Using GAO Schedule Assessment Best Practices
in Indonesia’s National Oil Company
FEATURED PAPER
By Ardian Eko Handoko
Balikpapan, Indonesia
ABSTRACT
This paper addresses developing and assessing a project schedule quality checklist and related contractual requirements for a refinery expansion project managed by Indonesia’s national oil company. Faced with typical challenges in large-scale construction projects, including delays and cost overruns, the project requires an effective scheduling and cost management approach to ensure its successful execution. This paper applies the ten best practices from the U.S. Government Accountability Office (GAO) Schedule Assessment Guide to enhance schedule reliability. The project’s schedule is benchmarked against these best practices, and a scoring model is developed using a Multi-Attribute Decision-Making (MADM) methodology. The evaluation identifies gaps in the project’s current scheduling practices and suggests areas for improvement. The findings highlight the importance of adhering to GAO standards to strengthen schedule quality. The study concludes with actionable recommendations for integrating these best practices into contractual frameworks to enhance project performance and mitigate risks.
Keywords: Refinery Expansion, Grassroots Refinery Development, Project Scheduling, Project Management, Project Schedule Assessment, Standardization of Scheduling Practices, GAO Schedule Assessment Guide, Schedule Quality, Cost Management, Multi-Attribute Decision-Making (MADM), Schedule Benchmarking, Construction Delays, Risk Mitigation, Indonesia Oil and Gas Industry, Schedule Reliability, Performance Improvement, Project Management.
INTRODUCTION
- Importance of Refinery Expansion and Grassroots Refinery Development in Indonesia
Energy is one of the most critical factors in leading the national economy. The demand for energy, particularly fuel oil, remains the same due to the increasing energy requirements of different fields of development, including industry and transportation. Even the public use of energy is fueling this growth[1].
Figure 1 Fuel Oil Production vs Consumption in Indonesia from 2001 – 20222
According to PWC’s 2023 Oil and Gas Guide, the need for fuel oil is projected to surpass 1,600 barrels per day (bpd) in 2022. But the production is only around 650 mbpd[2]. According to the Directorate General of Oil and Gas’s 2022 Performance Report, Indonesia must import crude oil to meet the consumption demand.
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This paper was originally prepared during a 6-month long Graduate-Level Competency Development/Capacity Building Program developed by PT Mitrata Citragraha and led by Dr. Paul D. Giammalvo to prepare candidates for AACE CCP or other Certifications. https://build-project-management-competency.com/our-faqs/
How to cite this paper: Handoko, A. E. (2024). Developing Quality Project Schedule Using GAO Schedule Assessment Best Practices in Indonesia’s National Oil Company; PM World Journal, Vol. XIII, Issue XI, December. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/12/pmwj147-Dec2024-Handoko-project-schedule-using-GAO-best-pracices-in-Indonesias-national-oil-company.pdf
About the Author
Ardian Eko Handoko
Balikpapan, Indonesia
Ardian Eko Handoko is an engineer with more than ten years of professional experience in the oil and gas sector. He holds a bachelor’s degree in electrical engineering from Bandung Institute of Technology (ITB). Currently, he works as an assistant manager project strategic planning & scheduling at Indonesia’s national oil company. He has been involved in several projects in the oil and gas sector, such as refinery expansion, pipelines, storage tanks, flare relocation, site preparation, control system retrofits, and other downstream projects. He is attending a distance learning mentoring course, under the tutelage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m, Senior Technical Advisor at PT Mitrata Citragraha, to attain Certified Cost Professional (CCP) certification from AACE International.
Ardian lives in Balikpapan, Indonesia, and can be contacted at ardianekoh@gmail.com
[1] Asian Development Bank (ADB). (2023). Indonesia energy assessment, strategy, and roadmap update. Asian Development Bank. Retrieved August 30, 2024, from https://www.adb.org/sites/default/files/institutional-document/666741/indonesia-energy-asr-update.pdf
[2] PwC Indonesia. (2023). Oil & Gas Guide 2023. PwC Indonesia. from https://www.pwc.com/id/en/pwc-publications/industries-publications/energy–utilities—mining-publications/oil-gas-guide-2023.html
