PROJECT MANAGEMENT COMPETENCY DEVELOPMENT: A CASE STUDY OF VIETNAMESE SMALL AND MEDIUM-SIZED CONSTRUCTION FIRMS

As one of the most dynamic cities in Viet Nam, Ho Chi Minh City has numinous changes in both its image and infrastructure. In the year of 1998, there were few buildings, most of which were located in the downtown area. However, for the last decade, many large scale projects have been built.

Following Vietnam’s economic growth, the demand for high-rise buildings increases and the need for efficient construction are therefore evident. However, like other developing countries, Vietnam is also facing many weaknesses in project management that weakened domestic competitiveness.

Improper project management competency is present both in the public sector and private sector and in small and large scale projects. Seminars and workshops have been held to discuss and explore the effectiveness of this issue in term of project cost, time and quality, as well as to seek for an enhancement of project management competency.

Mr. Chu Bien Cuong made a case study to (1) identify the project management competency of an SME construction company in Vietnam; and (2) identify on how to enhance project management knowledge and skills for human resources.

Mr. Cuong analyzed the weakness and identified the root causes attributable to project management competence. And based on which, he gave recommendations to solve the problems peculiar to a real-world project, while highlighting the expected enhancements of a real contractor. After all, a project management competence framework was developed for projects under the administration of a small or medium-sized construction firm.

Through this case study, Mr. Cuong found out that among small and medium sized construction firms, the competency of SMEs still does not meet the project management in terms of effectiveness and efficiency. Most SMEs are restricted in applying the management system. Besides, the management knowledge is the most important thing that SMEs have to improve in order to obtain the potential competition with other rivals.

Through various assessments and analyses, his study successfully explored insights in project management competency. The findings are found to be practical for small and medium-sized construction firms. His recommendations are the following:

1. Individual competency. The use of suitable leadership style is of prime importance in the firms. In addition, the individuals should be aware of the necessity to acquire knowledge as well as fundamental project management skills. Lessons from project failures can be a source of experience to learn. Beside, the project management should have full support of his top management and colleagues to carry out project tasks successfully.

2. Team competency. Group leadership and cooperation is crucial for the survival and development of any organization. A good system should therefore be established to address at least the following issues:

(i) line of communication;
(ii) vague and ambiguous defined responsibilities;
(iii) individual relationships;
(iv) decision-making processes;
(v) high cooperation.

3. The organization institutionalization is very important for its own development and as a good working environment for its staff. The organization should be structured in such a way that divisions, departments or strategic development, etc. can meet the project-focused objectives. In addition, the employees also contribute greatly to the development of the organization itself. It is strongly recommended that in setting rules and policies, the top management should, among other things, focus on enhancing individual and team competency through special-purpose capacity-building programs designed for its responsible staff.

His thesis abstract is copied and posted.

ABSTRACT

For the last decade, most projects in Vietnam were in small and medium scales. So with crowded labor sources at that time, contractors satisfied the basic project requirements with inefficient outputs and outcomes. However, construction projects have nowadays been developing in scale as well as in quantity. As a result, the requirements on improvements in competition in terms of quantity, cost, and technology are increasing.

The role of contractors in construction projects is very important since their performance brings successful or failure to these projects. In Vietnam, project management competence of local contractors has recently not satisfied market demand and project requirements. Such low project management competence has resulted in poor performance and side effects. These not only have a direct impact on the stakeholders but also on the project objectives and social interests. To enhance project management competence is therefore required by and from individuals and organizations.

Project owners have been seeking for efficient and effective contractors who can deliver a promised project. As stated, contracts are often awarded to foreign contractors who have experience and capacity to meet their client’s expectations. Meanwhile, the chance to lose contracts in high demand markets is obvious for local contractors due to limited abilities.

The need of approaching and improving project management competence is critical. This study will therefore address the project management competence by investigating a project by a construction firm, and then recommending solutions to improve project management competence in small and medium-sized construction firms in Vietnam.

His research framework is illustrated below.

France's 101km A19 Artenay-Courtenay Highway and Construction Equipment

With 4 million man hours put in by more than 8000 workers and tons of construction equipment, the French government's first eco-motorway and the biggest road infrastructure project to date has been finished.

For construction equipment for sale, visit MSloane Consulting.

The 101km A19 Artenay-Courtenay which links A10, A6 and A77, was completed a week ago, four months ahead of schedule. It completes the outer bypass of the greater Paris region.

It is the country's most eco-friendly road thanks to steps taken to prevent any water running off the motorway without being treated first. The road has 107 run-off treatment basins as well as animal crossings and lots of trees to suck up that carbon dioxide. Apart from its environmental credentials, the project is also being praised for its record fast completion.

Riza Yosia will join University of New South Wales (UNWS) Australia

Riza Yosia receives a PhD scholarship from UNSW. He will join on 19 July 2009.

Congratulations! and Good luck with your PhD study.

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Hadikusumo

EPC PROJECTS MANAGEMENT AND PROBLEMS: CASE STUDY OF INTERNATIONAL AND LOCAL EPC CONTRACTORS OF OIL/GAS AND PETROCHEMICAL PROJECTS IN VIETNAM

Now with a stable political and social economic status, Vietnam becomes a destination of the foreign investors from developed countries. The foreign investors always perceived to be beneficial to the host countries. In the side of host counties, foreign investment business structures are predicted to bring back the foreign capital, advanced technologies, management know-how and better quality products for re-export or for domestic market distribution. The quest for technology is more essential for the host countries when the requirement of foreign investors’ capital is obvious and great.

Since the start of the opening market economy, hundred investors have transferred their money to Vietnam and found out the business, almost strong and famous chaebol or enterprises invested to Vietnam have concentrated in investment to Oil and Gas industry. With the Joint Venture Agreements selection, they became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.

In recent years, Vietnam Oil and Gas Group (PVN) have been carrying out a lot of mega projects. Some have been done and others are progressing like Vietnam-Soviet Union JV (VSP) oil exploration and developing projects.

In order to ensure that most projects will be executed with the aiming cost, quality and time targets, Vietnamese Government and PVN particularly have to invite engineering and technical resources from developing or developed countries by bidding for the International EPC Contractors, International PMC, Certificate Agents, Insurance companies etc

With the Joint Venture Agreements selection, these companies became shareholders with Vietnamese State Owned Companies and have been starting their businesses successfully.

Even though most of EPC Contractors who were selected for PVN’s projects are well experienced and well-known in their particular categories, it does not mean that all the EPC Contractors were successful in reaching clients’ satisfactions. The common problems during the implementation the projects were schedule delay, contingencies, variation orders and unqualified accomplishment

Mr. Nguyen Khoa conducted a case study on “EPC Projects Management and Problems: Case Study of International and Local EPC Contractors of Oil/Gas and Petrochemical Projects in Vietnam” to (1) explore some reasons why some EPC contractors getting troubles in carrying out the project, also their problems in EPC Project Management; and (2) explore the better practices in EPC project management.

His research study focused on how the EPC contractors control and manage the EPC projects in Vietnam including procurement, cost, scheduling management. Three Petrochemical construction projects were selected base on specific criteria such as:

· Medium to large projects
· Executed by International EPC contractors and Local EPC Contractor this have dealing experiences in Vietnamese construction market.
· Mentioned projects were accomplished and now under operation.

The case study projects are Phumy Fertilizer Project, Phumy PVC Project and Thivai Terminal and LPG Pipeline Project since these three have similar things in common:
 Belonging to PetroVietnam.
 Projects were built in Southern of Vietnam, in 02 adjacent Industrial Zones.
 The Execution time of these 03 projects was happened in 1997 to 2005.
 The Type of contract is EPC Contract; 02 EPC Contractors were assigned and the other one was selected by bidding.
 The 02 Projects were carried out by International EPC Contractors were successful in project execution. The other one was executed by the Local EPC Contractor was the failure one (in time, cost and quality management.)

Based on the result of the study, among hundred projects belonged to PetroVietnam, the Phumy Fertilizer Project was the first and only project that was accomplished on time and under the estimated budget. The reasons for this project’s success were due to the competence of the Consortium, support and direction from the Nation Leaders, and scare of fertilizer in current situation. But, in the point of view of a member who joined this project, the hard working spirit of the Project Management Board in both sides (Client and Consortium) is the only primary reason.

Phumy Plastic Plant was also one of the accomplished projects of PetroVietnam within Joint Venture field. The project itself was started, executed and finished on time and within the approved budget. Most of the site activities were the equipment erection and installation works; the civil and construction works occupied a small part of whole project without any special solution need to be applied. The procurement activities were done by the EPC Contractor with the fixed configuration from the Licensor and PETRONAS (shareholders), so it was not sophisticatedly ordered and contracted to the International Vendors.

Thivai LPG Terminal and Pipeline Project was a small project without any high techniques or sophisticated configuration. It is about 12 ha in total and 20 ha for extension consideration in the future following the International Codes and Standards in engineering design and project management. It was still considered a failure due to the incompetencies of the EPC Contractor. Without historical experiences in role as the EPC Contractor, PVECC did not know how to solve and manage the project.

Mr. Khoa concluded that the main cause in the projects’s failure was depending on the competency of the EPC Contractor. Lack of experiences in the similar works, bad in planning and scheduling, bad financing plan, fragile in contracts negotiation, low reputation, lack of world wide relationships, unskillful in project management, shortcoming of human resources etc. are the constraints that the Local EPC Contractors have to overcome to improve and affirm themselves for getting the reputation from the clients in current competition market.

His thesis abstract is copied and posted.

ABSTRACT

Vietnam social-economic is booming in recent years, with attracting investment policies, the Vietnamese Government have been successful in luring many foreign investors starting their businesses in Vietnam, especially in Oil and Gas Industry.

Known as a country has rich natural fossil resources, Vietnam has large capacity of crude oil and natural gas in his off-shore East Sea areas. But with the restriction of engineering and updated technologies, the Vietnamese Government / PetroVietnam have been exerted themselves to attract as more bilateral relationships from developed countries (US, Russian, England, France, Norway, Japan...) as possible to expand their advantages in exploration and own their fossil energy resources.

Most of the projects that related to Oil and Gas Industry which have been carried out in Vietnam following the EPC type of contract. In the point of view of PetroVietnam, Oil and Gas projects should be implemented effectively, and that is the reason why the international EPC Contractors are the most feasible selection, cause of the lack of experiences in mega projects executing of Local EPC Contractors.

In order to manage and control the project to reach the demands from the Client / Owners, normally are cost, time and quality, the International EPC Contractors should have very efficiency project management methods which could help the International EPC Contractors in order to avoid any problems and adverse factors related to cost overrun, delay and inadequate productivities.

In the contain of this thesis, the author would like to focus on the research of International EPC Contractors Project Management, in Oil and Gas Industry Projects. The three selected case study projects are the Phumy Fertilizer Project, the Phumy PVC Project and the last one is the Thivai LPG Pipeline and Terminal Project. Those mentioned projects will be draft informed as below:

1. Phumy Fertilizer Project:

Petrochemical Industry, that included the Urea (Fertilizer) production, is one of foundation industries, it’s really important for the national economic developing. The shape and growing of this industry will become a force to develop the agriculture and other related industries.

In economic developing strategies of the Government, execution the Fertilizer or Urea Plant, not only to ensure the stability and initiative in supplying the fertilizer with reputedly as the strategic production for national developing, but also to bring back the other effective outcomes aspects such as economic, social, political and also distribute to impulse the industrialize and modernize processing that taken initiative by Vietnamese Communist Party.

In years ago, Vietnamese Government did have the mission the develop the fertilizer industry, but it was impossible due to some objective existences. There have been only some small size plants of Urea and Phosphates were operating in Vietnam in current time, with the supplying capacity approximately only 7% of the national demand, and the remain requires should depend on the importing resources and be paid with valuable foreign currencies.

On the April of 2000, the Prime Minister delegated to PetroVietnam (PVN) incorporated with Vietnam General Chemical Companies (VinaChem) and Vietnam Agriculture Company (Vigecam) to establish the Feasibility Study Report (FS) of Fertilizer Plant with the feedstock from associated (nature) gas resources.

Followed the order of the Prime Minister (correspondence No. 58/TB-VPCP dated 30th April, 2000 referred to Developing the Gas – Power – Fertilizer Program), PVN urgently drafted and submitted to the Government for approval the Feasibility Study Report of Fertilizer Project. This project was invested by Vietnamese Government / PVN, and the selected location of the project is in Phumy 1 Industrial Zone in Baria – Vungtau Province.

This is the first Fertilizer Plant in Vietnam could use the feedstock from the associated nature gas, this Plant supplies the production to the domestic market, concentration to the Mekong Delta provinces and the other areas in the South of Vietnam. Until now, most of Urea used in Vietnam must be imported from regional countries. As forecasting, the 2000 – 2005 Urea demand increased around 4,8%. The predict urea demand in 2000 was 1,975 millions tons, it was 2,07 millions ton on 2001, 2,169 millions ton in 2002, 2,224 millions ton in 2003, 2,29 millions ton on 2004 and 2,37 millions ton in 2005. The demand speed of grow in 2005 – 2010 period is 4,1% and total urea demand in 2010 will be 2,9 millions ton. In case the Plant will operate full design capacity (740.000 ton – 800.000 ton /year) in the initiate stage, it only satisfies 35% of domestic demand (Phumy Fertilizer Project – The Feasibility Study Report). Consequently, the project will have advantages in competition compare to the other imported resources.

The Fertilizer Plant uses the feedstock from the associated gas resources from CuuLong and Nam ConSon gas basins, and the predict output capacity around 740.000 ton / year of urea (2.200 tons of urea / day and 1.350 tons of ammonia / day). The flexible in using the feedstock (gas) will warranty the high efficiency of economic and necessary security for the Plant in case of the fluctuation of cost and supplying resources in the market.

2. The Phumy PVC Plant:

This project was a Joint Venture project between 04 shareholders: PetroVietnam, Petronas - Malaysia, Marubeni - Japan and TMS - Thailand. This project located nearby the Thivai LPG Pipeline and Terminal, in the Caimep Industrial Zone, Baria – Vungtau Province, with total square around 07 ha.

The outputs of this plant is Polyvinyl Chloride with capacity is 100,000 MTPA. Total investment of this project is USD70 millions and via the License of European Chloride, UK. The project has Amended Joint Venture Contract signed on 12th April 2000. Amended Investment License 1305/GPDC3 issued on 6th May 2000. EPCC (Engineering – Procurement – Construction – Commissioning) Contract awarded to Samsung Engineering and site handover on 15th May 2000. Site preparation and soil improvement works essentially completed and Piling scheduled to start end June 2001. The plant on stream by October 2002.

The PVC plant uses the LPG and Natural gas as the feedstock to their inputs. In the project management perspective, this project could be a success. But in operation phase, due to Joint Venture Terms and References, this plant has to face with a lot of difficulties in production and selling their products. But it is a difference aspect of The Phumy PVC Plant. In this scope of research, the author only focus on the EPCC Contractor Project Management side and will present the detail in the Chapter 4.

3. The Thivai LPG Terminal and Pipeline Project:

This project is a complex of the 03 x 06 inches pipelines system connecting the DinhCo Gas Distribution Plant to the Thi Vai LPG Terminal with the distance of on-shore underground pipeline around 48 km. The production was transported via the pipelines system and separated into three kinds of products such as Condensate, Butane-Propane gas and LPG. Products were terminated in separate storages and exported to the customers via barges or lorries.

The processing system of this project is including: 01 Pig Launcher Skid, 01 Pig Receiver Skid, 03 Line Block Valve Skids, 33 x 463m3 horizontal pressure vessels (bullets) for LPG, 02 x 6500m3 floating roof tanks for Condensate. 02 Loading Arm systems for product export, 02 LPG Compressors, Online Bu-Pro Mixing system, the Flare with burning capacity in 7503/h and the Close Drain System, Nitrogen Compressor, Diesel Generators, Fire Fighting System. 02 Product export Berths and function Buildings .etc. This project had the total budget cost was around USD 58 million and scheduled to construct in 02 years, from 1997 to 1999. But actually, this project had delay 02 years more and had a lot of contingencies that raised the budget into USD 71 millions. Finally the project had have finished and handed over to the End-User, the company named PetroVietnam Gas Co. (PV Gas.) on the end of 2001 with 02 years delay.

The EPC Contractor of this project was one of PetroVietnam Subsidiaries – PetroVietnam Engineering and Construction Company (PVECC). It was the biggest construction company of PVN and had construction experiences in most of mega projects which had been invested by PVN in Vietnam. This Company had about 20 Construction Enterprises underneath and they were the subcontractors for PVECC to carry out this project at that time.

This project received a lot of supports from the PetroVietnam, but could not be a success project in cost, time, and quality management aspects. In this case study, the author would like to present some of main reasons that led this project still will be a nightmare of everyone who used to be involved in, and the information of this project will be detail in the Chapter 4.

More Mining Equipment for Gold Fields' 4% Production Increase

Gold-miner Gold Fields, based in South Africa, would again increase its gold production by 4% in the fourth quarter of the 2009 financial year and will probably need more mining equipment.

The company MSloane Consulting sells used and unused mining equipment for the mining indutry anywhere in the world. The company Gold Fields reported last May that it had increased production by 4% to 871 000 oz in the third quarter, saying it was expecting to achieve a similar increase in the fourth quarter.

Production in the three months to end June 30, 2009, was expected to reach about 905 000 oz of gold, with the South African operations increasing production by 2% to about 520 000 oz of gold, compared with 517 000 oz of gold in the previous quarter.

CONSTRUCTION MANAGEMENT PRACTICES UNDER CONSTRUCTION MATERIAL PRICE FLUCTUATION

Project cost management is defined as one of the nine knowledge areas which are applicable knowledge and practices to most projects. Construction materials generally consume about 40 percent to 60 percent of total budget of the project.

In 2002, the result of break-up construction costs by Construction Industry Development Council Survey in India explained that construction material roughly consume at range from 41 percent to 60 percent of total construction costs. Hence, it is very important to closely pay attention on the material cost then build a good material cost management.

In cost management, one of the favorite indicators is the cost index. It is the ratio of cost or price for a given commodity or service or set of commodities or services at a given time and place compared to the cost or price at a base or standard time and place (Humphreys, 2005). Likewise, it is necessary to learn the cost index because one of many factors influencing construction costs is time due to changes in demand, economic conditions, and prices. Cost indexes convert costs which was applicable at a past date to equivalent costs now or in the future (William, 1994).

However, the use of cost indexes has several limitations. For example, cost indexes are based on average values so in specific cases, the actual value may be different from the average. Humphreys (2005) mentioned that at this time, the technology is changed so the method by which any given index is complied may periodically be changed by the complier. In such cases, the index values at different times should not be compared directly. Figure 1.1 is an example of construction material price indexes by Ministry of Commerce Thailand that based year to compare for these indexes is year 2000.





Figure 1.2 revealed that the construction price indexes in Thailand are very uncertain from year 2000 to 2008. A trend of uncertainty at recent years is increasing. To apply escalation in construction project, it should be considered in two levels which are historic and future (Squire, 2008). From historic escalation are such bid results, price indexes, price comparisons and cost record. For future escalation data, it can be found from assessed forecast which attempts to anticipate cost. Hence, it is important to find the way to handle with uncertain material prices in construction.

Squire (2008) stated that in construction, the price fluctuation comprises material, labor, equipment, overhead costs and fees. Cost management on projects becomes a particular challenge in a location where the economic climate is uncertain. In this circumstance, one of the significant consequences is uncertain construction price which can lead to many problems. Gallagher and Riggs (2006) stated that ripple effect of this price escalation has included numerous other impacts. For example, the first impact is putting project on hold while supplemental funding is sought. Second, the alternative of canceling the project if additional money is not available is chosen. Third, scale-down the project scope is attempting to be proceeded. Therefore, the price fluctuation can create enormous difficulty in the construction industry.

Ms. Piyachat Thaveelert made a survey on Construction Management Practices under Material Price Fluctuation to (1) investigate the situation of material price fluctuation and its effects on the practice of construction contractors during each stage namely estimating, bidding and construction stage; (2) identify the existing practices of how contractor strategically do to the situation and indicate interrelationships among practices; and (3) propose recommendation on how to handle the situation of construction price fluctuation.

Ms. Thaveelert found out that construction industry in Thailand usually confronts with the situation of material price fluctuation. Since the materials normally cost at the highest proportion of total cost, the situation of material price fluctuation becomes severe for construction industry. At this point, the appropriate management under material price fluctuation should be found out and investigated in order to be able to handle with the situation.

Her thesis abstract is copied and posted.

ABSTRACT

A construction management is very important for a construction project. To be a successful project, it requires an appropriate management from contractors to cope with especially the situation in construction industry that is unaccustomed. According to the recent record, it has been found that construction industry faced with the situation of material price fluctuation. Due to the material cost usually consumes the highest proportion in the construction cost, it is very significant for contractors to know how to handle with the situation. This research aims to investigate the existing of construction management practices under the construction material price fluctuation and propose the recommendation to respond to the situation.

The study uses a questionnaire as a research instrument to explore the existing practices of contractors. Two statistic methods were mainly used to analyze data from questionnaire surveys. The first analysis was descriptive analysis which used means and rankings to analyze. Second, the hypothesis testing was used to compare practices of the Bill of Quantity making and, procurement and employment among three groups of respondents. Those respondents are contractors focusing on private owners, public owners and both owners. In addition, another hypothesis testing was to compare practices relating to contract conditions between private owners and public owners through contractors’ perceptions. At his point, the correlation between groups of contractors was also tested through the hypothesis testing of correlation. Finally, the factor analysis was carried out to find out the interrelationship among practices by grouping the variables.

Result were found that for the Bill of Quantity making process, contractors prefer to find out the price trend by discussing the price trend with their suppliers with the highest mean. For the procurement and employment of contractors, contractors need to pay more attention on supplier selection process with the highest mean. For practices on contract conditions, it showed that the practice of the Specifying contract condition relating to furnishing materials clearly has the highest level of practice in private owners. In public owners, the Reasonable advance payment has the highest level of practice. The correlation between these two groups is also high positive correlation for practices on contract conditions. Last, the result of factor analysis showed that interrelationships of practices and it could be categorized into eight groups: Negotiating with Owners, Subcontractor Pricing Agreement, Government Pricing Index, Material Price Risk, Proactive Cost Control, Contractors’ Historical Data, Contractor Procurement Strategy and Estimate Pricing.

Used Construction Equipment for Nuclear Construction Projects

MSloane Consulting has its radars on any requirements from nuclear construction projects such as used construction equipment.

The recent successful auction of three Nuclear Decommissioning Authority (NDA) sites emphatically displayed the level of optimism surrounding the UK’s new nuclear power construction programme.

The sites were three plots of farmland − 178ha at Wylfa, Anglesey, 48ha at Oldbury, Gloucestershire, and 200ha at Bradwell, Essex − each adjacent to ageing Magnox nuclear power plants, which the NDA was attempting to sell during the biggest recession since the Great Depression.

With property and land prices in falling, the NDA placed a reserve price of £35M on each site and, although it was hopeful of raising more than this, it surely underestimated just how highly treasured these desolate strips of land were. The three sites sold in April for a combined total of £387M, with a joint venture of German generators Eon and RWE Npower buying Wylfa and Oldbury and French generator EDF snapping up Bradwell.

Ms. Htet Htet Shein Joined Ch. Kranchang

Ms. Htet Htet Shein (CEIM 2009 from Myanmar) has joined Ch. Kranchang Contractor.

Congratulations!

Hadikusumo

Ms. Piyachart Thaveelert Joined Foster Wheeler

Dear All,

Ms. Piyachart Thaveelert (CEIM 2009) informed me that she is now joining Foster Wheeler, oil and gas construction company in Rayong.

Congratulations!

Hadikusumo

Mr. Surapong Panja and Ms. Rahongsree Prayongrut Joined TEAM Consulting

Dear All

Mr. Surapong Panja and Ms. Rahongsree Prayongrut(CEIM 2009) have joined TEAM Consulting. They were recruited two months before they graduated from CEIM program.

Congratulations!

Hadikusumo

Mr. Andreas Adihartanto Joined Pakuwon Property Developer

Dear All

I received a phone call from Mr Andreas from Indonesia (CEIM'2008) that he joinned Pakuwon Property Developer in Jakarta.

Congratulations!

Hadikusumo

Mr. Raman Awale Joins SINOTHAI Contractor

I received an email from Mr Raman Awale (Nepalese, CEIM'2009). He will join with SINOTHAI starting July 2009.

Congratulation to Mr Raman Awale!

And many thanks to Mr Niraj Baidya (CEIM' 2005) who has been very active in recruiting our AIT alumni.

Regards
Hadikusumo

Seminar in Can Tho Vietnam 22 June 2009 part 2

In the seminar, I explained how to build project management competency in an organization. I pointed out important fact that the success of project management will affect the stock price of a company. In this open information era, the market knows very well the performance of a project whether it is delayed or cost overrun. If a project is profitable, the stock price of the company will be appreciated by the market. For example, during january to may 2009, Bangchak Oil Refinery was in the commissioning of the new plants. Due to the success of the projects, the stock price of bangchak went up very high. You can see the comparison between Bangchak stock price (Left Chart) and SET index (Right Chart). Bangchak stock price has rallied up higher than SET index.

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Hadikusumo

Seminar in Can Tho Vietnam 22 June 2009 part 1

Participants attending our seminar

Dr. Hadikusumo and Ms Bich Hoa (AITVN)

Mr Pham Hong Linh - General Director of SouthWest Gas Pipeline 700 Km

Dr Hadikusumo and Ms Bich Hoa made a presentation in Cantho.

I made a presentation about the roles of project management for project performance and organization. Then, I continued with explaining how to build project management competency in an organization.

In the seminar, Mr Pham Hong Linh - the General Director of SouthWest Pipeline 700 km, also attended the meeting and shared his experience on why project management is very important in large construction projects.

The seminar was attended by construction professionals from Cantho city and neighbouring area.

Posted by
Hadikusumo

Used Mining Equipment for Sale and Laser Precision in Mining Automation Applications

Australia's Commonwealth Scientific and Industrial Research Organisation (CSIRO) reports that Modern sensors are delivering data for the creation of 360° digital maps for mine machinery in the harshest conditions.

For used mining equipment for sale, visit MSloane Consulting.

Anyone who has spent even the shortest amount of time in a working mine will know the adversity of the conditions that can exist. An often hostile climate combines with the localised tempests of dust, heat and mist caused by the processes of digging or drilling into the earth to create some challenging environments. Decisions made in such conditions where senses are severely limited (sight especially) have always been subject to significantly increased risk. There is now a universal desire to reduce that risk.

Lasers have found regular but limited use in mining automation applications (such as Load Haul Dump vehicles) and applications of millimetre-radar are under trial with some promise. However, difficult mining conditions still threaten widespread use of both technologies. CSIRO’s ICT Centre identified the need to extend the potential use of these tools by establishing the performance parameters of scanning range sensors under adverse environmental conditions.

RISK FACTORS INFLUENCING INTERNATIONAL CONSTRUCTION PROJECTS IN PAKISTAN

Construction is the second largest sector in Pakistan’s economy after agriculture. Roughly 30-35% of employment is directly or indirectly attached with the construction industry. In contrast to the prospective share of Pakistani construction in the local and global economic market, the development of the sector has not been at par with the market demands. Pakistan’s construction industry is still characterized as pressured and adversarial. Further, construction projects in Pakistan generally run over time and over budget; do not necessarily meet user expectations; and often require remedial works due to construction defects, with many conflicting issues, leading to project disputes and litigation.

Mr. Ahsem Maqsoom (M. Eng’g in CEIM) made a research to (1) understand the basic concepts involved in international construction business and their limitations; (2) study the reasons and characteristics for internationalization of firm; (3) study the problems and risks associated with international construction projects; (4) study the entry modes and formulation of healthy strategies for international construction business; (5) identify the risk factors influencing international construction projects in Pakistan

He found out that new opportunities are constantly growing as a result of globalization in construction sector. Construction firms want to have projects at international level. In every construction project, risks are present. Risks in international construction projects are more critical as compared to domestic projects especially when developing countries are involved. That’s why it is desirable for international construction firms who want to do construction projects in foreign country, to identify the risks as early as possible, so that suitable strategies can be made for the penetration in to the foreign construction market and to manage these risks before the actual execution of projects on international level.

Risk consequences in construction projects may reach an undesirable level because of inadequate resources and lack of advancements in technologies, therefore a thorough awareness and identification of risks is essential to prepare suitable strategies.

Mr. Maqsoom’s abstract is copied and posted.

Abstract

Globally construction companies are entering in an era of internationalization. This brings a need of developing and defining strategies to cope with the international demands of quality, risk and profit. Different models related to the international construction have been studied in context with the following issues.
• Globalization and construction industry development
• Characteristics of internationalization
• Risks or Obstacles associated with international Construction business
• Competitive advantage and strategies for international construction business

International construction projects have many risks involved due to the nature of their structure. There are more parties involved and more phases are present in international construction projects than a conventional construction project. Each party has its different objectives. This difference in the objectives of parties leads to conflict of interest which is a root cause of risks in international construction projects. An international construction adaption model has been developed in this research. This model had been applied on Pakistan construction industry to know the practical example of internationalization. The risks factors which influence the international construction business in Pakistan have been identified and then classified on country, construction industry and project bases. Some critical problems related to international construction projects have been indicated from these identified risks. Some recommendations have also been suggested to manage the critical risk for the success of international projects and development of international construction industry of Pakistan.

The Cat 584 / Cat 584HD New 18/20 ton Forwarders

Cat Forest Products has announced the launch of a new forwarder line with the introduction of two models with 18-metric-ton and 20-metric-ton capacities. The new Cat 584 and Cat 584HD are designed to withstand the requirements of transporting large payloads for long distances over difficult terrain, while providing operator comfort, controllability and serviceability.



In designing the new forwarder line, Caterpillar engineers conducted in-depth interviews of forwarder owners to learn what features they wanted in a new generation of forwarders. Prototype operators and logging contractors who previewed the forwarders said they especially liked the structure’s sturdiness, the strength of the center oscillation joint and the styling, features and roominess of the cab.

The 18 metric ton Cat 584 is available in a 6-wheel drive or 8-wheel drive configuration. The 20 metric ton Cat 584HD is available as an 8-wheel drive. A field-proven hydrostatic propel system provides maximum power on grade through a wide engine rpm and ground speed range, resulting in infinitely variable speeds at peak power and dynamic braking on steep terrain.



The operator’s environment is a totally new design and provides the operator a very comfortable, spacious environment featuring automatic temperature controls on the heater/AC, low effort ergonomic joystick controls, easy entry and egress, storage compartments and superb visibility. Side windows extend below seat level, which allows excellent ground visibility close to the cab and around all wheels. The front entry door is positioned to allow easy entrance off hydraulic lift stairs.

The forwarders feature the Cat® C7 Tier III-compliant engine with ACERT™ Technology that delivers an outstanding 204 kW of gross power at 1800 rpm. The lug curve of the engine provides excellent torque in the 1400 and 1600 rpm range, providing increased fuel efficiency.



Fuel efficiency is also achieved by the large diameter cooling fan, which has its own hydraulic pump that includes a speed control modulated by the forwarder control system. Not only is the variable-speed cooling fan beneficial for fuel efficiency, it also performs well in cold climate conditions by allowing system temperatures to increase to the desired operating level quickly. The over-sized cooling fan requires less horsepower and cools more quickly, allowing loggers to go deeper into the woods and haul bigger loads, faster.

The structurally robust carriers decrease overall ownership costs and increase resale value. The rugged front and rear frame structures are manufactured for long life in demanding forest applications. The heavy duty cast articulation and large oscillation bearings are also designed for long service life. The reliable crane is the market leader in its size class, with optional boom reaches available.

All major components and systems are easily accessible for servicing through the forward-tilting engine canopy and hydraulic tilt cab. The boom grease lines can be serviced safely standing on the ground.

Source: http://www.cat.com/

What type of Heavy Equipment FAQ are mainly based on?

The Heavy equipment FAQ are mostly based on the worth, how the quality of the heavy equipment would be and most probably the best price that could be paid on that heavy equipment. Most of the construction business oriented people try to get clarified on their doubts about the heavy equipments they purchase or most probably they may be clearing out with the problems they face with their equipments. They may need to move their heavy equipments from one country to another, so they may be in need of many questions like say the import and export duty they have to pay on, the maximum shipping charge and so on.



The term heavy equipment refers to large construction equipment such as back hoes, excavators, loaders, bulldozers, graders and much more. The People who have doubts on the usage, or any other clarification about the heavy equipments may be the part of the FAQ to the general experts on heavy equipments. One such FAQ on heavy equipment is as, why there is a need for used heavy equipment appraisals. From this question it could be easily judged that this person must be dealing with the heavy equipments and may be in need of knowing what must appraisal for? As he or she may be facing to sell the heavy equipment or may in the process of buying the heavy equipment. The answer for this question may make him comfortable as it is a direct and explainable question.



And another FAQ on heavy equipment is that on the primary users of the heavy equipment appraisals, the same person or may be another one could have asked for this question. He or she may need to meet that appraisal of the heavy equipment in the near future, but may not know who the heavy equipment appraisal would be. The answer for this question would again be easy by an expert of the used heavy equipment sellers. Some may even not know what the appraisal means so one of the FAQ on heavy equipment was to define the term Appraisal; the answer would be the good apt definition for that question. May be one think at an overlook of these questions that it takes the whole to appraisal and not on heavy equipment. May this right, as the questions are based on the used heavy equipment selling and buying the term appraisal is most important.



Not only these but also a number of other FAQ regarding the appraisal and used heavy equipments may be asked and it can be concluded as said that any topic on which these FAQ s are asked, makes clear that the topic becomes more important but they may lack knowledge on those. It also makes clear that the person needs to be clear in what he is doing and make sure that he is not going to face any loss out of doing something that he is not known in a proper way.



Here are some of those FAQ on Heavy equipments training academy like on the address and the location of the Heavy Equipment Training Academy. The types of courses they offer and so on. There also some of the frequently asked questions on heavy equipments like What if I can't afford to buy the heavy equipment for hardscape projects? This question may because of, the cost of the heavy equipment higher.

Heavy Equipment for Sale for the Korshunov Mining Plant in Russia

Mechel OAO, one of the leading mining and metals companies, announces starting production for repair of type 2 BC-105 dump cars at its Korshunov Mining Plant OAO subsidiary and obtaining a permit for the repaired dump cars to be used at railways of Russia

MSloane Consulting on the other hand, regularly announces its latest heavy equipment for sale for buyers anywhere in the world.

To establish the production reconstruction of repairs and mechanics shop was performed, high technology equipment was purchased, and the staff of all services and units involved in process technology was additionally trained. Capital investments in the new production amounted to more than 42 million rubles and 34 new occupations were provided extra.

All activities to start new production including process technology and specifications-supplied unique equipment development as well as construction and erection works were performed in-house without involvement of design companies and contractors allowing for costs minimization.

Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

Quantitative Risk Assessment for Offshore Platform Process System

Oil and gas industry is one of sectors that have high risks. It can range from minor to major events. For instance: oil leaks, gas leaks resulting to catastrophes like explosions, fires and oil spread. These disasters might cause fatality, injury, pollution, economic loss and even disruption of business. How can these accidents be prevented? How can the level of risk be assessed? And how can these things be handled or managed?

Mr. Nguyen Van Thanh made a case study on “Quantitative Risk Assessment for the Process System on an Offshore Platform: A Case Study Of QRA For Process System Of Platfrom RP-3 Of J.V. Vietsovpetro”. This project is a partial requirement for his Professional Masters degree in Construction Engineering and Infrastructure Management.

He concluded that:
(1) to evaluate and calculate the level of risk of a project, a factory or an offshore platform, the general formula that can be used is: R = F x C (where : R = Risk ; F = Frequency and C = Consequence). Based on the formula of risk, reduction of the consequence and reduction of the frequency are the two ways to reduce the risk.

(2) to reduce the consequence or frequency of risk, mitigation measures will be proposed if the risk value is higher compared with the risk criteria. The process system should be divided into the segments based on the properties, functions and working place.

(3) to assess the risk, the process system of platform RP-3 (Vietsovpetro Joint Venture) was divided into 8 segments based on their function, working condition and location. Comparing to the risk acceptance, the calculated risk in the process system of platform RP-3 is lower. Therefore, the risks are acceptable.

Mr. Nguyen Van Thanh’s abstract is copied and posted.


ABSTRACT

Quantitative Risk Assessment is a mean of objectively measuring the risks from hazardous activities of a facility or operation. The risks are qualified in terms of their probability and consequences. By comparison with a suitable risk criterion, the results can be used to help decide whether the facility is unacceptable or whether the improvements are necessary
This thesis attempts to explore the existing approaches of Quantitative Risk Assessment and apply this technique to offshore oil and gas industry, a very high risk sector, by proposing a frame work to conduct quantitative risk assessment for process system of offshore platforms.
Based on the given frame work, a case study will be performed to understand the effectiveness of “Quantitative risk assessment for process system of PR-3 offshore platform in Dragon oil field of Vietsovpetro J.V”

Construction Equipment: M25 UK Highway

The largest project insurance policy has been completed for the £6.2 billion UK highway, M25 widening scheme covering all parties involved up to a policy limit of £25 million.

For construction equipment for sale, go to: MSloane Consulting.

The construction division of Jardine Lloyd Thompson has completed the insurance placement for the M25 contract on behalf Connect Plus, the consortium which has been awarded the contract by the Highways Agency.

The exclusive facility provides 10 year non cancellable insurance covering the professional liabilities associated with the project and is on of the largest. single project professional indemnity programmes ever.

The policy includes material damage insurance for the existing road and infrastructure, business interruption insurance, construction all risks for new works, advance loss of profits insurance, public liability insurance (for all parties including the road operator and building contractor) and environmental insurance.

Transformational Style: The Highly Effective Leadership Style in Thai Construction Industry

In Thailand, the construction industry grown quickly especially in the infrastructure sector since the demand of the population on infrastructure is increasing. Construction is a project based industry and its success depends on several factors including the manager’s personality traits, competencies or necessary skills, and leadership styles which are appropriate for dealing with construction work have high impact on project outcomes.

Ms. Kedsuda Limsila conducted a case study on “Effective Leadership In The Construction Industry In Thailand“. This was focused mainly on the influence of project managers’ leadership styles on outcomes and was conducted in order to identify the most appropriate leadership style in the Thai construction industry.

She found out that:(1) in general, project managers in Thai construction projects apply a variety of leadership styles, most often adopted is the transformational style, followed by the transactional style and the laissez-faire style; (2) the entire range of behaviors of transformational project managers and contingent reward behavior from the transactional style are capable of generating leadership effectiveness, subordinate satisfaction and extra effort while the other leadership behaviors cannot; (3) in Thai construction projects, subordinates with extroversion personality tend to produce greater work effectiveness and exert extra effort whereas subordinates with conscientiousness and/or openness to experience personality tend to be satisfied with and exert extra effort into their work; (4) several independent factors affect the decision making of project managers in the process of selecting the leadership styles to apply to their subordinates. The more the factors with positive relationships appear, the higher the likelihood that project managers will select those related leadership behaviors whereas the other factors with negative relationships have the opposite effect; (5) several factors that positively affect leadership outcomes (effectiveness, satisfaction, extra effort, and commitment). Some factors have association with only one outcome whereas other factors have associations with several outcomes. The higher the level of the relevant factors present, the higher the degree to which leadership outcomes will occur.

Her results pointed out that leadership style mostly adopted in Thai construction projects is the transformational style since this is the most effective leadership style to apply with Thai subordinates.

Her Ph.D. dissertation abstract is copied and posted.

ABSTRACT

The success of a construction project depends on several important factors, one of which is the competence of its project manager. There are several issues regarding the project manager have impacts on project outcomes. Examples include the project manager’s leadership behaviours, personal attributes, and competencies or necessary skills which are appropriate for dealing with construction work. Consequently, there are many questions need answers regarding the competence of project managers and issues of effective project management. For instance, what is the most applied leadership style at the current time and what are the different outcomes from applying different leadership styles? What is the most appropriate leadership style? What are the necessary competencies of an effective project manager?

Consequently, this study was conducted to investigate the actual leadership behaviours and personal competencies of project managers. It also explored the key personality traits of subordinates in Thai construction projects. Specifically, this study examined how leadership behaviours, leader personal competencies and subordinate personality traits influence leadership outcomes (effectiveness; satisfaction; extra effort; commitment) and subordinates’ work performance (work quality; work quantity; problem solving creativity; teamwork and work discipline).

Leadership behaviors and outcomes were measured using Bass and Avolio’s (2004) Multifactor Leadership Questionnaire (MLQ), subordinates’ personalities were measured following the Five Factor Model whereas project manager’s personal competencies were measured following the Project Manager Competency Development (PMCD) defined by Project Management Institute (2002). During the data collecting process, data regarding the actual leadership behaviours, leadership outcomes and personal competencies of project managers in Thai construction projects were gathered from subordinate group whereas project managers provided the data on their subordinates’ key personalities and work performance level based on their opinion.

The findings of this study answer several questions on the top of this page that leadership style mostly adopted in Thai construction projects is the transformational leadership style. It further clarifies that this style is suitable for application with Thai people since it created leadership outcomes superior to the other styles (transactional style and laissez-faire style). In addition, transformational leadership supports subordinates to produce better work quality and work quantity. Moreover, the subordinates also tend to have high creativity in problem solving when working with transformational leaders.

Besides, the association between PMCD personal competencies and MLQ leadership behaviours revealed that the entire personal competencies defined by Project Management Institute have significant positive relationship with every factor in the transformational style but they have significant positive relationship with only contingent reward factor in the transactional style whilst having negative relationship with the laissez-faire style. It implies that project managers who apply transformational behaviours are likely to possess the necessary personal competencies required for competent project managers also.

Mining Equipment for Sale

Please see our mining equipment for sale:
Used Goodwin Barsby Stone Crusher

Asking Price: $425,000 USD
As-is, where-is, FOB Indonesian Port

* Primary crushing circuit Goodwin Barsby 42 x 30 Jaw Crusher
* Stand and Braces
* Guards/ Walkways/ Handrails/ Ladders
* 150 KW Electric Motor
* Vee Belt drive system
* Feed Bin and Braces
* Feeder and 30 KW variable speed drive
* Discharge conveyor with 15 KW drive (in component form)
* Secondary Crusher and Screening Circuit
* Hazemag 1313 Impact Crusher Eljay 16 x 6 Screen Plant
* 200 KW Electric Motor and Vee drive (to suit impact crusher)
* 22 KW Electric Motor and Vee drive ( to suit impact crusher)
* Hydraulic system to suit Impact Crusher (In component form including hydraulic power unit, rams, piping and fitting)
* Disharge Conveyor for Screen
* Discharge Conveyor for Impact Crusher
* Recirculating Conveyor in component form
* Stacker conveyor in component form
* Container Electrical Control Centre
* Caterpillar 3412 Containerised Generator Serial No. 6FA0 and connector to interconnect complete plant
* Crushing and Screening Plant Control Room
* Supports/ Ladders/ Walkways for Control room

MPM and CEIM Photo in AIT Main Campus Thailand

Hi all, i am attaching a photo taken in April 2009 in AIT Main Campus Thailand.

Professional Master in Project Management in Construction and CEIM students took photo at the NEW landmark of AIT in front of our administration building.

Dean Prof. Worsak, Dr. Hadikusumo, Dr Therathorn (Adjunct Faculty from Perfect Property), Mr Mike Woodward (Adjunct Faculty from Foster Wheeler) were participating in the photo.

This is a photo to remember our Green Campus in AIT Thailand.

Posted by

Hadikusumo

Used Mining Equipment for Sale: Anglo Swiss Completes Metallurgical Scoping Study For their Kenville Gold Mine

For used mining equipment for sale, visit MSloane Consulting.

Anglo Swiss Resources Inc., announces that G&T Metallurgical Services Ltd. of Kamloops, British Columbia has completed a Metallurgical Scoping Study for the company’s Kenville Gold Mine Project near Nelson, British Columbia. G& T Metallurgical Services is an integrated mineral process research and development company with laboratories for sample preparation, mineral processing testing, mineralogical analysis and chemical analysis.

The objectives of the Kenville Property study were to: 1) assay the gold, silver, copper, and lead grades of six submitted representative mineralized rock samples, 2) prepare a composite by combining the six submitted samples, 3) determine the grindability of the composite, 4) test gravity concentration techniques to the composite sample, 5) test how the composite responds to the standard flotation technique, 6) determine possible concentrate upgrading techniques, and 7) develop a simplified mineral processing flowsheet.

NEGOTIATION ISSUES, STYLES AND OUTCOMES IN BUIDING CONSTRUCTION PROJECTS IN THAILAND

In construction industry, conflicts are inevitable in any construction projects.
Construction projects require that every parties are related in term of negotiation such project managers, safety managers, clients, suppliers, designers, site engineers, and consultants. Negotiation is one potential consequence to succeed projects when comparing with other factors. Many negotiators need to understand their personal characteristics for bargaining.

For any given issues, problem or conflict encountered, the participant has a negotiating position. Different construction projects have different conflict styles and different departments try to work together.

Mr. Surapong Panja made a case study on “Negotiation Issues, Styles, And Outcomes: A Study of Building Construction Projects in Thailand”. He learned that construction industry always has conflicts that can be attributes to more factors such as change order, variation work, job safety, price adjustment (inflation or deflation), and time extension. These factors can produce many conflicts itself and may contribute germination and manifestation. Dispute is always negotiated by project participants, and the process of negotiation is the first task before considering other resolution methods. The project manager of contractor tends to use avoiding style. It is suggested that it is more important for negotiation outcome to understand the proper negotiation style on each negotiation outcome in order to make beyond benefit to negotiation outcome with satisfaction.


His abstract is copied and posted here.


ABSTRACT

Negotiation is one potential process to make construction projects to succeed or fail. The negotiation between project participants is the first step to do businesses even construction industry, and it can take place all stages of construction projects. In negotiation process, the characters of project participants can affect to their behavior which can lead to resolve conflicts and outcome with satisfaction. Thus, the ability of project participants for negotiating effectively is a one essential success or failure. Weakness of negotiation can also affect to a sizable loss not only negotiator’s needs but also affect to other sides involve. Notwithstanding, understanding both the behavior of negotiation style, negotiation issues, and outcomes are valuable for practices and academics.

This study also emphasized on five aspects: (1) to study negotiation styles regarding with the project manager of consultant and contractor in the way they use negotiation styles. (2) To study what are important negotiation issues between the project manager of consultant and contractor those are important to both parties (contractors and consultants) and issues that are possible for value exchange in bidding and construction stage. (3) To find out the relationship between negotiation styles and negotiation outcomes. The questionnaire survey involved in thirty high-rises building projects.

Based on the results, the finding can suggest that different negotiation styles will affect to different negotiation outcomes, and what the negotiation style are appropriate with each negotiation outcome. The suitable negotiation style on negotiation outcome may be helpful to increase negotiation outcome. The understanding the strongest negotiation style can provide more beneficial as well as weakness styles can also provide drawback. Furthermore, the significant responsibility of project manager is to identify the important issues for one’s side, and another side may be less important issues which can apply to possible value exchange concept.

Used Mining Equipment for Sale: Foremost MPD 1500 Tracked Tiltable Platform Reverse Circulation Drilling Rig

Here is one of our used mining equipment for sale: Foremost MPD 1500 Tracked Tiltable Platform Reverse Circulation Drilling Rig

• With 90,000 lb pullback.
• 10,000 hrs but has completely overhauled in 2006 and has been in dry storage since.
• Comes with a very comprehensive spares package including many engine, compressor, new drill bits and 2 new hammers etc.
• Top head was over hauled and all new seals ready to go to work.
• Comes with very good condition low loader with removable goose neck, also with spares, wheel tyres, hydraulic pipes, etc.
• Also included is 900 ft of double walled drill pipe.
• As is, where is.

Contact us for more information, visit MSloane Consulting.

CORRELATION BETWEEN PERSONALITY AND JOB PERFORMANCE

People are now considered as one of the factors that sustain advantage in an increasing globally work oriented competition among organizations. Human Resources (HR) are appreciated as an asset to corporate success, among other factors because its functions cover a wide range of activities which are required for different skills.

Construction compared with other organizations has the highest degree of applying HR for all hierarchical levels and one of the largest global employment sectors, providing work for a significant proportion of the labor market and accounting for a significant share of the world gross domestic product.

Human Resources in a labor construction have many varieties; from top to bottom; comes from different backgrounds; and have various skills and diverse aptitudes that make difficulty in controlling them. Therefore, construction companies must have appropriate Human Resources Planning (HRP).

Ms. Swe Zin Myint conducted a case study in “The Relationships Between Personality and Job Performance in Myanmar Construction Projects”. The analysis result of his study shows that there are correlations between personality and job performance of respondents who work in construction sites. He found out that (1) conscientiousness and integrity play crucial role in managers’ personality trait because it is related with most of managers’ job performance categories by positive correlation. Therefore, in recruiting for manager’s position, the employers must check the applicants’ personality traits especially in conscientiousness (2) Organizational factors influence more than the personality factors level to job performance. Therefore, employers better manage HR in an effective way to get high performance from them. The employers can recruit employees by testing their personality required for the job and if the personality is not fit with the HR job position or job performance, employers can exert effort to increase it by providing organizational factors.

His thesis abstract is copied and posted.


ABSTRACT

In order to achieve the success, every organization has to metain their competitive strategy by modifying it according to rapidly growth of technology. There are many strategies to overwhelm competitors but all of them are based on human resources (HR). Consequently, one of the important factors to have proper human resource management is their personality traits. This study intends to investigate the relationship between personality and job performance of HR in construction to manage HR effectively by achieving high performance. A survey for the study was conducted in Yangon, the previous capital city of Myanmar and target on manager, site engineer and site supervisor of ongoing construction projects. The study indicated that not only correlation of personality and job performance but also fundamental personality traits for manager especially for human resource management. Moreover, it also compared the influential level of personality traits and organizational factors on job performance.

Congratulation for Mr Nguyen Van Diep, CEIM/MPM Vung Tau

Dear Mr Nguyen Van Diep (CEIM/MPM 08)

We would like to congratulate you with your new promotion as the Deputy of General Director of PTSC-OS (Petrovietnam Technical Service Offshore Servive - Tong cong ty dich vu ky thuat dau khi- Cong ty Dich vu khai thac bien) ( ma tren TT chung khoan- PVS).

We wish you successfull with your new position.

We are proud of your achievement.

Regards
Hadikusumo

Congratulation for Mr Nguyen Khoa, CEIM/MPM Vung Tau

Dear Mr Khoa (CEIM/MPM 2008)

CEIM family would like to congratulate you with your new position as the Deputy of General Director of PVC-IC (Petro Vietnam Construction - Industrial Construction Tong cong ty thiet ke va xay lap dau khi-Cong ty IC)

We are proud of you, Mr Khoa.

We wish you successfull with your new position.

Regards
Hadikusumo

Heavy Equipment for Sale: (2) 7 Megawatt V16 Enterprise Genset Power Plant

Heavy Equipment for Sale: (2) 7 Megawatt V16 Enterprise Genset Power Plant

This unit is located in New England, US.

Price for entire plant including de-installation ex-works is $3,300,000.

Low-cost financing is available for qualified worldwide buyers.

General Info:

• Fourteen (14) Megawatts total between both units
• Hours – 14,000 & 12,000
• Both are in pristine condition
• Everything you could possibly need to run them on gas or liquid fuel is included
• All the gas regulators, filters, air start, pumps, motors, cooling, exhaust, air intake filters, an assortment of spare parts, manuals, test equipment, etc. are also included
• They are currently configured to run on # 2 fuel, however, they will run on bio diesel, # 6 fuel oil (HFO), bunker fuels, mixed industrial fuel, LNG, LPG or methane (note: all gas conversion equipment is included)
• Units are currently off line and in a heated dry facility

Technical Data:

Engines (2):

• Manufacturer Deval Engine & Compression Division, Oakland California, USA
• Model DGSRV-16-4
• Manufacture date 12/12/87
• Fuel Dual fuel (Fuel oil or digester gas)
• Installation Stationary
• Configuration 45 degree Vee
• Number of cylinders Sixteen (16)
• Bore/Stroke 17 X 21 inches
• Brake Mean Effective Pressure 192 PSI
• Specific Fuel Consumption 6400 BTU/BTU Hr @ 192 BMEP – Original guarantee dual fuel operation
• 0.346 LB/BHP-Hr @ 192 BMEP – Original guarantee full diesel operation
• Rated Horsepower 8338
• Rated Speed 450 RPM
• Starting System Pilot air, Gear driven distributor
• Displacement/Cylinder 4766.6 cubic inches
• Total Displacement 72,265.6 cubic inches
• Flywheel diameter 90 inches
• Intake valve clearance .04 inch
• Exhaust valve clearance .04 inch
• Fuel advance 22K8-23 LB BTDC

Generators (2):

• Manufacturer Louis Allis
• Type TBGZBDJP
• Frame 1X-34
• Volts 4160
• Duty Continuous
• KVA 8750
• KW 7,000
• Phase 3
• Hertz 60
• F L Amps 1214
• PF .08
• RPM 450
• Ins Class F
• Temp Rise 80
• Max AMB 40
• Field Amps 4.5A
• Field Volts 100
• Stator weight 29,912 lbs
• Rotor weight 41,170 lbs
• Total weight 80,900 lbs
• Phase sequence ABC T1.T2.T3
• CW Rotation Facing Conn End

Contact us for more info: MSloane Consulting

PROBLEMS AND PRACTICES IN EPC PROJECT MANAGEMENT

EPC projects face many challenges to stay in the competitive world despite of the efforts made towards compressing activities by phase overlapping, in order to reduce time scale and to obtain better EPC projects. These project challenges lead to cost overrun and schedule delay.

But what are the specific factors and problems in EPC Projects; and the effective Project Management (PM) practices especially on petrochemical and oil and gas EPC projects in Thailand?

Mr. Raman Awale made a case study on “Problems and Practices in EPC Project Management: A Case Study on Petrochemical, Oil and Gas EPC Projects in Thailand”. His study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment; lack of EPC contractor’s experience, lack or poor coordination and communication between Client, contractor and suppliers resulting to late approvals; poor planning and controlling; lack of top management commitment and unrealistic project scheduling.

His full abstract is copied and posted here.

ABSTRACT

EPC (Engineering, Procurement and Construction) projects are highly schedule driven where phases are overlapped to complete the project as early as possible. Moreover, these EPC projects are massive, utilize high skill and well train employee, acquires complex and complicated methodology/technology, needs fast information flow between different phases and close collaboration of multidiscipline as well. EPC projects are facing serious problems like crew idleness, rework and management dilemma which lead to cost overrun and schedule delay. Hence, this study aims to explore effective project management practices and problems faced in EPC projects especially on petrochemical and oil and gas EPC projects in Thailand, such that necessary proactive planning can be performed before to conduct such project effectively.

Methodology consists of three steps - pilot survey, interview approach and case study approach. Interview Approach (adjusted Grounded Theory Approach) is purposed to find out the significant delay and success factors together with effective management practices from various factors collected from literature review and pilot survey. Later, case study approach is used to validate the information gathered previously and to understand the relation and consequences of each factor in real situation. The respondent and interviewee were chief civil engineer, deputy chief engineer, director, project managers, construction manager, project engineers, process engineer, vice presidents, (Professional Experts) etc from 15 different EPC companies (9 Client companies and 6 Contractor companies).

The study reveals that major factors contributing to schedule delay and cost overrun are mostly related to material and equipment such as material shortage, procurement delay, or late delivery on site. Besides, delay in placing purchase order, design changes, lack of EPC contractor’s experience, late approvals, vendor information coming in late and further most due to the lack of coordination between Client, contractor and suppliers regarding exchange of information are other factors contributing cost overrun and schedule delay.

In addition, poor planning and controlling, lack of top management commitment, unrealistic project scheduling and poor coordination and communication are poor project management practices explored. However, subcontractor management and control mechanism, lesson learnt practice, involvement of construction and operational personnel during conceptual phase are success project management practice found. Furthermore, interface management and control, integrated team management, real time reaction, dispute management, risk management, stakeholder management, continuous and dynamic detail planning and monitoring during execution and being proactive to issues, carrots and sticks approach (incentive criteria), clear roles and responsibilities, etc are also the big concerns in terms of project management practice regarding controlling cost overrun and schedule delay.

The findings from this study can be helpful to EPC contractors, owners, investors, project managers, construction managers, engineers and other construction stakeholders to understand the major factors, causes and problems related to phase overlapping of EPC process. This will guide them in developing and adopting necessary effective and efficient project management practice to conduct EPC projects on cost, on schedule with good quality providing clients satisfaction and safety measures. This research can be viewed as a lesson learned approach.

Keywords: EPC Projects, Phase Overlap, Delay and Success Factors, Project Management Practice, Long Lead Items, Scope Changes, Lesson Learned

Military Construction Equipment

While reporters in the field seek to give TV viewers at home a clearer picture of the events that lead to victory or defeat in a wartime setting., those reporters seldom cover the path taken by military construction equipment. Sometimes, though, the enemy forces do make note of that path. Sometimes the enemy forces do use their weapons against military construction or convoy equipment. Sometimes that enemy force proves to be a deadly force. Then the enemy forces remind the TV viewers about the “behind-the-scenes” acts of courage that can play an important part in any planned military operation.



The makers of military construction equipment have joined forces with the U.S. Department of Agriculture. Together, those two groups plan to discover and evaluate new fluids, fluids that can expand the number of conditions in which military construction equipment functions efficiently.



At the present time, the joint investigation has chosen to focus on bio-based hydraulic fluids. Such fluids are made from vegetable oils. Farmers who grow rapeseeds, sunflowers, corn, soybeans, canola plants, or coconuts applaud any acceptance of bio-based hydraulic fluids. Meanwhile, the makers of military construction equipment evaluate the lubrication abilities possessed by those same fluids.

The makers of military construction equipment appreciate the range of conditions in which their equipment needs to perform. By the same token, members of the military demand optimal performance from all manner of purchased construction equipment. The success of one military operation could well depend on the efficient operation of bulldozers, scapers, graders, loaders and cranes.



Each of those various pieces of equipment must be tested in a field setting. Evaluation of the test results should aid assessment of the important characteristics displayed by bio-based hydraulic fluids. Evaluation of the tested military construction equipment should yield measurements for three top-priority features, three of the features most-desired by users of construction equipment.

What are those features? One is coating thickness, the amount of lubricant that sticks to the moving parts on the construction equipment. A second feature is viscosity, the degree to which the lubricant resists changes to its form. The third feature is specific gravity, a measurement that is really a comparison. The specific density of a hydraulic fluid indicates how its density compares to the density of water.

Why does the military need to carry-out field tests when measuring the coating thickness, viscosity or specific gravity of bio-based hydraulic fluids? Can’t the appropriate personnel evaluate the performance of military construction equipment in a laboratory setting?

No, the combination of conditions in the laboratory can not duplicate properly the combination of conditions that a fighting force might find in the field. There, the temperatures might rise or fall precipitously. There, moisture of other elements in the air might act to diminish the performance of a less-than-perfect hydraulic fluid.



That is why the military needs to schedule field tests on any military construction equipment, when the lubrication of that equipment depends, for the first time, on bio-based hydraulic fluids. The military can not deny the apparent economic benefits associated with bio-based hydraulic fluids. Yet military leaders in the U.S. want some assurance that unforeseen problems will not eat-up any money saved by a switch from petroleum-based to bio-based hydraulic fluids.

Many American farmers hope that leaders in the U.S. military will gain that assurance by examining the results from planned field tests.

Mining Equipment: Forrestania Nickel Project

Western Areas plans to develop five mines at the Forrestania Nickel Project site by 2011 increasing their need for mining equipment, with targeted production of 35,000t per annum of nickel.

The Forrestania Nickel Project is located 400km east of Perth, Western Australia. The first mine to be developed is the Flying Fox containing some of the highest grade nickel in the world. The project also includes Archean Greenstone belts and substantial exploration potential. Two additional planned underground mines - Cosmic Boy and Diggers South - are wholly owned by Forrestania Nickel Project.

MSloane Consulting can help you assess whether brand new or used mining equipment is best for a particular mining function or for an entire project based on your financial position, project life-cycle, and post-project equipment valuation, asset liquidation and disposition scenarios.

The first stage is fully commissioned with an ore capacity of 300,000tpa. The second stage is scheduled for March 2010 to treat ore from the Spotted Quoll mine. Major infrastructure such as grid power, roads, water, tailings disposal and an airstrip is set for completion during the second stage.

Western Areas’ objective is to increase the capacity of the high-quality mineral resources at Forrestania to 40,000t of nickel in 2009. The Flying Fox mine started production in 2008 and produced 200,597t at 4.05%, containing 8,118t of nickel in concentrate.