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A paper presented
to the first
Engineering Congress,
The Institution of Engineers, India -
Calcutta, January 1987
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Appendix A
Overseas Project Management
Typical Problem Areas and Situations
A) During Concept Development
- Project Objectives
- Technology
- Location
- Facility Selection And Design
- Sponsor Sharing
- Capital Cost Estimate, Split and Sourcing
- Management Capability of Prime Borrower
B) Environmental Conditions
- Impact on Physical Environment
- Impact on Social Fabric
- Impact on Local Industry
- Regulatory Intervention
- National Content
- International Content
- Political Stability
C) Market Conditions
- Raw Material Supply
- Raw Material Cost
- Energy Requirement & Supply
- Sales Effort, Revenues, Sensitivity to Completion
- Customer/User Rejection
- Purchase Agreement Default
- Lack of Detail in Market Requirements
D) During Planning
- Inadequate Project Planning
- Inadequate Field Data
- Inadequate Design
- Unfamiliar Industrial Field
- Regulatory Approvals
- Political Approval
- Social Acceptance
- Inadequate Concept Development
- Precipitous Market Pursuit
- Failure to Assess Project Risks
E) Organizational Difficulties
- Joint Venture Partner Mismatch
- Untrained Project Management Team
- Inadequate Project Team
- Senior Staff Changes
- Captive or Uncooperative Engineering Team
- Unmotivated Participants
- Limited Local Resources or Skills
F) During Execution
- Inadequate Execution Planning
- Precipitous Project Initiation
- Multinational Consortium
- Multinational Engineer/Constructor
- Uncooperative Foreign Participant
- Limited Domestic Experience
- Inadequate Infrastructure
- Failure to Complete Contract
- Lack of Start Up Planning
- Unexpected/Insurmountable Technical Hurdle
G) Control Difficulties
- Lack of Communication & Direction
- Lack of Feedback On Progress, Problems & Solutions
- Lack of Commitment to Succeed
- Unrealistic Budget
- Unrealistic Schedule
- Lack of Scope Control
- Lack of Quality Control
- Poor Project Performance
H) Start-Up And Operating Difficulties
- Inadequate Operator Training
- Lack of Technology Transfer
- Excessive operating Costs
- Limited Marketing Capability
- Limited Exporter Capability
- Inadequate Commercial Arrangements
- Insufficient Gross Annual Revenue
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Summary
