W10_SuleimanAljabri_ The Alignment Of Cost and Schedule


 

  1. Problem Definition

Too often the costs and schedule are treated as separate entities. Most of the reporting frustrations that planners and cost controllers face throughout the life of a project can be eliminated with the use of a cost loaded schedule. There are endless advantages of having a fully cost loaded schedule to which we will cover three here; assigning cost accountability, reporting Earned Value (EV) and assisting contract administration. All these aspects help to manage, forecast and report the health of the project.

Continue reading

Advertisements

W10_Murtadha_Investment Decision


  1. Problem Recognition
    A company is looking to invest in their existing plant to meet the increase in demand in the country for oil. The consultant gave two options: upgrade of the existing train in which the company will satisfy the new demand but will not have taken into consideration any additional capacity, or add an additional train which will not only meet the current demand for oil but also have additional capacity for import and future requirements. Expected monetary value will be used to decide which option to be considered.

Continue reading

Wk10_Mahfoodha_Best Selection of Investment in Properties using Noncompensatory Models


 

  1. Problem Definition

I have recently decided to invest in property.  The property market in Oman is currently in a stable condition which is an indication of a good time to invest in properties. However in order to decide on what type of property to buy, an analysis on the best selection is to be conducted. This is hence the topic of this blog

Continue reading

W10-Ali Hubais- Work Prioritization


  1. Problem Definition

Procurement Department is receiving Many Purchase Requisition (PR) or service requisition (SR) in same time from Different Department as they are End user of this PR or SR and all this Requirment are required for the plant some of it are direct requirement & other indirect requirement. Therefore, it is very important to prioritize the work based on criteria of the requirement and either it’s director indirect requirement to the production line.

Continue reading

W10 _Said Alamri_ Investment Decision based on NPV (part two: IRR, ERR&MARR Comparison)


1. Problem Recognition

With reference to my posted W9 _ Investment Decision based on NPV, management decided to invest 60000 OMR. There were two options: the first option has a return on investment with 1500 OMR per month for 10 years. Second option has return of investment with 3000 OMR per month for 5 years. Both investments have same discount rate of 7%. The second option with five years intervals was selected to be the best investment for that particular situation. In this blog I will do the calculation for IRR,ERR for each investments and verify if the selected investment is still valuable after determining IRR&ERR for the investments and compare it with MARR calculated from W5_AlShehhi [2].

Continue reading

W10_Musallam Al-Awaid_ Economic Evaluation Using Net Present Value


 

  1. Problem Definition

The Blog is almost a repetition of week 2 blog. However, here, I used the NPV instead of average increase in production over the four years cycle.

Nowadays, many plants are designed to run for long periods, exceeding 3 years with no turnarounds. In methanol plant, we had 1st turnaround in last April 2014, after 4 years of operation, where we replaced the methanol reactor catalyst.

Before catalyst replacement, we had considered more than a single option. The most feasible option was selected which is replacement. That evaluation is done based on the Net Present Value of each option where the option with highest NPV is selected. Continue reading

W10_AsmaF_Cost plus with Incentive contract


1. Problem Definition

The company has gone through bad experiences in performing some of the critical projects because of contractors. One of the main reasons behind these fails is the contractor. Either the contractors delay the work or go ahead of schedule there’s neither penalty nor advantages. Now the company is about to release a new project for a DSC system (software) for a new petrochemical plant. The DCS system (Distributed Control System) has to ready and running up once the plant is established and start. No delay is acceptable and an early finish is much much much preferred. Target is 180 days.

Continue reading

W10_Hassan Albarrami_ (ERR)


W10_Hassan Albarrami_ (ERR)

 

1. Problem Definition

Continue talking about my construction building project mentioned in W8 and W9 blogs, this time I’m going to explore ERR method to make sure the project still recommended. Like IRR, ERR is used to evaluate the economic justification of project. But this time ERR is taken into account the interest rate external at which cash flow generated over the lifecycle of project.

Continue reading

W10_AlShehhi_Second Tuckman Assessment_Mode & Median


  1. Problem Definition.

A PMI competency development course commenced at Muscat on May 2015, with 25 participants from Oman. The course is broadly divided into face to face sessions as well as 12-week distance learning mode.

Since there have been several non-performing individuals within PMI-Takatuf Team, especially in blog posting assignment, it was decided to do the Tuckmen assessment, using Mode and Median this time instead of average, to see how results might change.

Continue reading