Pmp in Manufacturing Essay Example

Pmp in Manufacturing Essay Example Pmp in Manufacturing Essay Pmp in Manufacturing Essay Executive Summary: This organisation manufactures and sells building automation, fire, and security system to existing customer and run the business through project concept. The company has being using the contract document to execute project without the proper use of project management plan or framework. In this scenario the contract document is prepare comprehensively with a scope, time and cost and this report is structure to critically analysis the project management plan and areas where the organisation can incorporate project management plan into the life cycle of its project. The nature of this project is a project venture where it fit the definition of a project the mapping of five processes and the nine knowledge areas during the duration of its life cycle. It also analyse the role of project manager that required to be all rounder (familiar with general management of business) in fulfil its stakeholders objectives. The organisation do not have a project management plan hence the discussion of this plan is concentrated to the best practice methodology how the project management is develop and where and what information is required for the development of project management plan base on the complexity of the project. The input, techniques and tool, and output methodology of project management institute (PMI), 2004, project management book of knowledge (PMBOK) is use in this discussion to discuss the development of project management plan. Audience of the project management plan is also critically being discuss to illustrate who is the audience, why this audience, what do the audience want from project management plan, how do they use the project management plan and how this project management plan is being presented and structured. Project management plan with the following knowledge areas of integration, scope, cost, time, quality, human resources, risk, and procurement and other model such as PRINCE 2 and Chapman’s is also briefly discussed with comparison to PMBOK. The project management plan is a collection of information of its subsidiary plan and components. This subsidiary information is an input of the project management plan development and this input consist of four major segments. The preliminary statements define what need to be accomplished at the boundaries of the scope of the project followed by the project management process discussing all the nine areas of PMBOK of integration management, scope management, time management, cost management, quality management, human resources, communication management, risk management, and procurement management. The other two major segments of the input process of project management plan, address the enterprise environment factors and organisation process assets that surround and influence the success of the project. In the second categories of project plan development are the tools and techniques in collecting, monitoring, and controlling the four major input process of project management plan. These tools are the project management methodology, information system and expert judgement of the organisation assets and environmental. In conclusion and recommendation, this report discusses the benefits of the project management plan and the areas where the organisation can adapt and use project management plan in its executed project. Table of Contents : Executive Summary:vii Table of Contents:ix List of Figures and Tables:x 1. Introductions1 2. Background of project3 3. 1. Nature of venture4 3. 2. Nature and purpose of the chosen project management plan10 3. 3. Audience of project management plan14 3. 4. Structure of the project plan16 4. Contents of the Project Plan Sections18 4. . Develop inputs of PM Plan19 4. 1. 1Preliminary Project Scope Management19 4. 1. 2Project Management Processes20 4. 1. 2. 1Project Scope Management20 4. 1. 2. 2Project Time Management21 4. 1. 2. 3Project Cost Management22 4. 1. 2. 4Project Quality Management23 4. 1. 2. 5Project Human Resource Management23 4. 1. 2. 6Project Communications Management23 4. 1. 2. 7Project Risk Management24 4. 1. 2. 8Project Procurement Management24 4. 1. 3 Enterprise Environment Factors24 4. 1. 4Organizational Process Assets24 4. 2. Tools and Technique of PM Plan25 4. 2. Project Management Methodology25 4. 2. 2Project Management Information System25 4. 2. 3Expert Judgment25 4. 3. Output of a PM Plan25 5. Conclusions26 6. Recommendations27 Appendix 1: Subcontract agreement between customer and organisation (No PM Plan)28 Appendix 2: Assignment 1 of MGT802229 Appendix 3: How PRINCE 2 can compliment PMBOK and your PMP30 Appendix 4: A comparison of PRINCE 2 against PMBOK31 Appendix 5: PRINCE 2 Process Model32 List of References33 List of Figures and Tables: Figure 3. 1. 1: The five phases and 25 action steps of project management life cycle5 Figure 3. . 2: The project leaders direction finder6 Figure 3. 1. 3: Mapping of project management process to the project management process groups and knowledge areas7 Figure 3. 1. 4: Areas of expertise needed by the project team8 Figure 3. 1. 5: The project stakeholders8 Figure 3. 2. 1: Three major project documents and their relationship to their components10 Figure 3. 2. 2: Complexity-uncertainty relationships in projects12 Figure 3. 2. 3: Develop PM Plan Input, Tools Techniques and Outputs13 Table 3. 3. 1: Audience of PM Plan15 Table 3. 4. : PM Plan structures and its components17 Figure 4. 1: Develop PM Plan with its input, tools and technique and output process. 19 Figure 4. 2 : WBS sample structure21 Figure 4. 3 : Network Diagram21 1. Introductions As a supplier of building automation (BAS), fire security system (FAS) the organisation tenders and bids BAS and FAS system from retrofitting market (existing building for more than ten years). Upon winning the bid, an agreement between organisation and customer is sign. These contract document and this report is prepared for two purposes. Customer the sponsor, (Gardiner, 2005, p. 115) prepares the document to establishing requirements for the project in terms of project scope, time, cost, quality, and risk. It also serves a s an â€Å"offer and acceptance† (Vermeessch Lindgren, 2005, p. 93) document between organisation and the customer. This report is prepared to critically analysis the neglected process in preparing Project Management Plan (PM Plan) during the life cycle of the project. The structure of the contract document is prepared in the form of subcontract agreement between the organisation and customer. This document covers four parts and there are, 1. The summary of the contract document summarising the major points of the contract document into a single page. 2. Part A establish general terms of conditions which are further, subdivide into definition of contract, compensation, subcontract period, payment terms and milestone, performance bond, warranty and warranty period, liabilities, risk mitigation, communication and health, safety and environmental (HSE). 3. ‘Part B’ refers to scope of works and 4. Part C’ refers to compensation. Structure of this report is prepared base on the following, Introduction of the project review the reason of preparing the document and a brief summary of the contents. Background of project provide details of the project, reason, and context of the analysis. The nature of the venture discuss why this is a project, how does this affect the management. The audience of project management plan discusses who are the recipients, wh y they need it, what is required, and what way do they need it. Structure of the project plan discusses the flow of the PM Plan and follows with conclusion and recommendation. 2. Background of project This project is award to the organisation from existing customer located at the heart of Kuala Lumpur. The customer uses the organisation product and services in three of its building located at the same location a year ago. Recently when the building owner has a need to expand the existing security access system on one of the building in level two, the owner has specifically request the organisation and the project manger to quote and design for this need. This request is done due to the organisation familiarity with the site conditions, existing design of the security access system, expendability of the existing system, platform of the technology and the reliability of the services offered during the earlier phase of the project. Customer who also familiar on project contracting has presented the contract document in a structure that the contract document covers project scope, project period, project costing, project bill of quantity, project quality, and project risk. Each elements presented does fit the definition of a project. (Kerzner, 2003, p. ) Generally the development of PM Plan (PMI, 2004, p. 70) is required at this period but due to familiarity of running a project in the same nature and capacity, the project manager has not develop PM plan. This project is executed without a formal PM Plan (PMI, 2004, p. 70) through all its life cycle (Gardiner, 2005, p. 27) and the job is executed base on experience, procedures, and proces s previously establish by the organisation. This project is being monitor and control base on the establish process in terms of collection, billing, certification of jobs done, unbilled revenue and margin of the project. . 1. Nature of venture Base on various view of project definition that explains the terms project as per appendix 2, the venture has a nature of a project due to its unique, temporary, and progressive elaboration. (PMI, 2004, p. 5-6) Summing from appendix 2, project definition can be consider as ‘a temporary undertaking that contains a series of inter-related activities that are to be completed within a specific time, a specific budget and meeting specific performance levels’ (Faisal A. 2006, p. 6). In this context, the project has the following criteria of temporary where the project period is from 14 April 2009 to 13 April 2010. It has inter related activities where the project manager will required to incorporate the five process and nine knowledge a rea at specific time, budget and performance in delivering the project as per the contract document even though there is no formal development of the PM Plan. In project management, the PMI define it ‘as application of knowledge, skill, tools, and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of the project management process of initiating, planning, executing, monitoring and controlling and closing. ’ (PMI, 2004, p. 8) Reviewed in introduction, project background, and appendix 1, project management technique is a requirement for this organisation. Today the organisation did not practise formal project management technique (PM plan s not develop, information of the project is all over the place, from sales department, technical department, finance department, procurement department and project department) and this could be due to the culture or the way the project has being run. (Further elaboration in section 3. 2) Project management technique has the legitimate use in managing project due to the following: Project nature that requires continuous monitoring, review and updating during its project life cycle as illustrated in figure 3. 1. 1. Figure 3. 1. 1: The five phases and 25 action steps of project management life cycle Adapted from: USQ, 2009, p. 1. 16, Hamilton 1997) ‘Project manager require to expand the scope of his/her vision as indicated’ (USQ, 2009, p. 10. 22) in figure 3. 1. 2. Project manager need to manage its sponsor (customer), it also need to monitor and control the progress of the project and answer to its stakeholders. Project manager need to manage the human resources of the team members, external stakeholders such as the supplier, vendors and end user (user of the system) and all activities that have relationship to the project. Figure 3. 1. : The project leaders direction finder (Adapted from: USQ, 2009, p. 10. 23, Briner et al. 1996, p. 17) Project manager involve five-process grouping of define, planning, executing, monitoring, controlling, and closing (PMI, 2004, p. 70). It a lso involve nine knowledge area of project management integration, project scope management, project time management, project cost management, project quality management, project human resource management, project communication management, project risk management and project procurement management as illustrated figure 3. . 3. ‘Project management integration has been defined by the AIPM (1996) as, the management of overall project scope in the context of schedule, budget, risk and contracts towards establishing agreed for supplier/client requirements. Integration involves the management of the other eight functions of project management, and making trade-offs among competing objectives and alternatives in order to meet or exceed project objectives throughout the project life cycle, taking into consideration the often conflicting influences of internal and external environment’. USQ, 2009, p. 10. 18) Figure 3. 1. 3: Mapping of project management process to the project ma nagement process groups and knowledge areas (Adapted from: USQ, 2009, p. 1. 3, PMI 2004, Table 3-45) Project manager need to know the project management book of knowledge, project manager also need to know the general management of business in application areas knowledge, standard and regulation, understanding of project environment, and interpersonal skill as per figures 3. 1. 4. Figure 3. 1. 4: Areas of expertise needed by the project team Source: USQ, 2009, p. 11, PMI 2004, figure 1-2, p. 13) Project manager is surrounded by stakeholders (see figure 3. 1. 5) and hence the project manager would required this technique into managing his/her project . Figure 3. 1. 5: The project stakeholders (Source: USQ, 2009, p. 1. 22, Cleland, 1999, p. 167) Hence, the use of this management technique does provide beneficial to this project and is a ‘critical success factors’ (Gardiner Stewart, 2000, p. 201) and legitimate requirement for project managers. In this project, the only documentation use is a contract document and loose-files document from other functional units established at different time of the life cycle of the project. This contract document can only represent a project charter document and basic information of preliminary project scope statement where forty-two others areas of process and knowledge is not formally covered and documented or updated and recorder at one location. 3. 2. Nature and purpose of the chosen project management plan Appendix 1 is the document available for this project and this is the way the organisation has being executing project, as discuss earlier there is no other document created such as PM Plan in this project or any other project executed by the organisation. Contract document have some criteria of the components of project charter and project scope statement but did not encompass PM Plan. Figure 3. 2. 1 illustrate areas where and what document is available under the relationship of PM Plan. Figure 3. 2. 1: Three major project documents and their relationship to their components Adapted from: PMI, 2004, p. 75) The organisation do not have PM plan, because project manager normally do not just manage project. They also perform technical roles and probably due to their lake of experience as project manager, where majority of them are promoted from engineers and have limited specific training on project management. (Thornberry, 1987, p. 60) In some circumstances, the culture difficulty has prevented the use of project management techniques effectively compare to the western culture where the root of project management is from the western. Wang Liu, 2007, p. 61) As define in PMI 2004, PM Plan is a plan and documents generated by various process and those items are the subsidiary plan and components of PM Plan. PM Plan is a major document in a project and developing this document is a ‘critical success factors’. (Gardiner et al. , 2000, p. 201) It acts as a primary source of information of how the project goes through all the five projects management process in initiating, planning, executing, monitoring, controls, and closing of project. In USQ study book define PM Plan it ‘a critical document as it brings together all of the relevant information in one place, at a point in time’. (USQ, 2009, p. 10. 24) ‘The plan often has multiple purpose including gaining sponsor signoff in many cases, it provide other key stakeholders (financiers, champions, steering committee members and project team members) with the essential information needed to fully understand the scope of the project, the risk, the schedule, the budget, etc and how it will be achieved’. (USQ, 2009, p. 10. 24) In this project, the developing of PM Plan is not available and this project runs base on loose subsidiary plan such as schedule generated for the purpose customer request, project costing for the purpose budgeting and tendering, project appraisal for the purpose of profit and margin. When it come to gaining sponsor signoff , providing stakeholders information, needs to understand the scope of project, risk, schedule, budget, it has being difficult and time consuming in accessing these information due to limited, no availability of information in one location. As for the purpose the ‘PM Plan it act as a guide for implementing the project and documents assumptions and decisions regarding communication, management processes, execution, and overall project control. The ultimate purpose of the PM Plan, is to clearly define the roles, responsibilities, procedures, and processes that will result in the project being managed such that it is completed according to the baseline objectives and goals’ (U. S. Department of Transport Federal Highway Administration, 2009) The PM Plan address all phases of the major project life cycle, and ensures that the project will be manages holistically and as a continuum, not incrementally as the project progresses. It is essential that the PM Plan establish the metrics by which the success of the project is define’. (U. S. Department of Transport Federal Highway Administration, 2009) PM Plan can vary depending on the type and complexity of a project. The type and complexity of a project is as per figure 3. 2. 2 and the discuss project alls under the categories of engineering construction. Figure 3. 2. 2: Complexity-uncertainty relationships in projects (Adapted from: PMI, 2004, p. 9, Hamilton 1997, p. 68) If an audit is call on this project, many uncertainties and questions on the project are at risk and hence this put major risk to the project in terms of its set objectives and deliverables. Currently this project is not at the readiness stage and hence with this, immediate need in develop PM Plan is required. Figure 3. 2. , below are the input, tools, techniques, and output in developing the PM Plan and develop output of PM Plan will than incorporate as inputs of project integration, scope, time, cost, quality, human resource, communication, risk and project procurement management. Once the PM Plan is develop for this project, knowledge area at every phase of the process is plan and documented and this will be the primary source of information for the project team to r efer, monitor and control against their current progress goals and objectives. Figure 3. 2. 3: Develop PM Plan Input, Tools Techniques and Outputs (Source: PMI, 2004, p. 89) 3. 3. Audience of project management plan This organisation has no formal PM Plan. Main document use is the contract document and the subsidiary documents scatted around. The Project manager and its project team will use these contract document and subsidiary document to implement the project. Here is the table 3. 3. 1 to explain who use what information if a proper PM Plan is available. Base on the theory PMI 2004, ‘PM Plan is critical document that have multiple purpose including updating and providing stakeholders with essential information needed to fully understand the scope of the project, the risk, the schedule, the budget and how it will be achieved. ’ (USQ, 2009, p. 10. 24) Other theory such as ‘PRINCE 2 (PRojects IN Controlled Environments) is the de facto standard in the UK. It was developed for and is used extensively by the UK government, and is widely used in the private sector, in the UK and internationally. PRINCE2 components and processes are consistent with the PMBOK, but PRINCE2 does not include all the knowledge areas and details specified in the PMBOK. PRINCE2 focuses on critical areas, so a project manager still needs to draw on the full depth and range of the PMBOK and other sources to complete project management work. The intention of PRINCE2 is to organize and supplement project management knowledge. It assumes that those learning and working with this methodology have a level of experience that enables them to fill in the details that PRINCE2 omits. (Siegelaub, 2004, p. 1) Refer also to appendix 3 on how PRINCE 2 can complement PMBOK, appendix 4 for comparison between PRINCE 2 and PMBOK and appendix 5 for the PRINCE 2 model and these are sources downloaded from , viewed 21 May 2009. Table 3. 3. 1: Audience of PM Plan Audiences (Who)Why this audiencesWhat do they need to knowHow will they use the planWhat info needs to be providedHow should that info be providedIn what sequence Sponsor CustomerSponsor of the projectAll the nine knowledge areasIn all of the five process groupSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 Internal Stakeholders General managersInternal sponsor of the projectAll the nine knowledge areasIn all of the five process groupAll knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 Functional managerse. g. Finance Manager need to report the project as statutory requirementKnowledge directly link to their functions. e. g. Finance – cost mgmtIn four of the process group of planning, executing, monitor control and closureSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 Project teamsTo plan, execute, monitor control and closure of projectKnowledge areas directly link to their work packagesIn selective process group related to their work packageSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 Project managerTo define, plan, execute, monitoring control and closure of projectAll the nine knowledge areasIn all of the five process groupAll knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 AdministratorsTo support the projectKnowledge areas directly link to their work packagesSelective process group related to their work packageSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 External Stakeholders Customer-usersTo use the productsScope, Cost, Time, Quality mgmtInitiating and closure process groupSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 Supplier/ContractorsTo supply and install this product according to set goals and objectives. Knowledge areas directly link to their work packagesSelective process group related to their work packageSelective knowledge and process group areas. In project mgmt planAs per PMI, 2004 project mgmt process, p70 3. 4. Structure of the project plan Structure of the document used by the project manager in this project is not near or close to a PM Plan. As discuss there is no development or formal PM Plan use by the project manager. The information uses to execute the project are from the contract document and some scatted document. Attach are the table 3. 4. to explain what is used base on the comparison of a PM Plan formats. In summary the organisation do not have an PM Plan and the way it execute it project is based on experience and scatter document during the proposal stage, develop for the purpose of budgeting. The only ‘strong’ document is a charter and scoping document establish from the contract document. Other component such as scope, time and cost has being incl uded are document made available during initiating state when performing budgetary activities. Components such as human resource, procurement, quality, and risk are tandard process document from the organisation. Table 3. 4. 1: PM Plan structures and its components PMBOKPRINCE2Chapman’sThis OrganisationWhy this component is includedIssues with the organisation information Project CharterXXXXAs a contract Using contract document as project charter Project Scope StatementXXXXAs a contract Using contract document as scope management Project Integration ManagementXXXOONo development of this document Project Scope ManagementXXXXAvailable during proposal stage for budget purposeDone during define phase. No further updates in planning, execution, monitoring control and closure. Project Cost ManagementXXXXAvailable during proposal stage for budget purposeDone during define phase. No further updates in planning, execution, monitoring control and closure. Project Time ManagementXXXXAvailable during proposal stage for budget purposeDone during define phase. No further updates in planning, execution, monitoring control and closure. Project Quality ManagementXXXXEstablish process in the organisationNo updates in defining, planning, execution, monitoring control and closure. Project Human Resource ManagementXXXXEstablish organisation structure as project running company. No updates in defining, planning, execution, monitoring control and closure. Project Communication ManagementXXXOONo development of this document Project Risk ManagementXXXXEstablish process in the organisationNo updates in defining, planning, execution, monitoring control and closure. Project Procurement ManagementXOXXEstablish process in the organisationNo updates in defining, planning, execution, monitoring control and closure. Multi-project OversightOOXOONo development of this document Legend: XPractice/Available ONot Practice/Not Available 4. Contents of the Project Plan Sections This organisation has no PM Plan and due to the critical success factors for a project, PM Plan development is required. Here we will discuss each major section of the project plan and some theoretical framework of what is included. PM Plan is a living document that ‘brings together all of the relevant information in one place, at a point of time’. (USQ, 2009, p. 10. 24) Define in PMI 2004, development of PM Plan ‘process includes action necessary to define, integrate, and coordinate all subsidiary plans into a PM Plan. This process result in a PM Plan that is updated and revised through the Integrated Change Control process. PM Plan defines how project is executed, monitored and controlled, and closed. The PM Plan documents the collection of outputs of the planning process of the Planning Process Group’. (PMI, 2004, p. 88) ‘The PM Plan can be either summary level or detailed, and can be composed of one or more subsidiary plans and other components. Each of the subsidiary plans and components is as detail to the extent required by the specific project. ’ (PMI, 2004, p. 87-9) Development of PM Plan can further be summarise per the figure 4. 1 and further discussion on each of the major component is elaborate below. Figure 4. 1: Develop PM Plan with its input, tools and technique and output process. (Adapted from: PMI, 2004, p. 77-90) 4. 1. Develop inputs of PM Plan Inputs of PM Plan consist of four majors components and they are, 4. 1. 1Preliminary Project Scope Management ‘Defines what needs to be accomplished. The develop preliminary project scope statement process addresses and documents the characteristics and boundaries of the project and its associated products and services, as well s the methods of acceptance and scope control. ’ (PMI, 2004, p. 86) ‘This will contain, among other things, a record of the project objectives and project deliverables and an outline of the costs, timing and specifications of the work to be done. ’ (Lake, 1997, p. 104) Project manager gathers this information from contract document in appendix 1 for the project stakeholders as explain in section 3. 3. 4. 1. 2Project Management Processes All nine knowledge areas of PMI 2004, PMBOK ® Guide. These areas includes the integration management and the following, 4. 1. 2. 1Project Scope Management Includes the processes required to ensure that the project includes all the work required, to complete the project successfully. Project scope management is primarily concerned with defining and controlling what is and is not included in the project. ’ (PMI, 2004, p. 103) ‘WBS is a method of breaking down a project into individual elements which can be scheduled and costed. WBS is a method of splitting a project up into small parts for which you can predict the resource requirements and which you can build into a schedule. The first step in constructing a WBS is to identify the main stages of the project. These may correspond to the phases in the project life cycle:’ (Lake, 1997, p. 72-3) ‘once the main stages of the project have been established, the second step in developing a WBS is to divide each stage into smaller elements. Some project managers insist that each element should relate specifically to a particular project deliverable. This approach has significant advantages, because it focuses attention on the agreed scope of the project and ensures that resources are not waste on anything, which lies outside it. It is also much easier to check that each stage in the project has actually finished. (Lake, 1997, p. 73-4) This can further illustrate in figure 4. 2. Figure 4. 2 : WBS sample structure (Adapted from: PMI, 2004, p. 114) 4. 1. 2. 2Project Time Management ‘Includes the process required to accomplish timely completion of the project. ’ (PMI, 2004, p. 123) ‘A network is a diagram, which shows the dependencies between the activities in a projec t. It is use to schedule these activities and plan the optimum use of resources. ’ (Lake, 1997, p. 80) Here is example of a network diagram as per figure 4. 3 Figure 4. 3 : Network Diagram (Source: Taylor, 2009) In time management, monitoring the time of completion base on jobs done is meaningless. Instead, a more reliable ways to monitor jobs completion is through the numbers percentage jobs should be done. e. g. ‘If it is going to take 20 person days and 12 person days are already gone, it means that 60% of work should be done’. (Dash, 2009) another way is the Earned Value Measurement (EVM) technique. ‘To know the status of the project, just a couple of question needs to be asked: 1. What is the SPI (Schedule Performance Index) for the project? 2. What is the CPI (Cost Performance Index) for the project? If SPI and CPI are below 1. 0, then the project is not in good health, i. e. , not performing well. Also from a schedule perspective, if the SPI is below 1. 0 (let us assume it is 0. 9), then it means the deliverable is actually 90% complete and it is behind schedule. ’ (Dash, 2009) 4. 1. 2. 3Project Cost Management Includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. ’ (PMI, 2004, p. 157) ‘Microsoft Project help describes Earned Value analysis as â€Å"a method for measuring project performance. It indicates how much of the budget should have been spent in relation to the amount of work done so far and the baseline costs for the tasks, assignments, or resources. At the root of Earned Value analysis are three key values:’ (Almeida, 2009) 4. 1. 2. 3. 1. ‘The budgeted cost of individual tasks as they are scheduled in the project plan based on the costs of resources assigned to those tasks plus any fixed costs associated with the tasks. This is the budgeted cost of work scheduled (BCWS). BCWS is the baseline cost up to the status date you choose. Budgeted cost values are stored in the baseline fields, or, if you have saved multiple baselines, in Baseline1 through Baseline10 fields. ’ (Almeida, 2009) 4. 1. 2. 3. 2. ‘The actual cost required to complete all or some portion of the tasks up to the status date. This is the actual cost of work performed (ACWP). Normally, Microsoft Project correlates actual costs with actual work. Only if you enter actual costs independent of actual work or change resource pay rates will the actual cost be out of step with the scheduled cost. ’ (Almeida, 2009) 4. 1. 2. 3. 3. The value of the work performed by the status date measured in currency. This is literally the value earned by the work performed, and is called the budgeted cost of work performed (BCWP). This value is calculated for each individual task, but is analysed at an aggregate level (typically at the project level). ’ (Almeida, 2009) ‘Earned Value analysis is always specific to a status date you choose . This may be the current date or any date before the current date. Microsoft Project gives us out-of-the-box AC, PV, EV, CV, SV, SPI, and CPI, among others. However, the key to using Earned Value is the way we interpret the values. So when EV0 and PV=0 what should be the result of SPI? For anomalous situations, SPI calculated by Microsoft Project is always 0. This will make the analysis of eventual insertion errors difficult. If PV EV 0 and PV = Task Baseline Cost (this means that the task in the initial plan should be finished but due to a delay is still progressing), what should be the result of SPI? For Microsoft Project, it is EV / PV, but in this case we have a task that is recovering and PV will stay constant with an increasing EV, so SPI is going to improve until the task is finished. This will present us with some misinterpretations since at this time it is better to have SPI with a value that enables us to identify recovering tasks. ’ (Almeida, 2009) 4. 1. 2. 4Project Quality Management ‘Pocesses include all the activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken. It implements the quality management system through the policy, procedures, and processes of quality planning, quality assurance, and quality control, with continuous process improvement activities conducted throughout, as appropriate. (PMI, 2004, p. 179) ISO10006:2003 guideline to quality management in project ( bia. ca/articles/pj-combining-iso-10006-pmbok-to-ensure-successful-projects. htm, 2009) can be applied in this project. 4. 1. 2. 5Project Human Resource Management ‘Includes the processes that organize and manage the project team. The project team is comprised of the people who have assigned roles and responsibilities for completing the project. ’ (PMI, 2004, p. 199) 4. 1. 2. 6Project Communications Management As define in PMI, 2004, p. 221. Is the knowledge area that employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The Project Communications Management processes provide the critical links among people and information that are necessary for successful communications. 4. 1. 2. 7Project Risk Management As define in PMI, 2004, p. 237. Includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project; most of these processes are updated throughout the project. The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of events adverse to the project. 4. 1. 2. 8Project Procurement Management As define in PMI, 2004, p. 269. Includes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work. Project Procurement Management includes the contract management and change control processes required to administer contracts or purchase orders issued by authorized project team members. Project Procurement Management also includes administering any contract issued by an outside organization (the buyer) that is acquiring the project from the performing organization (the seller), and administering contractual obligations placed on the project team by the contract. 4. 1. 3Enterprise Environment Factors ‘Defines any and all of the organization’s enterprise environmental factors and systems that surround and influence the project’s success must be considered. ’ (PMI, 2004, p. 83) 4. 1. 4Organizational Process Assets Defines in PMI, 2004, p. 84 All of the assets that are used to influence the project’s success can be drawn from organizational process assets. Any and all of the organizations involved in the project can have formal and informal policies, procedures, plans, and guidelines whose effects must be considered. Organizational process assets also represent the organizations’ learning and knowledge from previous projects; for example, completed schedules, risk data, and earned value data. Organizational process assets can be organized differently, depending on the type of industry, organization, and application area. 4. 2. Tools and Technique of PM Plan PM Plan consist of three major components and they are, 4. 2. 1Project Management Methodology ‘Defines a process that aids a project management team in developing and controlling changes to the preliminary project scope statement. ’ (PMI, 2004, p. 87) 4. 2. 2Project Management Information System ‘Defines an automated system, is used by the project management team to support generation of a preliminary project scope statement, facilitate feedback, as the document is refined, control changes to the project scope statement, and release the approved document. (PMI, 2004, p. 88) 4. 2. 3Expert Judgment ‘Is applied to any technical and management details to be included in the preliminary project scope statement. ’ (PMI, 2004, p. 88) 4. 3. Output of a PM Plan Ideally the output of a PM Plan are all the collected information above and base the scenario of the project the PM Plan can be presented in the ways where it ‘may be recorded in project software, or at minimum presented as a loose-leaf files of documents’ (Lake, 1997, p. 104-5) 5. Conclusions Summarise from the discussion above, development of PM Plan is critical success factors in running a project. PM Plan is a primary source of information of how the project goes through all the five projects management process in defining, planning, executing, monitoring, controls, and closing of project and all the nine areas of project management book of knowledge (PMBOK ® Guide). PM Plan is a document that tells its audience where they are and where they are heading and this document have eight knowledge areas that are important and these information required to be used as integrated document between the knowledge areas. Inputs, tools, techniques are a structure how PM Plan is develop. Inputs of PM Plan consist of four major elements, the preliminary scope statement of a project, the project management of process of PMBOK ® Guide, the environmental of the enterprise, and the organisation process assets. With these combinations of information and with the tools and techniques in methodology of controlling and defining the inputs, project management information system, and expert judgement contributes to a PM Plan. As describe by Bourne, 2009, The PMBOK ® Guide is a knowledge framework that contains processes that are generally applicable to most projects, most of the time. The consequence of this is the processes need tailoring for specific projects. The PMBOK ® Guide is developed by hundreds of project managers from around the world and the result is a coordinated amalgam of ideas. PMI has aspirations for the profession of project management. Some underlying themes found in the majority of questions such as the high level of proficiency of the performing organisation and the professional competence of the project managers may be a stretch based on the culture of your organisation but are highly desirable aims and are not unrealistic. This does not devalue the way you do your projects. As long as the projects manages are constantly delivered on time, on budget, on scope and fully satisfying all of the key stakeholders. If this happens, the approach to project management is obviously right in the context you are working in. It is just your way is different to the generally accepted way most successful projects are delivered worldwide. 6. Recommendations As an organisation, that runs project a PM Plan is a minimum requirement in all project management. PMBOK, PRINCE2 are some of the easily available book of knowledge the project manager should get familiar when planning and executing a project. PM Plan undertakes by the project manager should tailor according to the complexity of the project and other consideration concerning the project environment and organisation process assets are some of the consideration when developing a PM Plan. Hence with these considerations probably not all of the eight knowledge areas in PMI 2004, PMBOK or seven knowledge areas in PRINCE 2 knowledge will be define, plan, execute, monitor control and closed. In this context at least four of the major project management process that require immediate attention and further improvement are on scope statement and scope management plan. Where this scope statement provides a common understanding to the project stakeholders and scope planning detail how the scope will be control, manage, and define. On time management the planning of schedule alone without analysing the activities and WBS need immediate changes. Activities definition, duration estimation, activity sequencing, critical path, network planning, and milestone are required in this process. In cost management, probably this is the most comprehensive process conducted by the organisation but further enhancement on the EVM , IRR and NPV may need to be incorporated for decision making during for the whole duration of the project life cycle. Finally are on the human resource management in the context of work force planning. ‘Workforce planning is an iterative discipline. The cycle of workforce planning includes filling resource requests, analysing utilization, forecasting capacity, managing and identifying the people to fill that capacity, and then starting the cycle again. ’ (Melik, 2008