INTEGRATED PROJECT MANAGEMENT SYSTEM TO IMPROVE PROJECT MANAGEMENT PRACTICE. CASE: INHOUSE BROWNFIELD PROJECT PT FREEPORT INDONESIA CONCENTRATING DIVISION

• Main Author: NUGROHO WIDYATMOKO (NIM 29115362), ADI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20740
• Institution: Institut Teknologi Bandung

Abstract - PT Freeport Indonesia (PTFI) is a contractor of the Government of Indonesia (GOI) and a <br /> <br /> <br /> <br /> <br /> Freeport-McMoran Copper & Gold Inc. (FCX) subsidiary which is operating in Papua, the most eastern <br /> <br /> <br /> <br /> <br /> province in Indonesia. PTFI concentrator plant which have been operated since 1973 can be categorized <br /> <br /> <br /> <br /> <br /> as an old plant. As an old plant, PTFI concentrator plant required a lot of brownfield project due to <br /> <br /> <br /> <br /> <br /> following issues: a lot of production equipment require to be replaced due to their parts no longer <br /> <br /> <br /> <br /> <br /> supplied by the manufacturer, corrosion severity which are caused by interaction between steel and <br /> <br /> <br /> <br /> <br /> copper concentrate, and unpredictable ore hardness level. Therefore, a lot of re-engineered and <br /> <br /> <br /> <br /> <br /> brownfield project required in order to keep the plant operated as the design capacity. However, due to <br /> <br /> <br /> <br /> <br /> lack of project management system, PTFI also experienced frequent project delay and cost overrun due <br /> <br /> <br /> <br /> <br /> to various problem. As a company, PTFI also doesn’t have criteria in term of what are the successful <br /> <br /> <br /> <br /> <br /> project criteria which are applicable within PTFI brownfield project. Therefore PTFI require to develop <br /> <br /> <br /> <br /> <br /> successful project criteria according to PTFI condition, identify and mapping the problems which are <br /> <br /> <br /> <br /> <br /> causing frequent project delay and cost overrun. By developing the successful project criteria, the <br /> <br /> <br /> <br /> <br /> integrated project management system can be developed in order to achieve those criteria. Moreover, <br /> <br /> <br /> <br /> <br /> the integrated project management system also expected can solve the problems which are frequently <br /> <br /> <br /> <br /> <br /> causing project delay and cost overrun. Successful project criteria and root cause analysis are developed <br /> <br /> <br /> <br /> <br /> using mind mapping by interviewing various respondents from various sections which are frequently <br /> <br /> <br /> <br /> <br /> involved within PTFI Concentrating Division brownfield project. According to the qualitative research <br /> <br /> <br /> <br /> <br /> analysis, the successful project criteria which are suitable with PTFI condition are as follows: according <br /> <br /> <br /> <br /> <br /> to specification, on time, safety, on budget, free from defects and doing the right thing. While the root <br /> <br /> <br /> <br /> <br /> cause which are causing frequent project delay and cost overrun are as follows: lack of project <br /> <br /> <br /> <br /> <br /> management business process, lack of project management documentation system, lack of project <br /> <br /> <br /> <br /> <br /> approval system, lack of define scope and collect project requirements and lack of procurement <br /> <br /> <br /> <br /> <br /> management. In order to solve the root cause, this research propose to improving the existing project <br /> <br /> <br /> <br /> <br /> management process according to project management process which are described in PMBOK 5th <br /> <br /> <br /> <br /> <br /> edition including develop project charter during project initiation phase, stakeholder identification <br /> <br /> <br /> <br /> <br /> process, plan scope management, develop an installation drawing and field check during project <br /> <br /> <br /> <br /> <br /> planning phase and develop lesson learned for future reference within improved business process. the <br /> <br /> <br /> <br /> <br /> other recommendation within this research also develop an Engineering Change Notice system, <br /> <br /> <br /> <br /> <br /> implementation of Project Management Offices (PMOs) as project approval and project prioritization <br /> <br /> <br /> <br /> <br /> committee, and develop a material control team. However, due to limitation of manpower, each of <br /> <br /> <br /> <br /> <br /> proposed solutions required to be selected and prioritized. In order to prioritize them, Pareto analysis is <br /> <br /> <br /> <br /> <br /> used. Therefore according to Pareto analysis, in order to solve 80% of frequent project the solutions <br /> <br /> <br /> <br /> <br /> require to be implemented are Implementation of Project Management Office (PMO) as project <br /> <br /> <br /> <br /> <br /> approval, selection and prioritization committee and improving existing project management business <br /> <br /> <br /> <br /> <br /> process according to the PMBOK.