Scenario Planning in Selecting Contract Strategy Scheme to Achieve OTOBOSOROR (On Time, On Budget, On Specification, On Regulation, and On Return) Target in PT Kilang Pertamina International
##plugins.themes.bootstrap3.article.main##
Indonesia as developing countries, continues to implement various strategic action to increase economic activities through infrastructure development named National Strategic Project (PSN) that are deemed to be strategically important and must be completed quickly. To fulfill the PSN, PT KPI has ultimate goal namely OTOBOSOROR (On Time, On Budget, On Schedule, On Regulation, On Return) where there are still many project delays, cost overrun or under specification. Therefore, one of the main goals of the project is a fast-tracking strategy in developing projects to achieve earlier project completion with lower Capex and meet owner specification. However, in fast-track projects, starting an activity without comprehensive data and knowledge entails additional risks and uncertainties than in typical project. Therefore, the author will assess appropriate scenario planning for future contract strategy scheme to achieve OTOBOSOROR target by exploring the internal organization as well as the external environment using McKinsey’s 7S and PESTEL. Then, scenario planning analysis will be conducted where’s ten driving forces are identified and analyzed. Four scenarios are created from crucial uncertainties by combining the important variables of project scheduling and project cost. Implications and options are arranged for the respective scenario. At the end this study proposes Design Build Competition (DBC) contract strategy concept to complete the fast-tracking strategy, reduce project costs and maintain owner specification. However before initiating an activity, PT KPI should manage all risks and uncertainties in fast-track initiatives to avoid potential events that are not beneficial for future PT KPI projects.
Downloads
Download data is not yet available.
References
-
Aboushiwa, M.A. & Bower, D. (2000). Promoter Briefing on the Procurement and Selection of Contract Strategy Offering the Best Value for Money. London: UMIST.
Google Scholar
1
-
Atkinson R (1999). Project management: cost, time and quality, two best guesses and a phenomenon, it's time to accept other success criteria. Journal of Project Management, 17(6), pp. 337-342
Google Scholar
2
-
Bower, D. (2003). Management of procurement. London: Thomas Telford.
Google Scholar
3
-
Carty, G.J. (1995). Construction. Journal of Construction Engineering and Management, 121(3), 319-328.
Google Scholar
4
-
Chang A. S. & Ibbs C.W. (1998). On-Call Contracting Strategy and Management. Journal of Management in Engineering, ASCE, 14(4), p. 35-44.
Google Scholar
5
-
Coordinating Ministry for Economic Affairs. (2022). National Strategic Projects.
Google Scholar
6
-
Ding J., Wang, N., & Hu L (2018). Framework for Designing Project Delivery and Contract Strategy in Chinese Construction Industry Based on Value-Added Analysis. Journal Hindawi Advances in Civil Engineering.
Google Scholar
7
-
Garvin, D.A., & Levesque, L.C. (2006). Meeting the Challenge of Corporate Entrepreneurship. Harvard Business Review Press.
Google Scholar
8
-
Hawken, P., Ogilvy, J., & Schwartz, P. (1982). A pivot point for strategic planning. Journal of Business Strategy, 3(4), 33-43.
Google Scholar
9
-
Henry, R., Mccray, G., Purvis, R., Roberts, T. (2007). Exploiting organizational knowledge in developing IS project cost and schedule estimates: an empirical study. Journal of Information & Management, 44(6), pp. 598-612.
Google Scholar
10
-
Lindgren, M., & Bandhold, H. (2003). Scenario planning: The link between future and strategy. Palgrave Macmillan.
Google Scholar
11
-
Liu, B., Huo, T., Meng, J., Gong, J., Shen, Q., Sun, T. (2016). Identification of key contractor characteristic factors that affect project success under different project delivery system: empirical analysis based on a group of data from China. Journal of Management in Engineering, 32(1), 05015003.
Google Scholar
12
-
Martin J (2003). Performance measurement of time and cost predictability. Proceedings FIG Working Week, Paris, pp. 1-10.
Google Scholar
13
-
Ministry of Economic Affairs. (2022). Regulation No. 9 of 2022 on the Guidelines for the Preparation and Implementation of National Strategic Projects.
Google Scholar
14
-
Moazzami M., Dehghan R., & Ruwanpura J. Y., (2011). Appropriate Contracting Strategy for FastTrack Projects. ISEC-6, Zürich,
Google Scholar
15
-
Nepal, M.P., Park, M., Son, B. (2006). Effects of schedule pressure on construction performance. Journal of Construction Engineering and Management. 132(2), pp. 182
Google Scholar
16
-
Ogilvy, J. (2015). Creating better scenarios. Harvard Business Review, 93(11), 66-73.
Google Scholar
17
-
Palgrave Macmillan. (2016). Scenario Planning: A Field Guide to the Future. Palgrave Macmillan.
Google Scholar
18
-
Park M (2002). Dynamic change management for fast-tracking construction projects. Proceedings Nineteenth International Symposium on Automation and Robotics in Construction (ISARC), Gaithersburg, Maryland, pp. 81-89.
Google Scholar
19
-
Perry, J. G. (1985). Comparison of alternative procurement approaches. Journal of Construction Engineering and Management, 111(1), 1-15.
Google Scholar
20
-
PMI. (2004). A guide to the project management body of knowledge: PMBOK guide (3rd ed.). Project Management Institute Inc.
Google Scholar
21
-
Presidential Regulation No. 109 of 2020. (2020). Third Amendment to Presidential Regulation No. 3 of 2016 on the Acceleration of Implementation of Priority Infrastructure Projects.
Google Scholar
22
-
Presidential Regulation No. 3 of 2016. (2016). Regulation on the Acceleration of Implementation of Priority Infrastructure Projects.
Google Scholar
23
-
Presidential Regulation No. 56 of 2018. (2018). Second Amendment to Presidential Regulation No. 3 of 2016 on the Acceleration of Implementation of Priority Infrastructure Projects.
Google Scholar
24
-
Presidential Regulation No. 58 of 2017. (2017). Amendment to Presidential Regulation No. 3 of 2016 on the Acceleration of Implementation of Priority Infrastructure Projects.
Google Scholar
25
-
Rothaermel, F. T. (2017). Strategic management. McGraw-Hill Education.
Google Scholar
26
-
Schwartz, P. (1991). The art of the long view: Planning for the future in an uncertain world. Doubleday.
Google Scholar
27
-
The World Bank. (2016). Standard procurement documents: User's guide.
Google Scholar
28
-
Wack, P. (1985). Scenarios: Uncharted Waters Ahead. Harvard Business Review, 63(5), 73-89.
Google Scholar
29
-
Wang, N., & Hu, L. (2018). A study on project delivery methods and contract strategies in China. In 2018 3rd International Conference on Management Science and Innovative Education (MSIE) (pp. 268-273). IEEE.
Google Scholar
30
Most read articles by the same author(s)
-
Minaco Rino,
Scenario Planning for Renewable Energy Development towards Net Zero Emission in Indonesia’s New Capital City “Nusantara” , European Journal of Business and Management Research: Vol. 8 No. 6 (2023) -
Mohammad Effendi,
Utomo Sarjono Putro,
Enhancing Adaro’s Transformation Strategy for Business Diversification: The Aluminium Smelter Project , European Journal of Business and Management Research: Vol. 8 No. 5 (2023) -
Shuyuan Liu,
Utomo Sarjono Putro,
Passenger Service Satisfaction Evaluation of Jakarta-Bandung High-Speed Railway , European Journal of Business and Management Research: Vol. 9 No. 4 (2024) -
Utomo Sarjono Putro ,
Muhammad Yandi Mukhdar,
Decision Making in Determining Improve Margin at the PT XYZ Using the Analytic Hierarchy Process , European Journal of Business and Management Research: Vol. 8 No. 4 (2023)