Abstract

The effective management and execution of multiple construction projects is primarilly dependent upon two basic elements: (1) the organizational structure of the managers, engineers, construction personnel, and other project participants responsible for the management and execution of the projects, and (2) the project controls systems which provides the essential planning, forecasting, and performance feedback to the management team to allow timely decision making. The proper organizational structure is vital because it provides the framework for the division of responsibility of the various project participants while the project controls system provides the primary means of project information flow, planning and coordination between the project management team and the project participants. While each of these management elements, that is, organizational structure and project controls system, is important in it's own right, it is the combination of both elements into a comprehensive management system that provides the greatest benefit to a company. Such a system, effectively administered, can eliminate the need for continual day-to-day "crisis management" and in it's place provide an environment for smoother, long-range management of projects.

This article deals with the project management system that has been implemented by the Construction Departement of Huffco Indonesia for use in the execution of numerous construction projects at the company's East Kalimantan Production Facilities. The Construction Department has implemented a matrix organization system which is recognized in the industry as an ideal management approach for controlling multiple small projects with frequently changing priorities. In conjunction with the matrix management system, a comprehensive project controls system has been implemented which encompasses the planning and scheduling, cost control, estimating, material control and reporting aspects of each of the capital projects. The purpose of this paper is to present a description of the project management system which has been developed to execute multiple small construction projects and to highlight the benefits which have been realized as a result of this system.