Here is what I did differently:

1) I went through the test 3 times.

2) On pass 1, I answered all the easy questions, or questions I was 100% sure of.

3) On pass 2, I answered all of the questions that I was 50/50 on. Keep in mind I recorded which problems were 50/50 on pass 1, but didn’t dwell on the problem.

4) On pass 3, I answered all of the questions I had no clue on. At this point I was over 80% done and still had half the time left meaning I could allocate more of my time to the harder questions.

5) Don’t be afraid to skip a problem to come back to it later. The hint or memory trigger you need might be further in the test.

6) Note on #5, if the problem you are skipping is a group of problems or connected problems, skip all connected problems. It is a good idea to jump around.

7) On the written exam, if your English isn’t good or you know you will be short on time, don’t do the rough draft. Do a quick outline and go straight to the final copy. If you do a rough draft, you better be finished with it with at least 30 minutes to spare as you will find yourself short on time to create the final copy.

Morale of the story: Take the test smarter, not harder!

For subcontractor work, I use start/finish method because it is short duration and we pay after work complete. For internal labor, I also use the same method, start/finish, since it is small work and short duration. But for project management, I use the level of effort method. While the network consulting work, I use incremental milestone which base on cost ratio.

I also work on the owner perspective by using contracting amount as budget and PV as your suggestion. Now we have PV plot in S-Curve both owner and contractor point of view. It look great I think, at least we have cash in before cash out in almost period in the project. Let’s see how the graph will be after having some progress in next reporting period. 

The problems I found during starting this implementation are:
- Schedule is not in place, some WBS can get in detail but some WBS is only rough estimation.
- Project manger have little knowledge about EVM and its application as well as how to analyze it. I try to make this graph as easier for project manager to get picture but he don’t have time to look at it.

What I will try to do next is I will try to give some knowledge through this EVM report. In order to make everyone understand the importance of EVM and get rid of actual cost/budget report which consume much more time both preparing report and reviewing. However, I did not make it in SAP because I want it to be simple and make myself understand how the data go around so I put it in excel.

Finally, I ‘m waiting to see how the result will be and how I can interpret it. I saw the benchmark exam #2 question is the same situation where I’m in. Now I ‘m waiting to see the answers how it should be caculated.

The reason why the work attempted has increased is a combination of poor planning on our part with the fact that we couldn’t see with any accuracy the amount of work that we need to do to finish the project. As well we were unable to foresee scope creep caused by the customer. Due to the multiple final exams and exam checklists which are normally done at the end with the Owner’s normal testing schedule have consumed all the time that each team member allocated to doing problems. If this was a project that was in a real work environment I would have refused to do any of the additional scope creep work (any midterm exam beyond 1 and any checklists) without a change order from the customer and the addition of more resources. However, because this project was designed with the best intentions of all the project staff and for them to learn, I have let the work build up so the team can attempt to do the work and learn from it.

I was confident that the team can work together to overcome, but once the deadline passes most of the team doesn’t want to go backward to finish the work.

The lesson I learned from this is no one wants to do that much work, if any. They are fantastic at starting, lacking the follow through, and missing the communication and ability to ask questions.

I am sure I have a few more lessons to learns from the owner when he finds out about the poor performance and the lack of will to continue by an overwhelming majority of the project.

I have revisited the chapter on cost elements in order to create a checklist for the project as part of the exercise for bid project. First, need to understand the definitions of direct costs and indirect costs.

 Direct costs – Direct costs are those resources that are expended solely to complete the activity or asset. Or,

(1) In construction, cost of installed equipment, material and labor directly involved in the physical construction of the permanent facility;

(2) In manufacturing, service and other non-construction industries, the portion of operating costs that is generally assignable to a specific product or process area. (10S-90)

Indirect costs – Indirect costs are those resources that need to be expended to support the activity or asset but that are also associated with other activities and assets.

Contingency – As is true with a capital cost estimate, any operating or manufacturing cost estimate should include a contingency allowance to account for those costs that cannot readily be determined or defined or that are too small to estimate individually but may be significant in the aggregate. The contingency allowance applies both to direct and indirect costs and ranges from 1 to 5 percent (and more in some cases), depending upon the uncertainty in the data used to prepare the estimate and the risk associated with the venture. (S&K)

Overhead Costs — these may also fall into two categories:

Home Office Overhead — the fixed costs and expenses incurred in this course of doing business, regardless of the amount of work completed or contracts received. Home office overhead includes items such as home office rent or lease, utilities, communications equipment (telephones and fax machines), advertising, salaries of home office employees (e.g., executives, estimators, and support staff), donations, legal costs, and accounting expense. In other words, home office overhead represents expenses that are not chargeable to any specific project. One method of calculating home office overhead is to use a percentage method in which the percentage is the ratio of a specific project’s total cost to the entire company/ division’s total projects’ costs. (S&K)

Job Site Overhead — Provisions contained in a contract, purchase order, or specification that are not specific to the particular transaction but which apply to all transactions.

Usually, these items cannot be charged to a specific element of work. They include, for example, supervision, temporary facilities, office trailers, toilets, utilities, transportation, testing, permits, photographs, small tools, and clean-up and similar items. It also may include the costs of bonds and insurance associated with the particular project. (S&K)

Having understood the cost definition, this will enable the creation of the checklist based on activities, materials and resources needed to implement the project and also WBS for the project.

Examples of Direct costs: Vaccines, syringes, medical staff and permit, site survey

Examples of Indirect costs: Electricity and transportation, storage and etc.

Other costs that need to put into consideration are the economic costs such as exchange rate, taxes and also inflation.

For this bid exercise, I have split the task of creating the WBS and bid checklist to two team member which can support each other where the checklist can be derived from the WBS.

Risk Management is an overall process of managing risk includes from identification, assess and analyze, risk response and mitigate and control.

In my company the risk process for capital project, is start by populating a risk concern from project team in a risk register. The risks and consequences are captured from multi discipline team via risk identification workshop. Then those risks will individually assess and prioritize using a company’s 6 x 6 risk matrix (likelihood x consequences). Simply this process is a technical risk assessment.

The risks which populated in the register, some captures at the early stage (phase-1), phase-2 and phase-3, phase 4, and 5.

As per noted in the company’s lesson learned database, the risk process, currently is managed by event not a continual approach, it is  means that the review and update process is not continuously manage through the whole project life cycles.

Because of that, the risks which analyzed in the earlier phase are not updated somehow at the next phase. And as a result, the likelihood and consequences is not reflecting the latest condition. The likelihood or consequence level might be changed, it could become more severe of less severe, depend on what the result of defined uncertainty (more study/research, will reduce uncertainty). The mature the study/ research we done at phase 3, the clearer the condition reflect our risk.

The top risks will capture as a result of prioritizing the risk level from the risk register. The higher risk level, is become the tops list risk. The top list risk then will quantify in schedule or cost impact (upside/downside) and elaborate in the Monte Carlo analysis for cost and schedule risk assessment.

The bottom line is the result of the risk cost and schedule risk assessment will use by management in decision making process-final investment decision, in term of the project and level of contingency they will accept.

Not performing a continuously approach in managing risk information; will drive us capturing “wrong” top’s risks in the cost and schedule risk assessment and will end up with a deviated result . And at the end this “wrongs“approach management of risks, will cause a wrong decision made by our management.

Rgrds, Farid

Reading on resources loading and leveling realize me the important to develop cumulative resource curves in earlier stage (as this curves were not provided) which is drawn for the early schedules and late schedule curve. It provides some insight into the reasonableness of plan where is shown on the location of the cumulative schedule startplan curve against the cumulative early/late start schedule curves. Further, the resource loading and leveling the schedule will provide a control of project progress and its status in how ensuring that the necessary resources will be available and used efficiently.

Humphrey’s explains the basis for resources curve as follows:

• The “Early start curve” defines what the resources requirement would be if all activities started on their earliest possible date.
• The “Late start curve” defines what the resource requirement would be if all activities started on their latest possible date (without delaying project completion)
• The “Scheduled start curve” defines what the resources requirement would be if all activities started exactly as planned as planned on the resource leveled curve.

Cummulative S-Curve – Mine road project

Looking on the schedule start curve (which was developed by PERT method) against the early and late start curve shows that at the beginning the schedule start curve is closer to the late start curve then move gradually closer to the early start curve. It is explained that the project was assumed to contract out by using small equipments where there is no availability heavy equipment own by contractor on site. Otherwise, the early start curve was created by considering an opportunity to allocate PT Inco heavy equipments to remove the majority overburden material instead of contract out by small fleet. We could see how the actual curve is just close with the early start curve as result of allocation heavy equipment to do the work. This strategy was considered as a result of the risk mitigation plan which was developed in initial stage and included my research on paper to eliminate the high risk on using small fleet surround heavy equipments in mine active area. Then, the schedule start curve is gradually moved up to the early start curve till date completion, shows an overly optimistic schedule start on week #29 and is likely to have many dates that are potentially missed. I think the schedule curve should be fine as it is not too far from the center of the envelope defined by the early and late start curve except starting week#29 where is most activities is close to complete and remain little activities at the end which might be not much flexibility to chase up the schedule.

As the schedule start curve is not too close to the late start curve, it was expected that it will take very little slip before the scheduled curve will shift to the right and cross the late curve. Unfortunately, 4 weeks delayed results actual curve (ACWP) is just close with the late start curve which indicates the project completion date is in serious jeopardy and have contributes up to two weeks delayed estimated date completion and $46,000 over budget based on EAC Fleming/Koppleman. This condition will be worst when mine operation ask to another weeks to continue working at the location area which affect another delayed to be continue. I have to set up meeting with the sponsor in early next week to explain and urge sponsor comitment to support this project

There was a small discussion amongst the Project team to approach the Account team about the possibility to have a fixed price contract instead for the new orders. Before the discussion, I’ve prepared myself with the reference materials of contract type and its relation towards owner and contractor risk. Just a simple simulation that I showed to the Project Managers that having a Fixed Price Contract is even riskier for the contractors rather than having a Cost plus Contract. Some of the reasons that I mentioned are:

1. In our project, we never have a clear defined scope from our clients, while using a Fixed Price Contract requires =>85% scope definition level. This means we will never get the chance to have Early Start, which we usually did, before the scope is definite.
2. We will need to solve our own problems and not being able to charge for any additional works outside the scope through Contract Change Request (where we have A LOT of them now!). The financial risk would be very high.
3. We might not be able to serve the best quality because of the financial and schedule restrictions that we have.
4. On the other hand, the owner might have a problem with their asset management where the actual cost of their assets is not reflected and hence leads to tax issue.

As I am not in a position to make decision, I’m just trying to give an insight to the Project Managers before stepping further upfront. Surely this information will add to their learning curve in making strategic decision.

I know my role. I know the role of a Program Manager.

A program manager is in the leadership position over project managers. When a project manager needs resources or support they turn to the program manager. It is the project manager’s responsibility to assign work and to get the project done, not the program manager. It is the program manager’s responsibility to work with the customer as a central focal point of communication.

As a courtesy to the team and the project manager to get the ball rolling, I will assist the project manager and help them find resources for them to complete their project (this is why I call you instead of the project manager). In the end, the responsibility for finishing the project belongs to the project manager.

I have heard a lot of, “do you know what you volunteered for?” The answer is yes. The only reason why you can say no is this isn’t your job, this is a project to help you learn. If you choose to say no, you cheat yourself. If you don’t communicate the fact you say no, it hurts the entire team.

Some of you haven’t noticed, but some of the projects are in the brink of failing! I am doing my best to keep it together, but the work can’t be done over and over by the same few people. As a program manager, have you noticed that I let it fail a little bit to try to get the team back on track?  I have backed off to give control to the project manager. I have discussed this with the project managers and go with their recommendations. The project manager, needs to get it back on track. The project manager WILL NOT do all the work themselves! Don’t think because someone volunteered for a position of leadership that means they volunteered for all the work, they just volunteered to ensure it gets done.

So you ask me what did I volunteer for. Yes, I do know what I volunteered for. I can also tell you what I didn’t volunteer for, your job!

Even when we get down to crunch time and all the work comes down, people still feel compelled to volunteer knowing they can’t do it. Is it that they want the team to fail or is it that their ego is so confident that the work will be done by itself? It is amazing how hard it is to say “No, I can’t do it, find someone else.” After that, the problem always is finding someone else.

I know if I had more to do in my life at this moment, I’d never have volunteered for this responsibility to this team. I knew at the beginning the potential was high that I’d be able to fulfill my dedication to the team from the beginning and I don’t see that changing between now and the end of the class.

I have to admit, at this point, the team is more open to just saying no, and as a result we find someone to perform compared to the beginning of the project. Granted, we are a long way off from completing everything, and it is going to be an uphill battle to get the work done. I think if each individual on the team didn’t over extend themselves and stick to the original plan, the project control plan and the agreements we signed in the beginning, I think we will be fine for most of the deliverables.

The question of implementing EVM in our company has always been at the back of my mind ever since I finished the first session of the training back in September 2009. I am particularly concerned with the work breakdown and actual work done recognition on delivery which took place after order processing and logistics of HW & SW. I cross-checked this matter with the paper written by Budi on delivery recognition with incremental milestone as well as the WBS created by Andi for bid project particularly on delivery of supplies. I concluded that the delivery can be considered as completed with the cost of the deliveries (HW & SW) and effort spent as actual completion of work. While reading on the brick wall case study in Chapter 30 Humphreys & Associates, come to my realization that delivery of materials are not considered as earned value but the material used throughout the implementation. This means if we consider order processing, purchasing and logistics as one of the WBS element which contributed to EV after its completion, there are still tremendous effort needs to be spent to track the progress on installation, testing and commissioning or the systems. If not, the progress of the implementation (EV) will not be able to tell if the installations of equipment will be done according to schedule if not the Brick Wall case study scenario 1 will still happen to the project with cost and schedule overrun on effort spent on installing the wall after delivery of brick completed. I am not sure if my understanding on procurement and logistics and EVM is correct or not.

Following example retrieved from Earned Value Professional (EVP) Planning & Scheduling Professional (PSP) Certification Workshops organized by AACEI CSRA Section, 2005 to have an understanding on incremental milestone method.

I did a quick analysis on the report on team performance status on for week 15 for AACE 2010 and found that the effort spent from the current active members on questions, paper and control are much higher than planned effort as it was shown in CPI of the week was at 0.95. CPI has the great similarity to productivity

 Productivity Analysis — under the variable budget system, the cost performance index is equal to the productivity index because the quantity adjusted budget automatically accounts for quantity variations. A separate calculation of a productivity index using credit work hours is unnecessary [S&K 15.1].

 We spent more hours than what we have planned particularly on project control, papers and question and fewer hours was spent on blog posting. There are also costs booked in bid and mapping projects with no budget allocated for.

Apart from being far from the planned value, even if CPI =1 this does not mean that we are doing well. Productivity only reflects CPI of the project whereas we need to look at the SPI to determine how far we are against planned schedule. In this case by looking at the CPI, the estimation of effort could be correct however the estimation on progress is too far behind, approximately 5 weeks.

It was good to have the interactive/iterative session over e-mail on this question (13.19 Q1). Only until now that I have the time to look through all the e-mails between David, Brent, Paul and Wayan on the answer for first question. Based on the understanding on the clarification done on first question, here is my share for Q2.

Q2 is straight forward then Q1 as the logic relationships are mainly FS relationship between the predecessor(s) and the successors. As compare to Q1, this is easier to construct. The whole network takes 120 days to complete all the activities and all the activities are on critical path except Activity 4 with 10 days of float.

 Attached is my answer.

 For Q1, based on the first answer from Wayan to break up the activity to have all the activity to have FS relationship can help to verify the total duration needed for all the activities. Q1 cannot be verified by MS project as some of the activities have dual network relationship between 2 activities where the software will give an error message with these relationships. For Q2, with FS relationship can be easily constructed by MS project for verification of answer. Q1 is more complicated due to the flow of activity, with more practice should be able to overcome the clumsiness.

AACE definitely has it setup so it tests you for competency. The first section is multiple guess, which is like the appetizer before the main course. The second section where you have the problem selection where you do for or 5, is a lot like the salad where you pick at the tomato and eat the rest, the test challenges you, but you can get off the hook for not doing one of the 6 questions. If you do all six, you only get credit for the first 5. The third test, this is where your competency is put to the test. Every skill in relation to Planning and Scheduling is thrown into one very large and wide problem with a lot of information and it must be analyzed from every angle. The fourth exam, is like the dessert. Once you read it, you’ll see what direction it goes and in and how you will get it there pretty quickly. You need to write an outline! You should do a rough draft before submitting the final copy. Bring a spare writing hand. I wish I had two right hands with 30 minutes to go. By the time you are done, your head will be full and your stomach will probably be empty!

Lessons Learned:

Now for me I learned that I got several questions that have nothing to do with Planning or Scheduling, but they are more construction related. You need to take these from the perspective of a construction manager, remember AACE’s background!

When taking the test, you really need to watch the clock. On the writing section it took me a native speaker to the last-minute of my 105 minutes to be finished. This is an area you may struggle in. Be brief and to the point.

Bring a calculator!  Don’t think you can get away by using the calculator on your phone. Bring pencils, and a sharpener.

The good news is there breaks between each test which doesn’t make it as exhausting as the PMP (4 straight hours no breaks), but I guarantee if you get the credential, you will feel that you really earned it!

Parts 1, 2, and 3 are multiple guess. There was no partial credit for showing work. There was no mention of getting partial credit for showing work and my proctors confirmed that.

Make sure you have one selected answer for each answer. Having two answers on one line is automatically incorrect. So is not having one answer on a line.

Make sure the correct answer is marked correctly.

Make sure you put your answer next to the correct number.

Make sure you mark every page with the number provided on the test.

On the writing exam, write legibly! If you write like a doctor, you will fail.

Good news:

The good news is, by going through this class you will be over prepared. All those beatings that you get from your mentors supporting you is done just to get you on track with the right path to pass and give it application in the real world. It really is done for your benefit, you just need to put the time in and do the work!

As a Project Management student, I know in this stage when we will be facing  a forming stage from Tuckman’s model group of development. If we discussing about forming, we have to take a closer look about this organization. My organization has 3 different places, as we so call 3 campuses. I have to be able to represent those three places. It has 350-ish employee around this three campuses. And also has several employee grades that classify them in to classes depend on their job requirement, not educational background. The grades also differ to the benefits that they having. Represent them is one thing but to understand their needs is difficult but not impossible thing.

In this weeks, I have to produce a performing a commitee of seven, as we will work side by side to smoothen our work. Picking is easy whether they willingly or not, but finding a correct formula is difficult. Because I want to cover all bondaries that i have mentioned above. There are also my basic requirement as to easier for me when considering the right team mate, as follow:

• The person willingly to do more extra work beside their day-to-day activities and tasks.
• This person also willingly to work in team and may not bringing any personal agenda.
• Willing to learn to understand and decisive
• Cooperative and innovative

I could have find easy in this big organization but founding a someone for a volunteer job is hard especially for those who has not experience in social work organization. But I am not giving up easily, I am in the stage to producing an WBS before creating OBS. From there I can narrow down again with what I am actually need to performing the magnificent seven.

This may not have correlation to PM but as what I have stated, all daily tasks are a Project to Manage. Have a good day

Following would be the task list/split and step defined for the estimation.

 I did a quick analysis on the RFP received from customer as well as recommendation from Paul and come out with the task split as the above table for the bid project. This will be a very intensive exercise that may require huge commitment from the team member for the next 3 weeks before the submission. This will be in parallel with the benchmark exam 2 as well as other task in hand that assigned to us. I am not sure if the task split and the flow is correct, put at this point I am putting up the split for the team for kick-off on Sunday.

1. How can I monitor cost variance which is difference between EV and AC ? You said the difference will be the project margin but how can I utilize the variance analyis since EV and AC will never near each other.

2. If CV and CPI cannot be used for anlaysis then it affect to some of EAC formula which I will use for projected the cost at project end date. And also TCPI and productivity which use EV value.

During this time, best luck come to me, I have a pilot project to start on. This project still manage cost by control account in summary level of but schedule will be managed by site level. However the schedule of each site, project manager can provide me only high level because he doesn’t know exact date when he can get site access from customer.

So my plan to do on this pilot project is that, I will use the estimated COST as PV and also EV. In simultaneiously, I will also put your recommendation to use contract value as PV. Yes, this will double my work but Yes, I can see what will happen on each methodology implementation.

Unfortunately, I have not get the schedule from project manager yet. So I cannot show any S-curve on this week.

My project has set a vigorously tight net sales target as a result of accumulated pending invoices for the past several years. For some reasons it is very hard to close this project, thus causing to a very high cost overruns and high risk of gaining minus overall margin. In order to overcome these, the Operation Manager decided that all team members, both Commercial and Project team, should have the same objective to achieve this nearly impossible target.

In the meeting last Monday, where we were in the middle of discussion for the potential risks to achieve Q2 target, a surprising fact reported by the Acceptance Manager. He admitted that he was not getting maximum support from the team to reconcile the PO with the customer as they were all busy doing other tasks. Therefore the majority of reconciliation task is done by him. What a huge mistake where people do not know what the urgency and the importance is at this point of time, considering that we only got 4 weeks left.

Applying the lessons learned from my AACE training, the team is directed to focus on the most urgent and important task which is the net sales target. This means that all team effort should be poured to any assignments that will support in achieving the target, whilst putting the other tasks to the second priority. The result was something like this:

1. Urgent and Important
   • Customer PO reconciliation
   • Customer acceptance document
   • Inspection report approval
2. Important but not urgent
   • Physical progress target for network improvement
   • Financial figure clearance in the SAP system
   • Difficult cluster reconciliation (prioritize the easiest cluster first)

By doing this, the team will be able to work in a more structured workflow rather than being overwhelmed doing unnecessary things which ended up hitting the wrong target.

We conducted feasibility studies with all the projects to gain inputs to simplify the project structure in SAP, at the same time still being able to accommodate their needs. While simplifying the structure will certainly help for project controllers for maintenance, it has drawback to setting up the simplified structure in the system. It will take longer time from the normal lead time which takes 7 days in maximum to set-up.

Based on the simulation and assumptions, we came out with this set of numbers to set-up the new structure into the system: Best case = 4 days; Most Likely = 8 days; Worst Case = 10 days.

Knowing the fact that having the project set-up longer than normal duration is not acceptable by the project managers (as it will constraint them to start the project), we need to have a strategically calculated lead time to be able to defend our position.

Mean = (4 days + (4 x 8 days) + 10 days) / 6 = 7.6 days = 8 days

Standard deviation = (10 – 4) / 6 = 1 day

The number that will be presented to the project managers will be 10 days with approximately 90% confidence level. Hopefully the proposal will be accepted and the new simplified structure can be implemented very soon.

The attendee in the meeting it come from multidiscipline (representative Drilling& completion, facilities, contract and procurement, assurance etc). So it is really DELPHI Technique process as per describe in Dr,PDG handout.

The process start at 9.00AM with Schedule risk and continue with cost risk assessment. I see that the facilitator create the PDM and CPM in the excel file, with defined ES, EF, LS,LF include the total float.

The sessions start with asking the team opinion to the duration of each activity by the min (best case) and the max (the worst case) trough all activities. The same process runs with the same sequence for the cost estimate. Once all info capture, the Monte Carlo run by a Chrystal Ball program, then come with the result.

The interesting issue I want to share here, is as per we know (Dr.PDG handout, PERT calculation) the software will run Monte Carlo random then calculate the PERTH. PETH calculation is back with normal distribution of activities and total duration. At that time our “base schedule” and “base estimate” is fall in about P20. Then contingency is defined in about the slag between the P50 and the base.

At that time one of management leader want to see the skew type distribution shown in P10, P50 and P90. The question in my head” why he want to see the skew distribution” ?

I not remember the number precisely, but what I see the P90 from Skew Dist is more conservative that the P90 come from Normal Dist ( far to right side). When the P10 is almost the same.

I start to think and have a short discussion at the break time,then  and get explanation that the issue is why the lead management want to see the skew because he want to see the worst possible case will happen. The Skew will support that need since it conservative in P90 (far to right side). I then could understand since my company is risk averse type company, so he want to know the bad-bad scenario will possibly happen.

The lesson here, that the type of distribution, the Normal or Skew will give different presentation. Then the company could select with the one they want to go for decision. The decision is company call, but the main point of this process is all risk and consequence is elaborate in defining schedule and cost estimate.

As mention above our base schedule and estimate fall at P20 which is within the range of Phase-2 development stage- Generate and Select Alternative(s). Which all within the Class II estimate ranges.

Rgdrs, Farid

Although we had good progress schedule till week#17 by allocate PT Inco heavy equipments to remove all overburden material instead of contract out by small fleet, this delayed of tender and document contract approval has contributed the project schedule slippage for 2 weeks. In addition a risk which is identified as unsafe operation when small equipments (contractor) work adjacent location with PTI heavy equipment is resulted for additional 2 weeks prior continuing road construction. SPI =0.85(<1) and TF < 1 indicate that the total value of work is felled behind 15% than the work was planning and behind schedule on critical path which affect the project completion date delayed on 7 days. EAC P90 is created using PERT formula combined on three EAC (i.e.: realistic, accurate and optimistic) and forecasted slightly over budget ($14,000). Otherwise when I consider current CPI and SPI, EAC fleming/koppleman shows the project will be over run $69,000. 

Note : the value is applied by factors and represented value only 

I look the trend analysis graph of SPI and CPI shows that the plot is decreasing from starting of the project and now shift to behind schedule and just start over budget as result of 4 weeks delayed. I think it is required to initiate an analysis of each activity of account level instead of summary level, define and eliminate any potential risk of the remaining works by implement the risk management plan that was previously developed. Especially attention should be focused on those remaining risk which may have a significant impact on the project.

Since the project behind schedule on critical path, the CPM is not sufficient to conclude what effort on scheduling process need to accelerate. Humphreys mentioned that the critical path is driven by activity durations and durations are largely determined by the amount of resources available. It brings me to work on resources loading and leveling the schedule next week. In addition, the benchmark exam which is currently I am working on it introduce me how to develop as built plan in regard current status of project.

Allow me to elaborate more and classify more, and you may say that this is my monthly WBS, as follow:
Office loads:

• moving to new layout
• arranging the projects archive folders to temporary spot.
• managing staffs that need to move out as well.

Project management loads:

• maintain the running projects for their schedule, material, quality and budget, testing requirments, going on site and desk, back and forth.
• Set up tender drawings and requirement for up coming projects.
• Evaluating facilities project estimation

From S&K, page 14.4-14.5, the productivity index is calculated by

equation 9, page 14-5:
Credit Workhours (CWH) = (budget unit rate) x (actual quantity)                                                   
equation 10, page 14-5:
Productivity Index (PI)   = (sum of Credit Workhours) / (Sum of Actual Workhours)            

I try to apply with Transformer project by putting total quantity equal to 100% as percentage of complettion.
So Budget unit rate is BAC/100 while Actual workhours is ACWP. And below is the (cumulative) Productivity Profile along project period. Refer to Figure 6.4 -  Productivity profile. The orange line is plan productivity and blue line is actual productivity. 

From equation 9 and 10, the greather the productivity index means More efficiency of production. From the plotted graph, we can see that our actual productivity index is much better than plan. Even its trend is most likely to be less but it still better than plan.

I think this chart can give how much productivity of resource in the project but it cannot tell project manager about schedule progress, whether ahead of schedule or behind schedule or delay. Because in this case, the percentage of completion is only 40% and there are only 5 weeks to accomplish remaining 60% which is quite impossible. Finally, I agree to add this graph to project report in order to analyze resource productivity.

However the physical completion is related to productivity but I think the percentage of comletion of Transformer team is set inproperly. Because it use weighted milestone and give percentage by cost proportion rather than quantity. The quantity in this case are number of question, number of mapping process and number of word in paper work. This is much more simple methodology to measure work accomplishment.

For no reporting, I can’t accurately assess what they do because I don’t see what they do and I rely solely based on their reports. Their reports need to be matched against what they do. Based on this I will ask Project Controls to work with the Project Managers to spot check people based on the reports.

For the ambiguity on the reporting, apparently it is too complex to get project controls to issue a corrected timesheet, but the issue was addressed on how to report in the meetings in via an email. Whether it was followed or if there is still confusion would have to be addressed by the Project Manager and Project Controls to see if there is accurate reporting.

I know I can’t force this upon project or upon companies unless I am the example and work on it from the ground up. For this week’s meeting I will try something new and manage the meeting from the schedule and not from the most critical pending items in each section. I will write the meeting agenda by the project. I hope this change can change the perspective of the project.

In hind sight I should have focused more on getting the team to update the risk register, focus on documenting lessons learned, and work more diligently with project controls. I would impose it more now, but I don’t want to overload the team so close to the end. In the beginning it was difficult because I didn’t have buy-in from all members of the team causing a long delay of non-performance and that consumed all of the total float.

Hopefully before this project is done I can change from a Crisis Manager to Program Manager!

That is why I have been so frustrated since the beginning because I feel like I am always chasing non-performers down to do their work. The non-performers will find it difficult to buy into the work. I have a strong feeling that if they didn’t actually pay for the test, they probably wouldn’t have cared much about the rest of the performing team.

If there is communication, that at least says, I care enough about the team and the tasks, but you need to find a workaround at this point to get the task, but I will still support you in the future.

Without reciprocation in terms of communication and support, I have no reason to help anyone and would just go it alone. This is why we have the team agreement and it is being enforced.

Pick a topic on something that you are familiar with in your field. Don’t invent anything new, don’t reinvent the wheel. I assure you my triangular and square designs will give Michelin a run for its money.

The best way to see this is you are writing a 15 page paper. If English isn’t your first language, just do a 15 page paper in your native language and get someone to translate it.

The appropriate scope is to cover things from a Project Management perspective combined with the AACEI perspective. Being a PMP my perspective is tainted and I am forcing myself to unlearn things to learn them properly for the AACEI exams.

Scope creep is avoided by being proactive. The sooner you do it, the sooner it is done. No worries about changes to the budget or the schedule. You can sit on your total float all the way to the end.

I would recommend that you actually get an approved topic. Make sure it is something you can actually deliver on. Next you need to research. Research isn’t Wikipedia or a google search. If you want AACE to give you any respect, make sure it is a big player that is your source. Can’t go wrong with DOD, DCMA, or GAO sources. Once you have your research prepped, you need to outline. If your outline is horrible, start over. Don’t be like me and force your outline to work. It is like a shoe, if it fits wear it, if not, get a bigger shoe. As you write your paper, actually cite your sources. I cited my footnotes simultaneously with the reference page. It was a lot of back and forth, but  I would pass a viper check. Do the introduction first, the body, conclusion, and the abstract last. The abstract must be last. You can actually take lines from the introduction, body, or conclusion and put it into your abstract and the words are counted twice!

If English is your first language, be careful if you proof read someone’s paper. Now I am glad I helped everyone, but I sacrificed all of my days in the beginning helping other people proof read their papers. That was incredibly time-consuming, and the amount of grammatical errors that pop up for a non native speaker is astonishing in a 15 page paper. I would like to think that if I didn’t help everyone I would have got my paper in, instead of having to wait until for the next texting session because my paper isn’t of quality. The point is, I misallocated my time here, and I only have myself to blame.

As far as applied skills go, on the technical side, I realized I can’t write a technical paper to save my life. Being a native speaker my English is great, but due to taking speech classes, I am long-winded and can’t shut up and get to the point. Research should be collected from the a professional source, not just anything you find on a search engine.

If I could do it all over again, I wouldn’t help anyone with their grammar until my paper was finished. I could have also managed my time better, but other people could have done the same so I didn’t have to chase them down.

I think AACE consider papers to be critical because it shows competency. Compare it with the PMP exam. It is multiple guess and you leave with a piece of paper that still means you don’t have competency, but you understand the basics. AACE prides themselves on having competent people obtain their credentials where PMI prides themselves on you paying their membership and examination fees.

I C social networking communications getting shorter. As a result I C a lot of us communicate as we send txt messages which can be short and to the point or very unprofessional.

Sharing the  lesson that I learn:

Selecting topic for paper : It took me too long to decide what topic to go with.  So many good topics and examples that was shared by Paul and found while searching on the web, finally I decided on a topic that seems interesting to me but in the end I when I start to research and build the story, it seems to be not that straight forward to apply tools and technique and to come out with the expect deliverable. If I were to choose again, I would choose a topic that I’m familiar with or at least have some idea of.  Another key note was I started late, instead of starting 2-3 months before submission date, I only start 2-3 weeks before. 

Research : Spent too much time in reading and gathering information on the topic as I’m totally not familiar with it.  And downloaded too much document, white paper and references.  Since I started late, I simply do not have that much time to digest all the information I gathered.

Writing : No planned structure and aim of what to write.  Wrote close to five thousand words but in the end I find it not telling the story that I intend it to say.  Did try to re-structure the whole document after realising there is a template to follow instead of re-inventing the wheel, but time simply is not enough.

Cited from wikipedia, Strategy refers to a plan of action designed to achieve a particular goal.  And corellation to a game theory, a strategy refers to one of the options that a player can choose. That is, every player in a non-cooperative game has a set of possible strategies, and must choose one of the choices.(http://en.wikipedia.org/wiki/Strategy). Where the player has set the win-win solutions, knows thier risk of losing and how big of losing. Are they accept of the losing portion as long as big picture (aim) achieved. So in strategy, you already know your risk analysis assessment.

How about tactics or tactical, cited from wikipedia also and correlate to chess game (a game of true analytic scheme), a tactic refers to a short sequence of moves which limits the opponent’s options and may result in tangible gain. Tactics are usually contrasted with strategy, in which advantages take longer to be realized, and the opponent is less constrained in responding. (http://en.wikipedia.org/wiki/Chess_tactics)

As you can see, strategic is more deeper in planning and risk assessment. When all possibly case (best case, more likely and worst case scenarios) has already determine.

That is why in my previous blog posting, I stated that my strategy was wrong, in which that I thought (in the worst case scenarios) that IF I did not join the distance learning group from day one, I cannot join them in what ever phase they have. BUT on the contrary, we still CAN join the distance learning group eventhough the bus driver has drop off all the tourists that have not done their assignments, and can pick up the hitch hiker that have addequate papers and documents. If so, maybe the tourists that has been drop off if they have the documents can join again to the bus, is it?

Nevertheless, this is the learning process for me that every thing can be negotiate, that is why 90% of PM has to be able to communicate and a good mediator.

Good night, this is the night of 2010 champion league final, may all questtocce team mates become the true CHAMPION.

One I observe on my daily life, the main reasons are a lot of distractions, loose focus and high self pressure. A lot of distractions are come from situation in Bangkok, this make me nervous and worry what’s going on. So I frequently check news from internet, twitter and facebook. Second reason is about pressure that I have created to myself about this learning thing. I make reading schedule for myself to cope with revise project schedule. I miss many chapters and I can’t catch up. Moreover, I got supplemental task in last week, next week is benchmark exam and week after that is Bid, Oh my god! I feel guilty every time that I try to relax by watching TV, play game or even talking to my friend. I don’t want to give up, I don’t want to throw away what I have done and I want to pass it!

I can’t really concentrate on reading and other tasks. I have to shut down myself and turn to read dharma book. You may laugh at me but it’s true. It teaches us to always aware of what we are doing, try to OBSERVE what’s happen to our mind then react later. Nowadays, we have many things distract and I mostly react immediately. I think this make me can’t focus. I hope this could make me get back to normal stage and able to produce work as usual.

One more thing about 140 characters that is allowed to put on social network, that you have mentioned, I think it is beneficial to the readers like the precise heading news on newspaper. Even though sometimes grammar is neglected but the key message still contains convey to the reader. So it is better to get to the point rather than blah blah blah which wasting time to read without any additional value.

This week, in Thailand faced the serious situation. Our office was closed but still need to work from home. So I have more time to focus rather than previous weeks.

This week we got supplemental assignment about PSP questions to be answered. Since I have to assess myself whether how much knowledge I can recognize and apply to use. I wouldn’t lie myself that I could not remember everything that I read. Most of the questions seem to be familiar for me but I’m not sure whether I can answer it with precise wording, some of them might have to guess. And some of them I never seen it before.

One question is about Constructive Acceleration, frankly speaking that I‘ve have heard it before. Its definition is Owner’s action or inaction in absence of a specific direction to accelerate, that results in the contractor accelerating its work to maintain scheduled completion dates. (Citation: Certification Study Guide, Cost Engineering Terminology, page 20) I don’t know whether the absence of the owner inaction is claimable. In my organization, we have the contract management unit which takes care about contract. This is very important when we deal with government account, delivery date always stated in the contract. So this contract management unit will record the relevance cause that concern to project delivery and issue letter to government to be acknowledged. This is because once we face unforeseen event that make project cannot delivery on time then we can officially claim in order to avoid late penalty.

But for the other accounts, we have not handled this kind of record in official. One reason I think because of no late penalty cause stated in the contract. However, the delivery dates have been committed with customer since the project planning phase. Our practice is that when the delay occurs, we will point out to customer and make it explicit in the customer meeting. And yes, we documented in Minutes of Meeting in order to be evidence later.

I think both handling method is good but it is not in the structure way. The core area of this is about schedule. If we have committed schedule with customer, we have to use this as baseline and update progress compare to it. If there is any substantial cause of delay from customer or contractor, it will be obvious to all parties and become unavoidable evidence.

Why I said the previous practices are not the structure way, because some project managers (sometime me myself) do not understand the importance of scheduling. Some does not produce the proper schedule (no sequencing, no resource loading) and some keep it alone. Once some activity delay occurs, project manager cannot foresee total project schedule slippage.

Dr.Paul, Have you comment on my last weekly blog? And also reply on the previous one about EVM?

 Considering what leadership used, I considered to adopt theory X includes assumptions the team has an inherent dislike and avoid of work if possible, must be controlled or threatened punishment toward organizational objectives, prefers to be directed, wishes to avoid responsibility and control by externally imposed. This assumption was made considering current team work condition which is still on lower commitment and lower team work habit level.

While in term of time pressure to complete 150 questions, and office work loads, be honest that I only able to apply management role as one of four key role leader should be (facilitate, coaching and participate)

Summary management activities include giving and establishing clearly direction by specific instruction and requirement step by step in each intermediate milestone accomplished, shared team responsibility by clearly task assignments each individual team, maintain and tracking schedule progress.

Some constraint defined among the team which is not motivated:

-         Low motivation of  team work

-         Health issues due to bad weather this month

-         Office work loads and priority

-         Country risk In Thailand

-         Other personal problems

 When the team was not met the intermediate milestone target, delayed on the submission result a punishment to exclude from the team work will result a conflict on team work. Otherwise, I put stress to the team to the punishment on the first intermediate milestone for each individual working to complete 8 assignment questions as this stage would be critical to see how many of us will motivate to work. I don’t have an idea how much each individual motivated for this task and this work will accomplished dependent whom ability and effort to work together and actively contribute the process to accomplish the work.  As a leader needs to establish the team work environment, I’d like to work with who team able to show his/her commitment and effort instead of the others who are not motivated. Therefore, I keep applying a punishment in this first milestone date to screen in which team is motivated and then continue to work with the selection team who is trust to perform the team work.

 The learning point that I get is a leader shall establish direction, communicate this direction to others, and motivated people to achieve. Also to be effective the leader must have decision making ability including the authority to direct team activities, has overall responsibility, and authority for the success of the group. goals and objectives. But the success of the team is dependent on its ability to work together to contribute to the overall project objectives.   As Mc Kinsey finding strategy on 3 Key Success Indicator : direction-meaningful vision, performance culture based on trust and accountability clear goals and authority to meet them.

Reference :

Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Management Fundamentals, chapter 22, Dr. Ginger Levin

 When I took this assignment to manage the supplemental task assignment, the first question is how motivate all team members have contribution in the team work. As motivation of project team members is one of the most challenging tasks and being critical to address individual commitment issues as well as team work issues. I refresh my reading in Skill Knowledge, chapter 22 on week#08 on some theories to motivate the team.  There are some theories are relevant with my assumption used to motivate the team i.e:

 Drive theory gives a tension that cause the individual to take action to reduce the level of tension to achieve equilibrium or balance. It was done by giving straight forward of target and giving a tension to meet each intermediate milestone to ensure that the end milestone accomplished. For this purpose, there are two intermediate milestones was developed i.e. working on quantity by 8 questions/individual and then working on quality.  Giving intermediate milestone and requirement evidence for each team to report each milestone have advantage for team leader to do a checking instead of waiting for final report at the end of milestone which contents a risk the work unaccomplished due to there is no time left to chase up schedule. By including checking activity in the process, the circle of TCM process model based upon the PDCA management are applied.

 Fear to failure theory.  This theory approached to emphasize a punishment where the member who doesn’t give contribution and report each intermediate milestone will exclude from the team and assume to work alone to complete the 150 questions assignment.  However, this method is suggested to not frequently employ which may create crisis management and lead to team dissatisfaction. And I believe it is being happened if this theory will maintain to continue. However, this theory should be employed only in unusual circumstances, such as if a project is headed for crisis and immeditaely action is required.

 Theory of needs ,  explain to the team an advantage for successfully working on 150 questions in the team work instead of working alone. In term of this theory, based on my experience working with Indonesian labor that the leader need explain more contexts and even though it may need to explain more than once to have clear delivery contents what the need is to engage people commitment and develop their behavior to the expected level.  I’m very sorry team that I might be not have much time to apply on this theory due to It may take more time to apply in term of current my work loads, time pressure in a condition which I don’t have an idea to define where the team motivation level is.

Reference :

Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Management Fundamentals, chapter 22, Dr. Ginger Levin

1. Mistake as to value, Quality, or price.
2. Mistakes as to the terms of the contract.

It took me to see what the company manage the contract procedure to avoid the mistakes that do not make contract defective, as describe below:

With all of contract procedure develop as per mentioned in previous blog, I think the company intend to address some issues:

1. Standardize the outsourcing decision and scoping of contracts

Contract out job assessment is required to include in tender request approval to justify whether the scope of work will be effectively to conduct through contract of job instead of using in house resources. The contract sponsor must prepare definitive work packages and clearly define scope of work including : Communication/organization, environment and safety, performance standard and measurement, specific scope of work, man power skill ad equipments standard required, quality control and requirement, company and contractor responsibility, schedule and deliverables. 

 2. Standardize the tender process and contract creation. Otherwise, the current procedure of tender process affect on more delay of project execution through 3 months tender process, I would suggest to reduce the duration by :

•  Combined the process technical and commercial evaluation will reduce duration within 2 weeks.
• The confirmation meeting prior award might be combined with clarification meeting so it will shorter another 1 week.
• The requirement of 3 bidders are only required prior technical evaluation to ensure we have competitive the bid and invite at least 5 bidders.  
• To avoid the intention to award non lowest bids, the reviewer must content a team include: PM, contract engineer, project engineer and sponsor. 

 3. Improve company interaction with contractors on site, including local contractor

To ensure do not have a mistake to identify of a party and improve company interaction with communities (local contractors). The company conducts a classification of contractor category and specialization which is updated every two years. The process through Letter of Intention (LOI) to assess in which category and specialization of the contractor in term of their capability and intention. The category is defined 3 classes i.e.: Advance, Intermediate and Beginner. The last two classes are local contractor’s domain and the other include national contractor. In addition there are 60 specializations of contractors are classified.   Otherwise, 60 specializations are too specific class and create unclearly to define in which contractors invited when a contract contents more than two scopes of work specialization such: earthwork and civil structure or civil and electrical. It is practically to invite the contractor specialization in which the main scope is.

4. To ensure contractor work is performed without significant variation in schedule, cost ,quality and safety.  It is done by developed good planning and scope of work in earlier stage, promote contractor performance standard form review and identification on improvement for the contractor during the work. The result contractor performance review will keep in online system, updated based on contractors performance improvement record in next review and the last updated contractor performance will be considered to use whether the contractor will include in the next invitation of tender.

 Reference : James G. Zack, Jr. 2007. Constracting for capital Projects. Skills and Knowledge of Cost Engineering. 5^th Edition revised, chapter 25, page 25.1 – 25.7. AACEInternational.

I am bringing a new spirit and system (which a Project Management is old system, but to my organization was not). It is a big struggle from day one because my organizationis not PMO office, while according to me Project Management is applicable to every task in daily activity. Where we know the cycle from planning, scheduling, tracking and handling over, are general cycle in every organizaations.

When I have to reported to the clients, I reported as per Humphrey, Gary C. 2002. Project Management using Earned Value. But use that report created another issue for me, which is, I have to explained, trained and teach what is Earned Value, Why Earned Value, How is Earned Value is the best way to run a project management? For me, creating the report, tracking a project and progressing its performance was already hard and all I have to do again is TEACHING my organization. “How come you knew the schedule was behind?”, “How do you knew the earned value that we have achieved?”. My simple question to my PM was, “where are you in the past few months?”

Below is my Earned value analysis for my project, with my report and result.

My report to the board

To day I want to share my opinion in investment decision, and will be happy to receive any comment/input/even critic from “Questo”. At least we can learn and share a discussion.

A couple weeks ago, I was included in a project team in the stage: develop and select alternative(s).  At the end, the selection decision then drives by economic analysis.

My Company using NPV and cost benefit ratio method to select the project. This is a good event for me because in the same time I preparing my CCE exam. The NPV calculation was shown for several alternatives in P10, P50, and P90. Then final decision will drive by the Cost Benefit method. They call the cost benefit method as DPI (Discounted Profitability Index), I don’t have idea is the DPI formula we use is an in-house customize, or it come widely use, but the formula looks different with I find in EE.

The formula for DPI is, DPI = (NPV/Io) +1    ; Io= Total Investment.

And, it is not mentioned clearly but the company acceptance for DPI is above 1.2 depends on the business unit. It is mean less than 1.2 so the project is below the economical level.

Btw, the main issues interests me and I want to share or keen to get comment are:

1. The use of NPV. Why the EE textbook, not teaching us on NPV specifically? Since NPV is widely use.
2. The comparison of Cost-Benefit ratio from my company to the EE textbook.
3. Why my company accept DPI>1.2

Looking an answer for Q.1

I start browse the NPV or PV relation, and find a hint from www.accountingcoach.com.

PV definition as a value/worth of future money in the present condition discounted with interest. So I think the PV is the PW in the EE textbook, is only about different wording.

Also NPV, Net Present Value definition is the present value of the cash inflows minus the present value of the cash outflows.

The example to from accountingcoach.com:

A cash amount of $10,000 received at the end of 5 years will have a present value of $6,210. If the future amount is discounted at 10% compounded annually. It is calculate from P=$10000 (P/F, 10%, 5) =$10,000 x 0,6209 =  $6,210.

To simulate the NPV calculation, let’s assume in order to receive cash amount $10,000 in the future (as per above scenario), a cash of $5,000 will invested today.

As mention above, the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow (the investment).

Then formula is, NPV = PV cash inflow – PV cash outflow (e.g. O&M cost etc) – Investment

So, regarding to answer my own question, “why our EE textbook is not specifically teach NPV?”  I think is because of, IMPO the NPV is actually using PW type calculation to calculate the PV outflow and PV inflow (e.g. P/F, P/A, P/G etc) except the Investment. All the PVor PW is teach in EE, Chapter 5, sect 5.3, p.212.

Is there any comment, input, or critic?

PS: I will continue to discuss on cost benefit ration in the next week blog

Rgrds, Farid Maloni

 According to AACE International Recommended Practice No. 29R-03 FORENSIC SCHEDULE ANALYSIS, page 96 there are three delay events as shown on below matrix.

 Lately, I had a discussion with the project manager about the penalty of contractor delay. This is comes from one specific customer which strongly urge the contractor to follow the agreed schedule. Another issue is when the customer asking additional work to be performed by contractor to speed up the schedule but they don’t want to pay for any additional cost. This is such a dilemma for any project manager. One side, they need to keep the progress on schedule to prevent any penalty from customer but in other hand, if the customer request for additional work without additional purchase order will also makes the project suffer. This kind of situation should become project manager awareness which need strong analysis. Most of the project manager decision is to let them get penalty from the customer and refuse to provide the additional work. Why?

 Penalty cost is not covered by specific project. It is round up after the invoice send to customer per account. In the system, once we send the invoice based on customer purchase order value, the actual revenue is shown the same value as the purchase order value. BUT, the payment will be deducted after the penalty. With this scenario, there is no clear feasibility for the project manager how much the company suffers due to this penalty cost. This is one of the reasons the project manager mostly will decide that way. In the other way, if there is any additional cost such as additional material provided by the contractor, the actual cost will shown clearly in the system for that project.

 This is a very importance issue and so far I still don’t see any improvement done by the management relates to this matter. Hopefully, I can spend my time to digest more during this course and give some recommendation on the claim analysis to the management.

Recently, the discussion is running, what if the plan cost that prepared by the project manager is higher than the budget value or is it better to prepare the plan cost same as the budget value although the project manager knows that the plan cost needed is less than the budget value. This decision should be easy if the project manager have the financial knowledge. But unfortunately, most of the project manager prepare the plan cost same as the budget value with general reason which is buffer.

 The project manager awareness of financial issue is quite shallow. They only want to “play save” during the plan cost preparation with assumption to use all the budget given by the sponsor. This situation will not give the accurate figure of the project financial performance. In the end, all the unused plan cost will be removed and the margin calculation will consider the actual cost which usually is less than the plan cost. This condition also makes the deviation of planned margin and actual margin is high.

 To improve the project manager awareness of the financial knowledge, I was assigned to conduct the knowledge sharing relates to this matter and this is a mandatory session for all project managers. I shared all the financial terms and showed them how the plan cost of each project has connection with the company financial performance and how the project manager contributes towards management decision making through their project financial performance. Since the plan cost is very important the capacity and capability of plan cost development is highly required. I guess, that is one of the management objectives sending me to this course.

The direction is clear that we need to fully utilize the available resources to achieve all the deliverables without any addition in the organization structure. In this case, what should be changed or improved is the current ways of working to have the things done.

While doing my PSP Checklist I learned the theory of Value Engineering and try to utilize it as a solution. Firstly, we tried to figure out the list of tasks that need to be performed by them and calculate their total work hours. Second, we translated the tasks list into a process sequence flow. Third, through the process flow we can identify which boxes that generate the most problems, which create task redundancies, and which produce scope creep in job desk. Fourth, we are able to identify new innovative ways to redesign the process by eliminating the redundancies, create a new reporting template that will enable others to contribute their support, return back several tasks to the right accountability and responsibility. Fifth, we compare the work hours before and after the process re-design, and analyze the result. Theoretically, we are able to achieve efficiency and by next week the new process will be adopted by the project. 

This is where I recognize the importance of being able to apply value engineering concept in real working life. It indeed helps to reach the so-called “efficiency target” that is strongly urged by most companies nowadays.

“Always learn from the best”, has become my motto for years. And I was complete forget about it due to not only complexity of my job but also with spent my time with family, when almost everyday I went home in 22.00, and it seems to unfair if I also not spent time with family, while for the distance team I have to spent 10 hours a week, for my family I spent 25 hours a week. For my work I spent 80 hours a week.

If only I took 10 hours a week just for only finishing my paper, I sure I can finish it in time. I was not have to concentrate on other such assignment project and or mapping which I still can do it when I am already finish my paper and joining the team again. That is my lesson learn and I will do it for the next run.

The paper I was working was also something I have never done before. It was same as producing thesis which I have never done it before because I have not enroll for master degree before. My solution for this matter is get used to writing habit experience just like my mentor used to say, “starts in writing”!!

Analytic thinking in every project issue that occur and creating solution are something I usually do in the past, but these also has to do stating my citation from where these ideas supports and come from. Habit to start technical paper writing and thinking how to be more clearer when to present to other parties. Not only verbally but also in writing will also contributing in more for project reporting to the clients. My lesson learn that, when my PM asked my why EVM can predict project progress, I already know that EVM is performance based approach and a full report of what the project has achieved, cited from Humphreys, Project Management using Earned Value.

50-50 between working on site and behind the desk was also my obstacle when joining and working actively in distance learning group, where almost everybody was may have working on their tables, I have to spent time checking on site result and match to organization’s quality standard which is my responsibility, not only the project progress. And yet, this is a known risk that I have already know, that is why I always carry my mobile device just to get updated to team progress, but may seem that I am not that active in team, but we cannot serve and please all. My lesson learn is to get more time for me first before serving others with style. You can always comeback to the distance learning group, where this is a learning experience of ON-OFF project grouping.

This is my lesson learn for those who has 50-50 working time between outdoor and indoor type. May my posting is usable for you. Thank you.

First thing first is to pick a topic as your base to start your paper and it is advisable to narrow down the scope as to cover the words requirement. My suggestion to manage scope creep is to build your Work Breakdown Structure, or Table of Contents, and focus on the keywords inside your structure. Afterwards, start researching the available data and build your content based on it. Start with the hardest part first so you will have plenty of time to make any revision based on the continuous consultation. AACE’s restriction on the word count also helps you in managing scope creep as you will have to make your content as concise and precise as possible.

By doing those activities above, you already learned how to apply time, scope, stress, and risk management. This is in addition to the technical and English skill that will surely increase while you write your paper. Another skill that you will manage to develop is your analytical thinking on viewing a specific matter which is somewhat similar in writing your weekly blog. AACE considers paper as an important element because it will train you to integrate both soft and technical skill of management in overall and become project or program manager of your own. This is not to overlook the chance to be recognized and accepted globally.

How do I choose the topic?

There are several things that can be a guidance to take the topic also makes it easier to write it.

1. Pick a topic that corresponding to is in the daily work related to certification. Your biased view book Skills and Knowledge to find out what’s what in your work-related issue.
2. Pick a topic that becomes more value than you who you like and you feel confident is to know. Do not choose the topic that appeared well, but you do not have the knowledge to it.
3. Use and read the script references that can support you. Minimum can be taken from reference 10.

How to start activities for writing?

In preparing the paper I will try to share tips to complete the paper. For some people living and working as consultants who are always giving a suggestions by writing to the consumer, will greatly assist in completing paper, but not for others.
But we basically already have the experience to write. when we are in colleges in preparing a thesis or scientific activity reports with links to our lesson.
For those who are still difficulties in preparing the paper, here is my share:
1. When you do not get the idea to start, trying to figure out randomly. You can start from the introduction, the main problem, problem solving and conclusions. When ideas come up, sooner you write in a piece of paper. Save the text and do it for all, all ideas are written in the piece of paper.
2. When all are collected and that’s enough, then spend enough time to start assembling. Follow the assembling using AACEI format for paper. After reading and put them together, then start writing to make it in one unified whole. Although not perfect yet, try to complete from start to
finish.
3. Once completed, start doing refining by adding new ideas to enrich the text. Will definitely get enough paper to meet the requirements for the exam requirements.

What about your English skills?

Is to become one of the deficiencies for us, whose primary language is Indonesian not English. But don’t worry we can start the paper using Indonesian language. Things to consider when making paper in the Indonesian language use the Indonesian language standard rules. This is to make it easier when we finished making the narrative and then translated using translators such as Google. When Google translates our narrative in accordance with Indonesian language standard rule, then Google will translate it more precise with the good English language order and grammar.
Having been translated, and then trimmed it to follow the correct English Language rules and grammar. After that ask a friend who is fluent in English or native English to correct and improve the grammar.

What are the advantages Value when writing a paper?

Create a paper will train us expedite mastery of English; also expedite what to write correctly, so that makes people who read that was not knowing to knowing.
Creating paper is also helping us to do research, compare different kinds of references, and mixes it into one and can draw conclusions into something new and better.
Confidence will also be improved when our paper is accepted by AACEI.

2. Writing process
2.1. Be systematic
My personal best practices: before start writing I always think on the frame, how I will explain the objective, “be systematic”. In the writing, we have an objective or idea that we want to share to the reader. So in order to make that happen, we need to define the strategy of writing,..how to bring the idea slowly, support with fact, and prove, if possible make simple logical simulation/example,..so the reader could agree with you.
2.2. Use wiki for last resources
This is the lesson I get from David. If we taking a resources from internet, please use wiki as last resources. If you have other than wiki, so use that. Wikipidia is good resources but it is an open posting website so anyone can put anything or edit any definition on it so it is not secure as single resources.

3. Final editing
3.1. Review by native speaker is the best
For me in a country which English as second language make certain difficulty for paper. I has pay a cheap translator services to fix my grammar in the paper, and it still “bad” (probably because it was cheap ). The lesson here,. if you have native speaker friend,…please ask them for help. It is more efficient to review. I has wasting my time for 1 weeks waiting for the translator revision, but it still not good. And need 3 times review from the native friend then it was solved. Thanks again for David.
3.2. Plagiarism check
This is must to do for CCE paper. Dr.PDG sent us a number sources for free plagiarism software,…but my personal suggestion is, just use Viper. Because of it was user friendly, and easy to download, easy to install, easy to use. Then try to achieve max 2% plagiarism.
Delete the word or statement which you has cited,… delete the reference list,…upload the file, then run the viper. If you still find a plagiarism in it…just do paraphrase.

3.3. Writing an abstract writing
This is the work which I think we need to solve after all issue above is completed. The Lesson I get from Dr.PDG,…”Only give a very big high summary of the story. WHAT is the problem you are trying to solve; WHY is this problem important to your company/or others people/or anyone; HOW do you plan on answering the question or fixing the problem; WHAT did you conclude.

I think after that you can sent for final review to Dr.PDG,…Release for Submission (RFS).

Rgrds, Farid

When to start – With the change in requirement from AACE for CCE certification that the paper should be submitted by exams registration deadlines, the training should emphasize on this more during the first face-to-face session to have the participant have the paper title ready before they participants return to their home bases for distance learning mode. Upon deciding the title, a rough idea of the paper should be prepared within the next 7 days on what will be presented for the paper. This is for the participant to prepare the number of word and what will be presented in the paper. This is to control if the content that could be out of scope. This iterative process should have started earlier for the content presentation to be clarified to avoid scope creep. This process can be up to few weeks to one month. While presenting the idea on what to present, the participant can start to research on the material needed. At this point, the assignment should only focus on paper with less emphasize on EE and HU problem solving; even blog has to be relevant to what have been learned that relevant to the paper preparation.

 I spent almost 2 months from my first session to research on material needed to be presented before deciding on the title in December. This may not be applicable with new ruling. With the material collected, I spent approximately 4 weeks to complete the paper with close e-mail exchange with the trainer on changes in format and presentation. This should been done earlier.

 While writing on the paper, new things were discovered especially on presentation such as citing, footnote of the paper and also technically the content of the paper which I have written that add to my knowledge.   

 As mentioned earlier, to avoid last minutes rush as well as scope creep, paper content and also arrangement on what to be presented should have been stared earlier. This means that the participant should have a clear idea on what certification to go for earliest possible. The paper for the candidate to be able to present what to be presented structurally and also to check if the candidate understands what is being written and presented and also a training platform for the candidate to be trained to be able to present ideas or technical proposal effectively and professionally.

 The restriction from tools and sites that have restriction to 140words is to have the data and important information transpired precisely in very limited wordings. Not only this restriction, but emergence of new communication technology and platform which has the convenient and ease of use have already affected our living. Only essence of the information is to be transpired disregard of the structure as well as grammar sometimes.

Regardless, the procedure which is currently applied to manage the contract efficiently but may not effectively for project schedule such requirement to get competitive bids, not just minimum 3 contractors  invited, but also each single process of  tender process, i.e.:

• minimum 3 contractors attend the pre tender meeting
• minimum 3 contractor’s bids received
• minimum 3 contractor pass technical evaluation
• minimum 3 contractor pass commercial evaluation

Whenever, the requirement of 3 bidders attendance are not met such less than 3 bidders  are passed technical evaluation, so commercial evaluation is not allowed to open and subjected to re-tender process and it will take another 3 -4 months. It results project delay due to re tender process just for an intention to get   exactly competitive bids through 3 bids in every single tender process till award. I think the bureaucracy of the tender plan process will put the tender plan into critical path of the project implementation and neglected Present Worth of investment concept.

In addition, there is additional procedure that PM doesn’t allow to open and evaluate commercial proposal instead of contract engineer only. What the procedure put in order , once we evaluate and get 3 bidders passed technical evaluation then Contract Engineer will open the commercial bids by him/her self  and send  the cheapest price of bid to PM to evaluate it. If PM doesn’t have concerned, then the cheapest bidder will proceed to award or if PM has concerned then contract engineer will send the second cheaper bidder to evaluate once we have due diligent by clarification meeting with the cheapest bidder.

The clarification meeting become required to be held in each process of technical evaluation and commercial evaluation to ensure the contractor have understanding clearly of the scope of work , even when we evaluate , we do not find something need to clarify. This is another ineffective way to do. Otherwise, the local contractors capability to understand the scope of work clearly and as PT Inco obligation to develop them and make sure they understand clearly is one the reason of contract engineer do all clarification and confirmation process. Otherwise, I am just surprised another confirmation meeting is held by contract engineer once the contract award is approved by Contract Board meeting prior award to the contractor.  

Table below shows how normal duration of tender process which is required average 12 weeks and may be more depended on complexity of contract, scope of work and re tender process to maintain 3 bidders in each single process.

Total   : 12 weeks

Reference : James G. Zack, Jr. 2007. Constracting for capital Projects. Skills and Knowledge of Cost Engineering. 5^th Edition revised, chapter 25, page 25.1 – 25.7. AACEInternational.

And I think the most crucial skill for the paper is technical skill on the chosen topic. If I don’t understand it well, I could not tell what I ‘m going to do, what it will be and how to handle it such a no direction to go. And I think writing the paper is the proven way that I can show how much I can understand and apply knowledge to the real usage which AACE is trying to emphasize it rather than measuring by answering the multiple choices only. For the English writing skill, I think it is minor required even my English is not really good but if I organize well enough, the readers can understand my story. Besides that I can ask help team from native language friend for fixing my writing.

The final succes on writing the paper for me is my high intention to make it finish as I have committed to myself and my sponsor beyond anything. So I push myself gradually everyday, I think it’s better than nothing. And yes, it is accumulated and become completed one.

And I, again, insist that it is not easy but it’s not too hard for us. Everyone can do but commitment is the key!

You have to choose, Start now or Never happen.

 At first, 2500 words sound too many, but during the writing it feels it is not enough and you will end up on more than 2500 words. The paper topic selection is the key. We need to ensure that the topic we selected is something that we know so it will not stop us during the writing. Choose the right topic!

 The paper should be started as soon as possible. Sometimes in the beginning of the course, we though that there will be enough time to start on the paper near to the deadline date. But unfortunately, you really don’t know what will going to happen to you. In my case, the medical condition was the obstacle during the paper writing. Luckily, I have done all my research and collect the bibliography before the surgery. So, the remaining works is just to write them all. That is the strategy on my paper writing. Do the hardest part first!

 After the research done, the clear picture of the paper slowly revealed and then I can develop the table of contents as my guideline on the writing. This is to manage the scope so I can write based on the table of contents only. So, before start on writing, the table of contents development should be started first!

 I was so happy finally I can finish my paper and submit it to the AACE HQ. This writing process is sharpening my English skills even though I got a help from David in the end. Furthermore, I can explore the TCMF deeply during the research and analyze of each process. This is one of the reasons AACE consider to write a paper for AACE credentials to sharpening the analysis skill of each candidate.

 I guess the high motivation is my strength that made me successfully finished my paper.

The first formula EAC = AC + (BCWS – EV)/CPI. What this formula is saying to me is

1. What was your cost performance over the first part of your project ie CPI?

2. How much work in dollars remaining ie (BCWS – EV) ?

3. What have you spent so far ie AC?

Formula assumes current cost performance will continue and adjusts remaining work by the CPI factor and adds to the “cost to date”. A greater than 1.0 CPI will reduce forecast cost and lower than 1.0 will increase the forecast.

The second formula EAC = AC + (BCWS – EV). What this formula is saying to me is

1. How much work in dollars remaining ie (BCWS – EV) ?

2. What have you spent so far ie AC?

Formula assumes current cost performance will not continue, and you will maintain cost performance as per your original plan. It just takes remaining work and adds to the “cost to date”.

The third formula EAC = AC + (BCWS – EV)/ (SPI x CPI). What this formula is saying to me is

1. What was your cost performance over the first part of your project ie CPI?

2. What was your schedule performance over the first part of your project ie SPI?

3. How much work in dollars remaining ie (BCWS – EV) ?

4. What have you spent so far ie AC?

Formula assumes current cost and schedule performance will continue and adjusts remaining work by the CPI and SPI factors and adds to the “cost to date”.

The range of values was considerable. Some basic lessons learned.

 No one EAC calculation is correct and you need to select a formula that is appropriate the information it is working with ie. cost and schedule information to date. Eg Formula #1 would be good for a Blog type report where work is repetitive and it is likely to continue at the same level of performance. Formula #2 would be good for a project where you think cost and schedule performance (good or bad) to date, is a bit of an aberration and you will be back on track from now on. Formula #3 is more suited to a project in after initial start up where CPI and SPI values are forming a pattern with an element of consistency.

 Because formula with CPI and SPI factors are looking at performance to date and extrapolating to give a forecast, this can give erroneous values especially in the early stages of the project.

 The formula used for EAC calculation may need to change as the project progresses.

 The values are based on the assumption that the baseline estimate is correct. (This is a big assumption and I will be looking closely at this to establish when it is appropriate to re-baseline with more accurate information.)

The table of contents is the skeleton of my paper. It is the structure that shaped what I want to say. I developed the table of contents after I chose the topic. Mind you, this table is not the automatically-generated table of contents in Microsoft Word – this table is written on my notebook. As Paul said, this table is the WBS for my paper. For me, this table of contents is my 100% scope of work – I must have a very good reason to deviate from it. Oh, by the way, this table can evolve – it does not have to be right the first time. For me, the first draft of my paper was out of sequence, so I revised it accordingly. I recommend Schaum’s Quick Guide to Writing Great Research Papers as a reference.

Writing this paper makes me clearly understand what it takes to implement EVM, including the pros and cons. For me, writing, putting my thoughts about something that interests me into words, is really beneficial – it makes me understand better. I think that this is the reason why AACE includes paper writing as part of the certification program – to ensure that certificate holders know what cost engineering is about, and not only for the sake of getting a certificate. In retrospect, I would have done more research and made more than one simulation for the case study in order to really understand EVM, before I started writing.

Now that I have finished my paper, the next step is to apply this knowledge in my workplace. I’m planning to propose improvements to the ‘existing’ project management handbook (or maybe to develop a new one is more precise).

The first one is Base Station System (BSS) work which has large number of sites when roll out. As previous analysis, the level of detail cannot deep down into site level because it requires maintenance time in the system. While schedule is managed in more detail in another tool. Therefore POC method apply for work package is incremental milestone by giving percentage to each standard work package. As the cost account is bundled so POC will be average of all sites in that particular bundled account. See below example for calculation. And this bundled POC will put in SAP.

The second type of work is Core System which has a long duration in each work package and every step is relevance to the existing customer network. So it is necessary to manage in site level both cost account and scheduling. The applied POC method to this type of work is also incremental milestone by giving percentage to each standard work package. And this is able to manage schedule date in SAP system because small number of site implementing which less maintenance time require.

And the third type of work is about Consulting for the network which has different scope of work from contract to contract. The duration and acceptance criteria also are different in each contract. The applied POC method for this kind of work should also use incremental milestone and it is able to manage schedule date in SAP system.

So the method used for all type of works is incremental milestone but the percentage given to each work package will be based on cost proportion of each work. Why I choose the same method for all types of work? As we know the beneficial of EVM which provide the project progress with 2 dimensions, time and cost, and early warning to project however as you said SAP just nick to have EVM function. In order to have EVM in the project, I think this is better way to manage and doesn’t require so much effort/resource from project.

This is a very hot issue since the competition in Telecom Industry is not like several years ago. Previously, the competition is clear peer to peer with the same Europe’s vendor. The quality and requirement fulfillment of Europe’s vendor is well-recognized by the customer which makes the price is higher from the Chinese’s vendor. But nowadays, the condition has changes. Somehow, the Europe’s vendor now is compared head-to-head with the Chinese’s vendor. The challenge is the customer now expecting the Europe’s vendor’s quality but with the Chinese’s price.

This situation makes the service costing process changes. Detail review is needed; input from project team is required as the implementation team. Thus, the Activity Based Costing is used to get the most rationale price. Another issue comes since the scope given by the customer is not that detail in the beginning. Once the proposal is submitted and agreed somehow during the project implementation, the requirement from customer changes. The changes come from customer’s project department which during tender process is not involved.  No clear communication between customer’s procurement and project department about what has been agreed in contract makes the vendor suffer. The price that has been submitted is not covering the changes that required by the project department. The hard negotiation then happened to educate the customer’s project department that the changes they required are not in the contract. 

That kind of condition is happening frequently. Now, during the service costing, they really need to ensure the scope as detail as possible to minimize the changes during the roll-out which can inflict a financial loss.

Figure 1 - Productivity Improvement through Learning Process

Further analysis on above findings is to relate them with the performance of a performing team. The higher repetition of a task, the cumulative average time needed to accomplish a task is reduced by a certain ratio. Based on http://www.maxwideman.com/papers/resource/resource.pdf, a project constitutes of three stages which are “build-up”, “steady-state”, and “run-down”. The implication of Learning Curve applies mostly at the first phase of a project and decreasing productivity during the run-down phase.

In previous blog, I addressed the risk of declining slope of a performing team’s learning curve which impacting the productivity curve in the same direction. This is because when reaching the “steady-state”, which I assume the team has reached their optimum performance, they just improving continuously with no significant change on the process. Early satisfaction stops them to learn and leaving them with no value-adding commodities to be sold. “Groupthink”, which the decision-making process is finalized without critical analysis and ideas evaluation, also causes the expected learning curve not being realized. Hence, instead of improving the productivity, it causes the productivity to be lower. In summary, to just improve is not enough, we need to break the rules and be innovative to stay in the competition.

In fact a successful manager should act like an actor. Managers must be able to play the style of both theories, theory x, theory y or a combination thereof.

For example at the beginning of time formed the team, managers can use the style of theory x, where the direction and guidance should be given to team members. Team members were forced to perform work in accordance with the agreed goals and commitments or agreements that have been approved and signed together.
Then manager can monitor how the team members perform their tasks.
Base on the work that have been done by each person within the team, managers can monitor it and play the next style.
For those who can do the job well and without the need to be supervised, managers can begin using the management style of theory y. For example in “Quest to CCE” team where members can perform their work on time to: blog posts, problem solving, paper and project control.
In this position of manager can bring the tim to work together and work as a team to solve problems, encourage team members to work on the problem and resolve it by itself. And let them know that you are available as resources for discussion and if they need you.

Meanwhile, for those who do not show good results from their work then the manager can implement a management style in accordance with the theory of x.
For example in “Quest to CCE” team where members are unable to provide work on time or even no contribution. Managers can rebuild the non perform member to follow procedures and meet the expectations for the success of the task, remind again and again about the performance targets. Direction how to do and perform task/work is required, even warnings to do a good job or the most worst dismissal must be run by a manager.
While for the member that sometimes give good performance but sometime also decrease their performance, then the manager can use a combination of both styles theory.

The conclusion was that managers should be able to run a management style appropriate to the situation that occurred or could be said managers should be able to become a skilled actor. . An overall management style of leadership methods should be used by managers.

Somehow when people think that they are already performing, they will stop learning. I believe this situation will only last for a while, and someday new things will emerge which means more learning need to be done. This is when the “comfort zone” turns them back to non-performing situation and a newly formed team can always beat their performance. Furthermore, they would tend to underestimate the task on hand as they might think that everything will be under control. Team member will start to depend on one another and eventually no task being completed appropriately. This is because they feel that they are too good to fail which correlates with the learning curve either. The risk goes to the leader as well as sometimes they are too confident that the team will perform well and thus leaving them nowhere.

Good leadership plays an important role here to help in mitigating those risks. Leaders should not adopt one kind of style but they should be able to use many different behavioral styles and choose the right one based on the situation. A performing team does not need a leader that organizes everything for them and ensure that their works are done reliably. They need someone that can initiatively adding value towards the team work instead of just stick to routines and disciplines. Reading an article from http://www.mindtools.com/pages/article/newLDR_84.htm which talks about various leadership styles, I believe the best leadership style to mitigate the risk is Transformational Leadership. It stated there that Transformational Leadership is beautifully motivating where it encouraging, inspiring, recognize people, focus on team interests and integrity, and communicates vision clearly.

Their enthusiasm can be passed to the team and can transform the risk to be the so-called OPPORTUNITY. Instead of dropping the learning curve, they can inspire the team to have a knowledge sharing among them and having the team to perform even better. Their focus on people can help in recognizing the good works and establish positive momentum to motivate members. Adding creativeness and building fun environment will also help people to get rid of the boredom and monotony circle of the “comfort zone”.

Since I have some basic knowledge of EVM, so I studies further on how to implement with SAP functionality. It takes me sometimes to understand how the software work to fulfil EVM. I try to understand but not 100% clear, I think it would give me more understandable when I practise it.

So next step, I consider what level of detail should be used to implement EVM. In schedule/progress database, it is planned in site detail. In SAP, it goes detail when site has long lead time, high contract value, and  high effect to customer network but for site that has less risk, easy to implement, low contract value, and short lead time are bundled them together in one account to monitor and control project.

From above different in level of detail, I think it is better to implement EVM at the same level with SAP because 2 reasons. First reason, if we go to site level, the data to analyze in SAP has only bundle level and cannot dig down in site detail. So if project manager would like to dig down, he needs to check in that bundled account in schedule/progress database. The second, if we got to site level, it will require a lot of maintenance time because we have to put all schedule dates in SAP which doesn’t do it currently.

Next, I plan to study in detail what method of POC, what standardized work package will be used.

I was reading on an article which was distributed by Paul at the beginning stage of the program for the current team. The title was “Pursuing Authentic Leadership Development”. It was a very good article in search of the basis or the underlying urge of leadership development that a participant embarking on. My personal interpretation on development was not only restricted to leadership development but all sort of development that lead to enhancement of knowledge that lead to betterment of career, family, society, community as well as life of the participant. The article was about in search of readiness of the participant if he is ready to be developed to acquire knowledge and skill and how authentic and genuine a person need or want to be developed. Or he was asked with not much of internal drive for the development. This comes to the reflection of current team as well as previous team that I am/was in for the program that the awareness we have on ourselves to move on in life with opportunity that is presented to us. The opportunity could be development in terms of training as well as to take up new role and opportunity for career enhancement as well as role and responsibility in the society for the community and for the country. This is really interesting to look at as an individual. What if we are not ready, are we willing to be developed to have the readiness for development for next step. This has a great deal of effort to search for the answer which only the individual participant and provide the answer.

The readiness or self awareness for development will lead to an automatic behavior to take action within the context or requirement of the program as to lead to the needed level or stretch to greater extend. Or at least the motivation to move is very much initiated internally than come externally. At times, the readiness could be affected by external and internal interference that need to be communicated and guided to be back to the right track for progress. If the program does not lead to the intended certification as planned, it is also a very good reflection for the participant to learn from and to know his/her to have better and more readiness for next program or opportunity that come to us. There is always an answer and lesson learned from within on success and failure from an undertaking. By knowing that, will lead to intended achievement that one is heading for.

The variable budget system is applied in case of cost reimbursable contracts and other situations where the budget is subject to considerable variation where the fixed budget system will not be appropriate for making judgments on cost and schedule performance. In those cases, earned value determinations should be based on a variable budget system. The variable budget system is particularly suited for a project that is initiated on the basis of an incomplete definition and that has a floating budget. Each identified work package is assigned a budget based on the best available work quantity information at that point in time. Then, as each work package is fully defined, its budget is adjusted to reflect final work quantities.

I point out on contract out of engineering work at PT Inco where the consultant is more interesting on using reimbursable projects instead of fixed price contract. Especially, for design work project which is required technical expertise and have complicated detail design needed where the preliminary design hasn’t provided yet to assess and identify basic calculation and requirement of design package. The other projects such growth and development mine project where I find that contractor ask for reimbursement project to construct new infrastructures to develop large mine pit area where detail topography data is shortly available in the beginning of project.

For this purpose, as the client, we should have a directing position in order to contain the risk of a contractor taking advantage of the reimbursable and manipulating data to day execution to enhance profitability. The quality and skill of the client’s project team is required to  address the pre-contract activities and the post contract work execution program to ensure that the contractor provides competent personnel.  An effective proposal evaluation is required to evaluate the quality and the contractor’s program deliverable with criteria for technical, project management, commercial, project control, contractual, and construction. If we have inadequate expertise, the assessment may required liability of agent or independent consultant. Some how, in large project or such new technology applied, it is a practice to train new / inexperience personnel on PT Inco’s reimbursable projects, since the major cost risk is to the client.

I was confused when I read on calculation of Quantity Adjusted Budget (QAB) on Chapter 15 which is result from multiplying the budgeted work hour rates by the work quantities. It seems the formula is quite similar with Credit Work Hour (CWH) on chapter 14. Otherwise, I find the differences are:

 QAB = budget rate x adjusted design quantity (forecast quantity)

 CWH = budget rate x actual quantity

And for variable budget: CWH = POC x QAB. It means that CWH = EWH

In a sense, QAB is not really a new budget, but is rather a forecast reflecting the latest designed material quantities to be installed at budget productivity. The forecast then becomes the yardstick for measuring project achievement. The real budgets under the system are the unit rates. The project’s final quantity adjusted budget can not be established until design engineering is complete, which is usually well after the start of construction. In essence, QAB and actual hours waste as a result of rework should be transferred to separate accounts outside the basic control structure so that they may later show the extend and cost of rework. In addition of QBA, Dr. Paul comments in previous blog on Week#10 “to update (rebase line) the project so the schedule and budget reflect what is reality.”

Further, Fixed budget and variable budget approach are simulated and calculated on Table 15.6 to table 15.13. I try to run all tables simulation and find in case of Variable Budget Approach for Fixed Price Contract that: CWH is equal to Earned Working Hour (EWH) results CPI is equal to the productivity index (PI) as shown table below. The reason because the quantity adjusted budget automatically accounts for quantity variations.

Reference : Orczyk, Joseph J. 2007. Earned Value for Variable Budgets. Skills and Knowledge of Cost Engineering. 5th Edition revised, chapter 15, page 15.1 – 15.7. AACEInternational.

SOX compliance is provided with proven documented project management processes and ways for project managers to present the financial forecast clearly to the senior management to gain their trust and confident.  EVM (Earn Value Management) is one of the means of achieving the above by putting value on project status to enable measurement of project health throughout the life-cycle of the project.  EVM concepts are defined in ANSI standards’ process guideline, its shown as below:

- Scope Definition: Includes SoW & WBS which is also a standard way that our PMO is practising now.
- Program Organization: Task performed by the each team members are allocated covering SoW & WBS with reference to the scheduled time plan. All this man hours becomes part of plan cost and is the project budget which is pre-planned
- Measuring Performance : Planned and actual cost are kept,monitored and managed in our accounting system.  In my PMO, reports are extracted periodically and used in governance report to sponsors and steering comm report presentations.
- Estimate at Completion : Progress to date information is used to analyze forecasted costs.  Though this is not frequently used in my PMO practise.
- Revision Control : This is termed as Change Control in my PMO.  All changes (internal or external) with cost, scope and schedule variance are logged and tracked.
- Document the Process : A few document is used depending on the detail level of the needs.  This includes, implementation plan that consist of schedule, Statement of Work that spell out the SoW, etc

As stated in the SOX, Corporate Responsibility, CEO and CFO share legal accountability for incorrectly financial reporting and forecast for projects.  Project managers here plays an important role in assisting to provide information to the principal officers in reporting project status to the shareholders.

We have been studying cost engineering from probably a pure capitalistic perspective, with the objective to maximize monetary gain with only rudimentary or peripheral consideration of other aspects, such as energy demand, resource depletion, global warming, social inequality, etc.  These factors are however becoming increasing important and significant in the decision making process.   Unfortunately, consideration and accommodation of these factors will only likely to increase costs, so as long as we measure, assess and decide primarily based on financial factors alone, very little will change. 

There are probably a number of companies that may make social and environmental issues a decision making factor however their effort, although admirable, is somewhat pointless considering the overwhelming majority of other companies that probably don’t.  My assessment is that our society is headed for a precipice and there is very little we as individuals can do about it.  Indeed, even if an individual country decided to make a revolutionary change to adopt an alternative to the current capitalist focus (if there is one), impact would be minimal at best on a global scale. 

We are we going, what is the future?  What is the answer, what is the solution?  I don’t know, but I want to apologize to future generations for the gross indulgences and excesses that we have and continue to enjoy at their future expense by following a capitalist focus without sufficient due consideration for social and environmental issues.

The first most obvious lesson was to understand that we all accept in an element of faith that the software designers, developers and testers have got it “right”.  Often I made a request for a change, only to be informed that the change was not possible or in some cases seeming accepted but when entered, data reverted to back to original.  This latter situation was somewhat disconcerting and frustrating, especially as no warning or notification is given.  (Note to software developers – a little assistance with a warning flag or similar to explain logic would greatly improve end-user understanding and capability in these situations).  Even though we have faith that the software is correct, it should never be blind faith.  Blind faith implies punching figures in and producing a result without even conducting a sanity check.

A sanity check is a over view of the output, basically asking “…does it make sense….does it look right?”.  If it looks wrong, chances are it is.  This applies in all fields, not just scheduling.  For example, construction design relies heavily on dimensional proportions and finance relies on order of magnitude to produce the same review.      

The second verification is to self verify the work done. Often there is a second way to look at a problem – maybe from a different perspective or using a different method.  Good example is the Engineering Economy questions.   It is usually possible to complete using theory and formula and then repeat from first principles using a spreadsheet.  If the answers align then the confidence level in the answer is increased.

Third and final verification is the independent review.  No one should be too proud, embarrassed or arrogant (sorry – strong word but appropriate sometimes) to think they don’t need independent review of critical outputs. Age and experience may improve ability to determine “criticality” but it will never eliminate independent review completely.

It’s not what we don’t know that is our biggest concern, for we can always learn or obtain help or guidance, but its “…what we don’t know, we don‘t  know” is our biggest risk.  This is super critical in most engineering disciplines and can be mitigated (not eliminated) by stringent quality and verification procedures.

In theory Y, the effort of work is natural such as work and play, people will naturally self control and have their direction of work in accordance with company objectives, without the need to control from outside, people usually accept and often seek responsibility, commitment to goals is a function of the award of what he achieved.

McGregor grouped Maslow Hierarchy’s into “lower order” (Theory X), namely: Psychological, Safety and Belonging/Love and “higher order” (Theory Y), namely: esteem and self-actualization.

For modern age like the present, theory of X and Y cannot be taken too literally and the separation is very unrealistic. Actually human beings is between them, sometimes in X is sometimes in Y.

Currently my team are dealing with very large projects with a value above one billion dollars for the first time. Pressure from the managements who want this project can work well and succeed, weighed heavily on us.
From the side of McGregor and Maslow’s theory, then our team can be deemed to have fulfilled the needs of “the lower orders’ or theory X, so should our team has always start by looking for the needs of” higher order ” or theory Y.

But in reality due to high pressure and friction with colleagues, they experienced with demotivated. Enough with the existing as it is. No need to work for self-actualization. Obviously this will interfere with the achievement of team work.

What have been done by management and other team members is to conduct a personal approach to members who feel demotivated. We share the work load that is experienced by all members. We inform the workload of each member and their achievement. From here we try to restore the motivations and ask the member to returned to work independently to achieve company goals for this project that have been committed and signed at Project Charter by all team an stakeholder.

• Degree of Project Definition
• End Usage of the estimate
• Estimating of methodology
• Estimating accuracy
• Effort required to produce the estimate

Degree of project definition is the primary characteristic to identify an estimate class. The other characteristic are “secondary”, with their value typically determined by the level of project definition.

 For me this is an interesting reference to benchmarking the process applied in my daily work. When I come to the Generic Cost Estimate Classification Matrix, I’m using a little bit difference approach in benchmarking, use the second characteristic, End Usage of the estimate, as the first point. For purposes point of view, my daily work is mostly involving in Class 2 (Control or Bid/Tender), with several time moving to Class 1 (Check Estimate or Bid/Tender) and Class 3 (Budget, Authorization, or control). When put Class 2 as the area, and back to first characteristic, then in term of Level of Project Definition, it Must be expressed in 30% – 70%. And in Class 3, the level of Project Definition is around 10%-40%. With these scratch explanations, I can assure that the process in my daily work is on track. For Bidding purposes we get detailed requirement of what is needed by customer. But for budget purposes, the requirement comes in slightly high level of requirements.

Reference: Skills and Knowledge of Cost Engineering, 5^th Edition revised, Estimating, chapter 9, Larry R. Dysert, CCC.

Although the project was already at more 70% in progress when I joined, I can’t help but to analyze to compare what I have learned in the AACE class and textbooks to further improve the project. I tried to find out what issues in Project Management remain as the biggest impact to the project.

Major Issues:

a) Estimating and Control: KC Phase 1 Project’s estimating methods are not sufficiently definitive for all cost categories to support effective project control. The project estimate is not integrated with the project schedule. The estimate basis document is not published. The estimate is partially consistent with the latest design documents. The estimate provided by the team had not been updated with the subsea scope addition. The estimate was quantitatively validated by an in-house estimating specialist using in- house metrics; however, the validation performed was not thorough enough. To perform a complete validation of the estimate, the estimating specialist needs to know the material and labor breakdown, hours, and material quantities by discipline and trade. This breakdown was not evident given the high-level cost breakdown provided.

b) Control During Execution: Historical cost data were not captured in a database for planning works. Each activity in the work breakdown structure (WBS) has a physical measure associated with it but not in a level detail enough for control (less than 3 level). An owner project control specialist is assigned to the project during execution and is actively involved in the project. Owner control specialist responsibilities are not well defined (This is my role). In fact, it was planned to have the project controller perform this role part time while being transferred to the construction team during execution to gain construction experience. Moreover, the project controller was also the planner. Finally, it is not clear if any project cost data will be captured in a historical owner database (if any) for future planning.

c) Team Member turnover: The continuity of the project team has remained volatile. There is no turnover in the project management role, but key critical lead roles and senior discipline positions, are still vacant. Without these key lead roles, reaching first gas in late 2010 will be very difficult. It has been noted by the team that the current staff is relatively inexperienced. Therefore, it is imperative that lead roles, such as a facilities manager and senior facilities engineers, are filled to ensure the execution phase meets the intended milestones.

d) Document Control Process : The team did not manage to hire a proper Document Controller nor any document control system was adopted throughout the project. To date, the document control process does not exist and will be critical for this to be established especially to track changes in project.

What I have done:

With Phase 2 project coming along, few recommendations are being laid down and with some of the works I have myself started:

a) Estimating and Control: I have requested estimation team to perform a complete validation of the estimate, the estimating specialist needs to know the material and labor breakdown, hours, and material quantities by discipline and trade. This is essential to load in the level 3 schedule.

b) Control During Planning: During the preparation of new WBS for the Phase 2 works with the team recently, I have used the NORSOK standardized WBS template given by Paul as a basis, adding/deleting items to suit project requirement. The WBS is also to be aligned with Petronas Project Management System which has adopted gated process system for the Front End Loading phase. Under this gating system, an enhanced criteria is to have a schedule detail enough (fit for control at owner’s level- at least at level 3-4) and resources loaded (cost and manpower).

I can pick up me, who am working on daily work with really strict time plan in each project, as an example of Short Time Project. More or less we only have 1 week in average to prepare costing for tender purposes. It will not makes any sense to us to set up an elaborate monthly reports and corrective action plan since the tender preparation will be completed before such program can even be properly established. So what will we do to makes sure we manage the project in the right track? In term of Feasible Plan normally we produce check list contain containing general’s information of requirement based on RFP. In term of schedule, we really don’t have float on it, just make sure each team in each step now their deliverable and cut of date of it’s finished. Another critical consideration is Cost, this become a field that contributing the Risk for Project Sponsor, i.e. Delay of Submission or recruitment of expert resources for a new technology (increasing utilization of resources). So far it works under normal condition. A feasible approach need to be found to improving or implementing Performance – oriented Approach in Short Project Duration.

PS : Trying to complete another pending Blog Posting

In last few years, EVM has been introduced in my organization since many of project managers have gain knowledge from PMP study. Its benefits now are well-known for most of project managers and they would like to have it in their projects in order to get the real performance report which is reliable. These reasons pressure to me, I will try to study and implementing EVM in my organization and update in this blog.

Moreover, there are many project KPIs arisen in organization in order to measure how well project manage the project. So it is another opportunity to gather all KPIs in the scorecards that easily shown project status.

Don’t much content to update this week but will try as much as possible to study and make this knowledge to be usable in the work.

The situation is better at this stage, however we may still fall in the trap that we do not have sufficient candidates to have a center for us to sit for the test. Even this is not we as candidate to worry about; however this has an impact for us to move forward to achieve the goal. This is resembling to the supply chain issue that I am currently facing, even we have forecasted and put in the request but the supplier is not able to deliver only because of the demand is too low. The demand side will think that the supply or delivery team will be able to do wonder to delivery even though it was meeting the requirement. It has to be deferred to later date for delivery. As candidate, we are not suppose to worry about this, however this will upset the firing spirit as I can see with most of the team players  if we are not able to sit for the exams as planned. We need to communicate this prior to the deadline for registration for exams so that the demand and supply issue can be covered without flaws.

Success builds success

Our company had a quarterly result sharing session this week. The CEO was in jovial and relax mood while sharing the results. It was totally different as compare to 6 months ago. The top line was not great, but it was meeting the board’s guidance for Q1, and it was green operationally. While he was asked about how to attract and retain talent, he did not say much and leave it to the regional head to answer that. The answer given was “Success builds success”. High level answer, but already tell the context that successful team will attract talent and to build on top of the success.

Search through the net and found this article

Do you know why Success breeds success? Success is accumulative and attractive.

Besides the money, recognition, and feeling of accomplishment, every success experience serves two purposes. It adds to our sum total of success just as interest compounds within a growing nest egg. Each success adds success and then some. It’s there and then some that accumulates and dramatically builds momentum for future successes.

Also, every success experience acts as a magnet. It attracts all that is necessary for future success experiences. Taken together, the accumulative and attractive functions of success build success momentum.

Cite: http://www.articlesnatch.com/Article/How-To-Connect-Successes-And-Build-Success-Momentum/190026

The most crucial aspect here is that the team is formed in a very motivational environment. The team is aware and understands clearly towards the dynamic nature, knowing that we are not set in the same location and work remotely throughout the project accomplishment. We exactly know the constraints that we have and in what situation that we are, thus we use the constraints as a media to find the strengths within the members and not focusing on the weaknesses. We handle problems not through negative conflicts. Instead of blaming each other of the setbacks, we keep on the positive attitude to moving forward to recover. I might say there are a lot of behavior adjustment in the team, such as building empathy and open mindset. Moreover we also have a positive behavior by having equality and trust towards all team members, by not discriminating the weakest member among the team.

We have clear goals and objectives set in our mind, as well as brand image reward recognition which help in boosting up individual performance. Through this each individual should build their own vision and mission thus motivates them to perform. I believe that the individual passion and commitment mostly contributes to the team performance and the departing team member would not have any major influence or effect. Since we are not talking about quantity but quality here, getting some of the members which are not performing out from the team is indeed a positive idea. Lastly, not forgetting the importance of communication, the regular team meetings help us to stay focus on the target and act as an alarm on the pending actions that should be done. By having these reasons behind the scene, we can point out why we can perform accordingly in such a short time manner.

Taken from the Wikipedia:

http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act
“The Sarbanes–Oxley Act of 2002 / SOX (Pub.L. 107-204, 116 Stat. 745, enacted July 30, 2002), also known as the ‘Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ‘Corporate and Auditing Accountability and Responsibility Act’ (in the House) and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002. It is named after sponsors U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH).”

Under the SOX, there are 11 mandated requirements for financial reporting.  And since my company is listed in the American Exchange, we are obliged to meet the SOX compliance that is bond by following 11 titles:
1.  To establish a board that is tasked with registering auditors, defining process and procedures for compliance, policing and enforcing compliance within the corporation.  This is covered by our finance department taking instruction from the headquarter and exercising the compliance locally in the projects within the country.

2.  External independence auditors is used for performing audits and audit reporting who we have engaged and work closely with our finance department assisting them on the audit work.

3.  Corporate responsibility mandates that senior executives who what i understand is the CEO and CFO of the company will takes individual responsibility for the accuracy of the quarterly financial reports of the company.

4.  Enhanced financial disclosures mandates on the control for assuring accuracy of the audit and reports for the financial transactions.

5.  Analyst conflicts of interest defines the code of conduct for reporting securities analysts.

6.  Commission resources and authority gives the authority to bar securities professionals from practice.  It spell out conditions where a person could be barred from acting as a broker, dealer, etc.

7.  Studies and reports consolidate violations and enforcement actions to report on manipulate earnings and presenting false financial situation.

8.  Providing protections to whose who uphold the law while putting penalties to financial criminal acts.

9.  White collar crime penalty enhancement increase the criminal penalties to white-collar crimes and conspiracies particularly the certify corporate financial

10. Corporate tax return will have to be signed by the CEO of the company, putting the highest ranking person in the company to be full responsible of the company’s tax report.

11. Corporate fraud and tampering of records are defined as criminal offenses.  It spell out the guide line for the sentence of the penalties.

 There are 6 methods introduced to measure work progress, i.e.:

• Method 1 – Unit completed – applicable to tasks that involve repeated production of easily measured pieces of work, when each piece requires approximately the same level of effort. In most cases, subs tasks are not mixed, but if so, they are accomplished simultaneously. Example: pulled wire by linear meter unit, placing and finishing reinforces a concrete slab which is handled simultaneously and normally reported on the basis of cubic meters of concrete placed and finished.  

When I think this method more in which tasks could be applied, I have some questions in my mind :

1. How is the unit completely measured if the quantity is forecasted under or over estimated than actual? It is answered when I just started to read Chapter 15 – earned Value for variable budget which apply where the budget is subject to considerable variation. Therefore, unit completed could be measured by divided actual quantity against adjusted budget quantity. Otherwise, for fix budget such lump sum contract the differences between quantity of original budget and forecasted should be  required due to the fixed budget project provide a constant target unit to be completed.

 2. Does this method able to be applied in the mine road development project? It would be yes as the mine road development project is also used the unit of m³ of material removal in each activity. Otherwise, as the project are broken down into some phases activities such: cut and fill overburden material, sub-base layer construction and base layer construction, the weighting factor (incremental) should be applied to measure overall project progress.  Refer to the Omni class, some WBS might be considered using unit completed measurement such Elements (table 11), Work result (table 22), products (table 23),   Materials (table 41).

•  Method 2 – Incremental Milestone – applicable to any control account that includes subtask that must be handled in sequence. Completing any subtask is considered to be the achievement of a milestone and each incremental milestone completed represents a certain percentage of the total installation. The percentage chosen is normally based on the number of work hours estimated to be required that point in relation to the total. I was little confusion on point out the words of: “the number of work hours “used to determine percentage completion. Dr. Paul said in the last year class that percent completion in conjunction with earned value is the Physical of Completion (POC) and not how much actual effort to complete the task. It means that the actual working hours should not be used to measure POC instead of estimated plan working hours required to do the task or to complete the product. Otherwise, I believe It’s very twisty to convert how much working hours estimated to complete the task to calculate the actual POC. Further, when I read the table 14.1 – Rules Credit for Drums and Tanks , chapter 14, Skill and Knowledge of Cost Engineering, I think that the meaning of  sentence “ the percentage chosen is normally based on the number of work hours estimated to be required that point in relation to the total”  is explained how to develop the incremental task ratio plan (weighting factor plan) based on estimated working hours to do each sub task in conjunction with to calculate % POC of total task.  In my opinion, it is important to break down the task into smaller elements of subtasks  until the smallest elements that still able for well controlled, measured and managed. As the mine road development project adopt work breakdown structure by phases, the incremental milestone is used to measure the progress completion.
•  Method 3 – Start/Finish – applicable to task that lack readily definable intermediate milestone or those for which the effort required is very difficult to estimate. For very short tasks, the start/finish percentages are usually 0 percent /100 percent. Example: flushing and cleaning, testing and commissioning, rigging operations, etc. 
• Method 4 – Supervisor Opinion – the supervisor simply makes a judgment of percent complete which has a problem that some supervisors are optimistic and the others are pessimistic. As this is a subjective approach and should be used only for relatively minor tasks and only where developing a more discrete status is not feasible such: dewatering, temporary construction, architectural trim, and landscaping. The other ways is broken down into smallest elements control and develop scale of definition (Scale Score approach) to eliminate subjective judgment. Otherwise, breakdown too many unnecessary small elements   will affect difficulty for control managed. This method could be adopted for current project of Mining Park which includes landscape activities: flowers garden, grass planting, drainage, construct jogging tracks, clearing and grubbing, main plaza, and painting 12 unit of heavy equipments (scrap).  Otherwise, the role of supervisor is required for visual inspection and validation the POC estimated which is submitted by the contractor to meet the earn value of project status.  
• Method 5 – Cost ratio – applicable to tasks that involve a long period of time or that continuous during life of a project, and which are estimated and budget  on bulk allocations of dollars and work hours rather than on the basis of production such project management, quality assurance, contract administration, project control. 
• Method 6 – Equivalent unit – applicable when the task being controlled involves a long period of time and is composed of two or more overlapping subtask, each with a different unit of work measurement such structural steel erection. 

Reference : Skills and Knowledge of Cost Engineering, 5^th Edition revised, Progress Measurement and Earned Value, chapter 34, Dr. Joseph j. Orczyk, PE CCE.

The first point I want to make is that although Engineering Economy theory is important, it is not absolute.  We can get lulled into a sense of security – punch in the figures – spit out the answer – everything is correct.   Wrong – the accuracy of the answer is highly dependent on the accuracy of the values being entered and the assumptions made.  In the situation above, it is unlikely that there would be a large difference since both operations are essentially the same.  The data and outputs both need verification and review before final acceptance and recommendation can be made.

Another aspect of the review highlighted that an option to replace the existing process with a permanent mechanical installation and altered operational procedures was rejected at an early stage of the process and prior to economic evaluation.  I have noted this before when Sponsors have pre-selected a “preferred” option and use the economic evaluation process to justify their choice.  This defeats the purpose.  Basically all viable or potentially viable options should be evaluated without prejudice or bias. 

The final point however is that the economic evaluation is only one part of a bigger picture of project selection. The economic information needs to be assessed along with a risk analysis, data sensitivity review and consideration of intangible factors in order to ensure a “sensible” option selection is made.

When the positive float is there, the work environment and the team seem more relaxed and act without that sense of urgency knowing that everything is on schedule.

When the negative float is there, the work environment turns to hectic and chaos and crisis management takes over. Once crisis management mode is entered management is juggling resources to crash and fast track to avoid not being caught by the critical path. Getting back on track will seem be more challenging than it was to stay on the path originally.

As a result of the last 9 weeks it appears the team has decided to walk down the path of thin ice. Granted there are those who wanted to float on thin air and there are other for whatever reason decided to drag the rest down to float on thin ice. As the program manager this makes me wonder how much control I had. How much of a difference would it have made if I reduced the team down to just only performing members? Would we be that much more productive if a majority of the human resources were eliminated? Was there something I could have done differently to motivate these people to encourage them it is much better to float on thin air than to walk on thin ice?

I started to get this feeling in the meeting when we discussed all the changes, but the second I lost control of the meeting and everyone talked about everything into one large conversation into several small conversation, and this actually went better and faster than I thought or would have imagined, I realized that we all have more experience in crisis management than project management. Just the idea of crashing the paper and re-baselining seemed a tall stretch and seemed to have every project manager reorganizing their tactics mid-meeting. To me the obvious thing to do would be to crash the critical path and re-baseline the remaining projects. The drawback of this is, this will actually lead to having to crash the other two remaining deliverables and would kill any float that is left for the mapping and the problem solving. By not crashing the paper at this point would lead to the failure of people signing up for CCC/E exam and realizing that they have missed their opportunity for signing up for the EVP, PSP, CEP, or CCT exams because the paper is required as part of the application which means our favorite mentor will have more students repeating the class.

The good news is that we actually know what the critical path is. The challenge would be to see if we are flexible enough to adjust. Considering the team is virtual and I am not sure everyone has a high desire to finish, we will really see by the adjustments, the re-baselining, and who actually applies for the exam who is really in it to finish or who is in it to the end.

• You don’t need an advanced degree in mathematical theory to perform risk management.
• Risk management can be applied in different ways suitable to project needs from easy/simple to complex.
• One of the more important elements of risk management is to establish a process for dealing with risk.

Methods of handling risk include the following:

• Avoidance
• Prevention
• Reduction
• Transfer
• Hedging
• Insurance

Back to my experience several years ago when I just graduated from my college, I decided to join health insurance. I realize that time I was not an expert to do risk assessment. But I just experienced the risk event when the doctor said I need to do the surgery five minutes after he said I was pregnant. In this case, my decision to handle the risk by insurance was the right choice as all expenses was covered by the insurance. In my opinion, this type of risk is known-unknown, which I know someday maybe I will get sick that’s why I join the insurance but I don’t know when it will happen.

For the last 6 weeks, I was dealing with an issue that related to supply chain for a project. This is not a new issue; however the situation has become a bit complicated as compare to 2 to 3 years ago where the similar problem at most will take 4 weeks to have it settled. This is also a post merger issue that I am currently very much keen on taking on to support based on the experience I have to smoothen the process. This issue really getting into me especially for last few days and it was only solved on yesterday.

 This has something to do with upfront clarification on requirement needed as well as have it planned and prepared accordingly in the supply chain system. It was not well fully clarified and things were in firefighting mode to overcome the problem. I have come across quite a number of such kind of situation and willing to take this up and to sort it out but to my disbelief, it takes more than what is required to have the problem fixed. The follow up effort was huge.  

 The key to this issue could have been the discipline and competences of the respective portfolio holder or person-in-charge to have all the necessary requirements clarified internally and externally before starting the project. Sometimes, external requirement may be easier to fulfill than internal requirement. To seek for clarification is inevitable to pave the correct way forward rather than fire fighting and the 6 weeks could have been easily saved for no reason. I believe as I go along, I would have more sleepless night.

 An organization of such size normally have it own set of processes to deal with flow of demand or request. PM need to have the knowledge or seek the knowledge from expert for the right process and right tools when a request was initiated. Total Cost Management could be used as a guide for project manager to have better control of cost as well as time needed for necessary flow of process. PDCA can be implemented for continuous improvement of a work flow or work process. The mind mapping exercise that we are undertaking at the moment, could be easily help to outline the process flow which can be generic process for any company to help to establish the understanding of the flow as well as tools and expert needed and also the output data. The TCM mapping exercise enable us to refer to database as well as authority we need to refer to for reference before further processing.

Team members look after each other. This is the one that I can feel during my absence. Some of team member keep contact me to ask my condition and I really appreciate that. More over someone was willing to help cover my tasks related to project control team as according to this stage the team requires delegated tasks and projects from the leader. The team does not need to be instructed or assisted. Team members might ask for assistance from the leader with interpersonal development.

In my organization, this change also gradually happens since the project control work change from financial controller to project support team which sitting in project office. Previously the cost report is produced in financial point of view which cost detail has only GL category. Project manager cannot dig down where the cause of problem when trouble arrives. So project change the way of cost accounting from GL base to activity base. This help project manager can monitor and measure project performance effectively. Moreover in my organization also introduced standard WBS which help the cost to be control in the same direction and able to reuse the actual data when new opportunity coming up.  

Another good thing from Skill & Knowledge of Cost Engineering book is the Figure 8.5-Activity Analysis.

We should consider this analysis in our daily work, not when we would like to cut the cost. We in this sentence means employee or project team member. This will help to cut the duplicate process out. If everyone in the organization do like this the process will be better fit, more efficient and effective then no re-engineering require which may cost a lot of money to company.

In my personal opinion, the major boundary that we are currently facing is that we are working in distance, and added with not having the chance to meet in person almost half of the team. This is like we are skipping the storming, norming, and even the forming stage with them. We step directly to expecting high performance without having time to know their characteristics and nature of working. The key to take the team performing is through communication. Through communication team leaders will know the team needs and difficulties, and can react accordingly to simplify things. Each individual understand what is being expected and that their contribution is indeed critical. Team meetings to share views and opinions will raise sense of ownership towards the project. Communicate the mission, vision, goals, and objectives; Establish the normalized structure and processes; Share on the team progress in terms of Team Development Phase so they would know that they are actually progressing; Continuous support on difficulties faced; are some of the norms that can be used to accelerate the team belonging.

In spite of the constraints that we have, I believe the team has performing quite well. We can see that we begin to seek assistance from our peers to get things done and task delegation has been take in place based on each roles and responsibility. Another nice thing to reflect is that up to this point we are rarely caught up in conflicts and frictions, even though on the other hand we have some people being terminated. This might bring ambiguity whether the team is actually performing as I might say it is normal for tensions and conflicts to take part into teamwork. But again I think this a positive gesture from all of us that the individuals leave from the team does not affecting the overall achievement.

Understanding the overwhelming nature of project planning and controlling, it forms a base to apply PERT estimation in order to derive the EAC figure in our report. The basic problem faced by project managers is to provide client the most accurate and specific forecast of both time and cost. The major flaw is that they don’t calculate the estimation using definite formula but more to highly “guess-timation” technique, which then causing them to most of the time perform under the plan. In addition, the incorrect cost EAC calculation will impact to wrong calculation of forecasted margin, as usually it happens to be too high or too low.

The three major estimations, optimistic, pessimistic, and most likely, give the project managers flexibility on achieving their target. This is because it gives an insight for them on which task that has the largest range and which is critical. It eases the project managers to determine on major decisions in controlling their projects. In addition, the three parameters will help to determine the percentage of probability or chance of completion based on pre-defined deviation from the average value. Another important thing is that those estimations will aid project managers in coping with project risk, either known or unknown, as well as in handling change requests. 

Based on the result, we are able to get the mean numbers and standard deviation, and decide on the EAC confidence level that we are going to present to our customer. Hence, there will be no more surprises to the customer, and at the same time allowing project managers to have flexibility in running the project instead of being tied up by one single point target.

2. Preparing the Data and calculating the basis of estimates.
If we can get more data (more than three) for each of equipment, it makes our estimate become more comprehensive. Comparing the data consist of minimum, most likely and maximum less powerful with data consist of most likely and standard deviation.
After collecting the data we continue to calculate the basis of the estimate.

3. Preparing the Escalation
Escalation is needed because we prepare the estimate for the project in the future (e.g. one until three years after now). To do an escalation we can use Nelson Farrar Index, or we can calculate base on inflation index globally or by country. Rule of thumb we can use 4-8% per year.

4. Preparing the Project Fee Estimates for Contractor
Project Fee for contractor normally is set on 8-12% of TIC.

5. Preparing the Cost Risk Analysis
Doing Cost Risk Analysis is easy using @Risk Software or Crystal Ball Software. By Preparing Cost Risk Analysis we can get the variation of an estimate and the probability distribution of estimate.
This is useful for decision maker to select which proposal from the contractor that best fit to the need.

6. Review and Validate the estimate
Reviewing and validating are very important to make our estimate more precisely.
We can use top down analysis that comparing our estimate with other project that has typical scope with our project. By comparing the cost and the scope can get the conclusion whether our estimate is on the track or not, and make a recalculation re baseline of the price to make our estimate more precisely.

7. Preparing The Post Mortem Analysis
We know that no project perfect. Mostly there is a change order in each project, because the contractor wont loss their money/profit.
Using a post mortem analysis we can compare the scope and estimate of the project comparing with the actual scope and cost of the project. The result of the post mortem analysis very usefull for preparing scope and estimate for the future project

8. Implementing in Knowledge Management
Meaningless if our skill and knowledge is known by our self. Uploading to the company’s knowledge management system become more benefit and powerful the company and other. To make continuous improvement in the company run perfectly and smoothly.

Humphreys book inspires me some learning points on how to develop forecasting of the schedule and cost to EAC that “developing the EAC should be a time phased forecast of future costs, not just a single point of reference”. Previous “Transformer team” developed ETC that was based on using whether the planning rate or rate of earned value which work was supposed to be accomplished.  

Otherwise using only planning rate or performance rate to try to establish schedule position is risky. Since performance measurement data is usually reviewed at a higher, more summary, level than where the schedule was develop, the delay of critical items that could impact the completion of the control account may not be visible.

 However, Humphreys book state that:  “The estimate to complete (ETC) will be developed at the same level of detail as the original budget that was prepared. The ETC should be prepared based on all available information at the time the forecast is prepared i.e : Schedule completion, performance to date, remaining work and its anticipate performance, rates, committed costs for material, scope changes approved which is not incorporates in the baseline, pending scope changes or known change requests, funding constraints”. 

It seems the preparation of a detailed EAC is time consuming whether using monthly variance analysis or reevaluation of all control accounts with remaining authorized work. Further, the development of the EAC should focus on what work has been accomplished rather than just what money has been spent. In order to accurately forecast remaining cost, there needs to be a firm understanding of work remaining which is shows from tracking the schedule.

Here is summary of some EAC formulas for the Road project. 

 Note : the value is applied by factors and represented value only

 The most of question from Mr. Client from hell is which EAC is desired to be selected and why?

First, I would like to understand the definition all formulas of EAC and Humphreys books explains the differences of EAC definition: 

• EAC optimistic formula assumes that remaining work will be accomplished as budgeted (BAC) regardless of performance to date.
• EAC most of realistic assumes that future work will be accomplished at exactly the same cost performance efficiency that has been experiences to date. This may not be an approached conclusion if applied at the completion of in starting phase.
•  EAC fleming/koppleman indicates the SPI usually leads to additional cost overruns which typically required additional resources to recover schedule position and possible delay in completion which will directly increase cost. If SPI > 1, the addition SPI would lessen the impact on the final EAC compared with using the CPI only.
• and I would like to add definition of EAC accurate formula is assumed that remaining work will be accomplished as the plan (baseline) regardless of performance to date. I think this EAC is unfavorable due to potential risk in the remaining work and the likelihood of various scenarios occurring a range of possible outcomes risk.

As the project was just commencing 5 weeks  ago, SPI > 1 and the trend of cost/schedule is going to on budget and schedule , thus the definition of EAC optimistic would represent  the current project forecast status.

Further, in regards action plan is required  prioritizes attention on the accounts that have the biggest potential for improvement if the performance could be brought back to plan from its current level that can determined by subtracting the EAC best case and worse case. The magnitude of the answer indicates how much potential improvement of the following factors:

1. How large the account are
2. How much performance is varying from plan
3. How much work is remaining

  Reference : Project Management using Earned Value, Gary C. Humphreys, Humphreys & Associates, Performance Measurement calculations, chapter 34.

 I’m currently working on tracking cost and schedule performance of the road development project which is introduced and used in my research of paper with topic risk management. Actually, I would like to use this project as first trial that I would like to implement the earned value. When the project base planning includes the risk management plan was completed to develop and the project construction has been commenced for 5 weeks, it’s continued to conduct performance measurement against cost and schedule.  For this purpose, I use the project control format from transformer team to evaluate statistically how the performance is progressing and to develop accurate forecasts of where the project is headed. The summary performance and the analysis are described below:

 SPI = 1.39 indicate that the total value of work is ahead 39% than the work was planning.  Otherwise, positive SPI is not guarantee trouble free as analysis information from the CPM needs to confirm the schedule status through total float value. The total float value is 7 days means that the project ahead schedule on critical path. It is explained that the original construction schedule is assumed using contractor small fleet. Otherwise, the mitigation plan recommended eliminating the high risk on safety using small equipments working around PT Inco heavy equipments where the project is located adjacent mine active area. For this purpose, we define an opportunity to allocate PT Inco heavy equipments to construct the main load activity  - loading and hauling overburden and ore which is critical path activity of project result the current project progress 1 weeks a head of schedule by using larger equipments.

CPI = 1.17 indicate for every $1.00 of actual cost we earned $1.17 worth of work planned result cost achievement $51,000 under budget. While CPI looks performance in the past to indicate the efficiency with work has been accomplished, the TCPI indicates 94% performance effort will be required in the future to achieve the estimate at completion.

EAC P90 is forecasted slightly under budget ($19,000) and 2 weeks a head of estimated time completion.

Note : the value is applied by factors and represented value only

If I see all parameters of performance measurement shows that the project has good progress. Otherwise, It doesn’t mean that there will be trouble free. I look the trend analysis graph of SPI and CPI shows that the plot is decreasing from starting of the project. I think it is required to initiate an analysis of each activity of account level instead of summary level, define and eliminate any potential risk of the remaining works by implement the risk management plan that was previously developed. Especially attention should be focused on those remaining risk which may have a significant impact on the project. I believe that an initiation to keep the good performance index and improve the trend CPI/SPI in the beginning of project is important as the increasing construction work will cause improvement of the performance parameters will be more difficult and need harder efforts.

By using this system the Main Contractor having advantage as follow:

1. The main duty of Supervisor from the Main Contractor will only focus on how to cope with target schedule, quality and safety issue since productivity (cost issue) have been taken by the Mandor.

2. Alignment of manpower resources to cope with balance works will be easily done. There is no formal employment agreement between the Main Contractor and the worker, the Main contractor have luxury just to instruct Mandor to reduce and adding the number of worker and Mandor have informal authority to do so to his worker. With above condition the Main contractor will not take too much attention on workers productivity, this will be under Mandor responsibility and he will work hard to ensure that he will not have any losses. The main Contractor will focusing on how to manage the Mandor on high level not up to such detail. The recruitment process of the worker will be mainly depend on the mandor. The lead time for worker mobilization will be less since there is a lot of a skill worker surrounding Jakarta (from West/Central/East java) which may come in short time under Mandor umbrella to filling the gap in resource allocation.

As consequences the development of production management system on the Main Contractor was shaped by this benefit.

 Based on the observation, the most challenging part for Indonesian Main Contractor when they are going to operate in Middle East is how to manage directly daily labour not through mandor anymore since not allowed by local the labour law. The benefit of mandor systems become the weakness point of Indonesian Main Contractor production management. The Site Construction and his team now have to deal with daily labor productivity. In addition to that to replace the incompetent worker will take at least 2 months.

The possible solution for this situation are : Improving recruitment system up to worker level, Improving the capability of Site construction team to manage daily labor by having internal performance related pay system to the worker, the team has to take full attention on micro planning (daily activities), the micro planning schedule has to consider to keep work flowing so that the worker will always productive, the performance report (EVM) have to be created into every single repetitive activities therefore the supervisor will able to see his own performance and make comparison from his previous typical activity to ensure there is continuous improvement.

I am experiencing the most busiest week of the month. My organization has engaged 3 more projects in this final finance year of 2009/2010, worth approximate 1 million dollar, that have to finished on June 2010. 3 months more. Either it was luckly or flaws move, it has been appointed to the same contractor. So easier for book and adminstration such invoices. But it would be seem not too fair because the contractor did not have a competitors. The PQS (Professional Quantity Survey) has helping to confront the contractor’s price back on ground, but still for some administrators the contractor’s price was too high.

The thing is, when you submitting your price. it would not be the same as the other place. Eventhough the projects was in the same city, such Jakarta, there were so many items that need to be consider of, such securities (local securities, for some Asean cities, this local securities played a big roll of unpredicted cost, because they do not any standard, different location has different rate, some local said as local retribution). In project management role and in risk analysis assesment, we can put this unpredicted cost in known-unkown. They may have add this beside the profit. Besides that, they also put their name on quality and schedule to finish which it cannot be change and unnegotiable. Yes, not like other place, my organization has this standard that we cannot tolerate unfinished project within time. If they might happen should propose long-long way before its due. That is why I am aiming for EVP to get understand more about forecasting a project with performance based.

Another thing that need to be considerable when submitting quotation, the working time. The more squeezed working time, the more high cost that you would get. In my organization, timing is really important. The contractor shall no objection when I say STOP for an hour or not working for A day, because we in facilities department, we are the back bone and support team to the whole organization community, therefore we will NOT want for the contractor’s work distrubing the whole community. With this circumstances, if you can play with your calculator, how much percentage that you give for this kind working environment, while if you want to maintain the quality, the best practice is you should hire daily worker rather than lump sum workers.

This was so intresting to me that I published it as a blog of the week, when I am still facing the problem with contractor’s whose has been servicing my organization for almost 15 years. I am trying to related this to my project management experience and I am sure that the contractor should have make a profit if not, why bother working for clients that so unique and has limitation in time and space.

From the Wikipedia, Frame Agreement is defined as :

“A frame agreement is a special type of rate agreement entered with a set of suppliers, with a specific subset (may be just one) chosen as preferred. Frame agreements possess similar clauses as standard rate agreements with a few additional (optional) points such as

• decreasing prices over time
• quality control obligations for the supplier
• minimum or maximum offtakes during the validity period
• provisions for vendor-managed inventory”

I could not help but trying to list out the pros and cons of both buyer and seller that is engaged in a Frame Agreement.

Advantage for Customer:
- Discount that customer will gets
- Fix Budget that customer could plan with fix amount to spend per year
- Save time in negotiation
- Expect better service for long-term partnership
- Reduce risk of price increase

Advantage for Supplier
- Guaranteed Market share :  Something that my company is still benefiting from the radio base station that we are providing to our customer in most Asia countries
- Fix / guarantee revenue : May not necessary be good margin but at least it keeps a consistent income over the years
- Simplify negotiation : Minimum time and effort needed in negotiation as the agreement covers a few years
- Reduce risk of price decrease : As technology advanced, hardware prices  decrease and this definitely benefit us as the seller.
- Resource competence planning : Competence resource could be planned and developed in advance knowing the utilization of the resource is of certain level.
- Resource utilization
- Increase investor’s confidence : This is definitely one supporting document that the comapny could get bank loan for upfront investment for hardware / software cost that needs to be  incurred (I think)

Disadvantage for Customer
- Risk of price decreasing
- Unclear scope
- Not align to market as solution could be out-dated
- Commitment of out flow cash

Disadvantage for Supplier
- No flexibility in pricing : Although this has not happened but there is certainly a possibility of hardware price going up if raw material price is increased.  Risk of bearing all the extra cost.
- Customer go bankrupt : Unlikely to happen but is a thought that may happen somewhere in this world if customer could not pay
- unclear scope : As agreement covers for few years, unless agreement is written in very detail that covers now and future known and unknown situation, scope may change and unknown scope could become conflict or extra cost to the seller for additional work which most of the time happens in my organisation but recently this is changing as there is close monitoring of Change Request arising from customer and trying to turn them into Add-On-Sales
- less ability o react to other client in term of resources : As resource are tied down on this long-term frame agreement, resource allocation / re-allocation for any new, urgent or more business critical projects may become a challenge.

There is an old saying “time is money”. This is never more evident than in project management and in the close relationship between project schedules and project costs. Increase the duration required for completion of the project, and the project costs will go up. Decrease the project schedule and the project costs will invariably go down. In my workplace a large amount of emphasis is placed on “controlling” project costs. It is therefore surprising that not more effort is put into developing and maintaining accurate schedule control as a direct way to controlling these costs.

 One of the issues raised in Humphreys is that the level of competency in project “schedulers” is often lacking. Often people are put in this role without the necessary understanding of how the project will be physically executed. They may understand how to utilize the software package but fail to get full benefit from the scheduling process because of a basic lack of technical understanding related to construction. Alternatively they may have an understanding of the construction process but fail to fulloy understand the scheduling importance, tools and functionality.  From a cost benefit perspective, investing in competent and trained professionals that can bridge the gap between construction process and schedule management, to operate and maintain accurate schedules, would likely result in significant project cost savings.

Development of proper project schedules also forces compliance with other necessary project planning deliverables, namely accurate scope definition of each activity ie WBS Dictionary, establishment of activity durations, definition of activity interrelationships and assignment of responsibilities. This in turn leads to what I think is probably the most important or desirable outcome – alignment. By this I am talking about having all project activities defined consistently in WBS, Contract scopes, control accounts, schedules etc. This consistency and alignment provides clarity and reduces confusion and ambiguity. It is often easy to hide behind confusion and ambiguity (just look at our current team) but with clarity and definition, projects become easier to execute. Up front planning, proper development of project scope and schedules, and management by these methods result in far more effective and efficient execution of projects.

I am not sure at this point on how to get the team motivated. I don’t have the time to chase everyone down, especially in a virtual team. As a result I tried to lead by example and appeal to people’s sense of professionalism. Apparently that has failed. I still lead by example I guess that is the excuse for everyone saying I am the right person for the job. In the short-term I disagree, because if I can’t get others to do the job, it doesn’t matter how much effort I put into the work, I shouldn’t be leading. In the long-term, I think leading by example would motivate people to jump on the bandwagon to finish this project.

As a result of failing to appeal to a sense of professionalism, I am reverted to the most negative tactic I have, enforcing the team agreement. My fear is the team agreement is too strict for this team as integrity is bleeding out all over the place.

So I search for my next option to motivate people to perform. I need to find a virtual team building exercise and get everyone to participate. How do you get people to be motivated about something that you are passionate about besides leading by example? How do you get people to take this project and treat it like their job or their future depends on it? Don’t people realize that their sponsors are expecting results?

Right now I am sick of being a crisis manager. Since I am in crisis management mode, perhaps it is time for the sponsors to get a progress report?

We have no control of the AACEI dates and no one so that coming, so that should go into my unknown unknown column in my risk register and now has to be modified. Due to us not knowing where we stand by not having an accurate report yet or even getting everyone to turn in time sheets on time compounds the problem of where are we at? Week 8 into a project, we have no idea where we are at, we have an idea from 8 months ago of where we are going, and a good portion of the team is lacking the integrity to do the job.

I still believe we can get the job and make the deliverables happen, but I think we need to go backwards to go forwards. I think this is the time where we need to re-baseline and revisit all of our inputs to see where we are really at. I know good Project Managers can see this as a way going forward. The problem is, the staff doing the work has a hard time to vision doing repetitious task as a forward moving event. How does modifying the baseline from 2 months ago help us go forward? Can’t we just correct the problem to go back to the original schedule without taking into account the now known unknown unknowns and known unknowns? The problem that the Project Manager has to sell his team is to be successful in the future they need to revisit the past to know where they are going in the future.

In the coming days that will be the direction of this program, we will go backwards to go forwards because if we don’t we are destined to fail based on original plan.

The proper level of control account is a key factor. It should be trade-off between management visibility and system operating cost. When I look into my organization, we have network roll-out projects and I think we set up the control account quite appropriately. 

We structure WBS: 2nd level by network system and the 3rd level by physical site or cluster. At the 3rd level sometimes it is too much detail because it has short schedule with less than 100 USD budget and very low risk on it. So we group many sites into a cluster which allow project manager and project control are able to monitor and follow-up progress in less detail but enough information to control. Moreover, under WBS level 3 our system (SAP) allow us to check cost of each work package. 

In case that we get a very large project, it may require many project managers and we structure 2nd WBS level by project manager. This will allow each project manager to take fully accountability on their responsible area. At this approach, we can measure each project and project manager ’s KPI in order to achieve target.       

The above statement seem to be easy process that we have but it doesn’t like that. Last year we worked through an internal project management development program, we try to standardize WBS structure after struggling with many ways around back and forth in the past. This standardization is primarily based on project management point of view and judgement in order to control over project with balance of visibility and maintenance cost as Humphrey book mention.   

To next chapter 5: Work Teams,    

This content is not new for me. Theirs advantages are well-known and familiar but its application often ignoring. I think I will propose this concept to improvement team in my organization because last year our project office got bad feedback from project members about project communication and team spirit. One cause, I think, is the specialist of our project member, this make our project team falls apart of geting good cooperation.

How to solve it?  Below is the main ideas to create team building
(citation: http://www.time-management-guide.com/team-building.html and http://humanresources.about.com/od/involvementteams/a/team_culture.htm)     

• Communicate project goals with clear, understandable, and accepted by each project member.
• Assign responsibility without overlapping
• Create trust and openness environment in project team
• Empower project member by saying thank you or show appreciation of each team member’s work
• Reward and recognize on teamwork practices
• Avoid and be careful on interpersonal issues

Note: I will try to catch up blog posting that I lag 1 week later in the coming week.

This week some significant developments took place with the team. The level of participation seems to have been improving. Those who are willing to show up are showing up, and the norming of the performing small group was happening. This was the case with the Transformers as the team went along at least at some level, some of the team members were teaming up virtually, to be the leading pack to lead as Transformers went along with in week 8 onwards with the assignment and commitment as well as the governance of the team agreement and spirit in place. However, there are still non participative members for the current team that need to get influenced by the moving pack by committing time to the assigned task accordingly and with full commitment and discipline. The non active member have to at least start from some where to feel the momentum and gain momentum along the way with the influence of the members who are really performing. One way is to at least communicating and interacting with peers as well as participating in net meeting that turn out to have very good interaction and discussion as well as sharing of lessons learnt.

Communication from the PM was clear and loud as the exercise the power assigned to him in the team governance agreement. Team governance and leadership have to be exercised appropriately to ensure the progress of the team so that the team will not fall into the trap of failing. In this case, leadership was not only referred to those who are holding the PM role in the team, however this is referring to professionalism as an adult to gauge on the capacity and capability at times to make matured decision that is rational that bring the team to progression. The maturity and leadership decisions that including making constructive contribution, completing assignment as well as quitting the team for the good of the team. This is in fact the reflection of what we are doing in our life at home, at work and in the society.

While working on current assignment and teaming issue, next milestone that could dampen the team spirit would be the exam. The choice for sitting for exam; who, what, which, when, where and how; could tear the team apart which was happened to Transformers even for the leading pack (performing small group) and eventually leading to disbandment of the team.

Level of playing – revisited

At this point, the team members can be categorized with following categorization:

1)       Play to win

2)       Playing not to lose

3)       Play to lose

4)       Not playing 

Each and every player need to conduct a self check if we are still playing to win!!  

There are obvious characteristics shown by a player who is “playing to win”. Quoting from an article by self improvement writer, Carolyn McCormick on Play To Win vs. Playing Not To Lose, which is worth to share with.

reference: http://ezinearticles.com/?Play-to-Win-Versus-Playing-to-Not-Lose&id=2543030  

Here is how to Play To Win vs. Playing Not To Lose

Are you avoiding fear or avoiding risk? If you answered yes, then you are playing not to lose rather than playing to win. Henry David Thoreau wisely said, “Most people live lives of quiet desperation and go to the grave with the song still in them.” It is human nature to feel safe in a certain comfort zone. We value life being predictable to a large degree. We value sameness, structure, stability and security. Too much of these qualities, however, and our lives become stagnant. By attempting to maintain our comfort zone to feel safe, we actually begin shrinking it. The same applies in business. Unless we step out of our comfort zone by taking risks, learning new things, trying new adventures, we will stagnate. Avoiding fear in our lives and business begins to shrink our comfort zone. Until we decide to stretch ourselves, our comfort zone will continue to shrink with time, resulting in failure and unhappiness in our lives. It is healthy and natural to coast at times. It is important to remember, however, when we coast we are always going downhill! Here is a hint: If we are not playing full out, then we are not playing to win, but rather playing not to lose. This week, ask yourself, “What risks am I avoiding in my life or business?”

Playing to Win Means NO EXCUSES! Playing to win means deciding you will attract and achieve exactly what you desire this year — No matter what! It means choosing to create a life and business that is thriving this year. Playing to win means choosing to believe you can achieve more income this year; refusing to quit; refusing to think you are limited in anyway by external factors. Playing to win means you know this can be your best year yet — and it’s not too late to jump on it and achieve any big and exciting goals that you may have put on hold — until now. 

Playing to Win Means Becoming Comfortable with Uncertainty: For many people these are uncertain times. If we allow the external factors to decide our certainty, we feel powerless to control situations. We are like a boat being tossed about on the high seas without a rudder to guide us. When we shift our beliefs to say, “I am certain I can succeed no matter what because I know what my priorities are and I will pursue what I value most in life,” we now have a rudder to steer our boat no matter what situations threaten to toss us around. We enjoy an internal certainty that cannot be rocked no matter what is happening in the outside world.

 Here is summary of four different roles of project manager able to assume during a project i.e. :

 Leadership involves the ability to conceptualized the vision and direction of the project and then be able to communicate and sell this vision to the team members and other stakeholders. A dialogue with the team members on the subject of the project’s purpose and create an atmosphere in which all team members are encourage to ask questions about the purpose of the project and offer opinions and clarification. The project manager must gain credibility and demonstrate managerial actions and behaviors that are consistent with verbally espoused values to create a state of comfort and trust for team member to take the leader and involve the task without holding any reservations, doubts, or hesitation.

Management role ensures the project is completed on time, within budget and at acceptable levels of performance involves creating the administrative procedures and structure to monitor completion of the work without stretching into the realm of excessive bureaucracy. It is important to balance the need for structure and the need for autonomy and flexibility.

Facilitation to help others get their work done and is often achieved through the art of influencing others. It involves communication abilities, conflict resolution, the ability to actively procure necessary supplies and resources for the team as a hole and the ability to motivate both individual team members.  

Mentoring or Coaching assistance takes the form of guidance and encouragement person either formally or informally in various task. It involves being role model who demonstrates desired skills, behavior and attitudes, interest in the professional growth of team members, offering suggestions problem solving approaches, providing feedback and offering motivation in identifying and achieving long term professional goals.

 Bottom line is the project manager needs the skill of timing to determine when to move from on role to another since the projects have different needs different times. From my experience,  it is important to keep the leader attitude and behavior to open communication and be welcome to facilitate and coach regardless the employee is under performance so as team work they could be learned and toward motivating their self to meet the organization cultural and objective.

Reference : Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Management Fundamentals, chapter 22, Dr. Ginger Levin

Mr. Douglas Mc Gregor introduces the professional manager should examine managing human resources a set of beliefs or assumptions of what people are link which are developed two theoretical  construct of nature of man in relation to his work, known as theory X and theory Y. Theory X includes assumptions people has an inherent dislike and avoid of work if possible, must be controlled or threatened punishment toward organizational objectives, prefers to be directed, wishes to avoid responsibility and control by externally imposed. Theory Y includes assumptions people are self motivated, self direction and self control, not only accept but also seek responsibility, creative and intellectual potential is partially used.

However, I think the important thing is how the leader create and develop working condition and organization’s culture which is represented from the leadership  style will drive nature and motivation of employee in relation to their work whether they will go to theory X or Y.  The leader shall show the imply within a climate of trust and respect to  allow the employee is capable of putting wiling effort,  controlling their work habits and opened up a wide rage of possibilities for new managerial policies and practices.

In addition, Mr. Frederick Herzberg studied that the real motivation resulted from the worker’s involvement in accomplishing an interesting or meaningful task, not just from the working conditions or environmental factors that are peripheral to the job. The managers need to recognize and motivate to increase the challenging content of the job to grow employee skill and in a feeling of accomplishment. Otherwise, In term of project characteristic is required employee who has specialization and experience on the project role such project control, material coordinator, project engineer, etc. How is the challenging content of the job implemented such as how is rotation program carried on without suffering project execution?. Integration of training program to improve their competency skills and behavior , assign for  larger project in respect of their performance evaluating or a project which is required specifically characteristic  should be considered to improve team skills and motivation working on the desire organization’s culture.  

 The question is how met effectively the individual need and organizations need as these two  sets of need as the most of organization contents bureaucratic nature of organizations and their hierarchical structures. Looks Indonesian cultural especially back country where communities is developed with high tolerance each others, respect sociality value and high commitment to conserve inherent culture ; the organization shall create conducive climate of working conditions which is approached not just formal bureaucratic and hierarchical structure but also adopt informal approach  such as informal sport exhibitions or social activities who empowerment of  the employees interesting as socialize media to each others to support a climate of open communication and trust in all interpersonal relationship, to support productive team work  to meet the desire organization’s culture.  

Reference : Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Management Fundamentals, chapter 22, Dr. Ginger Levin

Correlating it with my paper topic on Agile vs Traditional Project Management, I’m curious to know whether Earned Value is suitable for agile projects. The dynamic and continuous adaptation environment of an agile approach will cause them not to have a solid baseline plan as it will keep on changing throughout the lifecycle. Initial phase of an agile will mostly based on assumptions because projects are unprecedented. Therefore the actual progress will be measured against invalid planned value and will not be able to generate reliable progress tracking. Moreover, as the scope is not clear at the beginning, some reworks are indeed expected for completed tasks. The rework may cause additional overrun and contingencies without earning any value.

Interesting to find there are a lot of people discussing on the application of earned value in agile projects. Agile Burn Charts, which indicate the status of amount of tasks being completed against those outstanding, is mostly being used as a technique to attempt earned value. Moreover, to have an in-depth analysis against expenditures, planned and actual cost figure can be added into the chart. The approach of developing the chart is focusing at the highest level of the triple constraint: scope, time, and cost. It does not based on extensive WBS breakdowns and detailed activity based cost estimating.

The validity of the chart as the basis for earned value in agile software development project may be recognized. On the other hand, for a large telecommunication industry to analyze their earned value using a “highly assumed” progress chart might be very risky. The comparison will become one of the parameters to determine which practice should be adopted by Telco industries, which is basically the concept of my paper.

However, although this changes are not for Owner’s approval, there are so many tangible and intangible risk that might come from this changes and become our concerns.

First and the most important part of the project is, there might be lack of communication between the old members and the new comers of the managements, or at least, lack of perception of finishing the project.

From what I’ve learned of the PMP and the CCE class, any project changes can be accepted in the beginning of the project with less cost, and this cost will increase significantly if the changes occur during the project running or at one last stage before the project finishing.

The main consideration is How to handle this new risk……? Currently What I’m doing now is inserting all the new risk and whatsoever impact that might come to the contractor management. And surely, I’m requesting all the project progress in to more detail than they have submitted before as a report for this project both for contractor management performance and technical report.

In the contract, Both the Owner and Contractor had already agreed that each full day of delayed delivery will be impacted on Contract price deduction. However, any price deduction that comes from delayed delivery is not the purpose of this project, but to have the project on the right track and delivery on schedule.

I am very interested in the above statement, moreover seeing the actual activities of each team member.
Reviewing the work progress that have been done in the team, as Paul said, have shown a better direction.
In this case all members of the team actually has the same case. All team members have a lot of activity that must be converge in a network in one point.
Each member has activities, namely:

1. Office work during working hours.
2. Tasks as a team member: writing in the Bog, work problems, correcting the problems, preparing the paperb, served as the PM or DPM, make weekly reports, attend weekly meetings.
3. Doing the activities of the house after work hours such as: activities with family members at home or activities with friends.

Overall, the activities have equally strong priority to be implemented timely and appropriate, so that the stakeholders are satisfied with the results achieved.
Merger activity in one of this network in a single point to be done in an orderly and timely fashion will lead to the risk of scheduling.

At execution, when we began to regard an activity becomes more important and should be resolved quickly and to ignore other activities, then what happens is a shift schedule that will result in delay in performing these activities in sequence.

One activity of late, the results of a subsequent activity will telambat too, and so on. Not to mention the limited availability of labor.
It needs to be done so that these activities can work well is:
1. Create a more detailed schedule and measured in accordance with the existing allocation of time.
2. Undertake work in accordance with the schedule agreed upon itself.
3. Commit to doing the activities in a timely manner.

So :
1. Do your problem and send it on Tuesday.
2. Review your peer solved problem on Wednesday.
3. Write and upload your blog before Saturday.
4. Prepare yor paper in time beetween.
5. etc.

I believe all members of the team can do it in a timely manner in accordance with its commitments.

I will take some beneficial of Managed Document Control, based on my experience in AACE, as PM of Problem Solving, and My Daily Work.

• Create the efficiency. One realizaation of doing Document Control is by creating Central Document Storehouse, in AACE we use YahooGroups, in my daily work we use shared folder. By controlling the team member to store a document which containing latest information that’s relevant with client’s case, as well warranties, conditions of contract, and other intelligence, we can boost efficiency on our daily work. When we’re facing a new request for tender (which the equipment quite similar with previous project), we might open an old document or template that had some characteristics or language that would be needed in the new document. The only one that we need to do is replace the old information with the new requirement, delete the parts of it that’s not relevant in new tender, and save it with the different name. Not only reduce time-consuming, also we can minimize the risk that inappropriate client names or competitive information may accidentally be included in a new document. That’s why on Problem Solving’s Project I put the standard template, with the standard name, font size, structure, in the share folder.
• Traceability. For us (pre sales persons) one important key on daily work is Traceability. The pattern of our customer is they keep changing their requirement and the gap between revisions could be a day, week, even month. Here it is the challenge, we must keep our costing in track, compare with the previous one, to avoid any mislead price to the customer. How to find the latest valid calculation? The Share Folder is the answer (considering we cannot remember each calculation on each quotation in past).
• Boost client satisfaction with custom documents. Beneficial also will be achieved on our Customer’s point of view. Documents can be sent easily to clients for review and comment with fully of confidence, no matter how much documents should they review, since all of us using the standard template and has capturing lesson learned from mistakes that would be complain by customer before. 

The Risk of not implementing Good Document Control was happened in my new department. They don’t have a common structure and flow for document itself. Me, as team member, meet a lot of obstacle on finding which one is the latest BoQ from Customer, How we costing the same equipment from previous tender, even how we give the document number. Mostly each detail was kept in their own folder. I have proposed Document Control of this new department, its approved and will be present next week to meet team requirement.

Schedule planning is an iterative process in translating activities from work breakdown structure into a logical structure with time, resources and budget. The detail activities are varies depending on the project phase and reporting requirement, e.g.:

(1) asset planning – Level 1 Milestone Level Project “Construction” Schedule The format may be a list, summary network, or bar chart and may contain minimal detail at a highly summarized level.

(2) conceptual FEL – Level 2 Project Summary “Construction” Schedule Composed of summary project activities depicting critical work and other management selected activities, typical summary level activities include engineering and design, procurement, major equipment fabrication and delivery, major structures, installation, start-up, and commissioning.

(3) preliminary design FEL – Level 3 Project Detail “Construction” Schedule Display the lowest level of detail necessary to control the project through job completion, supports the planning effort for determining and assigning resources.

(4) execution phase – Level 4 Short Interval Schedule

most likely is used by construction contractor as a detail and short-cycle plan, a two-to-six week look-ahead schedule that shows resource assigned, detailed, and work activities, and is used for planning and progress reporting purposes, review and assignment of current week work plans, and advance planning for near-term future week work.

In several circumstances when the approval process on decision gate takes longer time than it was scheduled, the project team is requested by decision board to maintain the project completion date, or accelerate the schedule (from the realistic schedule).

Accelerating the engineering works in FEL stage could be planned by reviewing the activity logic schedule, where possible overlapping several works, i.e. studies & equipment index ; then expedite the critical activity, i.e. develop P&ID and plant lay-out, also paralleling activities as much as possible such as the development of specifications for several engineering discipline, e.g. mechanical & piping. This should be balanced with the resources allocation and budget, if the work is executed by engineering third party.

Another significant issue for schedule acceleration is regulatory & permitting compliance that the activity should be started as early as possible, i.e. when sufficient project execution plan, P&ID and plant lay-out is available in the early of preliminary design FEL.

Accelerating the construction phase could be planned by securing procurement of equipment in the critical path as early as possible, e.g. prior to detail design phase. This could be accomplished by identifying the Long Lead Item (LLI) in preliminary design and secure decision board approval to procure the LLI in advance of the detail design process. This LLI procurement will be managed by project team, then hand-over to construction contractor prior to construction schedule. In this case project team is exposed to the risk of equipment delivery delay to site, therefore sufficient schedule contingency (window) should be included in the construction plan, to minimize potential delay claims by contractor. An interface plan should also be developed, that document the responsibility and interaction activities and its schedule of each party – project team – vendor/supplier – construction contractor.

The proposed construction activity logic by contractor on the contract then should be reviewed thoroughly to ensure that the resources allocation and activity logic is achievable.

Reference:

Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1st edition, AACE International, chapter 7, edited by John K. Hollmann, PE, CCE

Skill & Knowledge of cost Engineering, 5th edition revised, AACE International, chapter 13, edited by Dr. Scott Amos, PE

Project Management Using Earned Value, 1st printing, Humphreys & Associates, Inc., chapter 17, Gary C. Humphreys

The Risk Management Plan should be developed in the early phase of a project, e.g. conceptual FEL (Pre-FEED), that documents who, what, when and how the Risk Management will be applied to the project. The process includes: 

 (a) Planning,

 - develop the leadership team, e.g. project manager, risk coordinator who’s responsible to maintain risk register update and communicate to the rest of the team, risk assessor/specialist (if required) who’s facilitate the quantitative analysis and contingencies determination, 

 - integrated project team member and end-user (e.g. operations team), to identify risk and provide input for analysis,  

 - define the process, e.g. develop risk register contains list of risk factors, mitigation plan, and risk owner – quantify risk factors/drivers – mitigation & monitoring plan

(b) Asses Risk factors,  

- using brainstorming session, where possible to include stakeholders, develop the risk register, this process could be facilitated by risk assessor/specialist

 - risk factors could be classified, e.g. threat (negative impact) – opportunity (positive impact) – uncertainty (may or may not impact the capital and/or schedule);  definition (inadequate project scope definition) – technical (challenges that may impact the project) – organization (related to system, process, people) – stakeholders (external organization);  general-project management-design – procurement-construction-operation-HSE-etc (as applied) 

- determine the range for qualitative analysis, i.e. low (<5%), medium (5%<>20%), high (>20%) of the likelihood, schedule (from the total project schedule), capital (from the total project capital) and O&M cost; then analyze qualitatively the likelihood and impact of each risk factors 

 (c) Quantitative Analysis, 

- assign score for low – medium – high (as agreed by team)

- weighing the likelihood – schedule – capital – operation & maintenance cost (as agreed by team),

- determine the importance level (by adding the above weighted score) for project team to provide more focus on preparing quantitative analysis on the medium to high importance, 

-  develop simulation model (i.e. using Monte Carlo) to generate potential outcome range of project capital and project schedule (i.e. Probability of 10%, 50%, 90% – P10, P50, and P90) 

 - the P50 and contingency values will then be presented to Decision Board at the decision gate as commitment from project team to deliver, and for management to allocate the approved fund for project execution at later date, 

(d) Screen risk factors and Mitigate Impacts, 

- defined the immediacy (i.e. top ten risks) which project team intend to monitor closely and to be reported on project baseline plan, (this shouldn’t be the top score risks, but could be risks that require immediate action to mitigate)

- determine the mitigation plan and target date to complete, risk owner who’s responsible, during conceptual FEL focus shall be given to complete mitigation plan which is immediately required, the balance could be completed during preliminary design phase, 

(e) Develop Risk Mitigation Plan,

- document the communication of risks, mitigation action, and update with closed date when complete 

- update the risk register every month, or as appropriate.

The risk management plan is a continued updated document along with the project scope definition, more risk factors and mitigation plan could be added as project team identify in the later project phase. A simplified conceptual FEL risk register example is enclosed, that team agreed to allocate weight of likelihood -5, schedule -7 , capital -5, O&M -3; score for High -6, Medium -4, Low-2; then importance (risk score) of each risk is calculated as: [(5xscore of likelihood)+(7xscore of schedule impact)+(5xscore of capital impact)+(3xscore of O&M impact)] / (5+7+5+3). A more attention and consideration shall be given to medium up to high importance risks (4 to 6 on the score).

Conceptual Phase Risk Register

Reference: 

Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1^st edition, AACE International, chapter 7, edited by John K. Hollmann, PE, CCE 

Project Management Using Earned Value, 1^st printing, Humphreys & Associates, Inc., chapter 3, Gary C. Humphreys

According to the Wikipedia, there are some terms that can be incorporated for quality management. These are:

• Quality Improvement can be distinguished from Quality Control in that Quality Improvement is the purposeful change of a process to improve the reliability of achieving an outcome.
• Quality Control is the ongoing effort to maintain the integrity of a process to maintain the reliability of achieving an outcome.
• Quality Assurance is the planned or systematic actions necessary to provide enough confidence that a product or service will satisfy the given requirements. 1

In our organization the quality mgt is a must for each and every project and it is done internally. For every project, we do secure extra resources only for the quality audit of the completed work. 30% – 40% sites are selected randomly from all the implemented sites and thorough audits are done with a well defined audit process and certified auditor to maintain the quality of work.

1 Wikipedia [http://en.wikipedia.org/wiki/Quality_management]

• Gather and understand the needs of the customer.
• Manage and monitor any changes to requirements or expectations.
• Document what will be delivered within a Project SOW or Specification.
• Ensure acceptance of project deliverables by customer.
• Provide the interface with all stakeholders.
• Manage the interface between Ericsson and the customer.
• Liaise with the marketing units, local companies and regularly report to the sponsor.
• Manage varying end customer expectations both stated and unstated.
• Clarify definition of mandate, details of contract and manage contract variations.
• Manage the relationship with internal stakeholders and external customers to monitor and manage any changes to requirements or expectations.
• Ensure acceptance of project deliverables by customer.

This is a well defined scope management process that gives a project manager a clear picture of what needs to be done while dealing with the scope management part of a project.

Even though, the scope management is outlined for the PM’s in our organizations but it does not always gives you the total guideline for the project scope management. For this very knowledge area, the whole project can go wrong if the scope is not defined properly. In some cases, it is also very difficult to identify exact scopes where defined assumptions can help.

Just to give an example, my last project was planned to be finished within 4 months from the date of opening the LC by the customer. The scope was clear, the deliverables was defined…. but the problem was – the customer was unable to provide sites in timely manner. As a matter of fact, the project took almost 7 months to finish. For this time period, the resources was kept unutilized most of the time and hence ate up the budget accordingly.

In most cases of the previous projects, there was no action taken for such occurrence and most of the time it did hit the margin of our projects. But from the specific project I mentioned above, I have introduced the effective use of Change Request issued fro the customer for such occurrences. In total 9 approved CR’s were secured from the customer with which the project team gave the opportunity to the commercial team to regain the loss / effect in margin caused by the customer.

Defining the correct stakeholders is one of the most basic and decisive part in project communication mgt. Then again, the main idea of project communication mgt is to establish customized communication plan for internal and/or external stakeholders based on project requirements, budget, process, specifying templates to be used, distribution lists, charts, graphs, tables, etc. Provision for varying of reporting frequency and format based on project phases. Establish internal and external recognition as the project spokesperson by communicating on behalf of the project and its owning organization. Prepare all project steering documents and secure that they are kept up to date. Manage and Control all project communication towards the end customer.

We, in our organization have a very organized and well described communication plan that works for any given project. Though it is not always possible to fully maintain the steps provided in the plan but it helps a project manager to adopt the communication plan for his/her specific project.

In our organization, as I mentioned in one of my earlier blog, project manger’s involvement was there just at the beginning of Execution Phase. Before that, all the project management task was been done by the Program Manager. Hence, a proper exit criteria was never defined in the initiation of the project. For which a project closing has to go under a lot of hick-ups and troubles.

Recently things have been modified and the Project Manager’s involvement was made at the initiation phase of the project. The Project Manager knows from the beginning, what is the exact deliverables and with the help of it a proper exit criteria is set and agreed to have a smooth transition of the project in the closing phase.

Apart for the acceptance criteria, a proper acceptance document needs to be prepared in accordance of the acceptance criteria. For an example, in my earlier projects I always used to take the acceptance of sites in batches. As soon as implementation of a batch / cluster is done, we pursue for the acceptance to the customer. But the problem in this case is, say for example, there are 5 sites in a cluster / batch, of them 4 sites were finished and the 1 rest site had some issues from project / customer end. For that single site the acceptance of 4 other sites gets delayed and hence it affects the annual maintenance contract period for that 4 sites. This scenario has been changed and from my last project, the acceptance was done per site basis. Yes, I do agree that there will be more paper works for this, but at the end of the day, it will pay off.

The current practice of our organization is to involve the project manager just before the execution phase and the project charter was prepared in an adhoc basis. Which actually creates a lot of confusion – at the time of planning the project as well as at the time of project execution.

This scenario is changing recently and the project manager involvement has been practiced at the initiation phase of the project. Moreover the Project manager’s inputs are considered while preparing the project charter. This helps the Project manager to be have a clear understanding of the exact deliverables and the organizational processes.

1 PMBOK 4th edition, page 73.

Now to share some of my experience while preparing for the PMP, I would like to address the most critical thing is to keep the concentration for full 4 hours of the exam. Most of the examinees fail to excel in this part. Other than that, there is no reason for someone to fail the PMP exam. I have not taken any PMP prep course / training. Rather I have studied at home and have been successful.

Comparing to the PMP exam, the CCE is harder and moreover it’s a 7 hour long exam. So, I guess, it will be much more complicated to have the concentration for the whole time of the exam. The best way to get over this situation is to take mock exams before sitting for the real exam.

Now that I have successfully given a lecture on “Concentration”, I would like to change my topic to “EVM” on which I am very much interested in learning. Truly speaking, most of the organizations have the idea of EVM but it is not practiced all through. Ericsson recently took a drive to implement EVM throughout the organization and people in different country unit are working on it. I am also assigned in the drive for Bangladesh unit and I am kind of enjoying the program as it directly relates to what I am learning through CCE.

The main idea of the establishment of EVM is to make a ground work and then make it live via the system for a pilot project. After the successful trial run, it will be introduced to all the projects worldwide. The ground work is finished and now the trial run is approaching to be a successful one.

To minimize the risk, our project team tries to propose solution with precast panel system, by using this system we can remove the necessity to have scaffolding and the quality control of surface finishing can be simply done on the ground prior to the erection/installation.

The interesting point on this proposal is we have to keep technical performance of the system (i.e. heat protection, sound proofing) and cost performance. We have to use target cost which have been determined by the cost of double block works with cavity (existing design) as our cost performance requirement.

I have real experience to apply the concept of Target Costing and Design to Cost as mention on Engineering Economy text book chapter 3.5.2. We start with bottom up estimating and to ease cost analysis we have to compare variable/fixed direct cost between these two products and try to redesign the precast wall to cope with target price, such as re- design precast wall in a way that they will have typical size and section so the number of moulding to be provided can be reduce which will reduce the production cost, also we have tried to reduce the density of concrete (light weight concrete) so the handling process will be cheaper.

We do hope we will succeed to apply this system which will give benefit in term of quality, reducing  safety risk, saving overall construction time (we may start production before the structure package finish) and within budget.

With Monte Carlo simulation can be obtained  the range of  estimated of total cost that might occur by taking into account possible variations of components of the cost that counts.
Estimate Range is generally presented in graphical form the Normal Distribution, with the Mean Value and Standard Deviation in accordance Monte Carlo simulations.

Note:
P ~ 0: Minimum Value
P = 5: 5th percentile
P = 95: 95th percentile
P ~ 100: Maximum Value
P = 50: Most Likely

The graph illustrates the relationship between the estimated value on the abscissa with the number of samples / sampling (Monte Carlo simulations) on the ordinate.
By convention the precision / Range Accuracy is set at 5% Probability (P-5) as the lower limit and 95% Probability (P-95) as the upper limit.

Figures on the P-5 illustrates that there are only 5% sample whose value is smaller than the number of P-5. Instead of P-95 illustrates that there is a 95% sample whose value is smaller than the number of P-95, or only 5% sample value is greater. While the P-50 is a number with a 50-50 probability. In methodology, the numbers in the P-50 or the Mean is a number that is generally used as the “Most-Likely” cost estimate.

Previously we use a single value cost estimate and mostly is prepared by the lowest cost of each component that contribute to the total cost. Its cause most of the bidding project must be re-tendered because the owner estimate always below the third party proposal. Meanwhile the company policy set that the bidding process is done if the third party proposal fall below owner estimate. It become the bidding process not efficient and takes time cause of re-tender and re-estimates process.

Currently we try to use the result of Monte Carlo simulation to our owner cost estimate. It’s mean we provide a range of cost estimate with 90% confidentially and P-50 value as a basis of owner estimate.

As a result we give the opportunity to the decision maker who has the authority to take the risk of responsibility if the third party proposals are within the range of our estimate, he can select which one is appropriate as a winner of the bidding process.

The limitation that we had in pointing out the leaders at the beginning is that we all did not have a clear picture of each skill and competency. Whilst in the reality, leaders should be pointed through series of assessment on their performance and behavior in work, whether they are high potential, promotable, or needs heavy coaching. The important thing is to have the discipline of getting things done. Because of the limitation, the team leaders were identified by who is volunteering to be part of the role. I learned that this is one pitfall that caused us not having the right person in place.

Despite the misconception at the initial phase of the project, we are now in the battle of filling in the empty boxes. The contingency plan when we have a resigned PM is to have the DPM to step up into the role. The problem is when we have a resigned DPM as well, hence another selection process need to be done.

To not going on in the same loop and repeating the same mistake, it is better for the Program Manager to accommodate the needs by performance and behavior assessment not by having the volunteers to step up. Another way to do is by adapting Gartner Grid theory to identify the leaders. Having the ability to execute alone without the vision on hand, they are more as challengers rather than leaders. With the vision on their mind but not able to execute, they are visionaries. By not having both capabilities, they are the niche players. The one who has the vision completeness as well as the ability to execute the task is the one suited for the leadership role. In my opinion, by adopting this, the chance for repeating the same mistake will be less.

Easy as it sounds and hard to manage, even an event was a project management. Where I have to select the resources from the run down of the show, which in project management usually called WBS. From that run down I elaborate more to skills and abillity that I required, and due to this a side work loads for the rest of the team, my steering commitee is this on forming and norming stage. Yet, I have to be able to make the show on June 2010, which is 3 months again. Luckily, with my understanding to run a project, at present we have coned down to creative detail on the stage and any video taking tosupport the event story.

Like other project in the world. This project was indeed to have and arrange budget or PV to make it running to propose to the organization.  I decide to make an estimation to approval budget to class 3 and what have been approved was negotiated to less than 22% than what I have estimate. For me this is still acceptable. And back to drawing book, me and team need to undermine the lost of 22% and the side affect what would we gain. In  here I am running a worst-most-likely and best case scenarios. We brainstormed how this would affect the WBS, show run down, for the event. Just like the building project, we are deleting the high cost and start saving by choosing the lower price suppliers and event more, we decide to do it ourself so we could cut cost more.

We were prohibit to find another cost support due to organization policy, while we are trying to get the project running with only 88% approved budget. I find it so difficult, therefore I made decision to find an item that need to support fund, “the door prize”, and I have a proposal to head of organization to allow and creating a team that supervise, handle and manage the supportive fund from third party such as vendors and suppliers. Big wishes for me, that my proposal was approved, so this year still have the main event “door prize”, that have run more than 10 years and the most waited event every year.

The program started independently in each country with assessment and survey done in detail to analyze the gap for each country and what need to be done to close the gap.  I was appointed the driver for this program in Singapore.  Knowing little on the history of the company in Singapore, it was a good exercise for me to start to learn more about the company, the “right” way and not the common way of doing things.   After the assessment for Singapore is done, we have review and agreement on the gaps listed with the steering group members.  Project Team started to form as we identify the gap and area where we need drivers to drive the process of formulating the solution and execute the implementation of the solution in the respective area.  Gap assessment area are focus on followings:

1.   Project Governance

2.  Sales

3.  Project Setup & Finance

4.  Sourcing

5.  Resource Management

Project organisation is formed as deployment plan is drafted with timeline and cost (internal cost for travelling for workshop, training and internal man hours).   Project specification was then documented spelling out the timeline for

-  Analysis on data collected

-  Solution development for gap closure

-  Implementation Plan for Gap Closure

-  Solution verification thought series of audits

- Project closure and conclusion

Training plan as been executed through the pass months, WoW (Ways of Working) in the country has been changed and updated with new and standardised process aligned thought workshops, discussions, bi-weekly conference meeting and information sharing among the countries.  It has been the most fruitful in my learning process in the last 9 months from the beginning till the ending of this program for myself as it could have taken someone years to be familiar with the internal process from pre-sales to implementation, documentation, control, finance, etc which I only takes 9 months to understand all that is required.

1. Units Completed – measurement of the definable and quantifiable achievement or product produced. This probably the easiest form of measure. As part of our project we are using this measure to calculate blogs completed and approved.

2. Incremental Milestones – Assigning percentage values to sequential activities that make up a total project activity. This makes up the “rules of credit” to be used to measure project progress. These values are rather subjective, but as long as these are consistently applied as part of the baseline planning and again during project execution for progress measurement, the impact of this subjectivity is minimized.

3. Start / Finish – Assignment of an arbitrary percentage complete value at the start of the activity, with the balance credited at the end. Usually assigned to activities that are difficult to assess duration.

4. Supervisor Assessment – Judgment call by the Supervisor to assess percentage of activity completed. This method should be avoided if possible as this has a high level of subjectivity. If applied to many activities this could induce a large error in the accuracy of the calculated project percentage complete. This defeats the purpose of the earned value of cost measurement.

5. Cost Ratio – this method uses a ratio of other project activities to establish a percentage that can be applied to activities that may extend the life of the project such as Project Management, Cost Control, etc and would be otherwise difficult to define progress. This measure is being applied in our project to measure cost control progress.

6. Weighted or Equivalent Units – Assigning weighted values to sub-activities with different measurements for units of progress, allowing different measures to be normalized back to a standard unit of measure. This makes up the “rules of credit” to be used to measure project progress. Similar to Incremental Milestones, these values are rather subjective, but as long as these are consistently applied as part of the baseline planning and again during project execution for progress measurement, the impact of this subjectivity is minimized.

Although important to have realistic methods of measure, the most important aspect to me seems to be the ensuring the baseline plan is aligned with the same method and rules used to measure to measure progress and earned value.  In all the reference materials I have read relating to this subject (admittedly not that many) I have yet to see reference to a document, lets call it a “dictionary of measure”, that defines how work activities at the lower levels were defined in the baseline plan. I thought this would be necessary to ensure consistency of measure during progress execution and progress measurement.

I know everyone in the program is a leader in some form and we are all here to develop our leadership and project management skills. The problem is getting someone who is already a leader, who is busy with their own life and their own career to volunteer and step up for additional work and lead the entire team to complete the project.

I have asked others to step up voluntarily, but that has failed. That tells me that people aren’t naturally leaders, but they step up into the role when they have to. As a result of no one answering the call of volunteering to be a Project Manager,  I have had to individually ask people, which I have started to do. The problem I face is when I ask someone if they will accept the role. If they turn down the opportunity before they accept it, it is better for the team because we won’t count on that person to step up in that capacity because the entire program expects the individual to be fully committed to doing the job once the role is accepted.

The problem for the program manager is the search for someone else to fill the gap. This is the part of the project we expend all of the float on the project. The program will continue to suffer as long as this role is unfilled, but I would rather the role suffer on a temporary basis instead of suffering full-time with bad leadership. I have been on too many projects, or at least that is what the company called it, where they put bad leader after bad leader in place which caused the company millions of dollars and problems would continue to get worse from one project manager to the next. The only concern I would have with this is explaining this to the customer, as they would have to understand that I am acting with their best intentions while juggling the possibility of missing a deadline while I continue to search for a new leader.

[Reference: http://www.i-leadonline.com/tkiinfo.asp ]

This instrument is designed to measure a person’s behavior in conflict situations. “Conflict situations” are those in which the concerns of two people appear to be incompatible. In such situations, we can describe an individual’s behavior along two basic dimensions: (1) assertiveness, the extent to which the person attempts to satisfy his own concerns, and (2) cooperativeness, the extent to which the person attempts to satisfy the other person’s concerns.

[Reference: http://www.kilmann.com/conflict.html ]

These two basic dimensions of behavior define five different modes for responding to conflict situations:

- Competing
- Accommodating
- Avoiding
- Collaborating
- Compromising

TKI is view as a tool to resolve conflict between 2 individuals, according to the behavior demonstrated by the individual; however this is also an indicator the leadership style that the person can perform best.

Questtocce, has some very outstanding leadership as shown by some of the individual. These leaderships had brought to the progress of the team to what we are today. The leadership that I am mentioning here including those who resigned to give way to the progress of the team to the completion of the journey. Disregards of the PMs (Program and Project Manager), team members have to perform tasks that are assigned to them accordingly for the sake of the team. This is the very minimal leadership requirement from the team member on order for the team to move forward. Obviously, there are still consultative (accommodation) and stern (competing) as well as collaborating (as seen from the good team work between Program Manager and some other PMs and also some very outstanding team members) leadership to be demonstrated by the leadership team of Questers to push the team forward.

It was already 3 years after the official day-1 merger of 2 companies. In fact, it should be the fourth year since the announcement was made early June 2006 that these 2 companies will be merged to become a giant in the industry and to counter and fend-off the competition and threat from other vendors.

 Some industry analysts said that this was a good move as both of them are from same continent. Culturally, they are quite similar to certain extend; however some may have negative comments on this. For working level, it was very much about the operations of the company. Two European companies from 2 different countries and with different business focus, population size, definitely the company culture will be different. One was electrical, electronics, network, transportation, power-generation and distribution as well as medical and O&G company, another one was consumer electronics as well as network equipment provider. By looking at the range of business, you can tell the business culture between both of them are different. One is more on control across – functionally; another one is very much within the LOA of the silo, however less control and understanding across silos. And subsequently will be the debate of question of control and auto cruise.

 Coming from the control part of the company, I have; if not totally disagreed; difficulties to deal with silo based working culture. There must be a mechanism to control across within the flow; for e.g. presales, sales, post sales, production, delivery, implementation and post implementation support. Each area should have a layer on top to have the control and putting through information across. This has been the struggle for me and most of my colleagues in the company for the last 3 years. However, I cannot elaborate in details over here.

 I have recently taking up a new role to look into delivery issues across several functions (silos); and I come to discover that, within the silo working style has its credit and advantage too, as the TAT within a silo was faster. Retrieval of information was a bit of difficult as it was not familiar with information request across among them. As the company is now moving forward to 4^th year, what changes that we can do is to adopt the style which is the mixture of 2, silo working style with control across a few silos so that the grey area between silos can be reduced by having functionality control across. This has to be evaluated carefully if the number headcount needed would be overly exploded and added up to the operation cost of the company.

wbs w6_1   

The engineering products of FEL phase are “mapped” to the Execution WBS elements, to ensure that there is no interfacing omission. The engineering product (technical specification, equipment lists, design drawings, system descriptions and associated studies) are mapped to the detail engineering, procurement as well as the construction elements.

 With reference to Organization availability and capability, the contracting strategy is developed. In most process industry, the engineering work is contracted thru a third party with consideration for sharing the risk due to limited expertise available in the company organization. Most likely a cost reimbursable contract used in FEL phase since the project definition is still in progress that company expectation is to control all aspects of the work. Therefore company project organization should be strong enough to do close quality supervision and direction, approve personnel assigned, decide on potential changes, and mitigate the risks.

 The work packages are developed with clear and concise responsibility (company’s provided RAM). The control account is placed in the matrix where work scope and responsibility are integrated. A control account is the lowest level in the WBS/OBS matrix, where all data elements and management activities exist. A control account is composed of work packages which are detailed, short duration activities as part of identified scope of work, and used for company to monitor the technical, schedule and cost performance of a significant element of the work.  Although there is no straightforward “rule” to develop a control account, but consideration of work scope, associated risk, duration of the account, $ value, performing organization, contract framework, and reporting/information objectives should be in the picture. The total budget of the project and its schedule durations must also be considered.

The WBS (level 3 or 4) is conveyed to contractor WBS (contract work dictionary that inline with the contract scope in the exhibit of the contract. The WBS dictionary should describe the work package/element number, the scope of work and boundaries which will be rolled-up to that element, and the related work which is excluded from that element.

 The Contractor then develops Contract Work Break down Structure (CWBS) that support the standard activity breakdown element on the company WBS, i.e. engineering work package in phase FEL. The CWBS will provide two or more elements for supporting schedule and cost proposal allocation of the contract, which company will utilize for monitoring the contract performance.

 It is expected that the “project execution schedule and cost estimate” are provided by Contractor at the end of each FEL phase based on the level of project definition/ engineering accomplished. It is important to ensure that alignment/coordination between Execution WBS and Cost Estimating development are also established. A cost estimating template & its dictionary and WBS will form the frame for cost estimating process, which also be the basis for subsequent actual cost collection. The WBS is used for control of significant project elements while the templates are used to capture all cost elements. By using a translation table to map templates against the WBS accounts which they support, it is possible to coordinate the templates.

 The template defines what cost elements are included within each control account. The standard Code of Account usually is established to define each cost element category for the basis of the template development and application. The template dictionary defines the boundaries to work content which is all scope included within each individual account.

 Reference:

Project Management Using Earned Value, 1^st printing, Humphreys & Associates, Inc., chapter 2&4&21, Gary C. Humphreys

From the CPM , activities which are URGENT and IMPORTANT : Project Planning ,Paper project (particularly for selection of Paper topic) ,While the activity which are IMPORTANT and not URGENT : Certification Examination, Matching tools and technique , Problem Solving Project, Bidding Project , Weekly Blog project, 3 days Final Review Session.

1. COST : Since the cost performance Index very high 1, 77 (will be little bit less when indirect cost include on AC) I recommend to review the cost baseline to capture the realistic cost performance Index and to obtain the correct baseline budget.

2. TIME : Generally the performance of project was satisfying but the estimate time to complete shall be validated by using total float monitoring,

3. RISK : The project manager shall ensure the quality of the works since the high value of CPI may have correlation with the quality of the works (using low quality of materials to gain time and cost) or others specification requirement which may have impact on future maintenance cost.

4. RESOURCE ALLOCATION : Since there is no data on early schedule, late schedule and total float I don’t have any basis to give recommendation on resource allocation.

I can apply that correlation to every aspect of this project. Each individual learns and produces in this aspect. For example with this class, I will learn something new and I’ll be confused at first. After reading, research, and trying a few problems, I will see the path. Once I am on that path I will continue until I have fully grasped the concepts of that knowledge. For production it is a lot like pushing a car uphill. At first you need to get the car into neutral, get some extra muscle behind the car and push the car until it has momentum. Once you have the momentum it will be a lot easier to get going. Once you are going it is equal to climbing the steepest part of the S-curve.

However, there is a pitfall to this on a personal level and that is getting to the top of the S-Curve. I reached that with my previous profession and I felt like I was lacking a new challenge in terms of learning anything new. That is where I hit the law of diminishing returns. No matter how much more I try to learn, I find it difficult. I can stay in the field for another 15 years and be called an expert, but I feel I can do so much more with my time in something new opposed to something that I won’t be challenged in. In a project the danger of reaching the top of the S-curve is the loss of momentum. The team will feel demoralized closure to the end of the project, especially if the end of the project means the end of employment or a source of income for an individual and it will be more difficult to close out the project.

In relation to this program, it is applied the same way. Some people are pushing the car now, others are coming over to help, and others decide they don’t want to help or are no longer capable of helping. As there is enough people pushing the car now, the momentum is starting to be built up.

I think ideally the perfect S-curve wouldn’t be a curve at all. The curve would just be a straight vertical line like a ramp from the bottom to the top. As we all know that is unrealistic. The way I picture the curve operating is a standard S-curve, but due to countless changes and factors that go into what the S-curve is applied to,  the momentum or effort looks like an oscillation that goes back and forth across the path of the S-curve. Through the life of the project there will be times where you are ahead of schedule and times where you are behind. There will be times where you are under budget and times where you are over budget. The goal of the asset manager, operation manager, program manager, and project manager is to ensure that the project stays as close to the S-curve as possible and to manage those oscillations to keep it as close to the S-curve while still meeting all objectives.

Just by reading and listening to this team interactive and exchange emails, I found out that there were many terms of creating S curve. One that I know of and so related to my current position is when you creating S curve, there were also taking positions on which area that you standing, either in contractor’s side or owner’s side. Each has strong different in term of actual cost and earn value. There are profits value and possible cost need to budgeted to finish the work.

What I have usually making was from contractor’s side. This was not wrong, because from this analysis I may have the analysis graphic to forecast Estimate To Complete the work (hard construction only). But, if I want to find out the total project value, I have to record (and or) create S curve analysis BEFORE the hard construction. But if I made this kind or analysis, it was hard to benchmark the progress. Designing process’ hard fact were from consultants design drawing, but it will not implement clearly to hard construction, who was done by contractor. Maybe it was not hard at all, I just have to figure out the milestones.

Okay, still learning tough. I will really pleased if I get feedback from team who has done the status progress during design phase.

It is good progress when I look at it as it shown that have 46% in physical completion with only 16% on budget spent. And also its SPI/CPI shown in the Cost/Schedule Trend Report is in the same direction.

But what I would like to see more in the last graph, S Curve. I would like to see Estimated at Completion, how much the cost that project will end up. Since it is in the good shape I mean under budget. If this project can tell me what EAC it will be so the management team can utilize this difference approved budget – EAC for other project investment. However I saw that this project have some incorrect calculation on indirect cost so i also would like to see it include in EAC in order to make it clear as it will not exceed the early approved budget as it said.

Next, I would like to see critical path analysis. The S-curve can tell us about time and cost progress but it does not telling us what we did in project is in the critical path or not, we may be working in the activities that are not in critical path. This can shown as current progress that ahead of schedule and under budget but might end up with fail on the critical activities later on.

Moreover, if this project have a lot of risk. The risk analysis should be monitored and follow-up on mitigation activities.

Based on information contained in the report, all indications are that this project is in a good position with respect to both cost and schedule. It appears to be a very well run project, with the project team understanding current status and being able to predict future activities that may impact the current rate of progress based on the actual and improved construction schedule.

Notwithstanding the above, the actual construction schedule is only slightly ahead of planned, however this is trending toward in a positive direction, indicating an early completion date. Insufficient information is given to determine the magnitude of the improved schedule, and the improved cost can only be determined by approximating planned final cost from the graph data. This however this is all in line with the comment that the reduced forecast project cost is due to the forecast early completion date.

Recommendations for the Project Manager.

Costs – Inclusion of the original project forecast cost value in the report, would assist in determining the actual value of improvement expected. In addition this, inclusion of all costs, including indirect costs in the earned value calculation is necessary to ensure an accurate report of project status.

Time – Inclusion of early and late start date curves would assist in establishing project resource and time float. Inclusion of the original planned completion date would clarify the magnitude of improvement expected.

Risk – The improved project completion schedule may impact on other related projects or related project activities. The improved schedule should therefore be reviewed to assess the impact of float on other activities.

Resource Allocation – With the improved forecast schedule, resources will become available earlier. Consideration will need to be made as to how these resources are utilized.

2. Analysis from the graph,

• For time flexibility, we have small horizontal difference between early and late S curve. It means that we have small number of time flexibility. The most flexibility we could have approximately only 3 weeks that we can delay on schedule.
• For resource flexibility or the spending hours, we have small horizontal difference between Early and Late S Curve. It means that we have small flexibility in resources. As it is less flexibility so we have to spend the working hours all weeks in the same level approximately 8-12 hours per week, as our commitment in the team agreement is 160-240 hours for total project.
• Both time and resource flexibility indicate that we are in critical. It is requires all team members to focus on their tasks and strictly to schedule plan.

3. What is the urgent and important task?

• Project Control: The project control is very urgent and important task now. Because our time frame is only 15 weeks left which means every single week project report is mandatory. We need to know how ‘s the project going on in order to take immediate action if we have early warning in EVM.
• Paper: Because everyone take CCC/CCE exam have to submit paper when they apply to take exam on May 11, 2010. There are only 6 weeks left and this need to be the 1st priority task than any other now! 

4. What is Important but not urgent task?

• Question: If we want to pass the exam, I think we should complete the question project task. Since we have 21 weeks and we can start in week 6 after getting project plan approval, this means we remains only 15 weeks. And this project requires 14 weeks to accomplish all tasks so we have only 1 week to delay. It become important task but may be put it as not urgent now since we need to focus on paper first and we can speed up on question project later on.

By analyzing the graph;

 The project is well run with PV = EV, the project is on schedule as planned. However, actual cost incurred is at approximately 60% of the planned value. This can be attributed to various reasons. The estimation of budget was inaccurate, buffer were included with approximately 60% than the actual spent. If this is a contracting project, this would be a very profitable project, but could running into risk that the price offered was not competitive.

 Other reasons could be payment to workers or contractors being squeezed or delayed which was not reflected in the graph. This kind of project is subject to investigation if the initial planning or budgeting was wrong or it was not planned as per guidelines and authorization. That could entail to serious compliance issue that the contractor and staffs was not treated fairly and as the project progress further, the physical completion of the project could be lower than the planned value as there could be risk with resignation of worker and contractor to implement the project.

 Based on the information retrieved from the graph extrapolation, the project could be completed at the cost of half of the planned cost.

 Another aspect to look at, actual cost information update of the project in lagging behind tremendously, that affect the actual estimation and also reflecting the real progress of the project in terms of actual cost incurred. The process of actual cost updating need to be reviewed so that actual data can be reflected timely.

I attended the first net meeting with the PM for current AACE team as well as old and new team mates. The meeting was not well attended with all the team members in view of current size of the team. Only less than 1/3 of the team attended the meeting.

 The meeting went on well as the PM conducted the meeting according to the agenda and clearly communicating the required action needed for each and every agenda clear and precise. This is particular important particularly with managing virtual team meeting.

 However with the participation of the attendees to the meeting, give me the impression that the team will have the similar situation as Transformers as there are still member who is not sure if they can commit to the team as stipulated in team agreement. I have earlier posted a blog that, when Transformers were half way through, only 5 members were 75% above planned SPI, approximately total 8 members > 50% SPI. Out of 15 members, this is considered low. There is an urgent need that team rules had to be implemented. Or the team member with < 50% SPI should make decision, stay or leave. However that did not happen.

 Recent resignations of team members, is also a very decisive leadership that demonstrated by the members that they need to decide so that the consequences will not be so devastating and affecting the progress of the team. I am not sure if the PM had done his part in communicating with the resigned members or not for the decision made. If that happened, that would really help to strengthen the teaming to move forward. That is the subject that we need to find out. The reason of resignation could be varies, and it is also the priority that one needs to take care of at this point of time, including unfortunate reasons. The resignation of members could dampen the team motivation and team governance spirit, but in long run, that could be beneficial. 

 However, the resignation should come earlier, except the unforeseen unfortunate reason which lead to health or life affecting reason, has to be done before accepting the team agreement.

The risk of not having the scheduled baseline is we can’t measure the feasibility of the plan, whether it is too close to the early or the late schedule. Despite that, by having our current figure, the gap between the early and late dates does not give both time and resource flexibility. The appropriate number and qualification of people should be allocated to all the activities to make sure that we are not exceeding the late schedule. This is because a slight slip on the schedule, it might affect the overall project completion. The risk mitigation once it begins to show the negative trend (which begins to start now as more people are departing from the group and some are restricted by their individual limitation) is to have the resources working extra hours in completing the task.

With such constraint, we need to do resource leveling by prioritizing the activities based on its urgency and importance. Looking at the limited flexibility that we have, we ought to prioritize activity which has low float to the degree of their importance. The most important activity for our case is the Paper Project. Even though it is not so urgent now, we still need to focus on the progress since its delay might cause us out of the examination league. Besides that, we are having list of activities that contribute to their urgency and importance, such as weekly blog posting, tools and technique mapping, solving assigned problems, and bidding project. While we are working on those activities, we still need to make sure that the targeted schedule for the milestones in completing the paper is still met.

When we drill down into the detail, the CPI value is significantly high or in other word it appears to be “very good”. This might happen either the baseline is based on pessimistic calculation or there is inadequate actual cost being acknowledged. Since it mentioned that the cost need to be re-calculate to include the indirect cost, means that the current CPI is not reliable until they include the committed cost into the total cost calculation.

The SPI value is in the acceptable range. There are several possibilities that might lead to this situation, such as they might fast tracking the lead time by ignoring some processes or they might add resources to make some of the sub-activities parallelized. The first possibility is most likely to be incurred because the later one will cost more and it is not clearly reflected by the figure since they have very low actual cost. The probable risk of the first option is that important and critical process might be carried away. Lead time comparison with a previously similar project might be beneficial to analyze the performance.

It might hard to do resource leveling as the figure does not provide early and late schedules, thus no floats are identified. The risk of not having the early and late schedule baseline in regards to resource allocation is that they may not get the correct data of productivity and this might jeopardizing the schedule.

Motivation as in the context of AACE International, “Skill & Knowledge of cost engineering” chapter 22.5 stated

  “That process, action, or intervention that serves as an incentive for a project team member to take the necessary action to complete a task within the appropriate confines and scope of performance, time and cost”

To succeed and to be able to complete this AACE course, we can look at how we could apply the theories of motivations to oneself.
1.  Biological perspective
This motivation is more appropriate when applies to more basic aspects of human behavior and need for affiliation for the goal of basic survival.

2.  Drive theories
Behaviour results from individual meeting the requirement of specific drives.  If members are serious about achieving the completion of this course, being part of the team member and with the aim to achieve every week’s assignments.  It becomes a goal for one to move on with the tension and stress to achieve the mentioned and the drive becomes motivation as one try to reduce the tension by achieving the goal

3.  Incentive theories
A desired behavior that can be awarded by providing the identified incentive to the team member.  In this case, what I see that attracts to the team member is the certification, to be certified in one or more of the 4 certification would be the incentive of completing this course.

4.  Theory of needs
David McClelland who developed the concept that people who value the need for achievement are often those people who are the leaders in the areas of creativity and economic growth. One should see and known the importance and the need to obtain this certification as it benefits oneself on the knowledge of project management and add value to him or her professionalism status in order to continue to survive in this competitive world and to continue expending and progressing in his or her career path.

5.  Fear of failure
This is a motivator to act and succeed when the consequence for failure are especially distasteful or catastrophic.  This motivation factor probably would not apply in this course.

6.  Hierarchical theory
This motivation theory was set forth by Abraham Maslow.  Maslow states that people are motivated by the desire to satisfy needs according to a hierarchy with the most basic needs placed at the bottom.  Maslow’s hierarchy of needs are as follows:
level 1 – physiological needs
level 2 – security and safety needs
level 3 – belonging needs
level 4 – esteem needs
level 5 – cognitive needs
level 6 – aesthetic needs
level 7 – self-actualization needs

7.  Career stages
A model of 10 career stages that is described by Schein,
stage 1 & 2 – starts in person’s life before enter the world of work and involve early years of career exploration and career preparation.

stage 3 – formal entry into the workplace where skills of profession are acquired.
stage 4 – refers to training in the concrete application of skills and professional socialization being established.
stage 5 – when individual gain full admission into the profession based on competency and performance.
stage 6 – when individual gains a permanent membership in the profession.
stage 7 – mid-career assessment or crisis period where questions are asked on value of the career and the accomplishment.
stage 8 – challenge of maintaining momentum as the career starts to move into final chapter.
stage 9 – when individual start to disengaged from profession.
stage 10 – retirement stage when individual must come to some form of closure of employment in his profession.

8.  Empowerment
Suggested by Meredith and Mantel where one is motivated by the opportunity given to be self-determinative in creating the structure and methods to achieve its goals.  This would apply to the program manager, project managers and the project controllers as they are given the empowerment to control and manage the team in completion of the assignments.

 As can be seen from the two S curves, Planned and Late, there is not a lot of “float” available.  We are probably already behind in many things and project control will be even more important, especially at this early stage to see progress to date and our trend line. 

 I think some of the critical things to remember about Project Control are. 

1.  Simplification – The output is the only information that can be used to add value to the project.  The actual entry of data into the project control system does not add value except that it is a means to an end to produce the final output.  Based on this, the collection and entry of data needs to be sufficiently simple only to produce the level of output required.  Any more than this an effort is being wasted.

2.  Standardization – Everyone needs to be working with the same understanding.  This is especially important for Earned Value calculation.  Rules, protocols and guidelines need to be defined ensuring value assessments are consistent.  When developing these guidelines we should remember – simple is better.  Complicate or involved calculation of earned values can lead to confusion and error. 

3.  Alignment – Individuals, sub-projects and the main project will all be maintaining “project control” systems.  These should all be consistent and aligned.  The information from one should feed into the next system above it.  The data entry and output format should be consistent and aligned. 

4.  Use the Tools – let the tools, in this case MS Excel, do all the work.  Manual entry of data should only be done once at the base level.  Except for the cutting and pasting of data from lower level reports, the rest should be done by system.  Put the effort into setting up the reporting system at the beginning and this should be sufficient for the life of the project.

5.  Many Hands Make light Work – It is much better for many people to complete a small amount of work each, rather than a small number of people having a large amount of work to do each time a report is generated.  In this case each individual should generate a “timesheet” with time spent and value earned. This can be copied at the sub-project level to generate the report at that level, which can then be copied to produce the overall project report.

In the initial phase (conceptual FEL), the project control planning key activities are the project scope and execution strategy development process, that delivers a defined and documented work breakdown structure (WBS), work packages, and execution strategy. Translating asset scope in to a project scope development is conducted using the process flow diagram and potential plant lay-out, then decomposing the scope into a manageable work. On the project control planning, the team must also consider how that manageable work will be perform and by whom, which is also known as developing organizational breakdown and execution strategy. The execution strategy typically includes project organization and staffing plan, also contracting strategy.

Considering the phase and review gates, the project control planning for preliminary design – FEL has to be conducted during the conceptual – FEL. On the other words, the project team during conceptual FEL will provide:

- WBS of preliminary design FEL, with a work package up to level 3 or 4

- Risk analysis and mitigation plan during preliminary design phase FEL

- Organization responsibilities, considering the contract strategy during preliminary design phase FEL

- Schedule planning for activities to complete the work packages during preliminary design FEL

- Estimate of funds required to conduct the preliminary design FEL, consists of company cost and the engineering contractor cost

- Project Execution Plan which consists of detail project control planning for preliminary design phase, and initial project control plan for the later phase (execution/construction),

on the funding request documentation submitted for Management/ Leadership Team approval to authorize for resources to the next phase. When approval and authorize for preliminary design phase/FEED is available, the above project control planning document become the baseline to control the preliminary design phase performance.

During project preliminary design phase, a project control planning process is conducted for the execution phase. The request funding document for project execution phase will be much more detail, and particularly due to the nature that the actual investments will occur during the execution phase, a business merit review will also be conducted at the decision gate of end of preliminary design phase, therefore a business decision support packages will be included in the deliverables. This decision support package is jointly developed with asset manager/opportunity manager.

Reference: Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1st edition, AACE International, chapter 7 & 8, edited by John K. Hollmann, PE, CCE

After project team complete the detailed final execution plan (including final contracting strategy for execution phase) with the cost (Class 3 or Class 2) and schedule (level 3 or level 4), also detail critical risks analysis and mitigation plans, and other required information are documented in the format to support the authorization for execution, then the request for funding (investment) will be submitted for Project Integration and Management/ Leadership Team reviews. Typically, the authority to approve major investments resides with multiple people in upper management (TCM, chapter 4, section 4.1.2.7). In most cases, the project integration review will be conducted by an assigned multi-discipline team, not the Management/Leadership team.

The project integration reviews will focus on the above project deliverables, while the management/leadership team reviews will focus on the business/measures of merits. Any variance on the funding requests from the previous decision gate (pre-FEED / Conceptual FEL) has to be transparently communicated to the review team.

If project integration team find the project construction plan, cost & schedule, risk & mitigation plan (including HSE risk management), and contingency detail report are satisfactory, a recommendation is provided for management/ leadership team reviews for approval and authorize the project teams to complete the project execution.

If the request is not approved, then the project team should improve or fill-in the gap on project deliverables to get the approval. Also if the project is cancelled, then the project team shall close-out any work in progress.

The challenge of decision gate process is timely-approval so not to affect the project progress and/or completion date. In order to minimize this impact during the initial phase of FEL, some works and funds for the final phase of FEL has been included for approval on the funding request document at the end of initial FEL decision gate. This is possible because most of FEL works is engineering design to define final project scope. Only in a schedule-driven project, there is potential procurement activities and funds is requested at the same-time when the engineering for such equipment has been completed (generally after no outstanding design actions after HAZOP study), otherwise there is a high risk on project execution changes due to lack/miss of design.

Reference: Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1st edition, AACE International, chapter 4 & 7 & 8, edited by John K. Hollmann, PE, CCE

1) Less focus on exploring resources to support the potential topic, only allocate very limited time in an intermittent basis,

2) Unavailable priority and schedule among preparation for paperwork, learning on problem solving and completing the tasks,

3) Underestimate effort needed to do paperwork, wait until the last minute to start writing.

As a lesson-learned from the previous situation, a plan is developed that:

1) initiate locating resources for exploring the supporting information in early possible time,

2) allocate regular time every two days to locate resources,

3) communicate with mentor and peer when need additional info,

4) not to wait until all resources available to start writing,

5) preparing delegation (of portion) of other workload to provide more time for preparing the paper, as well as problem solving.

 In a high competition environment, a project team could consists of the owner/company resources and outsource third party resources or contractor to fill-in the gap where owner resources are not available. Research by sound-independent organization has indicated that adequate project management team (“PMT”) size and composition improves front-end loading (“FEL”) and reduces project changes, also staffing of critical competencies from company organization is essential for project success (UIBC).

 The process on determining project team structure and staffing includes:

-          identification of risk drivers such as schedule uncertainties to define project scope structure and its environment and implementation phase (FEL or execution),

-          design the project team organization and adjust the size that will be able to address the risks

-          determine the key position that will be filled-in by company resources and sourcing strategy to fill-in the rest of the team position (direct hired third party resources or hand-over to contractor)

-          benchmark the project team size and structure with a similar project

-          complete the project team chart, job description and manpower plan for next implementation phase.

 The project team must use the company project process system in delivering an effective and efficient project execution. The project process system provides procedures & tools for each project phase and deliverables required for every decision gate, includes project change management, cost and schedule control system, financial/accounting system, reporting system, etc. The challenge for project process system is “fit-for-use” and continually improved, adopting the recent best practice and technique on project management.

 In the initial phase (conceptual FEL), the project team will be required to deliver the specific conceptual plans (scope, estimates and schedules) that most likely to achieve the objective within the constraints as described on the objective letter. In this initial phase, the team will also develop WBS (work breakdown structure), the organizational breakdown and execution strategy (includes initial contracting strategy). The most likely project team key position in this initial phase will include:

-          Project Manager (full-time, company resources)

-          Lead Engineering (full-time, company resources), supported by

• Discipline Engineers, as required to assist development/maturing of scope (share-time)

-          Project Control Manager (share-time resources, company resources), supported by

• Planner & scheduler (share-time)
• Estimator                  (share-time)

-          Contract & Procurement Manager (ad-hoc, company resources)

-          Construction Manager (ad-hoc, company resources)

-          HSE Manager (ad-hoc, company resources)

-          Operations Reps (ad-hoc, company resources)

-          Joint-Venture Reps (as-required, ad-hoc).

The project team documents the conceptual work planning done, and requests that the leadership team authorize additional funds for project team to perform next development phase (TCM, chapter 7, section 7.1.2).

 In the next phase (optimize & define – FEL), the project will be required to mature the scope development work, optimizing the design then finishing the define project scope that become a project baseline/control plan for execution phase. The project team will also provide project execution organization site-manpower plan that will support the project team on supervising site-construction activities and ensure that the construction contractor will meet the contract requirement. The project team key position will increase towards full-time basis at this final FEL stage.

 Reference:

Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1^st edition, AACE International, chapter 2 & 3, edited by John K. Hollmann, PE, CCE

UIBC, The Effect of Team Staffing on Very Large Projects, Margit Jochmann and Luke Wallace.

source: http://www.blurtit.com/forandagainst, by Theogray

From my point of view, managers/leaders play a very important role in making a successful or failed team/organization but they should not only the one who are responsible for the success or failure, it should be a combined efforts from both managers/leaders and team members. By the way I would like to quote the 4 factors of succesful execution which I think it’s worth reading for our team and for myself when I decide to join a team, it’s not only about leadership of the leader but leadership of each team member.

Quoted

The Four Factors of Execution

 7. Collaborates To Set Direction And Solve Problems 

 Barriers to team and individual progress will occur in every leadership team effort and must be dealt with quickly to continue progress towards the team’s goals.  The team leader must continuously monitor the status of each individual’s commitments and initiate barrier removal processes where appropriate.  Team-based processes for developing action plans to overcome barriers impacting individual commitments should be instilled as a part of the team’s culture. 

 8. Obtains Individual Commitments  

 The power of teamwork dynamics is engaged when the leadership team members come together to focus collectively on goals, issues, challenges, and problems.  Team leaders must carefully manage the processes of team meetings in order to maximize the power of the collective knowledge and skills of the team members.  Our research indicates the most effective leadership teams include at least three but no more than six  individuals who follow a meeting methodology that is focused on dealing with issues requiring the leadership team’s attention and maximizes the power of the collective knowledge and skills of the team members.   

 9. Establishes Discipline Of Personal Accountability

 The work of a leadership team is carried out by individual members of the team.  When a team has developed a plan of actions that are necessary to achieve their goals or overcome barriers, individual members must commit to carrying out specific actions which in many cases will include actions by the individual teams they in turn lead.  The leadership team’s collaborative processes must include steps to:

Define individual actions,

• Gain the commitments by individual team members to complete the actions,
• Document due dates, and
• Establish status reporting proces 

 

 In the challenging business environment today, a strategic asset management process has been applied for an enterprise to decide an investment for a strategic asset in its portfolio. Although the investment will take a form of a “project”, the strategic asset process does not manage the project itself but initiating, determining a “project objective” (which form a contract/commitment for a project team to deliver “value” for the enterprise), managing the overall portfolio of projects to meet the strategic objectives of enterprise.

 Strategic asset management process cycle is described in Total Cost Management Framework (“TCM”) as:

1. Strategic Asset Planning
2. Project Implementation
3. Strategic Asset Performance Measurement
4. Strategic Asset Performance Assessment.

 Strategic asset planning is the first step on converting an opportunity/idea on a new or improved asset into a plan of a project (investing resources). This plan then will be handed-over to a project for the implementation. The asset planning is iterative with requirements elicitation and analysis and investment decision making. The two key steps are identifies solution alternatives and then analyze its feasibility (TCM, chapter 3, section 3.2.1).

 An asset manager (or opportunity manager) then identifies and obtains resources, i.e. an integrated team (business/commercial, project, operation, HSE (health-safety-environment), asset integrity, economic/finance, legal/regulatory/permitting, and other relevant support) to perform a study process (such as feasibility study or product development). As a representative from project department, I have involved on the evaluating an improvement ideas to an existing asset to monetize remaining resources to maximize value with the enterprise agreement/license period.  The identification solution alternatives or key framing is conducted in a conceptual level by integrated team and addressing potential issues, e.g.:

-          enterprise strategic objectives

-          key business opportunity lists and drivers

-          stakeholders needs/wants and concerns

-          regulatory/permitting requirement

-          sustainable development issues

-          high level risks

-          interfaces

-          conceptual project scope and execution strategy.

Lesson-learned from previous projects which fail to meet the objective shows that lack of identifying risks relevant to stakeholders and regulatory/permitting during framing session is the most common reasons. Therefore it is important that more attention/evaluation is provided on the above risks.

The feasibility analysis is conducted using a high level (1-2%) of project planning process of the above conceptual project scope, e.g.:

-          using a benchmark to a similar project for determining the schedule

-          using a factorial method (Class V) to a similar project for estimating the capital

-          referring to the high level risks list to determine whether a “specific” contingency level to be applied

-          referring to previous similar project for project resource plan

-          benchmarking method for determining the operating expenditure

-          referring to current market for determining potential revenue.

The economic/financial reps then support the decision making analysis by providing the NPV, RoR, efficiency index (i.e. NPV/Capital, NPV/resources) for each alternatives. The sensitivity analysis also be provided, i.e. using Tornado Diagram, that will be presented to Decision Board (usually in the form of Decision Tree) with focus in the most attractive alternative to meet the strategic objective.

 When a decision is made, then asset manager (or opportunity manager) provide an “objective letter” which marks the agreement and acceptance of a “plan” by a project team from the asset team, signed of by both parties, project sponsor, and decision board. The objective letter would contain:

-          Business goals (strategic alignment, key drivers, constraints/limitations, and other information resulted from the framing session)

-          Sustainable development, regulatory/permitting, and safety goals

-          Financial/economic drivers (capital, operating expense, measure of merit/base economic and sensitivity)

-          Project description (scope, asset integrity requirements, site considerations, assumptions, value improvement considerations).

Reference:

Total Cost Management Framework, A Process for Applying the Skills and Knowledge of Cost engineering, 1^st edition, AACE International, chapter 2 & 3, edited by John K. Hollmann, PE, CCE

When we were in the Forming stage, I had a positive feeling towards the team performance in the future. Everyone was showing great commitment towards the project completion. But when we started to move into the Storming stage, added with each individual constraint, I began to think “Why are we here?”. The light of the team becomes darker and darker each day. We were starting to move without direction and weeks wasted with no particular progress being achieved.

After the project schedule is approved, I sensed that we are now moving to the Norming stage. Apparently we interpreted the task wrongly and need to do another task to create the complete project plan; slowly but sure we shift backward to the Storming stage again. This is why it took us double the time in completing the task. I realized myself in the, as cited from http://www.mindtools.com/pages/article/newLDR_86.htm, ‘emotional roller coaster’ situation when creating the project plan and schedule. This is why I think “Why are we here?” phase which is being addressed in Cog’s Ladder team formation model, is appropriately and exactly pointed out.

The “Meet and Greet” session last Friday was the evidence that we are now in the stage of socializing together. In addition, the increased momentum from the distance team leader (Nui, Pak Yoyok, Brent, Thank you!) in helping to make the project plan accomplished is the authentic evidence that we finally reach Norming stage and will be move on to individual task delegation of Performing stage very soon.

I learned that we should not take our first impression at the earliest stage as our baseline to measure the team performance. As a leader they should know how to positioned themselves into the switching situation of the team and react appropriately. The important thing the team should hope for now, as we move on to the Performing stage, is that the backward switching dies out.

From what I have studied in my paper, I try to apply it to the work. In my organizaiton, I am the one who prepare the actual data feedback to sales support team. As I discussed with you, my company set the standard activity for a common global way of cost report which is equivalent to the Phase Table in Omniclass. And the second level, I apply what ‘s in my paper to the work which is man-hour, subcontractor, material, and expense. As we work with SAP, it sometimes have some technical limitations on set the thing done in system. So I just work around and waiting to see the good result.

In the next step, I will try to motivate sales suppor team to set up the site type standard list such as BTS new site outdoor, BTS new site indoor, BTS expansion xxx, etc. in order to file cost type in database. We don’t have system for database yet but I thing we can start from excel first to make thing in simple.

For stage of Questto group development, I think we are in between Forming and Storming. Why I think it should be in both stage. From http://www.businessballs.com/tuckmanformingstormingnormingperforming.htm, we are in Forming stage because we have high dependence on leader for guidance and direction which David did a very great job from my perspective. Some team members still unclear what ‘s his or her role and responsiblity. And I think many members starts test tolerance of system and leader by ignoring blog or David requests. And it is true that Situaltional Leadership or Telling mode works for this stage.

And some situations in the team is shown that we may in Storming stage but not express it out. I would give an example from working on the project plan. I ‘m the one who question  why David have to make it rather than project control. But he come across the emotional issue by looking at the goal of the team.

The Questto team is a big team and some members are just start joining the team. So I think we are struggling in Forming stage rather than Storming stage. And leader should use Tellling mode to handle the team. My suggestion is to DIRECT the team members, what to do, what’s their role and responsiblity in the project..

Yesterday, I conducted small group knowledge sharing with my colleagues in office (around 7 people) regarding the AACE certification. I shared to them the programs and the learning material refers to the handbook during the class. It was a good time and a very good discussion. I was so excited knowing that they were very interested with the topic. We discussed each topic and then make some comparison with what is really going on in our office. Like example, the organizational structure where Ericsson is adapting the Strong Matrix Organization. We all arguing if it possible someday Ericsson become Projectized Organization.

When we discussed the conflict resolution we all then took the test of Thomas-Kilman conflict mode instrument online. In the end of the session, one of my colleague said, “I will propose all Ericsson employees to get this test as well!” We have a program called Innovation Award where employee can share the idea of improvement. I guess this is the best time to digest more and participate.  Wish me win!

Well, that was a very fun time during the sharing.

In the Bruce Tuckman model of forming, storming, norming, and performing the team is making the transition from norming to performing. The reason why I know we are there is that the team is building. We have had one event so far to build up the team and we have just completed our first deliverable. As a result of completing some work we have made the transition to performing. The key here is to continue performing while still keeping the fun activities of norming so the team can continue to build trust and respect for one another.

Within this group I think I have implemented a democratic approach. Everyone has had their say and has the opportunity to add in their input. If a decision could be made by the individual or a respect project manager I trust them to run with it, but they will be accountable for it if it goes good or bad. However, if there is a decision that needs to be made at the Program Manager level, I will take all information provided from all parties and subject matter experts involved and I will do my best to make an educated decision that serves the best interest of the team, the project, the stakeholders, and our customer. Otherwise I will work with the Project Manager to ensure that they make a decision that is in the best interest of the team, project, stakeholders, and customer.

For me all team members need to have integrity and be their word. I am doing everything in my power to ensure that I am my word, because at the end of the day, that is all I really have. On top of having integrity, they need to be committed, on-time, be in communication with the team, work within the team agreement, and perform at their best. I know enough to know I don’t have all the answers here. However, I am sure between the 27 of us one of us has the answer or the resource to get it . I am confident as a team if we pooled our resources we can accomplish all of our objectives and learn from one another in the process.

I do think that the Program and Project Managers are responsible for a team’s success or failure. The reason for that is I am responsible for program. I will hold the Project Managers accountable. The project managers in turn will hold each individual accountable which will make the project manager shift from accountable to responsible. The confusion is, what is the definition of accountable and responsible. Accountable is to be legally liable. Responsible to answer for. So I will answer for the program, as the project managers will be responsible for their projects, but the accountability lies with each individual.

If I have no formal authority over anyone, which I don’t in a Program Manager capacity is, I would continue to work on the project like it is change I want to make in my life. By seeing, doing, and living that change, perhaps others will choose to follow me out of respect and not because of inherent or implied authority.

References:

http://www.businessballs.com/tuckmanformingstormingnormingperforming.htm

http://www.mindtools.com/pages/article/newLDR_86.htm

Figure below show the changing role of project management, Old versus New.

 Figure 1 The Changing Project Management 

Program execution at front-end planning included construction preplanning and constructability results a strong construction involvement at the early stage on the project to ensure that engineering design and early planning fully recognize the requirements of an economic construction program. Constructability is largely concerned with the technology, methods of installation and the associated cost. Preplanning is largely to do with the scheduling of resources, organization, site access, and infrastructure.

 Looks PT Inco system in regards front-end planning include activities:

1. Project scoping is defined clearly as well as approval of all parties includes project manager and the sponsor. It is tough but shall be fairly project scope and objective. Feasibility study must be delivered the basic design package to define what scope of work before start of detailed Engineering.  It is included if any community and environmental issues as well as regulatory permit requirement. The basic design should be properly define the technical requirements and have sufficient depth to provide clear direction for all major design issues include : project description, design basis and specs, location, condition, definition of estimation( labor, budget, risk analysis) and appropriate detail level of schedule contents :  constrains and critical relationship. A poor of basic design will result in significant change, rework, and substantial cost increase.
2. HAZOP study is required to assess and address all hazard issues related with operation system facilities, maintenance system, strategically logistic and storage, procurement program, constructability (from planning to commissioning). Process Flow and Instrument Diagram (PF&ID) included basic design package assist to ensure all hazard of design parameters are assessed and addressed. The HAZOP shall be developed by project manager, design engineers, maintenance and operation personnel, construction personnel and safety representative. It is essential that capable and experienced construction and maintenance personnel are assigned to the project at this early stage and that their constructability and preplanning evaluations are a proper part of project development.
3. Procurement and Contract strategy  

The overall project schedule is structured around the construction schedule, with design drawing issues and material deliveries being matched to construction needs. Program execution in early stage will result no impact on design or purchasing unless early cash flow, construction cost and time savings can be considerable, even with the added cost of early construction involvement. Long lead material is being critical ordered forward include specific of material or equipments (non domestic) such structural material, instrument and electrical equipments which are considered non local product (international) to ensure that the product quality and it’s specification meet with the design standard. While time saving on earlier purchasing material, contract out job is being tendered to get competitive bids.

 Scope of work assessment is conducted between project manager, project team and contract engineer to determine the classification in which contractor will be included and invited in the tender process. The classification includes the specialization of contractor such: earthwork, mining, civil, mechanical or electrical construction and the category of contractor such local contractor (low, middle or advance class) or national/international contractor.  The category of contractor will be defined by scope of work assessment considering how complicated of the work and contract value liability. It’s also being considered  whether the scope of work will awarded to one contractor or divided the scope of work  to some local contractors considering contractor performance and specialization, maximize cost saving award to local contractor  or minimize a risk to award all scope to one local contractor especially for a project has greatly contract value but uncomplicated work. 

Further, a good execution plan should included major categories in regards what the scope of work is, how the work to be executed, when is the work to be executed and to be carried out ?

Reference :

Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Management Fundamentals, chapter 18, James A. Bent, CCC

Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Planning, chapter 20, James A. Bent, CCC

I now can see that the control account is the basic building block of the project management process. Through this control point technical scope, schedule, and cost parameter will be integrated. It is also the place where work progress will be monitored, where variance analysis will happen, and where correction action will be initiated. We can see that that the selection of the proper level of detail for the control account is a key factor for the success of the project management. If the control account is at a very summary level, there will not be enough control for management. If it is too detail, cost of operating the system is increasing dramatically and the information generated is too much that may overwhelmed the users and not useful for the project management. With this regard, in VNM the control accounts re at one level down compared to that in Viettel. I will have a chance to see if this change in way of project managing is effective or not. Gradually I will have the answers…

Before I post about this week lesson learn, allow me to share and cited the TUCKMAN model according to wikipedia (http://en.wikipedia.org/wiki/Forming,_storming,_norming_and_performing)

The Forming – Storming – Norming – Performing is a model of group development, first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. This model has become the basis for subsequent models.

From what have stated above, the TUCKMAN model seems the way out for every management issues. It has been use since 1965 up until now. How easy to solve a management problem and dealing with human as our resources and follow it as a model. And again some of broken chain communication in management might happen and major cause is lack of communication and not because the project managers did not follow or implement it 100% or less. This is what I implement in my project that all sides shall to provide a written documents for every item of works. Emails, paper works or even blackberry messengers, I use it to keep the communications alive and up dated.

The Storming and related to its productivity to my projects was taken way back in 13 years ago. Because the contractor has working and servicing this organization for that long. Therefore, I know for a fact that this contractor has a good productivity but again, nothing is perfect, they lack in documentation records and administration works. This is a good lesson for me to matching the storming definition with them. Because even the know working practice but they did not know that what they have doing for these years was wrong. As The storming stage is necessary to the growth of the team. It can be contentious, unpleasant and even painful to members of the team who are averse to conflict. Tolerance of each team member and their differences needs to be emphasized. Without tolerance and patience the team will fail. This phase can become destructive to the team and will lower motivation if allowed to get out of control. Cited from wikipedia.com about storming.

To write is always challenging for me. To start off with, I would like to start with analysis on failure of Transformers. The Transformers was very much divided with the level participation of the members up until 2^nd month of the participation. Out of the total number of members Transformers had, only approximately 5 to 6 of them were performing, the rest were trying and struggling to balance out with work and AACE assignments and some were below par (<50% completion as compare to planned) and some could not even get started. There level of participation for some of the team member was really did not reflect the commitment in the team agreement. The situation was become worst particularly when we were required to decide to enroll for exam. This was the date, based on my observation, were the entire unable to have an agreement with and the entire team fallen apart.

 Lessons learnt,

-         Leadership of the entire team was not really exercise appropriately throughout the whole process of distance learning.

-         There were very effective small teaming that was performing, but it was not really effective enough to influence the entire Transformer to perform.

-         Communication among the team member was not effective enough to put through certain decision.

-         Team leader/members did not communicate well

-         Disagreement on exam date even if that was already agreed at the beginning of the training or in the team agreement.

There are more, but the above could be the killer. This could happen in the current team, however the situational leadership, faith and commitment to the team should be the basis that we need to incline to proceed further.

Lead by example could be an answer of leading without authority.

While thinking of how to obtain quality of life, what is quality of project management then.  Fortunately, in Project Management, the quality are much well define then in life.  Quality Management in project management covers following:

- Quality Planning
- Quality Control
- Quality Improvement

Quality Planning, way of minimising errors in costing, delay in profits collection, lost profits incurring additional cost, etc.  In my current organisation, it has been a focus in terms of working on an accurate plan cost, getting “first-time-right” in minimising extra cost, and most of all, a clear payment term agreed with customer and knowing how to get or reach the acceptance phase and bill the customer as planned in billing and revenue forecast.

Quality Control is implemented and management through a series of governance process in place with proper reporting and documentation and review by key stakeholder to keep all projects resource, progress and cost in control.

Quality Improvement was largely contributed by our Sourcing team who keeps, approve and with ongoing negotiation for all external hardware and service cost that helps to reduce project cost.  The sourcing team also compare vendors’ service level and decide on preferred service provider to always improve quality of service to the project.

Comparing Quality of Project to Quality of Life, it is much clearer and structured for all quality of projects are documented with well written guides that is something standard to be followed for all.

1. Forming - As in the previous “Transformer” team, I can see now how the new “Questtocce” team is formed with the Team leader David driving the formation.  With assistance and advise from the Advisor (Dr. Paul) documentation like Agreement, Organisation Chart and Project Charters are created with input and remarks from the team members.

2. Storming - Was not in class to see the creation of this Questtocce team but believe it will be similar to how Transformer is form while all team member gathers together and brain stormed on the details of the formation.

3. Norming - While it takes a little while for the team member to agree and sign on the agreement letter before started working.  Program Manager is showing and practising the leadership and is bring the team together while all other members are contributing and playing their part.

4. Performing - Once the project plan is agreed and approved by the customer (CfH), all project progress will be expected base on the project structure setup and with hard work from all team members contributing to show the performance and results.

5. Adjourning - All story has an ending and all project will comes to an end.  when time comes, assignment completes, exam date will arrive, all team members will be break apart and everyone will continue their own path in their own life.

A logical and similar in concept life cycle would apply in every thing else other than just human being or projects …

1. Estimate documentation

A document that spell out the summary and estimate details that is presented in an understandable manner.

2. Cost Review

obtain agreement and verification from key members for various cost; engineering, design and other associated support costs.

3. Estimate Validation

To ensure key metrics from the estimate are in line with the same metrics from similar projects.

4. Risk Basis of Estimate

Agreement of the risk assessment and contingency amounts among project manager and project team members.

5. Management Reviews

Last series of reviews by the upper management often focus on substantiating the overall adequacy of the estimate in regards to its intended use.

Reference it back to my organisation where we followed closely to PROP-C methodology, the above can be referred to the PROPS-C ways of working.  In this estimate documentation, we have the Project Specification document that spells out the scope, WBS, purpose, timeplan, and other information that could contribute to show the breakdown of the costing and budget.  It is during Project Tollgate 1 where detail of the costings, solutions and other project key information are presented to the stakeholders and got approval before sale or opportunity can be continued.  This is when costing are reviewed and questioned, possible reduction or changes needs to be made before continuing on the proposal.  Risk template are filled up with mitigation cost and exposure available where part of the cost is translated into cost of sales while other risk exposure are listed to be monitored closely.  In the management review, they will reconcile to past estimates for justification and validation of the current estimates.  Managements are typically interested with the risk-cost with the mitigation actions/cost and what other exposure and possible cost incurred.

AACE recommended practice to distinguish each class of estimate with following 5 characteristics:
- degree of project definition
- end usage of the estimate
- estimating methodology
- estimating accuracy
- effort required to produce the estimate

Level of project definition is the primary driver use to identify which class of estimate to use, other characteristics are secondary.

Other methodologies and methods used in estimating includes

1.  Conceptual Estimating Methodologies

A quick method of approximate cost of project without the benefit of detail scoping, estimates in reference to their typical range of estimate accuracy.

2. Physical Dimensions Method

Physical dimensions (length, area, volume, etc) use in estimating.

3. End-Product Units Method

Estimating with historical data from similar projects to relate the end-product units.

4. Capacity Factor Method

Using the cost of a known capacity and multiply it by the factor of the new facility to get the cost estimate.  Also known as “scale of operations” using an exponent value of 0.6 (if no other information is available) doubling the capacity of a facility increases costs by approximately 50% and tripling the capacity of a facility increases costs by approximately 100%

5. Ratio or Factor Method

multiply of cost of single primary component.  Also known as “equipment factor” estimation.

6. Parametric Method

Using a mathematical representation of cost relationships that gives a logical and predictable cost.  A software company Galorath produced a Project Estimation software called SEER uses parametric modelling in deriving the results to user.

7. Deterministic Estimation Methodologies

A detailed estimate where each component of the project scope is studied and priced using the most realistic price available.

Back in my organisation and my pre-sales involvement, I would say few estimations methods are used base on the timeframe and accuracy of the costing required by the Key Account Managers.  Typically we would involve physical dimensions where fix BoM (Bill of Material) is available, End-Product Units if it’s another repeated project performed, Ration or Factor if deployment is base on same product with fix number of sites involved and deterministic estimation when responding to a tender.

Previously, my PMO Directorate faced difficulty in effectively managed the risk in our software engineering project. We cannot translate qualitative risk description into quantitative terms as well as to associates them with the cost of risks. Basically, we can clearly tell to our project stakeholders how much is the financial risk they have to carry when the risk events occurs.

What I learned from Humprheys, we can use The Maxwell Risk Driver Categories to help my project manager to translate the qualitative risk description into quantitative terms (Project Management Using Earned Value, p.77). Dr Floyd Maxwell proposed eleven “risk driver categories as follows:

1. Required Technical Advancement
2. Technology Status
3. Complexity
4. Interaction/Dependencies
5. Process Controls
6. Manufacturing Precision
7. Reliability
8. Producibility
9. Criticality to Mission
10. Cost
11. Schedule.

I am starting to integrate these drivers into my risk management assessment and plan. By using the Maxwell Framework, now it’s easier to me assign quantitative values into the result of qualitative risk analysis.

My consultation business focuses on risk management. It is something I preach about day in day out. Ironically, we do not have WBS which is the basis to perform our risk analysis for our own organization.

I have been looking for sample of WBS for FS but could not find any so far. So I guess given the importance of having it, I will need to create it for my organization myself.

I am going to have to identify the resources we have in FS, which I assume it will be people, and time. Money/capital here is not as important as it is in other industry as we are in full commission based industry. So given the two major resources that we have; people and time, I need to figure out how to allocate it into every boxes, as Paul said, no boxes, no resources.

What I need to focus on is the risk analysis, and how to manage it, after the WBS is created. The risk factors here will be; cost, which is the running expenses, the longer and the more appointment made without result will exhaust the budget for transportation, food, and entertainment; time,  which is the man-hour, in this case the result has to be positively correlated to the time spent, and; quality,  which is the quality of service rendered, advice given, which ultimately lead to closed cases, and customer satisfaction in the long run that will effortlessly generate more closed cases.

Eventually, the question for me will be;

1. How many people should I train to generate those results? Are the more people the more results? What is the law of diminishing return?
2. Are the more immediate results the more long-term results? How important is quality of service to the business in total (short-term and long-term)? Will we be better off by focusing on hit and run or high quality service/post-purchase service which will involve man-hours?
3. Do high running expenses positively correlate with high results? (e.g: will entertainment in five stars hotel, wine and dine, bring in high-net worth business?) and is the correlation strong?

It appears to me that team effectiveness increases at every stage of team development up to the “performing” stage (hence its name) where this is theoretically at an optimum level. Therefore for any established long term team (like a company structure), it is ideal if the team is operating at this performing stage most of the time. I say most of the time because I also believe that established teams eventually arrive at a stage where efficiency drops off when complacency and boredom set in. At this stage a “shake up” and reformation of the team is probably justified and desirable. That may be another blog topic.

But back to my original subject, with the change out of the leadership role on a regular basis it throws the team into disarray, effectively bringing the team back into the “forming / storming” stages. Gradually this may change to the “norming”, but rarely have I actually seen it get to the true performing stage before the leadership role changes again. Based on this the company team is always operating in a zone of lower effectiveness than optimum. This is not really very good business sense.

 I can see two things that could improve this situation. Leaders coming into an existing team environment need to have

 1. Constraints in the form of clear and strong strategic objectives and controls. This would limit the autonomy to effect changes that will disrupt the team structure thereby minimizing the impact of the change.

2. Imposed restrictions on the minimum time a leader is in role so that there is opportunity to reach to the performing stage thereby allowing the team opportunity to reach and maintain optimum effectiveness.

Now I would like to share my thoughts on Project Governance set-up which if I base to EVM, then I believe in project governance, we are not only govern project financial, but at the same time we are also govern project schedule. GAO Cost Estimating and Assessment Guide stated “without knowing the planned cost of completed work and work in progress (that is, earned value), true program status cannot be determined”. Then I question my self, should cost EAC (estimated at completion) held an important rule in project governance? Well, apparently not all projects (or project managers?) update their cost EAC based on their current project scopes, which actually, have a huge impact on running project financial result.

A loop between Sales decision and Project result, which in a correlation with EAC, should be linked, thus the whole process connected and can come up with better project governance result. In example, Sales decision is not only stop after handing over project budget to Project Manager who is going to run the project, but it should continue review and monitor along project life cycle. That is also worked with Project result, which not only stop at the end of project but, feedback to sales decision (again along project life cycle) is crucial to gave a complete perspective on a project.

Then as a result, one of an important measurement in Project Governance is a comparison between Project Budget (comes from Sales decision) and cost EAC (comes from Project result).

For the last few weeks, I got flooded with emails in this project. I felt bad not replying email in a timely manner to all. The existing PM is very helpful and professional. He would like to get me to know to all aspects of the project through emails. The project here is managed with control into a lot of technical details which put me into another learning curve. Ericsson is running managed service for this operator. That means the whole operation for this customer is run by Ericsson and the way of working is also very different from Viettel.  Many new names and who doing what are also needed to be remembered.  This is very overloaded to me. So how should I deal with this situation? I have to give priority to tasks and work from the top priority down. Some time the priority is not decided by me but by my line manager regarding work at Ericsson. I have shared this with my new line manager. Frankly said, I feel that spending time with this course is very helpful with me to become a better project manager. I will have a chance to equip myself with methodology, knowledge, tool and techniques to do the job. It is also very helpful to share experiences with other class fellows. And after some time doing the actual works, it is very good to review the theory part and draw lessons, prepare my self better in managing next projects.  Next week I will have a discussion on this and I will have a better idea what will needed to be done.

Let wait and see what decision will be made…

Regards,

Thang

Thus, I will start my first blog by sharing my perspective on working pre-sales activity and after-sales activity. In most of my work experience, I have been part of pre-sales activity and just recently shift to after-sales. One of experience item I felt to share is difficulties to link-up between price to customer and cost from internal team.

I do agree with statement that “WBS should be provided by Customer” but then again the RFP never being that detailed (so far) even though most of the time our customer comes up with their own requirement in RFP. Due to time limitation on responding to that RFP, somehow the question then how detail are we going to breakdown the plan cost preparation so it could come up with price match line item in RFP?? One of my colleagues ever says “Price is one thing, and Cost is another” in detail perspective, but then the question become how to measure price competitiveness if the detail inside is different from time to time?? Were our customers acknowledge these differences, or even more, were our internal teams acknowledge the differences and can justify (or explain) in front of customer?? These are the question I have been struggling and try to find the answer on my previous pre-sales experience..

Well, I do hope the materials that I have read and yet to explore more in this course (i.e. developing standardizes WBS, using Activity Based Cost, etc.) will help me to find some of the above question.

There are many types of leadership in FS industry (Financial Service Industry). I am going to take an example of Singapore-based FS company, an insurance company called A, if we focus on the top 10 biggest agencies, 7 of them is using the Theory X; highly controlled in activities, micromanagement, structured  SOP, and hierarchical in career advancement.

The remaining small numbers are adopting the Theory Y, which choose to assume that employees are self-motivated and exercising self-control.

In the dynamics of the both leadership types, there is one contradicting point I figured. Most FS companies are operating purely based on commission for the agents, and therefore who perform better should earn more. In this case, Theory X leaders GENERALLY, not all, exercise promotion by assignment/allocation rather than by performance/independence. Here is what happened, when there are a few unit managers under 1 district manager, they are going to do a combined recruitment and then assign each recruit to each unit managers in equal turn.

Now that I have part of my business coming from this FS industry, it is interesting to know which type of leadership actually works better in this kind of performance-based industry.

I myself is a type Y leader, I believe in everybody’s diversified potential to perform and be successful, and therefore I believe not only in their ‘present’ but most importantly in their ‘future’, and that the ‘future’ can be reached in various different ways, not confined to my OWN single way as a leader. I myself do not like to be micromanaged, and controlled in HOW I should achieve the target. Just let me know what it takes to get there and I will do it in my own terms, I will figure out how to get there, and during the course of me figuring out, I actually learn more and faster. I am not talking about ethics here; I am talking about the style, which is the “HOW”.

I think by exercising the promotion by assignment/allocation is totally a violation of performance-based culture. I am not talking about management support here, but about how everybody/managers will have different judgement /assessment towards every candidate they are looking to hire, and their judgement will determine if they are going to be better than the rest, or not. So I do not see this working; to assign candidate A that manager X interviewed, to manager Y, just because it is manager Y’s turn to get the next recruit. This will also affect the ability for managers to hire good recruits. In this case, all managers will end up with more or less the same numbers of recruits, but which ones of them do a better job in recruitment, nobody knows.

I am going to observe if the 7-3 rules of the 2 types above is representative of the whole industry, in Asia (or perhaps Singapore, to be more accurate).

So the question here is, which leadership type will be the best for performance-based organization and does that really commensurate with the results or there are other factors affecting the results?

Taking the example from our former Transformer group, many of us thought we were in Norming or Performing at week W03 in a survey while we missed some deadlines and still forming our operation. To see where the project stage is very important especially for our special studying project because each stage needs different attention, focus and process to make it succeed. With my little experience I  belive that our Quest To CCE is in forming stage which according to the businessballs website is typically described as following: ” High dependence on leader for guidance and direction. Little agreement on team aims other than received from leader. Individual roles and responsibilities are unclear. Leader must be prepared to answer lots of questions about the team’s purpose, objectives and external relationships. Processes are often ignored. Members test tolerance of system and leader”(1). I can say this quote was very true with our former Transformer. Transformer went through the forming stage with “unhealthy foundation” then we got troubles at the storming, norming and performing stage even we have excellent, eager and proactive team members when we met at Grand Mahakam class.

For our Quest To CCE, I think Tuckman should be used as a map for us to move forward. Management team should gather and work out the critical needs and works need to be done for forming stage. Remember our Dr’s reminder again and again these days ”get the project plan done” then we can move forward.

Nice weekend to all. Thao

Quote: (1) http://www.businessballs.com/tuckmanformingstormingnormingperforming.htm

Logic links as I understand it, is basically a link from one activity or another one sequenced in a logic order.  Few common types are to be compared here:

a) Mandatory dependencies (hard logics) – are relationships which acitivities have a predecessor and which links cannot be changed

-       estimations works cannot start before technical requirement is firmed

-       To sit CCE/CCC exams requires a paper to be submitted first

b) Discretionary dependencies (soft logics) – used to order activities but the relationship can be changed by priortizing the plan

-       3 men are to paint a room but only one roller available, so only one man can work at a time. Other areas to paint can be changed at later date.

-       Two chefs are planned to cook for 200 people, but if 4 chefs are available to cook at the same time with enough resources, the sequence will change to a shorter time.

Previously, as a planner, I’d help to build the hard logic first and play around with soft logics  (using LAGS and LEADS) as it could really be changed later based on avalaibility on that we deemed the best. But then, decisions on using discretionaty logics are to be carefully thought of  since the aim is always to optimize shortest possible duration and resources. Critical Path usually changed everytime I amended the soft logics but not to the point of being illogical.

I will hate to say in many of the projects I have been, a project planner/scheduler is always expected to own the schedule. Not the actual person who owns the activities/works. As a project planner, it is fundamental to sieve everyone’s idea to systematically and strategically put it on paper as a schedule.  To especially get the correct mandatory logic links, excellent communication is vital and project planner must have the ability to really make everyone understands its importance. Schedulers do not actually own the  schedule, but gather ideas, tactically be logical to link the correct actvities. Everyone has different method of doing things. Schedulers will make sure at the end of the day they captured the agreed method coming from the owner of the activities in the schedule.

People who adopt Project Management in any industry needs to  be educated that project scheduling is an area they need to familiarize with. The schedule is owned by the whole team and not only a person’s job. Even when the only one person in charge is called a SCHEDULER.

In Transformer team, we are not do it correctly at first start. All project managers are prepared their project plan speperately. We did not concern the total project resource availability. This may cause the overload manhour or resource crash because project manager may plan to use resource more than availability.

To follow Resource Loading Process in Humphreys book, we should do as below sequences;

1. Sum up the required man hours from all project tasks
2. Put time constraint or milestone and resource constraint 
3. Resource level, putting information step 1 and 2 together. To make it succesfully, it may requires overtime which mean more cost or requires more time to do this. We have to set the rule which one is more critical, time or cost.

It look simple but I have never done this before in my company. It gives me more understanding when I try to apply this to AACE class project plan. The benefits of doing this,

• Validating our project schedule whether it is realistic or not when concern resource availability. If not, we have to re-schedule.
• Early identify resource problem and Time plan problem in planning phase.
• Provide early and late start curve which let us know the flexibility in time and resource. And it also can put in S-Curve to provide boundary to the project  can be run.

It is the good concept and AACE class is the simple one that we can apply. As Paul’s recommend, the excel file is a good tool to apply what we have been learned into real life.

On projects that I have worked on, an example of mandatory logic would be the fact that paint needs to dry after being painted on a wall. The discretionary logic would be the color of paint, how many painters would paint the building, and how the painters would go about painting the building.

In reference to this project, the mandatory logic is the deadlines set by the customer and AACEI. I have to accept the deadlines that are set in reference to the paper because a late submission would mean that a person doesn’t sit for the exam. The discretionary logic that I have in this project is defining what work packages and the activity duration during the course of the project. I also have the authority to fast track or crash work packages in order to complete the project. By knowing what I can and can’t control I can make a better plan and have a schedule I can monitor throughout execution to closure.

By developing the project schedule for QuestToCCE using MSP, I positioned myself as a scheduler. Sitting on this position gave me the difficulty to predict the precise sequences for all the activities since everyone may have different sequencing in doing their tasks. But then I learned that a scheduler may give flexibility for the project team to work out from the sequence. For example, what I did at the first time when creating the schedule for Problem Solving was to have a mandatory logic for the sequencing, so Chapter 2 can only started after Chapter 1 is completed. This is for sure an incorrect logic and thus creating constraints in the schedule. Another problem for having a logical faulty is it might give a false critical path, as at the beginning my logic dragged the Bidding Project into the critical path while in reality the exam can still be performed as long as the mandatory logic of completing the paper is accomplished.

Best practice for the above examples is to use discretionary logic by adding lags in the schedule. Soft logic allows team member to start Chapter 2 before Chapter 1 start or in parallel and thus eliminating the constraints. In addition, the lags make the Bidding Project doesn’t need to be in the critical path anymore because the paper completion is the mandatory predecessor for the exam.

In conclusion, while the wrong logic can jeopardizing the schedule by creating unnecessary constraints, an accurate sequencing of activities in a project schedule will undoubtedly add value towards the overall quality of a project plan.

Thank you to Andy that has create marvellous posting of the week, that create a high standard posting for this team. In my humble opinion, it was also a good example from a good leader.

Looking a strong organization matrix like that, it was a dream come true for every project team/ or project management every where in the world. Where cross department was made in order to pursue project success. I was so envy where they have a big organization that understand this project management process without feeling any discreacy when they team member were recruited by project purposes. It took top down decision makers to allowing the project managers to do it. The operational and program managers has enourmous understanding for project management cycle.

Compare to mine, well, project management in my organization was not they core competency. I am fighting and struggling to run a good project management and their complete administrations. About their matrix organization, it is up to the administrator of the school to manage, I am less power that mandate to me. They only asked me, when, how and what for every project to finish with good result. It is good if we can learn from others, while this knowledge was like spare bullet for me IF I could get more authority upon me.

Cross department such from project team to finance department without any “green light” from administrator, would be like fighting the current, they (the person) would be feeling odd to their manager if they are not reporting to their finance managers while it is supposed for them to keep the PM reported first.

It has been years that cost and quality always on the other side of coin. That is what happen to my project right now, where we have designed together with the End User but the cost still need to forced further down in order to get more lower price, while we have already follow the budget. Seems like each side have their own hidden agenda, and forget about how to finish the project in time and according to the quality that we have designed.

Lesson learnt that I got that, IF only I have the authority to set the organization matrix. I may not wasting time to discussing about cost in Week #2 blog posting that I have to spent until 2200 PM. Even QS consultant do not have the authority to negotiate the price to contractor while according to me the Professional QS was trying to help us (the owner) to synchronize contractor’s price to the normal construction project in Jakarta.

Good night.

I was always been a bit wary of quality systems.  My first experience with a quality system was with an Engineering Consultant group that produced several folders filled with reams of forms that required processing and signing.  Their intent and goal was to achieve ISO accreditation, which they did.  The system was developed by a dedicated group of people with the sole focus on quality control.  It appears that this team gave very little, if any, consideration to the impact behind some of the control procedures.  As a result of this, by implementing the process they also generated a “monster” – a process so complex and involved that it seemed to overwhelm the base activity of engineering design.   This resulted in increased time and cost (effectively these are the same thing, especially in a Consultants’ world) to execute engineering designs.  Based on this first experience  I concluded that cost / benefit needs to be considered when implementing such a system along with practicality and workability.         

Quality systems are essential to ensure and verify that standards are being maintained.  It is important however to ensure that the level of effort required to maintain the quality system is at least proportional, if not better, than the level of benefit or risk reduction generated.  The quality system should actually augment, supplement and ultimately add value to the process it is aiming to support.

PT Inco manage own most sectors of business include production (mining and process plant), engineering, utilities, commercial, procurement, human resources and development, marketing , maintenance, construction  and accounting. Therefore , the matrix organizations adopts a hybrid of functional and project organizations i.e :

• Projects under OPEX are managed by sponsor of department where the functional manager direct operations of the project, while the role of staff position is primarily one of coordination and/or expediting (Weak Matrix).
• The projects under CAPEX or projects under OPEX that is required project management competence is managed by project managers who report to a functional manager (Balance Matrix). Otherwsie, there is inconsistency where a specific projects under CAPEX which are required specific engineering and technical competence such Plant system upgraded is preferred managed by project manager who report to plant manager.
• On a large project call “Green growth  project” is structured along project lines of the Manager of project manager , where the project manager has dedicated staff whose entirely scope of work and invested with significant authority and autonomy in project matter in absence of functional manager (Projectized Organization)

Current PT Inco OBS  Chart (Weak/Balance matrix)

Considering  to the strong matrix , it would be suggested a organization restructure to improve the organization to the strong matrix by assign Manager of project manager who is on an equal level or even higher level than the functional managers. Individual project managers are then assigned to specific projects, with full-time staff assigned from the various functional areas. Besides having a separate project organization, there may be separate operating procedures from the remainder of the organization (Strong Matrix). In a case where project managers on the same level as the functional managers will be provided with whatever support is necessary from the various functional organizations.

Propose PT Inco OBS Chart (strong matrix)

Matrixes achieve this by having the working personnel be simultaneously accountable to both the project manager and the departmental manager (Function Manager or Resources Manager). The departmental manager is generally responsible for the technical content and working resources and the project manager decides on the cost and time baselines. Unfortunately, the person who in the work group reports to two bosses and leads to divisions of responsibility, problems of loyalty, differences over priorities, poor communications, and lack of single and direct “ line authority”. This individual sometimes has to face difficult situation of not having the value of his or her daily contribution on the project’s success recognized

 The fundamental of matrix structure would be effective that requires the project execution plan to be clearly defined, strong project management culture and effective company leadership. Another important factor will be strength of personality, charisma, or style of the project manager. The project manager must actively compete for the best available people with the other project managers.

Otherwise, initially it was, but as time passed, the matrix failed and the answer was new approach, called Total Quality Management. Further, Dr. Edward Deming has developed 14-sets of criteria for developing a quality management program which is summarized as follows:

Client satisfaction, understanding and reducing variation, Top down management leadership and commitment, change and improvement must be continuous, ongoing training and education for all employee, a culture of personnel pride and job satisfaction. 

Reference : Skill and Knowledge of Cost Engineering, 5^th edition revised, AACE International , Project Organization, chapter 19, James A. Bent, CCC

The Project Management Institute identifies the following as types of organization structures :

1. Functional Organization, as a hierarchy where each employee has one clear superior , are grouped by specialty and subdivided into functional organizations.
2. Projectized Organization is structured along project lines with the project manager has dedicated staff whose entirely scope of work and invested with significant authority and autonomy in project matter in absence of functional manager
3. Matrix Organization

• Weak matrix, where Functional Managers direct operations of the company, with are selected and assigned from each functional area while the role of staff position is primarily one of coordination and/or expediting instead of entirely project manager role.
• Strong matrix features a Manager of project managers who is on an equal level or even higher level than the functional managers. Individual project managers are then assigned to specific projects, with full-time staff assigned from the various functional areas. Besides having a separate project organization, there may be separate operating procedures from the remainder of the organization. In a case where project managers on the same level as the functional managers will be provided with whatever support is necessary from the various functional organizations.   
• Balance Matrix, the project manager reports to one of the functional managers. While the project manager is fully responsible for direction the project, he or she is still subject to the priorities of a single functional organization. In worst case, the functional manager for the project manager may end up acting as the real project manager.

4. Composite Organization, this organizational structure features portions of the organization aligned with functional formats while other parts of the organization aligned as purely project organizations. The relative strength of projects versus functions will vary overtime as the number and importance of projects rise and fall.

As the most widely used organization structure as well as PT Inco organization are executed with the matrix organization or composite organization where in some circumstances the project manager having inadequate decision-making authority,  the fundamental of matrix structure would be effective that requires the project execution plan to be clearly defined, strong project management culture and effective company leadership. Another important factor will be strength of personality, charisma, or style of the project manager. The project manager must actively compete for the best available people with the other project managers.

Reference : Project Management using Earned Value, Chapter 4, page 95-106,  Humphreys & Associates

One of the key activities required developing project scheduling is establishing dependencies. We need to understand dependencies before we apply them into scheduling process. Dependencies need to be defined so that the executed work arranged in properly order. Dependencies restrict the order in which activities can be performed. Dependencies should be described when they exist, usually on the activity attributes document as well as through narratives on the project schedule network diagram or through a supplementary document to the diagram (Project Management Planning and Control Techniques, Rory Burke). There are two types of dependencies:

1. Mandatory (hard logic) – Inherent in the nature of the work being done. They often involve physical limitations for example before sitting for the exams; each participant must apply for the exam not later than April 27, 2010 and submit the paper to AACEI not later than May 11, 2010.
2. Discretionary (soft/preferred/preferential logic) – Based on experience, desire or preferences for examples the team have decided that Matching Tools & Techniques, Problem Solving, weekly Blog and Bidding Deliverables is needed to accomplish the project completion in quality although are not being required for the AACEI certification.

The arrangement of mandatory and discretionary dependencies play an important role in project scheduling since the incorrect establishment of project dependencies will create unnecessary constraint and give significant impact to the project schedule. So, the proper arrangement and balanced between these two constraints is become the major factor of project scheduling success.

1. Mandatory relationship :

• By considering there is no limitation on resources, this kind of relationship can be identified by using below question :
  • for predecessor : what is the last activity which must be complete before I can start the current activity
  • For successor: If I do not finish this activity, what will it delay or prevent me from starting?
• This relationship usually happens among vertical activity: between foundation and column, between column and beam.

1. Discretionary relationship :

• The relationship was determine due to sequencing on resources allocation based on the priority under project team discretion
• This relationship mainly happen among horizontal activities : finishing activity between room # 1 and #2, pouring raft foundation zone A and zone B

In my opinion the most difficult decision is to determine the appropriate discretion relationship, since there will be too much option to sequencing several activities which don’t have any mandatory relationship. Sometimes due to improper decision to determine discretionary relationship we will have false critical path.

 Planning stage:

• We have to carry out proper exercise when we come to decision to link 2 activities by using discretionary relationship , we have to ensure as a result we will have  ensure the propose schedule with optimum usage of resources and the shorter critical path.

Execution stage:

• Due to various reason the actual duration and the usage of resources during project execution may vary from its original plan which will creating new critical path as well as total duration of project and balance resource requirement graph, therefore when we performing schedule tracking we have to review this discretionary relationship whether still on right track or need to change (creating new discretionary relationship)

The conclusion of this 2 type of activity relationships are the mandatory relationship mostly become constantan while  discretionary relationship will be the variable factor to produce good project time schedule. Whoever able to create the right link will have real competitive advantage…

“Planning is the process of identifying options and making decisions with the objective of influencing the future, while Scheduling determines the timing of various activities needed to execute the plan.”

“Thus Planning is about WHAT to do and Scheduling is about HOW to do it.”

For me this is the basic understanding that I need to know relates to those two different things.

I follow as well all Paul’s email during project management plan development and summarized all the rules below :

• Only one activity with no PREDECESSOR – the Start Milestone.
• Only one activity with no SUCCESSOR – the Finish Milestone. 
• All other activities MUST have at least one logic link coming in and one logic link going out.
• The PERFECT schedule only has two constrained dates (The start milestone and finish milestone)
• All other activities are driven by LOGIC and the use of LAGS or LEADS.
• Do not link the WBS but Link the actual ACTIVITIES
• What is the LAST ACTIVITY that MUST be completed before I can start the current activity?  The answer to that question becomes the PREDECESSOR activity. If the answer is nothing, then link it to the start milestone.
•  IF I do not finish this activity, what will it DELAY or PREVENT me from starting?  The answer to that question will become the SUCCESSOR activity. If the answer is nothing, then link it to the FINISH MILESTONE.
• Critical path make should sense. If not, then there is something wrong with your logic
• IF the project team is the one creating the schedule (the people who are actually doing the work) then I can use discretionary logic.
• If the SCHEDULER who is making the schedule and NOT the project team, I am having them put in the MANDATORY logic only, anticipating that the DISCRETIONARY logic will be addressed by people adding in their own individual RESOURCE calendars.

I will ALWAYS look to this posting when I do the scheduling for sure!

Cheers….

Tea.

What is Servant-Leadership?

“Servant Leadership is one of better approach of leadership, which puts serving others-including employee, customer, and community- as the number one priority”. I agree with this definition, because for me a good leader is the one who really know what their partner/team member needed, not only the Customer’s. Afterward by understand all of this; he/she could construct the effective strategy. I think we could apply this concept both for Sales Person and Project Manager. Sales person should collect their team member’s consideration before offering the product with a certain lever, just start with simple question: Do they, while being served become healthier in cash flow? Wiser in taking a decision?, etc.. Same for Project Manager, which should really care with the availability and utilization of their Engineer, for example. This is one of Long Term approach of leadership because it contains of transformational process and building a positive changes. 

Characteristic of the Servant Leader

1. Listening, Instead of traditional skill, such: communication and decision maker, a servant leader also commit to listening intently to others.
2. Empathy, People (customer and team member), need to be accepted and recognized for their special unique spirits.
3. Healing, One core concept of Servant-Leader, having ability to healing ones and others.
4. Awareness, General awareness, and especially self-awareness, strengthens the servant leader.
5. Persuasion, Servant Leader seeks to convince others than coerce compliance.
6. Conceptualization, On top of knowing every one’s needed, Servant Leader must think conceptual and day-to-day focused approach.
7. Foresight, a characteristic that enable the servant leader to understand the lesson learned from past, the realistic present, and the likely consequence of decision for the future.
8. Stewardship, Servant Leader emphasizes the use of openness and persuasion rather than control.
9. Commitment to the growth of people, The servant-leader recognizes the tremendous responsibility to do everything possible to nurture the growth of employees.
10. Building Community, Servant-Leadership suggests that true community can be created among those who work within a given an institution.

 Thanks for this topic; finally I found the reason why Servant-Leader being a unique, those list of characteristic. Hopefully by sharing this definition, we (especially Quest to AACE Team) could consider it as one of our core leadership.

Between in this week, we have a discussion to get effectiveness during Services Cost Creation.
The proposed one is to create “Cost Book”. We, including me, were assigned to make this finished by June 2010. I’ll make this as my own small project.

Let Start with the WBS phases:

1. Collecting Type Site
2. Grouping Type Site into Categories.
3. Deciding Component of Unit Cost.
4. Optimizing the Unit Cost.

As Stated by Dr.Paul, Devil or God lies in Details, I’ll push my self to be more detail in Phase 1, since that the main phase to get the lesson learned. To accommodate the validity of my Cost Book, I’ll maximize the utilization of ABS (Activity Based Cost) to identify which activity that could apply an optimization and which one is already effective. This is gonna be tough, but hopefully by the each week I can pick one of Practices that Dr.Paul suggest to me related to Estimating The Cost.

Absence of TRUST