DECISION QUALITY EVALUATION IN PROJECT MANAGEMENT (CASE STUDY: PROJECT X OF BADAK LNG)

• Main Author: Nurkamal Pratama, Irfan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70173
• Institution: Institut Teknologi Bandung

It is undisputable that decision making is vital for businesses and organizations. The same applies in project management. For Badak LNG, currently, the context and importance of good decision making will also be extended to the projects that are crucial for ensuring Badak LNG’s business transformation and business continuity in the future. Despite this fact, however, problems were found in one recent major project conducted in Badak LNG, namely Project X. There was low satisfaction toward the project implementation and significant project issues surrounding the project such as progress delay, cost overrun, construction quality problems, reworks and finally equipment reliability & operational issue after the commissioning. The issues were indicated to be resulted from problems in decision quality and decision-making process in the project management of Project X. The mix of quantitative and qualitative research was conducted to explore the issues surrounding Project X. Furthermore, evaluation was also conducted by using PMBOK Guide to discover the significant problems in Project X from project management perspective. To conclude, Kepner-Tregoe Problem Analysis was employed to structure the problems and to find out the most possible causes of problems in Project X. ® Based on the evaluation, it was concluded that the problems were caused by several factors: limited experience of the project team, inadequate project planning, inadequate quality management, inadequate risk management and inadequate procurement management in Project X. There were also indications of low quality of key decisions and problems in decision-making processes related to those factors. To improve decision quality and decision-making processes, the 6 Decision Quality (DQ) frameworks and the 10 Quality Decision Making Practices (QDMPs) were evaluated and it turned out that both could solve the problems of suboptimal decisions in Project X. By evaluating Project X key decisions with those frameworks, prioritization to improve project decision quality could also be obtained. Finally, concept recommendation is provided to