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Designing a “Best in Class” Dashboard

Using Earned Value Metrics for an Indonesian National Oil Company

 

FEATURED PAPER

By Benito Agus Putranto      

Jakarta, Indonesia

 


 

ABSTRACT

Project monitoring is vital to control the project, especially during the construction phase. Insufficient or limited information in the project dashboard could make it harder for project managers whenever the project starts to underperform. The current project management dashboard, which has been used by Pertamina, only provides information about planned progress compared to actual progress in terms of financial and physical progress for each corresponding project. The author applies the Earned Value Management method by using several sources to determine the optimum metrics for the project management dashboard for the Indonesia oil and gas sector. The metrics are selected from several sources such as ‘Guild of Project Controls GPCCAR”, ”DAU Gold Card”, “NDIA’s A guide to managing programs using predictive measures”, and “ Paterson’s Best in class – Dashboard for oil and gas projects”. By comparing the metrics from every source, an optimum metric is chosen based on the company’s needs. The paper concludes with 29 metrics, which can be included in the company’s project management dashboard.

Keywords:       Dashboard, Project Monitoring, Planned Progress, Actual Progress, Earned Value Management, Cost Performance Index, Schedule Performance Index

INTRODUCTION

According to a research survey about project management done by International Project Management Association (IPMA), the Australian Institute of Project Management (AIPM), and Klynveld Peat Marwick Goerdeler (KPMG) in 2019, “only 19% of organizations can deliver successful projects”[1]. It means that most of the time, the projects fail one way or another. This research, which collects the data from almost 500 respondents from 57 countries across the globe, also concludes that “70% of the organizations fail to deliver the project on time and 64% fail to deliver the project on a budget”[2]. That percentage indicates that it is becoming a likely event for the project to become failed and does not deliver the original goal of the project.  Those data also mean in this ever-changing world, which comes with an increment of project complexity, it is a difficult task to achieve all four elements of cost, schedule, scope, and stakeholder satisfaction[3]. Those data also mean that it is becoming a more challenging job for the project managers to deliver the project successfully.

Nowadays, there are tons of construction project which are currently in the construction phase or planning phase in Indonesia. For example, in the oil and gas industry in Indonesia, Pertamina, as a National Oil Company, also spend a lot of money on a construction project. In 2019, the marketing directorate at Pertamina “spent 395 million USD for investment, and this number will increase even more in 2020 by 67,5% in 2020, which will be around 660 million USD”[4]. The stakeholders want the budget holder to ensure that the projects are finished on time, on budget, on scope, and risk. As for the Project life cycle, it is quite similar to what the Guild has, as shown in the figure below.

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How to cite this paper: Putranto, B.A. (2020). Designing a “Best in Class” Dashboard Using Earned Value Metrics for an Indonesian National Oil Company; PM World Journal, Vol. IX, Issue III, March.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/03/pmwj91-Mar2020-Putranto-designing-best-in-class-dashboard-using-earned-value-metrics.pdf

 


 

About the Author

 


Benito Agus Putranto

Jakarta, Indonesia

 

 

 

Benito Agus Putranto is project engineer with five years of professional experience in the oil and gas sectors. Currently, he works as an engineer at Pertamina, the national oil company of Indonesia. During his career, he has an experience as an engineer, cost estimator, project control, and has been involved in several projects such as LPG Terminal, Fuel Teminal. He holds a bachelor degree in Civil Engineering from Gadjah Mada University (UGM) and he is attending a distance learning mentoring course, under tutorage of Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Certified Cost Professional certification from AACE International.

Benito lives in Jakarta, Indonesia and can be contacted at benitoap.910@gmail.com

 

[1] KPMG, AIPM & IPMA. The Future of Project Management: Global Outlook 2019. Retrieved from https://www.ipma.world/assets/PM-Survey-FullReport-2019-FINAL.pdf.

[2] KPMG, AIPM & IPMA. The Future of Project Management: Global Outlook 2019. Retrieved from https://www.ipma.world/assets/PM-Survey-FullReport-2019-FINAL.pdf

[3] KPMG, AIPM & IPMA. The Future of Project Management: Global Outlook 2019. Retrieved from https://www.ipma.world/assets/PM-Survey-FullReport-2019-FINAL.pdf.

[4] Pertamina (2019). Internal Report.