Diploma in Ship Superintendency - Module 9 - Lloyds Maritime Academy [2015, PDF]

Contents

2
CONTENTS
1. INTRODUCTION TO THE MODULE ...................................................................................... 8
2. PROJECT MANAGEMENT FOR SUPERINTENDENTS ........................................................... 12
2.1 Examples of Typical Projects ....................................................................................... 12
2.2 Feasibility Studies – Design, Investigations and Construction .......................................... 14
2.2.1 What is Meant by a Feasibility Study? ............................................................. 14
2.3 Project and Planning Principles .................................................................................... 19
2.3.1 What is a Project? ........................................................................................ 19
2.3.2 What is Not a Project? .................................................................................. 19
2.3.3 Key Characteristics of Projects ....................................................................... 20
2.3.4 Why Do We Need to Manage a Project? ........................................................... 20
2.3.5 Project Management Process ......................................................................... 20
2.3.6 Defining the Project ...................................................................................... 24
2.4 Project Planning ........................................................................................................ 26
2.4.1 Project Planning Steps .................................................................................. 27
2.4.2 Project Cost Planning .................................................................................... 28
2.4.3 Earned Value Management ............................................................................ 29
2.4.4 Quiz ........................................................................................................... 30
2.5 Roles and Responsibilities, Leadership and Managing The Project Team ........................... 30
2.5.1 Project Manager ........................................................................................... 30
2.5.2 Role ........................................................................................................... 31
2.5.3 Juggling the Three Dimensions ...................................................................... 32
2.5.4 Does One Need to be a Superhero? ................................................................ 32
2.5.5 Project Management Responsibilities .............................................................. 33
2.5.6 Project Management Duties ........................................................................... 34
2.5.7 Project Management Skills ............................................................................ 34
2.5.8 Project Sponsor ........................................................................................... 353
2.5.9 Steering Board/Group Member....................................................................... 35
2.5.10 Senior Consultant or Supplier-side Project Manager .......................................... 36
2.5.11 Project Team Member ................................................................................... 36
2.5.12 Project Administrator or Co-ordinator ............................................................. 36
2.6 Contract Strategy ...................................................................................................... 37
2.6.1 Contract Definition ....................................................................................... 37
2.6.2 Steps of the Contracting Process .................................................................... 37
2.6.3 Types of Contracts ....................................................................................... 38
2.6.4 Contract Management................................................................................... 39
2.6.5 Probity and Transparency .............................................................................. 39
2.6.6 Contract Variations ....................................................................................... 39
2.6.7 Administrative Variation ................................................................................ 39
2.6.8 Substantive Variations .................................................................................. 39
2.6.9 Developing a Contract Exit Strategy ............................................................... 40
2.6.10 Contract Closeout......................................................................................... 40
2.7 Specification and Procurement .................................................................................... 41
2.7.1 What is a Specification? ................................................................................ 41
2.7.2 Types of Specifications.................................................................................. 42
2.7.3 Specification Development Process ................................................................. 43
2.7.4 Procurement................................................................................................ 44
2.8 Work Breakdown and Project Scheduling ...................................................................... 46
2.8.1 Work Breakdown Structure (WBS).................................................................. 46
2.8.2 Work Packages ............................................................................................ 47
2.8.3 Project Evaluation and Review Technique (PERT) Analysis ................................. 47
2.8.4 Project Delays ............................................................................................. 48
2.8.5 Realistic Deadlines ....................................................................................... 49
2.8.6 Characteristics of a “Realistic Deadline”?......................................................... 494
2.8.7 Chronic Unease – Expect the Unexpected ........................................................ 49
2.8.8 Proactively Watch Out for Unexpected ............................................................ 49
2.8.9 Act to Mitigate the “Damage” Caused by Delays............................................... 49
2.9 Selection, Appointment and Management of Contractors ................................................ 51
2.9.1 Prequalification and Bid Evaluation ................................................................. 51
2.9.2 Prequalification Document ............................................................................. 51
2.9.3 Evaluation of Tenders and Contractor Selection................................................ 52
2.9.4 Contractor Appointment ................................................................................ 52
2.9.5 Contractor Management ................................................................................ 53
2.9.6 Service Delivery Management ........................................................................ 53
2.9.7 Relationship Management ............................................................................. 53
2.9.8 Contract Administration ................................................................................ 54
2.10 Risk and Delay Management ....................................................................................... 54
2.10.1 What is Risk? ............................................................................................... 54
2.10.2 What Is Risk Management? ........................................................................... 55
2.10.3 Risk Management – A Dynamic Process .......................................................... 55
2.10.4 How to do Risk Management ......................................................................... 55
2.10.5 The Risk Analysis Process .............................................................................. 56
2.10.6 Risk Identification ........................................................................................ 56
2.10.7 Risk Evaluation ............................................................................................ 56
2.10.8 Risk Probability-Impact Matrix ....................................................................... 56
2.10.9 Risk Control and Response ............................................................................ 57
2.10.10 Develop a Contingency Plan or Preventative Measures for the Risk ..................... 58
2.10.11 What is a Risk Register?................................................................................ 58
2.11 Quality Management .................................................................................................. 59
2.11.1 Quality Planning ........................................................................................... 60
2.11.2 Quality Assurance ........................................................................................ 605
2.11.3 Quality Audits .............................................................................................. 60
2.11.4 The Plan, Do, Check, Act (PDCA) Cycle ........................................................... 60
2.11.5 Quality Control ............................................................................................ 61
2.11.6 Quality Assurance vs Quality control ............................................................... 61
2.12 Monitoring and Reporting ........................................................................................... 62
2.12.1 Monitoring ................................................................................................... 62
2.12.2 Why Monitor? .............................................................................................. 62
2.12.3 Project Pperation Monitoring .......................................................................... 63
2.12.4 Performance Monitoring ................................................................................ 64
2.12.5 Monitoring versus Evaluation ......................................................................... 64
2.12.6 Reporting .................................................................................................... 65
2.13 Managing Project Change ........................................................................................... 65
2.13.1 What is Change Management? ....................................................................... 65
2.13.2 Types of Change .......................................................................................... 66
2.13.3 Change Impact Statement” (CIS)................................................................... 67
2.14 Project Closure and Review ........................................................................................ 68
2.15 Case Study ............................................................................................................... 69
3. PROCUREMENT PLANNING AND PURCHASING ................................................................ 71
3.1 Spares Management Strategy ..................................................................................... 71
3.1.1 Where to Start? ........................................................................................... 71
3.2 Spares and Equipment Specification ............................................................................ 71
3.3 Planning for Vessel Maintenance ................................................................................. 72
3.4 Implementing Requisition Procedures .......................................................................... 73
3.4.1 What is a Requisition? .................................................................................. 73
3.5 Cost Effective Methods of Purchasing ........................................................................... 74
3.5.1 What is Meant by Cost Effective Purchasing? ................................................... 74
3.6 Inventory Management and Distribution to the Vessels .................................................. 756
3.6.1 What is Meant by Inventory and Why Does it Need to be Managed? ................... 75
3.7 Expenditure and Work Costing .................................................................................... 76
3.7.1 E-Procurement ............................................................................................. 76
3.7.2 Benefits of E-Procurement ............................................................................. 76
3.7.3 Traditional Procurement vs E-Procurement ...................................................... 76
4. FINANCE BUDGETS AND ACCOUNTS FOR SUPERINTENDENTS ......................................... 78
4.1 Basic Accounting Principles ......................................................................................... 78
4.1.1 Accrual Principle........................................................................................... 78
4.1.2 Conservatism Principle .................................................................................. 78
4.1.3 Consistency Principle .................................................................................... 78
4.1.4 Cost Principle............................................................................................... 78
4.1.5 Economic Entity Principle .............................................................................. 78
4.1.6 Full Disclosure Principle ................................................................................. 78
4.1.7 Going Concern Principle ................................................................................ 79
4.1.8 Matching Principle ........................................................................................ 79
4.1.9 Materiality Principle ...................................................................................... 79
4.1.10 Monetary Unit Principle ................................................................................. 79
4.1.11 Reliability Principle ....................................................................................... 79
4.1.12 Revenue Recognition Principle ....................................................................... 79
4.1.13 Time Period Principle .................................................................................... 79
4.2 Contributing to Devising, Agreeing and Monitoring Annual and Task Specific Financial
Budgets ................................................................................................................... 79
4.2.1 What is a Budget? ........................................................................................ 79
4.2.2 Monitoring a Budget ..................................................................................... 80
4.2.3 Approaching and Investigating Variances ........................................................ 80
4.2.4 Ten Things to Remember for Successful Budgeting ........................................... 81
4.3 Monitoring Costs Against Budgets and Forecasts ........................................................... 81
4.3.1 What Sort of Information is Required to Monitor Budgets? ................................. 827
4.4 Cost Control, Payments and Managing Spend ............................................................... 82
4.4.1 Spend Management ...................................................................................... 82
4.4.2 Cost Reduction vs Revenue Generation ........................................................... 82
4.4.3 How Spend Management Saves Money ........................................................... 83
4.5 Anti-Bribery and Corruption Policy ............................................................................... 84
4.6 Audits ...................................................................................................................... 85
4.6.1 Planning and Risk Assessment ....................................................................... 85
4.6.2 Internal Controls Testing ............................................................................... 85
4.6.3 Substantive Procedures ................................................................................ 85
4.7 Budget Case Study .................................................................................................... 87
References ................................................................................................................................. 89
Appendix 1 – Budget Builder
Appendix 2 – MESPAS Software