Title: The Challenges Faced by Project Managers in a Dynamic Environment
1The Challenges Faced by Project Managers in a
Dynamic Environment
2Dynamic Organization
- Operate in a global environment
- Strategic Management Focus- Constantly
changing/adapting to aggressively exploit
business opportunities by reducing project cycle
time delivery - Optimal organizational structure- goal/result
oriented, lean, and fostering creativity and
flexibility in a project environment - Above Average Returns- focus is to optimize ROI
minimize non-value adding investment thus
increasing Net Present Value (NPV) of a project
proposal
3Global Energy Climate- Expansion/Development
- World Oil Supply presently- 85 MMbbl/d IEA-
predicts that global oil demand grew 1 in 2006
and will increase to 1.8 to 86 MMbbl/d in 2007. - World Oil/Gas Prices high approx USD 58-
60.00/bbl and USD 7.00/Mcf - 1,400 offshore and 296 onshore drilling rigs
worldwide plus 1,742 in USA - 281 seismic crews working worldwide- exploration
for hydrocarbons - Focus is on aggressive exploration and increasing
production worldwide turnkey projects
4Energy Industry- Trinidad
- Oil Production- 137,174 bbls/day (111,591
bbls/day offshore and 25,583 bbls/day land ) - Gas Production- 3861 MMscf/day
- Six development wells being drilled
- One exploratory well being drilled
- Seven rigs in operation
- Expansion in energy and petrochemical sector-
need for increased EP
5The Need for Project Management in Energy Sector
- Projects- diverse in nature, circumstance and
location. Can be capital or operational - Involves new facilities, upgraded facilities or
equipment, system implementation and changes,
organizational change or development of new
procedures - Choice of project and effective delivery directly
related to business performance - High initial investments in EP- Risk
IPA- effectively managed projects-consistently
add value (15 ROI, increase value by 2) Poorly
managed projects- destroy value (15 ROI,
decrease value by 5)
6Project Management- Basics
- Temporary endeavour undertaken to create a unique
product or service (PMBOK) - Project Management- application of knowledge
skills, tools, techniques to project activities
to meet or exceed needs and expectations and
involves balancing competing demands among - Scope, Time, Cost, and quality
- Stakeholders with different needs and
expectations - Identified requirements (needs) and unidentified
requirements (expectations)
7Project Phases- BHP Model
- Phase- completion of one or more deliverables
- Sequential logic design to ensure proper
definition of the product and project
8Project Process Roadmap
9Conclusion- Challenges Faced
- Challenges faced by Project Managers can be
controllable/uncontrollable - High demands for project delivery to exploit
business opportunities- short lead time for
pre-planning between phases (corporate or
operational level)- can impact quality, time,
scope - Limited in house technical resources- ex.
functional organization project team member has
dual role to project and also core
responsibilities- can impact time and quality of
project - Multiple projects- new Projects/capital
investments and also operational upgrade
projects- assignment of resources can be a
problem with competing priorities - Project planning and scheduling impacts due to
unavailability of resources locally- technical
personnel, materials, support services.Has to be
sourced externally- higher cost and also impacts
to schedule (ex. long lead time for
materials/equipment procurement, shipping) - Socio-cultural aspect- societal impacts on
productivity and resource availability
10Recommendations for Improved Project Management
- People- single point accountability for project
(PM), continuity of key and experienced
personnel. Dedicated project team/department - Planning and scheduling to be realistic- based
on resource availability, scope for deliverables
(engineering design,stakeholder and regulatory
inputs), and must incorporate socio-cultural
aspects - Benchmarking and independent reviews-
benchmarking and having independent technical
reviews by subject matter experts internally or
externally especially for engineering
design/HAZOPs. - Outsourcing- outsourcing of external project
management resources - Vendor alliances-long term contracts for
specialized services and equipment ex. stocking
arrangements for long lead time materials
11Recommendations for Improved Project Management
- Focus on Front End Loading is KEY ensure
schedule incorporates process of undertaking
sufficient detailed studies,design work,
estimates, and analysis, technical and regulatory
input,so that a significant level of accuracy can
be achieved. This can minimize project scope
changes and ensure a proper engineered product
12Thank You