Megaprojects Front-End Planning: The Case of Brazilian Organizations of Engineering and Construction

Otávio Mansur Motta, Osvaldo Luiz Gonçalves Quelhas, José Rodrigues de Farias Filho, Sérgio França, Marcelo Meirino

Department of Production Engineering, Laboratory of Technology, Business Management and Environment, Fluminense Federal University, Rio de Janeiro, Brazil.

DOI: 10.4236/ajibm.2014.48049                

Abstract

The goal of this study is to analyze the adoption of the Front-End Planning method by Brazilian companies which is applied in megaprojects management. For this reason, a survey was conducted with Brazilian companies of different sectors related to Engineering and Construction in order to perceive the adequacy and the frequency of the use of the Front-End Planning method and compare the theory with the market practices. From the eight topics raised to compare the theoretical reference with the organizational practices, only two topics presented relevant differences that need to be investigated in future researches. Among these differences between what is considered in the literature and what is practiced by the companies, it is possible to point out the variations in the project budgets in contrast with the methodology proposal to increase the cost predictability.

Keywords

Project Management, Organizational Strategy, Front-End Planning

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Pricewaterhous Coopers (2005) Project Portfolio Management: A Study of 200 Organizations and 10.046 Projects. PwC Publications, Brisbane.
[2]	Mc Kenna, M.G., Wilczynski, H. and Vandershee, D. (2011) Capital Project Execution in the Oil and Gas Industry. http://www.boozallen.com/media/file/Capital_Project_Execution.pdf
[3]	Levine, H.A. (2005) Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing Benefits. John Wiley & Sons, San Francisco.
[4]	Shenhar, A.J. and Dvir, D. (2007) Project Management Research: The Challenge and Opportunity. Project Management Journal, 38, 93-99.
[5]	Gibson Jr., G.E. and Cho, C.S. (2011) Building Project Scope Definition Using Project Definition Rating Index. Journal of Architectural Engineering, 7, 115-125.
[6]	Smith, C. (2000) Improved Project Definition Ensures Value-Added Performance. Hydrocarbon Processing, 79, 95-99.
[7]	Cleland, D.I. and Ireland, L.R. (2002) Project Management: Strategic Design and Implementation. McGraw-Hill, New York.
[8]	Samset, K. and Williams, T. (2010) Issues in Front-End Decision Making on Projects. Project Management Journal (PMJ), 41, 38-49.
[9]	Kwak, Y.H. and Anbari, F.T. (2009) Analyzing Project Management Research: Perspectives from Top Management Journals. International Journal of Project Management (IJPM), 27, 435-446. http://dx.doi.org/10.1016/j.ijproman.2008.08.004
[10]	Crawford, L., England, D. and Pollack, J. (2006) Uncovering the Trends in Project Management: Journal Emphases over the Last 10 Years. International Journal of Project Management (IJPM), 24, 175-184. http://dx.doi.org/10.1016/j.ijproman.2005.10.005
[11]	Motta, O.M. (2013) Estudo de Praticas com Enfase na Estrategia Empresarial para a Gestao de Megaprojetos: O Caso das Organizacoes Envolvidas com Engenharia e Construcao. M.Sc. Thesis, Production Engineering Department, Federal Fluminense University, Niteroi.
[12]	Back, W.E., Bell, L.C. and George, R. (2008) Critical Activities in the Front-End Planning Process. Journal of Management in Engineering, 24, 66-74.
[13]	Cho, C.S., Gibson Jr., G.E., Wang, Y. and Pappas, M.P. (2006) What Is Preproject Planning, Anyway? Journal of Management in Engineering, 22, 35-42.
[14]	Merrow, E.W. (2011) Industrial Megaprojects—Concepts, Strategies and Practices for Success. John Wiley & Sons, Incorporated, Hoboken.
[15]	Independent Project Analysis (IPA) (2011) http://www.ipaglobal.com
[16]	Construction Industry Institute (CII) (1995) Pre-Project Planning Handbook. Publicacao 39-2. Austin.
[17]	Costa Jr., W. (2010) Metodologia FEL—Programa de Capacitacao para Lideres de Projeto de Capital. Valer-Educacao Vale, Brazil.
[18]	Barshop, P. (2009) Incomplete FEL 2—Destroyer of Capital. Independent Project Analysis Newsletter. Independent Project Analysis, Inc., Ashburn.
[19]	Ingram, C.B. (2009) The Supervising Discipline Engineer`s (SDE) Role in the Front End Planning Process. M.Sc. Thesis, Department of Civil, Construction & Environmental Engineering, the University of Alabama, Tuscaloosa.
[20]	Weijde, G.A.V.D. (2008) Front-End Loading in the Oil and Gas Industry. Towards a Fit Front-End Development Phase. A M.Sc. Thesis, Faculty Technology, Policy and Management, Delft University of Technology, Delft.
[21]	Okoro, B. (2005) Chevron Project Development and Execution Process (CPDEP)—Overview Presentation to NSE. Nigerian Society of Engineers, Abuja.
[22]	Figueiredo, J.A. (2008) Benchmarking em Projetos de Producao de Petroleo e Gas Natural. A Experiencia da Petrobras. Conferencia da Organizacao Nacional da Industria do Petroleo, Rio de Janeiro.
[23]	Couchman, J., Gillespie, B. and Steffen, A. (2008) Avoiding Cost Blow-Outs and Lost Time on Mining Capital Projects through Effective Project Stage Gating. PricewaterhouseCoopers Publications, Brisbane.
[24]	Construction Industry Institute (CII) (2011) https://www.construction-institute.org
[25]	Construction Industry Institute (CII) (1997) Front-End Planning Tools: PDRI and Alignment. Publication 113-1. Austin.
[26]	Gibson Jr., G.E. (2004) Project Definition Rating Index. Construction Industry Institute, University of Texas, Austin.
[27]	Barreto, F.C.P., Borges, J., Ferreira, J.C.A., Lopes, R.H. and Zucco, L.A.O. (2006) Utilizacao de Ferramentas para Melhoria do Planejamento no Gerenciamento de Projetos de Grande Porte na Petrobrás. MBA Thesis, Department of Administration, Faculdade de Administracao, Economia e Contabilidade da Universidade de Sao Paulo (USP), Sao Paulo.
[28]	PMI (2008) PMBOK Guide: A Guide to the Project Management Body of Knowledge. 4th Edition, PMI, Newtown Square.
[29]	Pmsurvey.org: A Global Initiative of PMI Chapters. Relatorio Nacional. (2011) http://www.informal.com.br/pmsurvey/?page_id=160
[30]	Rea, L.M. and Parker, R.A. (2000) Metodologia de Pesquisa: Do Planejamento à Execucao. Pioneira, Sao Paulo.
[31]	Medri, W. (2011) Análise Exploratnria de Dados. Centro de Ciencias Exatas. Departamento de Estatistica, Universidade Estadual de Londrina, Parana.