Millennium Dome Project

MILLENNIUM DOME PROJECT
Group 1 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 Project Closeout and Termination
Introduction
The Millennium 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: badly thought-out, badly executed, and leaving the government with the embarrassing question of what to 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 Office, the total cost of The Dome at the 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 million required, due to the shortfall in visitor numbers.
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
Chapters
1 Introduction: Why Project Management? 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
Introduction: Why Project Management

The Parameters of success in a project:
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TIME: 1997-2000
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Project Scheduling I
Project Scheduling II Critical Chain Project Scheduling Project Closeout and Termination
CLIENT ACCEPTANCE: 12 million visitors
COST: 750 million
PERFORMANCE: World-class dome
CHAPTER LIST
Chapters
Introduction: Why Project Management

The elements of the project were the following: Unique: It was at the dome that the national exhibition was to be held as part of the millennium celebrations.
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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.
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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.
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CHAPTER LIST
Chapters
Project Life Cycle
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CONCEPTUALIZATION 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.
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CHAPTER LIST
Chapters
Project Life Cycle

DEVELOPMENT 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 . EXECUTION 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.
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CHAPTER LIST
Chapters
Project Life Cycle

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.
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CHAPTER LIST
Chapters
The Organizational Context

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.
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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? The Organizational Context Project Selection and Portfolio Management Leadership and Project Manager
Chief Executive Site & Structure Transport Commercial Director Operations Director Production Director Executive Directors Executive Chairman
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Board of Directors
Non Executive Directors
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Scope Management Project Team Building, Conflict and Negotiation Risk Management Cost Estimation and Budgeting
Finance & Corporate Services Sponsorships Ticketing Greenwich content & events
Marketing & Communications Director
Accounting Officer
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Licence
Daily Operations
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Trade Travel
Challenger Director
Implementation Director
CHAPTER LIST
Chapters
Key Stakeholders
Chief NMEC Executive Officer National Audit Committee The Millennium Commission
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Accounting Officers
Board of Directors
Environment Groups
EXTERNAL INTERNAL STAKEHOLDERS STAKEHOLDERS
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National Lottery Fund Distribution Department
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Functional Managers Visitors Project Department of Managers Culture, Media and Sports
The Millennium Commission Governm ent, UK
CHAPTER LIST
Chapters
Project Selection & Portfolio Management

The basis for selection of this project for building the Dome was:
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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.
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CHAPTER LIST
Chapters
Leadership and Project Manager

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.
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CHAPTER LIST
Chapters
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):
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CHAPTER LIST
Chapters
Responsibility Matrix
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CHAPTER LIST
Chapters
Project Team Building

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.
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A few examples: Civil Engineer - WS Atkins Services Engineering - Buro Happold Consulting Engineers Acoustic Consultant - Sandy Brown Associates
CHAPTER LIST
Chapters
Conflict and Negotiation

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.
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CHAPTER LIST
Chapters
Risk Management
Risk 1 Consequence Score 0.8 Likelihood Score Medium 0.7 Impact Potential Score Serious 0.56 Schedule Risk High Overall Probability:
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Cost Estimate Risk
High
0.9
Medium 0.8
Serious
0.72
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Pf = (0.8 + 0.9 +High + 0.7 + 0.5 + 0.4 0.80.9 +0.4 +0.5 + 0.3 + Market Risk, volume 0.7 0.7 High Serious 0.56 + 0.1 + 0.1 + 0.8)/13 = 0.55 High Market Risk, price High 0.7 0.7 Serious 0.49
Political Risk Medium 0.5 Medium Low 0.4 0.2 Moderate Minor 0.2 0.08
OverallRisk Consequences: Technical Medium 0.4

Financing Risk High 0.9
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Cf = (0.7 + + 0.8 + 0.8 + 0.7 + 0.4 + 0.2 + 0.4 +0.4 +0.2 + Promotion Risk Medium 0.4 Medium 0.4 Moderate 0.16 0.3 + 0.1 + 0.2 + 0.1)/13 = 0.26
Technical Risk Medium 0.5 Low 0.2 Moderate 0.1 0.09 0.01 Low 0.3 Factor = Pf + Cf Low f) * 0.3 f) Minor (P (C Integrating Risk Low 0.1 0.55 + 0.26 0.55*0.26 Low 0.1 Minor = = Environmental Risk Low 0.1 0.67 Low 0.2 Minor High 0.8 Low 0.1 Minor
Medium 0.4
Serious
0.36
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10 Overall Risk Operating Risk 11
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0.02
0.08
13 Acts of God
CHAPTER LIST
Chapters
Risk Impact Matrix
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CHAPTER LIST
Chapters
THE RISKS 1 Construction (Schedule Risk)
WHAT HAPPENED IN PRACTICE
The Dome might not be completed on time.
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 there was limited opportunity for trial running.
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2 Cost Estimate Risk

Costs might exceed the May 1997 budget. Costs moved over the period May 1997 to September 2000. As at September 2000, the budget had increased by five per cent.
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3 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.
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CHAPTER LIST
Chapters
THE RISKS Sponsorship
WHAT HAPPENED IN PRACTICE
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Delays in finalizing contracts, and the unattractiveness of certain zones to sponsors, might result in a failure to secure anticipated levels of sponsorship. 7 Sale Proceeds
Buyers might not be found for the Dome, and an adequate selling price might not be achieved. 8 Political Risk
The total amount of sponsorship received (cash, 'value in kind' and 'budget enhancement') was below the original budget of 175 million
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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.
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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
Chapters
Cost Estimation and Budgeting

Cost Sheet
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Sponsorship income, compared with the Companys forecast
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Ticket sales income, compared with the Company's forecast
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Actual total and paying visitors compared with the Company's successive targets
CHAPTER LIST
Chapters
Project Scheduling
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CHAPTER LIST
Chapters
Gantt Chart
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CHAPTER LIST
Chapters
Network Diagram
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CHAPTER LIST
Chapters
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.
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WITHOUT CCPM The total days required to complete the project was 1128 days before applying CCPM.
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WITH CCPM The total days required to complete the project is 887 days after applying CCPM.
CHAPTER LIST
Chapters
Project Closeout and Termination

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

Body of the write up Write brief sentences or better just points
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Thank You!
By Group 1: Gurpreet Singh (23) Neha Ansal (35) & Soham Chowdhury (59)

Millennium Dome Project

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MILLENNIUM DOME PROJECT

Cost Estimation and Budgeting

Millennium Dome - Location

Introduction: Why Project Management

CLIENT ACCEPTANCE: 12 million visitors

COST: 750 million

PERFORMANCE: World-class dome

Introduction: Why Project Management

Project Life Cycle

Project Life Cycle

Project Life Cycle

The Organizational Context

Non Executive Directors

Marketing & Communications Director

EXTERNAL INTERNAL STAKEHOLDERS STAKEHOLDERS

National Lottery Fund Distribution Department

The Millennium Commission Governm ent, UK

Project Selection & Portfolio Management

Leadership and Project Manager

Project Team Building

Conflict and Negotiation

Cost Estimate Risk

OverallRisk Consequences: Technical Medium 0.4

10 Overall Risk Operating Risk 11

Risk Impact Matrix

THE RISKS 1 Construction (Schedule Risk)

WHAT HAPPENED IN PRACTICE

The Dome might not be completed on time.

2 Cost Estimate Risk

THE RISKS Sponsorship

WHAT HAPPENED IN PRACTICE

Cost Estimation and Budgeting

Sponsorship income, compared with the Companys forecast

Ticket sales income, compared with the Company's forecast

Critical Chain Project Scheduling

Project Closeout and Termination

Project Closeout and Termination

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