Improving Cost Monitoring and Control for Aircraft Maintenance Project through Earned Value Management

• Main Author: Haryadi/ 29116228, Agus
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25136
• Institution: Institut Teknologi Bandung

Aircraft maintenance, service, and overhaul (MRO) is one of the services provided by PT Dirgantara Indonesia through its strategic business unit Aircraft Services (ACS). The service, which supposed to be one of potential revenue source to the corporate, has shown an issue related to the deterioration trend of its sales performance in recent years. Aircraft MRO activities, which qualify the terms as project, has initiated the focus of this research into the project management processes in the ACSthat contribute to the above business issue. <br /> <br /> The research started with gathering information on project management processes within ACS. In this stage, a project management methodology would be necessary as benchmark. Project Management Body of Knowledge (PMBOK), published by Project Management Institute, became the preferred methodology due to the similarity of what currently ACS practices. <br /> <br /> The collected information through survey, interviews and observations discovered that ACS encounters some undesirable effects in its project management processes. Looking into the link between those effects using Current Reality Tree model resulted in several root problems that one of them related to cost monitoring and control. The currently implemented project cost management has created some burdens in monitoring and controlling the project cost and schedule variation, hence indication of project cost overrun or behind schedule will only be noticeable near the edge of project lifecycle.PMBOK offers earned value management method, that perform cost planning and monitoring of the project progression in the form of time-phased cost. A simulation of earn value management in one of the past MRO project resulted in the early identification of issues which were undetected in the conventional method. This will ease project managers to take early actions in order to bring the project back on the planned schedule and budget. <br /> <br /> The challenges in project cost management based on this method are the accuracy in planning and discipline in project progress monitoring, which need more responsibility from the project stakeholder. On the other hand, the successful implementation of the earned value management method in the projects will improve cost efficiency and on time delivery of the aircraft MRO services provided by ACS, thus will eventually improve sales performance <br />