:AACE CERTIFICATION 2009-2010:

What I’m learning and Compare to my organization

This past week, I get into Earned Value Management part in Humphrey book, Chapter 33 Collecting Actual Cost. So I would like to analyze my organization practice with consideration factor of actual cost collection.

Level of Cost Collection
In my organization, we collect the actual cost at the work package level which is the level that work actually performed and have single assignment to individual. This is provide the visibility advantages to project manager but quite disadvantage in maintenance task for project control or project support team. But I think this is the proper level of detail that we should do because we not only get visibility when monitoring but we also can keep historical record in database for cost estimation development.

Commitment
I’m familiar with this word “Commitment” because it is the term that SAP use in project system. It has the same meaning with this book, “Commitments are orders which have been placed but delivery has not yet occurred, meaning no cost has been booked. Even though money has not been paid, accounting will recognized liability for that amount.” (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 662). And as it is mentioned in the book, this reflects the time lag between order placement and use of material and the figure 33-3 page 662 and 33-4 page 663 provide me the clear picture.

Material Cost
“The most popular points to take earned value credit for material is at the point of receipt, because it is normally the point at which the liability is recognized within the accounting system. This minimizes the impact on accounting, but this convenience should be weighed against the greater utility of crediting earned value at the time of usage. This is the point at which the material has real value to the project.” (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 663).

Compare to my organization, material cost can apply to installation material and software. And the point that we normally use in practical is material receipt as it is the point which we accept material from supplier and will be used at site. I had never thought how this is so important of each point with the earned value methodology. But its explanation is quite clear for me that it should be the point that material will be performed its work. And not just receiving it because it probably returns with damaged, scrapped, or found unacceptable reason. This incorrect point will result in variance analysis.

Accuracy of Report Actual Costs
We just standardize the work package of our service product in this year. This is very good program since we will have the same defined work package and everyone are understandable, as from the book "the precaution should be taken to minimize in correct charges 3. Keep charge codes as simple as possible and 7. Clearly defined what belongs in each account", page 668.

Moreover, it provides project manager and project control easier when monitoring, analysis and keep historical record for, as from the book “the precaution should be taken to minimize in correct 5. Do spot checking and 6. Maintain historical records", page 668.

Merry Chirstmas and Happy New Year!
Wishing You and Your family happy and healthy.

Labels: aace, Chrisma Wibowo, weekly blog in english

Since I was absent from my last week blog due to family relocation to Jakarta, I am hoping this week is my week back to the AACE course. But the relocation is not as smooth as I thought before, the know un-know happen. My car relocation delayed, cable TV trouble, several corner of the house need to finalized, the air cond need services, etc… and so on and so on. Like a normal project, my relocation project has a commitment problem from my contractor which requires a “crash” program to bring it back to the track.
Today I want to share my curios about 30 days payment term. I ever download an article about “Net 30 payment” a couple weeks ago for my paper needs. Still mix up in my head on how to correlate on Syariah /and finance Syariah, EVM, usury, and possibly a prompt payment will connected too.
A questions I have about “payment” long time ago (and still my question until today) is why every contract standardizes for company I ever work, always have their GTC (clausal for payment), mention the payment will proceed 30-45 days after invoices received (or good/services received or completed). I also ever have experiences a supplier decline from the list because not agree to the payment term.
Why is should be 30/45 days? Is that purely because of administration obstacle, or is regulated by accounting general practice?
I try to seek an answer at Google engine and this is what I get from as follow:
Net 30 is a form of trade credit which specifies that the net amount (the total outstanding on the invoice) is expected to be payment received in full 30 days after the Goods are dispatched by the seller, or 30 days after the Service is completed. Net 30 is a term that most business and municipalities (federal, state and local) use. Legally speaking Net 30 means that buyer will pay seller in full on or before the 30th calendar day (including weekends and holidays) of when the Goods were dispatched by the Seller or the Services were fully provided. Transit time is included when counting the days, i.e. a purchase in transit for 7 days before. In addition, Net 30 terms are often coupled with a credit for early payment (probably this is cost plus fee?); e.g. the notation "2% 10, net 30" indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the dispatch of the goods, and that full payment is expected within 30 days. For example, if "$1000 2/10 net 30" is written on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 10 days. Net 30 payment terms typically have an interest penalty for not meeting these terms and they begin accruing on the 31st day after dispatch (1)
Reading above explanation, this is the real condition where practically happen in the company. The payment proceeds by company 30 days after the good received or services completed by the contractor.
Compare to experience I have deal with the contractor on Inco site, after the progress claim approved by company, the contractor sent the copy of approved progress claim to their Jakarta offices, then their jakarta offices submit the invoices back to Inco’s sorowako. This is sometime not run very smooths but ‘cause mostly from contractor side, since their take excessive time to prepare invoices and to sent back to us/company. When the invoices received by company’, then the invoices it will get stamp’s “received“by company finance dept; then from it the day was count. The invoices will go around back to the project department to get final approval prior to final payment.
Experiencing, the total days from progress claim approved by company to the payment sent to contractor bank account vary from 25 – 60 days. I can imagine how it will influence the contractor cash flow; and also how the interest will play it roles for the contractor. The longer the payment, the higher interest will be.
Above condition just happen every day and people will think this is a normal way to proceed payment, but until now I could not get the answer “why it should be 30 days?” in the contract term.
In this blog I invite any opinion and I hope Pak Paul (as a Mentor) could give me direction on this.
B/R, Farid Maloni

Cited from (1);http://en.wikipedia.org/wiki/Net_30

What I’m learning and Apply to Work

This week I reading Humphrey Chapter 27, Tracking the Estimate, and Compare to my real work.

Objective of Tracking Estimate is to justify the variance and understand it to prepare more accurate estimate in the future (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 555). And to improve accuracy over time – continuing feedback of actual costs consistent with the estimated costs, allowing estimating standards to be revised when necessary. (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 559)

I would say that my organization had realized this advantage and start implemented this idea around last year. And I am the one who prepare the report to compare plan versus actual and feedback to estimated team. But I think this is just start because I have not seen that the estimated team fully utilizes this information in such the way to improve estimating standards in order to guide each individual person to estimate in the same way/assumption.

From our organization point of view, this kind of report is considered in term of Historical and Vertical traceability which able to accurately summarize data with no exclusions, no doubtable counting, and correct summation totals. (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 559)

When I looking through Figure 27.4 in Project Management Using Earned Value, Humphrey & Associates, p. 560. I realize that my report is few values to the estimated team. I did only comparison of plan and actual for each implementation site by separate each type of resource.

What I could do to add more value to my report are

• In the summary level, I should group it to category of resource type. For example: internal resource (man-hour), External resource (man-hour and task) and expense. In order to know that how good of the estimation in each type of the estimator.
• I should also distinguish the Estimate omission or duplication in the summary in order to reflect and emphasize if there is any misunderstanding of intended scope from estimator such as missed component redundancy, overlooked items, or inadvertent double budget. (Cited from Project Management Using Earned Value, Humphrey & Associates, p. 560)

But one more thing that I would refuse to do is tracking the changes of schedule changes, estimate refinement. Because when schedule and revisions (revised productivity values, quantity variations, invalid estimate assumption) change is hard to split the cost in term of recording into the cost account. If it is necessary, I think project manager is required to analyze the data and judge it from their project information rather than keeping record separately which could confuse the resource to book to cost and also increase maintenance work.

Finally, I would like to thank you to Dr.Paul again. From what you ask me to write what I have learned and apply to work in the blog every week. Because I have to push myself to think more and more how I use what I learn apply to my real work. Since my young learning experiences, I never practice like this before which it is the most worthy part of the entire learning.

Week#11 – Andy’s Blog

Reading on recent four papers/articles of AACE on General Principles and Risk Estimating Methods download from the Web Site introduce me in different terminology and approached on risk analysis methods compared with the Humphreys book which is currently used for my research on the risk assessment. I thinks it’s good to obtain deep understanding of the articles that could implement on the current practice of risk analysis and to compare whether any relationship between two different term and approach of risk analysis between Humphreys and the articles in manner to fulfill my research on the risk assessment.

The four articles are actually Recommended Practice (RP) of AACE international to provide guidelines for contingency estimating that they would recommend be considered for use where applicable. The articles are titled :

1. Contingency Estimating – General Principles
2. Risk Analysis and Contingency Determination using Range Estimating
3. Risk Analysis and Contingency Determination using Expected Value
4. Risk Analysis and Contingency Determination using Parametric Estimating

As it may quite wide range topic for this week blog, while I just limit and summary the topic on general principles of contingency estimating in this week blog report then the rest overview will be written and overview next week.

General Principles of Contingency Estimating

Any methodology developed for quantifying risk impact should address general principles :

• Meet clients objective, expectations and requirement, considering constraints in terms of time, resources availability, quantification methods validation and client’s level of risk tolerance should be gauged such the budget or schedule represent the most likely result, or a more conservative or aggressive outcome.
• Effective decision or risk management process , the risk management process must be identified that the estimating practices are supporting and make sure their outcomes facilitate the process, e.g. TCM frame work is being a generic model for such a process.
• Fit for use, In addition to considering the general requirements of the client and the process, any other contextual that may affect the estimating risk and how they are managed are required to considered such : Portfolio, project type, risk type, project phase, base estimate or schedule methodologies, skills and knowledge of the team participants.
• Identifying risk drivers, this process needs to consider both inherent estimate uncertainty and risk events including both project specific and external risks that may impact the project.
• Link risk drivers and outputs whether it’s link potential impact with cost and schedule
• Avoid iatrogenic (self-inflicted) risks, the number of risks should be screened in manner that only risks have potential critical level in regard of it’s probability and severity. The risk impact estimated should be developed by expert judgment to ensure the risk impact is not underestimated or over estimated.
• Employs empiricism, as a general practice is as on taking experience from the past and applying it to the present and future e.g. regression, benchmarking, or validating analysis results against historical data.
• Employs experience/competency , no estimating will provide reliable estimates without the input of a experiences and competent estimator (a risk analyst).
• Provide probabilistic estimating results help to ensure that the client understands the potential consequences of their decision and in a way the support effective decision making and risk management.

There are some classes methodology of risk analysis, as summarize below, i.e. :

Expert Judgment , means that the judgment must have a strong basis in experience and competency in risk management and analysis. This method is highly subject to imposing iatrogenic risk when the judgment is inconsistent or biased which can be minimized by obtaining the consensus of multiple experts or experience team.

Predetermined Guideline (with varying degrees of judgment and empiricism used), This method is simple, understandable and consistent and as such, it is easy to get management buy –in and often used by inexperienced people. The methods for use on all estimates of a certain type to complex tables or scoring mechanisms that employ elements of parametric modeling. A disadvantage is that it can not effectively address risks that are unique to a specific project or risk that are common but may have inordinate impacts on a given project.

Simulation Analysis, This method combines expert judgment with an analytical model that is used in a simulation routine to provide probabilistic output that is facilitates the analyst’s and teams experience and input, which is particularly well suited for project specific risk. A disadvantage is the method’s complexity which requires expertise in application, the outcomes are not highly consistent dependent on the analyst and team input, and more challenging to apply effectively for systematic risks. The simulation analysis most common methods in use are Range estimating and Expected Value ; both of which use Monte Carlo or similar simulation routine and also Parametric Modeling

Hybrid methods that combine several or all of the above classes. .

Here is table summary of relationship between the general principles and the classes of risk methods

I will be on leave next week and may not work on blog report. Wishing you and your family happiness in Christmas time and coming in New Year.

Greeting all,

1. Create CPM/PDM network
2. Develop activity duration estimates
3. Calculate a duration distribution for activities
4. Compute the path distribution
5. Evaluate the results include estimated completion contingency and identify high risk paths
6. Initiate status monitoring
   

Critical Path Method Analysis

The analysis of CPM identifies the critical path at a line of activities where is tightly managed and the probability is high that an overrun, if any , would not exceed one month, i.e. :

From early start of project site preparation ==> clean up quarry ==> sub base construction ==> Load-haul overburden and ore ==> Base construction ==> finish (commissioning).

Two of the critical path activities are included in the longest duration activities, that are load- haul overburden and ore (84 days) and sub base construction (49 days). However, PDM shows there are 4 activities are required to be considered on the schedule risk analysis that they have an circle interconnection and have dependent of relationship each others i.e. :

• Sub base construction could not be started and finished prior drilling and blasting commenced and finished. Indeed, that unavailability of blasted rock material will affect the road sub base and following critical path line activities are unable to construct.
• Load and haul of overburden and ore could not be commenced prior sub base construction commenced. The other way, sub base construction could not be finished prior load and haul of overburden and ore completed. In fact, the load-haul overburden and ore will be stopped when sub base construction delayed as the heavy equipments will required road pavement material to load and haul soil material (overburden and ore).
• Bench sloping and clean up ore could not be started and finished prior load-haul of overburden and ore commenced and finished.

The duration of activity as per mentioned in the table above is based on equipments calculation model using parameter from historical data, that are included historical of physical availability (PA) of each equipments, circle time (loading, hauling, maneuver and dumping time) and handbook of equipments specification. The hauling distance of uncertainty overburden disposal locations is adopted by the most reliable of the longest available disposal location.
Using assumption by normal distribution, the cumulative likelihood S curve against possible path durations as shown figure below.

Learning – Schedule Risk Assessment
Project management using earned value by Humphreys and Associates provides an insight into practical project management which is useful in practice. I was reading chapter 19 to deal with the question that assigned to me, the chapter can help me to deal with unrealistic request for delivery schedule and also provide an answer to the request what would be the probable schedule risk with various method that provided in the chapter and so that contingencies can be planned for the risk event if it takes place. However not all the methods are perfect, PM need to recognize the advantages and disadvantages and also potential discrepancies arise with different method used.

Schedule risk is part of an overall risk assessment and exists in every project as well as daily activities. Failing to recognize and consider this risk will be causing cost and schedule overrun. Highly critical path does not mean that the risk is high. CPM will be able to help to recognize the path with longest duration and least total float, however risk analysis provide information that CPM unable to detect. Critical path may attract management attention however highest risk path has a good chance of overrunning. Results can be serious when the impacts of high schedule risk paths are ignored. In addition to incentive payments may be lost, additional costs may be incurred in the rush at the end of the project to accelerate efforts in an attempt to meet the completion date.

The fact is that even standard projects are risky and one-of-a-kind or first-of-a-kind projects (customized IT or software projects) are particularly risky because:
- Technology may be unproven
- Design readiness is more difficult to achieve - unanticipated problems may occur with no ready solutions.
- Little or no historical data are available
- Objectives or scope may be redefined middle of the project
- Contractors, supplier and labor are more unfamiliar with what is required to get the job done.

Schedule risk assessment involves a number of goals that including estimating the likelihood of overrunning the baseline schedule and identifying paths that are potential problems area so that they can receive increased management attention and provides early warning of threats to the schedule. Those responsible for a risk assessment should adhere to standards of honesty and provide unbiased estimates. However, due to strategic reasons, very often schedule risks are disregarded. Even with a well-disciplined risk analysis, management may make bad decisions with good information.

Risk of a schedule overrun is driven by, any factors, known and unknown factors, we need to quantify these factors, expert judgment is needed to quantify the risk when data are not available. Quantified risk assessment helps to allows decision made based on potential overrun that is clear and explicit, and provides as estimate of the contingency requirement to limit overrun risk to an acceptable level as well as early warning for special management attention so that extra resources can be allocated if necessary and also contingencies plan can be activated.

Very often as a contractor, due to competition and customer demand, directed dates project schedule and reducing duration to fit the schedule, happens in project bidding as well as implementation. Project manager and bidder have to be honest in dealing with such kind of situation and to provide the real picture and the extent of risk that could affect the project if we underestimated the damage caused by over ambitious bid that provide the “feel good” picture the project will be successful. This is a violation of scheduling process and a risk analysis can help to explore the situation and provide the workaround to the situation to negotiate internally and externally for the acceptable delivery schedule that can really help to ensure deliver the project successfully.

Methods shown as well as illustration in this chapter, such as CPM approach, cumulative likelihood curves (S-Curves) and its characteristics and considerations in relation to network design and characteristic as well as more advance method such as PERT approach, analytical approximation approach and Monte Carlo approach can be practically applied and provide an eye opener to project owner or project sponsor the impact if we failed to recognize or constantly ignoring the impact of the schedule risk.

CPM approach could help to provide a quick and rough idea on the risk probability and S-curves will be able to provide an illustration on how the schedule will be shifted or delay and its probability. Preferred method will be PERT or Monte-Carlo approach. However, PM needs to put the methods presented in Chapter 19 in practice to deal, instinctively and automatically, with issue arises from risk assessment and its potential impact.

[Reference: Chapter 19, Schedule Risk Assessment, Project Management Using Earned Value]

I am continuing to search and read several articles by goggling on the net, for what I wrote in Blog#5 and how to define framework of my 2,500 word paper “EVM observed from Syariah law”. I am tried to define:
“Why I write on this topic?”
“What issue becomes the starting point?”
“What other topics will correlate with the paper?” and wondering;
“What the final conclusion related to EVM?

I start my reading with interesting presentation” Introducing to Islamic finance, Security and Sukuk”, by Amer Khalil Ur Rehman, AIMS-Academic for International Modern Studies UK.
I found interesting cited from website of AIMS wrote as follow:
“...Global potential of the Islamic banking market is conservatively estimated at $4,000bn, according to Moody's Investor Service. Current market is estimated at only $700bn, most of it in the Gulf. With such potential it becomes clearer why governments, eager to please their Muslim populace, are encouraging more banks to start up and expand outside domestic markets...” (1)
I found also in the presentation slide, that ABN Amro, Citibank, Deutsche bank, Hongkong & Shanghai banking Corp, Union Bank of Switzerland doing Islamic Banking for profit and market size since potential, and not (necessarily) for religious reasons. Profit during 80’s average 15%-20% p.a. and in 90’s onwards averaged 10%-15% p.a. return (1).
Booth cited above; and what I ever wrote in my Blog#5 probably could be answering “Why write in this topics”.

Then I continue to “What is the starting”.
One of special characters of Islamic/Syariah finance is prohibiting usury, interest, or riba. (PS: I will not discuss further in this blog, but what I read in the presentation (1), cited some epistle from Judaist and Christian with the same aims). Syariah is part Islamic which teach us on practice and activity; including practice on banking and financial activity.
In this point I will explain on “Riba”. If we talk on Islamic banking/ Finance law, we usually find Riba/usury prohibition. The very basic question” Why Riba/Interest/usury is prohibit in Islamic Syariah perspective?
Riba (Interest) is any return/reward or compensation charged on a loan contract as well as charged in rescheduling debts. Riba is strongly prohibited in Islam. The economic implication is that money is considered as a medium of exchange effectively created to be sought not in itself but for other commodities. Thus, charging interest on loans is considered unjust since money is considered to be simply an intermediary between goods. Recently scholars have also placed increased scrutiny on not only the rationale for the prohibition of interest but also on the lack of theory in support of interest. Mirakhor (1995) provides an overview of recent discussions concerning this theme. He refutes numerous arguments that lend support for the existence of interest as a backbone for conventional financial markets. It is maintained that when money is loaned, the funds are used to create either a debt (in which case there is no warrantable rationale why the lender should accept a return) or an asset (in which case there is no justifiable reason why an unconditional assurance of interest should be imposed by the market) (2)

Picture: Cited from (4)

Anyway, I realize still far away from “What the final conclusion related to EVM".
Recall the pictures I ever shown in blog#5 (see attached), and read on below of “Sukuk Istisna” definition as a contract whereby a manufacturer (or contractor) agrees to produce (or construct) and deliver, at a given price on a given date in the future, a well-described good (or building) according to specifications. In istisna the price need not be paid in advance. It may be paid in installments, similar to progress payment as agreed by the parties, or partly up front, with the balance being paid later”(3).
I think running Project management EVM (probably) applicable to Syariah finance law environment. It because the strength of Project management EVM (compare to Ordinary PM) is the “real time” monitoring on any project indicator (such as progress etc) and plays in helping to know and understand how “healthy” our projects are (5).

Those capability will satisfy the Istisna requirement above that”... In istisna the price need not be paid in advance. It may be paid in installments, similar to progress payment as agreed by the parties, or partly up front, with the balance being paid later”.

And then, IMPO, a prompt payment issue is crucial to the health of contractor who applying project management EVM, regarding to the tight margin provision in the high market competitiveness.

Let me finish my reading, researching, and seeking of any correlate issue within it,in order to complete the body of my paper.

B/R, Farid Maloni
PS: Pak Paul (as mentor), I will potentially cannot reach any net access within nextweek, 'cause I am on the way to relocate my family from mining site to Jakarta and set the new place, so, I almost sure cannot post any blogs nextweek. I hope you could understand the condition.Thanks

(1) http://www.learnislamicfinance.com/ ; Financial Times UK 'Jul 2008
(2) Managing Financial Risks of Sukuk Structure,- A dissertation, MSc, International Banking, Ali Arsalan Tariq,Loughborough University UK, 2004.
(3) “Islamic Financial Services Industry Development-Ten year framework and Strategy”,policy dialog paper no#1 ,IFSB -Islamic Financial Service Board, may 2007.
(4) Sukuk Al Istisna’a Scheme for Balongan Project- Case Study,Pertamina, September, 2006. www.alhudacibe.com/.../Sukuk/Sukuk%20al%20Istisna%20Case%20Study.pdf
(5) Paul D Giamalvo, email to aace-2009@googlegroups.com ,title: RE: [AACE-2009. 416] RE: EV PM vs conventional PM, Sent: Sat 11/28/2009 6:46 PM

What I’m learning this week

What I would like to emphasize in my weekly blog is that how can I matching what I learn to my real working environment in the term of terminology, tool and process.

This week on mapping project, I have reviewed Risk Management for my peer. This is the topic under Chapter 7, Project Control Process.

Cited from TCM Framework under 7.6 Risk Management page 160.

The main processes consist of;

• Plan for Risk Management
• Risk Assessment (identify risk factors)
• Risk Analysis (quantify the properties of risk factors)
• Risk Mitigation
• Develop Risk Management Plan
• Analyze Contingency
• Control Risk Factors and Impacts

Reference from Ericsson Risk Management Hands-on Training material (ECT-09:001655Uen)
Risk Management process is,

• Risk Management Planning
  Prepare Risk Management Plan – describe how and when the different steps shall be performed. Shall also state who shall attend, etc.
• Risk Identification
  Find risk and opportunities.
• Risk Analysis
  Estimate impact and costs.
• Risk Response Planning
  Create mitigation plan.
• Risk Monitoring and Control
  Implement according to plan.
  Follow-up the risk situation

Comparing Risk Management between TCM Framework and Ericsson Risk Management Process

• The Risk Management process starts at Strategic Asset Planning or once the steering group decides to Pursuing the Sales Opportunities.
• The overall process are the same which start from planning the scope, Risk Assessment, Risk Analysis, Risk Mitigation/Develop risk management plan and finally Monitoring and Control it. Including the feedback loop from Control part to Identify process.
• In Risk Assessment: to identify the risk factors by addressing the uncertainties which are both Threat and Opportunities. This is the same concept
• Risk Analysis that Ericsson uses are both methodologies;
  
  Qualitative Analysis which classify the risk in low, moderate and high categories which require different level of monitoring and control action. This is simple and incorporate several important factors.* Cite from Project Management using Earned Value by Humphreys & Associates page 72. This method is quite rely on gut feeling which require effective risk workshop and brainstorming technique that will gathering risk factors from project stakeholders.
  Quantitative Analysis using the enterprise Risk Template which based on Triple-estimates with Erlang distribution by utilizes the method of most likely, minimum and maximum method. And also using Monte Carlo theory.
  
  This is good in term of quantitative point of view because it can translate the feeling of risk level into figure which enable project to put back in project planning process in term of cost and budget. Second point, it also put back into project scope, schedule and resource planning process which will be monitoring, control.

However in practical, many project managers may start with good risk analysis but neglect or not continue with the monitoring and control of the risk. This will damage the total project and be worthless the risk analysis initiation at the beginning.

Eventually, I would like to summarize that the risk management process concept is good no matter what source it is, which provide the same purpose is to increase the probability that a planned asset or project outcome will occur without decreasing the value of the asset or project*. (cited from TCM Framework page 159). But the purpose will not be achieved if we do not work through to all sub process.

Next week, I plan for holiday which cannot access internet. So I will not submit my weekly blog.

Long Live The King Bhumibol Adulyadej

Hi all.
This is my book log #9 for AACE Transformer team goals and objectives. This week I done multi tasking act. Right as my working experience and my Transformer role. Just like I said in my first blog entry, AACE certification is my goal and to achieve it really like a riding on a roller coaster, fulls of ups and downs that is good form my personal experience and lesson learnt. I usually have write this blog in my office for 8 consecutive weeks but this week my project was posponed their concrete pouring session therefore I do this blog input in my house but I overslept due to I tug my son to bed and complete together I tug my self in rest. ;)

Anyway, for this week related to my job, it seems that I have put new mark on my users head that I am the cost gate keeper of my organization's projects. I have been very strict with project cost and expenditure and not let it over budget. I am in stingy attitude and I think this role I have not been playing in my previous project before. I always runs project to over budget and this is quite shameful but my alibi is I was not the project manager back then. Now after I am planning to have CCC certification this role I have to play more often in order to raise my credibility in the eyes of my organization's.

My end users required one equipment that has 23 quantities with 7 different filter cartridges. One of the users was taking an easy choices by saying they need all 7 different filter cartridges for all 23 equipments. Me stood stand tall and call for big meeting to all parties, in the meeting finally we elaborate more about this issue. After I explain my background which is we have to split between project cost budget with operational and maintenance cost budget, and all of them accepting it. And now the final decision is we bought those 23 equipments which this is a mandatory as we are really need this equipment to fill the class, but the cartridge was not 23 no more but only 17. For me this is quite enormous breakthrough when I could stop the end "panic buying" mode to more reasonable vision, at least until the building can manage to operate first, we still could buy the cartridge on the later stage. At the end, the end users was thanked me for my ability to see more deep about cost saving. Overall the related parties was over joy because I could manage the important value of the project which is how to to get operate after project accomplished not to let over think how to maintain because maintain and operational cost has its own budget cost.

I tried to find what chapter this engineering economic paradigm of mine. Because when you have read a lot, you might do not know or forget from where you have this courage and or from what chapter of my mindsets. I realize that I have done the Engineering Economic Analysis Procedure and Chapter 6, Comparison and Selection among Alternatives.

This week I have done a lot and goes lot of places of meeting rooms. In order to clarify my running cost. Very fortunate that I have start writing my paper assignment and read GAO-09-3SP for reference. Chapter 16 in this GAO mentioned about Documenting the Estimate which I have done it in this week. In GAO there are checklist for the estimator how to creating high-quality cost estimate report. I follow the sections and finalize it. Big wish that this could arise my users (organization) aware that I have raise my personal quality.

Related to Transformer team, I am quite devastate to run a team that I do not have an authority to each other team member. This is really challenging situation because I could not reach them and get personally involve to help them to overcome their obstacle. Thank you to my mentor that keep me high spirit can teach me to see from positive perspective. I have plan for next week to create a polling to decide few maters that have been stuck for couples of weeks.

Labels: aace, Chrisma Wibowo, weekly blog in english

TRANSFORMERS have since been formed for 2 months for a common goal as stated in the team agreement. After 2 months of teaming, it is time to looking at what we have achieved and to decide a way forward. By looking at the results (project report) received as of week 8, by having an overview on individual team member weighted SPI for 3 deliverables, without considering Control, (Mapping, 24%, Paper; 38% and Questions; 38%), we can see the team distribution as follows:

Note: The SPI data shown above is a reflection situation as of WK 8 and is not the ultimate performance indicator of the particular group or team member.