the third quarter. Production capacity is expected to increase from 12990 tonnes per year to 14600 tpy with a capital cost of approximately $250 million and an operating cost of approximately $130 million per year. The plant will take advantage of its coastal location to import cheap feedstock from around the world.
An assessment by reputable engineering consultants suggests that this project may not meet its contracted production targets and promises to deliver over $2 billion in value for communities, businesses and investors
Constraints:
With the recent works of the Obama administration, many changes have been made which is good for the people. Among these changes was a new Environmental Protection Agency regulation which would require 30% of fuel production to be renewable.
In order to meet this regulation, Shell chose to build a new plant called the Beaumont Blue Ammonia Production facility near Houston, Texas. This project was seen as an environmental nightmare because it will produce large amounts of ammonia which can harm both humans and animals as well as cause acid rain.
Major risks:
The risk for the project as amount of ammonia being sold and needed for the production facility is expected to be about 72,000 tonnes per annum. With an estimated 12 plants around Australia with a capacity to produce ammonia, it is important that the Beaumont production facility can locate enough ammonia to sustain its needs.
Another risk facing the plant is that it needs to obtain sufficient energy. The way in which the plant operates means it produces large volumes of waste heat which will require energy-efficient solutions in order to reduce costs and also improve efficiency gains. The Beaumont production facility will use up to 40% less electrical energy than other types of plants that produce liquid ammonia.
The project proponents are proposing to construct a new gas-fired ammonia plant with facilities to produce over 150,000 tonnes per annum of ammonia and related products, making it one of Australias largest gas-fired power plants. Beaumont Blue would use natural gas from Bass Strait as feedstock to produce up to 135 MW of emissions-free electricity using clean, cutting-edge technology that captures carbon dioxide emissions and provides Australia with some security against future international energy price shocks.
Approval requirements:
The Beaumont Blue Ammonia Production Facility is a large, 8,000-acre business complex in Northern Alberta. The facility’s purpose is to produce blue ammonia as an alternative to traditional brown ammonia and it’s worth $2,060m.
The driving force behind the project was the Government of Alberta, which invested $1 billion. The Alberta government signed off on this arrangement in 2008 via the province’s Crown Investments Corporation (CIC), which oversees decisions on investments of up to $500 million from the province.
Project manager: B Venkata Kodandanaveenmurali Mylavarapu
Sponsor designee:
EKOS Research Group LLC, Franklin County Judge Mike Green’s office and the Franklin County Commissioners filed a motion with TBX to appoint EKOS as the Sponsor Designees for BIP. EKOS will be responsible for managing all day-to-day operations of BIP, with full authority over all operational decisions at BIP. PART 2 BLUE AMMONIA PRODUCTION 2
Finalized Project Scope
The Beaumont blue ammonia production facility project goal is to construct a brand-new ammonia manufacturing plant, so one can produce blue ammonia by taking pictures and storing carbon emissions. The facility will have a production capability of one,000 metric heaps of ammonia according day and could encompass several components, which include a carbon capture device, an ammonia synthesis unit, and a strong technology unit. The challenge may even contain building infrastructure for carbon dioxide transportation and garages, such as pipelines, storage tanks, and wells. The scope of the project consists of the engineering, procurement, and construction (EPC) of the ammonia production facility, the carbon seizes system, and the electricity technology unit. The undertaking will even contain the installation of equipment, piping, instrumentation, electric, and management structures required for the operation of the facility. The scope additionally covers the development of infrastructure required for carbon dioxide transportation and garage, inclusive of pipelines, garage tanks, and wells. The undertaking can even encompass commissioning and begin-up sports and schooling for plant employees.
WBS Structure
The Work Breakdown Structure (WBS) for the Beaumont blue ammonia manufacturing facility project is supplied inside the chart underneath:
The project control hierarchy includes 5 levels. At the pinnacle of the hierarchy is Level 1, which encompasses the overall control of the assignment. Below Level 1 is Level 2, which is answerable for the engineering factors of the mission. Level three is devoted to the procurement, at the same time as Level 4 handles construction activities. Finally, Level five offers commissioning and start-up sports. Together, those levels ensure that the assignment is controlled successfully from theory to crowning glory, with every level responsible for a particular factor of the venture.
At Level 1, the Project Management stage consists of all venture control sports, consisting of venture-making plans, budgeting, scheduling, and chance control. Level 2 includes Engineering sports, consisting of system layout, system design, and unique engineering. Level three includes Procurement sports, which includes buying gadgets, materials, and offerings required for the task. Level four consists of Construction sports, including civil works, gadget setup, piping, electrical, and manipulation systems. Finally, at Level 5, Commissioning and Start-up sports include checking out, commissioning, and start-up of the plant, in addition to education for plant employees. The WBS chart gives a visible representation of the venture structure, permitting venture managers to pick out the important thing additives of the challenge and allocate sources and duties for that reason. The WBS chart also enables us to discover the essential route of the challenge, that is the sequence of activities that should be completed on time to keep away from delays in the project timetable.
Develop Project Schedule
The task timetable for the Beaumont blue ammonia manufacturing facility assignment is supplied within the chart beneath:
The venture will be accomplished in 4 phases, starting with Phase 1: Engineering, which will take 365 days. This might be followed with the aid of Phase 2: Procurement, a good way to take 24 months. Phase 3: Construction will then begin and remain for 36 months. Finally, Phase four: Commissioning and Start-up will take region, to be able to take 6 months to complete. Together, those four stages will ensure that the undertaking is completed effectively and in a well-timed way, assembly of all vital requirements and necessities.
The undertaking timetable follows a sequential order, with each segment constructed on the completion of the preceding phase. The Engineering segment will take 365 days to complete, in the course of which the technique layout, system layout, and detailed engineering can be finished. The Procurement section will take 24 months to complete, the duration of which gadgets, substances, and offerings required for the task could be purchased. The Construction segment will take 36 months to complete, during which civil works, equipment setup, piping, electrical, and manipulation systems will be built. Finally, the Commissioning and Start-up phase will take 6 months to finish, throughout which trying out, commissioning and start-up of the plant might be conducted, and schooling for plant personnel can be supplied. The undertaking schedule chart affords a visible representation of the assignment timeline, allowing assignment managers to tune progress and perceive ability delays. It also helps to discover crucial paths and dependencies between challenge activities, permitting task managers to prioritize sources and make certain that the project stays on schedule.
Project Resources Tasks Chart
The project assets challenge chart gives a comprehensive breakdown of the sources required to execute the Beaumont Blue Ammonia Production Facility challenge. The chart includes five categories, namely human, economic, equipment, era, belongings, and contractors. The chart goals are to make sure that all important resources are accounted for and that the task is performed correctly and effectively.
The Beaumont blue ammonia production facility venture would require numerous resources for you to achieve success. Human sources might be critical and could encompass a challenging manager, engineers, and skilled exertions. The economic assets wished for the task will consist of capital funding, running prices, and contingency price range to make sure that the assignment stays on budget. Equipment assets will also be required and will consist of gadgets inclusive of ammonia synthesis reactors, heat exchangers, and gasoline scrubbers.
Technology resources will also be wished, such as ammonia production generation, automation systems, and procedure control systems. Property resources can also be important, with a focus on land acquisition, building production, and infrastructure development. Finally, contractor assets can be required and will encompass an Engineering, Procurement, and Construction (EPC) contractor, production control consultant, and commissioning and startup representative to ensure that the task is finished successfully. With all of these assets in location, the Beaumont blue ammonia production facility mission has a strong hazard of success.
The chart intends to provide challenge managers with clear information about the assets required for the task and to make certain that these assets are to be had when wanted. The chart’s categories cover all factors of the mission, from the preliminary planning and design to the development and operation of the ability. Additionally, the chart permits task managers to track the development of every resource class, ensuring that the project stays on the right track and budget.
Stakeholder Engagement
For the Beaumont Blue Ammonia Production Facility, stakeholders include the local community, government organizations, traders, and contractors. The engagement procedure will take area at some point in the mission’s lifecycle, from planning to commissioning. We will use various channels to interact with stakeholders, such as meetings, newsletters, and social media. We may even engage stakeholders thru public consultations and community events. The engagement process can be ongoing, with normal updates supplied to stakeholders at the challenge’s progress.
Communication Plan Chart
The communique plan chart outlines the communication sports so that will take region during the task. The chart consists of dates/times, what will be mentioned, frequency, and the sort of conversation. The chart’s purpose is to ensure that every stakeholder is saved and informed approximately the assignment’s progress and that any troubles are addressed in a well-timed way.
The assignment verbal exchange plan will contain 3 conferences. The first assembly is the Project Kickoff Meeting, scheduled for June 1, 2023, at 10:00 AM. This may be an in-individual assembly wherein the task evaluation, scope, and objectives will be mentioned. The second assembly is the Monthly Progress Meeting, to be held on the primary Tuesday of each month at 2:00 PM, starting from July 2023. This might be a digital meeting in which the challenge repute update, problems, and dangers could be discussed. The 0.33 and very last assembly is the Project Completion Meeting, scheduled for October 1, 2026, at 11:00 AM. This might be an in-character assembly where the final challenge evaluation, instructions learned, and next steps could be discussed.
The communication plan chart guarantees that stakeholders acquire ordinary updates on the project’s progress and that any problems are addressed promptly. The plan also allows stakeholders to offer comments and raise any issues they may have. Effective verbal exchange is essential to the achievement of the challenge, and the verbal exchange plan chart ensures that all stakeholders are kept informed and engaged through the project’s lifecycle.
image1.png
image2.png
image3.png
image4.png 6
Part3: Budget and Risk Management
A.
Overall Project Budget
Beaumont Blue Ammonia Production Facility is predicted to cost around $2,060,000,000 to complete as a whole. Included in this total are not only the obvious expenses like rent, electricity, and taxes, but also the more nebulous ones like design, building, commissioning, and startup. The costs are broken down as follows:
Design: $50 million
Construction: $1,500 million
Commissioning & Start-up: $200 million
Utilities: $200 million
Insurance: $50 million
Taxes:$60million
B.
Project Requirements
The project must meet the following requirements:
The facility must produce up to one billion litres of blue ammonium nitrate annually
The project must generate over $2 billion in economic benefits for Jefferson County
The project must create over 4,500 jobs in the area
The project must capture and store nitrogen dioxide for the next 25 years without exceeding US EPA limits
C.
Cost management plan
Task Minutes/Hours Days Hourly Rate Total Cost
Project Planning 4hr 1 $50 $200
Resource Allocation 5hr 1 $50 $250
Project Scheduling 8hr 1 $50 $400
Project Monitoring 6hr 1 $50 $300
Project Risk and Quality Control 6hr 1 $50 $300
D.
Contingency Plan
The Beaumont Blue Ammonia Production Facility project has a documented contingency plan that details what must be done in the case of any unforeseen circumstances. The plan will specify who will be responsible for implementing the contingency plan and how their tasks will be divided up. The first stage in developing a backup plan is to make a list of all the people who would be affected by the project’s failure, including the project manager, team members, suppliers, and anybody else who has a vested interest in its success. A project manager’s next step, after identifying important stakeholders, is to establish the contingency plan’s goals and design a strategy for dealing with probable risks and concerns. Establishing a timeframe and major checkpoints is part of this process, as is devising a plan to deal with any threats.
The project manager is responsible for keeping everyone in the loop on the status of the contingency plan and any updates or revisions made to it. The project manager is responsible for ensuring the plan is updated and evaluated at appropriate intervals. Last but not least, it is the project manager’s responsibility to get the buy-in and support of everyone involved in the project for the execution of the contingency plan.
E.
Risk management matrix
Each risk should be described, together with its associated likelihood, severity, control mechanisms, owner, and status in a risk management matrix. A high-level summary of the risk and its possible impact on the project should be included in the risk description. The risk probability should describe how likely it is that the risk will materialize. The risk severity should describe the potential damage that would result if the risk materializes. A plan for mitigating the risk and lowering its possibility should be laid forth. It is important to identify the risk owner who will be in charge of keeping tabs on and mitigating the risk. In order to provide an accurate picture of the project’s current risk state, the risk status should be updated often.
F.
Change management process
The first phase of change management is doing an audit and making a list of potential adjustments. The first step is to take stock of how things are done around here and see where efficiencies might be gained. All the tools, infrastructure, and methods now in use will be evaluated for areas of potential improvement. Following the identification of prospective modifications, a list of necessary adjustments should be compiled and the risks associated with each change should be evaluated. This involves weighing the benefits and drawbacks of each proposed change against the costs of implementing them.
The following phase, once the modifications have been identified and evaluated, is to develop a strategy for putting them into action. Establishing a timeframe and assigning responsibilities for making the necessary adjustments is part of this process. It’s crucial at this point to get input from everyone who may be affected by the changes and to make sure that everyone engaged is aware of what’s going on. This involves making sure that workers, customers, and other stakeholders are consulted and their input is considered.
After a strategy has been developed for making the changes, the process must be monitored to ensure the changes are carried out as intended. This involves monitoring the progress of the modifications and keeping tabs on any setbacks or complications that may develop. As the modifications are implemented, it is important to track their development and keep everyone involved in the process informed. Last but not least, the change management process should include an evaluation of the effects of the adjustments made.
G.
Project RAID
Project RAID (Risks, Assumptions, Issues, and Dependencies) is used to manage the Beaumont Blue Ammonia Production Facility project. The high cost of the project, the potential for hazardous emissions from the plant, the need to use cutting-edge technology, and the complexity of the project all pose significant financial, environmental, technological, and operational risks. The PM is the one who has to find these potential problems, evaluate them, and figure out how to fix them.
Certain assumptions about the project’s budget, schedule, and other factors must be made by the project team. These presumptions need to be written down and shared with everyone involved. The Project Manager is in charge of making these assumptions and keeping tabs on them as the project progresses. The Project Manager must also be alert to and able to address any problems that crop up as the project progresses. Possible problems include being late with deliveries, going over budget, or being harmful to the environment. The Project Manager has to take the initiative to address these problems and inform those affected by the outcome.
The Project Manager is responsible for figuring out what the project needs in order to go forward, such as what resources will be required and who else will need to be involved. The PM must ensure that any risks associated with these interdependencies are mitigated.
% of the total expenditure Construction Utilities and commissioning Taxes Insurance and design 72.8 19.399999999999999 2.9 2.4
Hours Project planning Resourse Allocation Project scheduling Project monitoring Project Risk and Quality control 4 5 8 6 6 Hourly Rate Project planning Resourse Allocation Project scheduling Project monitoring Project Risk and Quality control 0 0 0 0 0 Total Cost Project planning Resourse Allocation Project scheduling Project monitoring Project Risk and Quality control 200 250 400 300 Final week, you are to finalize the overall project management plan (PMP).****
ASSIGNMENT IS DUE BY THURSDAY!!!****
YOUR CHARTER MUST BE IN THE SAME ORDER WRITTEN BELOW. EACH SECTION MUST BE NAMED EXACTLY WHAT IS WRITTEN BELOW.Points will be deducted for not following instructions.
DO NOT COMBINE SECTIONS.Points will be deducted for not following instructions
~ You may use your work from Week 2, Week 4, and Week 6 that was completed “in this class” to complete the assignment.
~ Paper must be written in New Times Roman, 12 pitch font.
~ Must submit work through TurnItIn Tool.
**See below. Must add:
~ Stakeholder Register
**Please ensure errors from previous week’s assignment has been fixed. Points will be deducted for repeated errors.
—————————
***Your PMP must have the following categories:
Project Purpose:
Notes on why this project is occurring (Who is going to be involved? Who are the team members going to be? What is the team going to be doing? What is the end goal of the project? Why? When is the project going to happen? Where is the project going to happen? How is this project going to get done?)
Project Objectives:
(Example: Complete construction of bathroom in 2 months.)Should be a minimum of (5) five objectives in bullet format. What are the goals you hope to accomplish with this project.
Finalized Project scope
– (What will occur specifically in this project). A project scope statement is simply a written document of your project scope. Should be a minimum of (1) one paragraph.
Success Criteria or Expectation Benefits: (
Example: Increase sales of tomatoes by 20% in three months. Shorten delivery time of potatoes to stores by 3 days.)
What are your goals for the project?Should be measurable. Should include what, when, and by what percent/amount.Should have a minimum of (5) five criteria/benefits.
Overall project budget
– The overall project project budget should be (1) one chart. The overall project budget must be self-made and “very detailed.” Show where all money will go towards in your project.
WBS structure
– Should include (1) one WBS chart. The WBS chart must be self-made. Must include (2) two paragraphs to explain the information on “your” chart.
Project requirements
– List a minimum of (5) five project requirements in complete sentences. Project requirements are items that need to be completed in order for the project to be deemed successful.
Funding
: Should be (1) one chart. The funding chart must be self-made.
Should not be detailed.Show what divisions or sections money will go towards in the project.
Should not look like “overall project budget” chart. Must include (2) paragraphs explaining the funding.
Cost management plan
The cost management plan should be (1) one chart. The cost management plan must be self-made. The cost management plan should include: the task, minutes/hours it takes to complete the task, the days it takes to complete the task, hourly rate it costs to complete the task, and the total cost to complete each task. Should have a minimum of (5) five tasks.
Project schedule
– Should include (1) one project scheduled chart. The project schedule must be self-made. Must include (2) two paragraphs to explain the information on “your” chart.
Major Deliverables and Milestone schedule
Should be (1) one chart.The major deliverables and milestone schedule must be self-made. Should be a minimum of (5) five deliverables. Each should have time the deliverable is due. Should also include “who” is responsible for each deliverable on the team.
Acceptance criteria
You should have a minimum of (5) five acceptance criteria.What are the things that the customer is specifically looking for to accept the project for final handover.
Project Resources Tasks
Should include (1) one project resources task chart. The project resources task chart must be self-made. The chart should have (5) categories. The categories are: human, financial, equipment, technology, property, and contractors. In each category, a minimum of (3) three items must be provided for each category. Then provide (3) three paragraphs explaining the chart. Example: What are the three different types of equipment will be needed in your project.
Contingency Plan
Should be a minimum of (2) two paragraphs and be very detailed. The contingency plan is a written plan in case “your” project has to change in case of unforeseeable events occur. 1. Identify what would need to occur in order to start contingency plan. 2. Identify “who” will be involved, what “they” need to do, and “how” the plan will be executed.
Stakeholder Engagement
Should be (1) one paragraph explaining “how” and “when” you will speak to stakeholders.
Stakeholder Register
add a chart. The stakeholder should be a minimum of (5) five people. These personnel are a list of the stakeholders important to the project.Should include the stakeholders name, job title, role, low/medium/high power in the organization.
Communication Plan
– Should include (1) one communication plan chart. The communication plan chart should be self made. The chart should include dates/time, what will be discussed, frequency, type of communication. The chart should include a minimum of (3) three different meetings. Must include (2) two paragraphs to explain the information on “your” chart.
Key assumptions
Should be (3) three paragraphs. Should have a minimum of (3) three assumptions.What are some things “you” can assume about this project and “why?”
Constraints
Should be (2) two paragraphs. What are some things that could hinder the success of the project and why? (Note: Time, cost, schedule, budget are
notconstraints).
Major Risks
Should be (3) three paragraphs. Should have a minimum of (3) three risks.What are some risks to the project and why?
Risk management matrix
The risk management matrix should be (1) one chart. The risk management matrix must be self-made and show the risk for your project. Should not be a copied and pasted matrix from textbook/article.
Change management process
Should be a minimum of (2) two paragraphs and be very detailed. 1. If changes must occur “who” must assess the changes first? 2. “Who” are the people involved in the changes within the organization? 3. “Who” are the people responsible for monitoring the change process?
Project RAID
Should be (1) one paragraph describing
each of the categories that applies to your project.The (4) four categories: Risks, Assumptions, Issues, and Dependencies. Apply them to your project and list “who” is responsible for each category and “why.”
Do not provide definitions for the categories.
Approval requirements
“Who” approves the different parts of the project? Should have “name” and “title.” Should be a minimum of (3) three people. Make the names up.
Project Manager This is YOU. Put your name here.
Sponsor designee
“Who” is the sponsor designee. “Who” is “financially” responsible for the success of the project? Should be a minimum of (1) one person. “Name” and “title.” Can also be a company.
———–
No references or citations for the assignment.
Do not include other categories in your paper. Points will be deducted for submitting sections not on the list above. Only include what is asked for in the paper.
A title page in APA 7 must be included and separate from your charter.
