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www.utm.my innova-ve ● entrepreneurial ● global 1

By

Ir. Dr. Syuhaida Ismail razakschool.utm.my/syuhaida

0126469235 [email protected]

MDE 2583 -‐ PROJECT MANAGEMENT


ICE-‐BREAKING


● Cer-fied PMP? ● Experience in PM? ● ANended any PM courses/training? ● Skill in using PM tools?

ICE-‐BREAKING


ASSESSMENT

1 Quiz 1 x 10% 10% 2 Individual Assignment 1 x 20% 20 % 3 Case Study Group

Assignment 1 x 20% 20 %

4 Post Module Assignment 1 x 50% 50 %

Total 100 %


References/Bibliography

●  PMBOK (2013) ●  MS Project 2013 ●  Kerzner, R. (2013). Project Management:

Systems Approach to Planning, Scheduling and Controlling. John Wiley & Sons Inc.

●  Gray, C.F. and Larson, E.W. (2006). Project Management: The Managerial Process. New York: McGraw-Hill International Edition.

●  Meredith, J.R. and Mantel, S.J. (2009). Project Management: A Managerial Approach. John Wiley & Sons Inc.

5


PMI and PMBOK

●  Project Management Ins-tute (PMI) –  World's leading not-‐for-‐profit professional membership

associa-on for project management profession –  Founded in 1969 –  Delivers value for > 2.9 million professionals worldwide –  Advances careers, improves organiza-onal success and further

matures the profession of project management –  Ac-vity: Recognize standards, cer-fica-ons, resources, tools,

academic research, publica-ons, professional development courses, and networking opportuni-es


PMI and PMBOK

● Project Management Book of Knowledge (PMBOK) – A book which presents a set of standard terminology and guidelines for project management. The Fibh Edi-on is the document resul-ng from work overseen by PMI

– 47 processes + 5 process groups + 10 knowledge areas


IMPORTANCE OF PROJECT MANAGEMENT


Project management is “the applicaEon of knowledge, skills, tools, and techniques to project ac-vi-es in order to meet or exceed stakeholder needs and expectaEons from a project” (PMI, Project Management Body of Knowledge (PMBOK Guide), 2013, p. 6)

•  Both a management science of science (technical skill, tool and technique) and art (sob skill and people) that follows systema-c and structured process

WHAT IS PROJECT MANAGEMENT?


Management is an act of gejng things done through and with others, with 2 basic concepts: •  Goals – set objec-ves, do the right things

(effec-ve) •  Ac-ons – establish right process, do

things right (efficient)

WHAT IS MANAGEMENT?


OPERATION VS PROJECT

Opera-on – Exis-ng systems – Repe--ve work – Efficiency (do the right things) and effec-veness (do the things right)

– Reliance on standard procedures

– Line management – Focus on “maintaining”

Project – One-‐-me resource configura-on

– Unique and separate work

–  Cohesion and direc-on –  End-‐product driven –  Stakeholder driven –  Project orienta-on –  Focus on “change”


DEFINITION OF A “PROJECT”

● Must make a distinction between terms: –  Program - an exceptionally large, long-range

objective that is broken down into a set of projects –  Task - set of activities comprising a project –  Work Packages - division of tasks –  Work Units - division of work packages

●  In the broadest sense, a project is a specific,

finite task to be accomplished

Chapter 1-8


Program

Project A

Task A1

Work Package A1a

Work Package A1b

Work Unit

Task A2

Project B

Task B1

DEFINITION OF A “PROJECT”


CHARACTERISTICS OF A PROJECT

●  Specific objec-ves-‐ Time (4 years), Cost (USD 12 B) & Performance – Life-‐cycle of building, M&E, road, O&G, steel structure

●  Mul--‐Disciplinary – different disciplines, companies and countries (Belgian and Dutch dredger)

●  Temporary undertakings-‐ definite start and end date (2000-‐2004); therefore of finite dura-on

●  Consume and compete for scarce resources (40000 workers, 2 shibs, 12 hours/shib

●  Produce unique and one-‐off outcomes – 2 palm island, 100 luxury hotels, theme parks, monorail etc

●  Phases -‐ Project has a number of phases/schedule ●  Usually have own budgets ●  One leader assigned overall responsibility ●  Projects are subject to a lot of changes – less tourist due to 9/11, rising

seawater hence unsound soil, 6-‐7 Richter scale earthquake, storm, 2m high waves

●  Subject to conflicts – monorail, damage marine habitat, coastal erosion, wave paNern, silty water, changes on coastal shape


PROJECT STAKEHOLDERS

●  Stakeholders are the people involved in or affected by project ac-vi-es

●  Stakeholders include –  the project sponsor and project team (unethical project team in 15%

cost plus contract) –  support staff –  customers (1990s automo-ve sales strategy vs 2010s) –  users (Proton Saga wind-‐down auto window using rubber losing

torque due to sun) –  suppliers –  opponents to the project (e.g. Lynas, Bakun dam, Langat 2)


WHEN IS A PROJECT A PROJECT? (PETRONAS TWIN TOWER)

Stewart (1965) uses four criteria ●  Scope-‐ definable in terms of a single, specified end result

(From 5 SEA countries, Malaysia is the least known) ●  Unfamiliarity-‐unique, infrequent, more uncertainty

(uniquely Malaysia, pinnacles, the tallest) ●  Complexity-‐ greater degree on interdependency amongst

tasks (2 contractors, site sat on cliff edge, decayed limestone and sob rocks)

●  Stake (risk)-‐ Outcome affects company’s stake (bad concrete batch, heavy rain, Tower 1 leaning 25 mm off from ver-cal)


TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT

Solutions must not exceed boundaries


PROJECT MANAGEMENT FRAMEWORK

Project Integration Management

Project Success

Scope Mgt.

Time Mgt.

Cost Mgt.

Quality Mgt.

HR Mgt.

Comm. Mgt.

Risk Mgt.

Procure. Mgt.

10 Knowledge Areas Core Functions

Facilitating Functions

Stakeholder needs and

expectations

Tools and techniques


Knowledge

Areas

Project Management Process Groups

Ini$a$ng Process Group

Planning Process Group Execu$ng Process Group

Monitoring & Controlling Process

Group

Closing Process Group

Project Integra$on Management

Develop Project Charter

Develop Project Management Plan

Direct and Manage Project Execu-on

• Monitor & Control Project work •  Perform Integrated Change Control

Close Project or Phase

Project Scope Management

• Collect requirements • Define Scope • Create WBS

• Verify scope • Control scope

Project Time Management

• Define ac-vi-es • Sequence Ac-vi-es • Es-mate Ac-vity resources • Es-mate Ac-vity dura-ons • Develop schedule

Control Schedule

Project Cost Management

• Es-mate cost • Determine budget

Control Cost

Project Quality Management

Plan Quality Perform Quality Assurance

Perform Quality Control

Project Human Resource Management

Develop Human Resource Plan • Acquire project team • Develop project team • Manage Project team

Project Communica$on Management

Iden-fy Stakeholders

Plan Communica-ons •  Distribute Informa-on •  Manage Stakeholder Expecta-on

Report Performance

Project Risk Management

• Plan Risk Management • Iden-fy Risk • Perform Qualita-ve Risk Analysis • Perform Quan-ta-ve Risk Analysis • Plan Risk Response

Monitor & Control Risk

Project Procurement Management

Plan Procurements Conduct Procurements Administer Procurements Close Procurements


Knowledge Area 1: IntegraEon Management


PROJECT INTEGRATION MANAGEMENT

 Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle

 Many new project managers have trouble looking at the “big picture” and want to focus on too many details

  E.g. Sony and Siemen do it all while Apple Inc outsources to pass over costs to customer i.e. Corning gorilla glass manufactured in China by Taiwanese


PROJECT MANAGER VS PMO

Project Manager PMO Project focus Overall organisa-onal

focus: a) Suppor-ve PMO –

consulta-ve role b) Controlling PMO – require compliance to

governance c) Direc-ve PMO – directly manage

projects


KEY TO SUCCESS

● People processes of teamwork and leadership as well as tools and techniques

● Blending of hard and sob methods and techniques are important in Project Management


TOOLS IN PROJECT MANAGEMENT

● Microsob Project (MSP) ● Primavera Project Planner (P3) ● Primavera Professional Project Management (P6)

27


PROJECT LIFE CYCLE Time Distribu-on of Project Effort

Initiation Planning

Executing

Closing


Process Groups Interact in a Phase or Project

Project Management Process (IPEC+MC)


Knowledge

Areas

Project Management Process Groups

Ini$a$ng Process Group

Planning Process Group Execu$ng Process Group

Monitoring & Controlling Process

Group

Closing Process Group

Project Integra$on Management

Develop Project Charter

Develop Project Management Plan

Direct and Manage Project Execu-on

• Monitor & Control Project work •  Perform Integrated Change Control

Close Project or Phase


• Collect requirements • Define Scope • Create WBS

• Verify scope • Control scope

Project Time Management

• Define ac-vi-es • Sequence Ac-vi-es • Es-mate Ac-vity resources • Es-mate Ac-vity dura-ons • Develop schedule

Control Schedule

Project Cost Management

• Es-mate cost • Determine budget

Control Cost

Project Quality Management

Plan Quality Perform Quality Assurance

Perform Quality Control

Project Human Resource Management

Develop Human Resource Plan • Acquire project team • Develop project team • Manage Project team

Project Communica$on Management

Iden-fy Stakeholders

Plan Communica-ons •  Distribute Informa-on •  Manage Stakeholder Expecta-on

Report Performance

Project Risk Management

• Plan Risk Management • Iden-fy Risk • Perform Qualita-ve Risk Analysis • Perform Quan-ta-ve Risk Analysis • Plan Risk Response

Monitor & Control Risk

Project Procurement Management

Plan Procurements Conduct Procurements Administer Procurements Close Procurements


PMBOK 5 process groups

Project Management Process (IPEC+MC)

Initiation

Planning

Execution

Monitoring and

Controlling Closing


PROJECT LIFE CYCLE Time Distribu-on of Process Interac-on


SWOT ANALYSIS – INITIATING PROCESS


Knowledge Area 2: Scope Management



●  Organisation scope – defining scopes amongst organisations involved

●  Project scope – defining scopes of the project itself ●  Activity scope – determining how detailed you want to

cover the activity ●  As project and activity are the main focus of scope

management, time management is also important in managing the scope

35


Knowledge Area 3: Time Management


PROJECT TIME MANAGEMENT

●  Create project calendar ●  Define WBS ●  Define the activities ●  Determine sequence of activities ●  Estimate activities duration ●  Estimate activities resources ●  Determine constraints and limitation ●  Develop schedule ●  Control

It involves BOTH project planning and scheduling

37


● Project planning –  Process of iden-fying all the ac-vi-es necessary to successfully complete the project

–  Technique e.g. WBS

● Project scheduling –  Process of determining sequen-al order of planned ac-vi-es, assigning realis-c dura-ons to each ac-vity, and determining start and finish dates for each ac-vity

–  Technique e.g. GanN chart, PERT and CPM

PROJECT TIME MANAGEMENT


PROJECT PLANNING TECHNIQUE: WBS

●  A work breakdown structure (WBS) is an outcome-‐oriented analysis of the work involved in a project that defines the total scope of the project

●  A graphical display of the project that shows division of work in a mulElevel system

●  The concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its part

●  It is a founda-on document in project management because it provides the basis for planning and managing project schedules, costs and changes


● WBS defines: – Work to be performed –  The needed exper-se –  Selec-on of the project team –  Base for project scheduling and control

●  The development of WBS is a con-nuing process: –  Starts when the project is first assigned to the project manager

–  Con-nues un-l all work packages have been defined

PROJECT PLANNING TECHNIQUE: WBS

www.utm.my innova-ve ● entrepreneurial ● global 41 Copyright Course Technology 1999

41

Figure 4-‐6a. Sample of Intranet WBS Organized by Product

www.utm.my innova-ve ● entrepreneurial ● global 42 Copyright Course Technology 1999

42

Figure 4-‐6b. Sample Intranet WBS Organized by Phase


Table 4-‐3. Intranet WBS in Tabular Form 1.0 Concept

1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team

2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support


Figure 4-‐7. Intranet WBS and Gand Chart in Microsoe Project 98

WBS Gantt Chart


CREATE A WBS FOR SATAY BARBEQUE

Assumptions • Vegetables are uncut

• Nasi impit is uncut • Kuah is unheated

• Satay is raw • Satay Grill ready but no fire

• Arang/coal ready • Fire lighter available

• Lighter available • Plates are available

Activity ends when satay is served as

shown


WORK BREAKDOWN STRUCTURE

Serve Satay

Veggies & Nasi Impit

Prepare Satay Grill

Barbeque & Serve

1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce

2.1 Put charcoal in grill 2.2 Light fire 2.3 Spread charcoal

3.1 Put satay on grill 3.2 Grill & serve

1 2 3


PROJECT SCHEDULING TECHNIQUES

● GanN chart or bar chart ● Cri-cal Path Method (CPM) ● Program Evalua-on & Review Technique (PERT)


GANTT CHART

J F M A M J JTime Period

Activity

Design

Build

Test

J F M A M J JTime Period

Activity

Design

Build

Test


GANTT CHART

Activities

Time (days)

Planned

Actual

Early start (ES)

Early finish (EF)


LET’S RECAP!

Serve Satay

Veggies & Nasi Impit

Prepare Satay Grill

Barbeque & Serve

1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce

2.1 Put charcoal in grill 2.2 Light fire 2.3 Spread charcoal

3.1 Put satay on grill 3.2 Grill & serve

1 2 3


Warm up sauce Cut Nasi Impit

Put satay

Cut Cucumber Cut Onions

Put coals

Light fire

Spread coals

Serve satay


PERT & CPM

● Network techniques/analysis system ● Consider precedence rela-onships & interdependencies

● Each uses a different es-mate of ac-vity -mes


PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)

● Program Evalua-on and Review Technique (PERT) -‐Similar method –  Developed in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilisEc approach to scheduling for Polaris missile

–  Commonly used by the manufacturing industry v Both methods are oben referred to as a network analysis system.


PERT -‐ PROBABILITY

● Expected project -me (T) •  Sum of cri-cal path ac-vity -mes, t

64 bmaET ++

=


CRITICAL PATH METHOD (CPM)

● Cri-cal Path Method (CPM) –  Developed in 1956 – by the DuPont Company with Remington Rand as consultants, as a determinisEc approach to scheduling.

–  Commonly used in the engineering and construc-on industry.


PERT & CPM STEPS

● Iden-fy ac-vi-es ● Determine sequence ● Create network ● Determine ac-vity -mes ● Find cri-cal path

•  Earliest & latest start -mes •  Earliest & latest finish -mes •  Slack


● Activity – A specific task or set of tasks – Use resources and take time to complete – e.g. concreting

● Event – The result of completing one or more

activities – Use no resources

Chapter 8-9

TERMINOLOGY


● Network – Combination of all activities and events – Define the project and the activity

precedence relationships

Chapter 8-9

TERMINOLOGY


TERMINOLOGY

● Path – Series of connected activities (or intermediate

events) between any two events in a network

● Critical – Activities, events, or paths which, if delayed,

will delay the completion of the project – A sequence of critical activities that connect

the project’s start event to its finish event Chapter 8-10


● An activity can be in any of these conditions: – It may have a successor(s) but no

predecessor(s) - starts a network – It may have a predecessor(s) but no

successor(s) - ends a network – It may have both predecessor(s) and

successor(s) - in the middle of a network

Chapter 8-11

TERMINOLOGY


AcEvity on Node (AoN)

2 2 Years

Enroll Receive Exec. Diploma

Project: Obtain an Exec. Diploma/Master

1 month

Attend class, study etc.

1 1 day

3


AcEvity on Arrow (AoA) – Can be complex due to dummy acEvity

2 Years

Enroll Receive Exec.

Diploma

Project: Obtain an Exec. Diploma/Master

1 month

Attend class, study,

etc. 1

1 day 2 3 4


AoA Nodes Have Meaning

Graduating Applicant

Project: Obtain a Master’s Degree

1

Alumni

2 3 4

Student


Terminology for AOA

Chapter 8-9

event activity

Indicator b = concreting


We’ll use AcEvity on Node

1-2 must be done before 2-3 or 3-4 can start

2

3

4

1


AcEvity RelaEonships

2-3 must be done before 3-4 or 3-5 can start

2

3

4

1 5


2-4 and 3-4 must be done before 4-5 can start

2

3

4

1 5



When 5-6 is done, project is complete.

2

3

4

1 5 6



NETWORK EXAMPLE -‐ AON

You’re a project manager for Bechtel. Construct the AON network.

Ac-vity Predecessors A -‐-‐ B A C A D B E B F C G D H E, F



A

C

E

F

B D

G

H

Z


2 3 1 A

C

B D

A precedes B and C, B and C precede D

2 4 1 A C

B

D

3

5

4

Add a phantom arc for clarity.

Dummy activity

NETWORK EXAMPLE – AOA – Can be complex due to dummy acEvity


LET’S TRY THIS! (AOA)

AcEvity Predecessor A -‐ B -‐ C A D A,B


DUMMY


DUMMY

● An ac-vity with zero dura-on ●  Links together ac-vi-es whose sequence would otherwise not be shown

●  Indicated by a dashed arrow ●  Show the sequence between ac-vi-es e.g. ac-vity A and D without the problem of linking Ac-vity B with Ac-vity C

● Determined by looking at the ac-vity list and find those ac-vi-es that share some, but not the en-re set of prior ac-vi-es.


CRITICAL PATH METHOD (CPM) FOR AON

● Provides ac-vity informa-on •  Earliest (ES) & latest (LS) start •  Earliest (EF) & latest (LF) finish •  Slack (S) or float (F): Allowable delay

● Iden-fies cri-cal path •  Longest path in network (from start to end) •  Shortest -me project can be completed • Any delay on ac-vi-es delays project • Ac-vi-es have 0 slack or float *Cri-cal ac-vi-es = Ac-vi-es in cri-cal path. Have no float i.e. ES = EF and/or LS = LF. Indicated with double line.


CRITICAL PATH METHOD (CPM) FOR AON


SLACK/FLOAT


SLACK/FLOAT

●  Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION

TF = LF – EF = LS - ES ●  Free float: Amount of time that an activity’s start can be

delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY

FF = ES NEXT ACTIVITY – EF THAT ACTIVITY


1

3

7 6

4

5

2

A D

G

B

E

L

H

F

C

J

MK

AOA to AON EXERCISE

Forward calculation– choose the largest value Backward calculation – choose the smallest value


The duration (in weeks) of the activities in the network are given as listed below:-

● A – 7 ● B – 1 ● C – 10 ● D – 3 ● E – 2 ● F – 3

● G – 12 ● H – 13 ●  J – 8 ● K – 17 ● L – 4 ● M – 12

AOA to AON EXERCISE


●  Transform the AOA to AON network ●  Find

a)  The minimum project time b)  The earliest and latest times for each event c)  The total float of each activity d)  The free float of each activity e)  The critical path

AOA EXERCISE


CRITICAL PATH ANALYSIS EXAMPLE 2

Event ID Pred. Description Time

(Wks) A None Prepare Site 1 B A Pour fdn. & frame 6 C B Buy shrubs etc. 3 D B Roof 2 E D Do interior work 3 F C Landscape 4 G E,F Move In 1


NETWORK SOLUTION

A

E D B

C F

G

1

6 2 3

1

4 3


QUIZ ●  The duration (in weeks) of the activities in the network are

given as listed below:

AcEviEes Predecessor DuraEon (Weeks)

A -‐ 5

B A 4

C A 6

D A 5

E B 4

F C 3

G D 5

H E, F 7

I G 4

J H, I 3


●  In 30 minutes, find: a)  The minimum project time b)  The earliest and latest times for each event c)  The total float of each activity d)  The free float of each activity e)  The critical path

QUIZ


BENEFITS OF PERT/CPM

● Useful at many stages of project management

● Mathema-cally simple ● Use graphical displays ● Give cri-cal path & slack -me ● Provide project documenta-on ● Useful in monitoring costs

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Knowledge Area 4: Cost Management


EARNED VALUE MANAGEMENT SYSTEM (EVMS)

A predetermined amount of value i.e. budget, that is claimed, or earned, when the corresponding work is accomplished


EARNED VALUE MANAGEMENT SYSTEM (EVMS) OBJECTIVES

● Plan all work prior to beginning it ● Measure performance based on an objec-ve set of technical criteria

● Analyze schedule status and projec-ons using a -me phased CPM network

● Analyze the expenditure of funds in light of the work accomplished (not work scheduled)


EARNED VALUE MANAGEMENT SYSTEM (EVMS) OBJECTIVES

● Isolate problems: –  Quan-fy technical problems within the context of cost

and schedule parameters –  Not aimed at replacing or changing the process for

technical problem detec-on;

● Forecast comple-on date and final cost ● Take correc-ve ac-on ● Maintain disciplined control of the performance measurement baseline


Knowledge Area 5: Quality Management


QUALITY MANAGEMENT

● Objec-ves: –  Improve quality of project – Achieve maximum customer saEsfacEon

● Philosophies: – Process improvement – Customer and supplier involvement – Teamwork and training to achieve customer sa-sfac-on

– Cost effec-veness – Defect free quality work


STEPS OF QUALITY MANAGEMENT

● Prepara-on and planning ● Implementa-on of plan ● Measurement and verifica-on of implementa-on

● Evalua-on of results


CUSTOMER SATISFACTION

●  Func-on of project is to provide clients with the products, services, facili-es or structures that meet their need

●  Ensuring quality at each stage in the project (from ini-a-on to closure) will sa-sfy the customer

●  Thus, management func-ons to: – Maintain and incrementally improve current methods and procedures through process control

–  Direct efforts to achieve technological advances through innova-on


QUALITY MANAGEMENT PROCESS

Plan

Do Check

Act

Corrective action on opportunity, standardize and feed forward to the next plan

Verify results of plan

Plan improvements for present practices

Implementation of plan on small scale

PROGRESS


Knowledge Area 6: Human Resource Management


FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES


ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS

Organization Type Project Characteristics

Functional

Matrix Projectized Weak Matrix Balanced

Matrix Strong Matrix

Project Manager's Authority

Little or None

Limited Low to Moderate

Moderate To High

High to Almost Total

Percent of Performing Organization's Personnel Assigned Full- time to Project Work

Virtually None

0-25%

15-60%

50-95%

85-100%

Project Manager's Role Part-time Part-time Full-time Full-time Full-time Common Title for Project Manager's Role

Project Coordinator/ Project Leader

Project Coordinator/ Project Leader

Project Manager/ Project Officer

Project Manager/ Program Manager

Project Manager/ Program Manager

Project Management Administrative Staff

Part-time

Part-time

Part-time

Full-time

Full-time

The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too.

PMBOK Guide, 1996, p. 18


DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT

–  Job of func-onal managers go on forever

– They operate and op-mise the use of resources of overall company basis

–  Job of project managers is over once project is finished

– They op-mise resources of a project

– Different defini-ons of op-misa-on may lead to conflicts


ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH

● Teamwork -‐ beNer mo-va-on and communica-on

● Synergism -‐ high performing team ● Cross-‐border management -‐ difficult cultures, func-ons and boundaries

● Forward-‐looking -‐ what else needs doing ● Client rela-ons -‐ one point of contact ● Results – more effec-ve


Knowledge Area 7: CommunicaEons Management


IMPORTANCE OF GOOD COMMUNICATIONS

● The greatest threat to many projects is a failure to communicate

● Strong verbal skills are a key factor in career advancement for Project Managers


PROJECT COMMUNICATIONS MANAGEMENT PROCESSES

● Communica-ons planning: determining the informa-on and communica-ons needs of the stakeholders

●  Informa-on distribu-on: making needed informa-on available in a -mely manner

● Performance repor-ng: collec-ng and dissemina-ng performance informa-on

● Administra-ve closure: genera-ng, gathering, and dissemina-ng informa-on to formalize phase or project comple-on (including lesson learn)


CASE-‐STUDY LYNAS -‐ WHAT ARE THE ISSUES?


LYNAS CASE-‐STUDY – GROUP WORK

● Iden-fy project stakeholders ● What are the issues? ● What are project benefits? ● What are the project risks? (major & minor)

● Why are there conflicts? ● How to resolve conflicts? ● How can management inform the public?


SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS

● Resolve conflicts effec-vely ● Develop beNer communica-on skills ● Run effec-ve mee-ngs ● Use templates for project communica-ons


Knowledge Area 8: Risk Management


RISK LEVEL FOR TYPICAL PROJECT

PROJECT MANAGER (Head of Section/Mgr)

PROGRAM MANAGER (Head of Department/ SM)

POTFOLIO MANAGER (Head of Division/GM)


WHAT IS RISK? A risk is a potenEal problem characterised by: (a) A likelihood of occurrence (b) A poten-al impact


SOURCES OF RISK

1. Use of new or untried technology 2. Inexperienced team 3. Poor Project management

structure 4.  Lack of resource or resource

conflicts 5. Work takes longer than planned 6. Deliveries from supplier late 7. Insufficient produc-on facili-es 8. Placing of subcontract and

purchase orders

10. Replace key, sick or holidaying personnel

11. Weather may delay work 12. Labour disputes may delay work 13. Poor cost es-mates 14. Currency conversion rates may

changes 15.  Interfaces with other people,

departments and companies. 16.  Pressure from NGOs, Poli-cians,

Crooks 17.  Global Weather Changes 18.  Natural Disasters


RISK ASSESSMENT MAP

Impact Probability

Low Medium High

High ? Medium

Low ?


Knowledge Area 9: Procurement Management


PROCUREMENT ● Procurement refers to the process of acquiring projects

●  The process may be categorized into six main elements: 1.  Ini-a-on – recognises need for a facility/service etc 2.  Funding – provides finance required for project 3.  Design – translates requirement of ini-ator into drawings 4.  Statutory Approval – obtains relevant authori-es to ini-ate

and construct a facility and upon its comple-on/occupancy/comple-on of facility

5.  Tendering -‐ obtains offer leading to a contract between a client and contractor, a client and consultant or a contractor and sub-‐contractor

6.  Construc-on -‐ physically fits the varied components of a facility together, to form a final structure.


PROCUREMENT SYSTEM

●  The system of procurement determines the rela-onship of par-es involved in the procurement process

●  The contractual rela-onship indicates the types of risks each party will be responsible and the reward for doing so in the processes of construc-on procurement.

●  In Malaysia the dominant procurement system are:-‐ •  Tradi-onal lump-‐sum system or Design/Bid/Build •  Design & Build or Turnkey System •  Construc-on Management •  Owner/Agent


Knowledge Area 10: Stakeholder Management


STAKEHOLDER

● Individuals and groups with a mul-tude of interests, expecta-ons and demands as to what business should provide to society

● Divided into 2: – Primary stakeholder – have a direct stake in organisa-on and its success

– Secondary stakeholder – have public or special interest stake in organisa-on


STAKEHOLDER MANAGEMENT

● Iden-fy types of stakeholders and their power

● Determine opportuni-es (build good produc-ve working rela-onship) and challenges (how can the stakeholders be handled) that stakeholders present

● Know the economic, legal, ethical and philanthropic (humane) responsibili-es that the organisa-on has to the stakeholders


THE END

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