through Earned Value Management
and Timely Contractor Payments
FEATURED PAPER
By Sita Ariana Pangestu
Sulawesi, Indonesia
ABSTRACT
Greenfield mining construction projects present unique challenges and opportunities, requiring strong project management to ensure success. This paper explores Earned Value Management (EVM) in these projects, showing how it effectively combines schedule, cost, and scope management. By evaluating different progress measurement methods, the study identifies the best approach and highlights the importance of prompt payments to maintain a neutral cash flow and avoid delays. Using NDIA schedules and cost matrices further improves project tracking and forecasting. Additionally, motion study techniques are used to streamline workflow and increase efficiency. Real-world examples from “Gold Rush” episodes provide practical insights and illustrate common challenges. Through detailed analysis and case studies, the research demonstrates how adopting EVM can significantly boost productivity in greenfield mining projects. The findings offer valuable advice for project managers to allocate resources better, manage risks, and achieve project goals on time and within budget.
Keywords: Mine Construction, Greenfield Project, Progress Measurement, Motion Study, EVM, Prompt Payment, Cashflow Neutrality
INTRODUCTION
- Mining Sector in Indonesia
The mining sector has been one of the backbones of Indonesia’s economy. In the second quarter of 2024, the mining sector contributed 8.78% of the country’s Gross Domestic Product (GDP), making it the fifth-largest industry in Indonesia.[1]
Figure 1 Top Five Indonesia GDP Share by Sector in Q2-2024 (y-o-y)[2]
Since 2020, Indonesia’s “downstream” policy has prohibited the export of raw material ores from promoting domestic value-added production, making the mining industry a top investment contributor. As the world’s largest nickel producer and a primary copper, cobalt, tin, and gold source, Indonesia attracts significant foreign direct investment (FDI).[3] In Q2 2024, the mining sector received IDR 45.6T (~USD27,533 m).[4] In investments, highlighting its strategic importance. The policy aims to enhance the value chain, create jobs, stimulate technological advancements, and foster sustainable economic growth.[5]. Indonesia’s mineral downstream policy offers competitive advantages, boosting economic impact and refining facility development.[6]
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Editor’s note: 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: Pangestu, S. A. (2024). Enhancing Productivity in Greenfield Mining Projects through Earned Value Management and Timely Contractor Payments; PM World Journal, Vol. XIII, Issue X, October/November. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/11/pmwj146-OctNov2024-Pangestu-Enhancing-Productivity-in-Greenfield-Mining-Projects-1.pdf
About the Author
Sita Ariana Pangestu
Indonesia
Sita Ariana Pangestu is a dedicated Project Engineer at a multinational mining company. She is currently overseeing the construction of a greenfield mining area in Southeast Sulawesi, Indonesia. She holds a Bachelor’s degree in Civil Engineering from Institut Teknologi Bandung (ITB) and a Master’s degree in Professional Engineering from the University of Western Australia (UWA).
Sita began her career as a Geotechnical Engineer and has steadily advanced to her current role in project engineering. She brings extensive industry experience, including offshore surveys, renewable energy, mineral resources, and insurance. Her past role as a loss adjuster has also made her proficient in project risk management. Sita excels in handling complex projects, ensuring timely delivery while upholding high standards of quality and safety. Her expertise in project engineering facilitates seamless collaboration within multidisciplinary teams and efficient project execution.
Currently, Sita is attending a distance learning course led by Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m, Senior Technical Advisor at PT Mitrata Citragraha, to obtain the Earned Value Professional (EVP) certification from AACE International.
[1] Central Bureau of Statistics Indonesia (BPS). (2024, August 5). Official Statistics News, No. 60/08/Th. XXVII: Indonesia Economic Growth Quarter II-2024.
[2] Central Bureau of Statistics Indonesia (BPS). (2024, August 5). Official Statistics News, No. 60/08/Th. XXVII: Indonesia Economic Growth Quarter II-2024.
[3] Lang, T. (2024, July 30). Investment Potential in Indonesia’s Mining Sector. Retrieved from https://www.viettonkinconsulting.com/global-business/investment-potential-in-indonesias-mining-sector/#:~:text=Indonesia%E2%80%99s%20mining%20sector%20offers%20a%20wealth%20of%20opportunities,is%20increasingly%20well-positioned%20to%20attract%20significant%20global%20investment.
[4] The Ministry of Investment (BKPM). (2024, July 29). Press Release Realisasi Investasi Triwulan II 2024.
[5] International Institute for Sustainable Development. (2017). Indonesia: Downstream linkages. Retrieved from https://www.iisd.org/sites/default/files/publications/case-study-indonesia-downstream-linkages.pdf.
[6] Firmanto, A. B., Wibisono, D., Siallagan, M. P. S., & Mubarok, M. Z. (2020). Evaluation of Indonesia’s mineral downstream policy with key factors of competitive advantage, comparative advantage, and economic impact perspective. In Proceedings of the 7th Asia Pacific Conference on Contemporary Research (APCCR) (p. 4). Asia Pacific Institute of Advanced Research (APIAR). ISBN: 978-0-6482404-6-4. Retrieved from http://www.apiar.org.au.
