EPC projects face many challenges to stay in the competitive world despite of the efforts made towards compressing activities by phase overlapping, in order to reduce time scale and to obtain better EPC projects. These project challenges lead to cost overrun and schedule delay.
But what are the specific factors and problems in EPC Projects; and the effective Project Management (PM) practices especially on petrochemical and oil and gas EPC projects in Thailand?
Mr. Raman Awale made a case study on “Problems and Practices in EPC Project Management: A Case Study on Petrochemical, Oil and Gas EPC Projects in Thailand”. His study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment; lack of EPC contractor’s experience, lack or poor coordination and communication between Client, contractor and suppliers resulting to late approvals; poor planning and controlling; lack of top management commitment and unrealistic project scheduling.
His full abstract is copied and posted here.
ABSTRACT
EPC (Engineering, Procurement and Construction) projects are highly schedule driven where phases are overlapped to complete the project as early as possible. Moreover, these EPC projects are massive, utilize high skill and well train employee, acquires complex and complicated methodology/technology, needs fast information flow between different phases and close collaboration of multidiscipline as well. EPC projects are facing serious problems like crew idleness, rework and management dilemma which lead to cost overrun and schedule delay. Hence, this study aims to explore effective project management practices and problems faced in EPC projects especially on petrochemical and oil and gas EPC projects in Thailand, such that necessary proactive planning can be performed before to conduct such project effectively.
Methodology consists of three steps - pilot survey, interview approach and case study approach. Interview Approach (adjusted Grounded Theory Approach) is purposed to find out the significant delay and success factors together with effective management practices from various factors collected from literature review and pilot survey. Later, case study approach is used to validate the information gathered previously and to understand the relation and consequences of each factor in real situation. The respondent and interviewee were chief civil engineer, deputy chief engineer, director, project managers, construction manager, project engineers, process engineer, vice presidents, (Professional Experts) etc from 15 different EPC companies (9 Client companies and 6 Contractor companies).
The study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment such as material shortage, procurement delay, or late delivery on site. Besides, delay in placing purchase order, design changes, lack of EPC contractor’s experience, late approvals, vendor information coming in late and further most due to the lack of coordination between Client, contractor and suppliers regarding exchange of information are other factors contributing cost overrun and schedule delay.
In addition, poor planning and controlling, lack of top management commitment, unrealistic project scheduling and poor coordination and communication are poor project management practices explored. However, subcontractor management and control mechanism, lesson learnt practice, involvement of construction and operational personnel during conceptual phase are success project management practice found. Furthermore, interface management and control, integrated team management, real time reaction, dispute management, risk management, stakeholder management, continuous and dynamic detail planning and monitoring during execution and being proactive to issues, carrots and sticks approach (incentive criteria), clear roles and responsibilities, etc are also the big concerns in terms of project management practice regarding controlling cost overrun and schedule delay.
The findings from this study can be helpful to EPC contractors, owners, investors, project managers, construction managers, engineers and other construction stakeholders to understand the major factors, causes and problems related to phase overlapping of EPC process. This will guide them in developing and adopting necessary effective and efficient project management practice to conduct EPC projects on cost, on schedule with good quality providing clients satisfaction and safety measures. This research can be viewed as a lesson learned approach.
Keywords: EPC Projects, Phase Overlap, Delay and Success Factors, Project Management Practice, Long Lead Items, Scope Changes, Lesson Learned
Wednesday, 17 June 2009
Saturday, 13 June 2009
“How does infrastructure relate to national development?”
Global infrastructure development clearly represents the world synchronization and globalization. Infrastructures play a major role to facilitate country’s logistic, communication and accesses to energy as an important part of national development.
Based on the IMD World Competitiveness Yearbook (2008) report, Thailand has climbed-up the global competitiveness ranking from thirty-third to twenty-seventh at the end of 2007. Thailand’s infrastructure ranking supported the fact that the development of infrastructure directly affect to national competitiveness and that the origin of each fast growing country is rooted from its well-managed infrastructure.
Mr. Kantanat Chaipermsak had just defended his case study on “Megaproject Development Relationships Among Stakeholders”. He concluded that infrastructures made their contributions to economic growth and poverty reduction. It is also vital to national development and affect to the national competitiveness. It has been proven that the mechanism of each fast growing country was running by the well-managed infrastructure since it supports country’s logistic, communication and accesses to energy.
This is his abstract.
ABSTRACT
Availability and efficiency of infrastructure contribute to economic growth and poverty reduction while the absence of adequate infrastructure services is one of the main problems that hinder the effort of development. In most developing countries, the demand of service infrastructures rising while existing infrastructures ranges of services are still far too scant. The problem might come from their readiness on such a big investment on infrastructure development. The potential megaproject development mechanism should be created in order to get people prepared and react firmly when the opportunity is coming. This research aims to find out how the megaproject development mechanism works.
The research has been conducted under the unique single-case study basis. The research began with factors identification in order to develop the megaproject development model. After the model has completed, Thai Landbridge megaproject has been selected to be analyzed. Data collection was performed by a data observing process in one of the Landbridge conceptual meeting. Data analysis has been conducted by using explanation building method in which all the observed information and important evidences have been revealed and explained.
Four key stakeholders’ activities have been analyzed. It was found that, most of the time, government and infrastructure investor always play key roles on the Landbridge project development mechanism while the business investors’ activities are mostly based on the key trade-related or commercial activities. By voluntarily involved in some part of the megaproject mechanism process, the communities had received their huge benefits as well.
Based on the IMD World Competitiveness Yearbook (2008) report, Thailand has climbed-up the global competitiveness ranking from thirty-third to twenty-seventh at the end of 2007. Thailand’s infrastructure ranking supported the fact that the development of infrastructure directly affect to national competitiveness and that the origin of each fast growing country is rooted from its well-managed infrastructure.
Mr. Kantanat Chaipermsak had just defended his case study on “Megaproject Development Relationships Among Stakeholders”. He concluded that infrastructures made their contributions to economic growth and poverty reduction. It is also vital to national development and affect to the national competitiveness. It has been proven that the mechanism of each fast growing country was running by the well-managed infrastructure since it supports country’s logistic, communication and accesses to energy.
This is his abstract.
ABSTRACT
Availability and efficiency of infrastructure contribute to economic growth and poverty reduction while the absence of adequate infrastructure services is one of the main problems that hinder the effort of development. In most developing countries, the demand of service infrastructures rising while existing infrastructures ranges of services are still far too scant. The problem might come from their readiness on such a big investment on infrastructure development. The potential megaproject development mechanism should be created in order to get people prepared and react firmly when the opportunity is coming. This research aims to find out how the megaproject development mechanism works.
The research has been conducted under the unique single-case study basis. The research began with factors identification in order to develop the megaproject development model. After the model has completed, Thai Landbridge megaproject has been selected to be analyzed. Data collection was performed by a data observing process in one of the Landbridge conceptual meeting. Data analysis has been conducted by using explanation building method in which all the observed information and important evidences have been revealed and explained.
Four key stakeholders’ activities have been analyzed. It was found that, most of the time, government and infrastructure investor always play key roles on the Landbridge project development mechanism while the business investors’ activities are mostly based on the key trade-related or commercial activities. By voluntarily involved in some part of the megaproject mechanism process, the communities had received their huge benefits as well.
Friday, 12 June 2009
How to Manage the Thailand’s Best Oil Refinery? Find out from Mr. Chalermchai Udomranu
Mr. Chalermchai Udomranu is a Vice President for Refining Project of the Bangchak Petroleum Public Company Limited in Thailand. He has more than 20 years experience in Bangchak’s oil refinery and accomplished a lot of projects.
To have knowledge of some techniques, around forty (40) students under the Professional Program Management program will be participating in his lecture in “Applied Project Management in Oil Refinery Project” which is scheduled from 24-26 July 2009 at Vung Tau City.
Mr. Chalermchai Udomranu’s Concise Background
Education
- Masters in Business Administration - Thammasat University, Bangkok (1993)
- Bachelor in Engineering (Electrical Engineering) - Chulalongkorn University, Bangkok (1982)
- Successfully enrolled in the following Refinery Improvement Projects,
- Plant 3 Restructuring Project
- Plant 2 Modification Project
- Gas Oil Hydrotreating Project
- Reformer Modification Project
- Sulfur Plant Project
Work Experience
- Vice President – Refining Project (Product Quality Improvement Project, PQIP) (2005-present)
- Senior Manager – Refining Project (2003-2004)
- Senior Manager – Technical Service Division (2002)
- Senior Manager – Maintenance Division (2001)
- Maintenance Division Manager (1997-2000)
- Engineering Division Manager (1994-1996)
- Electrical and Instrument Section Head (1993)
- Senior Project Engineer (1990-1992)
- Project Engineer (1985-1989)
To have knowledge of some techniques, around forty (40) students under the Professional Program Management program will be participating in his lecture in “Applied Project Management in Oil Refinery Project” which is scheduled from 24-26 July 2009 at Vung Tau City.
Mr. Chalermchai Udomranu’s Concise Background
Education
- Masters in Business Administration - Thammasat University, Bangkok (1993)
- Bachelor in Engineering (Electrical Engineering) - Chulalongkorn University, Bangkok (1982)
- Successfully enrolled in the following Refinery Improvement Projects,
- Plant 3 Restructuring Project
- Plant 2 Modification Project
- Gas Oil Hydrotreating Project
- Reformer Modification Project
- Sulfur Plant Project
Work Experience
- Vice President – Refining Project (Product Quality Improvement Project, PQIP) (2005-present)
- Senior Manager – Refining Project (2003-2004)
- Senior Manager – Technical Service Division (2002)
- Senior Manager – Maintenance Division (2001)
- Maintenance Division Manager (1997-2000)
- Engineering Division Manager (1994-1996)
- Electrical and Instrument Section Head (1993)
- Senior Project Engineer (1990-1992)
- Project Engineer (1985-1989)
Prof. Chritian Brockmann, CIB Helsinki Awardee, will give Lecture at Professional Masters in Project Management Program in Ho Chi Minh City, Vietnam
Prof. Dr. Christian Brockmann, who is an awardee, academician and researcher, will give a 3-day lecture (in practical aspect) in “Applied Project Management in Highway Project” from 26-28 June 2009 at Ho Chi Minh City.
Prof. Dr. Brockmann at present is a Professor in the University of Applied Sciences - Bremen, Germany and Stanford University. He teaches following courses:
- Introduction to Project Management
- Estimating / Accounting in Construction
- Organization in Construction
- Project Planning
- Construction Technology
- Construction Economics
- Introduction to Ecological Economics; and
- Research Methodology
Before he joined the universities, he was one of the top highway project managers. He is involved in many highway project including the Bangna Trad Expressway.
Christian will teach Professional Masters in Project Management (MPM) students in HCM. He will share his years of experience with MPM students.
Prof. Dr. Brockmann at present is a Professor in the University of Applied Sciences - Bremen, Germany and Stanford University. He teaches following courses:
- Introduction to Project Management
- Estimating / Accounting in Construction
- Organization in Construction
- Project Planning
- Construction Technology
- Construction Economics
- Introduction to Ecological Economics; and
- Research Methodology
Before he joined the universities, he was one of the top highway project managers. He is involved in many highway project including the Bangna Trad Expressway.
Christian will teach Professional Masters in Project Management (MPM) students in HCM. He will share his years of experience with MPM students.
Thursday, 11 June 2009
Benchmarking for Track Mechanized Maintenance System
Due to high fuel costs, commuters now a days prefer the railway mode of transit - in bringing them to work place and back to their homes.
But how these railway systems, which are usually owned and operated by the government, manage and maintain to provide the society and industry a dependable form of transportation?
Mr. Werayutdh Chuenchan prepared a case study which is entitled “Benchmarking for Track Mechanized Maintenance System: A case study of the State Railway of Thailand”.
This study is focused on the on-track mechanized maintenance in the SRT; identifying the advantages and disadvantages of general characteristics of railway contexts; the factors that affecting to time, cost, quality, and safety management of the on-track mechanized maintenance in the SRT; and applying the benchmarking concept to SRT track mechanized maintenance management.
He concluded that, in order to achieve the stated objectives, the understanding of general characteristics of railway contexts, on-track mechanized maintenance system and maintenance management concept are required. Then the principal of benchmarking is applied in finding the best practice of on-track maintenance management among the sections.
This is his abstract.
ABSTRACT
Presently, the State Railway of Thailand (SRT) faces a vast competition from the other transportation mode. If it is to survive as a viable mode it must considerably improve service quality and economic efficiency. The effectiveness and efficiency of railway maintenance system directly affects to railway service and its economy. To maintain a good performance of railway maintenance, the good management of track mechanized maintenance is required.
To apply the benchmarking methodology in order to find out the best practice of track mechanized maintenance, is a very effective tool that can assist the management in their pursuits of continuous improvement of their operations. Planning and executing consideration of track mechanized maintenance chief is one of measurement. Besides, working process management and working performance are also considered.
The results from the study show that quality consideration is the most significant for planning. Then safety, time, and cost are considered respectively. Once it executes the plan, the safety of their work is the most important. During working process, the supporting and cooperation from outside colleagues are required. The factors that affect to the cost performance of track mechanized maintenance section are labors cost, fuel cost, materials cost, and parts cost. The most affected factor is labor cost. The one, who has good performance in cost and time management, also gives high significant to time and cost planning. In other word, it is difficult to compare the working performance in term of quality if who is the best. Because of there are external factors that need to be considered such as the general characteristics of the railway contexts and collaboration of external colleagues.
Keywords; best practice, benchmarking, railway maintenance, track mechanized maintenance, working process, working performance
But how these railway systems, which are usually owned and operated by the government, manage and maintain to provide the society and industry a dependable form of transportation?
Mr. Werayutdh Chuenchan prepared a case study which is entitled “Benchmarking for Track Mechanized Maintenance System: A case study of the State Railway of Thailand”.
This study is focused on the on-track mechanized maintenance in the SRT; identifying the advantages and disadvantages of general characteristics of railway contexts; the factors that affecting to time, cost, quality, and safety management of the on-track mechanized maintenance in the SRT; and applying the benchmarking concept to SRT track mechanized maintenance management.
He concluded that, in order to achieve the stated objectives, the understanding of general characteristics of railway contexts, on-track mechanized maintenance system and maintenance management concept are required. Then the principal of benchmarking is applied in finding the best practice of on-track maintenance management among the sections.
This is his abstract.
ABSTRACT
Presently, the State Railway of Thailand (SRT) faces a vast competition from the other transportation mode. If it is to survive as a viable mode it must considerably improve service quality and economic efficiency. The effectiveness and efficiency of railway maintenance system directly affects to railway service and its economy. To maintain a good performance of railway maintenance, the good management of track mechanized maintenance is required.
To apply the benchmarking methodology in order to find out the best practice of track mechanized maintenance, is a very effective tool that can assist the management in their pursuits of continuous improvement of their operations. Planning and executing consideration of track mechanized maintenance chief is one of measurement. Besides, working process management and working performance are also considered.
The results from the study show that quality consideration is the most significant for planning. Then safety, time, and cost are considered respectively. Once it executes the plan, the safety of their work is the most important. During working process, the supporting and cooperation from outside colleagues are required. The factors that affect to the cost performance of track mechanized maintenance section are labors cost, fuel cost, materials cost, and parts cost. The most affected factor is labor cost. The one, who has good performance in cost and time management, also gives high significant to time and cost planning. In other word, it is difficult to compare the working performance in term of quality if who is the best. Because of there are external factors that need to be considered such as the general characteristics of the railway contexts and collaboration of external colleagues.
Keywords; best practice, benchmarking, railway maintenance, track mechanized maintenance, working process, working performance
Tuesday, 9 June 2009
List of New Graduates (May 2009)
Construction, Engineering and Infrastructure Management
No. * Name * Country * Degree
1 . Kedsuda Limsila , Thailand - D. Eng'g
2 . Raman Awale , Nepal - M. Eng'g
3 . Pichaya Bhanubhak , Thailand - M. Eng'g
4 . Dam Thanh Binh , Vietnam - M. Eng'g
5 . Kantanat Chaipermsak , Thailand - M. Eng'g
6 . Werayutdh Chuenchana , Thailand - M. Eng'g
7 . Tran Viet Dung , Vietnam - M. Eng'g
8 . Aung Myo Hein , Myanmar - M. Eng'g
9 . Panwimon Jornjaran , Thailand - M. Eng'g
10 . Kriangsak Kiatkittikorn , Thailand - M. Eng'g
11 . Ahsen Maqsoom , Pakistan - M. Eng'g
12 . Swe Zin Myint , Myanmar - M. Eng'g
13 . Nguyen Viet Nhan , Vietnam - M. Eng'g
14 . Tran Duc Nhat , Vietnam - M. Eng'g
15 . Surapong Panja , Thailand - M. Eng'g
16 . Rahongsree Prayongrut , Thailand - M. Eng'g
17 . Thotsaphol Rattananapalai, Thailand - M. Eng'g
18 . Htet Htet Shein , Myanmar - M. Eng'g
19 . Korakade Thamphongsri , Thailand - M. Eng'g
20 . Piyada Thanarojsakul , Thailand - M. Eng'g
21 . Piyachat Thaveelert , Thailand - M. Eng'g
22 . Pham Vuong Trung , Vietnam - M. Eng'g
23 . Le Quang Tuan , Vietnam - M. Eng'g
Project Management in Construction
1 . Ngo Duc Binh , Vietnam - Professional Master
No. * Name * Country * Degree
1 . Kedsuda Limsila , Thailand - D. Eng'g
2 . Raman Awale , Nepal - M. Eng'g
3 . Pichaya Bhanubhak , Thailand - M. Eng'g
4 . Dam Thanh Binh , Vietnam - M. Eng'g
5 . Kantanat Chaipermsak , Thailand - M. Eng'g
6 . Werayutdh Chuenchana , Thailand - M. Eng'g
7 . Tran Viet Dung , Vietnam - M. Eng'g
8 . Aung Myo Hein , Myanmar - M. Eng'g
9 . Panwimon Jornjaran , Thailand - M. Eng'g
10 . Kriangsak Kiatkittikorn , Thailand - M. Eng'g
11 . Ahsen Maqsoom , Pakistan - M. Eng'g
12 . Swe Zin Myint , Myanmar - M. Eng'g
13 . Nguyen Viet Nhan , Vietnam - M. Eng'g
14 . Tran Duc Nhat , Vietnam - M. Eng'g
15 . Surapong Panja , Thailand - M. Eng'g
16 . Rahongsree Prayongrut , Thailand - M. Eng'g
17 . Thotsaphol Rattananapalai, Thailand - M. Eng'g
18 . Htet Htet Shein , Myanmar - M. Eng'g
19 . Korakade Thamphongsri , Thailand - M. Eng'g
20 . Piyada Thanarojsakul , Thailand - M. Eng'g
21 . Piyachat Thaveelert , Thailand - M. Eng'g
22 . Pham Vuong Trung , Vietnam - M. Eng'g
23 . Le Quang Tuan , Vietnam - M. Eng'g
Project Management in Construction
1 . Ngo Duc Binh , Vietnam - Professional Master
Thursday, 25 December 2008
Professional Master in Project Management Specialized in Construction Graduates (December 2008)
Thirty-one students received their Diploma for the Professional Master in Project Management last December 2008. Nine of them are from Ho Chi Minh city and the other twenty-one are from Vung Tau city. Their complete names are listed below.
No. : ID Number : Name : Field
1 . 106549 : Mr. Bui Van Bao , MPM-HCM
2 . 106550 : Mr. Lu Dinh Vu , MPM-HCM
3 . 106551 : Mr. Nguyen Dang Thong Nhat , MPM-HCM
4 . 106552 : Mr. Chu Bien Cuong , MPM-HCM
5 . 106553 : Mr. Nguyen Le Hoai Tam , MPM-HCM
6 . 106554 : Ms. Mai Do Thuy Dung , MPM-HCM
7 . 106709 : Mr. Mai Phong Phu , MPM-HCM
8 . 106970 : Mr. Vo Hoang Phuong , MPM-HCM
9 . 106634 : Mr. Bui Quang Luong , MPM-HCM
10 . 106584 : Mr. Ngo Duc Binh , MPM-VT
11 . 106585 : Mr. Nguyen Khoa , MPM-VT
12 . 106586 : Mr. Nguyen Anh Dao , MPM-VT
13 . 106587 : Mr. Nguyen Van Thanh , MPM-VT
14 . 106588 : Mr. Nguyen Tan Hoang , MPM-VT
15 . 106589 : Mr. Nguyen Van Thang , MPM-VT
16 . 106590 : Mr. Tran Duc Hanh , MPM-VT
17 . 106593 : Mr. Dao Manh Tuong , MPM-VT
18 . 106594 : Mr. Le Viet Hoai , MPM-VT
19 . 106595 : Mr. Dang Huu Trinh , MPM-VT
20 . 106596 : Mr. Nguyen Quang Hung , MPM-VT
21 . 106597 : Mr. Do Hong Hai , MPM-VT
22 . 106598 : Mr. Phan Minh Nhut , MPM-VT
23 . 106599 : Mr. Dang The Phuong , MPM-VT
24 . 106600 : Mr. Nguyen Manh Hung , MPM-VT
25 . 106601 : Mr. Vu Van Dao , MPM-VT
26 . 106559 : Mr. Nguyen Quoc Hanh , MPM-VT
27 . 106583 : Mr. Dang Dinh Lam , MPM-VT
28 . 106591 : Mr. Nguyen Hoang Loc , MPM-VT
29 . 106625 : Mr. Khuong Minh Dat , MPM-VT
30 . 106592 : Mr. Nguyen Van Diep , MPM-VT
31 . 106582 : Mr. Pham Van Tuan , MPM-VT
No. : ID Number : Name : Field
1 . 106549 : Mr. Bui Van Bao , MPM-HCM
2 . 106550 : Mr. Lu Dinh Vu , MPM-HCM
3 . 106551 : Mr. Nguyen Dang Thong Nhat , MPM-HCM
4 . 106552 : Mr. Chu Bien Cuong , MPM-HCM
5 . 106553 : Mr. Nguyen Le Hoai Tam , MPM-HCM
6 . 106554 : Ms. Mai Do Thuy Dung , MPM-HCM
7 . 106709 : Mr. Mai Phong Phu , MPM-HCM
8 . 106970 : Mr. Vo Hoang Phuong , MPM-HCM
9 . 106634 : Mr. Bui Quang Luong , MPM-HCM
10 . 106584 : Mr. Ngo Duc Binh , MPM-VT
11 . 106585 : Mr. Nguyen Khoa , MPM-VT
12 . 106586 : Mr. Nguyen Anh Dao , MPM-VT
13 . 106587 : Mr. Nguyen Van Thanh , MPM-VT
14 . 106588 : Mr. Nguyen Tan Hoang , MPM-VT
15 . 106589 : Mr. Nguyen Van Thang , MPM-VT
16 . 106590 : Mr. Tran Duc Hanh , MPM-VT
17 . 106593 : Mr. Dao Manh Tuong , MPM-VT
18 . 106594 : Mr. Le Viet Hoai , MPM-VT
19 . 106595 : Mr. Dang Huu Trinh , MPM-VT
20 . 106596 : Mr. Nguyen Quang Hung , MPM-VT
21 . 106597 : Mr. Do Hong Hai , MPM-VT
22 . 106598 : Mr. Phan Minh Nhut , MPM-VT
23 . 106599 : Mr. Dang The Phuong , MPM-VT
24 . 106600 : Mr. Nguyen Manh Hung , MPM-VT
25 . 106601 : Mr. Vu Van Dao , MPM-VT
26 . 106559 : Mr. Nguyen Quoc Hanh , MPM-VT
27 . 106583 : Mr. Dang Dinh Lam , MPM-VT
28 . 106591 : Mr. Nguyen Hoang Loc , MPM-VT
29 . 106625 : Mr. Khuong Minh Dat , MPM-VT
30 . 106592 : Mr. Nguyen Van Diep , MPM-VT
31 . 106582 : Mr. Pham Van Tuan , MPM-VT
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