Da ussalam, Muhammad; Ra asa i, Ayomi Di a; Ichsan, Mohammad
A icle
In e ace managemen de elopmen s a egy o imp o e
ime pe o mance in he exis ing oil and gas p oduc ion
modi ica ion p ojec on he na una block
Global Business & Finance Re iew (GBFR)
P o ided in Coope a ion wi h:
People & Global Business Associa ion (P&GBA), Seoul
Sugges ed Ci a ion: Da ussalam, Muhammad; Ra asa i, Ayomi Di a; Ichsan, Mohammad (2024) :
In e ace managemen de elopmen s a egy o imp o e ime pe o mance in he exis ing oil and
gas p oduc ion modi ica ion p ojec on he na una block, Global Business & Finance Re iew (GBFR),
ISSN 2384-1648, People & Global Business Associa ion (P&GBA), Seoul, Vol. 29, Iss. 6, pp. 98-113,
h ps://doi.o g/10.17549/gb .2024.29.6.98
This Ve sion is a ailable a :
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I. In oduc ion
Oil and gas indus y p ojec s a e complex and
mul idisciplina y in as uc u e p ojec s, usually de ined
as he cons uc ion o o sho e oil and gas p oduc ion
acili ies. Se e al oil and gas p ojec a e al eady in
Recei ed: No . 8, 2023; Re ised: Dec. 8, 2023; Accep ed: Jan. 6, 2024
† Co esponding au ho : Mohammad Ichsan
E-mail: [email protected]
ope a ion. The de elopmen is a modi ica ion o he
exis ing ins alla ion o inc ease p oduc ion in he ield.
The Go e nmen o Republic o Indonesia is ying
o inc ease p oduc ion needs o ill he gap in domes ic
oil and gas demand. I leads o pushing he a ge
o ield de elopmen p ojec s so ha hey a e a ailable
on ime. The head o he Wo king G oup on Ups eam
Oil and Gas T ade (SKK Migas), Amien Suna yadi,
said ha he e a e i y ups eam oil and gas p ojec s
(oil and gas) o s a p oduc ion in he nex ew yea s
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 6 (JULY 2024), 98-113
pISSN 1088-6931 / eISSN 2384-1648∣H ps://doi.o g/10.17549/gb .2024.29.6.98
ⓒ 2024 People and Global Business Associa ion
GLOBAL BUSINESS & FINANCE REVIEW
www.gb jou nal.o g
o inancial sus ainabili y and people-cen e ed global business1)
In e ace Managemen De elopmen S a egy o Imp o e Time
Pe o mance in The Exis ing Oil and Gas P oduc ion Modi ica ion
P ojec on he Na una Block
Muhammad Da ussalama, Ayomi Di a Ra asa ia, Mohammad Ichsanb†
aDepa men o Ci il Enginee ing, Uni e si y o Indonesia, Depok, Indonesia
bManagemen P og am, BINUS Business School, Bina Nusan a a Uni e si y, Jaka a, Indonesia
A
B S T R A C T
Pu pose: In e ace managemen is an e o o o e come in e ace p oblems conside ing ha p ojec s in he oil
and gas indus y a e mega p ojec s ha in ol e many pa ies. This s udy aims o de elop an in e ace managemen
s a egy by iden i ying in e ace p oblems and looking o which in e ace p oblems a ec ime pe o mance on
he exis ing oil and gas ield de elopmen p ojec in he Na una Block.
Design/me hodology/app oach: This esea ch is di ided in o 4 s ages, whe e he i s is a chi e analysis and con-
inued wi h expe alida ion, he hi d is a pilo su ey & ques ionnai e o esponden s, and he las is an expe
alida ion. Fac o analysis was ca ied ou a e expe alida ion, hen alidi y and eliabili y es s we e ca ied
ou wi h he help o SPSS so wa e.
Findings: The e a e 38 in e ace p oblems wi h nine ca ego ies namely, pa icipan s, me hods/p ocesses, p ac ices,
esou ces, managemen , in o ma ion, en i onmen , laws and egula ions as well as bids and con ac s.
Resea ch limi a ions/implica ions: This s udy has limi a ions in a speci ic p ojec in speci ic a ea wi h ce ain
p oduc and a con ex o ime/schedule pe o mance.
O iginali y/ alue: The esul s o he da a analysis will be used o de elop a s a egy o he de elopmen o in e -
ace managemen o he exis ing oil and gas ield modi ica ion p ojec in he Na una Block.
Keywo ds: P oblem ac o s o in e ace managemen , In e ace managemen , Time pe o mance,
Exis ing oil and gas ield op imiza ion p ojec , Na una Block
ⓒ
Copy igh : The Au ho (s). This is an Open Access jou nal dis ibu ed unde he e ms o he C ea i e Commons A ibu ion
Non-Comme cial License (h ps://c ea i ecommons.o g/licenses/by-nc/4.0/) which pe mi s un es ic ed non-comme cial use, dis ibu ion
,
and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed.
Muhammad Da ussalam, Ayomi Di a Ra asa i, Mohammad Ichsan
99
2018-2027 (Wicaksono, 2018). Howe e , in he las
2 yea s (2019-2020), 8 o 17 oil and gas de elopmen
p ojec s ha e been delayed om he p ede e mined
ons eam p og am. This phenomenon dese es special
a en ion. Table 1 shows he phenomenon o oil and
gas p ojec s expe iencing delays. The delayed schedule
o hese p ojec s was due o a lack o coo dina ion
be ween ela ed pa ies, such as pla o m delays,
adminis a i e issues, lack o buye s, ma e ial delays
and o he s. In e ace managemen is an a emp o
o e come he p oblem o lack o coo dina ion be ween
he pa ies, gi en ha p ojec s in he oil and gas indus y
a e mega-p ojec s in ol ing many pa ies. Na una
is one o he na ional's oil and gas block a ea ha
is wa ched by he go e nmen immensely close. This
block has been de eloped and modi ied by se e al
p ojec s o achie e goal p oduc i i y. In e acing
bee ween pa ies in his a ea is mo e complex. So,
In e ace Managemen (IM) is implemen ed in his
bussiness p ocess. Acco ding o Shok i, he In e ace
Managemen Sys em (IMS) is de ined as a sys ema ic
app oach o he e icien iden i ica ion and managemen
o in e aces (especially c i ical ones) h oughou he
p ojec li e cycle, o acili a e he alignmen p ocess
be ween he pa ies. in e es ed in de ining he ea u es
o he in e ace, he esponsibili ies o he pa ies
in ol ed and he ime equi ed o hings o be
ansmi ed (Shok i e al., 2012).
The IMS amewo k will be execu ed h ough i e
main s eps:
1. Iden i ica ion: Ini ial s ep o iden i y possible
in e aces among s akeholde s in he p ojec .
2. Documen a ion: In e ace in o ma ion is collec ed
and egis e ed. This in o ma ion should in o m
in e ace cha ac e is ics, s akeholde in ol ed,
deadlines, equi ed documen s, e c. This s ep
o his p ocess is ongoing du ing he en i e IMS.
3. T ans e /Issuance o packages: A e con ac
has been awa ded, all in e aces iden i ied, and
documen ed in o ma ion a e being ans e ed
o he app op ia e pa y.
4. Communica ion: Rela ed s akeholde should
communica e wi h each o he due o issuance
o he In e ace Ag eemen o manage he issue
e ec i ely. All ju isdic ion in his s ep will
be managed by In e ace Manage and in ol e
all ela ed s akeholde s.
5. Closing: All s akeholde s in ol ed should ag ee
o conside ha he in e ace has been comple ed
as pe ag eemen on he accu acy, e iciency,
comple ion o he in o ma ion/ asks and he
esul s submi ed.
E en i he o mal IM has been achie ed, he
many pa ies a e in ol ed in he implemen a ion o
a p ojec cause unexpec ed p oblems. S akeholde s,
such as he ope a ions eam, he p ojec eam, he
planning eam, he p ocu emen eam, and ex e nal
pa ies, bo h om he go e nmen and om he se ice
companies in ol ed in he p ojec , can cause p oblems,
as men ioned, lack o mu ual us , and ine icien
communica ion can lead o hos ili y be ween he
pa ies. I his happens, he p ojec has he po en ial
o delays, cos o e uns, p oblem sol ing will be
No P ojec Ini ial Ta ge Final Ta ge
1 Me akes Q4 2020 Q1 2021
2 Tangguh T ain 3 Q3 2020 Q1 2021
3 Suban Comp ession Aug 2019 Oc 2019
4 Bun al-5 No 2019 Feb 2020
5 Buki Tua Pashe-3 No 2019 Q2 2020
6 YY Jul 2019 Q4 2019
7 A io-Dama -S iwijaya Phase 2 Jun 2019 Sep 2019
8 Temela No 2019 Des 2019
Table 1. Indonesian oil and gas p ojec s ha a e expe iencing delays
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 6 (JULY 2024), 98-113
100
di icul , legal p oceedings and p ojec quali y canno
be achie ed (Huang e al., 2008).
Mo eo e , he p oblems in IM a e explained ha
a e as ollows: insu icien con ac s and speci ica ions,
inancial p oblems, en i onmen al p oblems and o he
hings. O cou se, i is e y easy o unde s and ha
i he con ac does no adequa ely explain and he
expec ed speci ica ions a e no clea , hen coo dina ion
p oblems will a ise be ween he pa ies in ol ed
(Huang e al., 2008). The e will be a di e en
unde s anding o he con en o he con ac , so ha
he wo k will be limi ed and cause p ojec delays.
II. Li e a u e Re iew
A. Fo mal Managemen In e ace
In e ace Managemen (IM) is de ined as in o ma ion
managemen , coo dina ion, and esponsibili y ac oss
physical, con ac ual, and o ganiza ional bounda ies,
which a e e e ed o as in e aces (Noo eboom, 2004;
Wideman, 2022).
This poin could be:
1. Physical - Physical in e ac ions be ween
componen s
2. Func ional - Func ional Requi emen s be ween
sys ems
3. Con ac s - In e ac ions be ween subcon ac o s/
supplie s
4. O ganiza ion - Exchange o in o ma ion be ween
disciplines
5. Knowledge - Exchange o gene al in o ma ion
be ween pa ies
6. Resou ces - Poin s o dependency be ween
equipmen , ma e ial, and labo supplie s
In e ace is o med in he p ocess o in e ela ion
and in e ac ion be ween a ious o ganiza ions and
s akeholde s (B own, 1983). O ganiza ional in e aces
a e in e ela ionships be ween in e dependen en i ies.
Meanwhile, P ojec Managemen O ice unc ions
o manage mul i p ojec s and s a egies, con ol and
moni o p ojec pe o mance, de elop p ojec
managemen compe encies and me hodologies,
pe o m o ganiza ion lea ning, and manage in e ace
and b ing alue o he o ganiza ion (Hobbs & Aub y,
2008; Ichsan e al., 2023).
In 1967, he concep o IM was i s in oduced
using a sys ems app oach o analyze poin s o con ac
be ween ela i ely au onomous in e ac ing o ganiza ions,
and he co esponding in e -o ganiza ional issues and
hei applica ion we e desc ibed in ae ospace and
powe gene a ion p ojec s (W en, 1967).
De ine he ollowing c i e ia o iden i y si ua ions
when IM is mos use ul (Mo is, 1983):
1. The aims and objec i es o an en e p ise b ing
abou he need o di e en g oups o wo k
closely oge he ;
2. The en i onmen is complex o apidly changing;
3. This echnology is unce ain o complex;
4. Companies change quickly; And
5. Companies a e o ganiza ionally complex.
Se e al s udies emphasize ha implemen ing IM
a he ea ly s ages o a p ojec will esul in highe
pe o mance in e ms o scope, cos , and schedule
(Cagla & Connolly, 2007; Chen e al., 2007;
Noo eboom, 2004).
IMS is de ined as a sys ema ic app oach o iden i y
and e ec i ely manage in e aces (especially c i ical
ones) h ough he en i e p ojec li e cycle, wi h he
aim o acili a ing he alignmen p ocess be ween
s akeholde s by de ining he cha ac e is ics o he
in e aces, he esponsibili ies o he pa ies in ol ed,
and he deli e ed ime equi ed o hem (Shok i
e al., 2012).
The IMS F amewo k will be execu ed h ough
i e main s eps:
1. Iden i ica ion: This s ep includes iden i ying as
many in e aces as possible in he p ojec .
2. Documen a ion: In e ace in o ma ion is de ined
in his s ep. This in o ma ion includes in e ace
cha ac e is ics, pa ies in ol ed, deadlines, equi ed
documen s, e c. I should be men ioned ha
his s ep is an ongoing p ocess h oughou he
en i e IMS.
Muhammad Da ussalam, Ayomi Di a Ra asa i, Mohammad Ichsan
101
3. T ans e /Issuance o packages: When he con ac
has been awa ded, all in e aces iden i ied and
documen ed in o ma ion is being ans e ed o
he app op ia e pa ies.
4. Communica ion: Du ing his s ep, he pa ies
will s a communica ing wi h each o he h ough
he issuance o an In e ace Ag eemen , in o de
o manage he in e ace e ec i ely. This s ep
will be execu ed unde he ju isdic ion o he
In e ace Manage and in ol e all in e ac ing
pa ies.
5. Closing: The in e ace is conside ed comple e
i all pa ies in ol ed ag ee on e iciency,
accu acy, comple ion o in o ma ion/ asks and
esul s deli e ed.
Se e al p ojec in Na una is he objec o he
esea ched na ional oil and gas company ha has
implemen ed he concep o his IMS. As in he i s
s ep, he company iden i ies he needs o he ele an
s akeholde s which a e eco ded in he in e ace
egis e documen whe e he documen con ains;
1. O igina o : The pa y ha issued he documen .
2. Responding Pa y: The pa y ha mus espond
o he documen .
3. Issue issue da e.
4. The a ea ha becomes he in e ace issue.
5. Issue i le.
6. Deli e able poin s.
7. Documen s a e.
8. The a ge da e o he documen was esponded
o.
B. Implemen a ion o In e ace Managemen
in he Na una Block
E en hough he o mal IM has been ca ied ou ,
he la ge numbe o pa ies in ol ed in implemen ing
a p ojec causes unexpec ed p oblems o a ise i he
p ojec is s ill no unning.
Pa ies in ol ed such as he ope a ions eam,
p ojec eam, planning eam, p ocu emen eam and
ex e nal pa ies bo h om he go e nmen side as
well as om se ice companies in ol ed in he p ojec
can cause p oblems as men ioned as ollows: lack o
good coope a ion, limi ed mu ual us , and ine ec i e
communica ion can lead o hos ili y be ween he
pa ies. I his happens, he p ojec has he po en ial
o expe ience delays, cos o e uns, p oblem esolu ion
will be di icul , cou p oceedings and p ojec quali y
will no be achie ed (Huang e al., 2008).
Fu he mo e, he p oblems in IM we e explained
as ollows: insu icien con ac s and speci ica ions,
inancial p oblems, en i onmen al p oblems and o he
hings (Huang e al., 2008). O cou se i is e y
easy o unde s and i he con ac does no explain
enough as well as he expec ed speci ica ions a e
no clea , coo dina ion p oblems will a ise be ween
he pa ies in ol ed. The e will be a di e en
unde s anding o he con en s o he con ac , so ha
he wo k will be cons ained and has he po en ial
o cause p ojec delays.
One o he eal challenges in inc easing na ional
oil and gas p oduc ion is he condi ion o oil and
gas wells ha ha e passed he peak pe iod and limi ed
ese es. The de elopmen o old wells is ca ied
ou o main ain p essu e in he ese oi so as o
inc ease he p oduc ion li e o he well. Se e al
de elopmen s ha e been ca ied ou by modi ying
p oduc ion acili ies so ha he p essu e in he
ese oi can be main ained and he p oduc ion li e
o he ese oi inc eases.
Based on P esiden ial Regula ion 22 o 2017
conce ning he Na ional Ene gy Gene al Plan, he
go e nmen includes a p og am o ac i i ies o
accele a e he comple ion o na u al gas p ojec s, one
o which is he Eas Na una Block.
Cu en ly, Hub Timu 's oil and gas p oduc ion
con inues o decline ollowing he deple ion o he
ese oi in he las h ee yea s. To inc ease ield
p oduc ion and eco e y, i is necessa y o educe
he suc ion p essu e o he comp ession sys em a
he No h Belu Cen al P ocessing Pla o m (NB
CPP). Reducing he suc ion p essu e a No h Belu
CPP will be bene icial o inc ease eco e y and ex end
he li e o he No h Belu well. By educing he
comp ession sys em on NB CPP, i is hoped ha
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 6 (JULY 2024), 98-113
102
an inc ease in oil and gas p oduc ion will be ob ained.
The p ojec is a ge ed o be on-s eam a he end
o 2020 whe e he p e ious a ge was ea ly 2021,
so he e is a need o accele a ion in his p ojec .
The p ojec is also one o he objec s o his esea ch.
C. E ec i eness o In e ace Managemen
Implemen a ion
E ec i eness is a measu emen o assess he
achie emen o p ede e mined goals (Handayaning a ,
2006). I he goals o objec i es ha ha e been
p e iously se a e success ully achie ed, hen i is
said o be e ec i e. Con e sely, i he goals ha
ha e been p e iously se a e no achie ed o a e
no in acco dance wi h he a ge s se , hen i is said
o be ine ec i e.
The concep o e ec i eness is also de ined as
a measu e ha gi es an idea o
how a he a ge
can be achie ed. This unde s anding o e ec i eness
is mo e ou pu o ien ed while he p oblem o using
inpu is less o a majo conce n. I e iciency is ela ed
o e ec i eness, e en hough he e is an inc ease
in e ec i eness i is no necessa ily an inc ease in
e iciency (Seda mayan i, 2009).
So, he measu emen o he e ec i eness o he
IM implemen a ion is based on he main objec i e
o implemen ing he IM. Managing in e aces in he
ea ly s ages o a p ojec will esul in highe
pe o mance in e ms o scope, cos , and schedule
(Cagla & Connolly, 2007; Chen e al., 2007;
Noo eboom, 2004). Thus, he indica o s o measu e
he e ec i eness o IM implemen a ion a e seen om
scope, cos pe o mance and ime pe o mance.
Resea ch was conduc ed on he ela ionship
be ween p ojec complexi y, IM implemen a ion and
he e ec i eness o IM implemen a ion (Ahn e al.,
2017). The e ec i eness o he implemen a ion o
IM is de ined as he sa is ac ion o he esponden s
owa ds he implemen a ion IM. The e o e, a subjec i e
measu e o he e ec i eness o IM implemen a ion,
namely Responden Sa is ac ion wi h IM, is used
in his s udy. Models such as he "Subjec i e Ra ing"
ha e been widely used as a su oga e measu e o
he ac ual e ec i eness o a sys em o p ac ice in
an o ganiza ion (Ga ian, 1994; Po hukuchi e al.,
2002). Du ing he in e iew, esponden s we e asked
o gi e hei subjec i e a ing o hei cu en IM
p ac ices on a 5-poin scale: "How sa is ied a e you
wi h you cu en in e ace managemen implemen a ion
on he p ojec ?" (1 = e y li le; 2 = a li le; 3 =
somewha ; 4 = big; and 5 = e y big).
D. In e ace Managemen Issues
Many esea che s ha e p o ided a ious app oaches
o in es iga e, iden i y, and classi y in e ace p oblems
in a ious ypes o p ojec s. Many esea che s ha e
iden i ied, e iewed, and epo ed on in e ace
p oblems in a ious coun ies in a ious ypes o
p ojec s h ough comp ehensi e li e a u e e iews,
pilo s udies, in e iews wi h indus y expe s and
ques ionnai es in a ious coun ies wi hou applying
s a is ical ools (Al-Hammad, 1990, 1993, 1995, 1996,
2000).
A esea ch s udy on I an's oil mega e ine y on
ongoing p ojec s o iden i y he main causes o
in e ace p oblems and hei e ec (impac ) on p ojec
comple ion h ough a ques ionnai e. O he esea che s
iden i ied p oblem ac o in e aces in di e en
cons uc ion p ojec s using quali a i e and quan i a i e
s a is ical app oaches using wo s a is ical ools such
as ac o analysis and mul iple eg ession models
(Mo aheb e al., 2010).
Then in he mass apid ansi sys em (MRTS)
de elopmen p ojec , he ac o s ha cause con lic
IM by applying s a is ical ools in wo s ages (Huang
e al., 2008; Ku e al., 2010). The i s s age, li e a u e
e iew, pilo s udies and ace- o- ace in e iews wi h
expe s om he indus y o iden i y in e ace
p oblems. The second s age, de eloping a su ey
ques ionnai e. This app oach is conside ed app op ia e
o his esea ch because i combines quali a i e and
quan i a i e esea ch me hods. This inc eases con idence
in ge ing esul s. Using ei he me hod could esul
in inding in isible a iance ha migh o he wise
Muhammad Da ussalam, Ayomi Di a Ra asa i, Mohammad Ichsan
103
ha e been o e looked h ough use o a single me hod
(Hewage, 2007).
Mixed me hods esea ch can p o ide s onge
conclusions because he da a is iewed om mul iple
pe spec i es (Pole, 2007). One me hod can p o ide
a deepe unde s anding, a wide iewpoin and hey
con i m o complemen each o he .
On he o he hand, a mul i-pe spec i e app oach
was p esen ed o in es iga e he causes o in e ace
p oblems in a ious cons uc ion p ojec s ( esiden ial
cons uc ion, o sho e cons uc ion, and comme cial
cons uc ion) by using he cause-and-e ec diag am
(C&E) me hod (Chen e al., 2008). C&E diag am
was p oposed by Kao u Ishikawa in 1968. This
me hod iden i ies and ca ego izes he le el o
implica ions o each p oblem cause by using a
hie a chical p epa ed app oach as: main causes, mino
causes, and sub- ac o s. He ca ego izes in e ace
managemen p oblems in 6 ca ego ies; pa icipan s,
me hods, esou ces, documen a ion, p ojec and
en i onmen al managemen .
In 2013, he e was esea ch ha g ouped p oblems
in in e ace managemen in o 6 ca ego ies wi h 47
p oblems iden i ied om a ious p e ious s udies.
Whe e he ca ego ies a e; managemen ac o s,
in o ma ion ac o s, con ac & bid ac o s, legal &
egula o y ac o s, echnical ac o s & ield issues
as well as a ious o he ac o s (Weshah e al., 2013).
In his s udy, he e we e 38 p oblems selec ed.
Then hese p oblems will be g ouped in o 9 ca ego ies
whe e hese p oblems will be es ed o hei ele ance
o ime h ough a ques ionnai e p epa ed o answe
he i s esea ch ques ion.
1. Pa icipan
The pa icipan s a e ac o s o he cons uc ion
p ojec . Be ween indi iduals o o ganized pa ies,
hey ca y ou ce ain ac i i ies ha a e co ela ed,
because he ac i i ies hemsel es depend on o a e
compe i o s o he componen s o he p oduc o he
subsys ems ha hey p oduce. In e ac ions be ween
di e en people / pa icipan s a e ine i able and mus
be well coo dina ed o p e en a ious con lic s and
unde pe o mances o he p ojec (Chen e al., 2008)
and pa o he in e ace p oblems caused by
pa icipan s a e as ollows:
1. Lack o communica ion be ween pa ies
2. Lack o coo dina ion be ween pa ies
3. Slow decision-making
4. Delays in eques ing changes, pe mi s, and
sending design d awings and app o als
2. Me hod/P ocess
The design p ocess / me hod used will be di e en
o mee cus ome equi emen s, o manage he adequacy
o he echnical solu ion and o plan and manage
he design p ocess. The chosen design me hod a ec s
he in e ace no only in he design phase, bu also
in p oduc ion, cons uc ion and ope a ion and
main enance. Cons uc ion me hods and p ocesses
a e mainly speci ied in he design documen h ough
a ce ain deg ee o lexibili y, which allows con ac o s
o selec amilia and/o economical cons uc ion
me hods and p ocesses o hei ield o wo k. The
cons uc ion me hod de ines he in e aces ha appea
in he cons uc ion (Chen e al., 2008). Fo example,
when a anging o pipes, he " lange o lange" me hod
is p e e ed in he o sho e a ea. The welding p ocess
o he pipe is ca ied ou a wo kshop o educe
'ho wo k' on ield, so as o minimize he occu ence
o acciden s ha lead o damage o he ins alla ions
in he ield due o he dange o a i e iangle elemen
i he welding wo k is pe o med. Imp ope me hods
and p ocesses ha inc ease he numbe o in e aces
make he managemen o he in e ace mo e di icul
o con ol in he ield and wo sen he managemen
o he in e ace i sel . Some o he p oblems caused
by he me hod / p ocess in he managemen in e ace
a e he ollowing:
1. Business p ocesses ha a e no e ec i e and
e icien
2. Low design quali y
3. The e is no planning documen o each p ocess
discipline
4. The me hod used is no in acco dance wi h
he needs
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 6 (JULY 2024), 98-113
104
3. P ac ice
In mega-p ojec s, a complica ed cons uc ion
p ocess is one o he causes o cons uc ion and
assembly p oblems. Thus, in p ac ice, his p ocess
is o en igno ed. The quali y o he in e ace is la gely
comp omised when he quali y o cons uc ion wo k
is low. Fo example, imp ope applica ion du ing
welding causes he join s be ween he pipes o c ack
easily, so ha when he hyd o es es is pe o med,
i ails, so ha ewo king akes place. The di e en
elemen s o he cons uc ion wo ks i hey do no
comply wi h each o he will be he cause o he
low ole ance s anda ds. In p ac ice, many ac i i ies
do no mee wo king s anda ds, e en i he plan
documen s ha e been comple ed. This will ha e
p oblems wi h he quali y o he esul s, esul ing
in a ewo k. Some IM issues in p ac ice as e e ence
(Chen e al., 2008), a e as ollows:
1. Igno ing cons uc ion and design on assembly
and ab ica ion
2. Poo quali y o cons uc ion wo k
3. Poo design o wo k o de and handling me hods
4. Resou ces
Va ious esou ces a e used o suppo he
achie emen o p ojec objec i es in he cons uc ion
p ocess. T adi ionally, he esou ces o cons uc ion
included labou , ma e ials and equipmen . In mega
p ojec s, he need o echnology in e ms o using
so wa e is also aken in o accoun as one o he
ools o acili a e communica ion wi h i s use s (Chen
e al., 2008) and i also aised esou ce p oblems
a ising in IM a e as ollows:
1. Lack o wo ke skills
2. Delays in deli e y and p ocu emen o ma e ials
3. No well de ined equipmen used
4. Inadequa e echnology in he equipmen used
5. Poo quali y so wa e in he equipmen used
o incompa ible so wa e
5. Managemen
Managemen is he p ocess o planning, o ganizing,
execu ing, coo dina ing, moni o ing, o ecas ing and
exe cising con ol (Wideman, 2022). The in e ace
issues can appea in his a ea (Chen e al., 2008;
Weshah e al., 2013), including he ollowing:
1. The e is no p ojec coo dina o
2. Inaccu a e planning and scheduling es ima es
3. Inaccu a e cos es ima es
4. Inaccu a e es ima e o ma e ial equi emen s
5. Inaccu a e es ima ion o labo needs
6. In o ma ion
In o ma ion includes all company da a and
documen esou ces, which can consis o sepa a e
ex , images, audio o nume ic o ms ela ed o he
p ojec . O en in e ace p oblems a ise wi h ega d
o in o ma ion. Se e al p e ious esea che s (Weshah
e al., 2013; Zhang e al., 2022) include in o ma ion
as ac o wi h se e al p oblems such as:
1. Inaccu a e in o ma ion
2. Obs uc ion o he ci cula ion o in o ma ion
3. Unclea epo ing s uc u e and esponsibili ies
7. En i onmen
En i onmen de ined as he b oad se ing o a
cons uc ion p ojec and he p oblem ha a ec he
cons uc ion o he p ojec di ec ly bu ha e no hing
o do wi h he p ojec i sel (Chen e al., 2008; Zhang
e al., 2022). The u bulency o en i onmen al as
he le el o unce ain y and he highly a iable e en s
ha occu in he en i onmen whe e a pa icula
indus y ope a es a e ela ed o con ingencies a ec
he dynamic capabili ies signi ican ly (Ichsan e al.,
2023; Tu ulja & Bajgo ic, 2019). I consis s o no
only wea he and geological condi ions o he jobsi e,
bu also local egula ions, building codes and ade
union p ac ices, ma e ials and labo a ailabili y on
he ma ke , and cul u al di e si y o pa icipan s. Bu
ega ding local egula ions will be pu in o ano he
ac o in his pape , his in e ace issue in his ac o
a e:
1. The una ailabili y o esou ces in he su ounding
en i onmen
Muhammad Da ussalam, Ayomi Di a Ra asa i, Mohammad Ichsan
105
2. D as ic changes in esou ce p ices
3. Misunde s anding due o di e ences in cul u e,
habi s and beha io
4. Un o eseen condi ions on he g ound
5. Inaccu a e wea he o ecas in o ma ion
8. Laws & Regula ions
This ac o consis ed o he abili y o ansla e
laws and egula ions in hei applica ion o he p ojec .
O en lack o expe ience in his a ea c ea es obs acles
in he execu ion o a p ojec (Huang e al., 2008;
Weshah e al., 2013). In e ace issue ha a ise in
his ac o a e:
1. Lack o clea s anda d ope a ing p ocedu es
o he company
2. Lack o expe ience wi h company codes
3. Lack o expe ience wi h applicable local laws,
go e nmen egula ions
4. Lack o expe ience wi h go e nmen audi
p o ocols and p ocedu es pu in place
9. Bid & Con ac
Se e al p e ious esea che s (Huang e al., 2008;
Weshah e al., 2013; Zhang e al., 2022) g ouped
his ac o consis ed o in e ace p oblems conce ning
he "bid and con ac " which appea s in he in i a ion
o bid and con ac execu ion. While con ac ypes
a e di ided in o ixed p ice and ime & ma e ials
whe e a ixed p ice ans e s isk o endo s o ime
& ma e ials will likely be be e de ined and mo e
success ul han a ixed p ice p ojec because he buye
has an incen i e o con ol scope and cos s
(K ishnaswamy & Ra hinasamy, 2015). Choosing a
con ac ype s a egy is e y impo an because i
can cause some in e ace p oblems
1. Vague con ac de ails and poo ly w i en con ac s
2. The ype o con ac does no ma ch he na u e
o he p ojec
3. Lack o ision o a solid con ac s a egy ea ly
in he p ojec phase
4. Lack o clea sys em equi emen s o comple ion
5. Lack o clea equi emen s in he RFP ( eques
o p oposal) documen s om companies o
bidde s
III. Resea ch Me hodology
A. Va iable S udy & Expe Valida ion
Table 2 shows as many as 38 p oblems we e
selec ed and g ouped acco ding o a chi e analysis
and e iew o p e ious esea ch li e a u e ha a ec
he e ec i eness o IM implemen a ion in e ms o
ime ( a iable Y).
The opinions o expe s ha e an impo an ole
in his esea ch, whe e hei opinions a e used as
ma e ial o conside a ion and alida ion o esea ch
esul s. The c i e ia o expe s in his esea ch a e
hose who ha e mo e han 20 yea s o expe ience
on he Na una Block o sho e oil and gas p ojec
in he ield o IM wi h a minimum o a bachelo 's
deg ee. The e a e 5 expe s who alida e hese
a iables. Based on he esul s o expe alida ion,
No P oblem In e ace Managemen Re e ence
X.1 Pa icipan (Chen e al., 2008)
1 Lack o communica ion be ween pa ies (Al-Hammad, 1993, 1995, 2000; Ayudhya, 2011; Choong, 2019;
Huang e al., 2008; Ku e al., 2010; Yeganeh e al., 2019)
2 Lack o coo dina ion be ween pa ies (Al-Hammad, 1993, 1995, 2000; Ayudhya, 2011; Choong, 2019;
Huang e al., 2008; Ku e al., 2010; Yeganeh e al., 2019)
3 Slow decision-making (Al-Hammad, 2000; Ayudhya, 2011; Choong, 2019; Huang e
al., 2008; Ku e al., 2010; Yeganeh e al., 2019)
4 Delays in eques ing changes, pe mi s, and sending design d awings
and app o als
(Al-Hammad, 1993, 1995, 2000; Ayudhya, 2011; Choong, 2019;
Huang e al., 2008; Ku e al., 2010; Yeganeh e al., 2019)
Table 2. Dimensions and indica o s in e ace managemen issues as dependen a iable
GLOBAL BUSINESS & FINANCE REVIEW, Volume. 29 Issue. 6 (JULY 2024), 98-113
112
he ball un inished so he e is a need o a clea
managemen decision hie a chy and RAM/RACI. In
managing in e aces o all s akeholde s in all a eas
i is expec ed o minimize he impac o delays.
F om he p ocu emen side, main aining he
ma e ial deli e y schedule is also e y impo an
conside ing he domino e ec on cons uc ion wo k
which can cause delays. Then om he managemen
poin o iew, in es ima ing needs, hey mus use
app op ia e echniques and calcula ion me hods
because he e ec du ing p ocu emen and di icul ies
in sending ma e ial o o sho e a eas is e y high.
VII. Sugges ion
a. All limi a ions in his esea ch a e also expec ed
o be con inued / deepened in subsequen esea ch,
so ha i is hoped ha u he esea ch can be
de eloped in cases o di e en ypes o p ojec s,
bea ing in mind ha p ojec s a e unique.
b. I is also hoped ha he e will be eedback
om he esul s o his s udy, so ha he esul s
o his esea ch can be u he de eloped and
pe ec ed, so ha hey can be used as s udy
ma e ial bo h academically and p ac ically o
sol e p oblems in implemen ing in e ace
managemen on p ojec s ha a ec ime
pe o mance, al hough i is also necessa y o
s udy he cos pe o mance.
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