i IMPROVEMENT OF PROJECT MANAGEMENT SYSTEM IN CONSTRUCTION DEVELOPMENT: A CASE STUDY OF THE UPPER CISOKAN HYDRO ELECTRIC POWER PLANT FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By: Chandra Harianto Sinaga Student ID: 29122388 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG August 2024 ii ABSTRACT IMPROVEMENT OF PROJECT MANAGEMENT SYSTEM IN CONSTRUCTION DEVELOPMENT: A CASE STUDY OF THE UPPER CISOKAN HYDRO ELECTRIC POWER PLANT By: Chandra Harianto Sinaga Student ID: 29122388 (Master of Business Administration Program) This study focuses on optimizing project management systems in construction development, specifically in the case of the Upper Cisokan Hydro Electric Power Plant (UCPS HEPP). The project, with a 4x260 MW capacity, is critical for Indonesia's energy mix and environmental goals. However, significant delays and inefficiencies have plagued its progress, primarily due to challenges in planning, scheduling, and controlling processes. The study highlights that delays in completing the Contractor’s Environmental and Social Management Plan (C- ESMP), late preparation of detailed programs, and poor field coordination were major factors contributing to the project's setbacks. Guided by the Project Management Body of Knowledge (PMBOK) , the research proposes a comprehensive project management system that identifies scheduling, human resource management, communication, quality management, and stakeholder management to mitigate these issues. Through Analytical Hierarchy Process (AHP) the research identifies that the "Develop & Control Schedule" process is the most critical project management activity to prioritize. By prioritizing the "Develop & Control Schedule," the employer can address these challenges more effectively, ensuring that resources are optimally allocated, and progress is closely monitored. The findings underscore the importance of integrating advanced project management tools and techniques, such as the Analytical Hierarchy Process (AHP) and Primavera P6, to enhance project execution and align with stakeholder expectations. This study provides actionable recommendations for improving project management practices in large-scale infrastructure projects, contributing to timely and cost-effective project delivery. Keywords: Project Management, UCPS HEPP, PMBOK Guide, Infrastructure Projects, AHP iii ABSTRAK PERBAIKAN SISTEM MANAJEMEN PROYEK DALAM PEMBANGUNAN KONSTRUKSI: STUDI KASUS PEMBANGKIT LISTRIK TENAGA AIR UPPER CISOKAN Oleh: Chandra Harianto Sinaga Student ID: 29122388 (Program Studi Magister Administrasi Bisnis) Studi ini berfokus pada optimalisasi sistem manajemen proyek dalam pengembangan konstruksi, khususnya pada kasus Pembangkit Listrik Tenaga Air Upper Cisokan (UCPS HEPP). Proyek dengan kapasitas 4x260 MW ini sangat penting bagi bauran energi dan tujuan lingkungan Indonesia. Namun, penundaan dan inefisiensi yang signifikan telah mengganggu kemajuan pekerjaannya, terutama karena tantangan dalam proses perencanaan, penjadwalan, dan pengendalian. Studi ini menyoroti bahwa keterlambatan dalam menyelesaikan Rencana Pengelolaan Lingkungan dan Sosial Kontraktor (C-ESMP), keterlambatan persiapan program terperinci, dan koordinasi lapangan yang buruk merupakan faktor utama yang berkontribusi terhadap kemunduran proyek. Dengan panduan teori Project Management Body of Knowledge (PMBOK), penelitian ini mengusulkan sistem manajemen proyek yang komprehensif yang mengidentifikasi penjadwalan, manajemen sumber daya manusia, komunikasi, manajemen kualitas, dan manajemen pemangku kepentingan untuk memitigasi isu-isu tersebut. Melalui Analytical Hierarchy Process (AHP), penelitian ini mengidentifikasi bahwa proses “Develop & Control Schedule” merupakan aktivitas manajemen proyek yang paling penting untuk diprioritaskan. Dengan memprioritaskan “Develop & Control Schedule”, perusahaan dapat mengatasi tantangan-tantangan ini dengan lebih efektif, memastikan bahwa sumber daya dialokasikan secara optimal, dan kemajuannya dipantau secara ketat. Temuan ini menggarisbawahi pentingnya mengintegrasikan alat dan teknik manajemen proyek yang terdepan, seperti Analytical Hierarchy Process (AHP) dan Primavera P6, untuk meningkatkan pelaksanaan proyek dan menyelaraskannya dengan ekspektasi para pemangku kepentingan. Studi ini memberikan rekomendasi yang dapat ditindaklanjuti untuk meningkatkan praktik manajemen proyek dalam proyek-proyek infrastruktur berskala besar, yang berkontribusi pada pelaksanaan proyek yang tepat waktu dan hemat biaya. Kata kunci: Managemen Proyek, UCPS HEPP, PMBOK Guide, Proyek-proyek infrastructure, AHP iv IMPROVEMENT OF PROJECT MANAGEMENT SYSTEM IN CONSTRUCTION DEVELOPMENT: A CASE STUDY OF THE UPPER CISOKAN HYDRO ELECTRIC POWER PLANT By Chandra Harianto Sinaga 29122388 Master of Business Administration Program Institut Teknologi Bandung Approved Date09/09/2024 Supervisor: Yuliani Dwi Lestari, Ph.D v DECLARATION OF NON -PLAGIARISM Plagiarism is: Taking, using, and submitting a work of another, including an idea, writing, or invention, as if it was her or his own Plagiarism includes (but not limited to): 1. Quoting verbatim the work of another without acknowledgement of the source; 2. Paraphrasing the work of another without acknowledgement of the source; 3. Using the idea of another without acknowledgement of the source; 4. Submitting the work of another without identifying clearly who did the work; 5. Colluding by submitting the work of another as her or his own with consent from the other; I understand that Plagiarism is wrong, a breach of academic integrity, and against Program, School, and University’s Policy and Regulation. I declare that all material in this Final Project is original, my own work, and does not involve plagiarism. I have not allowed, and will not allow, another to copy my work with the intention of submitting it as her or his own work. Name Chandra Harianto Sinaga Student ID Signed Date vi FINAL PROJECT GUIDANCE Unpublished masters’ final project is registered and available in the Library of Bandung Institute of Technology, and is open for public, provide that the author owns the copyright in accordance with the intellectual property rights that are applicable in the Library of Institut Teknologi Bandung. Bibliographical references are allowed to be use in a limited manner, however the citation and summarization can only be proceeded upon the author’s permission and must include the scientific norm of stating this final project as the source. This final project has to be cited as: Sinaga, Chandra Harianto. (2024): Improvement of Project Management System in Construction Development: A Case Study of The Upper Cisokan Hydro Electric Power Plant, Master’s Final Project, Institut Teknologi Bandung. Reproduction or publication of parts or whole of the final project must be under the consent of the Head of Graduate School, Bandung Institute of Technology. vii I dedicate this thesis to my parents who always pray for me with their endless love; to my beloved wife and children who unconditionally always love me and pray for me, understand me with patience, and become my source of strength and motivation; and to my siblings and in-laws who always support me viii ACKNOWLEDGEMENT I would like to extend my sincere gratitude to my parents for their unwavering support and encouragement. To my wife and children, I am deeply thankful for your and boundless love, patience and understanding throughout this demanding process which has been vital in pursuing my academic goals I am especially grateful to my lecturer, Ibu Yuliani Dwi Lestari, for your invaluable guidance, expertise, and constructive feedback, which have significantly contributed to the completion of this thesis. I also wish to acknowledge my supervisors at office, coworkers, for their significant contribution as respondents in the interviews and focus group discussions. Your insights and participation have greatly enriched the quality of this research Finally, I wish to thank my college colleagues for their collaboration and insightful discussions, which have enriched this research. Thank you all for your contributions to this work. Bandung, August 2024 Chandra Harianto Sinaga ix TABLE OF CONTENT ABSTRACT ............................................................................................................ ii ABSTRAK ............................................................................................................. iii TABLE OF CONTENT ......................................................................................... ix LIST OF APPENDICES ......................................................................................... x LIST OF FIGURES ................................................................................................ xi LIST OF TABLES................................................................................................. xii Chapter I Introduction ............................................................................................. 1 I.1 Background .............................................................................................. 1 I.2 Company Profile ....................................................................................... 3 I.3 Business Issue ........................................................................................... 4 I.4 Research Questions & Objectives ............................................................ 8 I.5 Research Scope and Limitation ................................................................ 9 Chapter II Literature Review ................................................................................ 10 II.1 Theoretical Foundation ...........................................................................