Beruflich Dokumente
Kultur Dokumente
ASSIGNMENT – EMPM5103
PART A
PART A
Question 1
Answer 1
Before we go and discuss further about this topic, the following are the defination of
project, time, cost and performance;
Time - A define start and end dates as stipulated in the contract to carry out a
specific project.
Cost - Funding limit to carry out all the necessary works to complete a specific
project at desired quality.
Today definition of project success also has been extended or modified to include
project completion :
In any project these three elements which are time, cost and performance shall
always be referred in determining whether the project is success or fail.
The time, cost and performance are interconnected and as the project objective they
are to be defined and accepted by the employer or the project owner at the initial
stage e.g. during the project briefing, before the detail design and technical
specifications are finally prepared.
Time is a very essential project objective, shall the project can be completed on
time or at the extended time due to change in scope of works, despite it met the
project owner dateline, in directly it also can control the cost. No more cost is
required for a completed project but if a project is delayed or prolonged the
contractor shall sufferred esclating cost especially on the additional company
resources required to complete the remaining works e.g manpower, equipment,
facilities and etc. In which all these resources can be transferred to other project
and company can make profit shall the project is completed.
On the other hand, for the project owner a completion of a project on time shall mean
that they can carry out their business as per their scheduled and it is a possibility to
make a good fortune. For example shall a shopping mall is completed on time and
can be opened one month before Hari Raya festive, the owner can carry out their
business as planned, attracted the crowd to shop in their mall and make a relevant
profit. But shall the completion of the mall is delayed and the mall cannot be opened
before the Hari Raya festive, the project owner not only shall lose the opportunity to
make money but also shall suffer extra cost. That is why in most cases the project
owner imposes LAD (Late and ascertain damages) as a penalty to the contractor
shall the project delayed.
Last but not least, performance of a project is achieved when it can be completed
within accepteble specifications, safety and sustainablity. Despite to be completed on
time and within the estimated cost, a project must also be completed at accetable
performance, sustainable and safety. Therefore any subgrade works, poor
worksmanship and low grade material must be advoided.
Shall all these three project objectives can be achieved then we can say that the
project is completed sucesssfully.
Managing a project within time, cost and performance is easier said than done. As
shown in Figure 1.0, time, cost and performance are the main constraints of a
project. If the project is executed/completed outside the customer expectation, then
the project has a fourth constraint which is requires a good customer relation or
customer friendly in order to allow for the entended completion time, additional cost
or maybe at a lower but acceptable standard. (Rahman Ayub, Ahmad Hilmy Abdul
Hamid 11th. April, 2007),
The success or failure of a project shall very much depending on how best the project
manager can produce the deliverables or the predetermined targets and objectives
within the stipulated time, budgets cost and acceptable performance. Therefore a
project manager must do a good planning to determine how much time shall be
required and what is the estimated cost will be needed in order to complete a specific
project at a desirable performance, sustainability and safety by the project owner.
In order to do that a project manager despite to do a good planning, they also must
control and organize well all the company resources e.g. money, manpower,
equipment, facilities, materials and information/technology during the
“execution of the project” and “the project close out” phases to avoid over
budget, project delay and sub standard performance which might caused the projects
failure. (Harold Kerzner, 2009. Pg. 8)
There are several factors that are important in ensuring a successful completion of a
project. Those factors are :
iii. A good project control system must be developed to monitor, measure and
evaluate the cost, schedule, labor-hours and quality of works.
Planning tools such as Critical path method (CPM), Project Evaluation & Review
Technique (PERT) method and etc are some of the method that can help a project
manager to control time consuming and track thoroughly the execution and works
progress. With the planning tools, the project cost shall also be translated in terms of
project resources such as workers man-hours, materials, equipment, plants and
machines. Therefore the cost and the quality of works can also be monitored
planned versus actual.
Upon the completion of a project, the performance is one of the ultimate issues
despite of completion on time and within estimated cost.
Question 2
Answer 2
Every program, project, or product has certain phases of development known as life-
cycle phases. A clear understanding of these phases permits managers and
excutives to better control resources to achieve goals.
During the past few years, there has been at least partial agreement about the life
cycle phases of a product. They include;
The theorical definations of the Life cycles phases of a system can also be applied to
a project and the phases are as follows;
• Conceptual
• Planning
• Testing
• Implementation
• Closure
Description of Project Life Cycle according to Harold Kerzner, 2009 can be described
as follows;
iii) Testing phase is predominently a testing and final standardisation effort so that
operation can be started. At this stage almost all documentations must be
completed.
In Figure 2, the complete phases of a project and those products are compared.
Different authors might give 4, 5 or six phases of Project Life Cycle. Some try to
elaborate more variables for examples conceptual is the same as Initiation and
testing (depend in which industry you are in, electronics or manufacturing, they add
in testing before implementation, and in the construction of buildings, normally
people shall include testing & commissioning under execution phase).
So it does not matter how many variables to be taken, but fundamentally in LIFE
CYCLE always covers INITIATION (some call it as conceptual or feasibility),
PLANNING (some call it DESIGN/ENGINEERING STAGE), EXECUTION &
CONTROL (some include TESTING in this phase or separately) and CLOSE OUT
(some call TESTING STAGE & HAND OVER).
Below is one example of “Project Life Cycle” process in gas pipeline construction
projects. The phases used smilar with other construction industries namely
Initiate/Start up, Planning, Excecution and Close out.
By tabulating all the works involves in a project, the contractors shall be able to see
what are the critical paths and the area of concerns that need to be tackled in order
to realise the project to client’s expectations which are to complete the project within
the scheduled time, extimated budged, at acceptable quality, safety and
sustainability.
Figure 4, shows the four phases of project life cycle as explain by Morris. The graph
also ilustrate each phases with respect to project completion percentage.
The informations and lessons learn in completing a project life cycle shall later be
applied to the new projects in a better understanding, improve controlling system, can
be closed and hand over to the client smoothly and neat.
Organisations that practice Project life cycle, the following additional andvantages
can also be benifited and the are summerised as below;
Question 3
The word “Planning” is often used as a yardstick of the difference between the
good project manager and the poor project manager. Discuss how project
managers manage planning of the project. [20 marks]
Answer 3
Often projects fail because they are poorly planned, or even completely unplanned.
Therefore the failure will come as a complete surprise rather than being preceded by
periods of worry and depression. Without proper planning, a poor project manager,
might drive the projects to start off “behind the eight ball”. The consequences of poor
planning include;
In the other hand a good project manager with a sound knowledge in integrating all
the management process and the elements of the process shall be able to lead the
projects to a success. A good project manager should master himself on all the nine
knowledge and drive it throughout the project life cycle. The nine knowledge areas
are as follows;
The starting point for a good project plan is a proper understanding of the
requirement and knows what exactly is the project supposes to achieve?
The main purpose of project plans is to guide project execution. Plans must be
realistic and useful. A fair amount of time and effort must go into the planning process
and the people knowledgeable in doing the work need to plan the work. Planning
assumes two items:
A good project manager must plans realistically with regard to timely performance
and reasonable cost. Meeting these criteria ensures that the actual project will be
performed successfully within the scheduled time and financial constraints. Planning
must be done logically and thoroughly if we are to have any chance for the project to
succeed. In planning philosophy, we must understand two key points:
With the nine knowledge areas and the basics reason for project planning, a good
project manager shall be able to plan properly the project planning processes consist
of the following activities: -
One of the most important of project objectives is when the needs of the stakeholders
are met. This is a narrative description of the end results that to be accomplished
Therefore, it is important to identify who are the stakeholders at the very beginning of
the project. Identifying the stakeholders of a project it is not always easy, particularly
those who are impacted indirectly. Some examples of stakeholders are as follows;
When the stakeholders are identified, the next step is to find out their requirements
and to fulfil them. Conducting a stakeholder interviews is one of the best way to
identify their requirement/need. Often stakeholders will talk about the need that aren't
relevant and don't really required. This information can be recorded and noted as a
low priority. That is why the interviews to draw out the true needs that create real
benefits normally took a long time.
Once all the interviews were conducted and the comprehensive priority lists are
produced, a project manager need to set the goals that can be easily measured. A
technique for doing this is to review them against the SMART principle, i.e.; specific,
measurable, agreed upon, realistic and time based. This shall ease the project
manager in identify whether a goal has been achieved or not.
Once a clear set of goals have been established, they should be included in the
project plan together with the needs and expectations of the stakeholders.
Misinterpretation of SOW can and will occur no matter how careful the team had
tried. Common causes of misinterpretation are as follows;
The statement of works for good project managers is their intention to meet the
project’s objectives and provide all project deliverables within the constraints
of “Time, Cost and Quality”.
When the most difficult part of the planning process is completed, we should move on
and plan for the project deliverables.
I/C No: 670703-01-6045 Part A: Page 13 of 20
Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317
The successful accomplishment of both contract and corporate objectives that have
been derives in SOW, requires a plan that defines all the efforts to be expended,
assigns responsibility to a specially identified organisational element, and establishes
schedules and budgets for accomplishment of the works. The detailed planning is
also established in accordance with company budgeting policy before contractual
efforts are initiated.
Traditionally, activity planning for the schedule is independent and separate from the
cost. The accuracy and usefulness of the breakdown and relationship is dependent
upon intimate knowledge of the construction elements, judgment and skills of the
planner.
WBS provides a tool for planning the activities, including estimates of resources,
activity durations and costs. The basic aim of a WBS is to split the project into
tangible deliverable items. The more work packages we split the project into, the
more interfacing with other people, departments, functions or even companies there
may be. However the less work packages there are, the harder it will be to budget
and estimate resource requirements. It is advisable that a work package should not
be more than 8 hours of work (or a day’s work).
Otherwise, it will be difficult to assign resources, monitor progress and carry out
performance measurement. In most construction programme, the activities define are
mostly too large to be classified as a work package and at such it is difficult to assign
specific quantifiable resources, difficult to estimates duration, and most of all difficult
to provide a logic – predecessor/ or successor in a network diagram.
In planning a project a project manager must structure the work into small elements
that are:
The WBS is structured in accordance with the way the work will be performed and
reflects the way in which project costs and data will be summarised and eventually
reported. It also must address how we will plan, organize, and control the major work
activities to meet our goals of finishing the work on time, within budget and as
specified. One important point before planning is that we do not want to do more than
necessary to satisfy customer needs, since that is wasting money. On the other
hand, we should not do less than necessary, or we may lose the customer.
WBS also should consider other areas that required structured data such as
scheduling, configuration, management, contract funding and technical performance
parameters. WBS is important because it’s provides a common framework that
covers;
The WBS shows and determines the smaller elements and activities thus providing
the greater probability that every major and minor activity will be accounted for. Most
common WBS is the six-level indented structure shown below:
After the works have been split into smaller elements, commonly CPM (Critical Path
Method) is used to allow the project manager to measure project progress in order to
achieved project goals.
This is the process to predict success of the project, thus allow the project manager
to look into alternative if there is changes occurred.
We propose three steps to elicit the ‘full’ (explicit and implicit) project logic:
1. Knowing the project logic stated in the logical framework and other project
documents;
2. Identifying the specific activities carried out during the project cycle, who
decided about changes to the original design, why and under which
circumstances; and
3. Investigating the practices that evolved over time, as result of the interaction of
individuals
Practices and relations, not only milestone and planned activities, should be the
focus of any project assessment because a change process is not caused merely by
a design.
Change is pursued, lived and felt by individuals who negotiate goals, experience
conflicts or reach agreements while seeking to exercise their autonomy in their
specific circumstances.
WBS separate all activities inclusive time, cost and quality and there are as follows;
i) Scheduling and costing - After developing the activities, the next step is to
estimate the duration requires and the activities sequence. From thereon, the
network diagram is finally developed, which form the construction master
programmes.
The contract’s department, which is home for the project quantity surveyors and
estimators normally, carries out the cost estimate and budgets. Once the project
estimate and budget is established by the QS, the project manager is given a
copy for his review and comment. If agreeable, the budget will then be sent for
the project sponsor’s approval.
Planning and controlling standards for quality are fundamental in both the
design and construction phases of a project. Quality assurance involves the
economic studies to select the types of materials and methods to be included in
design and controlling processes, making certain that the works are carried out
in accordance with the contract specification and drawings.
Methodology ranges from computerized documentation, technical design, to
sampling and testing products and structural dimensioning in the field. A proper
and well-documented quality assurance plan should be submitted to the client’s
consultant for approval. A good quality assurance plan will assure the client of
your ability and provide confidence to the level of control and inspection
conducted by the client’s representative. Quality assurance is always
considered as the in-plant representative of the customer. Quality assurance is
also the agent for improvement of the processes and product.
The planning schedule shall allow the project manager to manage all the works, track
the planned and actual progress, taking contingencies measures to meet the date
line and etc. Scheduling tools namely CPM, PERT, Gant chart and others are usually
used.
For risk to be managed it must first be identified and recognized and then the
likelihood of its occurrence and its consequences can then be assessed and steps
taken to minimize its impact by deflecting to another party (e.g. buy insurance, sub-
contracting), mitigating its impact by reducing the probability of occurrence, or
accepting the consequences should the risk occur.
Risk management plan identifies as many risk events as possible, minimizes their
impact, manages responses, and provides contingency funds to cover risk events
that actually materialized. Risk management is a preventive process designed to
ensure that surprises are reduced and that negative consequences associated with
undesirable events are minimized. The challenge of project risk management is in
identifying the risk retained and recognizing the fact that a risk, which is transferred
under some circumstances, may be retained under others. Basically, transferring risk
does not reduce risk, but places the risk at the foot of another party. In some cases,
transfer can significantly increase risk because the party to whom it is being
transferred may not be financially capable of supporting the risk.
The Contract Form is the first reference by which risk will be assessed, thereby
apportioning risk in a way, which is considered acceptable in the industry. In the
event of dispute, it will be the first source of reference for an analysis of the
respective rights, duties and liabilities of the parties.
A building contract is a trade-off between the contractor’s price for undertaking the
work and his willingness to accept a degree of risk. If the contractor is to carry certain
I/C No: 670703-01-6045 Part A: Page 18 of 20
Name: Mohd. Norizam Md. Salleh Student ID:CGS00534317
specific risk, he should expect to see them reflected in his contract by an increase in
the contract price. It must be recognized that standard forms of contract do have
provisions for excusing the contractor from many risks affecting the project. It is often
the misconception among developers that irrespective of the form of contract chosen,
once the lowest tender has been accepted, the contract signed between the
contractor and developer, all the risk of failure will be transferred to the contractor.
Resource planning
During staff acquisition phase, existing staffs are assigned to the projects after the
project site organizational chart is submitted to project sponsor for approval. In the
event of shortage, the management would outsource by advertisement or the project
manager may recommend others known to him for employment particularly previous
colleagues in the same industry or his friends with relevant education qualification
and experiences.
In the other hand, acquisition for materials and equipments are normally handled by
the purchasing department and the machinery department. The project manager
shall have to make formal request for them. Sometimes, the available resource may
be insufficient or untimely and the project manager has to bargain and negotiate with
the key functional managers.
Communication planning
Project correspondence
Audiovisual presentation
Project reporting, meetings,
Training
Listening.
Upon agreement of the sample format, the project manager would be required to
submit biweekly or monthly reports, which would also include progress photographs
of work-in-progress. Producing a concise and well-presented biweekly/monthly
progress report is the best way for project managers to set the standard for reports
on the project. It is also a good instrument to check on how the project is going. The
main purpose of the report is to inform the key stakeholders as to how the work is
progressing and to keep a running history of vital project activities.
Project forecasting predicts future project status and progress based on past
information and trends. Earned Value analysis (EVA) can be used to estimate the
budget at completion based on how the project is progressing.
In the other hand project meetings are integral progress review elements of a project.
Meetings help determine delays (that have occurred) and achievements according to
the baseline plans. It is also important to get the entire project team members
together at scheduled times to talk and listen about the project. Meetings can help
team members to know where the individual parts fit into the collective aim of the
group, and where individual success can contribute to team success.
Conclusion
A good project manager should be able to plan and manage all planning activities as
discussed above.