EXECUTIVE SUMMARY (ABSTRACT)
This document described the development of a project management plan to set-up
the procurement contracts with local vendors for Halliburton Suriname Branch. Halliburton is a service company in the oil and gas business and is contracted to
Staatsolie, the government owned Oil Company in Suriname, since the 1980’s. Until last year, there were only two PSLs (Product Service Lines) from Halliburton,
out of the 14 PSLs, based in Suriname.
The business was quite small, around 25
employees, and there was no need to install local procurement so far. The
procurement and HR (Human Resources) were coordinated from Halliburton
Trinidad Branch.
Early this year Staatsolie started with the Near Shore Drilling Project (NSDP). After
the tender with the service companies, where Halliburton also participated,
Halliburton was the lucky one to win the whole package for the Near Shore
operations.
The organization obtained the contract to perform all well services.
This
project goes together with the setting up of more PSLs in Suriname for better
service quality. In addition to the PSLs, Cementing and Wireline & Perforating, that
the company had till last year, now it has also Sperry, Baroid, HSE and Project
Management based in Suriname.
Now it became high time to install local
procurements in the organization because of the nature of the business.
That is,
some PSLs requires to purchase items urgently when they need it. As it was
earlier, to purchase an item Halliburton were dependent on Trinidad, and on the
travel (transportation) time of the item to arrive in Suriname. Now with this change
in the business, it will make it easier for the PSLs to purchase their items locally as
well as save a considerable amount of transportation costs.
The company used the project management tools together with MyRequest tools
(tools used by the company to create Purchase Requisitions) or the SAP (Systems
Applications and Products in Data Processing).
However, after the charter was
signed, execution was set to begin without a formal project management plan to
guide all of the critical aspects of the project’s lifecycle. Therefore, to successfully
install the procurement department in Suriname, associated with all contracts with
local vendors and procedures/processes to create the MyRequest or Purchase
Requisitions (PR), a comprehensive Project Management Plan had to be
developed.
The general objective was to develop a Project Management Plan, framed within
the standards of the Project Management Institute (PMI), to be used to manage the
implementation of procurement needs for Halliburton Suriname Branch.
The
specific objectives were: to develop the Integration Management Plan in order to
unify and coordinate the processes and project management activities; to create a
scope management plan to ensure that it includes all the work, and only the work,
required to successfully complete the project; to create a time management plan to
support the development and management of a project schedule to ensure the
project is completed within the time constraints; to create a cost management plan
to define the processes for developing and managing the project budget to ensure
it is completed within the budget constraints; to develop a quality management plan
to identify the quality requirements for the project in order to ensure results meet expectations for approval; to create a resource management plan to ensure that all
resources are identified and managed effectively for the successful completion of
the project ; to develop a communications management plan to ensure the timely
and effecitve communication of the project status and other key information; to
create a risk management plan to identify and examine risks to the successful
completion of the project; to develop a procurement management plan to be used
to obtain products, services or results required by the project and to develop a
stakeholder management plan to identify and support all the project stakeholders
to ensure effective stakeholder management.
The methodology used for the research was analytical or explanatory. The main
sources used to gather information included A Guide to the Project Management
Body of Knowledge (PMBOK® GUIDE) Sixth Edition and interviews, which were
held with members from the project management team, the responsible persons
from the PSLs and the vendors.
The information was analyzed to create each
subcomponent of the subsidiary plans used to develop the Project Management
Plan for the installation of procurement locally.
Having explored the objectives outlined previously, it can be concluded that the
need for the Procurement System in Suriname is of vital importance if the company
wants to meet global goals of reducing cost numbers and having a better revenue
every month.
In this case, the PMP will guide Halliburton Suriname Branch, focusing on the
deliverables stablished, assuring existing standards are met, and promoting the
project’s completion within the time and cost constraints.
The plan provides
guidance so all stakeholder needs are taken into consideration and ensure
transparency in decision-making. Although procurement management has been
used for years at Halliburton Suriname Division, the PMBOK® GUIDE provided a
set of good project management practices used by the project team to develop a
more thorough project management plan and to improve the way the company will
manage a project as important as the procurement system implementation project.
Therefore, this PMP represents a milestone regarding to the project
management approach, methodology, strategy, and decision-making processes
that will guide the company projects from now on.
The Stakeholder and Communication management plans are crucial, since the
PMP represents a significant opportunity to promote best practices within the
organization. Most of the stakeholders are from Halliburton itself, in-home, and
they know the advantage of the project to their work. However, it is a good practice
to encourage stakeholder’s involvement for project success purposes.
It is recommended that the project team should consider the use of the planning
process and templates created during the development of the Project Management
Plan for the Procurement System Implementation Project, as a basis for
implementing a methodology to be used by the company for future projects of
similar relevance. This means that the project management team should
recommend the benefits of using the concepts from the PMBOK® GUIDE to upper
management. In addition, all PSLs in Suriname should be provided with the
concepts of PMBOK® GUIDE to increase the percentage of project’s success from
now on.
Estudiante: SHEKHAR SEWRATAN
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