Project Management

A. Definition

Project Management is a managing and controlling work processes with skills, knowledge, tools and systems, and leading resources to achieve the project goals and objectives as well as the contractual requirement. The Project Management is communicating and coordinating with internal and external relevant parties effectively and efficiently to achieve the project success. Typical work process of project management are Initiating, Planning, Execution, Monitoring and controlling, and Close-out. In the planning and execution of the project to minimize the risks by an efficient resource and information management to fulfil the contractual obligations to maximize the company interests. A Project Manager (or Project director) is the person who has an overall responsibility to make decisions and oversee the project.

Project Manager (PM or Project Director, PD) is the person who has the overall responsibility for the successful project operation including initiation, planning, execution, monitoring, controlling and close-out of a project. The PM is responsible for development of the project goals and objectives with key project team members in accordance with the company policy, and to share with internal and external organization. The ability to adapt to the various company internal procedures and the project procedures and requirements, and to set up the specific project baselines including the project execution plans and key procedures to achieve the project goals and objectives. The PM establishes the project organization with qualified members, and share the roles and responsibilities for each team and members ensuring that the key issues of cost, time, quality and safety, and client satisfaction. The PM is the only point of contact for the stakeholders and a focal point for a client communication to determine and implement the exact needs of the client based on the contract terms and conditions. The PM may need to have: leadership; communication; fast work pace and decision making, complexity and problem solving, business acumen, planning, personal knowledge and experience, initiative and independence, adaptability, tolerance for stress, client focused.

B. Project Management Definitions

Baseline is a defined and agreed starting point of implementation, and for a future measurement and comparison. A Project Baseline is a basis of contractual responsibility which is clearly defined and agreed between contract parties prior to commencement of the project, and is a fundamental basis of measurement of the project completeness. The Project Baseline is a project management and control tool to help a sold understanding of the project for all internal and external project members.

Project Execution Plan (PEP) is one of the project baseline document and the governing document that establishes the means to execute, monitor, and control projects for the project operation and management. The PEP is to describe a project specific plan addressing the most effective method and maximise efficiency in the project execution, and the project specific actions have to be described complying to project goals, objectives and strategies. The PEP is to define the clear scope of work and other critical responsibilities as agreed in the contract, and how work to be done is in accordance with the company policies. The PEP is developed by the project key participants led by the project manager. The PEP should be approved by company management prior to publishing or applying. The PEP is a live document and should be updated with current and future project plans and procedures.

Project Organisation (Organization) is a team or group of people who work together for a particular purpose, such as a government department, business or project. The Organisation Structure is a framework to define the roles and responsibilities, work flow, reporting system, and decision making. There is two type of an organisation: a permanent and task force organization. The Project Organisation (Organization) defines the human infrastructure, and identifies roles and responsibilities of each positions that facilitates the coordination and implementation of project activities. One of the important decisions of project management is the form of organizational structure that the team members with a minimum missing, overlaps and conflict. The success of project depends on its organizational structure, key personnel capability, and management work process in which where decision is made. The Project Organisation can be structured as a Functional Structure Organisation, Project TF (Task force) (traditional Hierarchical) Structure Organisation, and Matrix Structure Organisation. The Project Organisation can be evaluated different options based on the project environmental, company needs, assigned personnel capabilities ensuring efficiency, productivity, operational effectiveness.

Contract is an agreement between two or more parties, to exchange providing a specific work (Scope of Work) with agreed compensations (cost, time duration and any others specified in the contract) include terms and conditions. The Contract terms and conditions including both parties' obligation, liability, payment, and other terms and conditions are legally binded. The Contract dispute settlement process and change management work process are a part of contract. In addition to being a signed document, resulting from acceptance of offers by award notices, letters of intent (LOI), and orders such as POs are a contract.

Work Breakdown Structure (WBS) is an outline for the project scope of work, and a hierarchical scope of work division of project, and provides a structure for organizing the schedule and cost data for analysing, tracking, and reporting purposes. The WBS is a task oriented, detailed breakdown that defines the code structure for tasks, and is a key project deliverable that organizes the team work with the elements of scope, responsibility, schedule and cost covering the entire project scope of work into manageable sections. (e.g. Units, Systems, Disciplines, Deliverables, etc.). The WBS initiates a work activity (deliverables) responsibility matrix, the Organizational Breakdown Structure (OBS) initiate a team organisation (resources) base responsibility matrix, and a resource based Cost Breakdown Structure (CBS) that costs are allocated to the lowest level of the WBS.

Risk Management is a work process to eliminate or minimise potential impact such as loss money or extend schedule or less performance caused by a risk. A work process is a risk identification, assessment and analysis (probability and impact), treatment classification (risk response), prioritisation, reporting, monitoring and controlling. A method of risk treatment classification (hedging) is  an Avoidance (not to take: High probability and high impact); a Transfer (Financing, Insurance: Low probability and high impact); a Mitigation (Sharing, Contingency provision: High probability and low impact), and an Acceptance (Taking, Retention, and Unidentified Risk: Low probability and low impact)

Problem Solving is a process of finding solutions to problems using mathematical or systematic analysis with individual's critical thinking skills. The Problem Solving can be proceeded: 1. define the problems and the cause of problems; 2. perform the gap analysis (comparison of actual and expectations); 3. develop and generate alternatives; 4. evaluate and select the alternatives solution; and 5. implement and follow up. (Refer to a Decision making)

Decision Making is an act or process of making decisions among possible alternatives. The Decision Making means a risk taking judgment. The skills for the effective decision making is: recognise situations including a capability of organisation; create options or alternatives, identify and evaluate the possible consequences of each options; clarify and make a clear decision, and implement actions. Sequential Steps for the effective decision making (Source: Harvard Business Review): 1. Classifying the problem. 2. Defining the problem. 3. Specifying the answer to the problem. 4. Deciding what is “right,” rather than what is acceptable, in order to meet the boundary conditions. 5. Building into the decision the action to carry it out. 6. Testing the validity and effectiveness of the decision against the actual course of events.

C. Additional Definitions