Articles

Optimizing Time and Cost Efficiency in Delayed Construction Project Using Project Crashing Approach (A Case Study of a Geothermal Power Plant Operator in Indonesia)

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Electricity is a fundamental need that supports modern life across household, industries, and public sector. To ensure the sustainability of electricity in Java and Bali, PT GSE,a Geothermal Power Plant in Pengalengan, West Java, conduct a base structure replacement project for cooling tower which innitialy using the wooden base structure into the Fibre Reinforced Polymer (FRP). This project, known as Project X, was executed by PT XYZ as the EPC contractor. During the execution, cooling tower unit – 1 faced significant delay, posing financial and reputational risks. This research aims to identify the root causes of the delay, evaluate the losses, and proposed solutions for time and cost efficiency using the project crashing method. This research combine interview with key personnel and secondary company data. The critical path analysis conducted by using the Activity on Node (AON) approach, activity mapping using Precedence Diagram Method (PDM), and calculation for additional cost due to overtime conducted by using minimum wages (UMK) for Kabupaten Bandung in 2025. S Curve analysis shows 10 weeks of delay, mainly due to frequent bad weather that prevented outdoor activities according to the HSSE policies. Financially, if there is no corrective action to handle the delay, PT XYZ would be subjected to a project penalty of Rp 2.734.770.052, as stipulated in the cooperation contract with PT GSE. To anticipate the losses, the proposed solution is project crashing by conducting overtime to the critical path activites, which is safer dan more efficient comparing to adding new additional resources. The implementation of project crashing calculated need extra funding about Rp 399.544.839 which only 14,61% compared to the potential penalty sanction. Beyond the financial impact, this strategy also maintains client trust and strengthen future business opportunities.

Proposed Project Management Development for AMA Group

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The research aims to improve AMA Group’s project management to address project delays and identify the root causes. It uses PMBOK as a problem-solving approach, utilizing expert judgment and historical data to identify root causes and assess project management aspects. The root cause of project delays is related to project scope, schedule, and resource management. Work Breakdown Structure (WBS) and Critical Path Method (CPM) are recommended tools for project scope management, scheduling, and resource management. These techniques enable effective change control, comprehensive scope planning, realistic schedule planning, streamlining workflow processes, addressing labour shortages, and regularly reviewing and improving project structures and processes. By integrating these tools, AMA Group can mitigate potential delays and enhance project efficiency.