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The Challenges Faced by Project Managers in a Dynamic Environment

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... 137,174 bbls/day (111,591 bbls/day offshore and 25,583 bbls/day land ) ... Temporary endeavour undertaken to create a unique product or service (PMBOK) ... – PowerPoint PPT presentation

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Title: The Challenges Faced by Project Managers in a Dynamic Environment


1
The Challenges Faced by Project Managers in a
Dynamic Environment
  • By
  • Nigel Sookdeo

2
Dynamic 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

3
Global 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

4
Energy 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

5
The 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)
6
Project 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)

7
Project Phases- BHP Model
  • Phase- completion of one or more deliverables
  • Sequential logic design to ensure proper
    definition of the product and project

8
Project Process Roadmap
9
Conclusion- 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

10
Recommendations 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

11
Recommendations 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

12
Thank You
  • Questions?
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