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Project And Investment

Project is one Form of investment.

Investment:
1. Direct => Project
2. Indirect => Deposit
Shares
Portofolio
Equity
Etc.

Investment / Project Needs to Consider:
1. Economics => Economic Analysis.
2. Risk => Risk Analysis.

What is Investment for ?

 INVESTMENT => ECONOMIC GROWTH =>
EMPLOYMENT
 (Every 1 % of Economic Growth will produce
about 300.000 Employment)
 For company, Investment/Project will result in
Growth => Increase Profit

CONCEPT OF PROJECT MANAGEMENT HALAMAN 1 dari 27

FEED : . concept/idea
. feasibility study (techno + economic)
. market research
. environmental
. design - engineering

THE MAIN ACTIVITIES OF ENGINEERING &
CONSTRUCTION PROJECT

CONCEPTUAL PLANNING/ IMPLEMENTATION OPERATIONAL
DEFINITION
1. Idea Formulation 6. Firm Identification Of 12. Detailed 18. Start Up And
All Aspects (Scope, Engineering Performance Test
Cost And Schedule) Design
2. Term Of References (TOR) 7. Basic Design 13. Development Of 19. Demobilization
Engineering Specification And And Close-Out
Criteria Report
3. Feasibility Study 8. Making Master 14. Purchasing Of 20. Total Project
Schedule And Cost Equipment And Performance
Development Of Materials Evaluation
Implementation
4. Identify Project Scope 9. Strategy And 15. Fabrication And 21. Routine
Dimension Resources Utilization Construction Operation
Planning
5. Identify Cost And Schedule 10. Early Purchasing 16. Quality
INSPECTION
11. Preparation Of 17. Testing And
Facilities And Commissioning
Participant

CONCEPT OF PROJECT MANAGEMENT HALAMAN 2 dari 27

STAFFING OR STYLE OF ORGANIZATION  DESIGNING A NEW TRANSPORTATION VEHICLE  DEVELOPING A NEW OR MODIFIED INFORMATION SYSTEM  CONSTRUCTING A BUILDING OR FACILITY  RUNNING A CAMPAIGN FOR POLITICAL OFFICE  IMPLEMENTING A NEW BUSINESS PROCEDURE OR PROCESS  RUNNING A NEW EVENT CONCEPT OF PROJECT MANAGEMENT HALAMAN 3 dari 27 . CLEARLY DEFINED OBJECTIVES. PROJECT CAN BE CONSIDERED TO BE ANY SERIES OF ACTIVITES AND TASKS THAT: • HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED WITHIN CERTAIN SPECIFICATIONS • HAVE DEFINED START AND END DATES • HAVE FUNDING LIMIT • CONSUME RESOURCES EXAMPLES OF A PROJECT  DEVELOPING A NEW PRODUCT OR SERVICE  EFFECTING A CHANGE IN STRUCTURE. WHAT IS A PROJECT DEFINITION OF A PROJECT A PROJECT IS ONE-TIME JOB THAT HAS DEFINITE STARTING AND ENDING POINTS. PMBOK (Project Management Body Of Knowledge) DEFINITION A PROJECT IS A TEMPORARY ENDEAVOR UNDERTAKEN TO CREATE A UNIQUE PRODUCT OR SERVICE: • TEMPORARY MEANS THAT EVERY PROJECT HAS A DEFINITE BEGINNING AND A DEFINITE END. • UNIQUE MEANS THAT THE PRODUCT OR SERVICE IS DIFFERENT IN SOME DISTINGUISHING WAY FROM ALL SIMILAR PRODUCTS OR SERVICES. SCOPE AND A BUDGET.

MAKING CORRECTIONS OR ADJUSTMENTS 5 M: MEN.DEFINITION OF RESOURCES NEEDED PROJECT MONITORING AND CONTROLLING: .DEFINITION OF WORK SCOPE AND REQUIREMENT . MATERIAL. MACHINE. SKILLS. (DO THINGS RIGHT) PMBOK DEFINITION: PROJECT MANAGEMENT IS THE APPLICATION OF KNOWLEDGE. METHOD CONCEPT OF PROJECT MANAGEMENT HALAMAN 4 dari 27 .PROJECT PLANNING . TOOLS AND TECHNIQUES TO PROJECT ACTIVITIES IN ORDER TO MEET OR EXCEED STAKEHOLDER NEEDS AND EXPECTATIONS FROM A PROJECT.DEFINITION OF QUANTITY AND QUALITY OF WORKS . ORGANIZING AND CONTROLING OF PROJECT ACTIVITIES TO ACHIEVE PERFORMANCE/QUALITY. COST AND TIME OBJECTIVES FOR A GIVEN SCOPE OF WORK.TRACKING PROJECT PROGRESS . WHAT IS PROJECT MANAGEMENT DEFINITION OF PROJECT MANAGEMENT PROJECT MANAGEMENT IS THE PLANNING. MONEY.PROJECT MONITORING AND CONTROLLING PROJECT PLANNING: . SUCCESSFUL PROJECT MANAGEMENT CAN THEN BE DEFINED AS HAVING ACHIEVED THE PROJECT OBJECTIVES: WITHIN TIME / SCHEDULE WITHIN BUDGET COST AT THE DESIRED PERFORMANCE / QUALITY PROJECT MANAGEMENT ESPECIALLY INVOLVES IN: .COMPARING ACTUAL OUTCOME TO PLANNED OUTCOME . WHILE USING RESOURCEES EFFICIENTLY (DO RIGHT THINGS) AND EFFECTIVELY.ANALYSING THE IMPACT OF VARIANCES .

CONCEPT OF PROJECT MANAGEMENT HALAMAN 5 dari 27 . OR WHOSE INTERESTS MAY BE POSITIVELY OR NEGATIVELY AFFECTED AS A RESULT OF PROJECT EXECUTION OR SUCCESSFUL PROJECT COMPLETION.WHO PROVIDES FINANCIAL RESOURCES THE BASIC FUNDAMENTALS OF PROJECT MANAGEMENT TO PLAN THE WORK (PLANNING) TO WORK THE PLAN (EXECUTING) OR ORGANISING TO MONITOR AND CONTROL THE WORK (CONTROLLING) PROJECT OBSTACLES IN ACCOMPLISHING A PROJECT WE NEED TO OVERCOME OBSTACLES. KEY STAKEHOLDERS ON EVERY PROJECT INCLUDE: PROJECT MANAGER CUSTOMERS OWNER SPONSOR . SUCH AS:  PROJECT COMPLEXITY  CHANGES IN TECHNOLOGY  FORWARD PLANNING AND PRICING  ORGANIZATIONAL RESTRUCTURING  CUSTOMER'S SPECIAL REQUIREMENTS  PROJECT RISKS  ETC.PROJECT STAKEHOLDERS PROJECT STAKEHOLDERS ARE INDIVIDUALS AND ORGANIZATIONS WHO ARE ACTIVELY INVOLVED IN THE PROJECT.

COST AND QUALITY ARE THE CONSTRAINTS ON THE PROJECT AND IS CALLED PROJECT TRIPLE CONSTRAINTS. CONCEPT OF PROJECT MANAGEMENT HALAMAN 6 dari 27 .  THE OBJECTIVE OF THE FIGURE IS TO SHOW THAT PROJECT MANAGEMENT IS DESIGNED TO MANAGE OR CONTROL COMPANY RESOURCES ON A GIVEN PROJECT: WITHIN TIME.  TIME.  THE ABOVE FIGURE IS A PICTORIAL REPRESENTATION OF PROJECT MANAGEMENT. WITHIN BUDGET/COST AND AT DESIRED QUALITY.

PROJECT CYCLE RELATIVELY SHORT LONG TERM ACTIVITY INTENSITY OF ACTIVITIES IS FLUCTUATED INTENSITY OF ACTIVITIES IS RELATIVELY FLAT ACTIVITIES MUST BE ACCOMPLISHED WITHIN BUDGET BUDGET & SCHEDULE LIMITS NOT TOO TIGHT AND SCHEDULE CONSISTS OF VARIOUS ACTIVITIES WHICH NEED MANY VARIATIONS OF ACTIVITIES NOT TOO MANY DISCIPLINES QUANTITY & VARIATIONS OF RESOURCES NEEDED ARE THE REQUIRED RESOURCES ARE RELATIVELY FLUCTUATED CONSTANT PROJECT MANAGEMENT Vs. COMPARISON OF PROJECT ACTIVITIES AND OPERATION ACTIVITIES THERE ARE MANY DIFFERENCES BETWEEN PROJECT ACTIVITIES AND OPERATION ACTIVITIES. CONCEPT OF PROJECT MANAGEMENT HALAMAN 7 dari 27 . OPERATION : AS LONG AS PROJECT : AS QUICK AS. AS CHEAP AS. AS GOOD AS THE FOLLOWING TABLE SHOWS COMPARISON OF PROJECT ACTIVITIES AND OPERATION ACTIVITIES: PROJECT ACTIVITIES OPERATION ACTIVITIES DYNAMIC & NON ROUTINE. REPEATEDLY& ROUTINE. BUT THE FUNDAMENTAL DIFFERENCE IS THAT THE OPERATION ACTIVITIES IS BASED ON THE CONCEPT OF UTILIZING THE EXISTING FACILITIES SUCH AS PLANT. ETC. CONTINUOUSLY AND REPEATEDLY. BUILDING. WHILST PROJECT ACTIVITIES FOCUS ON BUILDING THE SYSTEM OR FACILITIES WHICH ARE NOT EXIST YET.

ORGANIZATION.  SYSTEM APPROACH TO GET EFFICIENCY OF RESOURCES.  PRAGMATIC APPROACH AND USING SYSTEM ANALYSIS IN PLANNING. PROJECT ACTIVITIES BEHAVIOR AND THE MANAGEMENT REQUIRED PROJECT ACTIVITIES BEHAVIOR THE MANAGEMENT REQUIRED DYNAMIC (INTENSITY & ACTIVITIES CHANGED  QUICK RESPONSE TO THE CHANGES. DETERMINED. PRODUCTION -MANAGEMENT PROJECT MANAGEMENT AND PRODUCTION MANAGEMENT ARE SIMILAR. AS LONG AS POSSIBLE.  NEEDS CLOSE MONITORING AND CQNTROLLING  INTEGRATED PLANNING AND CONTROLLING NON ROUTINE & TARGET AND TIMING HAVE BEEN  NEEDS HIGH DEDICATION OF TEAM. RELATIONSHIP OF PROJECT MANAGEMENT TO OTHER MANAGEMENT DISCIPLINES CONCEPT OF PROJECT MANAGEMENT HALAMAN 8 dari 27 . • WHEREAS THE PRODUCTION MANAGEMENT WANTS HIS/HER PRODUCT LINE NEVER END TO BE AS LONG-LIVED AND PROFITABLE. ONE TIME JOB AND USUALLY WITH HIGH RISK.  EMPHASIS ON HORIZONTAL COMMUNICATION . MULTICOMPLEX WHICH INVOLVING VARIOUS  NEEDS COORDINATION WITH SINGLE EXPERTISES FROM QUTSIDE AND INSIDE RESPONSIBILITY. WITH ONE MAJOR EXCEPTION: • THE PROJECT MANAGEMENT FOCUSES ON THE END DATE OF HIS/HER PROJECT. PROMPTLY).

 THIS FIGURE IS A CONCEPTUAL VIEW OF THESE RELATIONSHIP  THE OVERLAPS SHOWN ARE NOT PROPORTIONAL LIFE CYCLE PHASES CONCEPT OF PROJECT MANAGEMENT HALAMAN 9 dari 27 .

THERE HAS BEEN AT LEAST PARTIAL AGREEMENT ABOUT THE LIFE CYCLE PHASES OF A PRODUCT: THEY INCLUDE: • RESEARCH AND DEVELOPMENT (R&D) • MARKET INTRODUCTION • GROWTH • MATURITY • DETERIORATION • DEATH CONCEPT OF PROJECT MANAGEMENT HALAMAN 10 dari 27 . THE PHASES OF DEVELOPMENT ARE KNOWN AS LIFE CYCLE PHASES. HOWEVER. THE BREAKDOWN & TERMINOLOGY OF THESE PHASES DIFFER. PRODUCT. PROJECT OR PRODUCT HAS CERTAIN PHASES OF DEVELOPMENT. PROJECT OR COMPANY.EVERY COMPANY. A CLEAR UNDERSTANDING OF THESE PHASES PERMITS EXECUTIVES TO BETTER CONTROL TOTAL CORPORATE RESOURCES IN THE ACHIEVEMENT OF DESIRED GOALS. PRODUCT LIFE CYCLES DURING THE PAST FEW YEARS. DEPENDING ON WHETHER WE ARE DISCUSSING.

THE PROJECT LIFE CYCLE CONSISTS OF:  CONCEPTUAL  PLANNING/DEFINITION  IMPLEMENTATION  CONVERSION/OPERATIONAL CONCEPT OF PROJECT MANAGEMENT HALAMAN 11 dari 27 .

Specifications Monitoring Actual and Resources costs Procedures & Progress utilization Authorization Detail WBS Variance Analysis & Corrective Actions Financing options Budgets Technological System and Scheduling & Reliable Progress Aspects Performances Cost Information Follow . CONCEPTUAL DEVELOPMENT DEFINITION IMPLEMENTATION TERMINATION & DESIGN (CONSTRUCTION) (CONVERSION) Evaluates Organizational Product and Assign Work To Provide potential Structure Process Design Participants Information alternatives Cost.Up Reporting Potential Markets Contingency & Competition Plans for High Risk Activities Selection of Projects Based On Profit-ability & L Risks CONCEPT OF PROJECT MANAGEMENT HALAMAN 12 dari 27 . Schedule Assessment of Communication.

COMPANY LIFE CYCLES THE LIFE CYCLE OF A COMPANY CONSISTS OF:  GROWING STAGE  COURTSHIP  INFANT  GO-GO  ADDOLESCENCE  PRIME  STABLE  AGING STAGE  ARISTOCRACY  EARLY BUREAUCRACY  BUREAUCRACY  DEATH CONCEPT OF PROJECT MANAGEMENT HALAMAN 13 dari 27 .

PROFITABILITY AND RISK 2. DEFINITION & DESIGN ENGINEERING PHASE:  PRODUCT AND PROCESS DESIGN  FINAL PERFORMANCE REQUIREMENTS  DETAILED WORK BREAKDOWN STRUCTURE (WBS)  SCHEDULING AND COST INFORMATION  DETAILED CONTINGENCY PLANS FOR HIGH RISK ACTIVITIES  BUDGET  EXPECTED CASH FLOWS 4. ITS PERFORMANCE AND EXPECTED USAGE IN SUBSEQUENT PROJECTS  ENVIRONMENTAL FACTORS RELATED TO GOVERNMENT REGULATIONS. NEEDS AND LONG TERMS COMMITMENTS  TO CONSIDER EXPECTED BENEFITS. INCLUDING EXPECTED COST. IMPLEMENTATION/CONSTRUCTION PHASE: CONCEPT OF PROJECT MANAGEMENT HALAMAN 14 dari 27 . DEVELOPMENT PHASE:  ORGANIZATIONAL STRUCTURE IS FORMED BY WEIGHING THE TACTICAL ADVANTAGES AND DISADVANTAGES OF PROJECT ORGANIZATION TYPES. STRATEGIC & TACTICAL ISSUES OF PROJECT THE LONG-RANGE (STRATEGIC) AND MEDIUM-RANGE (TACTICAL) ISSUES THAT ARE RELEVANT TO MANY TYPES OF PROJECT ARE: I. LINE OF COMMUNICATION AND PROCEDURES FOR WORK AUTHORIZATION AND PERFORMANCE REPORTING ARE ESTABLISHED. ESTIMATES OF REQUIRED RESOURCES  TECHNOLOGICAL ASPECTS SUCH AS AVAILABILITY AND MATURITY OF THE REQUIRED TECHNOLOGY. 3. ASSESMENT OF COSTS AND RISKS.  ONCE A DECISION IS MADE. POTENTIAL MARKETS AND COMPETITION MUST ALSO BE ANALYZED  THE SELECTION OF PROJECT IS BASED ON GOALS AND PERFORMANCE MEASURES. CONCEPTUAL PHASE  INITIATES AND EVALUATES POTENTIAL PROJECT ALTERNATIVE  THE SELECTION OF PROJECT IS A STRATEGIC DECISION BASED ON GOALS.

RESOURCES UTILIZATION. MGNT’s TAKS IS TO ASSIGN WORKS TO PROJECT PARTICIPANTS TO MONITOR ACTUAL PROGRESS AND COMPARE IT TO THE BASELINE PLANS 5. TERMINATION PHASE :  IN THIS PHASE. ETC. SCHEDULE. • THE CRITICAL STRATEGIC ISSUES HERE RELATES TO MAINTAINING TOP MANAGEMENT SUPPORT • THE CRITICAL TACTICAL ISSUES CENTER ON THE FLOW OF COMMUNICATIONS WITHIN AND AMONG THE PROJECT PARTICIPANTS • THROUGHOUT THIS PHASE. ARE ASSETS OF AN ORGANIZATION  READILY AVAILABLE. MGMT's GOALS IS TO CONSOLIDATE WHAT IT HAS LEARNED AND TRANSLATE THIS KNOWLEDGE INTO ON GOING IMPROVEMENTS IN THE PROCESS  DATA BASES THAT STORE INFORMATION ON COST. ACCURATE INFORMATION IS A KEY FACTOR IN THE SUCCESS OF FUTURE PROJECTS TYPICAL CONCEPT OF PROJECT MANAGEMENT HALAMAN 15 dari 27 .

TOTAL PROJECT LIFE CYCLE TIME PLAN ACCOMPLISH PHASE I PHASE II PHASE III PHASE IV CONCEPT DEVELOPMENT IMPLEMENTATION TERMINATION CONCEIVE DEVELOP EXECUTE FINISH GATHERED DATA APPOINT KEY TEAM SET UP: FINALIZED PRODUCT MEMBER IDENTIFIED NEED CONDUCT STUDIES .  END PRODUCT MOTIVATE TEAM TRANSFER PRODUCT OBJECTIVE RESPONSIBILITY  BASIC ECONOMICS  QUALITY DETAIL TECHNICAL EVALUATE PROJECT FEASIBILITY STANDARDS REQUIREMENT  STAKE HOLDERS  RESOURCES ESTABLISH: DOCUMENT RESULT  RISK LEVEL  ACTIVITIES . PROCURE GOODS & SERVICES RESOURCES CASHFLOW IDENTIFY  WBS EXECUTE WORK PACKAGES ALTERNATIVES PRESENT PROPOSAL  POLICIES & DIRECT/MONITOR/FORECAST/ PROCEDURES CONTROL: OBTAIN APPROVAL ASSESS RISK .INFORMATION CONTROL SYSTEM GUEST/ESTIMATE  BUDGET.QUALITY JUSTIFICATION PRESENT PROSPECT .COMMUNICATION SETTLE FINAL ACTS BASELINE:  GOALS.DETAILED SCHEDULE REASSIGN PROJECT TEAM  POTENTIAL TEAM  MASTER PLAN .WORK PACKAGES RELEASE/REDIRECT RESOURCES  STRATEGY ESTABLISH: .COST PROCEED RESOLVE PROBLEM MATRIX OF PROJECT PHASES CONCEPT OF PROJECT MANAGEMENT HALAMAN 16 dari 27 .ORGANIZATION REVIEV AND ACCEPT ESTABLISH: DEVELOP SCOPE .TIME BRIEF OBTAIN APPROVAL TO .SCOPE FOR NEXT PHASE CONFIRM .

OPTIMUM LIVE OF COMPABILITY EQUIPMENT PHASE III – BASIC ENGINEERING GOAL: MAXIMUM OVERALL PERFORMANCE/COST RATIO PROCESS CONFIGURATION MATERIAL & EQUIPMENT DATABASE • FLOW SHEETS (FINALIZED) .CONCEPTUAL ENGINEERING GOAL: TECHNOLOGY UTILIZED (MOST COST-EFFECTIVE) PROCESS CONCEPT VALUE ENGINEERING STANDARDS • OPERATIONAL EASE .FINANCING OPTIONS .COMMUNITY CONCERNS .MARKETING ANALYSIS .RAW MATERIAL CONCERNS REQUIREMENTS .ENVIRONMENTAL .HIGH RELIABILITY • LOW DOWNTIME .PROJECT CRITERIA GOAL: INDUSTRIAL PETROCHEMICAL PROJECT .LOW OPERATIONS & • COMPETITIVENESS MAINTENANCE • LOW COST OF CONSUMPTION (O&M)COSTS • ENVIRONMENTAL . PETROCHEMICAL PROJECT PHASE I .ACCURATE SPECIFICATION • SUPPLIERS SELECTION FOR AND TYPES OF GENERIC MAJOR PROCESS EUIPMENT COMPONENTS • SITE AND PROCESS AREA LAYOUT • PROCESS CONTROL SYSTEM PHASE IV .END PRODUCTS .SAFETY ISSUES PHASE II .PROFITABILITY & RISKS .DETAIL ENGINEERING GOAL: THE FUNCTIONAL PROCESS AND COST-EFFECTIVE CONSTRUCTION CONCEPT OF PROJECT MANAGEMENT HALAMAN 17 dari 27 .

Information 7. • DESIGN CONSTRUCTIBILITY • PROPER CONSTRUCTION AND DOCUMENTATION • ECONOMICAL PROCUREMENT OF MATERIAL • WORK PACKAGE REQUISITIONS FOR ON-TIME CONSTRUCTION PHASE V .RESPONSIBILITES OF ALL DOCUMENTED OPERATING PARTICIPANTS WELL INSTRUCTION DEFINED THE ROLE OF PROJECT MANAGER THE PROJECT MANAGEMENT SUBSYSTEMS The project management system consists of 7 subsystems 1. ON TIME. Culture 4.CONSTRUCTION GOAL: HIGH QUALITY WORK. Planning 6. Control CONCEPT OF PROJECT MANAGEMENT HALAMAN 18 dari 27 . WITHIN BUDGET • SAFETY PROCEDURES FOLLOWED • PRECISE PLANNING • FUNCTIONAL CONTRACT FORMS • RELIABLE PROGRESS FOLLOW-UP PHASE VI – COMMISSIONING AND START-UP GOAL: SMOOTH HAND OVER FROM CONSTRUCTION TO PRODUCTION • EFFECTIVE TEST LOOP .PARTICIPATION OF PROGRAM OPERATION PERSONNEL • EXACT SCHEDULING EARLY IN THE PROJECT • WELL DEFINED AND . Human 2. Methods 3. Organization 5.

FOR COORDINATING AND INTEGRATING ACTIVITIES ACROSS MULTIPLE FUNCTION LINES. PM NEEDS STRONG COMMUNICATIVE AND INTERPERSONAL SKILLS. A PM MUST NOT ONLY BE ABLE TO MANAGE THE ENGINEERING. PUBLIC AND CLIENT RELATIONS AND RISKS ANALYSIS. CONCEPT OF PROJECT MANAGEMENT HALAMAN 19 dari 27 .THE ROLE OF PROJECT MANAGER THE PROJECT MANAGER (PM) IS RESPONSIBLE. PROCUREMENT AND CONSTRUCTION ASPECTS OF A PROJECT. IN ORDER TO DO THIS. INFLATION AND COST ESCALATION. HE OR SHE MUST ALSO BE ABLE TO MANAGE ASPECTS RELATING TO FINANCE. COST ENGINEERING.

THE ROLE OF PM CAN BE DESCRIBED AS:  MANAGING HUMAN INTERRELATIONSHIP IN THE PROJECT ORGANIZATION  MAINTAINING THE BALANCE BETWEEN TECHNICAL AND MANAGERIAL PROJECT FUNCTIONS  COPING WITH RISK ASSOCIATED WITH PROJECT MANAGEMENT  SURVIVING ORGANIZATIONAL RESTRAINTS o Scheduling and time management skills o Budgeting and cost skills o Marketing. contracting. performance measures) o Resource Management. human relationship skills o Communication skills CONCEPT OF PROJECT MANAGEMENT HALAMAN 20 dari 27 . customer relationship skills o Negotiating skills o Technical skills (scope of projects) o Leadership skills (goal.

organizing is to arrange the corporate resources (5 m's = men.  Responsibility is the obligation incurred by individuals in their roles in the organization in order to effectively perform assignments. methods) in a synchronous action to achieve corporate objectives effectively and efficiently. BUT ONLY 3 PROJECT ORGANIZATIONS TO BE DISCUSSED • CONVENTIONAL/FUNCTIONAL.  Accountability is the state of being totally answerable for the satisfactory completion of a specific job Accountability = Authority + Responsibility THERE ARE MANY TYPES OF PROJECT ORGANIZATION.  The coordination function requires strong communications and a clear understanding of the relationships and interdependencies among people. PROJECT ORGANIZATION  Organization can be defined as groups of people who must coordinate their activities in order to meet organizational objectives  In general. so that authority. machines. money and management. materials.  Authority is the power granted to individuals so that they can take decisions for others to follow. responsibility and accountability of each member can be described clearly. PROJECT ORGANIZATION • PURE PROJECT ORGANIZATION • MATRIX PROJECT ORGANIZATION THE BASIC FACTORS THAT INFLUENCE THE SELECTION OF PROJECT ORGANIZATION STRUCTURE: • PROJECT SIZE • PROJECT LENGTH • PHILOSOPHY & VISIBILITY OF TOP MANAGEMENT • PROJECT LOCATION • AVAILABLE RESOURCES • UNIQUE ASPECTS OF THE PROJECT CONCEPT OF PROJECT MANAGEMENT HALAMAN 21 dari 27 .

CONCEPT OF PROJECT MANAGEMENT HALAMAN 22 dari 27 .

PROJECT ORGANIZATION Comparison of Pure Project Organization And Matrix Project Organization For Various Phenomena PHENOMENA PURE PROJECT MATRIX PROJECT ORGANIZATION ORGANIZATION  Effectiveness to achieve V quality and schedule  Efficiency In utilizing V resources  Big project V  Improvement of human V resources  Ability to manage multi V project  Career development V  Personal commitment to V meet target  Conflicts (internal and V external) Organizational Structure Influences on Projects Organization Type Project Functional Matrix Pure Project Characteristics Project Manager’s Little or None Limited Low to Moderate Moderate to High High to almost Authority Total Percent of Virtually None 0-25 % 15-60 % 50-95 % 85-100 % performing Organization’s Personnel Assigned Full- time to Project Work Project Manager’s Part-time Part-time Full-time Full-time Full-time Role Common Titles Project Project Project Manager / Project Manager / Project Manager / for Project Coordinator / Coordinator / Project Officer Program Manager Program Manager Manager’s Role Project Leader Project Leader Project Part-time Part-time Part-time Full-time Full-time Management Administrative Staff PROJECT MANAGERS VERSUS PROJECT CHAMPIONS Project Managers  Prefer to work in groups  Committed to their managerial and technical responsibilities  Committed to the corporation CONCEPT OF PROJECT MANAGEMENT HALAMAN 23 dari 27 .

take educated guesses. on the basis of under widely varying conditions. rely heavily on mathematical precision intuition. and try to be "about right" Exercise care in applying sound Exercise leadership in making decisions scientific methods. emphasize accuracy and Take calculated risks. based reproducible data on sketchy information Solve technical problems based on their Solve techno-people problems based on own individual skills skills in integrating the talents and behaviors of others Work largely through their own abilities Work through others to get things done to get things done MANAGEMENT LEADERSHIP Compliance Commitment Doing Things Right Doing The Right Things Administration Innovation Maintenance Development CONCEPT OF PROJECT MANAGEMENT HALAMAN 24 dari 27 .-2 ENGINEERING VERSUS MANAGEMENT What engineers do What managers do Minimize risks.  Seek to achieve the objective  Are willing to take risks  Seek what is possible  Think in terms of short time spans  Manage people  Are committed to and pursue material Values Project Champions  Prefer working individually  Committed to technology  Committed to the profession  Seek to exceed the objective  Are unwilling to take risks. try to test everything  Seek perfection  Think in terms of long time spans  Manage things  Are committed to and pursue intellectual values Transition from Engineer to Manager TABLE 1A.

WILL HAVE A CRITICAL IMPACT ON THE PROJECT SCHEDULE  METHODS ARE NEEDED TO DEAL WITH PROBLEMATIC TIME ESTIMATES  PROBABILITY THEORY AND SIMULATION HAVE BEEN USED SUCCESFULLY FOR THIS PURPOSE 2. UNCERTAINTY IN SCHEDULING  CHANGES IN THE ENVIRONMENT THAT ARE IMPOSSIBLE TO FORECAST ACCURATELY AT OUT SET OF A PROJECT. THE EXPECTED HOURLY RATE OF RESOURCES AND THE COST OF MATERIALS USED TO CARRY OUT PROJECT WILL POSSESS A HIGH DEGREE OF UNCERTAINTY CONCEPT OF PROJECT MANAGEMENT HALAMAN 25 dari 27 . UNCERTAINTY IN COST  LIMITED INFORMATION ON THE DURATION OF PROJECT ACTIVITIES MAKES IT DIFFICULT TO PREDICT THE AMOUNT OF RESOURCES NEEDED TO COMPLETE THEM ON SCHEDULE  ALSO. System /Structure People/Trust Short Range Long Range I-low Why Control Empowerment Accept status quo Challenge Status Quo PROJECT UNCERTAINTY IN PROJECT MANAGEMENT IT IS COMMON TO REFER TO VERY HIGH LEVELS OF UNCERTAINTY AS SOURCE OF RISK PRINCIPAL SOURCES OF UNCERTAINTY ARE: 1.

SUCH AS: • NEW REGULATIONS MIGHT AFFECT THE MARKET FOR PRODUCTS OF A PROJECT • THE TURNOVER OF PERSONNEL AND CHANGES IN THE POLICIES OF THE PARTICIPATING ORGANIZATIONS MAY DISRUPT THE FLOW OF WORK LAW OF PROJECT MANAGEMENT 1. 2. THE RATE OF CHANGE WILL EXCEED THE RATE OF PROGRESS.3. ONE ADVANTAGE OF FUZZY PROJECT OBJECTIVES IS THAT THEY LET YOU AVOID THE EMBARRASMENT OF ESTIMATING THE CORRESPONDING COSTS 4. OR WITH THE SAME STAFF THAT STARTED IT. PROJECTS PROGRESS QUICKLY UNTIL THEY BECOME 90% COMPLETE. NO MAJOR PROJECT IS EVER INSTALLED ON TIME. THE COST AND THE ULTIMATE SUCCESS OF THE PROJECT THERE ARE OTHER SOURCE OF UNCERTAINTY INCLUDING THOSE OF AN ORGANIZATIONAL AND POLITICAL NATURE. A CAREFULLY PLANNED PROJECT WILL TAKE ONLY TWICE AS LONG 6. WITHIN BUDGET. A CARELESS PLANNED PROJECT WILL TAKE THREE TIMES LONGER TO COMPLETE THAN EXPECTED. THEN THEY REMAIN AT 90% COMPLETE FOREVER 3. TECHNOLOGICAL UNCERTAINTY  THIS FORM OF UNCERTAINTY IS USUALLY PRESENT IN PROJECTS WHERE NEW TECHNOLOGIES ARE DEVELOPED AND/OR EMPLOYED  TECHNOLOGICAL UNCERTAINTY MAY AFFECT THE SCHEDULE. YOURS WILL NOT BE THE FIRST. 5. PROJECT TEAMS DETEST PROGRESS REPORTING BECAUSE IT VIVIDLY MANIFEST THEIR LACK OF PROGRESS CONCEPT OF PROJECT MANAGEMENT HALAMAN 26 dari 27 . IF PROJCECT CONTENT IS ALLOWED TO CHANGE FREELY.

CONCEPT OF PROJECT MANAGEMENT HALAMAN 27 dari 27 .