The Panama Canal is the greatest engineering structure that has been operated for about 100 years. However, the existence of constant modification, continuous maintenance, and enhancement of the Panama Canal has not changed its basic operation of two-lane system. The canal and creation of its revenue signify the single valuable asset in the economy of Panamanian. The Panama Canal Authority controls the asset with extraordinary care and maximizes the paramount practices in its planning and operation. The Panama Canal approaches revenue and marketing strategies. In some situations, it applies modelling and stochastic technique to improve future representation in financial forecasting. However, Panama Canal applies such techniques in an attempt to expand the program to estimate duration and cost but end up neutral. The Panama Canal expansion program arrives at the best decisions through applying guide schedule and cost mode.
The senior management of the Panama Canal Authority’s idea of recognizing significances of producing reliable and reasonable cost and schedule estimates enhances the development and expansion program. It is relevant to the work since the international engineering experts are simultaneously engaged. This promoted the investigation in the Authority of the engineering staff on training to estimate methodologies (Alarcon et al., 2011). The results of cost and schedule are relevant to my work on that; it is more refined and detailed than when it is be faced at the completion level of engineering designed. In addition, it is relevant to my work because the level of associated contingency and perceived can be lowered artificially. It can be used to arrive at the risk model through integrating estimating cost and schedule and combining together with the risk factors. The work of the Panama manager will be influenced through the application of traditional or typical ways of assessing the contingency. It is done by adding some factors onto the schedule and cost estimates. The Panama manager detailed estimate on the level of cost and schedule will be inversely affected by the factors because it is often applied as percentage-based. The Panama manager will be positively influenced because the Authority’s key consultancy and personnel from most areas will take part in workshops. It leads to discovering project risks and possible engineering responses and management thus providing important information to be used in the decision-making. The concepts of identifying the primary risks appear in the course readings. The focus is on those negative factors, which can affect the execution of expansion programs of the Panama Canal.
This investment requires the matching of the investment significance of related uncertainties in both the management process of industry leading risk and the assessment of state-of-the-art. The course reading and business experience are related in that both of them generate revenue, which represents an important asset in the economy of the Panama. It will enable the business-designed strategies to apply in arriving at the right revenue and market forecast. In addition, it is applied in the work by engaging in different approaches, which include modelling and stochastic techniques. It leads to arrive at the right representation of future expectation on finance (U.S. Department of Energy, 2003). It is applied in the workplace by utilizing and managing its revenue.
Could the Panama expansion program arrive at the best decision without applying guide schedule and cost model? How did the Panama understanding of the potential and probable impact of risks assist its authority to focus on the engineering and planning effort on the item? Which risks were likely to influence project schedule and cost?
In conclusion, the Panama expansion program recognized significances of producing reliable and reasonable cost and schedule estimates, which has boosted the development and expansion program. The use of the right guide schedule and cost model enabled the Panama expansion program to arrive at the best decision.