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If you cannot be a poet, be the song…. INTERNATIONAL PROJECT MANAGEMENT

COMMENTARY

By Anil Seth

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The system of nature, of which man is a part, tends to be self-balancing, self-adjusting, self-cleansing. Not so with technology.

~E.F. Schumacher, Small is Beautiful, 1973

Many of us are executing both Domestic as well as International Projects. There are numerous practices followed at various stages of project which may differ in International Projects approach. From general prospective some of the areas are drafted and detailed.

At the start of any International Project the following governs:

For Distributed Execution in all EPC areas a Global Project Model is created. This model has a standard Electronic Systems where in all guidelines and checklists for the following are available:

  • Company Wide
  • Business Wide
  • Functional Wide(or departments)

Owner of this structured Project Global Project Model is Project execution Head.

Apart from PEM/RCM/QM/PPM a VMC (Value Management Coordinator) is also nominated for international projects (required during early phase of project).

Role of VMC is to structure various formats and legal code requirements of the SITE country.

The following are responsibilities of VMC as a minimum:

  1. Implementing A Value Plan: Creates common goal and shared values.
  2. Evaluates which Value Improving Practices will be applied (this an indirect Contract survey)
  3. Provides Mechanism & Processes for effective Team (cross functional) Integration & performance.
  4. Identify issues (both internal & external) that may impede team integration (Since Teams may have vertical/horizontal scope split, the SOW and execution philosophy setting is required early)
  5. Evaluate programs to recognize rewards (same programs may not be effective in all countries)
  6. Documenting the value management.

Another key Post managed early is PCM (Project Contract Manager). PCM is only authorized (and responsible) for issuing Contract (Potential) Change alerts.

This PCM profile has following responsibilities as a minimum:

  1. Manages & administers contract, including changes.
  2. Implements claim prevention management processes (EPC internal/external changes are notified early).
  3. Supports the forecasting of final contract cost.
  4. Manages effective contract close-out.

All these Portfolios follow standard Baseline Process:

  •  Define Baseline
  •  Aligning systems to baseline
  •  Refining to the baseline
  •  Executing to the baseline

The companies in international business management are relatively transparent on sharing of cost data with engineering wing. This is not by virtue of choice but only by the nature of business. The control on dollar management is a relationship of company’s cost determined during proposal and original value coming out after negotiating order, the “May be deviation” value is generally governed by engineering.

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About the Author

pmwj25-aug2014-Seth-AUTHORAnil Sethflag-india

Gurgaon, India

Mr. Anil Seth is working as Project Manager in Fluor’s Indian office at Gurgaon. Fluor Daniel India Private Limited (Fluor India) provides a full range of engineering, design, procurement, and construction management services to Indian and overseas clients. Fluor India is an established quality provider of engineering, procurement, construction management (EPC) and project management services for Fluor’s energy and chemicals, power, mining, and industrial projects, and is a key support office for Fluor facilities located in North America, Africa, the Middle East, Europe, and Asia Pacific

Earlier to Fluor, was in Larsen & Toubro Ltd. at Faridabad, India and managing the Project Engineering Manager Portfolio for hydrocarbon projects. Before joining Larsen & Toubro Engineering and construction division he has worked for Indian Petrochemicals Corporation Limited. He holds B.E. degree with Honors in CHEMICAL Engineering from Panjab University Chandigarh India and has also done Diploma in Environmental Management. He is certified for Harvard Manage Mentor and specializes in Building High Performance cross functional Task Force as well as Converting Breakeven Projects to Profitable scenario. He can be reached at [email protected] or [email protected]

To see other works by Anil Seth, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/mr-anil-seth/

About the Company

Fluor Corporation (NYSE: FLR) is a global engineering and construction firm that designs and builds some of the world’s most complex projects. The company creates and delivers innovative solutions for its clients in engineering, procurement, fabrication, construction, maintenance and project management on a global basis. For more than a century, Fluor has served clients in the energy, chemicals, government, industrial, infrastructure, mining and power market sectors. Headquartered in Irving, Texas, Fluor ranks 110 on the FORTUNE 500 list. With more than 40,000 employees worldwide, the company’s revenue for 2013 was $27.4 billion. For more information, visit www.fluor.com