Week 5_ Ejeh Udoka_ Lost man-hours
At the fabrication site, it is observed that personnel leave for break at about 11:30hrs and return at about 13:30hrs against 12:00hrs – 13:00hrs regular break period. The problem identified is that a total of about one (1) project hour is lost.
Possible causes
Root cause analysis carried out explained that because the fabrication yard is sited about two km from commercial areas, the personnel have to drive or book a cab to and fro.
Possible solution/alternative
-suggestions have been made to the management to set up a mini-canteen/restaurant within the complex. This will mean initiating a building project and possibly a catering project if not outsourced.
-another suggestion is to encourage overtime for at least one hour. This will work well but may not be very efficient as fatigue may set in.
-adopting the company’s transport vehicles to convey workers to and from lunch.
Comparing alternatives
All suggested solutions are worth experimenting. Setting up a mini restaurant seems like a permanent solution but may be capital intensive. It seems to be another avenue for income.
Making up for the lost time with overtime is a good practice but that depends on how much the company is willing to path with. Otherwise stated, the cost of production will increase. This can serve as a temporary or ad-hoc measure.
Using the company’s transport vehicles sounds easy but the challenge of not wanting to leave people behind may request time lag.
Summary
W3_Okiemute_Odudu_INCREASED INVESTMENT IN OIL AND GAS IN THE NIGER DELTA RAISES EMPHASIS ON EFFECTIVE PROJECT DELIVERY
ReplyDeleteThe oil and gas industry is facing unprecedented increased investment in capital projects in recent years as a result of increasing energy demand worldwide. A lot of capital projects are being line up in the portfolios of national, international and private indigenous oil companies, resulting in huge capital spending on investments.
This has lead to increase in the number of very large projects with increasing project complexities especially in demanding environment s and new frontier areas, changing industry competition and changing political and regulatory requirement of host countries.
These increasing expenditure and attendant risks applicable to these projects have made effective project delivery a common topic of interest among top executives in both national and privately own companies.
This is because most projects executed today do not meet good performance in terms of project delivery.
In Nigeria, only few indigenous companies have effective project management competency, and poor in terms of project delivery. Most companies operating in the Niger Delta, Nigeria vast oil and gas region, have serious challenges meeting their project performance. This is because effective project delivery has been a serious concern to both local and foreign companies operations in the area.
This is not as a result of a dearth of knowledge in project management and its application, but owing to certain prevailing constraints that are known but improperly captured in the execution strategy of most of these experience and even competent foreign firms.
This constraints makes project executed in the region less competitive and more expensive compared to elsewhere in the world, and as such, a comprehensive understanding of this constraints to effective project delivery and the right analysis and incorporation into the project execution strategy is what would guaranty successful project performance.
REFERENCE:
Capital Project Execution in the Oil and Gas Industry by Matthew G. Mckenna, Herve Wilczynski and David VanderShee
Hi Ejeh,
ReplyDeleteNice problem statement, but you really aren't following the step by step solution that I am trying to get you to adopt.
You did Steps 1 and 2 OK (although I would have been much happier to see you include the actual root cause assessment you did)
But where is your analysis of the alternatives? What I am looking for would be for you to use AHP, Multi-Attribute decision making (Chapter 14 of your Engineering Economy)or the tools/techniques from other chapters in your Engineering Economy, Skills and Knowledge or Memory Jogger II.....
And I am not saying that your conclusions/decisions/recommendations are wrong ones. Just that you are not SUPPORTING them the way professional cost engineers/engineering economists SHOULD be.
Lastly, you completely missed Step 7, which was to explain to us how you intend to track and monitor your decision to see if it solved the problem or not.....
Bottom line- I am REJECTING this posting and urge you to seek out the advice of Lanre, SeeGod or Biola to mentor you....
BR,
Dr. PDG, Jakarta