Project Execution Plan Procedure Coal Bin

PROCEDURE
PT. TUBAN STEEL WORK

Fabricator&Engineering Service
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PROJECT EXECUTION PLAN
CLIENT
PT. SEMEN GRESIK (PERSERO) Tbk.
PROJECT NAME
TUBAN IV PROJECT
OUR PO NO
OUR WO NO
0
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Issued For Bidding

Date Of Issue
Status
Pekerjaan Pabrikasi & Ereksi Struktur Baja Belt Conveyor 649 BC03
Cement Loading Lokasi Pelsus Semen Gresik Di Tuban
Prepared
by
Reviewed Approved
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1.
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PURPOSE................................................................................................................6

2.
SCOPE...................................................................................................................6
3.
DEFINITION..............................................................................................................7
3.1.
Project Execution Plan (PEP)..............................................................................................................................
3.2.
Front End Schedule.............................................................................................................................................
3.3.
Project Schedule.................................................................................................................................................
3.4.
Resources...........................................................................................................................................................
3.5.
Project Budget.....................................................................................................................................................
3.6.
Project Cost.........................................................................................................................................................
3.7.
Cost Control........................................................................................................................................................
3.8.
Current Budget....................................................................................................................................................
3.9.
Posted Cost.........................................................................................................................................................
3.10. Committed Cost..................................................................................................................................................

3.11.
Total Expense.....................................................................................................................................................
3.12. Actual Cost.........................................................................................................................................................

3.13. Total Actual.........................................................................................................................................................
3.14. Forecast to Go....................................................................................................................................................
3.15. Estimated at Completion.....................................................................................................................................
3.16. Work Package or Summary................................................................................................................................
3.17. Work Unit, known as Master Schedule...............................................................................................................
3.18. Work Item............................................................................................................................................................
3.19. Work Step or Work Sequence............................................................................................................................
3.20. Progress.............................................................................................................................................................
3.21. Baseline..............................................................................................................................................................
4.
REFERENCE............................................................................................................9
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DETAIL PROJECT EXECUTION PLAN PROCEDURE.........................................................10

5.1. General..............................................................................................................................................................
10
Fabricator&Engineering
Service
5.2. Project Management & Control Scheme...........................................................................................................10

5.2.1.
Duty & Responsibility........................................................................................................................10
5.2.2.
Project Communications....................................................................................................................12
5.2.3.
Project Document Control..................................................................................................................13
5.2.4.
Documents Distribution Procedure for Approval to Company..........................................................14
5.3. QA / QC Management Plan............................................................................................................................... 14
5.3.1.
QA Management Plan........................................................................................................................14
5.3.2.
QC Management Plan........................................................................................................................21
5.4. Financial Management Plan..............................................................................................................................24
5.4.1.
Introduction........................................................................................................................................24
5.4.2.
Scheme of Roll and Financial Management......................................................................................25
5.4.3.
Financial Function..............................................................................................................................26
5.5. Risk Management Plan..................................................................................................................................... 27
5.5.1.
Introduction........................................................................................................................................27
5.5.2.
Scheme of Project Risk Management................................................................................................27
5.6. Surveying Plan.................................................................................................................................................. 27
5.6.1.
Introduction........................................................................................................................................27
5.6.2.
Access Route For Installation...........................................................................................................27
5.7. Management Plan............................................................................................................................................. 27
5.7.1.
Engineering Organization...................................................................................................................27
5.7.2.
Engineering Communication..............................................................................................................28
5.7.3.
Document Control..............................................................................................................................28
5.8. Procurement Management Plan........................................................................................................................29
5.8.1.
Introduction........................................................................................................................................29
5.8.2.
Job Description...................................................................................................................................29
5.9. Logistic Management Plan................................................................................................................................ 30
5.9.1.
Job Description...................................................................................................................................30
5.9.2.
Inventory Control...............................................................................................................................30
5.9.3.
Warehouse..........................................................................................................................................30
5.9.4.
Outdoor Warehouse............................................................................................................................31
5.10. Labor Recruitment & Labor Relation Plan........................................................................................................31
5.10.1. Hiring and Releasing Policies............................................................................................................31
5.10.2. Discipline and Disciplinary Policies..................................................................................................31
5.10.3. Disciplinary Action Policies...............................................................................................................31
5.10.4. Based on the grade of discipline punishment, such as :.....................................................................32
5.10.5. Remuneration Policy..........................................................................................................................32
5.10.6. Contract employment consideration...................................................................................................32
5.10.7. Severance Pay Policy.........................................................................................................................32
5.10.8. Plan to Hire Local Labor....................................................................................................................33
5.11.
Health, Environmental and Safety Management Plan......................................................................................33
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5.12. Security Plan..................................................................................................................................................... 33

5.12.1. Task of Securities...............................................................................................................................33
5.12.2. Facility................................................................................................................................................33
Service
5.12.3. Location..............................................................................................................................................34
5.12.4. Job Description...................................................................................................................................34
5.13. Mobilization of Equipment and Manpower........................................................................................................34
5.14. Construction Management Plan.......................................................................................................................34
5.14.1. Introduction........................................................................................................................................34
5.14.2. Job Description...................................................................................................................................34
5.14.3. Project construction schedule.............................................................................................................35
5.14.4. Construction Control Schedule..........................................................................................................35
5.14.5. Construction Coordination.................................................................................................................35
5.15. Demobilization of Equipment and Manpower...................................................................................................35
5.16. Front End Schedule.......................................................................................................................................... 36
5.17. Project Schedule............................................................................................................................................... 36
5.18. Resources Plan................................................................................................................................................ 36
5.19. Project Budget.................................................................................................................................................. 37
5.20. Projected Cash Flow......................................................................................................................................... 38
5.21. Project Procedures........................................................................................................................................... 39
5.21.1. Prepare Project Execution Procedure Check List..............................................................................39
5.21.2. Prepare Project Procedures.................................................................................................................39
1. PURPOSE
This project execution plan prepared for Pekerjaan Pabrikasi & Ereksi Struktur Baja Belt Conveyor 649 BC03
Cement Loading Lokasi Pelsus Semen Gresik Di Tuban Project. It is intended to enhance communication and
coordination of project activities between Company and Subcontractor.
The Company is PT SEMEN GRESIK (PERSERO)
The contractor is PT. Tuban Steel Work
This procedure serves as a project guideline for all parties to achieve effective and efficient project
implementation. The primary uses of the project plan are to document planning assumptions and decisions, to
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facilitate communication among stakeholders, and to document approved scope, cost and schedule baseline.
This
procedure
PT. TUBAN
STEEL
WORK describes the basic and method to be used in controlling the cost through out the project
period, to Service
detect the variance by identifying potential problem and delay as early as possible. This procedure
describes the basis and method to be used in controlling the schedule throughout the project period, to detect
the variance by identifying potential problem and delay as early as possible.
2. SCOPE
This procedure covers detail of Project Execution Plan based on the latest project information. This document
is developed to enhance communication and coordination between the participants and/or the company. It
establishes project execution plant with the following item:
Project Management and Project Control scheme
Engineering Management Plan
Procurement Management Plan
Logistic Management Plan
Construction Management Plan
Labor Recruitment & Labor Relation Plan
Front End Schedule
Project Schedule
Resources Plan
Project Budged
Project Cash Flow
Project Procedure
Data Collection
Input Data into Report
Varian Analysis
Corrective Action
Budget Revision
Update Current Budget
Update Total Expense To Date
Update Total Actual To Date
Calculate Forecast To Go
Update Estimate at Completion
Update Project Cash Flow
Update Project Balance
This Procedure also covers :
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Initiation is to determine a baseline for controlling the schedule for engineering, procurement,
construction
PT. TUBAN STEEL
WORK and overall activities, including the progress measurement.
Data collection is to collect progress and/or status report from engineering, procurement and
construction.
Progress Monitoring is to calculate the progress for engineering, procurement, construction and overall
project.
Varian Analysis is to analyze the difference between plan and actual of every discipline and its impact to
project completion date.
Corrective Action is to perform necessary steps attempting to recover any schedule delay by means of
expediting, accelerating, fast tracking, adding resources.
Forecast the final completion date is to estimate the end date of project completion based on the current
progress achievement by means of CPM scheduling technique or bar charting.
Recovery Schedule is to develop a revised project schedule after the fact that the current progress
achievement slipped the project completion date, using CPM scheduling and cost optimation technique.
Resource Forecasting is to calculate the resource requirement needed to accomplish the remaining
activities.
Re-planning is to revise the project schedule in case there is a major change in scope impacting the
project completion date
Reporting is to prepare updates reports by summarizing the project progress into the reporting format
3. DEFINITION
3.1.
Project Execution Plan (PEP)

Contains the formal approved document used to guide both project execution and project control in
achieving the project objective and goal, which are determined, by the Company and Subcontractor
PM concerning the quality, cost and schedule aspect as per agreement.
3.2.
Front End Schedule

Detail planned dates for performing activities, used as a project baseline tool. (attached in technical
document).
3.3.
Project Schedule
The detail-planned dates for performing activities and the planned dates for meeting milestone, used
as a project control tool.
3.4.
Resources
The manpower, equipment and material required for project in achieving its objective and
implementation.
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Project Budget
PT. TUBAN STEEL The

WORK
real cost for implementing the project, which comes from contract price minus overhead cost,
profit, marketing expenses, corporate cost and contingencies, approved by Vice President and
Operation Manager.
3.6.
Project Cost
The cost required for project implementation.
3.7.
Cost Control
A process of keeping cost within the bounds of budget or standard based upon work actually
performed, including monitoring actual versus budget, variance analysis, integrated cost/schedule
reporting, progress analysis and corrective action.
3.8.
Current Budget
A valid budget at a point in time.
3.9.
Posted Cost
Cost of work completed to date.
3.10.
Committed Cost
Cost of work committed to be done.
3.11.
Total Expense
Posted cost plus committed cost.
3.12.
Actual Cost
Actual cost of work committed to be done to date.
3.13.
Total Actual
Posted cost plus actual cost.
3.14.
Forecast to Go
Predicted cost for finishing the remaining work.
3.15.
Estimated at Completion
Total expense cost plus forecasted to go.
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Work Package or Summary
PT. TUBAN STEEL The

WORK
project deliverable at the lowest level of Work Breakdown Structure contains several activities
with main key date(s) in monthly basis. The work package could also be treated as a milestone to
achieve the target at a certain time.
3.17.
Work Unit, known as Master Schedule

Contains all major activity sequences and interdependencies using PERT method, showing the
critical path and floats in weekly basis.
3.18.
Work Item
Support to level-1 work unit that covers all activities using PERT method, showing the critical path
and floats in daily basis.
3.19.
Work Step or Work Sequence

Support to level 2 Work Item and is the lowest level of project activities in daily basis to measure the
progress. Some projects have more detail than work step, depending on the type and complexity of
the project. The more detail level needs more effort to control.
3.20.
Progress
Actual work completed divided by total scope of work. Physical progress measurement is determined
on monthly basis at the monthly cut off date for all specific work units and for the overall work, the
weight of each specific work unit being proportional to its cost value
3.21.
Baseline
The original plan ( a project work package or an activity ) plus or minus approved changes. Usually
used with a modifier (e.g., cost baseline, schedule baseline, performance measurement baseline).
4. REFERENCE
These procedure developed refer to the following document :
Quality Manual
Project Management Guideline Procedure
Project Execution Plan Procedure
Project Schedule Control Procedure
Project Progress Report Procedure
Project Change Management Procedure
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5. DETAIL PROJECT EXECUTION PLAN PROCEDURE

Service
5.1.
General
Upon completion of Internal Kick off meeting, Project Manager (PM) and project team coinciding with
the preparation of Client Kick off meeting will review and complete the Project Execution Plan (PEP),
to ensure its completeness and accuracy for field implementation. In case of limited time to prepare
both Client Kick off meeting and PEP, PM should attempt to accelerate the preparation work.
The schedule described in contract document is defined as Master Schedule and become the original
summarized schedule (level 2 or 3). The amount stated in the contract is known as Contract Price.
The real cost for implementing the project named project budget, is the contract price minus
overhead cost, profit, marketing expenses, corporate cost and contingencies.
5.2.
Project Management & Control Scheme

For executing of this project the Project Director will act as the representative of board management
to arrange a Project Management which will be responsible for execution the project
5.2.1.
Duty & Responsibility

Due to the wide scope as well as technical challenges, the subcontractor intends to
implements a project organization task force. By this organization all resources needed
to accomplish project will be assigned full time in strict accordance their rule and
responsibility for successful of project. Set up a project organization and its
responsibility as following.
Project Manager : who is the number one manager in this project has responsibilities as follows:
Review and complete the Project Execution Plan
Collect all information related to the Project Execution Plan
Subcontractor contact person / decision maker related to the project
Review and approve Front End Schedule
Review and approve Project Schedule
Review and approve Resources Plan
Complete, review and approve Project Execution Plan Check List
Review and approve Project Plan according to procedure approval process
Monitoring and control of the project cost
Implementation of the project according to the schedule
Liaison with the Company and obtaining necessary information from the owner and
vendors and feeding in the engineering, procurement and construction section
Coordination developing and compiling all project documents as per the agreed documents
list and coordinating with the Company for approval of all relevant documents
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Coordination mobilizing requires for maintaining schedule

Coordination Procurement of all items
Coordination Implementing all sub subcontractors
Coordination Resolving conflicts
Coordination Archiving correspondences
Review and approve the monthly cost summary report
Provide variance analysis and determine necessary corrective action
Review and approve the proposal budget revision
Approve the Project Control System
Approve the re-planning schedule
Manage project in day to day
Project Control Manager : who is a manager that has almost all of the project information has
responsibility as follows:
Coordinate Preparing summarize Front End Schedule
Coordinate Preparing summarize Project Schedule
Coordinate Update summarize Resources Plan
Coordinate Update summarize Project Budget
Coordinate Preparing Projected Cash Flow
Coordinate Scheduler and Reporting
Collect all information related to the PEP
Coordinate Prepare detail Front End Schedule
Coordinate Prepare detail Project Schedule
Update manpower, material and equipment plan (detail resources plan)
Update detail Project Budget
Review and complete Project Execution Procedure Check List
Coordinate Preparing and finalizing Project Procedure according to procedure approval

process
Determine the schedule recovery and re-schedule, together with Project Manager
Ensure that all on-going projects are within the schedule
Provide variance analysis and recommend necessary corrective action
Review the proposal budget revision
Update project cash flow
Update project balance
Project Control Engineer : who is the supporting engineer to Project Control Manager has
responsibility as follows:
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Input data into monthly cost summary report and project cost status report
Provide variance analysis and recommend necessary corrective action
Prepare budget revision
Update current budget
Update total expense to date
Update total actual to date
Calculate forecast to go
Update estimate at completion
Review the contract and determine the Project Control System such as level of activities,
weight value and progress measurement
Collect the data and other reports regarding the progress and schedule control
Calculate the progress percentage for engineering, procurement and all work discipline
Review the difference between plan and actual, analyze constraints and its impact to
project schedule
5.2.2.
Prepare forecast and/or recovery schedule, resource forecast, re-planning and reporting
Responsible to the integrity and maintenance of the primary project file
Project Communications
5.2.2.1.
Introduction
This section is implemented for correspondence between Company and Subcontractor.
5.2.2.2.
Company correspondence
All formal correspondence to Company will be by Subcontractor transmittal letter.
Drawing submittals, design information submittal, and project progress report will be
prepared by all project section.
5.2.2.3.
Internal Correspondence
For correspondence regarding progress and schedule, subcontractor and vendors will
correspond directly with Project Manager and provide carbon copy to Site Manager.
For correspondence regarding technical design matter, quality control and start-up and
performance testing, subcontractor and vendors will correspond directly with the
Engineering Manager and provide carbon copy to Project Manager.
5.2.2.4.
Distribution Procedure for Correspondence

Due to the tight schedule for this project and the length time required for delivery by
regular mail services, correspondence will generally be either by facsimile or express
courier service. Project delay due to delay in delivery of documents will be responsibility
of the sender.
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Telephone Communications
Others may use telephone communication to transmit information or to further the
consideration of information. Telephone conversations are not conclusive in them and
must be documented by telephone memoranda if the communication has an official or
significant status. It is not necessary to assign log number to telephone memoranda.
Telephone memoranda will be prepared and distributed to the parties involved in the
telephone discussion with copies to other parties, as required.
5.2.3.
Project Document Control
5.2.3.1.
Introduction
Project documents to be controlled include official project correspondence, memoranda,
calculations, drawings, design specifications, test records, manufacturer's material
certifications, manufacture's drawing and other such records. Document control
procedures are based on the project file system developed under the supervision of
Project Control.
5.2.3.2.
Administration
Project Control shall serve as the central point of project document control and shall
process or supervise the processing of documents from outside sources as well as
documents generated from consortium internal distribution or transmitted by
Subcontractor to outside sources. The activities include receiving, application of file
numbers, distributing, expediting and releasing all project documents.
5.2.3.3.
Documents Receipt
Documents may be received from outside sources such as Company, subcontractor and
vendors.
5.2.3.4.
Document Identification
All project mail, including faxes telegrams and package shall be delivered to Project
Control as incoming documents. Project Control shall process the original copy of each
incoming document, other than documents submitted in multiple copies (proposal,
instruction manual, etc.) and the transmittal letter or form for documents submitted in
multiple copies.
Processing shall include stamping document with the project routing stamp, dating the
receipt, marking the appropriate file number and indicating action and information
parties in the space provide on the routing stamp, and making required copies for action
and information parties. All documents should use numbering system as per attachment
5.2.3.5.
Project Management Review

Project Control shall forward the action copy of the non-technical and commercial
documents to Project Manager who will review the document package. He will pay
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particular attention that the proper file numbers are assigned and the correct party is
designated. The complete document package shall be returned to Project Control for
transmittal of the action and information copies, and filling of the original documents.
Project Control shall forward the action copy of the technical documents to Engineering
Manager who is assigned and the correct party is designated. The complete document
package shall be returned to Project Control for transmittal of the action and information
copies, and filling of original documents.
5.2.3.6.
Responsible Action Party

The copy of documents transmitted to the responsible action party shall be marked with
the word ACTION and route directly to the action party. The responsible action party is
responsible to review the document and provide the action as required. The responsible
action party may make further distribution of copies for action to one or more of the
project team or other personnel.
5.2.3.7.
Project Reference Documents

Documents having only temporary significance or which are used for reference purpose
in general will not be filled in the project file.
5.2.3.8.
Outgoing Documents
Project Control shall process all outgoing correspondence. Processing shall include
verification of file numbers, preparation of documents for mailing, completion of
Subcontractor internal distribution and distribution of copies to the project file, with
appropriate copies to subcontractor, other parties and Subcontractor Site Manager.
5.2.3.9.
Manuscripts and Preliminary Drafts

Manuscripts and preliminary draft of specifications, reports and other such documents
will not normally be maintained in the project files.
5.2.4.
Documents Distribution Procedure for Approval to Company

Each consortium member shall be responsible for getting approval to own drawing from
Company through Subcontractor Engineering Manager. When distribute the drawing
packet to Company, each consortium member or Supplier shall send a copy of the
drawing to Project Control for drawing control.
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QA / QC Management Plan

5.3.1.
QA Management Plan
5.3.1.1.
Introduction
The subcontractor will issue Project Quality Assurance Plan to assure all material,
equipment, fabrication and installation process fulfill the project requirement by referring
to the Quality System requirement. The Document is model of Project Quality Plan that
will be used by subcontractor during perform The Project.
5.3.1.2.
Purpose
This document will describe The Quality System, and subcontractor to assure the
Project requirement will do activities and Quality Standard will be fulfilled. Referring to
The Quality System of subcontractor will develop Project Quality Plan.
5.3.1.3.
Terminology
Vendor : The companies that appointed by subcontractor and approved by
subcontractor/company to supply part of product and perform part of subcontractor
scope of work or services for this project purpose.
5.3.1.4.
Quality Requirement
5.3.1.4.1. Management Responsibilities

Organization chart will be developed base on project scope of work requirement.
Responsibilities of each member explained as follows :
Quality Control / Quality Assurance Division Manager
as Management
representative together with Project Manager should evaluate the Project

system effectiveness; ensuring that complain have been taken up and The
Quality Requirement have been fulfilled. Another responsibility of QA/QC
Division Manager is:
Perform Quality Audit
Evaluate vendor or sub vendor Quality System.
Project Manager has responsibilities to perform The Project Quality

Management System, and ensuring that all quality activities by refer to the
Quality Procedure have been implemented by all Departments, approve the
Project Quality Plan that have been prepared by QA/QC Manager, lead
project review meeting to ensure that all quality problems have been
responded and follow up by related departments.
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Project Quality Assurance / Quality Control Manager has responsibilities to

prepare The Project Quality Plan, evaluate the project execution by survey,

audit or review and assist of Project Manager in project review meeting that
attended by Department Manager. Project review meeting will evaluate:
Implementation of Quality System and project requirement.
Evaluate of corrective action request, and all non-conformity.
With relevant department discuss about corrective action to be taken.
Project QA/QC Manager under controlled by Project Manager will report The
Project Quality System implementation to QA/QC Division Manager.
Department Manager have responsibilities to issue the procedures that will

be used to support their activities, ensure that implementation of these
procedures have been in line with Project Quality Plan.
Site Manager has responsibilities to implement The Project Quality

Management System and ensure that all quality activities on construction
phase have been implemented by refer to the relevant procedure.
5.3.1.4.2.
Commitment Management
Management of subcontractor has a commitment to produce qualified products
through:
Communication is one of importance think to fulfill the customer requirement

base on the government regulations.
5.3.1.5.
Define quality policy and objective.
Conduct management review.
Assure the availability of resources.
Define management representative.
Quality System
Project Quality Assurance Plan will be supported by management procedure and
detailed by relevant procedures, describe regulation of process control of each
department activities. During performed this project, Project Quality Assurance Plan and
Management Procedure will be controlled by Project Quality Assurance/ Quality Control
Manager (Project QA/QC Manager), Project QA/QC Manager and relevant Department
Manager will develop Project Quality Assurance Plan and relevant procedures.
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5.3.1.6.
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Contract Review
During perform this Project, Engineering Manager will be supported by relevant
Department Manager, have responsibilities to review and verify engineering design
changes. The changes related to the construction activities will be reviewed and
clarified by Site Manager. The clarifications of the changes include all aspect, and not
limited to the commercial aspect, schedule of project, and etc. Project Manager should
approve all deviation or the changes item.
5.3.1.7.
Design Control
5.3.1.7.1.
Responsibilities
Engineering Manager has responsible to control all engineering activities.
5.3.1.7.2.
Interface Design Control

Engineering Manager will controlled interfacing design with other party and or
authorize party. Project Engineering Manager identify the items or documents that
will interface and the document that should be approved by company.
5.3.1.7.3.
Input Design
Engineering Manager will control and develop all design information from
company, vendor, authorize party and assure that only up to date information will
be used and distributed to relevant department. Design criteria will be fixed refer
to contract requirement and specification.
5.3.1.7.4.
Out put Design

Out put design will produce approved of documents, specification drawing,
procedures and calculation sheet and another work sheet. Quality Assurance/
Quality Control Department will review out put design to make sure that the
designs have been:
Fulfill out put design requirement.
Insist of acceptance criteria
Conform with regulation
Identify specific characteristic
Engineering Manager will approve the design out put to make sure the design
procedure have been followed and approved by authorized personnel and
distributed to other related departments.
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Design Verification
Project Engineering Manager has responsibilities to control and develop the
design verification. The important items that should be confirmed during design
verification are:
5.3.1.7.6.
Safety System of equipment
Accuracy of material take off
Accessibility / operation ability
Construction ability
Design Change Control

Project Engineering Manager will control design changes. Project Engineering
Manager will review and make sure that design change effects have been
observed by relevant department and design change not deviate from project
contract requirement.
5.3.1.7.7.
Field Design Change

Field Engineer will control design change at site. The effect that caused by design
change will be evaluated by Field Engineer and will be reported to Engineering
Manager.
5.3.1.8.
Document Control
Each administration department will control correspondence document. Engineering
Manager will control technical document as drawing, procedure, vendor technical
document. All Department Manager should ensure that only latest revision document or
procedure that will be used as work reference, if prior revision document being used as
reference, this document should be marked Void .
5.3.1.9.
Procurement and Sub Contracted

Procurement Manager will control procurement activities and Site Manager will control
Sub Subcontractor.
5.3.1.9.1.
Vendor or Sub Subcontractor Audit

Procurement department select vendor or sub subcontractor from company
vendor list. Vendor or sub subcontractor will be proposed to the company for
approval. Vendor or sub subcontractor audit based on their capabilities and
experiences.
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Quality requirement of vendor or sub subcontractor

All vendor or sub subcontractors should keep the quality requirement as

mentioned on purchase order. Vendor or sub subcontractor Quality Plan could

be developed by refer to Subcontractor Quality Plan and or contract
requirement.
5.3.1.9.3.
Data for procurement and sub contract

Requisition Document and another supporting document as technical
specification, quality system requirement, test specification, acceptance
criteria, inspection and test plan, instruction sheet to vendor will be controlled
by:
Identify department that will be responsible to prepare, review or approve

these documents including revised document.
5.3.1.9.4.
Review the relevant document prior publishes purchase order.
Bid. Evaluation
Bid evaluation, purchase order and sub subcontractor were controlled by
consider;
Ensuring that bid document have been conformed with requisition

requirement document
Pre evaluation, to ensure that vendor or sub subcontractor have been

qualified and selected refer to approved vendor list.
Clarify unclear condition of bid evaluation, prior purchase order or sub

subcontractor document published.
5.3.1.10.
Material and Equipment Supplied by Company

Materials or equipments that supplied by company will be verified quality and quantities
conform to the quality requirement specification. By refer to the Receiving Material
Procedure, and all non-conformity or damages will be reported to company.
5.3.1.11.
Inspection and Test

To ensure project activities meet customer requirements, subcontractor will submit The
Inspection and Test Plan. It is subcontractor guideline to perform activities Inspection
and Test.
5.3.1.11.1.
Organization
Inspection activities will be performed by personnel that have been qualified
and controlled by Quality Assurance / Quality Control Department.
5.3.1.11.2.
Inspection and Test Plan
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Inspection and Test Plan will be fitted to identify detail items of inspection
activities will be done by vendor or sub subcontractor, subcontractor,

Company, third party or government representative, especially for Hold
Points and Witness Point. This document is as vendor or sub subcontractor
references to perform inspection and test.
5.3.1.11.3.
Shop Inspection Procedure

Quality Assurance / Quality control Manager will supervise all inspection
activities for material/equipment, and review inspection report to ensure that all
purchase order requirement and Project specification have been fulfilled.
Having ensured the all inspection items have been done, and the material /
equipment conform to the specification, Quality Assurance / Quality control
Manager or his representative will publishes Inspection Release Notice
(IRN).
IRNs copy will be given to traffic Department for packaging and
shipping preparation.
5.3.1.11.4.
Receiving Material Inspection

Quality Assurance / Quality Control Manager and Logistic Manager will arrange
and supervise inspection activities during receiving material on site to identify
and check the material or equipment condition.
Inspection result will be
recorded and reported to Site Manager. Non-conformity was found during

receiving material process will be reported to Project Engineering Manager for
take corrective action.
5.3.1.11.5.
Inspection and Test on Construction Phase

Inspection activities will be performed on site will be arranged and controlled by
Quality Assurance / Quality Control Manager. All Inspection activities between
sub subcontractor, subcontractor, company and other parties will be identified
and clarified on Inspection and Test Plan; Including clarify Hold Point and
Witness Point. Non-conformance item that found during inspection will be
controlled by relevant procedure.
5.3.1.11.6.
Final Inspection
Inspection and Test of each system will be done by refer to the inspection
planning. Result of inspection should be evaluated to the customer
requirement specification. Final Inspection will be performed after equipment
and/or system completely erected and it become document to release precommissioning.
5.3.1.11.7.
Inspection and Test Report
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Inspection report of fabrication and procurement process will be controlled by

Quality Assurance / Quality Control Manager. Inspection Report of construction

5.3.1.12.
process will be controlled by Quality Assurance / Quality Control Manager.

Inspection/Test Equipment and Measurement Instrument Control
All equipment that will be used during inspection, test and measurement should be
calibrated, identify and preserve as relevant procedure. Subcontractor, Vendor or sub
subcontractor should do all activities mentioned above.
5.3.1.13.
Control of Non Conforming Items

Project Engineering Manager have responsible to control and prepare corrective action
plan for non-conformance item of vendor equipment. Project engineering Manager will
control non-conformance item during construction. Project Engineering Manager will
arrange these activities after receiving non-conformity report:
Review Report
Find source of non conformance and make corrective action
Reported non conformance to company as required
Supervise execution of corrective action.
Control of design change for repair as design change procedure.
Quality Assurance / Quality Control Manager will arrange these activities mentioned
below:
5.3.1.14.
Review and perform the relevant Inspection item of the corrective action.
Ensure that corrective action will be finished.
Corrective Action
Quality Assurance / Quality Control Manager will identify the condition that cause of
deviation to the Project Quality.
Quality Assurance / Quality Control Manager will arrange the meeting to find sources
and fix the plant to avoid this condition will be happened.
5.3.1.15.
Storage, Packaging and Shipping

Packaging / shipping Procedure or method should be provided to ensure all material
and equipment was controlled and avoids material damage or loose. All material should
be good packaging for shipping/delivery or storage in certain period and provided with
complete document. Logistic Manager or assigned personnel is responsible to control
those material or equipment. Without completed requirement document material or
equipment prohibited bringing out from the warehouse.
5.3.1.16.
Quality Report
Quality Report Document will be given to the company as Project requirement.
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Quality Audit
Quality audit for internal subcontractor organization or vendor / sub subcontractor, will
be planed and controlled by Quality Assurance / Quality Control Manager. Result of
audit will be documented by Quality Assurance / Quality Control Manager and reported
to Division QA/QC Manager.
5.3.2.
QC Management Plan
5.3.2.1.
Introduction
Quality Assurance / Quality Control Department will prepare Quality Control guidance of
material and equipments inspection that will be used during fabrication and repair work.
5.3.2.2.
Purpose
Project Quality Control Plan describe work methods and inspection activities as
mentioned on Quality Project requirement. Project Quality control Plan, Inspection &
Test Plan and Quality Control procedure will be prepared to provide inspection activities
as mentioned below:
Arrange
inspection
activities
between
Vendor,
Subcontractor,
Contractor,
Government and third party during fabrication, construction phase and certification
process.
Perform inspection and test, internal or witnessed by company during fabrication or

construction phase.
Ensure all test equipments, measurement instruments that will be used during
inspection in valid calibration period
Perform certification of equipments that required certificate from authorize party or

Government.
5.3.2.3.
Preserve inspection and test report including non-conformity report.
Terminology
Any terminology related to QC Management plan described as follows :

Vendor : The company that appointed by subcontractor and approved by company
to supply part of product, performed part of subcontractor scope of work or
services for this project purpose.
Third Party: Subcontractor subcontracted inspection company approved and
appointed to act on behalf of Migas.
5.3.2.4.
Responsibility
Responsibility each member described as follows :
Quality Assurance / Quality Control Manager has responsible:
Ensure that Project Quality Control Plan conform to quality project requirement.
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Quality Assurance / Quality Control Department representative to make coordination

with another department during perform the project.

Inspector : Perform Quality Control activities as mentioned on the Inspection and Test
Plan, including internal test and inspection or witnessed by company, prepare and
review inspection and test record.
Document Control : To assist and support Quality Assurance / Quality Control Manager
in the administration and documentation matter.
5.3.2.5.
Supporting Procedures of Project Quality Control Plan

For guidance of implementation Project Quality Control Plan during phase procurement
fabrication and erection, Quality Assurance / Quality Control Department will provide
with Quality Control procedure as follow:
WPS/PQR & WPQT
Another Procedure if required
5.3.2.6.
Inspection Activities
During performed of inspection activities, SUBCONTRACTOR will refer to The
Inspection and Test Plan, Customer Requirement.
5.3.2.6.1.

Inspection and test plan will describe inspection and test activities during
construction and commissioning phase.
Main activities of site inspection and test are:
Documented all site inspection was performed by subcontractor and

submitted to the company for approval.
Arrange inspection between subcontractor and company.
Ensure welder personal and NDE operator that involved in this project and
were certified.
Collect all inspection and test data as electrical equipment, instrument

equipment, mechanical equipment, civil work, piping, isolation painting etc.
Ensure all measurement equipments to be used for inspection in valid

period of calibration.
Control and monitor schedule on site, for non-destructive test, radiography

and post weld heat treatment (if required) activities.
Support of HES Department to implement their program as during welding

process, non destructive test, radiography test, post weld heat treatment,
especially to handle and storage of radio active material.
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Verification of inspection result, documented of test result and reported to

the company.

Perform the inspection meeting with sub subcontractor and / or company if

any problems were found during previous inspection activities.
Inform to the company, Inspection schedule that should be attend by

company (witness point).
SUBCONTRACTOR will prepare welding procedure specification for welder

qualification and should be approved by migas.
5.3.2.6.2.
Control of Non Conformity Report
Non-conformity is damage, shortage of material, poor quality of material or deviation of

work that not conform to specification, drawing as project contract specification. Control
activities of non-conformity should refer this description.
Non-conformity report
If Inspector or supervisor found non-conformance item, the construction
process should be stopped and should prepare non-conformity report and (if
required) attached picture and reported.
Non-conformity will be controlled with list of non-conformity.
Corrective Action Plan
Based on this non-conformity report, subcontractor will propose corrective
action to the company with two categories,
Use-as-Is
Non-conformity of material or construction process permitted to continue

during deviation in line with the specification.
Repair / rework
Repair / rework was caused by design mistake, non-conformity

design with project specification.
Repair / rework should be done if there are difference with

relevant specification.
Repair / rework was need , for pressure vessel that have been
tested on shop.
Subcontractor will propose corrective action to get company
approval.
Design change request

If during construction process found the items cannot be done, or will obstruct
to another facilities, so the construction process will deviate from approval
drawing, the subcontractor will propose the design change to get company
approval.
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5.3.2.7.
5.4.
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Inspection Report
The subcontractor will use inspection / test form as applied procedure during inspection
activities at shop and site project
Financial Management Plan
5.4.1.
Introduction
The aim of emphasize of the Roll and Financial Management plan is to formulate and
recommend steps to be taken by the Project Manager related to the Integrated Tank Repair
Project, particularly to the preparation of planning, implementation and control. The formulation
of financial management plan could be described as follow.
G OAL
5.4.2.
Scheme of Roll and Financial Management
Successful of Project Execution
FINANCIAL VISION
To Support Project Execution
FINANCIAL MISSION
To Provide Working Capital / Financing
For Project Execution
FIGURE SCHEME OF
ROLL AND FINANCIAL
MANAGEMENT
S T R AT E G Y
Professionalisme of
Man Power
Efficiently
Organization
Increase of Service
Competences &
Integrity
Structure and System

Procedure
(Simplification)
Keep on Target / Goal

Keep on Volume
Keep on Schedule
FINANCIAL FUNCTION
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5.4.3.
Financial Function
FINANCIAL FUNCTION
SINKIND FUND
FUND ALLOCATION
PERFORMANCE MANAGEMENT
TOTAL PROJECT PLANNING
COST CONTROL
PERFORMANCE MANAGEMENT
SYSTEM AND PROCEDURE
Cash Receiving
Cash Disbursement
Material Receiving
SYSTEM ARRANGEMENT PLAN
Sub Contractor Receiving
Investment Receiving
IMPLEMENTATION
BUDGET
Import Price Calculation
Shipment
Maintenance
Material Usage
Overhead Application
Finish Good
PROJECT MASTER BUDGET
Delivery of Good / Project
Progress Delivery Invoicing
Credit Note
Intern Progress
Closing Order
Overhead Cost Breakdown
PROJECT OPERATIONAL BUDGET
Project Site Cost Breakdown
BASED ON SECTION BUDGET
of Adjustment
Pekerjaan Pabrikasi & Ereksi Struktur Baja BeltMemo
Conveyor
649 BC03 / Correction
IMPLEMENTATION
REALIZATION
Q: Master Design
Detail Design
Shop Drawing
C: Matl Cost
Labour Cost
FOH Cost
Progress, Etc
D: (Delivery)
Progress of
Good Delivery
PROJECT CASH FLOW
RISKS
CONTROL
Comply
with Spec
of Quality
Comply
with
Project
Budget
Comply
with
Project
Schedule
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ADJUSTMENT/REPLANNING
OF BUDGET TO MEET THE
QCD TARGET
NO
CONTROL
/ RESULT
QCD =
PLAN
YES
QCD =
PLANNING
5.5.
Risk Management Plan
5.5.1.
Introduction
The successful of project implementation is depend in to how to manage the risk's during project
execution, so this risks project Management plan is to provide a management to take any
necessary action based on some factors such as:
5.5.2.
Unit price factor
Work volume ( BQ ) factor
Work Schedule factor
Exchange rate factor
Damage factor
Scheme of Project Risk Management

See description figure in the attachment
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Surveying Plan

5.6.1.
Introduction
Surveying plan is all activity that will be done at site before design engineering works is started.
The activity in order to get all data that will be used engineering calculation, transportation
planning, choice of type equipment and others civil works planning.
5.6.2.
Access Route for Installation

All access route for workers and equipment shall be checked and provide new if necessary.
Transportation by big and long car to bring all heavy equipment to site shall be checked the
availability space to take around.
5.7.
Management Plan
5.7.1.
Engineering Organization
Engineering Manager shall manage all engineering activities within this project
and responsible to Project Manager.
Discipline Engineer
Engineer shall do the design each discipline under the coordination of Lead Discipline
Engineer.
Field Engineer
Field Engineer shall support construction activities, accommodate all modification done on
site and implemented those modifications to marked drawings will informed to Discipline
Engineer through Engineering Manager.
Draftsman
Draftsman shall make the drawing and coordinated by Discipline Engineer.
5.7.2.
Engineering Communication
This section is implemented for communication among engineering sub-sections. All formal
correspondence with company and other will be by Project Manager transmittal letter.
Engineering Manager will conduct daily meeting to solve problem among sub-sections moreover
in interfacing problem. In case of small problem, Engineers may precede a coordination meeting
among and copy carbon shall be forward to engineering manager.
5.7.3.
Document Control
Administration
Document Control officer also shall act as the central point of engineering document as
well as documents generated from internal subcontractor or transmitted by Company.
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The activities include receiving, application of file number, distributing, expediting and
releasing all engineering documents to assure that the document will receiving by
related section in same version.
Documents Receipt
Documents may be received from outside sources such as Company and NA or others.
Document Identification
All engineering mail, including e-mail, telecopy, telegrams and package shall be
identified.
The Document Control shall process the original copy of each incoming document, other than
documents submitted in multiple copies (proposal, instruction manual, etc.) and the
transmittal letter or form for documents submitted in multiple copies.
Identifying shall include stamping document with the engineering routing stamp, dating the
receipt, marking the appropriate file number and indicating action and information parties in
the space provide on the routing stamp, and making required copies for action and
information parties. All documents should use numbering system as per attachment
Engineering Management Review

Document Control shall forward the action copy of documents to the Engineering
Manager who will review the document package. He will pay particular attention that the
proper file numbers are assigned and distribution to the related party.
The complete document package shall be returned to the Engineering Planning &
Control for re-routing and filling of the original documents, also distributing if necessary.
Document Traffic
The copy of documents transmitted to the responsible action party shall be marked with
the word ACTION and route directly to the action party.
The responsible engineer is responsible to review the document and provide the action
as required. The responsible engineer could get additional information from other Lead
engineer under coordination of the engineering manager.
Engineering Reference Documents

Documents having only temporary information or which are used for reference purpose
in general will not be filed in the engineering file.
Outgoing Documents
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Document Control shall record and forward documents include verification of file
numbers, preparation of documents for mailing, completion of Engineering internal

distribution and distribution of copies to the engineering file.

Manuscripts and Preliminary Drafts
Manuscripts and preliminary draft of specifications, reports and other such documents
will not normally be maintained in the project files.
5.8.
Procurement Management Plan
5.8.1.
Introduction
In order to achieve the aim of project, the procurement section shall be divided into four
sub sections as on organization chart.
5.8.2.
Job Description
The aim of this written job description is to clarify all jobs and duties to avoid confusion and
overlap among procurement section.
Procurement Manager
Procurement Manager has responsible for the procurement of all material,

equipment, electrical and instrumentation as required.
Procurement Manager shall manage all procurement activities and responsible

for all material supplied has bought and ready for installation and construction.
Procurement Manager shall sign all correspondence of procurement activities.
Purchasing Officer
Material requisition for quotation to vendor for sourcing.
Evaluation, clarification and negotiation of quotation with vendor.
Issuing LOI or P/O and inform to QC and traffic for preparing.
Verification of vendor invoice.
Traffic & Expediting
Expediting of purchase requisition material or equipment.
Inventory of the delivery point.
Arranging of the transportation and material handling.
Issuing the packaging & transportation method.
Reporting of expediting report.
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Monitoring of arrival material or equipment.
Issuing transportation schedule and volume.
Issuing cargo insurance.
Logistic Management Plan
5.9.1.
Job Description
Logistic Manager has responsible for inventory control of material, tools, consumable, and
equipment start from receiving materials etc, up to storage at warehouse.
Warehousing of the material etc, could be indoor / outdoor.
5.9.2.
Inventory Control
Inventory control is arrangement of method material, tools, consumable and equipment in
storage to support site activities I e :
Arrangement of arrival / shipment material schedule according to

Master Schedule including preparation of the storage plan.
Preparing progress control of receiving material etc according to

procurement schedule.
Arrangement material, tools and consumables storage system

both indoor and outdoor warehouse.
Classification of special material etc to be storage at special rack /

box.
Controlling the quantities of materials / consumables as the

necessity to be report weekly
5.9.3.
To minimize waste of material
Warehouse
Indoor warehouse is storage place to protect of material, tools and consumables from weather to
prevent material from damage or corrosive.
All material, tools etc should be identified base on its type & size, prior stored on the racks or put
on the floor according to storage system at warehouse as below
Equipment for large size as panels, pumps, generator power, fittings etc should be stored on the
floor indoor and its gave distance from the floor around 15 cm.
Inflammable material as chemical liquid, painting, gas bottles should be stored at special place.
5.9.4.
Outdoor Warehouse
Outdoor warehouse is open storage place which will use for storing large size of raw material as
pipe, fittings, material profile, cable etc.
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Placement of raw material in outdoor warehouse to be prevent contact with ground and its gave
distance around 20 cm from the ground.
5.10.
Labor Recruitment & Labor Relation Plan
5.10.1. Hiring and Releasing Policies

Hiring Policies / a need of contract labor at project will be based on:
Requirement of manpower for specific project especially workers.
The skill or unskilled labor available at near project area.
The contract system will be written in the KKWT form according to the Depnaker
regulation.
Releasing Policies
Labor contract duration is depending upon project time schedule and releasing of contract
employment shall follow applicable Depnaker regulations.
Time of contract employment may be terminated by any in-disciplines which counted at

least three (3) times of written warning.
5.10.2. Discipline and Disciplinary Policies

Discipline is a part of project successful, therefore, in order to keep it Subcontractor have to
conduct the following but not limited to :
The discipline regulation (PHDK) shall be socialized by the subcontractor to all

employee
All employee have to fill the absence time card when get in or out of the
office/project area.
Records time of work
Using ID Card
Using Uniform
5.10.3. Disciplinary Action Policies
Any indiscipline will be punished verbally, give notification up to termination of

contract for easy or heavy indiscipline action and un-honorable of labor relationship
breaking if needed.
For example abuse prevention programs where Subcontractor recognizes that

alcohol and drugs are a potential safety hazard within the workplace and as such it is
forbidden for any person to possess, or be under the influence of alcohol or non
prescribed drugs, at anytime or anywhere on the worksite. If in-disciplinary of this policy is
happen, it will be punished based on the grade as follows.
Discipline punishment is divided depending on grade and kind, its characteristic,

heavy or easy indiscipline action and the reaction caused it, i.e.
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5.10.4. Based on the grade of discipline punishment, such as :

Easy discipline punishment
Oral warning
Exactly warning
Statement of unsatisfied in writing
Exactly discipline punishment
Postponement of the progressing grade
Less fee
Heavy discipline punishment
Un-honorable of labor termination
5.10.5. Remuneration Policy

The subcontractor will pay a considering, such this criteria:
Subcontractor main employee
Every month salary including detasering subsidy.
Two (2) weeks payment of meal for 3 times a day.
Accommodation
Subcontractor remote contract employee
Salary will be paid every two ( 2 ) weeks
Accommodation
Local contract employee
Salary will be paid every two ( 2 ) weeks
5.10.6. Contract employment consideration
Professional employee which oriented on capability or skill in certain work is arranged in

suitable condition.
Salary system will be based on applicable UMR (Upah Minimum Regional)
A contract salary will be arranged monthly basis as stated in the agreement.
5.10.7. Severance Pay Policy

Severance Pay Policy will be based on the result of work or depending on subcontractor
standard and applicable government regulation.
5.10.8. Plan to Hire Local Labor

Taking into account availability of local labor the plan of recruitment will be limited to as follow :
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Drivers
Security guards
Fitters as far as available
Secretary as far as available
Fitters as far as available
Office Boys
Helpers
Maids
Etc as far as available.
Numbers of the local labors will be decided based on subcontractor requirement.
5.11.
Health, Environmental and Safety Management Plan

This HES Management Plan provides for employees and subcontractors with the basic
safety operating guidelines and rules to be used in their daily activities. The primary
objective is to document the common safety and occupational health guidelines and
rules that form the foundation of all Subcontractor activities, in compliance with the
requirements of government and Company regulations.
The purpose of this HES Management Plan covers all safety requirements, identify the steps to be
taken by Subcontractor so as to safeguard health and welfare of all Subcontractor employees and
achieve the standards required under the Company safety procedures.
5.12.
Security Plan
5.12.1. Task of Securities

1.
Security system is planning for all installation area and material including report and
taking over system.
2.
Making guard, especially at Break time or Night
3.
Investigation if any accident
4.
Coordination with other team
5.
Reporting to HES Manager
5.12.2. Facility
1.
Handy Talky
2.
Fire Extinguisher
3.
Fire Protection & Breathing Apparatus
4.
Pick Up Mobile
5.
Etc
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5.12.3. Location
PT. TUBAN STEEL WORK 1.
Office
2.
Project Area
3.
Etc
5.12.4. Job Description
5.13.
1.
Guard
2.
Patrol
3.
Inspection
4.
Investigation
5.
Warning
6.
Report
Mobilization of Equipment and Manpower

Please see the attachment Mobilization of Equipment Schedule and Mobilization of Manpower
Schedule.
5.14.
Construction Management Plan
5.14.1. Introduction
This section describes the management and coordination of the construction work for successful
performance. In accordance with the site condition and to achieve goal of the project, the activity
of construction work shall be performed as parallel job depending on the work area. The Time
Schedule for construction work will follow as per confirmed schedule.
5.14.2. Job Description

Site Manager
Site Manager has responsible for coordination site construction of the product including site
quality system to be applied, also shall responsible for construction aspects including but not
limited to construction progress, additional works. Site Manager is site representative who will act
in full authority in charge of fieldwork and maintain field liaison.
Negotiate and getting approval from Company authorized field changes. Represent Consortium
in matter pertaining to construction performance and quality, scheduling and job controls.
Represent during all request test and inspection at site.
Superintendent
Superintendent has responsibility to manage the teams (supervisor, fitter and helper) to execute
construction activities according his/her discipline, also shall provide construction drawing, detail
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schedule and other relating data. Construction Engineer shall monitor construction activities and
issue the progress of activities to Site Manager. Before commencement of the erection work
some checks list must be conducted at least for the following:
Availability of construction drawings
Availability of SH & E documents
Provide all material to be installed.
Provide all consumable as required.
All construction equipment shall be checked according to the safety regulation.
Provide the labors, supervisors and engineers who will be in-charge for
construction.
Provide all safety equipment.
Provide working permit for the subject location or working area.
Provide other documents related to erection work for example: Erection Procedure,
Lifting Procedure, Test Procedure, etc.
All the above documents or activity shall be reviewed and checked by each Supervisor, Safety
Officer and Superintendent.
5.14.3. Project construction schedule

The project construction schedule serves as an effective construction planning and
control tool which integrate the project construction scope, applicable practices and
procedures, labor and equipment resources into single plan.
5.14.4. Construction Control Schedule

The construction control schedule to be prepared in detailed, critical path method network
schedule, prepared in precedence method format, which incorporates in detail all material
deliveries, and construction.
5.14.5. Construction Coordination

To achieve the project schedule, HES/Permitting officer shall be responsible to get working
permit according to the requirements under coordination Superintendent and HES Supervisor.
Subcontractor will do the construction activities after get acceptance of working permit from
company. The construction activities will be done by each supervisor under coordination of Site
manager based on three weeks schedules. The superintendent shall be responsible for the
quality of construction and relevant test will be performed in strict accordance Quality
Assurance/Quality Control and witnessed by Company as per the Quality Plan.
5.15.
Demobilization of Equipment and Manpower

Please see the attachment Demobilization of Equipment Schedule and Demobilization of Manpower
Schedule.
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Front End Schedule
PT. TUBAN STEEL The

WORK
purpose of this schedule is to describe the detail plan for the first three months of the project
(detail 90 days window), before the overall detail plan has been completed, especially for the multi
year project. It lists all major activities that must be started and or completed within the three month
time period. For the short period project, PM has authority to determine the necessity of front end
schedule, unless Client request to do so.
PM and Project Team Member collect all related information such as:
Contract Document
Project Goal and Objective
Scope of Services
Work Breakdown Structure
Risk assessment
Limitation and information from each discipline
Subcontractor / vendor schedule
Man-hour estimate from each discipline
Manpower information
Fabrication/installation method
Equipment availability
etc
Each project discipline will breakdown the activities in Mater Schedule by top-down approach into a
detail activities , determine dependencies and estimate the duration for each activities (see Work
Breakdown Structure describing the detail activity for , up to level 3 (sub-system)). Project Control
assisted by each project discipline will summarize the detailed activities and check the front end
schedule then compare the summarized duration with the total duration of a given activities in the
master schedule. Project Manager will review the front end schedule and finalize it for approval , see
attachment.
5.17.
Project Schedule
The purpose of this schedule is to describe the overall project detail plan (schedule level 2), ensuring
the work will be carried out according to the allocated project timeframe. The process to prepare the
project schedule is the same as the preparation of front end schedule. Once the Project Manager
approves the project schedule, it defines as a baseline time used for controlling the project see
attachment.
5.18.
Resources Plan
Project Manager and Project Team Member collect the information as follows:
Project Schedule
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Resources Breakdown Structure (see attachment)

PT. TUBAN STEEL
WORK
Manpower : Estimate man-hour needed for each activities to include rates
Material : Quantity needed for each required activities
Construction Equipment : Amount and duration needed for each construction activities (see
attachment )
Definite factors such as resources availability, physical constraint or logistic due to project location,
manpower density, productivity, etc.
Resources Plan Form (see attachment )
Base on the above information, each project discipline shall update manpower, material and
equipment plan for each activities in project schedule.
Project Control assisted by each project discipline will summarize the manpower, material and
equipment into Resources Plan Form. Project Manager will review the Resources Plan Form, and
approve.
5.19.
Project Budget
The project budget which has already been defined by management is now used for internal
purposes. PM should detail the project budget according to the following steps.
Project Manager and Project Team Member collect information such as:
project schedule
CPM budgeting structure
breakdown of contract price
calculation of cost estimate for each activities during bid preparation:
Project Management which consist of Project Supervision, Procurement Services, Accounting

Services, Bid Cost and Running Cost
Engineering
Supplies, usually known as material
Transport, usually known as material handling and equipment
subcontractor
Direct Manpower
Site Expenses consist of Administration & Supervision Expenses, Internal/External Equipment

Rental & Spare Parts, Small Tools, Consumables, Site Facilities, Site Transportation & Spare
Parts, Local Branch Cost
Commissioning & Start Up
Other Charges
Estimate Summary Form which is the total calculation of all cost estimate for each activities
Based on the above information, Project Control assisted by each discipline will detail the project
budget for each activities and prepare the Project Execution Budget Summary Form. The cost code is
always prefixed with the project number followed by project cost account number.
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Project Manager shall review the Project Execution Budget and finalize for approval.
Service Cash Flow
5.20. Projected
The projected cash flow is used for internal purpose in giving the overall figure of the comparison
between account receivable (payment from Client) and account payable (project costs including
payment to vendor) on a monthly basis. PM should prepare the projected cash flow according to the
following steps.
Project Control collect the information as follows:
Project Schedule
Project Budget
Resources Plan
Contract Term of Payment with Client
Contract Term of Payment with subcontractor
Vendor Quotation or CPM Purchase Order
Contract or Proposal from subcontractor
Contract price with Client
Base on the above information, Project Control shall prepare Projected Cash In Flow with the
following step:
In the absence of a cut off date specified in contract document, Project Control shall
determine the Cut off Date for Monthly Report along the project period and propose to the
Client.
Check the contract document regarding the statement of period time between the issuance
of invoice up to the payment from Client, for example, the payment is at least one month
after the received invoice.
Estimate the overall plan progress in every cut off date base on the schedule and budget.
Estimate the total amount of the invoice in every cut off date and when it will be
paid/transferred by the Client.
Check if there is a reduction cost upon the progress claim.
Estimate the total cash in flow in every month for every project cost account
Project Control shall also prepare Projected Cash Out Flow with the following steps:
Based on the breakdown of project budget, Project Control shall estimate the cost out for
every item of cost account .
For project management, the value of manpower is to multiply the total man-hour/manmonth by weight rate from those manpower, and the value of expenses is base on project
budget that is distributed each monthly accordance to the schedule.
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For engineering, the value of manpower is same as manpower of project management and
PT. TUBAN STEEL WORK the value of expense is same as expenses of project management.
For supplies/material, the value is the percentage of payment (term of payment) by budget
for every material. Check also when it will be paid/transferred by the Client.
For transport, the value is based on project budget that is distributed into each month in
accordance with the schedule of material and equipment.
For subcontract, this is the same as material notice the percentage of payment is depend
on the subcontracts progress in each month.
For site expenses, the value of construction equipment is same as subcontractor, the value
of small tools/consumable is same as supplies and the value of expenses is same as
expenses of project management
For commissioning & start up, the value of personnel is same as manpower, the value of
tools/consumables is same as supplies and the value of expenses is same as expenses of
project management.
For other charges, the value is same expenses of project management.
Estimate the total cash out flow in every month for every project cost account
Project Control shall summarize the total cash in flow and cash out flow into Projected Cash Flow
Form. Project Manager shall review the Projected Cash Flow and finalize for approval.
5.21.
Project Procedures
Upon completion of Internal Project Kick off meeting, the Project Manager assisted by Project Team
Members will prepare project procedures for internal and Client purpose.
5.21.1. Prepare Project Execution Procedure Check List

Based on the project requirement, Project Manager shall complete the Project Execution
Procedures Check List, by determining and filling in the column as required (yes or no), the
column of purpose (internal or client) and the column of responsibilities. Project Administration
Officer or someone assigned will assist Project Manager to get the Company and Project
Procedures from Quality Manager. The check list will then be distributed to the Project Team
Member to be reviewed, attached by the related Company/ Project Procedures. The purpose of
the review is to ensure which procedure is applicable to any development required or, which
ones need further development as project requirement arises and which are not on the list. The
result of the review will be filled into the column of remark. In case the related person not
available or even not capable to do so, it could also be filled into the remarks column. If not on
the list, Project Team Member shall add the procedure title and the other column. PM will then
finally review the check list for approval and determine the target date for each procedure.
Project Administration Officer will assign a number to all procedures stated in Project Execution
Procedure Check List. Every Project Procedure for client purpose has to meet with client
document approval process this will be determined by them. The procedure for internal purpose
will be emphasized for internal coordination and communication.
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5.21.2. Prepare Project Procedures

Each Project Team Member shall prepare the project procedures according to Project Execution
Procedure Check List and to meet the document approval process.

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