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Project Management Update from Harare

REPORT 

By Peter Banda

Harare, Zimbabwe
________________________________________________________________________

Project News from Zimbabwe

PPC to spend $280 million on Zimbabwe capital expansion projects

PRETORIA Portland Cement (PPC), Zimbabwe’s largest cement firm, has raised its capital spending budget on expansion projects to about $280 million, a senior company official said in a statement this week. Chief Executive Mr Ketso Gordhan said PPC would spend US$80 million on building a cement mill in Harare to be commissioned in 2016.
This additional spending will increase PPC’s capital spending budget by about 30 percent from the original $200 million. Last year, the company announced a capital expenditure budget of $200 million to construct a clinker plant in Mt Darwin and a cement mill in Tete Province, Mozambique. The new Harare cement mill is expected to boost operating efficiencies for the company, which is also planning to close “less efficient mills” at its Bulawayo factory.

“PPC expansion plans (will) be achieved by backward integration in a phased approach,” said Mr Gordhan. “First, (will be the) construction of 100 tonnes per hour cement mill (or 700 000 tonnes per annum) in Harare for $80 million . . . to be commissioned in 2016.”

This will be followed by construction of a clinker plant and a mill at a cost of $200 million. The Harare mill will be funded by a corporate loan to be secured against PPC Zimbabwe’s balance sheet.

“The modern efficient mill in Harare gives a competitive advantage and phased capital expenditure approach reduces risk,” said Mr Gordhan.

On operations, Mr Gordhan said the prevailing liquidity constraints in the economy had led to a slowdown in local demand. Zimbabwe, which adopted the multiple currency system in 2009, is facing serious liquidity challenges due to a number of factors, including subdued exports. PPC also faces stiff competition from Lafarge and Sino Zimbabwe.

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About the Author

140220-pmwj20-banda-IMAGE1 BANDAPeter Banda flag-zimbabwe

Harare, Zimbabwe

Peter Banda is an agile Portfolio Manager with Change Management, Marketing & Project Management Skills, and an accomplished entrepreneur with broad stakeholder management experience. He is a founder of Zimbabwe’s largest Association of Project Managers with a membership of over 1000, Project Management Zimbabwe (PMZ – formerly called Project Management Institute of Zimbabwe). He has worked in both the private & public sectors during the last 20 years in Zimbabwe, Botswana & South Africa. Peter is a born & passionate teacher, mentor & trainer with skills ranging from Personal Development Planning to Project Management. Peter has presented & published over 20 papers at high profile international conferences & leading newspapers & publications respectively during the last 8 years.

Peter is currently Secretary- General & CEO of PROJECT MANAGEMENT ZIMBABWE (PMZ). Responsibilities cover strategic navigation of PMZ towards the vision covering board advisory and stakeholder management. He was previously a Higher Education Examiner, Facilitator, Lecturer, Curriculum Developer and Assessor for both local and International Diploma and Degree courses for the Zimbabwe Ministry of Higher & Tertiary Education. He also served as an Examiner, Assessor and Facilitator on for SpringSoft in South Africa. Peter holds a Bachelors (Hon.) degree and MSc qualification, and is currently studying for a PhD & PMP exams. A God fearing father of 2 lovely daughters & 1 son, Peter likes reading & researching current affairs, coaching others to realise their dreams, and watching soccer & cricket. Peter Banda can be contacted at PMIZ National Secretariat Office [email protected]

Welcome to the September 2014 Edition of the PM World Journal

David Pells,

Managing Editor

Addison, Texas, USA
________________________________________________________________________

Welcome to the September 2014 edition of the PM World Journal (PMWJ). This month’s edition contains 31 articles, papers, reports and book reviews by 37 different authors in 17 different countries. An additional 30+ news articles about projects and project management around the world are included. Around 30 countries are represented by authors or subjects this month. While the reputation and readership of the PMWJ continue to grow, based on the contributions and support of so many authors around the world, please consider sharing this month’s edition with others in your network.

Invitation to Share Knowledge

We invite you to share your knowledge and experience related to program, project and portfolio management. A wide variety of articles and papers, case studies and reports, book reviews and news stories are included in the PMWJ each month. Share knowledge and gain visibility for you or your organization; publish an article, paper or story in the PMWJ. See our Call for Papers in the news section of the PMWJ this month; if interested in submitting something for publication, check out the Author Guidelines on www.pmworldjournal.net, then just send your original work to me for the next edition at [email protected].

This month in the Journal

We begin with 5 Featured Papers this month, by authors in three different countries, including three authors in the Sultinate of Oman. Ahmed Al-Abri in Oman has contributed a paper titled “Optimizing the Strategy of Technical Bid Analysis using Multi Attribute Decision Management Models.” Saaed Al-Shehhi of Oman has authored “Analytical Hierarchy Process to Determine Minimum Attractive Rate of Return for Exploration and Production Projects in Oman.” Musallam Al-Awaid of Oman has authored “Oman Oil and Gas Cost Estimating vs. the GAO’s Best Practices in Capital Budgeting – A Benchmark Study.” These three authors were referred to the PM World Journal by Dr. Paul Giammalvo of Jakarta who has been teaching project management workshops in Oman. The three authors were workshop participants. Thank you, Paul!

Trian Hendro Asmoro from Indonesia has also contributed a new featured paper titled “Facing Project Cost Exposure during Front End Loading (FEL).” Dr. O. Chima Okereke, of Port Harcourt, Nigeria but currently residing in UK, has also contributed a new paper titled “Project Management as a Tool to Facilitate the Establishment of Knowledge Economy in Nigeria.” Trian and Chima are previous authors and are welcomed back this month. Featured Papers are generally significant works that contribute to the P/PM literature, often by academic researchers. If you are associated with an academic institution, involved in serious research related to project or program management, and are not required to publish only in refereed journals, consider submitting your research results for PMWJ publication. We publish quickly and can assure you that your paper will be read.

6 Series Articles are included this month, by 8 authors in 6 different countries. Another article in the series on the broad topic of Maturity in Project Management within organizations by Russell Archibald, PhD (Hon) (Mexico) and Darci Prado, PhD (Brazil) is included this month. Their article is titled “Impact of PPPM Maturity on the Success of Organizational Change Projects in Brazil.” Don’t miss this new article on this important topic by two leading authorities on the subject. Another Risk Doctor Briefing is included this month, this one by Crispin “Kik” Piney in France titled “Three Essential Elements of Risk.” Alan Stretton, PhD (Hon) in Australia is the author of “Categorizing Programs”, the second in a “Series on Project and Program Categorization.” Prof. John-Paris Pantouvakis, Chair of IPMA’s Education and Training Board, is back with another article titled “IPMA Education and Training Moving Forward.”

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About the Author 

david-pellsDAVID PELLSflag-usa

Managing Editor, PMWJ 

David L. Pells is Managing Editor of the PM World Journal, a global eJournal for program and project management, and Executive Director of the PM World Library. David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a variety of programs and projects, including energy, engineering, construction, defense, transit, high technology and nuclear security, and project sizes ranging from several thousand to ten billion dollars. He has been an active professional leader in the United States since the 1980s, serving on the board of directors of the Project Management Institute (PMI®) twice. He was founder and chair of the Global Project Management Forum (1995-2000), an annual meeting of leaders of PM associations from around the world. David was awarded PMI’s Person of the Year award in 1998 and Fellow Award, PMI’s highest honor, in 1999. He is also an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and Russian Project Management Association SOVNET. From June 2006 until March 2012, he was the managing editor of the globally acclaimed PM World Today eJournal. He occasionally provides high level advisory support for major programs and global organizations. David has published widely, spoken at conferences and events worldwide, and can be contacted at [email protected].

To view other works by David Pells, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/david-l-pells/.

For more, visit www.pmworldjournal.net and www.pmworldlibrary.net.

Series on Program Management: Transitioning to Program Management – Part 1

SERIES ARTICLE

The Ah Ha Moment

By Russ Martinelli, Jim Waddell, Tim Rahschulte

Program Management Academy

Oregon, USA

________________________________________________________________________

Program management has been the basis for developing products, services, infrastructure capabilities, and for managing transitional change initiatives for decades. Its use however, has become more wide-spread in recent years. Not surprisingly we have found that how program management is established and practiced can vary greatly. From companies that use it as an important extension of their business processes, to other companies that use program management in a more limited role such as providing administrative and facilitation support, many times supporting the firm’s project management efforts.

Increasingly organizations are recognizing the importance of program management as a key factor in improving and achieving their business results. Supporting this recognition, PMI states that, “A key difference between program management and project management is the strategic focus of programs. Programs are designed to align with organizational strategy and ensure organizational benefits are recognized.”

Through our careers we have seen that a transition to program management can yield significant improvement in a firm’s ability to achieve their strategic goals, competitive position, and financial results. To realize such improvement requires an awareness, willingness, and commitment to change the organization’s culture, overcome internal politics, and establish a new mindset regarding roles, responsibilities, and functions.

We begin this four-part article series with a case study experienced by the authors. The case highlights an organization which has embarked on a program management transition. In this case, program management is not new to the organization. Rather, it is a case where a once strong and effective program management function was left to atrophy due to a period of senior management disinvestment. We use this real-world example, titled “The Ah-Ha Moment”, to underscore the fact that sustainable change has to be driven from the top of the organization for effectiveness and sustainability. Additionally, we will introduce the concept of the program management continuum and show why it is critical for senior leaders, functional and line managers, and program and project managers within an organization to recognize and understand where they are on the continuum in order to align expectations, properly set roles and responsibilities, as well as empower and set decision-making boundaries for their various players and positions.

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The PMWJ series of articles on program management is authored by Russell Martinelli, Tim Rahschulte and James Waddell, principle advisors at the Program Management Academy in Oregon, USA.   More about the authors and the Program Management Academy can be found at http://www.programmanagement-academy.com/.

About the Authors

pmwj26-sep2014-martinelli-AUTHOR1 MARTINELLIRuss Martinelliflag-usa

Oregon, USA

Russ Martinelli is a senior program manager at Intel Corporation, one of the world’s largest semiconductor companies. Russ has many years of experience leading global product development teams in both the aerospace and computing industries. Russ is also a founder of the Program Management Academy (www.programmanagement-academy.com), and co-author of Leading Global Project Teams and the first comprehensive book on program management titled Program Management for Improved Business Results. Russ can be contacted at [email protected].

To view other works by Russ Martinelli, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/russ-martinelli/

pmwj26-sep2014-martinelli-AUTHOR2 WADDELLJim Waddellflag-usa

Oregon, USA

Jim Waddell, former PMO director in the high-tech industry, is a founder of the Program Management Academy (www.programmanagement-academy.com) where he consultants in program management and mergers & acquisitions. He has held a variety of management positions in the high tech and energy industries, has been a speaker at numerous conferences, and is a co-author of two books: Leading Global Project Teams and Program Management for Improved Business Results. Jim can be contacted at [email protected].

To view other works by Jim Waddell, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/jim-waddell/

OLYMPUS DIGITAL CAMERATim Rahschulteflag-usa

Oregon, USA

Tim Rahschulte is co-author of Program Management for Improved Business Results and an executive director at the Program Management Academy. Tim is also responsible for international management and leadership studies at George Fox University in Oregon. He consults with state governments in the USA on matters of organizational change as a business transition architect. Contact Tim at [email protected].

To view other works by Tim Rahschulte, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/tim-rahschulte/

Series on Categorizing Projects and Programs: Categorizing Programs

SERIES ARTICLE

By Alan Stretton

Sydney, Australia

________________________________________________________________________

ABSTRACT

This is the second of a series of four working/discussion papers on categorizing projects and programs. The context of these papers is overall categorizations as they have appeared in the literature. These currently vary widely, and this series is concerned with exploring possibilities for bringing them closer together.

The first paper (Stretton 2014f) focused on project categorizations, most of which were found to be a mixture of industrial/ social sectors (Application Sectors) in which projects are undertaken (e.g. aerospace, defence), and types of projects (Project Types) which are undertaken in many, if not most, of these Application Sectors (e.g. IT projects, R&D projects). This second paper focuses on program categorizations, where it finds a similar mixture. The components of two prominent program categorizations are re-allocated into Application Sectors and Program Types, and presented as a matrix which illustrates the intersections between Program Types and the various Application Sectors in which they are undertaken.

This paper also identifies five Program Types which are virtually identical to the five key Project Types that emerged from the first paper. This leads to amalgamating these common elements, which are described as key Program/Project Types.

INTRODUCTION

There have been comparatively few categorizations in the literature specific to programs. I attempted one in Stretton 2009b, which was broadly based on listings in Japan’s P2M (PMAJ 2008), which are the most complete I have come across. P2M has two major listings, namely Types of Programs, and P2M Application Areas. As will be seen, both contain a mixture of Program Types and Application Sectors.

P2M defines a program as “an undertaking in which a group of projects for achieving a project mission are organically combined”. This is much the same as Maylor et al 2006, who say that programs “involve the coordinated management of a series of interconnected projects and other non-project work, for the delivery of a specific package of benefits”. The slightly more precise latter definition is adopted here.

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Editor’s note: This series of articles on the categorization of projects and programs is by Alan Stretton, PhD (Hon), Life Fellow of AIPM (Australia), a pioneer in the field of professional project management and one of the most widely recognized voices in the practice of program and project management.   Long retired, Alan is still accepting some of the most challenging research and writing assignments; he is a frequent contributor to the PM World Journal. See his author profile below

About the Author

alan strettonAlan Stretton, PhD     flag-australia 

Faculty Corps, University of Management

and Technology, Arlington, VA (USA)

Life Fellow, AIPM (Australia)

Alan Stretton is one of the pioneers of modern project management. He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA. In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects. He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France). Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992. He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996. He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management. He has published over 140 professional articles and papers. Alan can be contacted at [email protected].

To see more works by Alan Stretton, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/alan-stretton/.

Risk Doctor Briefing: Three Essential Elements of Risk

SERIES ARTICLE

Crispin “Kik” Piney

The Risk Doctor Partnership

France
________________________________________________________________________

All risk management standards agree that the goal of risk management is to enhance the chances of success of the relevant endeavour. However each of them provides a different definition of risk: ISO31000:2009 calls it “effect of uncertainty on objectives”, the PMI PMBOK® Guide has “an uncertain event or condition that, if it occurs, has a positive or negative effect on the project’s objectives”, and the preferred Risk Doctor definition is “uncertainty that matters”. Each description is true, but only partly so. This matters because until we know what we are dealing with, we cannot manage it in the best way possible:

  • If we use the ISO definition, then our first thought will be to focus on the effect;
  • If we follow PMI, then we will start from the potential occurrence;
  • With the Risk Doctor definition, we start from uncertainty.

Each of these, the effect, the event and the uncertainty, is a component of risk, but, on its own it is not a risk. Even taken in pairs they do not provide the full picture:

  • an effect plus an event is an issue;
  • an event plus an uncertainty is a prediction;
  • an uncertainty plus and effect is a concern.

It is only when you put all three together that you can see what a risk is made of, and use this information to decide on what, if anything, to do about it. Of course, this then requires a longer definition, but the goal enhancing the chances of success is worth the effort.

But what is “success”? It is more than simply “meeting objectives”; it must also include the condition of “complying with project constraints” in order for the final result to remain within scope. Given this clarification, a more complete definition is “Risk consists of three parts: an uncertain situation, the likelihood of occurrence of the situation, and the effect (positive or negative) that the occurrence would have on project success“.

The three-part definition helps with three important stages of the risk management process:

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About the Author

pmwj26-sep2014-Piney-AUTHOR IMAGECrispin (“Kik”) Piney flag-france

France

After many years managing international IT projects within large corporations, Crispin (“Kik”) Piney, B.Sc., PgMP is a freelance project management consultant based in the South of France. His main areas of focus are risk management, integrated Portfolio, Program and Project management, scope management and organizational maturity, as well as time and cost control. He has developed advanced training courses on these topics, which he delivers in English and in French to international audiences from various industries. In the consultancy area, he has developed and delivered a practical project management maturity analysis and action-planning consultancy package. He has carried out work for PMI on the first Edition of the Organizational Project Management Maturity Model (OPM3™) as well as participating actively in fourth edition of the Guide to the Project Management Body of Knowledge and was also vice-chairman of the Translation Verification Committee for the Third Edition. He was a significant contributor to the second edition of both PMI’s Standard for Program Management as well as the Standard for Portfolio Management. In 2008, he was the first person in Europe to receive PMI’s PgMP credential. He is co-author of PMI’s Practice Standard for Risk Management. He collaborates with David Hillson (the “Risk Doctor”) by translating his monthly risk briefings into French. He has presented at a number of PMI conferences and has published formal papers. He can be contacted at [email protected].

IPMA Education and Training Series: “IPMA Education & Training moving forward”

SERIES ARTICLE

pmwj26-sep2014-Pantouvakis-IMAGE1 LOGO

http://ipma.ch/education 

Prof John-Paris Pantouvakis

Chair, IPMA Education and Training Board

Athens, Greece
________________________________________________________________________

Established in 2007, the IPMA Education &Training Board (E&T Board) deals with the issues concerning the complex relationships between education, training and employment in professional project management. The ambition of the Board is to play a key role in the continuous development of professional competences, bringing together the relevant stakeholders such as project management trainees, trainers, training organizations, universities, professionals, governments and other authorities and organizations that have an active interest in the area.

The primary beneficiaries from the work of the E&T Board are the Member Associations (MAs) of IPMA and through them the professional project management community around the globe. The output of the E&T Board will be considered successful when MAs increase their visibility and impact by developing products and services that enhance project management performance.

To this purpose, the IPMA E&T Board:

  • Actively promotes the value of project management E&T.
  • Networks with appropriate E&T related providers (training organizations, universities, authors, publishers, developers, PM training video providers, IPMA World Congress organizers etc.).
  • Develops the project management E&T excellence concept and awards recognitions to qualified individuals (e.g. best E&T presentation at the 2013 IPMA World Congress).
  • Supports and increases the visibility and impact of E&T within MAs.
  • Facilitates the sustainable development of new MAs through E&T.
  • Supports E&T related initiatives of the Young Crew and liaises with other IPMA Boards on education & training aspects.

The E&T Board does not directly provide training courses, with the exception of the Training Aid Programme (TAP) for interested groups of professionals in countries without an IPMA MA and the IPMA Advanced Courses for further development of project management competences complementary to the more rigorous four-level IPMA Certification system. As a world leading organization in project management, IPMA has a great responsibility for the development of quality E&T products and services and for this reason it has developed a range of products and services such as:

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Editor’s note: This series of articles is by members of the IPMA Education and Training (E&T) Board or other IPMA leaders on the subject of project management education, training, careers and related topics. More information about the IPMA E&T can be found at http://ipma.ch/education.

About the Author

John-Paris-Pantouvakis

JOHN-PARIS PANTOUVAKIS flag-greece flag-almaty-kazakhstan

National Technical University of Athens, Greece,

Nazarbayev University, Astana, Kazakshtan

& Chairman IPMA Education & Training Board

 

Athens, Greece & Astana, Kazakshtan

John-Paris Pantouvakis, M.Eng., M.Sc., PhD, C.Eng; following a ten year career in industry moved to Academia and is now Professor at the National Technical University of Athens (NTUA) and Visiting Professor at Nazarbayev University in Kazakshtan. John-Paris is also an Adjunct Lecturer and a Postgraduate Module Coordinator at the Hellenic Open University. He is the President of PM-Greece, the Greek IPMA Member, a First Assessor for IPMA Certification in Greece and a trained IPMA Project Excellence Awards Lead Assessor. He also serves as a Member of the Editorial Board of several Journals and as an International Editorial Advisor for the PM World Journal. He has organized several project management events in Greece including chairing the 26th IPMA World Congress (2012). More information is available at his personal website (http://users.ntua.gr/jpp/jpp_en.htm).

Series on Program Management: Introduction to New Series: Transitioning to Program Management

SERIES ARTICLE 

By Russ Martinelli, Jim Waddell, Tim Rahschulte

Program Management Academy 

Oregon, USA
________________________________________________________________________

Organizational transformation such as introducing program management into an organization, or even changing the existing program management function, is a challenging endeavor. Fortunately, we have seen that a transition to program management can yield significant improvement in a firm’s ability to achieve their strategic objectives, competitive position, and financial returns. To realize such improvement requires an awareness, willingness, and commitment to change the organization’s culture, overcome internal politics, and establish a new mindset regarding roles, responsibilities, and functions.

In the book titled “Program Management for Improved Business Results, 2nd Edition, we introduced the program management continuum as a way to demonstrate the variations in the way program management is used within companies today, and to serve as a model to guide transition to higher levels of program management maturity. An important element of the continuum is something we refer to as the point of transition. This is a philosophical decision point where the senior leaders of an organization make a purposeful decision to transition their organization from being primarily project-oriented to being program-oriented.

The desire to cross the transition point is the call to action that triggers a number of organizational changes that can affect all levels of management and employees. It changes the rules of engagement, decision-making hierarchies, teams and team structures, and requires competencies different than those prevalent in traditional project-oriented organizations. This series of articles for PM World Journal focuses on the key aspects of organizational transition to program management.

We should point out that the articles are written from a practitioner’s point of view. We work in industry, and therefore our experience and perspectives are first-hand and real world. We welcome your comments, perspectives, challenges and other feedback. The following is a set of abstracts for the four articles presented in this series titled “Transitioning to Program Management”.

Part 1 – The Ah-Ha Moment

We begin this article series with a brief case study of an organization which has embarked on a program management transition. In this case, program management is not new to the organization. Rather, it is a case where a once strong and effective program management function was left to atrophy due to a period of senior management disinvestment. We use this real-world example, titled “The Ah-Ha Moment”, to introduce the Program Management Continuum and to underscore the fact that sustainable change has to be driven from the top of the organization.

More…

To read entire article (click here)

The PMWJ series of articles on program management is authored by Russell Martinelli, Tim Rahschulte and James Waddell, principle advisors at the Program Management Academy in Oregon, USA.   More about the authors and the Program Management Academy can be found at http://www.programmanagement-academy.com/.

About the Authors

pmwj26-sep2014-martinelli-AUTHOR1 MARTINELLIRuss Martinelliflag-usa

Oregon, USA

Russ Martinelli is a senior program manager at Intel Corporation, one of the world’s largest semiconductor companies. Russ has many years of experience leading global product development teams in both the aerospace and computing industries. Russ is also a founder of the Program Management Academy (www.programmanagement-academy.com), and co-author of Leading Global Project Teams and the first comprehensive book on program management titled Program Management for Improved Business Results. Russ can be contacted at [email protected].

To view other works by Russ Martinelli, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/russ-martinelli/

pmwj26-sep2014-martinelli-AUTHOR2 WADDELLJim Waddellflag-usa

Oregon, USA

Jim Waddell, former PMO director in the high-tech industry, is a founder of the Program Management Academy (www.programmanagement-academy.com) where he consultants in program management and mergers & acquisitions. He has held a variety of management positions in the high tech and energy industries, has been a speaker at numerous conferences, and is a co-author of two books: Leading Global Project Teams and Program Management for Improved Business Results. Jim can be contacted at [email protected].

To view other works by Jim Waddell, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/jim-waddell/

OLYMPUS DIGITAL CAMERATim Rahschulteflag-usa

Oregon, USA

Tim Rahschulte is co-author of Program Management for Improved Business Results and an executive director at the Program Management Academy. Tim is also responsible for international management and leadership studies at George Fox University in Oregon. He consults with state governments in the USA on matters of organizational change as a business transition architect. Contact Tim at [email protected].

To view other works by Tim Rahschulte, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/tim-rahschulte/

Maturity in Project Management Series: Impact of PPPM Maturity on the Success of Organizational Change Projects in Brazil

SERIES ARTICLE

By Russell D. Archibald

San Miguel de Allende, Mexico

Darci Prado

Minas Gerais, Brazil
________________________________________________________________________

The Brazilian Experience with PPPM (Portfolio, Program and Project Management) Maturity is distinguished by longevity of the research (since 2005); by frank acceptance by the PPPM community and the broad range of participants; by the huge amount of results made available on the web site, and by the consistency of those results. In this article we will show the impact of PPPM Maturity on organizational change category of projects in Brazil.

This PPPM research program was initiated by the authors in 2005 and by 2012 it involved 434 participating organizations, including companies, governmental agencies (both directly managed and indirectly managed), and non-governmental organizations/NGOs. The total of projects involved is 8,680. Four major reports are available for download free on-line (www.maturityresearch.com):

  • General Report: includes analysis of all types of organizations, all categories of projects and all business areas;
  • I. T. Report: dedicated only to the I.T. category of projects;
  • Construction Industry Report: dedicated only to Engineering & Construction categories of projects;
  • Organizational Change Report: dedicated only to transformational projects that are related with redesign of processes and the business, reduction of expenses, acquisition and integration of competing companies, etc.

In this article we will continue to show some results in the 2012 survey related to Organizational Change Projects. This is a very important category of projects, since it occurs in all organizations all the time.

In the 2012 PM maturity research there were 72 participating organizations from this area, with 1,224 projects. Final results showed an average maturity level of 2.74. The reader should be aware of the fact that this report is totally dedicated to Organizational Change Projects. Here are some examples of projects in this category:

  • Process Mapping / Business
  • Redesign of processes / business
  • Mapping and redesign of the organizational structure
  • Reduction expenses program
  • Reduction costs program
  • Revenue increase program
  • Capital management program
  • Increase of productivity of routine processes program (PDCA / SDCA)
  • Increase of profitability of processes / business program
  • Deployment goals (Management by Guidelines)
  • Acquisition and integration of competing companies
  • Big improvements in project management
  • Formation and launch of a new company
  • Consolidation of divisions and downsize of companies
  • Big event of litigation.

In this article we will show some Organizational Change Projects results in the 2012 PM maturity research related to leading indicators and some of the groups that the database records. The indicators are:

  • Maturity
  • Success
  • Delay
  • Cost Overrun.

This article is divided into two main parts:

  1. Summary results for the Organization Change category.
  2. Analysis of these results in four groups:

More…

To read entire article (click here)

Editor’s note: The Project Management Maturity series of articles by Russell Archibald & Prof Darci Prado is based on their extensive research on this topic in Brazil, the United States and other countries. Russ is one of the pioneers in the project management field and the originator of the Archibald Project Categorization Model. Darci is the developer of the Prado Project Management Maturity Model which has been successfully implemented by many organizations in Brazil. More about this model and related research can be found at http://www.maturityresearch.com/. 

About the Authors

russell d archibaldRussell D. Archibaldflag-usa-mexico

San Miguel de Allende, Mexico

Russell D. Archibald: PhD (Hon) ESC-Lille (Fr), MSc (U of Texas) & BS (U of Missouri) Mechanical Engineering, PMP, Fellow PMI and Honorary Fellow APM/IPMA (member of the Board of IPMA/INTERNET 1974-83), held engineering and executive positions in aerospace, petroleum, telecommunications, and automotive industries in the USA, France, Mexico and Venezuela (1948-1982). Russ also had 9 years of active duty as a pilot officer with the U.S. Army Air Corps (1943-46) and as a Senior Pilot and Project Engineer with the U. S. Air Force (1951-58.) Since 1982 he has consulted to companies, agencies and development banks in 16 countries on 4 continents, and has taught project management principles and practices to thousands of managers and specialists around the world. He is co-author (with Shane Archibald) of Leading and Managing Innovation: What Every Executive Team Must Know About Project, Program, and Portfolio Management (2013); author of Managing High-Technology Programs and Projects (3rd Edition 2003), also published in Russian, Italian, and Chinese; other books (in English, Italian, Japanese, and Hungarian); and many papers on project management. Web-site: http://russarchibald.com E-mail: [email protected]   

To see other works by Russ Archibald, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/russell-d-archibald/

pmwj18-jan2014-archibald-PHOTO PRADODarci Prado, PhDflag-brazil

Minas Gerais, Brazil

Darci Prado is a consultant and partner of INDG in Brazil. He is an engineer, with graduate studies in Economical Engineering at UCMG and PhD in Project Management from UNICAMP, Brazil. He has worked for IBM for 25 years and with UFMG Engineering School for 32 years. He holds the IPMA Level B Certification. He was one of the founders of Minas Gerais State and Parana State PMI chapters, and he was member of Board Directors of Minas Gerais State PMI chapter during 1998-2002 and member of the Consulting Board during 2003-2009. He was also the president of IPMA Minas Gerais State chapter during 2006-2008. He is conducting a Project Management maturity research in Brazil, Italy, Spain and Portugal together with Russell Archibald. He is author of nine books on project management and is also author of a methodology, a software application, and a maturity model for project management. Darci can be contacted at [email protected].

To see other works by Darcy Prado, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darci-prado-phd/

Time Management: The Indispensable Force behind Successful Disaster Recovery

SECOND EDITION                                                         

Brenda N. Yombo, PMP and James S. DeGenova, PMP

CohnReznick Government

Bethesda, Maryland, USA
________________________________________________________________________

Abstract

Disaster management aims to reduce or avoid potential losses from hazards, assure prompt and appropriate assistance to victims of a disaster, and achieve a rapid and effective recovery. A comparison between the project management process groups and disaster management activities that span all the phases of disaster management indicates that in order to successfully execute a project, the project manager needs to effectively manage time.

Effective time management is critical to the success of any project manager’s work, but it is imperative to a disaster recovery project. Achieving properly timed milestones within the scope of a project will deliver the best outcome over its full lifecycle; conversely, poor time management almost certainly will negatively impact the project as a whole.  Due to the fact that disaster recovery projects involve multiple, often overlapping timelines and deliverables that must be accomplished with minimal delay, it is imperative that project managers incorporate time management accountability mechanisms into each phase of a project. By examining challenges and lessons learned from real-world, firsthand experiences, project managers will be able to extrapolate best practices in time management that they can apply to their own projects and programs, both in the present with tangible results and in the future.

Introduction

Disaster management aims to reduce or avoid potential losses from hazards, assure prompt and appropriate assistance to victims of a disaster, and achieve a rapid and effective recovery. The disaster management cycle illustrates the ongoing process by which governments, businesses, and civil society plan for and reduce the impact of disasters; react during and immediately following a disaster; and take steps to recover after a disaster has occurred (Warfield, 2005). It is commonly agreed that there is no way of neutralizing all negative impacts resulting from disasters. Efforts can be made, however, to reduce their impacts. In this regard, effective disaster management is a key element in good governance (UN/ISDR, 2002).

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To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 1st Annual University of Maryland Project Management Symposium in College Park, Maryland, USA and included in the conference Proceedings in June 2014. It is republished here with permission of the author and the Project Management Center for Excellence at the University of Maryland.

About the Authors 

pmwj26-sep2014-Yombo-AUTHOR1 YOMBOBrenda N. Yomboflag-usa

Maryland, USA

Brenda N. Yombo, MBA, PMP is a Senior Consultant with CohnReznick Advisory group-Government Services. Brenda has over 12 years of project management, accounting and consulting experience. Brenda has worked on a number of projects providing support and as project Manager. Currently she serves as a team member on the Department of Housing and Urban Development’s Mark-to-Market Multifamily project, a multi-million dollar project analyzing Audited Financial Statements, liaising with HUD Project Managers, property owners and OAHP officials. She also works with the compliance monitoring team on the Illinois Disaster Recovery program (IDRP) testing grants provided to grantees and the work performed on various projects to rebuild Chicago after the IKE disaster. She also assists on various consulting projects in the CohnReznick Advisory Group (CRAG) – Government Services team.

Prior to immigrating to the US in 2010, Brenda gained experience in handling multiple management consultancy contracts, delivering on schedule and within allocated budget. She was a Project Coordinator for projects of Christoffel Blinden Mission (CBM) an international non-profit that strives to remove the barriers that marginalize people with disabilities in the most disadvantaged societies in the world. It does this by working with partner organizations in these regions, by influencing policy at all levels and by responding to emergencies and natural disasters. Brenda has a MBA degree (Accounting and Finance) from Maastricht School of Management, Netherlands and a Bachelor of Commerce (Accounting) degree from Makerere University, Kampala-Uganda. A member of the PMI Silver Spring Chapter, Brenda also holds certifications from the Association of Chartered Certified Accountants (ACCA) and Project Management Professional (PMP). She can be contacted at [email protected].

pmwj26-sep2014-Yombo-AUTHOR2 DEGENOVAJames DeGenovaflag-usa

Maryland, USA

James DeGenova, PMP, CFE, is a senior manager at CohnReznick Advisory group-Government Services in Bethesda, Maryland, USA. For over 12 years, James has provided financial management, database creation and maintenance, development and testing of “next gen” IT applications and solutions, cost analyses, accounting, and consulting services to federal, state, and local government agencies and private companies. His technical knowledge of federal laws and regulations aids the Firm’s leadership in pursuing additional business opportunities. James has also planned, executed, and managed numerous budgets for private corporations and has assisted with the creation, implementation, and management of several federal government-sponsored projects.

Presently, James coordinates integrity monitoring activities and oversees anti-fraud, waste and abuse initiatives for the State of New Jersey’s Department of Community Affairs in its disaster recovery efforts to heal from Hurricane Sandy. Previously, James served as the compliance review monitor for HUD’s Mark-to-Market (M2M) program; currently, he manages direct mortgage portfolios for M2M. His previous experience includes providing litigation consulting, forensic accounting, and project management support to the Department of Interior’s Office of Historical Trust and Accounting in the single largest class action lawsuit levied against the federal government.

James has the unique ability to plan, implement, and manage large-scale government contracts, programs and database administration, IT support, and budgets while tempering risks, oversight, and resolving issues under strict time constraints. His success in pursuing and securing new Firm business opportunities is a result of his “ambassador-style” management approach which sets and maintains a positive tone throughout the lifecycle of each project he leads.

James has a B.A., Economics (with a Specialization in Financial Markets) from Virginia Polytechnic Institute and State University and holds the following certifications: Certified Fraud Examiner (CFE), Project Management Professional (PMP) and Certified Internal Controls Auditor (CICA). Professional affiliations include the Project Management Institute (PMI) and Association of Certified Fraud Examiners (ACFE). He is actively involved with District Sports, Soccer based non-profit who raises money and awareness through soccer leagues in the District of Columbia to promote community development. James can be contacted at [email protected]

Toward a Framework for Project Management Information Systems Training

SECOND EDITION

J. McCarty1 and M. J. Skibniewski2

1School of Public Health, Office of the Dean

2Department of Civil & Environmental Engineering,

University of Maryland, College Park, Maryland, USA

________________________________________________________________________

ABSTRACT

Organizations are increasingly using specialized software systems to enhance the management of projects, programs, and portfolios. Training delivered within the professional workplace has been well-documented as effective and widely used. However, previous research that examines Project Management Information System (PMIS) training has been limited. This paper proposes an empirically-derived multi-dimensional framework to facilitate improved planning of PMIS training initiatives, advanced measurement of PMIS training outcomes, and enhanced understanding of PMIS training by practitioners and researchers. The proposed framework uses a stakeholder-oriented approach that focuses on the sources and recipients of benefits to classify positive outcomes of PMIS training. Benefits of PMIS training are clustered within the framework into general areas of positive impact which provide context for training outcomes. In addition, the framework builds on existing models for conceptual training benefits realization, with PMIS training outcomes structured according to whether benefits are likely to be realized at the individual, project team, or organizational level. The framework proposed in this paper may contribute to improved understanding of successful PMIS training practices, with several future studies planned. The outcomes of this research have implications in improving workplace learning, promoting professional success in practitioners, and improving the ability of project-focused organizations to achieve their goals and execute their missions.

INTRODUCTION

Training can be utilized to help maximize the benefits realized through the implementation of project, program, and portfolio management software toolsets. However, the relationship between PMIS training and the creation of value is not well understood. Beginning in the 1950’s, organizations began to use specialized project management software to better plan, execute, and track projects. Much research has been published that explores the extent to which training improves knowledge and performance (Salas & Cannon-Bowers, 2001). Utilization and effectiveness of various training delivery methods have been well-explored in the literature (Coppola & Myre, 2002; Sitzmann, Kraiger, Stewart, & Wisher, 2006). Numerous methodologies have been used to extensively evaluate the qualitative and quantitative value of training in corporate and other workplace environments (Kirkpatrick & Kirkpatrick, 2006; Phillips & Phillips, 2007; Westcott-Abudi, 2008).

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Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 1st Annual University of Maryland Project Management Symposium in College Park, Maryland, USA and included in the conference Proceedings in June 2014. It is republished here with permission of the author and the Project Management Center for Excellence at the University of Maryland.

About the Authors

pmwj26-sep2014-McCarty-AUTHOR1 MCCARTYDr. Andrew McCartyflag-usa

University of Maryland

College Park, MD, USA

Dr. Andrew McCarty serves as a Senior Project Manager and Specialist within the School of Public Health at the University of Maryland, College Park. Dr. McCarty’s research focuses on enhanced adult training and workplace learning, advanced techniques to measure training outcomes, and patterns of success in enhancing business performance and achieving strategic objectives. Dr. McCarty’s experience includes serving in senior technology and management consulting roles with premier consulting firms in the Washington D.C. area for clients including many government, private sector, and non-profit organizations. He can be contacted at [email protected]

pmwj26-sep2014-Khan-AUTHOR2 SKIBNIEWSKIDr. Miroslaw Skibniewskiflag-usa

University of Maryland

College Park, MD, USA

Dr. Miroslaw Skibniewski is a Professor in the Center of Excellence in Project Management at the University of Maryland. He is also Editor-in-Chief of Automation in Construction, an international research journal published by Elsevier, and North American Editor of the Journal of Civil Engineering and Management published by Taylor & Francis. An author/coauthor of over 200 research publications, he lectures on information/automation technologies in construction, construction equipment management, and legal aspects of engineering. Miroslaw can be contacted at [email protected]

A Governance Framework for Managing and Engaging Project Stakeholders

SECOND EDITION

Aurangzeb Z. Khan1, Miroslaw Skibniewski2, John H. Cable3

1: Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan;

2: Project Management Center for Excellence, A. James A. Clark School of Engineering, University of Maryland, College Park, MD, USA;

3: Project Management Center for Excellence, A. James Clark School of Engineering, University of Maryland, College Park, MD, USA
________________________________________________________________________

This paper is the result of a collaborative effort between the University of Maryland’s Project Management Center for Excellence and the Department of Management Sciences at COMSATS Institute of Information Technology in Islamabad, Pakistan. It constitutes the first in a series of research articles by the authors which will examine diverse themes relating to the important and evolving subject area of project stakeholder management and engagement.

Abstract

Stakeholders have emerged as a major force to be reckoned with on projects. Organizations have become increasingly aware over time that careful management and engagement of project stakeholders goes hand in hand with a higher likelihood of project success. However, neither academics nor practitioners of project management have developed a comprehensive all-inclusive and dynamic source of reference for managing and engaging stakeholders on projects undertaken in and by organizations.

Based on decades of project experience, and their theoretical and empirical research on project stakeholders, the authors unveil in this paper their governance framework designed to help organizations address all salient aspects and considerations relating to the management and engagement of all stakeholders on their projects. Encompassing four component levels, the framework’s fundamental objective is to ensure that projects stand a higher chance of success and deliver multi-dimensional and sustainable benefits to as many stakeholders as much as possible.

Introduction

Stakeholders are central to all projects in all categories and levels of complexity. They exist across space and time: No project in history has been “stakeholder-less”. All projects are conceived, initiated, planned, executed, controlled, monitored and evaluated by stakeholders for stakeholders. In fact, all projects revolve primarily around their stakeholders, more so than they do around the “iron triangle” conventional parameters of goal/scope, cost and schedule.

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To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 1st Annual University of Maryland Project Management Symposium in College Park, Maryland, USA and included in the conference Proceedings in June 2014. It is republished here with permission of the author and the Project Management Center for Excellence at the University of Maryland.

About the Authors

pmwj26-sep2014-Khan-AUTHOR1 KHANDr. Aurangzeb Z. Khanflag-pakistan

COMSATS Institute of Information Technology

Islamabad, Pakistan

Dr. Aurangzeb Z. Khan is an Assistant Professor in the Department of Management Sciences at the COMSATS Institute of Information Technology in Islamabad, Pakistan. He introduced Pakistan’s first master degree program in project management at his university in the fall semester 2008. His prime areas of research are project stakeholder management, and project monitoring and evaluation, which he teaches to project management graduate-level students. He can be contacted at [email protected]

pmwj26-sep2014-Khan-AUTHOR2 SKIBNIEWSKIDr. Miroslaw Skibniewskiflag-usa

University of Maryland

College Park, MD, USA

Dr. Miroslaw Skibniewski is a Professor in the Center of Excellence in Project Management at the University of Maryland. He is also Editor-in-Chief of Automation in Construction, an international research journal published by Elsevier, and North American Editor of the Journal of Civil Engineering and Management published by Taylor & Francis. An author/coauthor of over 200 research publications, he lectures on information/automation technologies in construction, construction equipment management, and legal aspects of engineering. Miroslaw can be contacted at [email protected]

John-Cable-BioJohn Cableflag-usa

Director, Project Management Center for Excellence

University of Maryland, College Park, MD, USA

John Cable is Director of the Project Management Center for Excellence in the A.J. Clark School of Engineering at the University of Maryland, where he is also a professor and teacher of several graduate courses in project management. His program at the University of Maryland offers masters and PhD level programs focused on project management. With more than 1,300 seats filled annually with students from many countries, including more than 40 PhD students, the program is the largest graduate program in project management at a major university in the United States.

John Cable served in the newly formed U.S. Department of Energy in 1980, where he was involved with developing energy standards for buildings, methods for measuring energy consumption, and managing primary research in energy conservation. As an architect and builder, Mr. Cable founded and led John Cable Associates in 1984, a design build firm. In 1999 he was recruited by the University of Maryland’s Department of Civil & Environmental Engineering to create and manage a graduate program in project management. In his role as founder and director of the Project Management Center for Excellence at Maryland, the program has grown to offer an undergraduate minor, master’s degrees, and a doctoral program. Information about the Project Management Center for Project Management at the University of Maryland can be found at www.pm.umd.edu.

In 2002, PMI formed the Global Accreditation Center for Project Management Educational Programs (GAC). Mr. Cable was appointed to that inaugural board where he served as vice chair. In 2006, he was elected as chairman, a role he held through 2012. As Chair of the PMI GAC, John led the accreditation of 86 project management educational programs at 40 institutions in 15 countries in North America, Europe, the Middle East, Latin America and the Asia Pacific Region. John was awarded PMI’s 2012 Distinguished Contribution Award for his leadership at the GAC. He can be contacted at [email protected].

Project Management and Emergency Management: Dealing with Changes in a Changing Environment

SECOND EDITION                                                         

Costanza Galastri and Blanche Mitchell

Hasset Willis and Company

Washington, D.C., USA
________________________________________________________________________

ABSTRACT

Project management allows organizations to manage change and incorporate emerging needs and requirements while seamlessly providing critical services to stakeholders. Effective project management requires project managers to anticipate issues and plan for “things to go wrong” while maintaining effectiveness and efficiency. Similarly, emergency response requires response agencies and organizations to act effectively and efficiently during and/or immediately following a disaster. In the U.S., emergency response agencies have a long history of managing changing environments.

In recent years, the emergency management community has begun shifting its focus to preparedness capacities needed to respond to “maximum of maximums” scenarios. These planning scenarios are meant to critically stress assets, plans, and procedures at all levels of government and go beyond the capabilities of government solutions. The same process does not exist, yet, in project management. This analysis represents a first attempt to identify emergency management practices that can assist project managers in coping with a “maximum of maximums” scenario during project execution.

THE COMMON CONSTRUCT

Project managers and emergency management practitioners share a long history of coping with changing environments, managing unforeseen conditions, and addressing unanticipated requirements. Established best practices – in both disciplines, require managers to anticipate and plan for potential threats, while maintaining effectiveness and efficiency in project execution. These practices allow project managers and emergency managers to remain agile and responsive while operating within the construct of their respective disciplines.

Further, both disciplines require practitioners to make sound, rapid, and accurate decisions—based on the best information available at the time. Emergency managers and project managers are decision makers who collect, consume, and convey key information in crisis situations. In many instances, this means making decisions based on limited, incomplete information. Just as information, or the lack thereof, can compromise project objectives, bad or delayed information during a crisis can add chaos to an already unstable environment. Nevertheless, as Sawle stated in 1991, “in a crisis, the worst decision is no decision and the second worst decision is a late one.” This statement appears to apply equally to both disciplines.

Despite these similarities, in recent years some differences have begun to emerge. First and foremost, the emergency management community, nationwide, has begun shifting its focus to preparedness capacities needed to respond to catastrophic disasters—maximum of maximums. These “maximum of maximums” scenarios critically stress assets, plans, and procedures at all levels of government and go beyond the capabilities of government solutions. The same process does not exist in project management, yet. This analysis is an attempt to identify emergency management practices useful in assisting project managers in coping with a “maximum of maximums” scenario during project execution.

More…

To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 1st Annual University of Maryland Project Management Symposium in College Park, Maryland, USA and included in the conference Proceedings in June 2014. It is republished here with permission of the author and the Project Management Center for Excellence at the University of Maryland.

About the Authors

pmwj26-sep2014-Galastri-AUTHOR1 GALASTRICostanza Galastriflag-italyflag-usa

Hassett Willis & Company

Washington, DC, USA

Costanza Galastri earned her Bachelor of Arts degree in Political Science from the Universita’ Degli Studi Di Firenze, in Florence, Italy, in 1994. She received a Graduate Diploma in International Studies and a Masters of Arts degree in Strategic Studies and International Economics for Johns Hopkins University, School of Advanced International Studies, in 2002. Ms. Galastri is a highly skilled emergency management and incident response planning consultant. She has more than nine years of expertise in the areas of emergency management and incident response planning, exercise and real-world event evaluation, and lessons learned development and analysis. Ms. Galastri is a recognized subject matter expert in nuclear and radiological incident response planning, including mass evacuation and reception planning. She also has extensive expertise in public health and emergency medical preparedness and response. Ms. Galastri holds multiple Federal Emergency Management Agency (FEMA), Emergency Management Institute Independent Study course certificates as well as Department of Energy, National Nuclear Security Administration, Emergency Operation Training Academy independent study course certificates. She has authored several papers on international terrorism, emerging threats and emergency preparedness. Costanza can be contacted at [email protected]

pmwj26-sep2014-Galastri-AUTHOR2 MITCHELLBlanche Mitchell, PMPflag-usa

Hassett Willis and Company

Washington, DC, USA

Blanche Mitchell received a Bachelor of Science degree in Management from Park University, Parksville, Missouri in 1996. She is a certified Project Management Professional (PMP) with more than 18 years of Program/Project Management experience and extensive knowledge of the Program/Project Management Lifecycles, knowledge areas, processes and industry best practices. She is experienced in erecting efficient and effective enterprise Program/Project Management Offices while ensuring that programs and their component projects align with organizational strategic objectives. She has successfully erected PMOs in both private industry and the Federal Government. Ms. Mitchell has extensive experience in Capital Planning and Investment Control (CPIC) processes and is skilled in developing and maintaining comprehensive and healthy Business Cases—Office of Management and Budget (OMB) Exhibit-300 (E-300). She has provided Program and Project Management Subject Matter Expertise to support the Department of Homeland Security; Federal Emergency Management Agency (FEMA); Office of Health Affairs; Department of Veteran’s Affairs; the Bureau of National Affairs; Freddie Mac; Blue Cross and Blue Shield; and Verizon. Blanche can be contacted at [email protected]

 

Project Management Update from Bolivia

REPORTS 

By Rocio Zelada, PMP

International Correspondent

Santa Cruz de la Sierra, Bolivia

________________________________________________________________________

First International Seminar for Project Managers, La Paz Bolivia (Organized by PMI Santa Cruz, Bolivia Chapter)

With the help of a team of motivated volunteers, the PMI Chapter of Santa Cruz, Bolivia organized its first ever International Seminar on Project Management in the city of La Paz, on the 27th and 28th of August of this year. The event took place at the Hotel Casa Grande and over a hundred participants attended the two day session – a number that more than exceeded the organizers expectations.

pmwj26-sep2014-Zelada-IMAGE1 GROUP

53% of Bolivia’s GDP is concentrated in the two main cities of Santa Cruz and La Paz. (Source: Institute of National Statistics – 2013) As such, the vast majority of projects and investments can also be found in these two cities. The PMI chapter of Santa Cruz was founded in 2010 and to date has over 90 members. For the past five years it has been holding seminars as well as international congresses but this is the first time that such an event has been held in La Paz.

More…

To read entire report click here for (English) or (Spanish)

About the Author 

140621-pmwj24-Zelada-IMAGE1 ZELADARocio Zelada, PMP flag-bolivia

Santa Cruz, Bolivia

Rocio Zelada, PMP is Business Development Manager at Cognos Group in Santa Cruz, Bolivia and current president of the PMI Santa Cruz Chapter (2014-2016).  She is also a consultant, instructor and facilitator of various courses, workshops and seminars on leadership, project management, business analysis, personal relationship and related topics.  Her previous experience includes operations manager with Axxon Consulting Bolivia; systems developer, project manager and specialist in business development for YPFBTransporte; technical advisor for Microsoft Bolivia; and project manager in the energy to market sector.

Rocio holds a Bachelor of Science degree in Systems Engineering and a Master’s degree in Business Administration, with specialization in project management.  In addition to her PMP® certification from the Project Management Institute (PMI®), she is a Certified Facilitator (SDI L1-Personal Strengths) and a Microsoft Certified .NET Professional (ASP.NET).  She has experience and solid knowledge in project management; business analysis and process reengineering; design, programming, implementation, testing and management of information systems and technology, including ITIL, COBIT and ERP systems; software architecture; object oriented programming; processes for management of transport of hydrocarbons; education and knowledge transfer; human talent, interpersonal relationships and conflict management; and corporate change management.  For information about Cognos, visit www.cognosys.com.bo.  Rocio can be contacted at [email protected] or bo.linkedin.com/pub/Rocio-zelada-pmp/22/b12/a33/

UK Project Management Round Up

REPORT

By Miles Shepherd

Executive Advisor & International Correspondent

Salisbury, England, UK
________________________________________________________________________

INTRODUCTION

As the summer draws to a close, I thought there would be little to report but I had reckoned without the politicians. They seem happy to comment on other people’s projects via the Public Accounts Committee but there is little about their own project at Westminster. Politics spill over into regional debate and clearly the state of the Union is a major topic in terms of politics, economics and the history of the United Kingdom. Another continuing topic is the failure of process and projects and some well-known examples have been on the inside pages this past month. Finally, there is news of some major takeover battles. So all in all, another busy month in the project world.

CRITICISM

The first area of criticism lies in the construction area. There has been a recent report claiming that the construction industry output is down for the second quarter of the financial year. How accurate this is may be questioned but performance in May was recorded as having fallen by 1.1% after a 1.2% increase in April. Set against that, the year to date is up by 3.5% – BUT this is the slowest rate of increase for 6 months! This needs to be put in context as the sector only accounts for 6% of the UK economy but has been seen as an important driver of growth, reflecting Government incentives. This drop is in line with other disappointing numbers which saw factory output dropping while the trade deficit grew.

Further criticism was heaped on the failed eBorders project, yet another costly but flawed procurement project. This time, it is not the Public Accounts Committee climbing on the band wagon to beat up project managers, but the Home Affairs Committee. Readers with a long memory may recall that the project involved a US defence contractor who were contracted to provide a secure borders programme (I know and you know, it was actually a project but the politicians and the press don’t know the difference between the two). The previous Administration initiated the deal in 2007 and the current bunch binned it in 2010 claiming that Raytheon failing to deliver (according to the Borders Agency). This cost the Government £224 million and to add insult to injury, arbitration added another £50 million. The arbitration did not consider the delivery aspect but said that the Borders Agency had not briefed the Home Secretary properly on whether the contractors had an arguable case to continue work. According to the Chair of the Commons Home Affairs Committee, Keith Vas MP, Raytheon claimed that the UKBA had not given them any benchmarks against which they were to perform. Mr Vas went on to claim that the UKBA did not know what they wanted from the programme. Interestingly, Mr Vas’ colleague the Shadow Home Office Minister, claimed that the Prime Minister’s judgment was faulty – I wonder what his views of the approval process his own government used to set up the project in the first place?

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About the Author

pmwj17-dec2013-shepherd-AUTHOR IMAGEMILES SHEPHERDflag-uk

Salisbury, UK

Miles Shepherd is an executive editorial advisor and international correspondent for PM World in the United Kingdom. He is also managing director for MS Projects Ltd, a consulting company supporting various UK and overseas Government agencies, nuclear industry organisations and other businesses. Miles has over 30 years’ experience on a variety of projects in UK, Eastern Europe and Russia. His PM experience includes defence, major IT projects, decommissioning of nuclear reactors, nuclear security, rail and business projects for the UK Government and EU.   Past Chair and Fellow of the Association for Project Management (APM), Miles is also past president and chair of the International Project Management Association (IPMA). He is currently Director of PMI’s Global Accreditation Centre and the Chair of the ISO committee developing new international standards for Project Management and for Program/Portfolio Management. He was involved in setting up APM’s team developing guidelines for project management oversight and governance. Miles is based in Salisbury, England and can be contacted at [email protected].

To view other works by Miles Shepherd, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/miles-shepherd/.

Project Management Report from Belo Horizonte

REPORT 

By Manuel Carvalho da Silva Neto

International Correspondent

Minas Gerais, Brazil
________________________________________________________________________

A Project Management Symposium in Texas

The UT-Dallas promoted, on 14 and 15 August, the 8th Annual Project Management Symposium. In the period, 43 lectures and 3 Panel discussions were held. More than 400 people, including executives, professionals, academics and students were present.

To the author of this note, it was a very good opportunity to exchange experiences, meet people, discuss ideas, discover new insights, review concepts and realize where will go the theory and practice of Project Management.

Again we saw the close relationship between strategy and projects, the importance and the complexity of managing the project team (people is leading projects), communication problems, issues of innovation, change management, the advantages of growth in maturity, the Earned Schedule Technique and many other meaningful and significant contributions.

The already airy atmosphere of a university seems to be optimal for this type of Symposium. The friendliness of Texans, the Dallas sun and the architecture full of glass and clarity of the excellent facilities of the Naveen Jindal School of Management facilitate the exchange of ideas and discussions and to whet interest in the various developments that Project Management have and envision many others yet to come.

Next year, the 9th Symposium is scheduled for August 13 and 14. Schedule it.

Project Managers Liability and a Viaduct Collapse

On the afternoon of July 3, 2014, an overpass under construction collapsed in Belo Horizonte, Minas Gerais, Brazil, killing two people. The viaduct was in the final stages of construction and is on a very busy road, which is also the best way to connect the Confins International Airport and the Stadium where some games of the FIFA World Cup were being conducted.

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About the Author 

Manuel-Carvalho-da-Silva-NetoManuel Carvalho da Silva Netoflag-brazil

Minas Gerais, Brazil

Manuel Carvalho da Silva Neto, MSc, Mech. Engineer and PMP is Fundação Dom Cabral Invited Professor and also Consultant. He is a seasoned professional with over 39 years of experience in Project Management, Process Management and Strategy. Manuel has managed or participated in more than a hundred projects across different fields including Steel, Mining, IT, Telecom, Food Processing, Government and Construction to mention a few. He worked also in projects of PMO (Project Management Office) and Methodology of Project Management. He has also strong skills in Leading People and Finance. He served as Minas Gerais State Undersecretary for Planning and Budget, from 2007 to 2008. Manuel can be contacted at [email protected].

To view other works by Manuel da Silva Neto, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/manuel-carvalho-da-silva-neto/.

Project Management Report from São Paulo

REPORT

By Mauricio Lopes

International Correspondent

São Paulo, Brazil
________________________________________________________________________

Germany: An example for obtaining the program objectives

The 2014 FIFA World Cup has reserved unforgettable moments in sports and also in relations between people from different places of the world. Brazil lived for 30 days the environment of a World Cup and so the people watched, amazed by it all. It is a unique event and only happens each four years.

However, one of the great lessons from this gigantic event was the acclaim of a country with the title of the best football in the world. We are talking of Germany, the great and legitimate champion team. We could summarize this performance with just one word: planning.

To understand the whole history of this achievement, we come back to 2000 when the German team was eliminated early and in vexatious manner of Euro Cup. From this defeat has been deployed a total revolution in German football with the goal again to become the football protagonist in the world. In fact, a large program was developed consisting of several projects such as youth development, investments in infrastructure and the training of professionals.

The trajectory of the German team has been positive over the last few years. In 2002 it was second in the World Cup held in Japan and South Korea. Playing at home in 2006 German team was third place and in 2010 in South Africa repeated third place. The period of the World Cup in Germany in 2006 further boosted his national league, called Bundesliga, which now has the highest average attendance worldwide with 42.000 people per match. This was also important for the consolidation of this new phase of German football.

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About the Author

140321-pmwj21-lopes-IMAGE1 LOPESMaurício Lopes flag-brazil

São Paulo, Brazil

Maurício Lopes, PMP is a Project Management Specialist. He is a PMP certified in 2000. He is a civil engineer with MBA in Project Management. He was one of the founders of the São Paulo PMI Chapter and Financial Director, Administrative Director, member of the Steering Committee from 1998 to 2003. He was vice-coordinator of the Project Management Division of the Engineering Institute of São Paulo from 1998 to 1999. Since 2004 Maurício Lopes has been speaking in project management courses for CPLAN, FATEC, INPG, IETEC and FIA. He has 20 years of experience in project management with main focus in the engineering & construction area. Currently, he is associate director of M2L Project Management (www.M2L.com.br), a company specialized in project management consulting and implementation operating in over 40 large engineering & construction projects. Maurício Lopes is author of articles for Revista Grandes Construções, a magazine specialized in engineering & construction, and he has the main characteristics related to project management – lean, practical and systematic ways. Mauricio is an International Correspondent for PM World in Brazil. He can be contacted at [email protected].

To see other works by Mauricio Lopes, visit his Author Showcase in the PM World Library at http://pmworldlibrary.net/authors/mauricio-lopes/

Project Management Update from Nigeria

REPORTS 

By Taopheek Babayeju

International Correspondent

Lagos, Nigeria

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Project Management for Kids

pmwj26-sep2014-babayeju-IMAGE1 GROUP

Encouraging the standard for Project Management best practices in Nigeria continues with a mentoring act of young individuals in an event organized for pupils in various secondary schools in Abuja, Nigeria. In association with ReDance Africa Foundation; a non-profit teenage empowerment organization designed to mobilize, inspire, empower and unite teenagers and children around Africa with a vision to inspire young children and teenagers to become responsible leaders, ProMaCon lends guidance to these promising future leaders.

The Programme Director of ProMaCon and CEO @ iCentra Mr. Taopheek Babayeju was at the Education for P.E.A.C.E event to express this mission. He educated the participants on Project Management and provided his vision on how education can be implemented for peace development in view of the social challenges facing Africa such as a restricted access to education based on religious affiliation and tribal association. As a creative and artistic person, his generous view on channeling creativity via art was duly appreciated as it was relevant to the discussion at this event.

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About the Author 

TAOPHEEK-BABAYEJU-bioTaopheek Babayejuflag-nigeria

Lagos, Nigeria 

Taopheek Babayejuis a seasoned professional with hands-on experience in Project Management, Technology and Entrepreneurship. He is known for his detailed and analytical approach to solving problems; he specialises in using technology and innovations to enhance business models and processes. His expertise includes strategies, innovations, planning and concept development.

Taopheek started out his career as a telecoms engineer at TCC Nig. Ltd and later attended the United Kingdom Telecoms Academy (UKTA) where he trained as a network engineer. Before joining Nigerian Mobile Telecommunications Ltd, MTEL as a Network Engineer, he had worked with various organisations in the ICT sector including SonyEricsson. While at MTEL he trained as a Project Manager in the U.A.E. and certified in U.K. As a Project Engineer at the Implementation Unit, he handled several projects including the organisation’s network roll-out and expansion programmes. He later voluntarily resigned to pursue a career as an independent Technology and Project Consultant. He has managed several projects across different fields including IT, Telecoms, Civil, and Capacity Development, to mention a few. Taopheek studied Physics (Electronics) at the Lagos State University and he is an Alumnus of Pan African University.

He is currently the CEO at iCentra and serves as the Programme Director of ProMaCon, an initiative that won him PMI award for the “Most Outstanding Contribution to Project Management in Nigeria”. He was the Vice President, Outreach of the Project Management Institute (PMI Nigeria) and a member of the Society for Monitoring and Evaluation of Nigeria (SMEAN). He is also an international correspondent for PM World Journal, and an editorial board member of PM Foresight Magazine. He is a Certified Entrepreneurial Manager, trainer and facilitator.

Taopheek can be contacted at email: [email protected]

To see previous works by Taopheek, visit his author showcase in the PM World Library.

Project Management as a tool to facilitate the establishment of Knowledge Economy in Nigeria

FEATURED PAPER

By O. Chima Okereke, PhD

Hereford, UK and

Port Harcourt, Nigeria

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  1. Introduction

The necessity of knowledge economy in today’s world is an inescapable economic reality. The products we buy, and the methods with which they are made rely increasingly on knowledge and technology, and less on manual labour. Knowledge Economy has been described as the new premium fuel for economic growth in the 21st century. It fuels new ideas and innovations to boost productivity, and to create new products, new firms, new jobs, and new wealth. It has become an engine of progress in every country. If a country is developed, it has a developed knowledge economy, if a country is lagging behind; a knowledge economy constitutes just a small fraction of its economy.

In this paper, the necessity for a knowledge economy is considered. The advantages of using project management processes to facilitate the achievement of knowledge economy will be explored. The paper will analyse efforts to move Nigeria into a knowledge economy. A natural sequel to this should be suggestions for the establishment of a framework for knowledge economy, and then some concluding remarks.

  1. Necessity of a Knowledge Economy

A UN report states that: “knowledge economy is one in which knowledge has become the engine of the social, economic and cultural development. Knowledge-intensive economic activities are now a factor of production of strategic importance in the leading countries. They have also become the main indicator of the level of development and the readiness of every country for a further economic and cultural growth in the 21st century”. This was a Country Readiness Assessment Report 2002 on Armenia by the UN Economic Commission for Europe. By this measure, about 40 per cent of GDP in the UK was generated by knowledge intensive industries. The percentage to date will be far higher. The knowledge intensive industries by OECD definition include manufacturing, finance, telecommunications, business services, education and health, etc.

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About the Autho

o-chima-okereke-bioChima Okereke, PhD, PMPflag-nigeria

Hereford, UK 

Dr. O. Chima Okereke, Ph.D., MBA, PMP is the Managing Director and CEO of Total Technology Consultants, Ltd., a project management consulting company working in West Africa and the UK. He is a multidisciplinary project management professional, with over 25 years’ experience in in oil and gas, steel and power generation industries. Before embarking on a career in consulting, he worked for thirteen years in industry rising to the position of a chief engineer with specialisation in industrial controls and instrumentation, electronics, electrical engineering and automation. During those 13 years, he worked on every aspect of projects of new industrial plants including design, construction and installation, commissioning, and engineering operation and maintenance in process industries. Chima sponsored and founded the potential chapter of the Project Management Institute (PMI®) in Port Harcourt, Nigeria, acting as president from 2004 to 2010. Dr. Okereke has a Bachelor of Science Degree in Electrical Engineering from the University of Lagos, and a PhD and Masters in Business Administration (MBA) degree from the University of Bradford in the UK. He also has a PMP® certification from the Project Management Institute (PMI®) which he passed at first attempt. He has been a registered engineer with COREN in Nigeria since 1983. For many years, Total Technology has been a partner for Oracle Primavera Global Business Unit, a representative in Nigeria of Oracle University for training in Primavera project management courses, and a Gold Level member of Oracle Partner Network (OPN). In the UK, the company is also a member of the Herefordshire and Worcestershire Chamber of Commerce. He is a registered consultant with the UN agencies. More information can be found at http://www.totaltechnologyconsultants.org/.

Chima is the publisher of Project Management Business Digest, a blog aimed at helping organizations use project management for business success. Dr. Okereke is also an international advisor for PM World. He can be contacted at [email protected] or [email protected].

To view other works by Dr. Okereke, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/dr-o-chima-okereke/

Facing Project Cost Exposure during Front End Loading (FEL) Implementation

FEATURED PAPER 

By Trian Hendro Asmoro, CCP, PMP

Jakarta, Indonesia

Aberdeen, Scotland

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Abstract

The planning of a project is the most critical phase, since all project definitions and requirements should be completed in this phase. Of all project variables, cost is the most sensitive one especially for project that has a limited range of return on investment. Thus, the project cost and planning team has to have a better planning process as well as incorporating the external commercial factors in the project cost.

Meanwhile, Front End Loading (FEL) stages used to evaluate a completed project have limitations in observing the project cost. The cost estimation level is developed and improved in accordance with three FEL stages; Appraise (FEL1), Select (FEL2) and Define (FEL3), prior to the execution phase. Although the actual cost will be realized after execution, the projective project cost needs to be confirmed at the end of FEL 3.

This paper concludes that the characteristics of cost exposure during the planning of an oil and gas project in the FEL stages must be identified and understood by the company. The company is therefore able to foresee the project risk, particularly regarding the project cost.

Keywords: Front End Loading (FEL), Project Planning, Project Cost.

1.       Introduction

Project cost overrun has become a major issue for project management practices in recent years. Research related to project performance has shown that some negative indicators have arisen when projects are being executed. According to a 2009 survey conducted by Price Waterhouse Coopers (Westney 2012), the number of major projects that could be defined as successful was only 2.5%, an astonishingly low number. In 2009 the Standish group reported average cost overruns of 89% on 8300 IT projects, while research by US Census Bureau project in 2009 revealed average cost overruns of 80% (Halligan, 2012).

The data above indicate significant problems during the project planning phase. An improved approach and analysis in planning a megaproject has therefore been implemented. Front End Loading (FEL) and similar systems have become a valuable method adopted by many oil and gas companies to execute their megaprojects.

2.       Front End Loading (FEL) Practices

Given the high capital requirements for oil and gas and associated process industries, most owner companies have adopted a formal, stage-gated process to develop business ideas into working capital assets and plants (Ogilvie, 2012). Figure 1 depicts a generic project life cycle, front-end loading, and decision gate consisting of initiate, select, define, execute and operate. At the end of each stage, decision gate is available to evaluate and ensure that all deliverables and criteria have been met. In most cases, the first three (generically termed as appraise, select and define) consist of project definition (pre-authorization) or Front-End Loading (FEL) stage.

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About the Author

pmwj26-sep2014-Asmoro-AUTHORTrian Hendro Asmoro flag-indonesiaflag-uk

Jakarta, Indonesia

Trian Hendro Asmoro is oil and gas professional with more than 7 years experiences in project management and cost engineering areas from conceptual to executing projects as planning & cost engineer, pipeline project leader, project site engineer, and project coordinator. He is currently a senior cost engineer at PT Medco E&P Indonesia. Trian holds a bachelor degree in Industrial Engineering from Institute of Technology Bandung (ITB). Trian is a Certified Cost Engineer/Professional (CCE/CCP) and Project Management Professional (PMP), driven by passion to share contribution in oil & gas sector. He has published several professional papers and journals covered topics of project management, cost engineering and petroleum economics. He is now living in Aberdeen, Scotland, United Kingdom for master study in Petroleum, Energy Economics and Finance supported by Indonesia Endowment Fund for Education (LPDP scholarship) of Indonesian Government. He can be contacted at [email protected]

To view other works by Trian Asmoro, visit his author showcase page in the PM World Library at http://pmworldlibrary.net/authors/trian-hendro-asmoro/

Analytical Hierarchy Process to Determine Minimum Attractive Rate of Return for Exploration and Production Projects in Oman

FEATURED PAPER

By Saaed Al-Shehhi

Sultanate of Oman

________________________________________________________________________

Abstract

In Oman, the oil and gas regulator is the Ministry of Oil and Gas (MOG) and all concessions are awarded by this entity. MOG has completed several projects in collaboration with various government sectors and they also oversee all oil and gas Exploration and Production (E&P) activities. E&P is conducted by companies that are either national or overseas corporations.

Economic evaluation of E&P projects is based on single hurdle rate which actually represent project’s Minimum Attractive Rate of Return (MARR) which should include risks related to the opportunities.

The purpose of this paper is to find whether single hurdle rate is appropriate to evaluate investor’s project economic evaluation and to find out appropriate range of MARR.

In this paper, Analytical Hierarchy Process (AHP) is used to find out range of project risks, that cover activity type, location, reservoir type and drilling type, which is then plugged into the MARR equation. The paper concludes that a range of 11 to 15% covers most cases and, therefore, single interest rate is inappropriate.

1.            Introduction

1.1 Oil and Gas Reserves and E&P Companies

Total oil and condensate reserves in the Sultanate of Oman is estimated to be 5151 million barrels by the end of 2013, the year that saw 3.5% augment in reserves, compared with 4197 million barrels in 2012. Production also increased by 2.5%, from 918.5 to 941.9 thousand barrels per day (bpd).

Gas reserves in Oman increased by a whopping 39.8%, from 17.82 trillion cubic feet (tcf) in 2012 to 24.91 tcf in 2013. Main attribution to this increased in new agreement signed, on December 16, 2013, between MOG and BP Oman to develop the Khazzan field in Concession Block No.61. During the next 15 years, BP will drill 300 wells to increase its net production to 1 billion cubic feet of gas per day and 25 thousand barrels of condensate per day, at an estimated cost of 16 billion US Dollars.

Over 2012, the Sultanate’s gas production amounted to 101.8 million cubic meters per day, a growth of 3.6%. Majority of gas produced, more than 77%, is non-associated gas. Figure1 shows estimated gas reserves by companies. 

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About the Author 

pmwj26-sep2014-Al-Shehhi-AUTHORSaaed Ali Mohammed Al-Shehhi flag-muscat-oman

Musandam, Sultanate of Oman

Saaed Al-Shehhi is currently working as a Process Engineer in Oman Oil Company Exploration & Production (OOCEP). He previously worked with Oman Gas Company (OGC) as a Process/Concept Engineer. He has a total of four 4 years experience in oil and gas projects from concept stage and feasibility analysis to commissioning. Main Projects were Muscat Gas Network Concept and Feasibility, Gas Supply Stations Feasibility and Engineering. and Musandam Gas Plant Project. Saaed holds a B.Sc. in Chemical and Process Engineering from Sultan Qaboos University, Muscat. He can be contacted at [email protected].