Answer Happy

You can make any assumptions you wish provided these are
reasonable, do not contradict the content of the case study and are
clearly written.
Case Study
Olkiluoto 3, a 1,600MW nuclear power plant, originally contracted
to be built by consortium
comprising Areva and Siemens for Teollisuuden Voima (TVO) at
Olkiluoto, Finland, is
nearing completion. The time schedule was pushed back several
months in late July and
again in late August, however, no new delays have come up now. The
final hot tests are
currently ongoing, and regular power production is expected to
commence in June 2022.
Originally targeted for commercial power generation in June 2009,
the power plant has been
subject to a substantial number of challenges. In March 2018 an
agreement was reached
between TVO and Areva regarding the overruns in project budget and
time schedule.
According to TVO, Areva agreed to compensate €450m assuming the
power plant was fully
operational by the end of 2019. If the plant was not fully
operational at that time, Areva will
compensate a further €400m. As part of the agreement, both
contractual parties agreed to
dispend any further judicial acts. It is unclear, whether Areva has
already compensated, or
will compensate the agreed €850m in full. Once completed, the 1,600
MW nuclear power
station will be one of the largest in the world. TVO has been
understandably disappointed
that the project is over 200% over the original budget and 13 years
behind the original time
schedule. The contract for building the Olkiluoto 3 power plant was
signed in 2003 for 3,000
M€, and construction began in 2005, targeting completion in June
2009. Due to numerous
challenges during the planning and construction phases, the target
date has been pushed
forward several times - now thirteen years in total. The delays
have pushed the total cost of
the unit to €9,000m ... €10,000m.
Following the harsh public critique on the project poor
performance, TVO has decided to re-
structure the project organisation and commissioned a consultant
project management
practice called Atomic Project Experts (APE) as external project
manager and lead
consultant to run the Olkiluoto 3 project on their behalf. Under
the terms of the commission,
APE is responsible for delivering the completed project on the new
agreed time, on new2
agreed cost and to the required performance standards. APE is
required to manage a
project team comprising a number of different organisations. Assume
you are a consultant
project manager employed by APE assigned to lead the team.
The main contractor will remain Areva. Their work agreement is
based on the original
contract signed back in 2003. Areva is responsible for the building
of the facility and for other
structures such as sub-stations and cooling system. The nuclear
reactor itself is designed
and installed by a nominated specialist engineering sub-contractor
called Nucletor. Areva
has also appointed three domestic sub-contractors to carry out
aspects of the construction
works. These domestic sub-contractors are called Diggers Ltd,
Builders Ltd and Plasters Ltd.
The control network and most of the control systems are designed by
a specialist consultant
called Command Controls.
All works are inspected and have to be approved by the Federal
Nuclear Authority (FNA) as
they are completed. Once the entire network is complete it is
connected to the TVO supply
grid by the distributor Finland National Grid (FNG), which is
government-owned. FNG is the
only body that can make connections from the existing TVO supply
grid to the new Olkiluoto
3 power facility.
Risk assessment and risk management is conducted on behalf of the
client by a specialist
consultant called Risk Assess and cost control services are
supplied by a specialist cost
consultant called Misers. These consultants are both appointed by
the client but are working
under your authority as lead consultant.
Specialist materials are supplied by a nominated supplier called
Industrial Sheathings Ltd.
TVO is anxious to maintain close control over the risk and cost of
the project even though
you have been appointed as external consultant project manager. TVO
has set up a highly
structured internal system to help control the project. You have
been directed to pass all
communications through an Interface Department of TVO. The
Interface Department is
responsible for managing and controlling all communications that
cross TVO's organisational
boundary. TVO has set up an internal Project Liaison Officer to act
as internal coordinator for
this project and for a number of similar projects that are running
at the moment. TVO has
also set up an internal Change Control section that is responsible
for making sure changes
are controlled and cost/time increases can be contained within the
overall time and budget
allowed for the project. There is also an internal Legal Services
Department that controls all
aspects of contracts and contract administration for this and other
projects that involve
external organisations.
Reference
Vaskimo J., 2021. Finland Project Management Roundup. PM World
Journal Vol. XI, Issue XI,
November. [online] Available at:
<https://pmworldlibrary.net/wp-content/u ... 1/pmwj111-

Nov2021-Vaskimo-Finland-Project-Management-Roundup-report.pdf>
[Accessed 1 December 2021].3
3. The project involves a number of different organisations that
together form the project
team. Using your understanding of project management concepts,
discuss and
suggest on behalf of APE, how to build a high performing project
team and achieve
cross-functional cooperation. Support your answer with examples and
assumptions in
the context of the case study.