In conclusion, the results proved that the operators of BA made a right decision to selecte LE project.
2.2 Project Manager
The next step is to find a good manager when the project is selected,. The functions of Project Manager is like a mini CEO, and the manager must clearly understand whether the project is suitable for the parent organization. Project managers must own some skills, such as: strong technical background, communication skills, good relationship with senior executives and so on (Meredith & Mantel Jr, 2009, p.108).
In this case, the company Mace was in charge of the LE project construction and management. The moment Mace took over responsibility for the project in August 1998, the deadline loomed only 14 months away from the point (2009).
In conclusion, learning from the information which was collected by research, it is a bright decision to choose Mace as the Project Managers. Mace is one of the UK’s leading project management companies, which was used to facing many complicated construction challenges. Consequently, it had enrich experience to solve all kinds of complicated projects. That is a key factor to ensure the LE project to success eventually.
- Conflicts Management
“Conflicts had been generated during the process of tendering”. And all stages of the project life cycle will appear conflicts, especially in the initial stage of project life cycle (Meredith & Mantel , 2009, p.161).
In LE project, different contractors speaking different languages from different parts of Europe would create language barrier during operations (Sadoc, 2005). As it was mentioned above, in this project, more than 1,700 people from different countries worked together. The big challenge this project would face is how to coordinate with the multi-national project teams. The culture difference would creat huge impat on the management. As the Project Manager, Mace adopted the following ways to address conflict: Firstly, setting a common goals. As mentioned above, the team faced both the technical challenges and the extremely time scale, they had to cope not only with a huge geographical dispersial of procurement but also with coordinating all of the linked technical demands. In order to ensure that everything was delivered in London at the right time and in the right condition, they must work on one goal (Meredith & Mantel Jr, 2009, p.169). Working on the project with the common goals and expections, which ensure to reduce and resolve the conflicts. Secondly, the authorities were certainty. Responsibilities of the contractors, suppliers or other funtional managers were defined unambiguous. The last one is to negotiate with the team members. By negotiating, the Project Manager Mace established a successful relationship with other team members.
In conclusion, due to the Project Managers Mace adopted the right method to resolve interpersonal conflict, reduce the culture difference impact, the team was united and highly-efficient. In addition, the cooperation yielded more benefits to the client and the programme was fulfilled at last.
- Organization Structure
The type of LE is a pure project organizational structure. According to above information, which was collected by the secondary research, the Project Managers Mace played an important role in this project and had the direct authority to control the project (Meredith & Mantel Jr, 2009, p.192).
It took a holistic approach to projects from its inception to completion. Moreover, every funtional departments reported to the Project Manager. Over 500 local people and overseas were employed by Mace. In order to control the project process better, all the related departments must report to the Mace. (The project organization see Figure 2)
Figure 1. The project organization (Mann, Thompson, Smits, 2001,p.60)
Base on the above analysis, LE is a large and one- time project. The pure project organizational structure is suitable for this project. Two supporting reasons are as follows: Firstly, the Project Manager had full authority and this centralized authorith can make for rapid decision making (Meredith & Mantel Jr, 2009, p.195). Secondly, people on this project, who came from different countries were concered about project, not their own functional unit. The team members could have holistic approach.
In conclusion, the above two factors were important to ensure the complicated project LE to be completed with high quality before the milionnium eve.
3. Implementation of strategies
3.1 Budgeting
The purpose to make a budget is to allocate the limited resources. In other words, the act of budgeting is to allocate the scarce resources to the various endeavors of an organization. (Meredith & Mantel, 2009, p.293). It is important in the entire process of management.
In this case, the type of budgeting method is “Top Down” Budgeting (Meredith & Mantel Jr, 2009, p.297). Learning from the collected information, the LE was a capital intensive project, which was supported by two international banks (Westdeutsche Landesbank and Sumitomo Bank). Project budget estimates were made having analysed the capital investment vis-à-vis breakeven point. The top managers estimate the overall project cost, then give to the lower-level managers, who are expected to continue the breakdown into budget estimates for the specific tasks and work packers (Meredith & Mantel Jr, 2009, p.297). The total budget in LE, originally was about £11 million, then up to £20 million.
3.2 Cost Estimations
The estimation of cost are important in the whole process of project Implementation (2000). The cost estimation must clarity especially for the complicated project that refered to a large number of aspects.
In LE project, the initial cost estimates came from £45 million rose to £75 million (2009).
Based on the above information, it clearly shows that the actual cost of LE had been over its cost estimations. The main reason was that the project was so huge and complicated. The technical complexity and scale of the LE lead to the difficulty in management. When a new project team was formed , which comprised Mace, the original architect, the Tussauds Group (selected by BA as the operator of the completed attraction), marine engineers, independent checking engineers and major component manufacturing contractors, majority of the original compromised engineering design was rejected, it must cost more to make a new design (Sadoc, 2005). Moreover, the cost of steel was increasing. All of these lead to the actual costs of LE over its cost estimations.
3.3 Scheduling
In order to arrange people and organisations to the project and explain which work packages should be performed in the given date, the schedule was usually used by the Project Manager. (Meredith & Mantel, 2009, p.333).
The project was established to celebrate the millunium and Prime Minister would open it, so it is a “design-time” project. However, the project was so huge and complication, which comprised the wheel structure, thirty-two passenger capsules, the boarding platform, associated river works and the landscaping of the adjacent Jubilee Gardens ( The specific time schedule sees Table 1).
Table 1: The duration of project (2000)
It was clearly to see according to the above schedule that it was very difficult to co-ordinate so many different processes and contractors within that timescale. In this situation, using the old manual methods of scheduling is almost impossible. Mace chose Asta Powerproject, a professional project management tool that is well-proven in the construction industry (2006). By using Asta Powerproject, LE project schedule could show the actual dates for every milestone of the . This schedule illustrated dates for every major element and created a guide function for the project.
In conclusion, Mace chose Asta Powerproject as the new methods of scheduling, it helped to complete the complicated project in the fixed time.
3.4 Resource Allocation
“Resource allocation is the best economic and productive method to allocate the resources for the project” (Meredith & Mantel, 2009, p.383). The resource includes equipment, person, tool, capital, labor and service, beside that, time is a kind of important resource.
LE is one of the most imaginative projects ever seen. It must refer to many types of labor, specific facilities, capital and time. In other words , there should involve a great number of assets.
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The capital allocation: In this case, the final cost was approx 75 million pounds. According to the collected information, the capital had been mainly allocated into four main aspects, which include designing, technology, construction and controlling (Wang & Mann, 2003, p.5).
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The human allocation: There were more than 1,700 people coming different countries in this project and, they were mainly divided into four departments: Finance - Westdeutsche Landesbank and Sumitomo Bank; Humans - professionally skilled engineers and management staff for design and construction; Technology and material - design and technical support from specialists (Poma and Hollandia); Contractors/Suppliers- The European specialists were contracted for the project design and technical support (Wang & Mann, 2003, p.7-8)..
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Social Resources : This project was highly supported by media and mass spectators (local and international). Additionally, it was innovative and technically complex creating anxiety among potential customers who were reasonably supportive during its operations (2000).
In conclusion, it can be clearly seen that effective resource allocation is the key factor to ensure such huge and complicated project to success. Without the reasonable resource allocation, it could not be done within the planed time.
3.5 Monitoring
The basic action to achieve the evaluation and controlling in the process of project management is Monitoring (Meredith & Mantel, 2009, p.435). It is a very important part in project managemen. In terms of project management, the bojective of monitoring was to make the management team to understand what was happening at each stage and to make sure this matched what was expected to happen so that it could take effective action (Wang & Mann, 2003, p.3).
It can be seen in Londod Eye’s monitoring system, there were five major departments (Design, construction, engineer, Finance, controlling), each departments had different objectives, and each of them had an obligation to collect, record and report the specific information to its senior office, which was then evaluated and output information and reporting to top office. Moveover, Project leaders would hold meetings to get more information in the process of implementation. For example: Lifting the wheel into position had lasted for 16 hours, which would delay the completion. After the incident, it was decided to hold an emergency meeting to find ways to resolve this problems by making an immediate investigation (2007).
In conclusion, the LE monitoring system is effective , which is one of the another key factors to ensure success.
3.6 Information system
The major function of information system is to monitor many types of information effectively (Parrish, 2009).
Firstly, in LE project, Fairfield Control Systems (Li, 2000, p.2) was used to bost position of the boarding platform and also controls the operation of the passenger boarding gates (see Figure 3)
Figure3: Control Network Topology - BA Londoneye (C) 2000
(Li, 2000, p.2)
Secondly, computerised control system was used in this project. Such as: in the process of lifting phase, To ensure accurate completion of tasks, an integrated surveillance system was installated. If there was something wrong, the construction team could immediaely take remedial measures (2006).
Thirdly, the designing and construction of the Cables Tension Variations was to measure and monitor the tension of the spoke cables of the wheel originates (Mann, Thompson, Smits, 2001,p.64). With the electric monitoring system, all the electric cables were disconnected from the hub and the connection through GSM mobile phone was activated. It was possible to read and measure all the effects and the evolution of the pre-stressing on all the spoke cables. The measurements were very useful in all the activities concerning the adjusting of each cable pre-tension. (see Figure 4)
Figure 4:Arrangement of electric cables from pivots to inside the hub ( Mann, Thompson, Smits, 2001, p.65)
Finally, electric system was used to control climate. The glass capsules with 32 hi-tech can provide a 360° view for their occupants. Each contains two purpose built air conditioning units that provide cooling, de-humidification and heating. Because it is so sophisticated and highly intelligent with in-built computer controls and sensors that automatically control the climate inside. when outside conditions change, it would reschedule the parameters (Williams, 2010). If the internal air is drawn in from under the bench in each capsule, mixed with fresh air it returns to the air conditioning unit and re-circulated back into the capsule.
In conclusion, the information system in LE project was so highly effective that helped LE project achieved full goals in such short time.
3.7 Project control
Project control is the critical step of implementation strategy (Parrish, 2009); it is the execution of all measuring and evaluating. Control is focused on three elements of a project.: performance, cost and time. Analysizing form the information, in general speaking, LE control successfully.
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QUALTIY /SAFETY (rating = 5): LE was a high risk project form the inception to completion. Hence quality was measured in terms of safety. Safety was in the first palce throughout the operations. Projections of 2.2 million customers in the first year of operation prompted confirmation to quality/safety (Wang & Mann 2003, p6).
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SPEED (rating = 4): As mentioned earlier, LE was a “design- time” project. it was full of political pressure. In order to complet e this huge and comlicated project in the fixed time, BA had decided to cut off some ‘non- necessary’ task, such as it shortened the height about 45 feets,by which successfully reduced the mission’s time. Fortunately, it only took 16 months to complete this project with high safety (Wang & Mann 2003, p9).
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COST (rating =3): Although the actual cost was over the budget, the Project Manager had not done a good job on cost control, but in hierarchy of importance, cost was less important than safety and Speed (2008).
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DEPENDABILITY (rating = 4): LE was reliable in terms of timely delivery of project. The team involved was reliable in terms of timely material supply on site (2008).
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FLEXIBILITY (rating = 3.5): LE was moderately flexible in its operations (changes in design and delay in operations). However, the project was not well equipped against contingencies as there was no plan B (alternate plan) ( 2008).
In couclusion, LE was a successful project under the effectively controlling , and it brought huge economic benefits to London. As it is mentioned above, the LE had become the most popular tourist attraction in the world, it has made more than 300 million pounds of revenue from its open to public till now.
4. Project termination strategy
The last stage during the life cycle of any project is Termination , this phase can effectively affect the results and vitality of the project after implementing all the previous stages (Meredith & Mantel, 2009, p.551). Project termination is so sophisticated and all the project managers want to avoid the problems which could emerge by termination. Operating team and project manager would evaluate the project from performance, cost and time before its terminating, then the Project Manager would choose the most appropriate termination strategy.
Based on the information which was collected by the secondary research, the termination strategy of LE is termination by integration.
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Personnel: in this case, more than 1,700 people in five different countries worked together. After the project quits, parts of them turn to another project.
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Accounting/Finance: LE was supported by two international banks (Westdeutsche Landesbank and Sumitomo Bank). The totally costs were £75 million. Since the Prime Minister opened it, the project accounting had been closed and audited. Morover all the project property and equipments had been distributed according to the contract.
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Information System/Sofewtware: The new system had been thoroughly tested. LE was test-run successfully for 490 hours and achieved quality and safety objectives (Wang & Mann 2003, p6).
In conclusion, based on the above facts, It stopped because of success. Consequently, the type of the LE project was finished by integration.
5. Findings
After the LE opening, London tourist market economic increases by 10%, also promotes the employment of about 1 million people in London travel industry. Its success sets off a Ferris wheel global competition, Orlando, Berlin, Germany, United Arab Emirates city of Dubai and Singapore, followed by all that build giant Ferris wheel. However, not every project is like the "London Eye" as the success, majority of the similar projects was "aborted" due to insufficient funding, or some were completed in a year-round loss. Based on the above analysis, the key success of LE project is that its technological integration with project management. LE project strategy consists of four phases and milestones set in each phase, which ensured it to success at last.
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Design phase. Designing the wheel to withstand high winds and dampen any natural-frequency resonance by use of technology and engineering was allocated to European specialists to enable LE to reap benefits of specialisation and economies of scale ( Williams, E 2010).
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Integration phase. “Just-In-Time “(JIT ) system was implemented to signal the appropriate specifications of materials at the right time to facilitate organising and assembly of wheel parts on site most effectively (Wang & Mann 2003, p10).
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Testing phase. The testing phase examines the quality and dependability of the project. LE was test-run successfully for 490 hours, but faced a technical challenge in the last 10 hours of its safety test-run. LE adopted the strategy of involving the media to gain their support in prioritising quality and safety over time as their objective (Wang & Mann 2003, p9). .
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Delivery Phase. LE was completed safely and successfully and launched in February 2000 though not as per the predefined strategy but was quite close to the original plan (2000).
6. Conclusion
Based on the above findings, The “LE” project management had been analysed mainly in the following aspects: Firstly, project initiation strategy, which includes the project selection, project manager, conflicts management and organization structure. Secondly, project implementation,which includes budgeting, cost estimations, scheduling, resource allocation, monitoring, information system and project controlling. Thirdly, is project termination strategy.
From all above, it can be seen that although some influenced the project, in general speaking, LE was a successful project.
Firstly, its objectives have fully achieved. LE had done an excellent job on performance, cost and time.
Secondly, The Project Manager and operating team had played an important role in the process of carrying out the project. In addition to that, using the successful project management strategies helped the project to solve conflicts, effectively allocating the scarce resource and ensured the quality of the project.
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