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Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
1
JANUARY SEMESTER 2009 PRINCIPLES OF PROJECT MANAGEMENT – EMPM5103
ASSIGNMENT (45%)
LECTURER
PN NORAINI BINTI HAMZAH
STUDENT ANAS BIN ALAM FAIZLI
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
2
TABLE OF CONTENTS CONTENT PAGE NO
PART A
In order to be a successful project manager it is important to have broad-based knowledge regarding the technical
aspects of the industry as well as managerial knowledge. Many organisations are utilising IT to improve the efficiency
in managing projects.
1a. Obtain a relevant journal article or book reference (attach a copy of the journal abstract or introductory page of
the book to your answer) that is related to IT-enabled project management and discuss two key issues
identified by the author of the article/book.
03 1b. Discuss the importance of information flow with respect to project coordination that can lead to faster-time-to-
market of products.
11 1c. The favoured organisation structure for managing projects is the matrix organization. Provide an organisation
chart of an existing project organisation (providing actual details of the company profile) and clarify how this
structure suits the way the company aims to optimize its use of resources.
17 PART B
In their efforts to improve the quality of service and products, your organisation is employing external consultants that
promise increased productivity through the introduction of new management ideas and techniques; and additionally by
obtaining ISO accreditation that the businesses can be more profitable. However, the many ideas and techniques
have often required the company huge investments in training and consultancy with limited returns such as increased
market share. Additionally, in terms of ISO accreditation, the initial benefits have gradually been reduced as more
competitor companies are being ISO certified. Hence, besides providing some benefits the annual accreditation
process adds to the cost of maintaining quality, and is often referred to as the “added cost of quality”.
Assuming that you are the Quality Manager of this public-listed electronics factory dealing with producing electrical
household appliances, provide a clear description of a proposal for quality initiatives in order to improve the quality of
the service (maintenance) and products of your company that you would offer your General Manager who is very
reluctant to agree to proposals that incur “additional” initial costs to your company. The arguments in the proposal
should point out the mainly existing externally-driven approach to improvement and provide some more permanent
approaches and solutions as well as the clear ability to plan for higher productivity.
It is important that the proposal should describe the issues related to two existing management ideas and techniques
by initially introducing their key fundamentals briefly, similarly with the ISO standards for products and services related
to the industry.
25
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
3
PART A
In order to be a successful project manager it is important to have broad-based
knowledge regarding the technical aspects of the industry as well as managerial
knowledge. Many organisations are utilising IT to improve the efficiency in
managing projects.
a. Obtain a relevant journal article or book reference (attach a copy of the
journal abstract or introductory page of the book to your answer) that is
related to IT-enabled project management and discuss two key issues
identified by the author of the article/book.
[20 marks]
CONSTRUCTION MANAGEMENT AND ECONOMICS Journal Title: An Integrated construction project cost information system using
MS Access and MS Project
Publication Date: 01 February 2004
Author: A. A. D. A. J. Perera, K. Imriyas
Department of Civil Engineering, University of Moratuwa, Sri Lanka
Abstract: <Begin> The integration of time and cost management of construction projects has been
recognized as the most effective way for close management. However, it has not
been effectively used due to the presence of a large quantity of data with many
complex interrelationships. Advanced software using current state-of-the art
could be developed to solve this problem. Nevertheless, construction
organizations, especially those of small to medium size, cannot afford to procure
such software due to the high cost involved in development and training.
Probably, the maximum capability of small to medium size contractors is to
purchase general applications – spreadsheet, database, etc. – and general time
planning software. Thus, a computer solution for an existing problem using
general software will have a higher potential for application. In this context,
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
4
Research was undertaken to establish the feasibility of the use of MS Access
and MS Project to provide an integrated time and cost management information
system encompassing estimating, scheduling, cost control, resource monitoring
and costing, and financial control. First, through a literature review, documentary
search in contractor organizations and interviews of professionals, the
requirements of such a system were identified. Second, detail procedures were
established by use of standard system design procedures. Third, a data
modelling was developed and a relational database was established with data
transfer mechanism between database and time planning software. The research
proved that an effective integrated project cost management system could be
developed using MS Project and MS Access as an economical solution
for small to medium construction organizations.
Keywords: Integrated cost management, DBMS, time planning software,
management information system
Abstract: <End>
ANSWER The journal touches how project management can be IT enabled using cheaper
database and scheduling software offered by Microsoft instead of going for full
fledged project management software. Despite the cheaper cost and faster
learning time it still offers the same result compared to its superior project
management softwares.
Project management is the discipline of planning, organizing and resource
management in ensuring project completion within time limit, quality and safety.
This involves managing resources from the start of the project until project
completion dates. Managing projects is defined into four major categories,
planning, organizing, controlling and influencing.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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Planning is the process of outlining what is needed to be done, its duration,
when to start and end. This involves short term and long term. Planning
involves detailing the steps required to achieve the objectives. There are also a
good set of tools and proven theories to assist in better planning. MS Project and
Primavera despite the different ability is oftenly used to achieve this.
Organizing is the process of assigning the activities to its resources and is a
mechanism to put the plan to act. Everybody will be assigned to a task and is
required to ensure that it is executed and will contribute to the organizational
goals. Good organizing skills will come with better understanding of
responsibility, authority and delegation roles.
Influencing is another project management functions. This involves motivating,
leading and directing. This is critical as a better influencer will get a higher
productivity level.
Controlling is the continuing process of control and monitoring of the activities
that has commenced. Control is the activity of managing or exerting control over
something. According to Roberto Mockler, controlling is a systematic effort by
managers to compare performance to standards or plan and determine the
variation and take remedial action required to ensure it will achieve
organizational objectives. The four basic management functions are all inter-
related and cannot be separated.
A successful project needs to ensure that these four basic functions of
management are executed. This will ensure the success of the project.
However, IT software has given new fresh breath for project management.
Many of project management function are now captured and are enabled using
software and IT tools. We have STAADPro, BOCAD, AutoCAD for the
engineers. These softwares have assisted the engineering departments. MS
Office Suite (MS Access, MS Excel, MS Word, MS Powerpoint and MS Project)
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
6
also strongly assisted the costing, planning, quality, and the administrative
departments. There are also famous integrated powerful project management
software like Artemis, Primavera, AceProject, Copper, Crest, Deltek, Codel,
Cerebrum and many others.
As project grows from small construction work building a small toilet or
renovation works to 20 storey building and further into building RM 5 billion
offshore platforms, the need for better and more sophisticated project management software arises. Good project management software that can
capture the four management function currently in the market is as listed above.
However, theses softwares are expensive and are difficult to learn. Users will
need to go for proper training and spend expensive resources before mastering
the software. Due to this, many small to medium companies goes for simple
database and spreadsheet software which is fully optimized to get the same
result as using full fledged project management software.
The journal touches on a spesific aspect of the project management which is
project cost information system. Software that can manage and process all the
data and provide information will definitely assist in great deal for the project
costing management. This is not only required for the cost control department,
but every department will be able to contribute more data and rates and also
have access to the project costing at the fingertip. A good project cost
information system needs to be able to computerized and assist in managing
from the initial inputs until the final inputs. The sections involved in the system is
estimating, cost budgeting and control, material management, man-hour
management, plant management and interim billing. This will greatly boost
productivity and faster work flow in the organization. User will need to prepare
the initial input such as priced bill of quantity (BOQ) and the schedule of prices
which will be integrated as the estimate and cost budget. The other information
will become as intermediate data which can be separately extracted as required.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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Figure 1-1 Initial Input for BOQ Cost Budget and Project Cost Information System
Stages
User then need to do process modelling which is required to model the
processes for the cost control budget system. This model will dictate the data
flow both from external data and internal data input for the system which
includes schedule of rates, labour sub contractors cost, schedule, labour
attendance sheets, material suppliers order and all cost related data. Refer
Figure 1-1 which explains how the external and internal data flows to produce
one integrated cost system which covers all aspect of project cost exposures.
The second diagram on the right explains the six sections of the project cost
information system.
Data modelling again follow the project cost information system stages from
estimating to interim billing which is broken into Estimating, Cost budgeting and
control, Material costing, Man-hours costing, Plant costing and Interim Billing. All
this sections will be incorporated seamlessly into the project cost information
system. From here, MS Access and MS Project interfacing will further be
explained to produce a powerful project cost information system.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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Figure 1-2 Work Flow Diagram showing MS Access and MS Project interface
MS Access is a software database tools while MS Project is a software
planning tools which is both developed from Microsoft. MS Access is a powerful
database and can be used to store data, perform data query, keeping files,
sorting data, calculations and many other function. It is equivalent to the likes of
Oracle system, SQL and other big database name. MS Project has the ability to
store activities, predecessor successor links, fragments, draw bar charts, gantt
charts, PERTs, cash flow analysis, resource allocation and many others.
However MS Project is not fully fledged project management software and could
not perform powerful function and is limited to basic scheduling.
The journal further explained its research in developing a project cost information system using general and advanced features which is available in
MS Project and MS Access and exploiting MS Access database power linking it to MS Project and developing the project cost information software which will
assist cost management of the project. The interface points as explained in
Figure 1-2 is self explainatory as MS Access and MS Project integration will allow
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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scheduling, cash flow, resource forecast (manpower and machine), indirect and
direct labor requirement. The project cost information system will then digest the
basic data and information to initiate cost tracking and control in the MS
Project. The system has six functional areas as illustrated in Figure 1-2. The
first step is the estimating process. Then from the BOQ, the data will be fed into
the system which will produce the cost budget. Schedule data will be input into
MS Access with cost. After all is completed, the data will be transferred to MS
Project where bar charts and cash forecast flows will be produced and even S-
curves. The project cost information system is powerful that it can separately
monitor resourcing for each materials, plant and labour as per the process
model.
The advantage of using the system is that it is an open and independent system where every project can use the concept over and over again. There is
also a room for modification as everything is not fixed and the system is built
from scratch. By using MS Access to manipulate the MS Project data user will
have a far etched more powerful system than most current project
management software in the market. It is also cheaper and is cost-effective for
the organization yet allows for modification and flexibility. A good project
management software could cost as high as RM 15,000 per license and
compared to MS Access and MS Project which comes at a minimal RM1,000 the
price different is big. Furthermore the software has to be purchased for all key personnel and special training for software familiarization. MS Office softwares
are the easiest as most employees are already familiar with the software.
This has also resulted in big companies like ExxonMobil, Talisman, Sime Darby
Engineering, MMHE, Petronas Carigali, Sunway Construction only have minimal project management software. Primavera is oftenly used but only in the
planning department and the licenses are kept at a minimal while everything else
is using MS Office softwares such as MS Excel, Ms Access and MS Project.
Sime Darby uses Primavera but the data would then be exported into MS Excel
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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and manipulated for manpower resources, bar chart, progress monitoring and
also the s-curves. The progress monitoring then will be distributed to each
individual department for data entry. Upon receiving the data the planner would
then import it back to Primavera for scheduling activities. This is the same case
in other major fabrication yards in Malaysia. Sunway Construction uses MS Project for scheduling planning activities and MS Excel for other data entry
within the construction department. Talisman, ExxonMobil and CarigaliHESS is
using MS Project for the planning department too and for the costing department
they are using MS Excel. Petronas Carigali uses Crest for the project costing
estimates. During project development plan, the project controller will key in
the project general details and run the software. Crest will generate the project
rough estimate for each discipline and its major phases of the project. From
there the project controller will take all the figures and key into MS Excel and
monitor all Value of Work Done (VOWD) and prepare budget using MS Excel.
Simply said, it is proven that the construction and oil & gas industry in Malaysia
prefer to go for simple spreadsheet and database to manage project details
such as cost, planning, manpower and also administrative works. Major
fabricators and constructions companies that are involved in big construction
usually will have few Primavera licenses to manage its activities as the number of
activities usually is more than 2,000 activities. Clients like Talisman, ExxonMobil
and Shell only opts for MS Project as they are only monitoring from the surface.
However, every department is well conversant with MS Offices softwares.
Without the additional training and cost, good project management software
could be developed and implemented to assist day to day activities of the
projects.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
11
b. Discuss the importance of information flow with respect to project
coordination that can lead to faster-time-to-market of products.
Figure 2-1 Information Flow in the Supply Chain of the Consumer Goods Industry Figure 1 Figure 2-2 Information Flow in the Supply Chain showing project coordination that leads to faster time to market of products
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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ANSWER William Pollard concluded that “Information is a source of learning but unless it
is organized, processed, and is made available to the right people in a format for
decision making, it is a burden, not a benefit. Pollard has succesfully
emphasized the importance of information flow with respect to project
coordination simply in one sentence. Without a proper organized information
flow that flows to the right people, the benefit of the information will fail to be
materialized or optimized but if the information is organized correctly it can lead
benefits to what it is intended to be, and in this case for a faster time market of
the products via a good project coordination.
According to the Oxford English Dictionary, the first known historical meaning of
the word information in English was the act of informing, or giving form or
shape to the mind, as in education, instruction or training while flow is a form of
movement.
Therefore, information flow is interpreted as how information or data is
transmitted from one source or more to one destination or more. Further along
the argument it will be proven that information flow is vital and key to the
success of project coordination in getting the best result and finally a faster time
to market of products.
Figure 2-1 depicts how information is flown from the supplier to the
manufacturer, retailer and the customer. The information that is transmitted
includes the orders, inventory, demand, sales data, and the customer’s need
and requirements. The diagram also showed the financial flows which include
the transfer of funds, cash or credit between the customer, retailer, manufaturer
and supplier which is facilitated by financial institution. The products and services information flow is showing how the logistic service provider is
ensuring that the products are transported safely from one point to another point
along the diagram.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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The diagram is a supply chain where the consumer goods industry involves
every party directly or indirectly in receiving and fullfiling a customer’s request.
It is a dynamic diagram which executes a constant flow of products, information
and finance between the different stages. The chain’s focal point in the
diagram is the retailer which is in charge of getting the products that the
customer wanted and getting the financial compensation for the products and
services given. The customer will visit the retailer either physically or online
and will place order or enquiry. If the product is available, which the retailer is
responsible to ensure stock up is maintained, a sale transaction will occur
where payment will either be direct or through a financial institution. A financial
institution will facilitate if the payment is made via cheque, credit or debit card.
The retailer will engage the logistic service provider to ensure delivery is made
safely to the customer. Having said this, the logistic & finance interacts
critically to service all parties involved. This helps to minimize redundant
resources where all the parties is sharing and tapping the same wealth of
resources.
The retailer is to ensure that there is an efficient stock up or replenishment
which ensures continuous flow of products which is based on the customer’s need and requirements. By having this, retailer is capable to ensure that a
quick response is achievable. The fundamental idea is to ensure that overall inventory at all stages of the supply chain is reduced which cut wastages and
lead to a faster time of product delivery and availability. This is achieved if the
number of overstocks and out of stocks is decreased. The information from the
customer is critical for the retailer to understand the trend and forecast to the
best of its ability and ensure that the products and goods are always available.
Drucker correctly states that the purpose of a business is to create and keep
customers. Heather Williams also emphasizes this point when he pointed that
“Revolve your world around the customer and more customers will revolve
around you.” In order to achieve this, it is important that customer’s need and
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
14
requirement is captured thoroughly and analyzed based on the information that
is received via the information flow.
Logistic Service Provider plays an important role in supporting this. The more
efficient the logistic services are the faster it will assist and support in reducing
the lead time in marketing the product. They need to service and ensure that a
continuous product flows in the supply chain. Project coordination with the
support of information flow is vital to ensure that replenishment of products is
achieved where demand and supply is equalized. Project coordination will
increase sales forecast accuracy by having information from the customer side
and also the supplier and manufacturer planning side using all available data
from all parties. Based on this, better coordination is achieved and product
availability is optimized and a faster time to market of products is guaranteed.
Retailers will be able to anticipate customer demand and ensure that a product
is always available all the time based on the analyzed report from the marketing
department. Additionally, as information on customer behaviour is available
simultaneously to all participants, reaction to sudden, unanticipated, changes
in demand is possible (Kracklauer et al. 2004, p. 59)
It is self explanatory that the diagram has demonstrated that information
availability and the right movement of information is extremely important at all
stages of the supply chain. For example customers need to provide feedback
on the products. Retailers in exchange need sales forecast, product
specification, continuous customer’s loyalty and good supports from the
suppliers and manufacturers. Retailers also play pivotal role for the chain as
they interact directly to the customer which will represents the demand side of
the equation which the information will be flown to the supplier and
manufacturer that represent the supply side of the equation. Supplementing
both supply and demand and ensure that the equation is always balanced it will
enhance and increase the product availability in the market. The more efficient
this is complimented the faster the product will be in market. The diagram has
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
15
successfully demonstrated how importance the information flows between the
different departments of the retailers such as logistic, finance and also marketing (which does the sales research). Without the information flow and
project coordination products offered could suffer serious impotent in terms of
availability and thus reduced its lead time for marketing.
Figure 2-2 further elaborates the argument where the importance of
transportation and logistics and also project coordination with regards to the
information flow to ensure that the market is delivered in time. It explains how
the information with regards to financial and instructions are transmitted via the
offices and also between the retailers, manufacturers and the suppliers. Instruction controls are issued by the head office to the regional office which
would then transmit the controls instructions to the retail outlets. This involves
two way communication where the retail outlets will provide data capture and
customer information to the regional office where a further data collection will be
done and then submitted to the head office where a sales study and forecast will
be conducted. A precise research is inherently conducted by the marketing
department which will be provided access to constant new information received
and ensure that products are readily available and on the shelf.
The retail outlets keep constant communication and reporting line to the head
office where the marketing, financial and the management personnel resides.
All orders and payments instruction are issued by the head office to the
suppliers. The suppliers would then issue the orders to the warehouse which
have the warehouse distribution, operations, administrative and transportation
departments. Invoices will be sending back to the head office for payment
requests and the head office will interact with the suppliers. Invoices plays
major role in documenting a transaction which will be complimented by a
receipt.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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Having suffices these requirements; the orders will proceed to the warehouse.
However long term agreement can be made through credit line where payment
is usually done after 30 to 90 days when product is delivered. Bank guarantees from the financial institution is usually required by the warehouse
and the suppliers in order for this to materialize. The warehouse would then
deliver the products to the retail outles with the delivery order or notes.
Efficient information processing is of central importance in a supply chain
management.
Looking at both diagrams, it is proven that information flow is imminent importance in ensuring that a project coordination can be achieved thus
proving a faster lead time to market of products and ensure products availability.
By knowing what the customer needs through proper coordination of information
management will helps to eliminate longer time of marketing a product.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
17
1c. The favoured organisation structure for managing projects is the matrix
organization. Provide an organisation chart of an existing project organisation (providing
actual details of the company profile) and clarify how this structure suits the way the
company aims to optimize its use of resources.
[20 marks]
Company Profile – Sime Darby Engineering Sdn Bhd
Sime Darby Engineering Sdn. Bhd (SDE), formerly known as Sime SembCorp
Engineering Sdn. Bhd. (SSE), is a subsidiary of Sime Darby Berhad, Malaysia's
leading multinational and one of the largest conglomerates in South east Asia.
SDE was incorporated on April 27, 1981 under the name of Sime Darby Services
Sdn. Bhd. In September 3rd 1983, the name was changed to Sime Sembawang
Sdn. Bhd. and subsequently changed to Sime SembCorp Engineering Sdn. Bhd.
on February 27th 1999. Sime SembCorp Engineering Sdn. Bhd. was then a joint
venture between Sime Darby Berhad and SembCorp Utilities Pte. Ltd of
Singapore.
Since January 2005, SDE is fully owned by Sime Darby Berhad and known as
Sime Darby Engineering Sdn. Bhd. (SDE). Its headquarters is in Pasir Gudang
and its second yard is in Teluk Ramunia Yard.
Fabrication of platforms and topsides are done in Pasir Gudang while the jackets
are fabricated in Teluk Ramunia.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
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Figure 3-1 Overall Organisation Chart for the organisation’s operation in Teluk Ramunia
DATE : 17 FEB 2004DATE : 17 FEB 2004TITLE : ORGANISATION CHART FOR SSE TRTITLE : ORGANISATION CHART FOR SSE TR
PREPARED BY:PREPARED BY:
APPROVED BY:APPROVED BY:
NORMAN BUANGNORMAN BUANG
REVISION : 9REVISION : 9SIME SEMBCORP ENGINEERING SDN. BHDSIME SEMBCORP ENGINEERING SDN. BHD..
GENERAL MANAGERGENERAL MANAGER
AHMAD FAIZA ABD RASHIDAHMAD FAIZA ABD RASHID
SIME SEMBCORP ENGINEERING SDN BHDSIME SEMBCORP ENGINEERING SDN BHDTELUK RAMUNIA YARDTELUK RAMUNIA YARD
OPERATIONS MANAGEROPERATIONS MANAGER
NORMAN BUANGNORMAN BUANG
PLANNING HEADPLANNING HEAD
KAMAL KAIRANIKAMAL KAIRANI
FACILITIES HEADFACILITIES HEAD
ARVINTHANARVINTHAN
RIGGING SUPV.RIGGING SUPV.CHE HUSIN NGAHCHE HUSIN NGAHKHAIROL ANUARKHAIROL ANUAR
MAT ZANMAT ZAN
SCAFFOLDING SUPV.SCAFFOLDING SUPV.
YAZID MOHAMADYAZID MOHAMAD
ELECTRICAL SUPV.ELECTRICAL SUPV.NORDIN YUSAKNORDIN YUSAK
LEE KEE ONLEE KEE ON
MECHANICAL SUPV.MECHANICAL SUPV.
ZAINAL ABIDINZAINAL ABIDIN
PLANNING TECHPLANNING TECH
AHMAD KARNALISAHMAD KARNALISMOHD GHAZALI MOHD GHAZALI MOHD ANUARMOHD ANUAR
IT TECHIT TECHMUHAMAD AIZAMMUHAMAD AIZAM
TBATBA
QA/QC HEADQA/QC HEAD
M ALI IBRAHIMM ALI IBRAHIM
QA/DOC. EXECQA/DOC. EXEC
HARLINA OTHMANHARLINA OTHMANTBATBA
SECURITY OFFICERSECURITY OFFICER
AHMAD MOHD NOORAHMAD MOHD NOOR
ACCOUNT SUPV.ACCOUNT SUPV.
WOO YOCK THAIWOO YOCK THAI
HRHR
ROZELINAROZELINA
ENGINEERING HEADENGINEERING HEAD
SHAMSHUL BAKHRISHAMSHUL BAKHRI
STRUCT. ENGINEERSTRUCT. ENGINEER
JESUSITO **JESUSITO **BRANDO GIL **BRANDO GIL **
SHAHRIZALSHAHRIZALFANNORZIANAFANNORZIANA
DESIGNERDESIGNERNOR RASHID SURADYNOR RASHID SURADY
MOHD PADILMOHD PADIL
SECRETARYSECRETARY
ROHIZAH MAJIDROHIZAH MAJID
PLANNING ENGINEERPLANNING ENGINEER
ADE WAHYU **IADE WAHYU **I
AHMAD FAIZA ABD RASHIDAHMAD FAIZA ABD RASHID
HSE HEADHSE HEAD
RAZALI MAJIDRAZALI MAJID
SAFETY ENGINEERSAFETY ENGINEER
TBATBA
SAFETY PROMOTERSAFETY PROMOTER
MD NAZAR AZIZMD NAZAR AZIZABD JAMILABD JAMIL
TBATBA
PROC. EXECPROC. EXECMD NOR HADI MD NOR HADI LENA SAMATLENA SAMATAHMAD YAZIDAHMAD YAZID
CONTRACTS ENGINEERCONTRACTS ENGINEER
HADIBAH MD SHARIFHADIBAH MD SHARIFNATRAH MUSTAFFANATRAH MUSTAFFA
PROCUREMENT/PROCUREMENT/CONTRACT HEADCONTRACT HEAD
SURINAH BASRISURINAH BASRI
FINANCE/ADMIN/FINANCE/ADMIN/HEADHEAD
VENKIDASIRUMVENKIDASIRUM
PROJECT MANAGERPROJECT MANAGERGUNTONG/IRONGGUNTONG/IRONG
NORRASHID AMATNORRASHID AMAT
PROJECT MANAGERPROJECT MANAGERAMENAMAMENAM
NORMAN BUANGNORMAN BUANG
PROJECT MANAGERPROJECT MANAGERBONGKOTBONGKOT
ZULKIFLI IBRAHIMZULKIFLI IBRAHIM
PROJECT ENGINEERPROJECT ENGINEER
ANAS ALAM FAIZLIANAS ALAM FAIZLI
PROJECT SUPTPROJECT SUPT
KAMARUL ARIFFINKAMARUL ARIFFIN
STR SUPV.STR SUPV.
NORANINORANI
PAINTING SUPVPAINTING SUPV
MAHSURI SOLBIMAHSURI SOLBI
ASST. PROJ MANAGERASST. PROJ MANAGER
ANUAR HANAFIAHANUAR HANAFIAH
PROJECT SUPTPROJECT SUPT
LIM KOK SIEONGLIM KOK SIEONG
STR SUPV.STR SUPV.
ANUAR TAHIRANUAR TAHIR
PAINTING SUPVPAINTING SUPV
MAHSURI SOLBIMAHSURI SOLBI
QC SUPVQC SUPV
OTHMAN MOHAMADOTHMAN MOHAMADHAZLI PATAHHAZLI PATAH
TBATBA
WELDING ENGRWELDING ENGR
AMAT RASIDIAMAT RASIDITBATBA
PROJECT ENGINEERPROJECT ENGINEER
FAIRUL SHAMFAIRUL SHAM
PROJECT SUPTPROJECT SUPT
LATIF AHMADLATIF AHMAD
STR SUPV.STR SUPV.
KAMSANIKAMSANI
PAINTING SUPVPAINTING SUPV
MAHSURI SOLBIMAHSURI SOLBI
Note:** 3rd Party Staff
QA/QC ENGRQA/QC ENGR
TBATBAMGMT TRAINEEMGMT TRAINEE
TBATBATBATBA
MATERIAL SUPVMATERIAL SUPVHUSAINEHUSAINE
TBATBA
MATERIAL SUPVMATERIAL SUPV
HUSAINEHUSAINE
MATERIAL SUPVMATERIAL SUPV
MD NORMD NOR
STORE KEEPERSTORE KEEPER
ABD HAMID MANIJOABD HAMID MANIJO
PROJECT ENGPROJECT ENG
AZAN ZAINUDDINAZAN ZAINUDDIN
PAINTING TECHPAINTING TECH
TBATBA
PAINTING TECHPAINTING TECH
SAMSUDINSAMSUDIN
SAFETY COORDSAFETY COORDADNAN MOHAMADADNAN MOHAMADMANSOR WAHABMANSOR WAHAB
DOC TECHNICIANDOC TECHNICIAN
TBATBA
DCDC
RAHMAT ITHNAINRAHMAT ITHNAINHAIROL ANUARHAIROL ANUAR
PROJECTS
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
19
Figure 3-2 Overall Organisation Chart for the organisation’s Amenam project in Teluk Ramunia
CCHHAARRTT NNOO:: 11 DDAATTEE :: 1100 JJUULLYY 22000044
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Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
20
Figure 3-3 Matrix Organizational Chart of the Amenam Project in Teluk Ramunia
DATE : 17 FEB 2004DATE : 17 FEB 2004TITLE : ORGANISATION CHART FOR SSE TRTITLE : ORGANISATION CHART FOR SSE TR
PREPARED BY:PREPARED BY:
APPROVED BY:APPROVED BY:
NORMAN BUANGNORMAN BUANG
REVISION : 9REVISION : 9SIM E SEM BCORP ENGINEERING SDN. BHDSIM E SEM BCORP ENGINEERING SDN. BHD..
GENERAL MANAGERGENERAL MANAGER
AHMAD FAIZA ABD RASHIDAHMAD FAIZA ABD RASHID
SIME SEMBCORP ENGINEERING SDN BHDSIME SEMBCORP ENGINEERING SDN BHDTELUK RAMUNIA YARDTELUK RAMUNIA YARD
OPERATIONS MANAGEROPERATIONS MANAGER
NORMAN BUANGNORMAN BUANG
PLANNING HEADPLANNING HEAD
KAMAL KAIRANIKAMAL KAIRANI
FACILITIES HEADFACILITIES HEAD
ARVINTHANARVINTHAN
RIGGING SUPV.RIGGING SUPV.
CHE HUSIN NGAHCHE HUSIN NGAH(AMENA M)(AMENA M)
KHAIROL ANUARKHAIROL ANUAR(GUN TON G)(GUN TON G)
MA T ZANMA T ZAN(BONGKOT)(BONGKOT)
SCAFFOLDING SUPV.SCAFFOLDING SUPV.YAZID MOHA MADYAZID MOHA MAD
(POOL)(POOL)
ELECTRICAL SUPV.ELECTRICAL SUPV.
NORDIN YUSAKNORDIN YUSAKLEE KEE ONLEE KEE ON
(POOL)(POOL)
MECHANICAL SUPV.MECHANICAL SUPV.ZAINAL ABIDINZAINAL ABIDIN
(POOL)(POOL)
PLANNING TECHPLANNING TECHAHMAD KARNALISAHMAD KARNALIS
(GUNTONG)(GUNTONG)MOHD GHAZALI MOHD GHAZALI
(AMENAM)(AMENAM)MOHD ANUARMOHD ANUAR
(BONGKOT)(BONGKOT)
QA/QC HEADQA/QC HEAD
M ALI IBRAHIMM ALI IBRAHIM
QA/DOC. EXECQA/DOC. EXEC
HARLINA OTHMANHARLINA OTHMAN
ENGINEERING HEADENGINEERING HEAD
SHAMSHUL BAKHRISHAMSHUL BAKHRI
STRUCT. ENGINEERSTRUCT. ENGINEERJESUSITO JESUSITO
(GUN TON G)(GUN TON G)BRANDO GILBRANDO GIL
(AMENA M)(AMENA M)SHAHRIZALSHAHRIZAL
FANNORZIANAFANNORZIANA(BONGKOT)(BONGKOT)
DESIGNERDESIGNER
NOR RASHID SURADYNOR RASHID SURADY(BONGKOT/ GUNTONG)(BONGKOT/ GUNTONG)
MOHD PADILMOHD PADIL(AMENA M)(AMENA M)
SECRETARYSECRETARY
ROHIZAH MAJIDROHIZAH MAJID
PLANNING ENGINEERPLANNING ENGINEERADE WAHYUADE WAHYU
(POOL)(POOL)
AHMAD FAIZA ABD RASHIDAHMAD FAIZA ABD RASHID
HSE HEADHSE HEAD
RAZALI MAJIDRAZALI MAJID
SAFETY PROMOTERSAFETY PROMOTER
MD NAZAR AZIZMD NAZAR AZIZABD JAMILABD JAMIL
(POOL)(POOL)
PROC. EXECPROC. EXEC
MD NOR HADIMD NOR HADI(GUN TON G) (GUN TON G)
LENA SAMATLENA SAMAT(AMENA M)(AMENAM)
AHMAD YAZIDAHMAD YAZID(BONGKOT)(BONGKOT)
CONTRACTS ENGINEERCONTRACTS ENGINEER
HADIBAH MD SHARIFHADIBAH MD SHARIF(GUN TON G)(GUN TON G)
NATRAH MUS TAFFANATRAH MUS TAFFA(AMENA M)(AMENAM)
AZANAZAN(BONGKOT)(BONGKOT)
PROCUREMENT/PROCUREMENT/CONTRACT HEADCONTRACT HEADSURINAH BASRISURINAH BASRI
PROJECT MANAGERPROJECT MANAGERGUN TONG/IRONGGUN TONG/IRONG
NORRASHID AMA TNORRASHID AMA T
PROJECT MANAGERPROJECT MANA GERAMENAMAMENAM
NORMAN BUANGNORMAN BUANG
PROJECT MANA GERPROJECT MANA GERBONGKOTBONGKOT
ZULKIFLI IBRAHIMZULKIFLI IBRAHIM
QC SUPVQC SUPV
OTHMAN MOHA MADOTHMAN MOHA MAD(AMENAM)(AMENAM)
HAZLI PATAHHAZLI PATAH(GUNTONG)(GUNTONG)SHAMSOLSHAMSOL
(BONGKOT)(BONGKOT)
WELDING ENGRWELDING ENGR
AMAT RASIDIAMA T RASIDI(POOL)(POOL)
SAFETY COORDSAFETY COORDADNAN MOHAMADADNAN MOHAMAD
GUNTONG)GUNTONG)MANSOR WAHABMANSOR WAHAB
(AMENAM)(AMENAM)JAMIL JAMIL
(BONGKOT)(BONGKOT)
DCDC
RAHMAT I THNAINRAHMAT I THNAINHAIROL ANUARHAIROL ANUAR
(POOL)(POOL)
PROJEC TS
FUNCTIONALRESPONSIBILITY
PROJECTRESPONSIBILITY
FUNCTIONALRESPONSIBILITY
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
21
ANSWER According to Harold Kerzner (2006), The matrix organizational form is a
combination of the advantages from a pure functional structure and the
product organizational structure. Project Managers report directly to the
General Manager and so does the department heads or the functional manager
as shown in Figure 3-1. Project manager is accountable for project success
while functional manager is to ensure technical excellence on the project. The
basis for the matrix approach is to create a synergy through shared
responsibility between project manager and functional manager as shown in
Figure 3-3. Employees in the interfacing position have two bosses, the project
manager and the functional manager.
Sime Darby Engineering Sdn Bhd (SDE) previously known as Sime Sembcorp
Engineering Sdn Bhd adapted the matrix organization chart as this proved to be
the most effective method in optimizing its resources. Figure 1-1 outlines the
overall organisation of SDE Teluk Ramunia Yard (SDE TR) while Figure 1-2
outlines one of the projects that are being implemented in SDE TR, namely
Amenam Project. As the discussion progresses, explanation on how SDE TR
optimize its resources will be detailed out.
The project manager is given maximum control over resources and is
responsible for all cost and personnel. This is done through the line manager.
Upon to the execution of the Amenam Project, the General Manager appointed
En Norman Buang as its Project Manager. The Project Manager then has a
meeting with all the functional managers to seek resources and support for the
project. Each functional manager will nominate its resources and negotiation
will commence until both side agrees to the nominated personnel. This is a
sharing of key personnel among the projects and the cost will be minimized.
The personnel will be exposed to variety of different problems in different areas
which will provide better personnel control. In some organizations line
departments are called as service departments and the project team as the
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
22
client. This is true that the functional manager always emphasize on its team
member to provide the project team the best services possible. Sime Darby TR
bread and butter is from the project sales. The higher the project sales, the
higher the profit is for the company. If the line department do not provide
excellent service to the project team, the performance and result of the project
will be hampered. Thus, a strong matrix organizational chart where the line
departments play its part as the servicing department is critical to the success
of the project implementation and the company as a whole.
Technical excellence can also be cultivated faster and rapid development of
specialist and generalist can occur. Generalist are usually born from the project
management team where they have to deal with various problems from various
discipline while specialist is developed from each functional department having
exposed to different problems from different projects. If the Project Manager is to
be stand alone he will have difficulty when encountering issues from Engineering
/ QA/QC / Contract / Facilities that he is not familiar with. In this case, he can
always refer back to the functional manager for the technical solutions and there
is always a departmental line that is a separate entity which improved on its
technical knowledge and know-how where as the Project Manager is only
concerned to complete the project. By having this, the development of specialist
and generalist is accelerated. Each personnel curriculum vitae will be submitted
to the client during bidding stage. If the personnel is lacking in project exposure
and technical knowledge the client will not accept the personnel that is
proposed. In a project environment where high skill manpower is limited,
technical cultivation from the line department and project exposure is crucial to
ensure continous development of personnel in the project and the technical
departments. Project experience and new learn knowledge will be accumulated
by the engineers and upon returning to their home department they will be able
to share it with their peers and generate faster technical improvement for the
whole organization.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
23
Cost separation is separated through timesheet using cost codes. Every
personnel that are fully dedicated to the project will have their timesheets signed
by the respective project manager. There are cases that the personnel involved
in more than one project and he will need to get both project manager’s
signature. If he is not involved in any project his charges will be to the overhead
and the functional manager will sign his timesheet. This makes things easier for
the cost control department and the project manager have more control.
Charging to overhead will not look good for the departmental manager as the
management sees this as having excess manpower unless there is justifiable
non-project related works ongoing. Having this ensures that the project manager
and the functional managers to be in cooperative terms as much as possible in
maintaining both interests. The project manager will usually request for the best
personnel in the department and the department manager need to reflect if the
project’s requirement does require that level of expertise. Cost separation is
important as the management of the organization will need to see which project
that are using resources more than required and vice versa.
Figure 3-3 shows that at least eleven personnel are under pool resource. A
pool of resource means personnel that are shared by various different projects.
Usually, position that does not require special project expertise or the requirement is small will be under pool such as draughting, welding
engineering, scaffolding, electrical and also mechanical supervision. One person
or more will be openly working for all projects as per the requirement. The
functional department will supervise and ensure all project requirements are
satisfied. This will minimize cost like for an example rather than having 4
welding engineers and 20 draughtsmen serving four projects it will be more cost
effective to have only 1 or 2 welding engineers and 10 draughtsmen pooled to
serve 4 projects. However there are also positions which require dedicated personnel for each project such as structural, planning and contract engineer.
This is because this position requires full commitment as the workload is high
and is very project specific. There are also instances where the engineers could
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
24
take cares more than one project. If this separation of department is not done,
instead of having one engineer, the organization will need to hire two engineers
for the same amount of job.
Equipment and machines are also pooled. For example, if every project team
have their own engineering department, they will need to have their own
engineering softwares, high end printers, digital imaging softwares and technical libraries. This will be very costly to the company and the execution will not be
optimized. Data and knowledge sharing will also not be achieved. However by
having a dedicated engineering department that services the project team, a
pool of resources can be distributed accordingly in lieu with the workload
requirement of each project determined and assigned by the engineering
manager. The engineering manager will ensure that the resources assigned are
enough to cater for projects requirement.
Being a project driven company that aims for technical excellence, targets
completing project in time within budgeted cost and safety, the matrix
organizational chart is the best choice for Sime Darby TR in optimizing its resources.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
25
PART B In their efforts to improve the quality of service and products, your organisation is
employing external consultants that promise increased productivity through the
introduction of new management ideas and techniques; and additionally by
obtaining ISO accreditation that the businesses can be more profitable. However,
the many ideas and techniques have often required the company huge
investments in training and consultancy with limited returns such as increased
market share. Additionally, in terms of ISO accreditation, the initial benefits have
gradually been reduced as more competitior companies are being ISO certified.
Hence, besides providing some benefits the annual accreditation process adds to
the cost of maintaining quality, and is often referred to as the “added cost of
qualtiy”.
Assuming that you are the Quality Manager of this public-listed electronics
factory dealing with producing electrical household appliances, provide a clear
description of a proposal for quality initiatives in order to improve the quality of
the service (maintenance) and products of your company that you would offer
your General Manager who is very reluctant to agree to proposals that incur
“additional” initial costs to your company. The arguments in the proposal should
point out the mainly existing externally-driven approach to improvement and
provide some more permanent approaches and solutions as well as the clear
ability to plan for higher productivity.
It is important that the proposal should describe the issues related to two existing
management ideas and techniques by initially introducing their key fundamentals
briefly, similarly with the ISO standards for products and services related to the
industry.
[40 marks]
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
26
ANSWER According to Boone, Louis E. & Kurtz, David L., (2006) the common element of
the business definitions to quality of a prodcut or service refers to the perception of the degree to which the product or service meets the customer’s expectation. Quality is a perceptual, conditional and somewhat subjective
attribute. Peter Drucker concluded that Quality in a product or service is not
what the supplier puts in. It is what the customer gets out and is willing to pay
for. Many academics agree to the fact that quality refers to the standard that
conforms to the customer’s requirement. However, Phillip B. Crosby does not
share the idea where he quoted saying that quality is “conformance to requirements. The requirements may not fully represent customer expectation
as this should be treated as a separate problem.”
Penagasonic is a public listed electronics factory which has been producing air-
conditioning units and has been around for over 15 years. The quality of the
services and products has been declining for the past few years. Ain Danish the
quality manager for Penagasonic, is proposing that external consultations is
required to introduce new management ideas and techniques and ISO accreditation is also required to be implemented. However the General
Manager is reluctant to agree to proposals that incur “additional” costs to the
company. According to Dr Edward Deming, the key to successful
implementation of quality starts at the top. Ain Danish will need to ensure that
the General Manager understands and agrres to the proposal prior to its
implementation.
Crosby further explained on Quality that Quality is free and the Cost of Quality is
divided into two main components, which is the cost of conformance and the
cost of non conformance.
The cost of conformance is the total cost of ensuring that a product is of good
Quality, which includes Quality Assurance (QA) activities such as training,
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
27
standardization, and procedures while Quality Control (CQ) on activities such as
inspections, reviews, audit and testings. This cost represent an organization’s
investment in the quality of its products which is either an ongoing operating
costs or capital initial costs.
The cost of non conformance is the total cost spent for remedial or corrective
works as a result of quality failure and repetitive reworks. This cost can
significantly explodes tremendously and also can contribute to the possible loss
of business, possible legal redress and other potential cost exposures.
For example, Guntong F jacket installation had a major setback, the structure
plunges into the sea due to technical error which could have been evaded if
higher quality control was in place. As a result of this, the jacket had to be
recovered from sea, send onshore, repaired and then send back for offshore
installation. This mistake has dearly cost Sime Darby and ExxonMobil more than
RM10 million. If a better quality control had been in place despite higher cost of
conformance, the far more expensive cost of non conformance would have been
minimized.
The external consultants proposed that Penagasonic needs to enhance the
existing QA/QC department and ensure that the six quality management
techniques are well implemented in Penagasonic. The six quality management
techniques that should be executed during every phases of the air conditioning
manufacturing is such as the Quality policy, objectives, assurance, control, audit
and program plan. By having this, the level of quality that has been declining in
Penagasonic for the past few years will be improved.
Quality Policy is usually proposed by experts and is supported by top
management. This will include statements and directives by the top
management. This will be vital in achieving total quality for the company.
However, a policy that is not implemented is nonetheless has no value, a good
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
28
policy will need strong support from the top management for its execution. In the
case of Penagasonic, a good quality policy will be a policy that exemplifies the
principles of the company and spesific instruction for quality matters and also
explanation to outsiders on how strict Penagasonic views quality. One of the
policies that Penagasonic can use is zero defects where every employee that
has no involvement with defect for a week will be rewarded with an incentives or
rewards. The proposed Quality Policy for Penagasonic is:
1. Customer Satisfaction and Loyalty
2. Product Competitiveness
3. Superior Quality Empoyee
Quality Objective is a set of targets that complies with the policy. A good
objective is easily explained as spesific, measurable, achievable, and realistic
and is time based (SMART). Penagasonic will need to focus on objectives that
can reflect the how serious that the company upholds quality and use objectives
such as minimum reworks or zero defect for every 100 products and also
place a target for services post purchase if a defect report is made. A 24 hours response time will reflect Penagasonic commitment to quality services and
products. Both of this will be the foundation of Penagasonic’s Quality Objective.
Figure 4-1 Penagasonic QA/QC department reporting line
GENERAL MANAGER
QA/QC MANAGER
FACTORY MANAGER
QA/QC DEPT.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
29
Quality Assurance is the management section of quality management. In short,
the QA is the one responsible in outlining how all method of works is defined,
outlined and executed. This is usually outlined in the Inspection Test Plan (ITP)
where a simple flowchart will show how the entire process flow is executed.
Penagasonic will ensure that QA exhibits clearly the process flow and procedures for the QC to execute. Having a procedure will ensure that the work
is executed in a standardized manner as Aristotle would put it that Quality is not
an act, it is a habit. To ensure the ability for Penagasonic to implement the
Quality Assurance and Quality Control the Quality Manager will have a direct
reporting line to the General Manager and only serves functional reporting to the
factory manager as opposed to previously where the Quality Manager reports
directly to the Factory Manager. With this, the Factory Manager cannot over-
rules quality decision made by the QA/QC department. Refer Figure 4-1 for
further explanation.
Quality Control is the execution of the quality assurance. This includes
monitoring of the process, identification and eliminating the problems and
certifies that the quality objectives are met. Penagasonic will have the QC
department to examine, test and commissioned every step of the assembly line
of the products from the beginning to the end. A third party QC will be
employed to ensure that the QC inspectors does not give leeway or accept non
conformance. The QC inspectors will be independent and report directly to the
QA/QC manager. This will be executed efficiently with the assistance of QA.
Peter Drucker rightly quotes that “There is nothing so useless as doing efficiently
that which should not be done at all”. All QC inspection will be based from the
Inspection Test Plan. An example for factory installation for an air-conditioning
system is as Figure 4-2 which is self explanatory. It dictates step by step of what
installation needs to be conducted and the inspection method which needs to
follow suit.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
30
Figure 4-2 Example of an Inspection Test Plan flowchart for air-conditioning
Quality Audit is an independent evaluation and check on how the work
implementation is according to the procedure. If there is a variation, the auditors
will produce a report to explain the non conformance where the factory manager
needs to action. This will ensure that all the procedure and system in place is in
good order. Penagasonic will have an annual audit conducted by Lloyds or
Bureas Veritas (BV) and this will also ensure the ISO certification remains intact
which will be explained further in the ISO certification proposal.
Quality Plan is breaking down the quality objectives into small work break down structure (WBS). By breaking down the quality objectives, a more
spesific set of objective which is relevant to the particular spesific work will be
identified. This will make it easier for the employees to understand what needs to
be done. Penagasonic will have every aspect of its execution together with the
quality plan. For example, welding of the capasitor to the compressor will have a
Material receiving storage
FLOW CHART FOR AIR-CONDITIONING SYSTEM
Receiving inspection
Storage
Record
(1)Deliver for fabricationWelder
qualification
Record
Application of
insulation
Fabrication of ducting equipment
Fabrication of ducting
accessories
Deliver to factory for assembly
Ducting/equipment receiving
(1)Installationof support & penetration
Record
Installat ion of ducting/Dampers/
accessories
Ductingleak test
Record
Installat ion of Accu/AHU/
Fans/motors
Installation of electrical/Instrument equipment
Instrument calibration
Record
(2)
Installat ion of piping for aircond flow
(2)Piping
leak test
Record
Meggercheck on cabling
Record
Final inspection
Record
Punchlist ing
Record
Preservation
Application of
insulation
Material receiving storage
FLOW CHART FOR AIR-CONDITIONING SYSTEM
Receiving inspection
Storage
Record
(1)Deliver for fabricationWelder
qualification
Record
Application of
insulation
Fabrication of ducting equipment
Fabrication of ducting
accessories
Deliver to factory for assembly
Ducting/equipment receiving
(1)Installationof support & penetration
Record
Installat ion of ducting/Dampers/
accessories
Ductingleak test
Record
Installat ion of Accu/AHU/
Fans/motors
Installation of electrical/Instrument equipment
Instrument calibration
Record
(2)
Installat ion of piping for aircond flow
(2)Piping
leak test
Record
Meggercheck on cabling
Record
Final inspection
Record
Punchlist ing
Record
Preservation
Application of
insulation
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
31
target of 0.5% repair rate for each 1000 capasitors and for the glanding of the
cables will have its target of minimum 2 rolls for each 20 rolls of heating cable
and so on. This assists individual employees in knowing what to achieve for their
particular job execution. The quality plan will also be incorporated into the
employee’s job description.
With the six quality management techniques introduced by the consultant,
Penagasonic will surely improves on its quality easily and will minimize the
currently high cost of non conformance. The next step will be to introduce the
certification to support and become the foundation for the existing six quality
management techniques.
The International Organization for Standardization (ISO) is based in Geneva,
Switzerland. It is a consortium of more than 100 of the world’s industrial nations.
Looking at other competitors in the aircond industries, ie - LG, Panasonic, Haier,
Tatung, Daikin and other renowed aircond brands, Penagasonic needs to be
certified with ISO 9001 and ISO 14001 in order to remain competitives.
Furthermore the cost is insignificant compared to the cost of non conformance.
Customers will find it appealing to see the ISO stickers on the products and have
higher confident to purchase Penagasonic products.
ISO 9001 is an international measurement of the way where a company
addresses its customer’s quality requirements, applicable legal regalutory
requirements with a goal to satisfy the customer and continous improvement in
quality. ISO 14001 is an internationally accepted global framework for
ebstablishing applicable management system process and highlights the
important of prioritising and managing environmental risk as part of business
practices. The paperwork introduces with the ISO certification is not as tedious
and ridicolous as many seems to believe, but the magnitude is very much less.
However, it does not guarantee that the quality of the services and product but
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
32
will provide the platform to facilitate improvement of quality where appropriate
systems are in order and is in place.
By having the ISO certification, better planning, control and documentation
are achieved thus improving the quality of Penagasonic. Planning execution will involves work methods identification to ensure that the objective, goals,
authority, scope of works and responsibility is properly defined for execution. Control will be achieved through continous quality controls method as explained
before. Documentation is necessary to ensure that the quality management is properly documented and from time to time can be evaluated and contionous
improvement can be made. With ISO certification, Penagasonic will be at par
with its competitors in the air conditioning world and will have easier international
access. ISO certification is recognized throughout the world and this will make
Penagasonic to be more acceptable to the market. With the current market that
emphasizes environmental friendly product the certification will show how
committed Penagasonic is to the environment. Customers will also have more
confident as a proper system is in place in ensuring that all Penagasonic
products go through proper inspection and testing of the quality. Penagasonic
needs to continously improve on the lesson learned achieved from the
documentation in order to retain existing customers, regain lost ones and also
win new customers.
Now Penagasonic can easily turns the day to day scope of work in the factory
into a precise and procedurized method of works. All the day to day operations
in the factory from receiving of materials, inspection, tagging, assembling,
welding, circuit boards, workshops, packaging and distributing methods will be
documented into a procedure. The QA department will ensure that this is
executed smoothly and the QC department will assists in terms of inspection
and testing to ensure the products are in high quality. A good documented
Inspection Test Plan (ITP) for every production aspect will be dictated. A good
self explanatory as Figure 4-2 refers. Post services in terms of products warranty
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
33
will also be monitored by the QA/QC department to ensure that all products
which is under warranty will be attended to in fast response time and served the
highest quality of services.
This proposal will assist Penagasonic in improving the quality services and
products of its air conditioning units. This will also reduce to the minimum the
high cost of the non conformance. Norman Augustine in his Augustine’s 12th
Laws (1986), concluded that it costs a lot to build bad products. Ain Danish had
easily pursuaded the General Manager to accept the proposal and the quality of
Penagasonic increases towards the year and is easily accepted into the
neighbouring markets in the Asia Pacific and is now also able to compete with its
European competitors.
Name: Anas Alam Faizli Student ID No. CGS 00385017 Centre of Graduate Studies MPM Intake: January 2009
34
REFERENCE
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Competing in the 1990s, Technical Management Consortium 4. Philip B Crosby (1984) Quality Without Tears, McGraw-Hill Book
Company 5. Seifert, D. (2004) Collaborative Planning, Forecasting and
Replenishment – Bonn. 6. Page, G. William (1989), Using Project Management Software in
Planning, Journal of the American Planning Association, 55:4 7. Perera, A. A. D. A. J. And Imriyas, K. (2004), An Integrated
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