PT. TAIHEI DENGYO INDONESIA
Project Management in Brief Explanation
11 Jan 2022
by Achmad Silmi
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PROJECT MANAGEMENT In brief explanation (based on PMI / PMBOK)
1. What is project, program & portofolio? And the difference with operation.
2. Project Life Cycle & Project Management Process
3. Project Management Process - Process Groups
4. Process Group Initiation – Project Charter
5. Process Group Initiation – Stakeholders
6. Process Group Planning – Collect Requirements
7. Process Group Planning – Define Scope
8. Process Group Planning – Scope Baseline
9. Process Group Planning – Project Scope Statement
10. Process Group Planning – WBS (Work Breakdown Structure)
11. Process Group Planning – WBS Dictionary & Scope Creep (limitation)
12. Process Group Planning – Time Management & Schedule
13. Process Group Planning – Gant Chart
14. Process Group Planning – Resource Management (Fast Tracking & Project Crashing)
15. Process Group Planning – Cost Management
16. Process Group Planning – Budget Development
17. Process Group Executing – Gold Plating
18. Process Group Monitoring & Controlling
19. Process Group Closing
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1. What is Project, Program & Portofolio? And what is the difference with Operation
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2. Project Life Cycle & Project Management Process
Project Life Cycle is unique and different for each project or each company.
For Example:
Project Life Cycle for SWFGD Soda System (New System)
Basic Design
Detailed
Design
Material
Procurement
Fabrication
Delivery
Installation
Commissioning
Closing &
Reporting
Inspection
Repair /
Replacement
Closing,
Finishing &
Reporting
Project Life Cycle for Boiler Maintenance (existing system)
General
Preparation
Access
Preparation
Pre
Inspection
Shutdown
Cleaning
Project Management Process is same for every project and consist of same process groups
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3. Project Management Process – Process Groups
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4. Process Groups Initiation – Project Charter
Example of Project Charter
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5. Process Groups Initiation – Stakeholders
Example of Stakeholder List
Company
POMI
Category
Client
Name
Function
Role
Bustanul
Sr. Proj. Engineer
Proj. Leader
Sardi
Proj. Engineer
Corrd. Boiler
Kenanga
Proj. Engineer
Coord. Air Heater & BOP
Aris
RIC Boiler
Coord. Boiler Site Activities
Etc.
POSSI
MPW-NGS
MPW-IDN
TDI
Main Contractor
Dayka
Commercial &
Purchasing
Commercial & Contract
Related Matters
Main Contractor
Eko Priyono
Site Manager
Consortium Site
Management Leader
TA
N. Setani
Proj. Manager Boiler
Leader TA
TA
T. Yamamoto
Boiler TA
Eng, Inspection & Report
Local TA
Catur P.
Boiler Inspector
Inspection & Report
Dian K
Boiler Inspector
Inspection & Report
Setiawan
Proj. Manager TDI
Proj. Leader TDI
Frydella
Site Manager TDI
Site Management
Chandra
Sp.Intendant Boiler
PIC Boiler
Site Management
Etc.
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6 – 9. Process Groups Planning
Requirements, Scope, Scope Baseline & Scope Statement usually already prepared by
client in PR or RFQ documents as below figure (in TDI’s case). However it is necessary to
make clear limitation (Scope Creep) with providing clarification documents. Unclear scope
limitation will make dispute and may be affect to schedule & cost in future.
Example of Requirement
(PR or RFQ) from Client
Example of Detailed Scope of Work (SOW)
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10 – 11. Process Groups Planning
WBS -> Breaking work into smaller task to make the work more manageable and approachable.
WBS Dictionary -> formal project document that provides detailed descriptions of key information
for all Elements in the Work Breakdown Structure.
Scope Creep -> Every scope need to be described detailly to prevent the unnecessary works or
dispute in the future.
Example of WBS
Template of WBS Dictionary
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12 – 13. Process Groups Planning
Time Management & Scheduling -> Process to make time based activity from the WBS
Gant Chart -> Document of time based activity that complete with duration, sequence & relation between task/activity
Critical Path -> The critical path in project management is the longest sequence of activities that must be finished on
time to complete the entire project
Example of Gant Chart & Critical Path
Red color is critical path, if one
of this activity is late to finish,
then probability of overall
schedule to be late is high
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14. Process Groups Planning – Resource Management
Project Resource -> anything that is necessary for the project to be completed. Without them, it’s impossible for a
project to be completed successfully.
Type of Resources in Projects:
a. Human: These human resources are the various team members who will be participating in the project,
usually allocated according to their skills and specialties.
b. Financial: The cash or financing facilities that can be used to see through the project.
c. Equipment: This is the physical equipment that will be used. Examples would include from small items such as
computer, phone, until large items such as heavy equipment, crane, forklift, etc.
d. Government: For projects deemed of public interest, the government may provide support in the form of
expertise, regulation, standards, certification, etc.
e. Technology: This refers to the available software, applications or data processing tools that the project can
utilize.
f. Administrative: This is the organizational support that the project will receive from the organization’s
structures, for example using the HR department to assist with hiring or legal to finalize contracts.
g. Property: This is the building or offices which will house the project’s location, accommodation for project
members includes all of other facilities.
h. External contractors: As their success will also be linked to the project, contractors become a resource beyond
purely physical help, including providing expertise, preferential rates and industry contacts.
2 Basic Concept of Managing Resources due to Schedule Compression
a. Fast-tracking is a technique where activities that would have been performed sequentially using the original
schedule are performed in parallel. In other words, fast tracking a project means the activities are worked on
simultaneously instead of waiting for each piece to be completed separately. But fast tracking can only be
applied if the activities in question can actually be overlapped.
b. Crashing is the technique to use when fast tracking has not saved enough time on the project schedule. With
this technique, resources are added to the project for the least cost possible. Cost and schedule tradeoffs are
analyzed to determine how to obtain the greatest amount of compression for the least incremental cost. And
crashing is expensive because more resources are added to the project.
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15. Process Groups Planning – Cost Management
Cost in project can be categorized into several items in general (can be different in each company or
organization):
1. Material Cost -> Cost of permanent materials that will be fabricated or installed.
2. Direct Cost -> Cost of service that is directly related to the project activities.
a. Direct Manpower (workers, supervisor, engineers, etc.)
b. Equipment, Tools & Machinery (heavy equipment, truck, welding tools, power tools, etc.)
c. Consumables (welding electrode, safety consumables, fuel for heavy equipment, etc.)
d. Supporting Materials (scaffolding, temporary materials, etc.)
e. Mobilization & Demobilization (cost to transport heavy equipment, man power, materials, etc.)
3. Indirect -> Cost of service that is not directly related to the project activities
a. Indirect Manpower (management staff, administration staff, cleaning services, driver, etc.)
b. Temporary Facilities (site office, toilets, warehouse, etc.)
c. Operational Expenses (daily transportation, office supplies, meals, drink water, electric supply for
site office, etc.)
d. Other cost (training cost, certification cost, insurance, taxes, etc.)
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16. Process Groups Planning – Budget Development
The budget for a project is the combined costs of all activities, tasks, and milestones that the project must fulfill. In short:
it’s the total amount of money you’ll need to finish the project that should be approved by all the stakeholders involved.
In commercial Project, forecast of revenue may also be included in budget development, so the cash flow of project can
be predicted.
Example of Budget Summary Format
Revenue
Profit
Cost
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17. Process Groups Execution
The Diagram below is the fundamental of Project Management. As the Policy of TDI:
1. Safety First
2. High Quality Assurance
3. Keep to the Schedule
Safety
Cost
Safety, Quality & Schedule need to be understanded by every single person that is related to the project, not only to
certain individual or position. Neglecting this three aspect at the end will relate to increase in Cost. And increase in Cost
will surely affect to development of Company.
This 4 aspects surely can be expanded to more detail items, also each aspect is related one another. For example:
Quality can be achieved with clear/correct method, correct tools or equipment to be used & qualified personnel, etc.
Schedule can be achieved with clear SoW, clear decision making personnel, etc. However, unclear/wrong method will also
affect to schedule and obviously to cost.
Gold Plating
Almost in every project, Client will always ask for better performance. Sometimes it will be more than agreed scope,
higher grade materials, etc. It is become mandatory for project related personnel to understand scope & schedule so it
will keep as agreement or contract.
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18. Process Group Monitoring & Control
Monitoring and Control Process Group consists of those processes performed to observe project execution so that
potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control
the execution of the project.
Monitoring and Control Processes
1. Monitoring and Controlling Project Work -> collects, measures and disseminates performance information, and
assesses measures and trends to forecast potential items requiring corrective action.
2. Integrated Change Control -> ensures that changes as a result of project corrective actions and other controlling
factors are managed across the project knowledge areas.
3. Scope Verification -> ensures that project deliverables are formally accepted.
4. Scope Control -> ensures that changes to project scope are controlled.
5. Schedule Control -> monitors and controls changes to the project schedule.
6. Cost Control -> monitors and controls costs and changes to the project budget.
7. Performing Quality Control -> measures specific project results to determine whether the project is meeting quality
standards.
8. Managing the Project Team -> tracks team member performance, provides feedback, resolves issues and coordinates
changes to maintain and improve project performance.
9. Performance Reporting -> collects and distributes performance information — including status reports, progress
reports and forecasts.
10. Managing Stakeholders -> manages stakeholder communications and works with stakeholders to ensure that
requirements are satisfied and issues are proactively resolved.
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19. Process Group Closing
Basic project closing activities:
1. Assurance that all the work has been completed.
2. Assurance that all agreed upon project management processes have been executed
3. Formal recognition of the completion of a project—everyone agrees that it is completed.
Further project closing activities:
4. Making sure all the work that needed to be has been done.
5. Obtaining approval by the project's sponsor and customer (whether internal or external) for the work completed.
6. Reviewing whether or not all organizational governance processes have been executed.
7. Assessing whether or not the necessary project management processes have been applied.
8. Administrative closing of any and all procurements, reviewing that all work on the contract has been completed and
that both parties have completed their contractual obligations toward each other.
9. Formally recognizing the completion of a project and its transition to operations.
10. Validating that the project achieved benefits identified in the business case.
11. Capturing of lessons learned: What was done well, and should be documented so it can be repeated in the future?
What could have been done better? And if so, how can it have been done better?
12. Disbanding project resources, freeing them to perform other projects and undertake other tasks as required within
the organization.
13. Transitioning project deliverables to the customer organization in a manner that warrants seamless operations and
support.
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PT. TAIHEI DENGYO INDONESIA
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