Name: Yem Socheath

A tale of Two Projects: The Panama Canal

Student ID: 2B4059 and the Birth of Project Risk Management

1. Why project failed?

The Panama Canal Project was started in late 1800s responded by Ferdinand De Lesseps.
It failed no longer and became a popular lesson for project managers. In fact, the project
failed due to several reasons as mention below:
- Project Initial Identification: The ability of de Lesseps to initial identified project
feasibility. Unlike his previous project, to dig a canal for connecting from Atlantic to
Pacific was a very hug project.
- Poor planning and monitoring: Mr. de Lesseps could not plan very well regarding
budgeting, Cost estimation, communicating, work breakdown structures and schedule
estimation. The project is hug and required high technology.
- Lack of Human Resource: Not enough experts and high-tech implementation.
- Poor of Project Risk Management: risk identification was poor and the mitigation
regarding those risk was also poor. Most of risk due to nature disaster (raining flood),
people risk (diseases, skill and management).

2. What risks could have been avoided.

Exactly the Panama Canal Project seem impossible in that era because of technology
requirement. However, the project might run well, if Mr. de Lesseps could mitigate some
risk which could be avoided in that time. The following risks could be avoided and
mitigated.
- Technology requirement: It should be supported very careful from experts and ready
to use those technologies. Sometimes pre-training should be concern. One more, some
equipment should be diversified depending season or increase the quality.
- Raining disaster: Project manager could classify areas or worksite depending season
and weather. Sometimes delay work should be note in schedule. However, working
might flexible or shift the area depending raining.
- Health care: Long term project should be ready with internal doctor and emergency
treatment.
- Human Resource workforce can stand alone. It mean that standby workforce, part time
employees and recruitment processes should ready all the time. Lean organization
should be applied. That mean staffs should be able to work in multi skills.
- Schedule is the most important because it can effect to project budget and project
failure. Therefore, project manager should create an effective work breakdown
structure and work milestone linking to project schedule.