The Challenges Faced by Project Managers in a Dynamic by avi13765

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




3/9/2010      Challenges Faced by Project      1
           Managers in a Dynamic Environment
             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
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                  Managers in a Dynamic Environment
            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
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                  Managers in a Dynamic Environment
              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 E&P

3/9/2010                   Challenges Faced by Project      4
                        Managers in a Dynamic Environment
       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               IPA- effectively managed projects-
    development of new procedures          consistently add value (15% ROI,
   Choice of project and effective        increase value by 2%)
    delivery directly related to            Poorly managed projects- destroy
    business performance                   value (15% ROI, decrease value by
   High initial investments in            5%)
    E&P- Risk


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                        Managers in a Dynamic Environment
               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)
    3/9/2010                  Challenges Faced by Project      6
                           Managers in a Dynamic Environment
               Project Phases- BHP Model
   Phase- completion of one or more deliverables
   Sequential logic design to ensure proper definition of the product and
    project




    3/9/2010                   Challenges Faced by Project                   7
                            Managers in a Dynamic Environment
           Project Process Roadmap




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                 Managers in a Dynamic Environment
           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
3/9/2010                   Challenges Faced by Project                      9
                        Managers in a Dynamic Environment
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/HAZOP’s.
   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




3/9/2010                    Challenges Faced by Project                    10
                         Managers in a Dynamic Environment
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




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                       Managers in a Dynamic Environment
           Thank You

                Questions?




3/9/2010      Challenges Faced by Project      12
           Managers in a Dynamic Environment

								
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