PALM OIL MILL

PROJECT MANAGEMENT

Ir. Amin Buhari Md Zain

Engineering Services Department
Golden Hope Plantations Berhad

INTRODUCTION TO
PROJECT MANAGEMENT

What is a project

A project is
A Project is a series of activities designed to achieve
a specific outcome within a set budget and time
scale
a one time job that has defined starting and ending
dates,
clearly specified objective, or scope of work to be
performed,

 A project is also defined as a problem scheduled for

solution
Unique Service or Product
Projects End When Objective Are Met/ Not Met
Projects are unique, No two projects are the same
a pre-defined budget,
and usually a temporary organization that is
dismantled once the project is completed.

WHAT IS PROJECT ?

Like most organizational effort, the

major goal of a project is to satisfy a
customers need.
Beyond this fundamental similarity,
the characteristics of a project help
differentiate it from other business
objective of the organization

WHAT IS PROJECT ?

The goal of a project is to create

something new, or unique.
A project is consider as temporary since
once the projects objectives are met, the
project team will break-up and go onto
other projects.
A project is non-routine, one-time effort
limited by time, budget, resources and
performance specifications designed to
meet customer needs.

What is
PROJECT MANAGEMENT

The art of directing and coordinating

human and material resources
throughout the life of a project by
using modern management
techniques to achieve predetermined
Objectives of Scope, Cost, Time and
Quality and Ensuring participant
satisfaction

PROJECT MANAGEMENT

Project management involves 3 major activities

aim to achieve project objectives i.e. the
planning, scheduling and controlling
Project management is both people and technical
oriented.
Project management involves understanding the
cause-effect relationships and interactions among
the socio-technical dimensions of projects.
Improved competency in these dimensions will
greatly enhance your competitive edge as a
project manager.

PROJECT MANAGEMENT

PROJECT MANAGEMENT

The field of project management is growing

as one of importance field in the country
and in the world
It is nearly impossible to imagine a future
management career if it does not include
management of projects.
Resume of managers will soon be primarily
a description of the individuals participation
in projects and their respective
contribution.

PROJECT MANAGEMENT

Effective project management

begins with
selecting and prioritizing projects that
support the firms mission and
strategy.
mastering both the technical and the
socio-cultural dimensions of the
process for successful project
implementation

The Project Life Cycle

The life cycle recognizes that projects have

limited life span and that there are
predictable changes in level of effort and
focus over the life of the project.
As a general rule, projects have a life cycle
consisting of four (4) to six (6) phase
model.

THE PROJECT LIFE CYCLE

For a six phase model, the phases are called

Concept Feasibility study, technology availability etc
Definition In this stage, specifications of the project are
defined.
Design Architectural, Engineering to address the concept and
definition firmed up
Development or Construction In this stage, the level of effort
increases and plans are developed to determine what project
will entail, when it will be scheduled, whom it will benefit, what
quality level should be maintained, and what the budget will
be.
Application/ Erection/ Execution In this stage, a major
portion of the project work takes place both physical and
mental. The physical product is produced
Post Completion Final staffing, commissioning, testing, final
report, licensing, product marketing etc.

Project effort starts slowly, builds to a peak,

and then declines to delivery of the project
to customer. The project life cycle typically
passes sequentially through six stages

Steps in Implementing Project

1.

Defining the Project Scope

2.

3.

Employing a project scope list

Establish project objectives
Deliverables
Milestone
Technical requirements
Authority requirements, Law etc
Limits and exclusion
Review with customer

Level of detail
Estimating guidelines for times, cost and
resources

STEPS IN IMPLEMENTING
PROJECTS

2.
3.

Establishing project priorities

Creating Work Breakdown Structure
WBS development
Major grouping found in WBS
How WBS help the project manager

4.

Integrating the WBS with the

organization

STEPS IN IMPLEMENTING
PROJECTS
5.

Coding the WBS for information system

6.

Project rollup

7.

Top-down and Bottom-up estimating

8.

Estimating and developing budgets

Cost estimates
Cost estimating methods
Time-phased budgets

STEPS IN IMPLEMENTING
PROJECTS

9.

10.

Level of detail
Estimating guidelines for times,
cost and resources

Responsibility
Normal conditions
Time units
Independence

Project Management
System

The project management system consists

of seven (7) components

Human
Culture
Organization
Techniques & methodology
Control
Information
Planning To achieve goal and objectives

If any of these components are not

properly designed, then the management
of projects will suffer.

PROJECT MANAGEMENT
SYSTEM

PROJECT MANAGEMENT
SYSTEM

Primary Objectives in all projects is

that project work must be completed
at the following criteria while using
resources efficiently and effectively
(P) At the desired performance level
(C) Within cost or budget constraint
(T) On time
(S) While holding the scope of the project
constant

PROJECT MANAGEMENT
SYSTEM

The first three of these are referred to as

P, C and T aspects of project management
Some people call them good, fast and
cheap (P = good, C = Cheap and T = Fast)
The S refers as Scope of works, jobs,
boundries or constraint
Eg: If a standard screw press at the oil mill is
priced c/w the standard hydraulic operation
control and the mill manager request
automatic hydraulic link to PLC, project
implementer will say that is a change in scope
of the job and will results in price increase.

PROJECT MANAGEMENT
SYSTEM

Mathemathically this can be illustrated

with a general equation as follows
C = f (P, T, S)
Cost is a function of Performance, Time and
Scope
(i.e. Cost of project will increase as P, T and S
increase.

In project management we cannot tie

down all P, C, T and S simultaneously. If
three (3) are specified the fourth (4th)
must be allowed to vary.

PROJECT MANAGEMENT
SYSTEM

Figure 1

Project Characteristics

The major characteristics of a project

are as follows
An established objective
A define life span with a beginning and an
end
Usually, the involvement of several
departments and professional
Typically, doing something that has never
been done before
Specific time, cost, and performance
requirements.

PROJECT CHARACTERISTIC

First - projects have a defined

objective, whether it is
constructing a 12 storey apartment,
developing 1000 hectares of
plantation land or building oil mill
projects to complete by end of
2006. This singular purpose is often
lacking in daily organizational life in
which workers perform repetitive
operations each day.

PROJECT CHARACTERISTIC

Second, because there is a specific

objective, projects have a defined
end point, which is contrary to the
ongoing duties and responsibilities of
traditional jobs. In many cases,
individuals move from one project to the
next as opposed to staying in one job.
After helping to construct one oil mill in
Sabah, an engineer may next be
assigned to construct oil refinery in
Bintulu Sarawak.

PROJECT CHARACTERISTIC

Third, unlike much organization work

that is segmented according to functional
speciality, projects typically require
the combined efforts of a variety of
specialists. Instead of working in
separate offices under separate
managers, project participants, whether
they be engineer, financial analyst,
marketing professionals, or quality
control specialist, work closely together
under the guidance of a project manager
to complete the project

PROJECT CHARACTERISTIC

The fourth characteristic of a

project is that is nonroutine and
has some unique elements.
Accomplishing something that has
never been done before.

PROJECT CHARACTERISTIC

Finally, specific time, cost and

performance requirements bind
projects. Projects are evaluated
according to what was
accomplished, what it cost, and
how much time it took. These triple
constraints impose a higher degree
of accountability than you typically
find in most jobs.

The Project Manager

Various types of managers exist to fill the

special needs. For example,

the marketing manager specializes in distributing a

product or services;
the production manager specializes in conversion of
resource inputs to outputs;
the financial manager ensures adequate funds are
available to keep the organization viable.
The project manager in a small sense performs the
same functions as other managers. That is, they
plan, schedule, motivate and control. However the
project manager is unique because she/he
manages temporary, no repetitive activities and
frequently acts independently of the formal
organization.

PROJECT MANAGER

Project managers are expected to

marshal resources to complete a
fixed-life project on time, on
budget, and within specifications.

PROJECT MANAGERS

Project managers are direct link to

customer and must manage the
interface between customer
expectations and what is feasible
and reasonable. They provide
direction, coordination, and
integration to the project team,
which is often made up of part-time
participants loyal to their functional
departments.

PROJECT MANAGERS

Project managers are responsible

for performance (frequently with
too little authority). They must
ensure that appropriate trade-offs
are made between the time, cost
and performance requirements of
the project.

PROJECT MANAGERS

Project managers generally posses

only basic technical knowledge to
make such decision. Instead they
must orchestrate the completion of
the project by inducing the right
people, at the right time, to address
the right issues and make right
decisions.

Clearly, project management is a

unique and challenging profession.

THANK YOU

CAUSE & EFFECT DIAGRAM