A proposed model in improve project cost and schedule predictability

• Main Author: Kurniawan, Yuli
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15991/1/P46.pdf; http://repo.uum.edu.my/15991/; http://stmlportal.net/ictom04/TOC.html
• Institution: Universiti Utara Malaysia

PT. ABC Indonesia is facing a problem in executing the capital project.The cost and predictability of projects were found low as indicated by delay and overrun.According to the assessment conducted to projects that were executed in 2008-2012, the problem contributed to the low cost and schedule predictability are unavailability of process to develop a well-defined scope of work and process to control the schedule and cost.The methodology to find the problem to existing process is by studying a number of project management standards, among others include: Project Management institute, American Management Association and some other papers related to improving cost and schedule predictability.A new model to improve cost and schedule performance is proposed in this paper.This new model is actually a combination of techniques in controlling cost and schedule from industry best practice and customized to align with PT.ABC Indonesia’s project development process.This paper proposes a model to control project cost and schedule to improve the project performance.The model starts from defining a good scope from early phase of the project.As the project move to the next phase, the development of Work Breakdown Structure is important.The WBS should breakdown the scope into a more detail task which is called as work packages. A good work packages will support the capability to control the schedule and cost more accurate.During the execution stage, the mechanism to control the project should be in cyclic.It starts with gathering the status of cost and schedule, organizing and reporting the status in a dashboard, analyzing the provided data,development of action plan to bring the cost and schedule on track and at last executing the action plan.