Initiation of capital projects in industries having an operational focus: an Australian stevedoring case example

Abstract

PurposeThe initiation phase of capital projects is critical as this is where the highest number of options exist for modifying the project with minimal expenditure. Government and large organisations frequently involved in major capital projects have extensive procedures for this phase, yet organisations having an operational focus (like major container terminal stevedores), that only occasionally undertake capital projects face the dilemma of the trade-off between project planning and the management of operations. This research reported in this paper investigated the impact of industry operational considerations on the initiation of capital projects.Design/methodology/approachIn addition to an extensive literature review, a living research investigation of real projects initiated by a stevedoring company operating in Australia has been observed; the primary author of this paper spent six months as a participant/observer and witnessed the initiation of 12 capital projects. The collected data was qualitatively analysed using a four-step coding method.FindingsThe findings confirm that project initiation is a challenge for organisations who only spasmodically undertake capital projects and available project management frameworks do not necessarily consider the impact of such an organisation's culture. Issues identified that may have a negative impact on the initiation phase include lack of workplace trust, high individualism, ineffective interdepartmental communication, lack of resources and engineering and safety complexity.Originality/valueThe study investigated an underexplored industry within the context of project initiation, using the Australian stevedoring as a case study. This initial investigation suggests that a tailored project management framework is needed for the initiation phase of projects to reflect the unique nature of the stevedoring industry and by inference other industries that have a strong operational focus.

Proposed Project Selection & Prioritization Framework during Front-End Planning (FEP) for Revitalization Project Portfolio at Indonesian Oil Refinery Plant

“…and identify risks and uncertainties. The initiation phase is the best time to pour added value into planning [29] because the possibilities are wide open for all alternative ideas without much outlay [30]. An important key at this stage is that companies need to develop many ideas [18] that are suitable for solving problems [10].…”