Project Evaluation Using Earned Value Analysis and Lean Project Management to Minimize Waste. Caste Study: Indarung VI Project, PT Semen Padang

Sarvina, Sarvina (2016) Project Evaluation Using Earned Value Analysis and Lean Project Management to Minimize Waste. Caste Study: Indarung VI Project, PT Semen Padang. Diploma thesis, Universitas Andalas.

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Abstract

Nowadays, the infrastructure development is one of the important things in developing country strategy. Country development could be increased as long as the industry growth in each area in Indonesia; including province and city. In the other side, industry facility in Indonesia is limited and not enough to compete with the competitor industry (from other country), this is the main issue and problem of Indonesia’s industry. The status of West Sumatera is still as the development province in industrial sector. Although the majority income in this area is mostly from agricultural sector, but it has an industry that has a good economic growth, named PT Semen Padang. In current situation, PT Semen Padang has five plants area named Indarung I, II, III, IV, and V and they want increase their capacity and income by develop Indarung VI. Indarung VI project has sub construction activities; mechanical construction, electrical and instrumental construction, and civil construction. Civil construction has eight types, named CC-1 until CC-8. CC-1 (Civil Construction 1) was the first construction which was processed. According to project performance in July 2015, its progress reached 65.64%, but estimated plan was only 86.58%. Means, the project progress was worse than the target in 20.94%. It can be concluded that company as the owner needs to identify current and potential waste and risk to find good solution to reach customer satisfaction. Earned value helps project manager to know how much the performance compared with the project cost. The variables for earned value calculation were BCWS (Budgeted Cost Work Schedule), ACWP (Actual Cost Work Performance), and BCWP (Budgeted Cost Work Performance). These variables as the input for calculating Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), and Schedule Performance Index (SPI). Lean project management has some principles and this final project used these two principles as the tools. The first principle was project system. Project system is the method which concerns on identify the waste and find the right solution. The second principle was project risk management. Risk management is purposed to identify risk events that will be happened which is caused by waste happened. The cost variance and cost performance index for 15 months is the good result for month 5,6,8,9,and 10. The good performance for schedule variance and schedule performance index for month 1. On the first month, the performance of contractor is better than planning but the 2nduntil 15th month, the performance is bad. The waste that has been identified is 40 wastes which based on waiting, rework, and movement. Risk respond is used to minimize risk that will be happened on project. Keywords: development, lean project management, minimize risk, project evaluation, risk

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