BJTC5543: Project Risk Management

Case Study: Anatomy Of a Failed Project: The First Panama Canal Project

Lecturer Name: Professor. Dr. Jafni Azhan Bin Ibrahim

Submission Date: 25 November 2017

Sharanya Ramasamy 822484

Sharmila Devi Subramaniam 822511

Shri Brindashini Thanapal 822512

Tirosha Govindasamy 822513

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1. List all the success criteria of the project

The Panama Canal project was not an infeasible project but however it was been
completed successfully by the project team.
The Suez Canal was completed and opened successfully in 1869 which was sponsored
and led by The Great Engineer from Paris, Ferdinand de Lesseps.
The Suez project was a huge financial success.

2. Identify the stakeholders and their desired outcomes involved in the project

Stakeholders Objectives/Outcomes Measurement

Engineers 1. To get fame as the great engineer 1. Awards received from the success the
success of the project/ increase their
market opportunities
2. Job Opportunities 2. Increase employment rate
3. A realistic canal concepts 'lock-dam' 3. No. of patented/design
4. Job satisfaction 4. Low turnover rate
5. Income Money
Investors 1. To complete the project within the 1. Cost & Time
(French government) budget and timeline
(Public Funds)
Government of
Columbia)

2. To gain revenue through % for 99 2. Money

years
Users 1. Shorten the distance 1. Time
2. Reduce Cost 2. Money
3. Safety 3. No of accidents
4. Achieve Safety due to convenience 4. Increase number of users
Community 1. Job opportunities 1. Number of new job created
2. Increase socio economic 2. GDP
Government 1. Railway construction problem 1. Alternative
2. Fore shadowed the canal efforts 2. Connectivity enhancement
3. Economic Growth 3. Increase revenue

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 Project Manager 1. To complete the project within the 1. Time completing within 12 years
(Ferdinand) budget and timeline
[Link] for completing mega project 2. No of recognition
3. Complete the project within budget 3. Cost
[Link] the project according to [Link] of defect
the technical specifications
[Link] 5. Expertise/ no of personnel combination

6. Expertise/good human resource

3. Risk Register Analysis

Potential Risk Description of the Impact Likelihood of Impact Severity Attitude/Action/Solution

Detected Occurrence
Mudslides - Causes damages on the High High Ask for recommendations
ongoing progress and expertise from Geologist
equipment, need to redo the Applicator a more
work. horizontal excavation.
- Time and Cost Impacts
Use of Explosives - Unpredictable and Medium High Approach expect in
uncontrolled explosions due to explosives, i.e. a Military
the high level of humidity, lack Contract;
onresearch,constant need in Control the environment
using it. before any explosion;
- Time and Cost Impacts Better prepare and equip
the workforce, i.e. suits.
Technical Challenges - Engineering challenges, Medium High Adopt an updated
including the system of Locks Technology;
(size), the creation of an Contract high qualified
artificial lake, the use electrical engineers;
power. Adopt an adequate Plan
- Quality and time Impacts and measurement system.
Earthquake - Unstable area, it happened Medium High Adapt the constructions,
during the French i.e. wood houses, and/or
Construction. basements to protect
- Time, Cost, Quality and people;
Benefits Impacts Earthquake Drills
High Occurrence of - Tropical weather, very humid High Medium Drainage;
Precipitations and very common rain. Protect the Equipment to
- Time, Cost, Quality and avoid major damages

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 Benefits Impacts

Possibility of a - Time, Cost and Benefits Low Medium Adapt an adequate system
Worker Strike Impacts of wages:Improve the
quality of living;
Keep the workers
motivation on.
Lack of Qualified - Time, Cost, Quality and Low Medium Decent incentives system;
Workforce Benefits Impacts An appealing and strategic
communication to attract
target workers
Bankruptcy - It occurs previously with the Low Medium Create a stable relationship
French. beyond the stakeholders;
- Time, Cost, Quality and Adopt an adequate
Benefits Impacts Planning and Control.
Possibility of Chief - The project will stop if the Low Medium Decent Remuneration,
Engineer issues chief engineer is no long Rewards and Benefits
present (sick, abandon the system;
project, death) Keep the motivation high.

- Time, Cost, Quality and

Benefits Impacts

4. SWOT Analysis

SWOT Analysis

Demographical and Natural Resources

Location and tropical climate Large reserves of mineral and

natural resources Panamanians protects their minorities Young

Strengths
population Infrastructure

Economic Development

Panama Canal expansionTransparency and strong commitment

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 to exchange tax infoNominal GDP to finance fiscal deficit

(2012: Growth 10,1 %)Efficient banking services.

Corruption due to past history of instability and institutional

crisis

Weak investor protection framework, complex tax regime,

poor contract enforcement

Lack of a central bank and currency

Weaknesses Fiscal paradise

Inequality

Slow development of transportation systems

Public projects in indigenous communities

Decrease of investment in agricultural sector

Quality of education

Inflation pressures

Large current account deficit

Social unrest, opposition of government policies

Threats
External debt

Competition of neighbor countries

Competition intentions of alternative cargo shipment methods.

Reinforce of governability through transparency laws and

electoral reforms
Opportunities
FDI / Capital expenditure on social projects:

-Vulnerable Population, Red de oportunidades, Beca

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 Universal & IFARHU, Padrino Empresario

FDI attraction through FTA and EU, CHINA Trade

Agreements

Education:

- Curricular transformation

- Increase expenditure on education

- Improvements in Science , Technology and Innovation