Project Management in the Oil and Gas Industry

Table 7.12 Existing building system commissioning cost.
Building type
Commissioning 
cost (USD in 1995)
Annual savings 
(USD in 1995)
Payback cost 
(years)
Computer facilities/
office
24000
89758
0.3
High rise office
12745
8145
1.6
Medical institute
24768
65534
0.4
Retail
12800
8042
1.6

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284 
Project Management in the Oil and Gas Industry
Table 7.13, noting that the cost saving is about $12,168 for 60,000ft
2
of 
manufacturing facilities.
Quiz
1. Why is quality planned and not inspected?
• It reduces quality and is less expensive.
• It improves quality and is more expensive.
• It reduces quality and is more expensive.
• It improves quality and is less expensive.
2. What is meant by your product or service completely meets a custom-
er’s requirements?
• Quality is achieved.
• The cost of quality is high.
• The cost of quality is low.
• The customer pays the minimum price.
3. All of the following are part of quality control EXCEPT?
• Cost of quality
• Inspection
• Control 
charts
• Flowcharting
4. A project is in progress and the project manager is working with the 
quality assurance department to improve stakeholders’ confidence that 
the project will satisfy the quality standards. Which is the gain from 
this process?
• Quality 
problems
• Checklists
• Quality 
improvement
• Quality 
audits
Table 7.13 Annual energy and cost savings from commissioning existing 
building systems projects.
Building type
Energy savings
Cost savings (USD in 1995)
22000 ft2 office
130800 KWh
7736
110000 ft2 office
279000 KWh
12447
60000ft2 high-tech 
manufacturing facility
336000 KWh
12168

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The History of Graphene 285
5. While testing the strength of concrete poured on your project, you 
discover that over 35% of the concrete does not meet your company’s 
quality standards. You feel certain the concrete will function as it is and 
you don’t think the concrete needs to meet the quality level specified. 
What should you do?
• Change the quality standards to meet the level achieved.
• List in your reports that the concrete simply “meets our 
quality needs.”
• Ensure the remaining concrete meets the standard.
• Report the lesser quality level and try to find a solution.
6. A project manager says to a team member, “If you cannot complete this 
task according to the quality standards you set in place, I will remove 
you from the team that is going to Paris for the milestone party with the 
customer.” What form of power is the project manager is using?
• Reward 
power
• Formal 
power
• Penalty 
power
• Referent 
power

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287