My experience of Project Management
I graduated as a Chemical Engineer but was placed in charge of a project in my first job and first year of employment. During my post graduate diploma in business management in 1976, I prepared a project report of project management through PERT/CPM as I was working as a member of a project team in Engineers India Ltd. I learnt that there were many definitions of project management (PM) but I was impressed with the one which stated that PM is nothing but managing three M’s (1) Men (2) Materials and (3) Money. But I understood over the years that PM means – plan, monitor and control- in a cyclic way. Control means correcting the situation or activity by changes. “Control” is the most difficult part of PM. I plan to place before you all my actions or actions of others seen as “control” in PM during my four decades of experience limited to projects in chemical process industry, oil& gas and utility.
The first project of my career was for Rourkela Fertilizer plant in 1973. I was stationed at New Delhi but the site was at Rourkela and most vendors were in Calcutta. The job was to be executed in shut down period so I decided to move to site in the last two months so that I could ensure smooth supplies from Calcutta vendors and provide some help to construction team. Similar action was taken by IPCL CMD for Engineers India project team for Baroda Petrochemical (IPCL) project. He ensured that one member of project team from Delhi was at site 24x7, 7 days a week. That made me live in Baroda every third week for a week for a year or so. Please note that we did not have mobile or internet then.
During execution of a large project for NFL, Guna in 1984-87, we were importing refractory materials for the reformer (kind of furnace). I discussed with the Japanese partner how the huge quantity of refractory would be stored at site and the huge expense to create a temporary waterproof shed. I was told that the refractory materials will be mostly in cartons and PP bags stuffed in wooden crates. These crates would be then placed in a marine container for shipment. Normally the containers would be de-stuffed and the inner boxes and bags need to be transported from Bombay to Guna (approx. 1200 kms). I got a “brain wave”. I told the Japanese to drop the wooden boxes and use the marine containers as outer package materials. They used second hand certified for “last voyage” marine containers for us to keep at site and it solved the storage problem. These containers faced the problem at customs and we had to pay customs duty for “durable” packages. The company got 54 containers almost free and we used ten for our site office and stores. The rest were sold to other construction companies generating unexpected profit of INR10, 000 per container.
While working in Japan for two international fertilizer plants, one in Saudi Arabia and another in Bangladesh, there were three instances where ‘control” action was initiated. The company had arranged a heavy lift crane from Singapore for Bangladesh project and some heavy items were to be delivered from Houston. These were delayed and would miss the “window” of heavy lift crane if transported in shared special vessel. The project team decided to hire a chartered vessel at a cost of almost half million USD to ensure delivery was in time for the “window”. For same project, progress payment was held up for two months and the Japanese company decided to suspend the work on the project, though the Japanese company was an equity partner in the project. Suspension lasted for a year.
For the Saudi Project, some structural steel fabrication was ordered on a Saudi Company (to meet local content clause of the contract). The Saudi company was manned by Indians and Pakistanis but owned by a Saudi royal family relation. The company could not submit fabrication drawings as required and hence an Indian company was inducted to carry out the drawing work as a sub contract. This resolved the big hurdle in execution.
I was associated with construction of a gas based power project in Oman in1998. The heart of the power plant was a gas turbine of General Electric (GE). GE was to supply this from USA factory near Boston by sea transport. While transporting it from factory to port, it met with an accident on the road and it required some repairs. This meant the Project schedule was upset. The Oman Company asked GE to air freight it at their cost so that the project would be commissioned on time. GE had to agree and had to use a special transport aircraft to execute it. We completed and commissioned the project on time. For another oil field project in Oman, we had to decide to air freight the control panels from the Netherlands to Muscat in Oman. We managed the logistics so efficiently that the panels took only 48 hours to be delivered from factory in the Netherlands to site (500 kms from Muscat airport) in Oman including customs and airport clearance.
When I started my career, it was handmade bar charts and then with computers and digital invasion, there were other tools for project management like MS Project, Primavera, and PS-8 etc. These tools did provide a frame work to plan a project but the corrective/control action had to come from the Project head or his team.
I am sure readers, who have experience in other sectors (electronics, IT, auto or packaging), may have similar stories to narrate of the “control” action taken or observed by them. In India, most public projects are never finished on time because there is none to take the “control” action so necessary to complete a project on time. Delayed projects also mean they overshoot the original sanctioned budget and benefits are lost to the consumers or client.