An approach to using Total Life Cycle Cost and Total Quality Management in project management in the Indonesian Navy

Abstract

Project management is very important to many industrial and governmental organizations. For governmental organizations, projects are vehicles for growth and improvement. In the Indonesian Navy for example, project management is needed to develop new warships, such as destroyers or submarines. The goal of project management is to ensure a high quality result. Generally speaking, quality is defined as adherence to specifications and high quality is defined as exceeding those specifications. Not meeting the specifications is unacceptable quality. For a project like building a warship, the Total Life Cycle Cost can be considered primarily as a function of four things: design, construction, operation and maintenance. The selection of the design and the contractor are one time decisions and cannot be changed over the life of the ship. In contrast, operation and maintenance are on-going management decisions, yet they are largely determined by the design selected and the quality of the contractor's work. To have the lowest Total Life Cycle Cost, the right design and the right contractor must be selected. This thesis develops a Design Review Checklist and a Contractor Review Checklist that can be used in reviewing the contractor's design and the contractor's quality management capabilities.