SINGAPORE POLYTECHNIC

Specialist Diploma in Supply Chain Management (Session 2011/12 Stage 1 B)

Project Management
(Group Project Report)
Group(3) members; Moe Thu(0346999) Hnin Thiri(1151936) Mya Ye lai Khaing (1153181) Kong Yuan(1151949)

1. Introduction (1) Project Management t (2) Definition of Management (3) Definition of Project Management (4) Supply Chain Project Management 2. Project Life Cycle (1) Project Life Cycle Management (2) Characteristics of Project Lifecycle 3. Project Scope Management (1) Define Project Scopes (2) WBS Structure 4. Project Planning (1) MS Project Plan & Net work Diagram (2) Estimating cost and developing budgets 5. Project Stakeholders (1) Define the stake Holders & Responsibilities (2) Stake Holder Analysis 6. HR Management (1) Staff Management Plan (2) Develop Project Team (3) Manage Project team (4) Benefits, Rewards And Consequences 7. Project Communication Management (1) Project Communication Plan (2) Customer communication 8. Quality Management (1) Quality Objective (2) Quality Management System (3) Quality Assurance (4) Perform Quality Control

9. Risk Management
(1) Project Risks (2) Perform Risk Management 10. Change Management (1) Improvement of Change Management (2) Issues of Change Management 11. Project Documentation

1. Introduction

Halcyon Offshore was established and based in Singapore to cater to the global requirements for marine and offshore winches. Over the years, the Company has emerged to be a reputable manufacturer of quality, economical and customer built winches. Owing to our constant emphasis to innovation and improvement, our winches are made to achieve optimum performance in the harsh marine environmental conditions, while meeting the customers requirements. The Companys businesses include, Design and manufacture of hydraulic and electric winches up 250 ton capacity Design and manufacture of large bore hydraulic cylinders of up to 2000 ton capacity at 700 bar Fabrication, installation and commissioning (Turnkey Project) of anchor windlass mooring winches, towing winches, lifting platform and split hopper barge hydraulic systems Piping/wiring of hydraulic and electrical system for hydraulic The Companys product range include, Anchor windlass and winch Towing, mooring and tugger winch Slipway, derrick crane and hoisting winch Capstan

2. Project Management

The business world is developing at a fast pace, with the composition of new working methods and management theories. Project management is the science and art of organizing the components of a project, whether the project is development of a new product, the launch of a new service, a marketing campaign, or a wedding. A project isn't something that's part of normal business operations. It's typically created once, it's temporary, and it's specific. As one expert notes, "It has a beginning and an end." A project consumes resources whether people, cash, materials, or time, and it has funding limits.

(1)Definition of project A project in business and science is a collaborative enterprise, frequently involving research or design that is carefully planned to achieve a particular aim. A project can be defined as a REPETATIVE or NON REPITATIVE, permanent or semi-permanent functional work to produce products or services. A project is a temporary endeavor, having a defined beginning and end. The output is normally measurable. Undertaken to meet unique goals and objectives. It normally revolves around constrains such as time, cost and resources. Always some changes are going on. Usually to bring about beneficial change or added value. A project in business and science is a collaborative enterprise, frequently involving research or design that is carefully planned to achieve a particular aim. (2)Definition of Management Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others. (3)Definition of Project Management Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies. The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope, time, and budget. The secondaryand more ambitiouschallenge is to optimize the allocation and integrate the inputs necessary to meet pre-defined objectives. Project Management: Project management is the application

/ use of knowledge, skills, tools and techniques to project activities to meet project goals and objectives. For managing a project, a Project Manager is responsible for identifying requirements, goals, objectives and maintaining a balance between quality, scope, time and cost. (4)Supply Chain Project Management Supply Chain Management is the activity that manages the flow of information, money, and material across the extended enterprise, from supplier through the functional silos of the firm to customer. The best companies around the world are discovering a powerful new source of competitive advantage. It's called supply-chain management and it encompasses all of those integrated activities that bring product to market and create satisfied customers. The Supply Chain Management Program integrates topics from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Successful supply chain management, then, coordinates and integrates all of these activities into a seamless process. It embraces and links all of the partners in the chain. In addition to the departments within the organization, these partners include vendors, carriers, third party companies, and information systems providers. Within the organization, the supply chain refers to a wide range of functional areas. These include Supply Chain Management-related activities such as inbound and outbound transportation, warehousing, and inventory control. Sourcing, procurement, and supply management fall under the supply-chain umbrella, too. Forecasting, production planning and scheduling, order processing, and customer service all are part of the process as well. Importantly, it also embodies the information systems so necessary to monitor all of these activities. Figure (1.1) is the visual I reproduced from the book which shows how materials and information should flow across the extended enterprise.

Figure (1.1) Supply chain management is essential to company success and customer satisfaction.SCM also plays a critical role in society. SCM knowledge and capabilities can be used to support medical missions, conduct disaster relief operations, and handle other types of emergencies. SCM also plays a role in cultural evolution and helps improve our quality of life.

Whether dealing with day-to-day product flows or dealing with an unexpected natural disaster, supply chain experts roll up their sleeves and get busy. They diagnose problems, creatively work around disruptions, and figure out how to move essential products to people in need as efficiently as possible.

3. Project Life Cycle

1.

Project Lifecycle Management

The Project Management Life Cycle has four phases: Initiation, Planning, Execution and Closure. Each project life cycle phase is described below, along with the tasks needed to complete it. 1) Initiation

Develop a Business Case Undertake a Feasibility Study Establish the Project Charter Appoint the Project Team Set up the Project Office Perform Phase Review

2) Planning

Create a Communications Plan Create a Procurement Plan Contract the Suppliers Define the Tender Process Issue a Statement of Work Issue a Request for Information Issue a Request for Proposal Create Supplier Contract Perform Phase Review Create a Project Plan Create a Resource Plan Create a Financial Plan Create a Quality Plan Create a Risk Plan Create an Acceptance Plan

3)

Execution Build Deliverables Monitor and Control Perform Time Management Perform Cost Management Perform Quality Management Perform Change Management Perform Risk Management Perform Issue Management Perform Procurement Management Perform Acceptance Management Perform Communications Management

4) Closing

Perform Project Closure Review Project Completion

2.

Characteristics of Project Lifecycle

100 90 80

Level of Activity

70 60 50 40 30 20 10 0 1wk Jan 2wk Jan 3wk Jan 4wk Jan 1wk feb 2wk feb 3wk feb 4wk feb 1wk Mar 2wk Mar 3wk Mar 4wk Mar

Project initiating Planning Executing Controlling Project Closing

4. Project Scope Management 1. Define Project Scope

(1) Planning Phase (2) Design Phase (3) Procurement Phase (4)Production phase (1) Planning Phase Once contract is signed and make effective, Sales engineer shall hand over the contract file to the Projects Department. Project Department HOD shall assign an individual responsible Project Engineer (PJE) to handle the new order. PJE shall prepare the Master Schedule Work Break down Structure (WBS), based on the delivery commitments given by the concerned departments targeting the contractual delivery date. Sales Engineer / Manager coordinate & organizes the New Project Kickoff Meeting (NPM) to formally kick start the contract execution. He or she is responsible to highlight the area of concern, both technically and commercially, for discussion. SE / SM shall distribute the Master Scheduling & relevant contract documents to all the concerned departments prior to the meeting. Assigned personnel responsible for the particular contract from the concerned departments shall attend the NPM meeting. The contract requirements are explained and queries if any are clarified in the NPM meeting. (2) Design Phase

Engineering shall design the equipment as guided in the procedure Design Control. Class approval, if required, for the design of the equipment, is handled by the Engineering department within the time period committed by them. Customer approval for the design & drawings shall be routed through respective PJE. Engineering shall either prepare the Bill of Material for all the components to be purchased and provide to the Purchasing Department. BOM for the long lead & critical items will be given in advance to enable the Purchasing Department to plan & procure them to cope up with the delivery schedule. Once design & drawings are approved either by class and / or customer, as required in the contract, Engineering shall issue production drawing to Production department.

(3)

Procurement Phase

Purchasing shall initiate the procurement process as guided in the procedure, Purchasing. All necessary purchase requisition when raised by any relevant personnel or BOM material which / when crosses the budgetary limit has to be approved by the project VP or GM. When procurement of any material(s) delay beyond the agreed schedule has (ve) to be informed to Projects & Production Department. Any customer supplied material is received has to be recorded in the Master List of Customer Materials and handled as per the procedure, Preservation, Packing & Dispatch. (4) Production Production shall initiate & execute the production process as guided in the procedure, Process Control. All excess cost incurred or expected to be incurred in the contract above the budget then the cost shall be approved by the Project VP or GM. Any anticipated potential delay in schedule together with the proposed action has to be informed to Projects Department.

(2) WBS Structure

5. Project Planning
Project Planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. The purpose of a project planning is to first identify the areas of the project work and identifying the forces affecting the project and then to define the boundaries of the projects. Project Proposal Drawing

(1) MS Project Plan & Net work Diagram

10

11

(2) Estimating cost and developing budgets

A well-prepared budget should be reasonable and demonstrate that the funds being asked for will be used wisely. The budget should be as concrete and specific as possible in its estimates. Make every effort to be realistic, to estimate costs accurately. The budget format should be as clear as possible. Each section of the budget should be in outline form, listing line items under major headings and subheadings. Each of the major components should be subtotaled with a grand total at the end. Estimate Expenses are considered the total direct cost and indirect cost. Indirect Cost: Indirect costs are allowed only if you have a federally approved indirect cost rate (a fully executed, negotiated agreement). There are two types of Indirect Costs. One are the Fixed Indirect Costs which contains activities or costs that are fixed for a particular project or company like transportation of labor to working site , building temporary roads etc. The other is Recurring Indirect Costs which contains activities that repeat for a particular company like Maintenance of Records or payment of Salaries. Some of indirect Costs are included Utilities, Rent, Audit and legal, Administrative staff, Equipment rental, Fuel, Maintenance etc. For example, for rent, provide the square footage and the cost per square foot or a monthly rental cost and how many months of rent are proposed. Direct Costs: Direct Cost can be completely attributed to the production of specific goods or services. Direct costs refer to materials, labor and expenses related to the production of a product. Example, The cost of Raw Material for structure can be attributed directly to the cost of manufacturing that product, as could the cost of packaging materials and preservatives. Some of indirect Costs are included Project staff, Consultants, Project supplies, Raw Material, Training etc. EquipmentList nonexpendable items that are to be purchased. Nonexpendable equipment is tangible property having a useful life of more than 2 years and an acquisition cost of S$5,000 or more per unit. (Note: An organizations own capitalization policy may be used for items costing less than $5,000.) Include expendable items either in the "supplies" category or in the "other" category. Analyze the cost benefits of purchasing versus leasing equipment, particularly high-cost items and those subject to rapid technical advances. List rented or leased equipment costs in the "contractual" category. Explain why the equipment is needed for the project to succeed. Attach a narrative describing the method that will be used to procure the equipment. TravelItemize travel expenses for project personnel by purpose (e.g., staff to training, field interviews, and advisory group meetings). Show how you calculated these costs (e.g., six people to 3-day training at $X airfare, S$X lodging, S$X meals). In training projects, list travel and meals for trainees separately. Show the number of trainees and the unit costs involved. Identify the location of travel, if known. Indicate the source of any travel policies, and if applicant or federal travel regulations apply. SuppliesList items by type (office supplies, postage, training materials, copying paper, and expendable equipment items costing less than S$5,000, such as books and handheld tape recorders) .Generally, supplies include any materials that are expendable or consumed during the course of the project.

12

ConstructionAs a rule, construction costs are not allowable. In some cases, minor repairs or renovations may be allowable. Check the solicitation and with the program office before budgeting funds in this category. Consultant Fees: For each consultant, enter the name, if known, service to be provided, hourly or daily fee (8-hour day), and estimated time on the project. Consultant fees in excess of S$450 per day require additional justification and Quality Standard approval by Professional Engineering (PE) Society. Activities Project Kick off
Designing Purchasing Fabrication Order Receiving Assembly Testing Documentation Painting Packing Shipping Onsite Installation Onsite Testing Total Project Estimate Cost Contingency Reserves (10%) Management Reserves (5%) Total Cost Budget

Estimate Expenses S$
S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$ S$

100
2000 12000 5000 500 2000 1000 500 300 300 1000 1500 500 26000 2600 1300 29900

13

Cost Budget Chart

Management Reserve Contingency Reserve Estimate Cost

5%

10%

85%

6. Project Stakeholders (1) Define Stake holders & Responsibilities Internal Stakeholders
(1) (2) (3) (4) (5) (6) (7) (8) (9) Vice President (VP) Project Manager (PM) Project Coordinator (PC) Project Team Sale & Marketing Production team Purchaser Accounting officer QA/QC Engineer

External Stakeholders
1) Suppliers 2) Specialist Consultants 3) Third Party Fabrication Group

14

1)

Project Manager

The Engineering Manager reports to the Managing Director, and with team of engineers, he is responsible for the design and development functions in the Company. The detailed duties include but not limited to: Assist VP/SVP on section management Product R&D Product costing preparation Product design & concept preparation Project schedule and cost control Check and approve calculation, BOM and production drawings System design & integration Service / Commissioning procedure Site support when needed Any other tasks assigned by the management

Project Team Complete the project within budgeted cost, schedule and quality requirements. Identify resources needed for project. Identify residents of the Halfway House training needs Aid in the management of time, cost and quality. Identify unanticipated risk events Track the project implementation and submit status reports to the project manager. Maintain project and structural building quality requirements Participate in lessons learned sessions. Identify ways to improve project processes
2) QC /QA Engineer

The Management Representative is the appointed Management personnel responsible for Quality Management System. He is responsible for ensuring that all matters relating to the requirements of the Quality Management System are satisfied. The detailed responsibilities include but are not limited to the following: Custodian of the Quality Manual, Quality Documents and Quality Procedures and the implementation of the Quality Management System Plan and schedule Internal Audit of the company's Quality Management System Ensure suitability and effectiveness of the Quality Management System Report to top management on the performance of the Quality Management System and the needs for improvements

15

Ensure the promotion of awareness of customer requirements throughout the Company Ensure processes needed for the Quality Management System are established, implemented and maintained Represent the Company on all matters relating to the Quality Management System

3) Manufacturing/Assembly Supervisors

The Manufacturing/Assembly Supervisors report to the Managing Director and are responsible for the manufacturing and assembling shop operations. The workshop operations include machining, fabrication and assembling of the components and products. The Manufacturing/Assembly Supervisors tasks include, but not limited to the following: Lead a team of technicians and skilled worker in the workshop Plan and manage daily operations in the workshop Ensure that works are carried out smoothly and in a proper manner Ensure that established work procedures are complied to in the workshop operations Responsible for works productivity and quality services in order to achieve highest performance and reliability

4) Purchasing Officer

The Purchasing Officer reports to the Managing Director and is responsible for the purchasing of materials and equipment for project components and products. He is also responsible for but not limited to the following: Sourcing and request for quotation from suppliers and subcontractors Preparation of purchasing documents Assess and qualify new supplier and subcontractors Control of the approved list of suppliers and sub-contractors Conduct periodic assessment of existing suppliers and subcontractors
5)

Service Engineer

The Service/Commissioning Engineer reports to the Managing Director, and is responsible for the servicing and commissioning of assemble equipment and systems. The detailed tasks include, but not limited to: Liaise with customer or the representative and any external surveying parties for equipment servicing and commissioning Prepare service and commissioning programs Plan, schedule and conduct the servicing or commissioning works Prepare and compile service and commissioning reports and all Inspection/tests reports

16

(2) Stakeholder Analysis (Power/Interest)

7 HR Management (1) Staff Management Plan

The Staffing Management Plan is created to address the staffing requirements of the project. It is developed during the Planning Phase in conjunction with the Project Management Plan by the Project Manager. The Staff Management Plan describes the approach for identifying, obtaining, allocating, developing, tracking, and controlling human resources associated with the project during the life of the project.

End

Start

g in nn la P ff ta S

ff n ta io S sit an Tr
ta ra k g S ff T c in

S f A ta c qi f us itio n

Staff Training

17

The objective of the Staffing Management Plan is to ensure that necessary skill levels in sufficient numbers are available to successfully conduct. Staff estimate: Estimating of the staff is also important in staff planning for the project life cycle. The project manager & HR manager should have plan for How many staffs required for each project phase? Which are the skills they need in specific area? Duration of personnel requirement Source of staff (existing state staff, new hire/transfer from another o existing organization, consultant/contractor) HALCYON offshores Project organization charts are follows:

Roles & Responsibilities: Each role is defined by PM to determine with the associated responsibilities for required staffing levels and assignments of the project. The roles captured in this plan are limited to the project team or project management office. Each role and responsibility requirement should be associated with a proficiency requirement or indicator.

18

Required skills: Before start employing staff for the project, PM and HR manager need to know what skills required for their project. In most instances, they cant find all the staff members with desired skills. In this case, they will have to requests for trainings from the training department. Staff Acquisitions The HR manager and PMs must obtain management commitment of Federal resources and develop a plan for acquiring external/contract support. The PMs will need to analyze the experience and perform a skills assessment for all staff resources committed to the project. Staff Training The Staffing Management Plan will further detail the training activities to ensure the right skills are available at the right time. The training needed to ensure that necessary skill levels are available to successfully conduct the project. Potential staff members were trained on required skills in advance to the project commencement. Required timeframes: Timeframes are established for required skills to be available. The timeframes should be developed based on the high-level Project Schedule (WBS) created for the PMP. This enables PMs to define minimum skill sets required of staff and develop timeframes for acquiring training to close remaining skills gaps. Staff Tracking Day-to-day management of the project staff is the responsibility of the Project Manager and designated functional managers. Performance evaluations, performance issues and recognition, promotions, and disciplinary actions are the responsibility of the state staff respective organizational chain of command. Staff Transition Organization desires staff to transition to another project prior to the completion of the project; the staff functional manager will assume or re-assign the departing staff responsibilities. The staff functional manager is responsible for ensuring any pending work is transferred to a remaining staff

19

member to ensure timely transition and completion of the work. If appropriate, the receiving staff may request additional training to support the new responsibilities. Staff may also be replaced by redirecting resources from within or outside of the project, or their workload may be absorbed by other staff. Replacement staff must meet the original minimum qualifications for the position and generally are subject to an interview in addition to a review of their resume and qualifications. If possible, the replacement staff should begin work prior to the original staff departure to ensure appropriate transition of responsibilities and knowledge. (2) Manage Project Team

Project Manager and team leaders shall Clarifying the Teams Mission, Goals and Objectives Solve conflicts between individual goals and teams mission Team Issues Relationship in Teams

Respective department heads and PM shall: Communicate to each team member for importance of quality in their work and the need for them to perform. Determine the necessary competence of their team members that perform work-affecting quality Provide training or take action to improve team members competency to required level Evaluate the effectiveness of the training / action taken The Admin & Human Resource function shall maintain records of training and other related documents.

Develop the Project Team The process of developing project team is an activity that allows improving internal and external interactions of team members, developing their competencies and skills, and optimizing the overall team environment for the purpose of enhancing project performance.

20

The objectives of project team development to be: Improve skills and technical competencies of team members for achieving project deliverables in the context of decreasing costs, improving quality and reducing schedules. Improve internal agreement and personal recognition among team members to enhance morale, reduce number of conflicts, and improve productivity. Establish a dynamic team culture to improve team spirit and cooperation between team members to contribute to better knowledge and expertise sharing. Benefits, Rewards and Consequences Staffing management plan should be crystal clear about the staff rewards as well as the consequences. The plan should illustrate the rewards in detail and how a staff member or the entire staff becomes eligible for rewards. As an example, early delivery of projects is rewarded by paying a bonus to the staff members who are involved in the project. This is one of the best ways to keep the staff motivation and focus on the project activities.

8. Project Communication Management

This process is necessary to ensure timely and appropriate generation, collection, dissemination, and storage of project information using: a. Communications planning b. Information Distribution c. Performance Reporting Define the schedule for the Project Meetings (Team, OSC, ESC), Status Meetings and Issues Meetings to be implemented.

21

1) Project Communication Plan Project Communication Plan will help you to communicate the right information, to the right people, at the right time. It will also help to create a schedule of communications events to ensure that the stakeholders are always kept properly informed, ensuring their continued buy-in and support. Following factors are needed to consider for project communication plans: Listing the communication stakeholders Defining each stakeholders communication needs Identifying the required communications events Determining the method and frequency of each event Allocating resource to communications events Building a communication event schedule

Whenever we have a variety of staff, external suppliers, customers and stakeholders to communicate with, then we should record our communications formally in a Communication Plan. A clear Communications Plan is vital to the success of an organization. It is also critical to the success of projects, as it ensures that all of the staff and stakeholders are kept properly informed of the progress of a project. The best time to perform Communication Planning is during the start up phase of a project. This will ensure our Communication Plan includes the tasks needed to communicate effectively throughout the entire project life cycle. Communication Type
Internal Communication (All, Except QMS Related) Internal Communication (QMS Related) Corporate Communication (Corporate News, Press Release, etc) Customer Communication (up to contract signing & VO, if necessary) Customer Communication (From NPM to delivery including VO, Complains) Customer Communication (After Warranty period) Supplier / Vendor / Sub Contractors Communication Sub Contractors Communication (Commercial - Structure) Sub Contractors Communication (Schedule & Quality Issues including cost control) Class Agencies Communication (Design & Drawing Approval & related commercial) Class Agencies Communication (Product Inspection, Certification Related commercial) Class Agencies Communication (Product & Component Standardization & related commercial)

Responsible Department
HR Department QA Department Sales & Marketing Sales & Marketing Projects Department After sales Department Purchasing Department Production Department QA Department Engineering Department QA Department QA Department

22

(2) Customer Communication The Company will communicate the Companys product and services to the market through advertisements, web-site, sales and marketing efforts, etc to the industry customers. The marketing function shall attend to product/services enquiries and handle orders and contracts. The function is also responsible for any further queries and changes to the orders/contracts. The Company shall constantly seek customers feedback. Customer satisfaction survey shall be conducted to gauge the customers perception and satisfaction of the Companys performance. Customer complaints shall be reviewed and investigated. The root cause(s) shall be determined and corrective actions shall be taken to prevent recurrence of the complaints/nonconformances.

9. Quality Management
(1) Quality Objectives The Company management has also established measurable quality objectives to support the Quality Policy. The quality objectives set the targets for the respective function to achieve the levels of performance in their functions. The established quality objectives are documented in this Quality Manual. Data will be collected and the objectives will be reviewed annually in Management Review meetings. The objectives may be revised according to the performance achieved and new objectives may be introduced, as the management deems fit. Quality objectives are established at relevant functions. These objectives shall be constantly reviewed and updated, and be used as a basis for continual improvement in the respective functions. (2) Quality Management System The Companys Quality Management System, which is developed in accordance with the requirements of ISO 9001:2008. This Quality Manual describes the management system policies and the scope of its application. It also refers to the procedures, which are developed to satisfy the ISO 9001:2008 standard requirements and support the Companys operations and processes. The Quality Manual is controlled and issued by the appointed Management Representative (MR), who has the responsibility of implementing and maintaining the effectiveness of the Quality Management System.

23

(3) Quality Assurance Quality standards and Operation are based in order to create guidelines for quality standard (ISO 9001-2008 Quality Management System). Quality Class & Grade are approved by Professional Engineering (PM) Society (High Grade Materials & Treatments).

(4) Perform Quality Control Quality Control Customer satisfaction rating On-time project completion Number of customer complaints Design Revisions from the production stage Non Conformance Report Due to Production Error Function Management Production Management Engineering Production Period Annually Annually Annually Per Project Per Project Target >75% >70% <3% <3% <3%

10. Risk Management

Risk management aims to identify the risks and then take action to minimize their effect on the project. Important components of risk are risk assessment, risk control, risk ranking and risk mitigation. Identify the actions needed to minimize the risk consequences are generally called the risk mitigation step. Risk Management includes: 1. Risk identification and mitigation strategy 2. When\if new risks arise 3. Risk update and tracking (1) Projects Risks 1. Project failure 2. Sponsors pulling out 3. Change of scope 4. Extension of Production and Installation period 5. Quality level of deliverables not satisfactory 6. Resources not coming on time 7. Shortage of labor and poor quality of resources 8. Targets and dates not achieved 9. Escalation of the estimated expenditure

24

(2)Perform Risk Management

Probability of Risk Happening High Impact to the Project Cancellation of Project Counter Measures Proper communication , project planning and management should be done properly Have another potential sponsor that can contribute should anything happens Allow for change of scope Allow float in the deliverables so that if there are any delays the available time maybe used Constantly inspect the contractors work Get a standby supplier Person Responsibl e Project manager and Project team

No 1.

Risk Identified Project failure

Reasons for the Risk Poor project management and project planning

2.

Sponsors pulling out

Identified sponsors might not want to contribute

Moderate

Cancellation of the project or delay of the start date

Project Manager and Project Coordinato r Sponsor and client Contractor

3.

Change of scope Extension of Production & Installation period

Lack of funds

High

Poor quality and late completion Increase cost and sponsors might pull out

4.

Rain and strike

High

5.

Quality level of deliverables not satisfactory Late delivery of resources

Poor service delivery by the contractor

Moderate

Project not completed or great amount of defects in the future Slows down the work pace

Project Manager

6.

Supplier having lots of clients to deal with

Moderate

Contractor

7.

Shortage of labor and poor quality of resources Targets And dates not achieved

Labor not well trained and quality suppliers not found in the area

Moderate

Conflict in the whole project and result in delay

Offer high wage for quality work

Contractor

8.

Constraints in the project

Moderate

Increase cost and construction period

Time management

Project manager and project team Project manager and project team

9.

Escalation of the estimated expenditure

Increase in prices and delays

Moderate

Lack of funds to continue with the project

Cost Management and get more sponsor

25

11. Change Management

Define how changes to the project scope will be executed Formal change control is required for all of the following: Scope Change Schedule changes Technical Specification Changes Training Changes All changes require collaboration and buy in via the project sponsors signature prior to implementation of the changes.

(1) Improvement of Process Change Management

Internal Stakeholders have a solid understanding of why change is happening. Internal Stakeholders engage in both the solution and the change. Training is used to build knowledge after Internal Stakeholders have made the personal decision to support the change. Resistance is identified and dealt with early in the process. Senior leaders demonstrate their own and the organization's commitment to the change. Communications are segmented and customized for different audiences, answering the questions that they care about. Momentum is built throughout different areas and levels within the organization. Changes are less painful to the organization and to the employees. A coalition of support among senior leaders and managers creates momentum throughout the organization. Probability of meeting project objectives is increased.

(2) Issues of Process Change Management Losing management control of business functions that may no longer be able to control operations and deliverables of activities. Not understanding the culture of company can allow the rumor mill leaders to circulate incorrect or corrupting information about the change. Also, stakeholders and customers need to be kept informed and brought in on the change. If not, they make also resist the change, and clients may choose to go through another company. A bad change management plan can also negatively affect an organization. Change management is just that managing change. And, without a plan to deal with every step of the change (before, during and after), the strategy could fail at any point in time, possibly bringing down the entire company.

26

12. Project Documentation

Specifically, project documentation focuses on guiding the project team and readers (Customers) to: Define the aim and background of the project. Identify key deliverables and dates. Document the technical parameters and technologies to be used. Address the manner in which items will be built or deployed. Assess items such as quality, scope, resources, risk, training, and cost. Document any back-out or contingencies that could occur. Communicate progress and update stakeholders.

Type of Documentations: 1. Project Documentation 2. Team Documentation 3. Test Documentation 4. System Documentation 5. User Documentation

Project Documentation
Describes the process of creating product Submitted to product owner and approval obtained Long life-span, relevant throughout the project life cycle Common formats: .doc and .pdf , such as Project proposal, Project Plan etc.

Team Documentation
Refers to communication between team Short relevancy and life-span Usually useful for quick changes E-mail is the most frequently used medium Common formats: .doc, .xls , such as Project Status Report, Meeting Minutes etc

27

Test Documentation
Refers to documents used in testing and quality assurance processes Usually created by QA/QE Usually not shared with end-user, unless specifically required Common formats: .doc, .xls, .pdf , such as Test Procedure, Test Report etc.

System Documentation
Highly technical in nature Usually created by programmers Tools like Sandcastle help in automation Useful in maintenance, bug fixes and future enhancements of the product Long life-span, often beyond that of the project Common formats: .doc, .chm, webhelp , such as Database Documentation, API Documentation etc.

User Documentation
Most visible part of documentation Should be easy-to-understand, yet precise Needs to be revised and kept up-to-the date to avoid being obsolete Formats vary greatly: .doc, .pdf, .chm, webhelp , such as User Manual, Troubleshooting Guide, Preventive Maintenance Manual etc.

28

Reference:
http://www.tutorialspoint.com/management_concepts/staffing_management_plan.htm http://portal.hud.gov/hudportal/documents/huddoc?id=staff-mgt-ins.pdf http://www.mymanagementguide.com/guidelines/project-management/hr-management/projectteam-developing/ http://my.safaribooksonline.com/book/software-engineering-and-development/projectmanagement/9780814408797/managing-the-projectteam/ch10#X2ludGVybmFsX0ZsYXNoUmVhZGVyP3htbGlkPTk3ODA4MTQ0MDg3OTcvNzg= Martin Stevens (2002). Project Management Pathways. Association for Project Management. APM Publishing Limited, 2002 ISBN 1-903494-01-X p.xxii Morgen Witzel (2003). Fi y key gures in management. Routledge, 2003. ISBN 0-415-36977-0. p. 96101. http://www.careersinsupplychain.org/what-is-scm/importance.asp http://www.pmvista.com/project-characteristics/ http://www.buzzle.com/articles/project-management-concepts.html http://www.halcyonoffshore.com/

29