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Project management techniques play an important role in the effective management of a project. Some projects are effectively and efficiently managed while others are mismanaged, incurring a lot of scheduling and cost overruns. Good project management lies in the management techniques used to manage the project, and this is more so if the project is a turnkey project from engineering to commissioning the plant.
This paper identifies various stages of turnkey project management, its implementation methods/techniques and the items to be considered while executing the project. It also identifies and analyzes the problems encountered in detail. Reasons for schedule and cost overruns are discussed. This paper also discusses a case study in which the turn key project had gone into schedule and cost overruns.
A turnkey project means executing the project from the design phase up to commissioning and hand-over. The word turnkey is used because the owner will have the plant ready and he has to only "turn the key" to start the plant. The scope of turnkey projects normally includes detail engineering, procurement, fabrication, construction, testing and pre-commissioning, hook-up, commissioning, start-up, and hand-over. Normally, the contractor will be responsible for guarantee of the operation of plant during guarantee. A turnkey project sometimes includes conceptual design.
The nature of turnkey projects differs vastly from construction project. In the construction projects, the drawings/materials are supplied by the owner and it is very clear what is to be constructed. Any deviations from the drawings and materials will constitute extra work compared to the scope of the project. In a turnkey project, "the purpose" is the scope of project, and any errors/omissions will constitute the part of the scope of the project and not extra work. There are controversies in interpretation of these extra works by contractor and owner which are also discussed in this paper.
ESSENTIAL ELEMENTS OF PROJECT MANAGEMENT
Project management involves managing the resources-workers, machines, money, materials and methods used. Management of workers involves organizing, staffing, directing, and coordinating. Management of machines means buying and maintaining the machines required to execute the project. Management of money means generating required funds at the right time. Money management also involves budgeting. Management of materials means buying, processing, and using materials at the right time to...