BORANG PENGESAHAN STATUS TESIS

2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan

pengajian sahaja. 3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi

pengajian tinggi.

4. ** Sila tandakan ( 9 )

SULIT

( Mengandungi maklumat yang berdarjah keselamatan atau kepentingan Malaysia seperti yasng termaktub di dalam

AKTA RAHSIA RASMI 1972 )

TERHAD

( Mengandungi maklumat TERHAD yang telah ditentukan oleh organisasi/badan di mana penyelidikan dijalankan )

9 TIDAK TERHAD

Disahkan oleh

( TANDATANGAN PENULIS )

( TANDATANGAN PENYELIA )

Alamat Tetap :

_________________________________ NO. 8, JALAN P11 A1/13

_________________________________ PRESINT 11, 62300

_________________________________ WP PUTRAJAYA, _________________________________ PM AZIRUDDIN RESSANG _________________________________

Nama Penyelia

Tarikh : ____________________________ 19 MEI 2006

Tarikh : ____________________________ 19 MEI 2006

CATATAN : *

Potong yang tidak berkenaan **

Jika tesis ini SULIT atau TERHAD, sila lampiran surat daripada pihak berkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh tesis ini perlu dikelaskan sebagi SULIT atau TERHAD.

♦ Tesis dimaksudkan sebagai tesis bagi ijazah Doktor Falsafah dan Sarjana secara

PROJECT MONITORING SYSTEMS (PMS II) -Case Study on the Constraints and Problems Facing at Users Level-

Author MOHD. FAISAL BIN ABDUL HAMID MA 041140

A Project Report Submitted In Partial Fulfillment of the Requirement for the

Award of the Degree of Master of Science (Construction Management)

Faculty of Civil Engineering Universiti Teknologi Malaysia

Mei, 2006

Supervisor’s Declaration

“I / We* declare that I / We* have read through this project report and to my/our opinion this report is adequate in term of scope and quality for the purpose of awarding the degree of Master of Science (Construction Management)”

Signature : ………………………………………………

Name of Supervisor : Professor Madya Aziruddin Ressang

Date

Student’s Declaration

I declare that this project report entitled “Project Monitoring System (PMS II) - Study on the Constraints and Problems Facing at Users Level” is the result of my own research except as cited in the references. The report has not been accepted for any degree and is not concurrently submitted in candidature of any other degree.

Signature : …………………………………

Name

Mohd. Faisal b. Abdul Hamid

Date

Acknowledgement

First of all thanks to Allah the Almighty God that gives me strength to work with this project from the beginning until completely finished.

Appreciation is extended to the following for their involvement in this work that have contributed information and support to complete this project.

I would like to thanks Profesor Madya Aziruddin Ressang as my supervisor for his kindness and helpful advice and valuable information during the progress of the project.

Also a great dedicated to my wife Shakimah Ahmad by sharing the idea and sacrificed a lot of time by accompanying me through all the night while I am writing this project.

And to my all lovely kids Yani, Haziq. Airil and Lisa. All of you are my inspiration to write this project even its go through a very hard time. This is all for you love.

Finally to whoever has given and ideas, supports advices and assisted during the writing of this project report.

Abstrak

Sistem pemantauan yang cekap dan berkesan ke atas projek- projek pembangunan adalah penting untuk menjamin pelaksanaannya berjalan lancar dan tidak terjejas dengan fenomena ekonomi semasa dunia. Secara amnya proses pemantauan melibatkan perancangan, pelaksanaan dan penilaian projek bagi memastikan projek-projek dilaksanakan secara konsisten di semua peringkat dan tindakan penyelesaian dapat diambil bagi projek-projek bermasaalah. Kecekapan dan keberkesanan pemantauan projek-projek pembangunan sentiasa dipertingkatkan dari masa kesemasa dengan pengujudan beberapa kaedah dan sistem pemantauan yang lebih efisen dan sesuai dengan perkembangan teknologi terkini. Beberapa sistem pemantauan telah diperkenalkan oleh pihak kerajaan selari dengan Rancangan Pembangunan Malaysia Lima Tahun (RMLT) dan Rangka Rancangan Jangka Panjang (RRJP). Semenjak merdeka lagi beberapa sistem pemantauan telah pun ujud seperti Buku Merah, Sistem Pemantauan Projek I (SPP I), Sistem Setia, Sistem Integrasi Aplikasi Perjadualan (SIAP), Sistem Maklumat Bersepadu SETIA/SIAP (SMBSS) dan yang terkini adalah Sistem Pemantauan Projek II (SPP II). Kesemua sistem pemantauan tersebut telah dirangka dan dipertingkatkan keberkesanannya dengan harapan semua perancangan pembangunan dapat direalisasikan selaras dengan dasar-dasar kerajaan seperti Dasar Ekonomi Baru, Dasar Pembangunan Nasional dan Dasar Wawasan Negara. Kajian ini adalah menjurus kepada penggunaan SPP II di kalangan agensi kerajaan. Fokus utama adalah untuk mengkaji sejauh mana penggunaannya dan permasalahan yang dihadapi oleh agensi berkaitan dalam memasukkan data-data terkini projek.

Abstract

An effective and efficient monitoring system to the projects development is the most important aspect in order to ensure their implementation will going smoothly and not be affected due to the current phenomenon of world economic. As a general the process of monitoring is included planning, implementation and evaluation of the projects to make sure all development projects can be done consistently at all level and any problem occurs will straight away taken into action. An efficiency of monitoring system always needs to be upgraded from time to time with the introducing of some new method or system from the government due to the current technology changing. There are many system has been introduced corresponding to the Five Year Malaysian Plan and Long Term Planning (Outline Perspective Plan). Since from the day of independent projects monitoring system already exist such as Red Book, Project Monitoring System I, SETIA System, Integration and Planning Application System, SMBSS, and the latest one is Project Monitoring System II (PMS II). All these systems has been developed and implemented to ensure all the development projects that have been planned by the government can be succeed to fulfill the government policies such as New Economy Policy, National Development Policy and National Vision Policy. This study will narrow down to the PMS II and it application to the government agencies. The main focus is to study and explore the using of PMS

II and the problems facing when to key-in the current data for the projects.

Chapter Table of Contents Page

TITLE PAGE i

SUPERVISOR’S DECLARATION ii STUDENT’S DECLARATION iii ACKNOWLEDGEMENT iv

ABSTRAK v ABSTRACT

vi TABLE OF CONTENTS vii LIST OF TABLES xi LIST OF FIGURES xi

LIST OF SYMBOL AND ABBREVIATIONS xii

1.0 CHAPTER 1 - INTRODUCTION

1.1 Malaysian Development Planning – An Overview

1.2 The History of Project Monitoring System in Malaysia 4

1.2.1 The Red Book 5

1.2.2 Project Monitoring System I

1.2.3 SETIA System 7

1.2.4 SIAP System 8

1.2.5 SMBSS System 9

1.2.6 Project Monitoring System II

1.3 Problems Statement 12

1.4 Project Aim and Objectives 13

1.5 Scope and Limitation of Studies

1.6 Brief Methodology 13

1.6.1 Introduction/Literature Review

1.6.2 Data Collection 14

1.6.3 Data Analysis/Conclusion 14

1.7 Thesis Overview 16

2.0 CHAPTER 2 - LITERATURE REVIEW

2.2.2 Project Delivery 19

2.2.3 Project Management 19

2.3 Multimedia Super Corridor

2.3.1 Multipurpose Card 24

2.3.2 Smart School 25

2.3.3 Telemedicine 26

2.3.4 R & D Cluster

2.3.5 World Wide Manufacturing Web

2.3.6 Borderless Marketing 29

2.3.7 Electronic Government 30

2.3.7.1 Electronic Delivery

2.3.7.2 Electronic Procurement 33

2.3.7.3 Generic Office Environment

2.3.7.4 HRMIS 34

2.3.7.5 Electronic Labour Exchange

3.0 CHAPTER 3 - PROJECT MONITORING SYSTEM (PMSII) 35

3.1 Introduction 35

3.2 Rational of PMS II 36

3.3 Objectives of PMS II

3.4 Why PMS II 37

3.5 The Advantages of PMS II

3.6 The Implementation Phase of PMS II

3.7 The Responsibility of Government Agencies

3.7.1 Economy Planning Unit

3.7.2 Implementation and Coordination Unit

3.7.3 Departments and Ministries

3.7.4 Treasury 40

3.7.5 Public Work Department

3.7.6 Accountant General Department

3.8 Functions of PMS II

3.8.1 Operational Functions 41

3.8.1.1 Project Application Module

3.8.1.2 Monitoring Module

3.8.1.3 Budget Application Module

3.8.1.4 Mid Term review Module

3.8.1.5 Payment Module 48

3.8.1.6 Notice of Change Module

3.8.2 Managerial Functions 49

3.8.2.1 Executive Monitoring Module 50

3.8.2.2 Assessment Module

3.8.2.3 Web Application Function

3.8.3 Knowledge Base Function 51

3.8.3.1 Problems and their solutions module 52

3.8.3.2 E-Library 52

3.8.3.3 Best Practice 52

3.9 How to Start PMS II 53

4.0 CHAPTER 4 - RESEARCH METHODOLOGY

4.1 Primary and Secondary Data Collection

4.2 Questionnaire Form 62

4.3 Analysis Method 69

5.0 CHAPTER 5 - RESULT AND ANALYSIS

6.0 CHAPTER 6 - FINDING AND CONCLUSION

6.1 Finding 73

6.2 Conclusion 74

7.0 REFERENCES

List of Tables

Table 1 Current problems or Issues relating to PMS II Table 2

Problems facing at users level

Table 3 Suggestions how to improve the PMS II

List of Figures

Figure 1 Malaysia’s policies and development plans Figure 2

The Red Book Figure 3 SMBSS System

Figure 4

Monitoring systems in Malaysia

Figure 5

The MSC vision

Figure 6 E-Government flagships application Figure 7

A comparisons between PMS II and SMBSS system Figure 8

Implementation phase of PMS II

Figure 9 The core function of PMS II Figure 10

The operational function modules

Figure 11

Work process for PMS II

Figure 12

Notice of Change menus

Figure 13 main menus for operational function Figure 14

List of projects Figure 15 Project information’s

Figure 16

Project general information’s

Figure 17 Updating subprojects monthly expenses

Figure 18 Payment updated automatically in project Figure 19

Activities updating

List of abbreviations

PMS Project Monitoring System EPU Economy Planning Unit ICU Implementation and Coordination Unit

AG Accountant General MAMPU

Malaysian Administrative Modernization and Planning Unit SDO State Development Office MSC Multi Media Super Corridor OPP Outline Perspective Plans ICT Information and Communication Technology

R&D

Research and Development EG Electronic Government SETIA

System for EPU, Treasury, ICU and AG

SMBSS

Sistem Maklumat Bersepadu Setia Siap

SIAP Sistem Integrasi Aplikasi penjadualan GOE Generic Office Environment

HRMIS Human Resource Management Information System ELX Electronic Labour Exchange

CHAPTER 1 - INTRODUCTION

1.1 Malaysia Development Planning - An Overview

Development planning in Malaysia began in 1950 with the publication of the Draft Development Plan of Malaya. It has a three-tiered cascading planning horizon, covering the long, medium and short term planning horizons as follow:

¾ Long-Term Planning

• Vision 2020, 1991 – 2020 • First Outline Perspective Plan (OPP1), 1971 – 1990 • Second Outline Perspective Plan (OPP2), 1991 – 2000 • Third Outline Perspective Plan (OPP3), 2001 -2010

¾ Medium-Term Planning

• Five year development plans • Mid term review of the five years plans

¾ Short-Term Planning

• Annual Budget

The Outline Perspective Plan sets the broad thrusts and strategies in the development agenda for the nation over a long term. It sets the macroeconomic framework and long term targets through which the vision of the society is to be achieved. The medium-term plan is for five year period. The plan is formulated in the context of and within the framework The Outline Perspective Plan sets the broad thrusts and strategies in the development agenda for the nation over a long term. It sets the macroeconomic framework and long term targets through which the vision of the society is to be achieved. The medium-term plan is for five year period. The plan is formulated in the context of and within the framework

The Five Year Development Plans set out the macroeconomic growth targets as well as the size and allocation of the public sector development programs. In addition it states the indicative role envisaged for the private sector.

The Mid-Term Review (MTR) of the five year plan is carried out in the middle of the implementation of the five year cycles. The MTR is not only

a stock taking exercise to determine whether the plan is being implemented in accordance with the stated targets and development schedules, but it also reviews macroeconomic and sectoral policies and strategies and makes adjustments if needed.

The third tier is the annual budget. This annual planning exercise is undertaken by the Ministry of Finance in conjunction with their annual budget preparation. It also takes a consideration from the private sector views through budget dialogues. The Economy Planning Unit under Prime Minister Department plays the key role in determining the details of the annual development budget.

All these planning have been made to suit the sosio-economic environment and present political scenario and the most important is a nation development policies. In OPP1 for example, it become a basic of the implementing a New Economic Policy. For the OPP2, the Government introduced National Development Policy and under OPP3 the National Vision Policy has been implemented. All these policies were very important to ensure all government targets and objective to become a fully develop country in the year of 2020 will be materialized.

NINTH MALAYSIAN PLAN

06 - 2010 O

I EIGHT MALAYSIAN PLAN

01 - 2005

VL

SEVENTH MALAYSIAN PLAN

96 - 2000

E SIXTH MALAYSIAN PLAN

1991 - 95

AP

FIFTH MALAYSIAN PLAN

1986 - 90

A FOURTH MALAYSIAN PLAN

1981 - 85

YT

THIRD MALAYSIAN PLAN

1976 - 80

SECOND MALAYSIAN PLAN

1971 - 75

PP

FIRST MALAYSIAN PLAN

1966 - 70

LL

SECOND MALAYA PLAN

1961 - 65

NN

FIRST MALAYA PLAN

1957 - 60

Figure 1 - Malaysia’s Policies and Development Plans

1.2 The History of Project Monitoring System in Malaysia

“In Malaysia we do not just plan. We implement. While the Economic Planning Unit (EPU) draws up the plan for five years and each single year, and indeed for each single project or programme, the Implementation and Coordination Unit (ICU) oversees the coordination and implementation of every single plan, reporting back to the Government the progress and the problems so that changes and adjustments may be made where necessary in order to achieve the desired results”

YAB Prime Minister Malaysia Thursday, 16 May 1996

An effective and efficient monitoring system to the projects development is the most important aspect in order to ensure their implementation will going smoothly and not be affected due to the current phenomenon of world economic. The basis of effective project monitoring, evaluation and control is an explicit statement of the project objectives, goals and strategies which provide performance standards against which project progress can be evaluated. As a general, the systematic process of monitoring is included planning, implementation and evaluation of the projects to make sure all development projects can be done consistently at all level and any problem occurs will straight away taken into action.

An efficiency of monitoring system always needs to be upgraded from time to time with the introducing of some new method or system from the government due to the current technology changing. There are many system has been introduced corresponding to the Five Year Malaysian Plan and Long Term Planning. Since from the day of independent projects monitoring system already exist such as Red Book, Project Monitoring System I, SETIA System, Integration and Planning Application System, SMBSS, and the latest one is Project Monitoring System II. All these systems has been developed and implemented to ensure all the An efficiency of monitoring system always needs to be upgraded from time to time with the introducing of some new method or system from the government due to the current technology changing. There are many system has been introduced corresponding to the Five Year Malaysian Plan and Long Term Planning. Since from the day of independent projects monitoring system already exist such as Red Book, Project Monitoring System I, SETIA System, Integration and Planning Application System, SMBSS, and the latest one is Project Monitoring System II. All these systems has been developed and implemented to ensure all the

1.2.1 The Red Book (Buku Merah)

The Red Book is the first monitoring system that was introduced during the First Malaya Plan (1956 – 1960). The way how it works is based on the British Army Operation Briefing which is the main concern is reporting the physical progress of project. This progress will be shown at the Operation Centre. This Red Book concept normally applies to the project implemented at the rural area. It’s not a centralized monitoring but stands alone system. Meaning that, every district has their individual Red Book system. This Red Book will be examine and check regularly with the officer in charge and always available to top management or minister level to monitor the progress of every project ongoing. So, any problem occurs during the project implementing it can be resolved and monitored directly on site.

Figure 2 - The Red Book

1.2.2 Project Monitoring System 1 (PMS 1)

During the implementation of New Economy Policy in the year of 1971, governments introduced one instruction called National Action Committee Instruction No.1. At the same time, in conjunction of the enhancement of information technology in the year of 1970 bring the first implementation of using computer system to monitor projects. This is called Project Monitoring System 1. All the data under PMS 1 has been used to generate the implementation of National Development Policy in the Instruction No.

1. The main objective of PMS 1 is to process the data about project implementation and their status. The input to this system is based on the form that has been circulated to the implementation agency where as the status of project must be reported for every four months. Implementation and Coordination Unit then will check and organize all the data’s before it will be key-in to computer system. Consistency in term of checking and 1. The main objective of PMS 1 is to process the data about project implementation and their status. The input to this system is based on the form that has been circulated to the implementation agency where as the status of project must be reported for every four months. Implementation and Coordination Unit then will check and organize all the data’s before it will be key-in to computer system. Consistency in term of checking and

1.2.3 SETIA System

In the year of 1980, one research has been conducted by the Cabinet Committee to find a way and any plan to expedite the implementation of the development projects. As a result they find out that the SPP1 have several weaknesses and need to be updated. So, in the year of 1984 one new system called Project Development Tracking System or SETIA has been introduced. SETIA is an acronym for System Economic Planning Unit, Treasury, Implementation Coordination Unit and Account General Department. This system officially launched on 01 Mac 1984. Basically this system consists of four modules:

• Planning and Approved Projects Module

This module is needed by the Economy Planning Unit in order to process the program and approved project in Five Year Malaysia Plan.

• Estimated Budget Allocation Module

This module is needed by the Treasury in order to process yearly allocation for the approved projects.

• Project Status Tracking Module

This module is needed by the relevant ministries and ICU in order to analyze information of physical and financial progress.

• Payment Module

This module is needed by the Accountant General Department in order to process payment based on the progress of the projects.

SETIA system more concern or main focus on the financial status. The financial information that has been given is general because base on the project progress. Physical progress not given in detail, meanwhile the effective of project monitoring must not separate between financial and physical progress.

1.2.4 SIAP System

This new system has been launched in the year of 1991. SIAP is acronym for ‘Sistem Integrasi Aplikasi Penjadualan’ or Integrated Scheduling System. This system has been designed in order to help Head of Departments or Project Managers to prepare the implementation planning and monitor the development of the project more effective to avoid any unforeseen circumstances that will reflect payment progress and to ensure the progress of the project always on schedule.

SIAP actually the system that a part of SETIA. SETIA will concern about financial status where as SIAP will monitor the status of physical progress for the project or subproject. SIAP is the system based on microcomputer SIAP actually the system that a part of SETIA. SETIA will concern about financial status where as SIAP will monitor the status of physical progress for the project or subproject. SIAP is the system based on microcomputer

1.2.5 Integrated Information System SETIA/SIAP (SMBSS)

In the year of 1996, SMBSS has been introduced. This system not new but only the integrated and modified the previous SIAP and SETIA system become one system to monitor the projects under Seventh Malaysia Plan. The entire ministry that implementing the approved projects will be used the SMBSS system and the agencies under the ministry will still use the SIAP system. The objectives of SMBSS are;

¾ To enable ministries and State Development Offices (SDO) to track the progress of Federal Development Projects implemented by ministries in accordance to the National Development Policy

¾ To enable ministries and SDO’s to prepare Project Implementation Progress Reports and Analytical Reports for Management

¾ To assist ministries to act as secretaries to the Ministry

Development Committees

¾ To provide information on project implementation progress

details to ministries and ICU

¾ To help identify problems in project implementation

The implementation agency will responsible to input and update all the data’s. After certain project has been approved, Economy Planning Unit will allocate one ten digit number for every project through SETIA system. This number called SETIA project number. The Ministry that responsible for the project then needs to break the program or project into subprojects and give them a 14 digit number. This 14 digit number is a conjunction of the earliest 10 digit number that have been given by the EPU, meaning that one main projects have 10 digit number and all their subprojects will have a 14 digit number respectively. This 14 digit number called SIAP subproject number. SMBSS is using a SETIA*NET that link to all ministry with a dial-up system. Ministry will received the information from their agencies through SIAP. Then ministry send the data to ICU through SETIA*NET.

Figure 3 - SMBSS System

1.2.6 Project Monitoring System (PMS II)

Electronic Government (EG) project under one of the seven flagships Multimedia Super Corridor carried out a big impact to the development of project monitoring system in Malaysia. The vision of E-Government is to restructure a government management by using the multimedia and information technology. This is to improve and spread the using of information technology in Malaysia continuously. In line of this, to suit the requirement or present demand, the new project monitoring system or PMS II has been identified as one of the pioneer application in the E- Government applications. It is the first monitoring system that links all the ministries, agencies on line where the project information and data key-in at the source or user level. More detail for this monitoring system will be discussed further in Chapter 3.

As a conclusion the implementation of project monitoring system in Malaysia can be shown as follows:

SPP II 8MP

1996 SMBSS 7MP

1991 SIAP

6MP

1981 SETIA 4MP / 5MP

1971 SPP 1 2MP / 3MP

1957 RED BOOK MP1/MP2/1MP

Figure 4 : Monitoring Systems in Malaysia

1.3 Problem Statement

When the Project Monitoring System (PMS II) was introduced as a tool to monitor the government projects development, all the ministries and departments weree directed to use it as a part of their duties. The maximum using of this PMS II is very clear mentioned in the Instruction No.1 in the year of 2001. The Implementation and Coordination Unit (ICU) under Prime Minister Department in order to familiarize the system to the personnel that was responsible to use the system at ministries or department’s level has been conducted many courses and training.

Since the first day of PMS II was implemented in the year of 1998 until now the most problem are many ministries and departments are still not aware of the importance of updating data in the PMS II. Many ministries and department do not really use this PMS II and most of the data in the PMS II were out dated. ICU as the responsible agency always reminds the ministries and departments to ensure all data’s must be always up to date because PMS II can be reached at Minister Level even the Prime Minister at any time. Even development meeting at state level is using the data in the PMS to monitor the progress of physical and financial. So what’s really the problem? Government already spends about a total of RM50 million to develop this PMS II but the usage or outcome from the government agencies not as at early expected. In this project proposed, it will study the cause and problem facing at users level why it has been happened.

1.4 Project Aim and Objectives

The objectives of this project are:

• To study the current issues relating the implementation of PMS

II in government agencies.

• To identify the problems facing at users level in using the Project Monitoring System (PMS II).

• To make suggestions for improvement of the PMS II based on the finding

1.5 Scope and Limitation of Studies

The study will be considered only to the government agencies that using PMS II to manage and monitor their development projects and limited to development of building and infrastructure works only. It will not cover private project because this PMS II is developed only for government projects.

1.6 Brief Methodology

To assure the planned objectives of research will be achieved, some methods and process should be taken into consideration. In order to achieve the goals, all the data obtained will be analyzed and compiled to get the expected result. The work stage is planned in detail to maintain the success of this study. The methodology of this study can be divided into three phases:

1.6.1 Introduction / Literature Review

This is the preliminary stage of research to get the overall overview of the proposed topic. At this stage research will be implemented only by documentation research such as books, journals, conference texts, agencies bulletin, project papers, internet etc. This stage is very important in order to find out the related matters that will help to cover the scope of research. The main source of getting information is from various government agencies such as Implementing and Coordination Unit (ICU) and MAMPU under Prime Minister Department.

1.6.2 Data Collection

This phase is the important part where the primary data should be collected to fulfill the objectives of the study. It requires research, questionnaires to collect relevant data information. The primary data will

be gathered through questionnaires. It will be drafted and given to those government agencies that involved in PMS II in monitoring the government projects. The secondary data from literature review will also

be considered.

1.6.3 Data Analysis / Conclusion

After all the data has been collected, then the information will update and analyze process of those data will be implemented. The method of analysis will be decided later upon the suitability. Then it will be translated in writing in order to produce an easy way to be understood. Hopefully the objective of the research will be achieved.

PRELIMINARY PHASE IDENTIFYING PROBLEM RELATED LITERATURE REVIEW OBJECTIVES PROBLEM STATEMENT SCOPE OF STUDY DATA COLLECTION PHASE

PRIMARY DATA SECONDARY DATA (QUESTIONNAIRES) (LITERATURE REVIEW)

DATA ANALYSIS USING PPROPRIATE METHOD PHASE RESULTS AND DISCUSSION THESIS WRITING

Figure 5 : Research Methodology Flow Chart

1.7 Thesis Overview

The completed thesis will comprise of six chapters. Each of these chapters will be described as below: Chapter 1 -

This chapter is an introduction that focuses on the title of this thesis. It will cover the overview of the projects development and planning as general in Malaysia. It also discussed about the definition of topic, problem statement, thesis objectives and scope and limitations.

Chapter 2 - Literature review that focus on any topics that related to this thesis. These include the understanding of the project monitoring system, types of monitoring systems using in Malaysia for the

government projects.

Chapter 3 -

Project Monitoring System II This chapter will cover the detail of PMS II and their applications.

Chapter 4 - Research Methodology that will be covered the data collection.

Chapter 5 -

Result and Analysis

Chapter 6 -

Finding and Conclusion. The result finding will be discussed and further recommendation will be made.

CHAPTER 2 - LITERATURE REVIEW

2.1 Introduction

An E-Government project that has been launched is a part of the seven flagship application of the Multi Media Super Corridor (MSC). It carried a very big impact in order to ensure the achievement of Vision 2020. The vision of the E-Government is to restructure the government management in giving a very best service through the usage of multimedia and information technology.

The main objective is to increase the total productivity and then to make the environment more conducive and spread the multimedia technology throughout Malaysia consistently. In conjunction of that, in order to fulfill the current need of projects development monitoring, SPP II has been introduced as the pilot project of the seven prime applications to the implementation of the E-Government. It is very useful to monitor and tracking the financial and physical progress of development projects more effectively.

The former Prime Minister, Tun Dr. Mahathir Mohamad on 08 May 2001, has officially launched PMS II. This is the first monitoring system that link all the ministries, departments and agencies base on line that all the project information has been key-in at the source level. The PMS II project gives a new mechanism for monitoring projects. The need of Business Process Reengineering and Change Management hopefully can produce more efficiency procedure and process to the public servants. Generally it covered three aspects of application, data and communication in order to strengthen the effectiveness of project management.

2.2 Definition

The topic for this thesis is “PROJECT MONITORING SYSTEM (PMS II)”

From this topic the key words should be defined and clearly stated are as follow:

2.2.1 Project

A “Project” can be defined loosely as an item of work which requires planning, organizing and dedicating resources and expenditure funds, in order to produce a concept, a product, or a plant (James and Albert, 1994).

In 1996, Project Management Institute (PMI), USA, added that operations and projects differ primarily in that operations are ongoing and repetitive while projects are temporary and unique. A project can thus be defined in terms of its distinctive characteristics – a project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and ending. Unique means that the product or service is different in some distinguishing way from all similar products or services (PMI, 1994).

Dhillon (2002) on the other hand, defines project as a plan of work job assignment, or task (it is also referred to as job or task). Harold (2003), however,defines project to be any series of activities and task that have a specific objective to be completed within certain specification, have defined start and end dates, have funding limits, consume human and non human resources, and are multifunctional.

2.2.2 Project Delivery

In reviewing the various literatures, it found that various authorities have used different phrases, such as ‘procurement method’, project delivery system’, ‘contractual arrangement’, and ‘contract strategy’, to describe the arrangements, processes or paths of obtaining building and engineering facilities by owners.

As such, all the phrases described are taken to be interchangeable and simply refers to the ways or methods of obtaining by care or effort the desired facilities, such as a building or the in this study it would be the offshore oil and gas platform.

Some of the definitions suggested by the authorities includes Bower (2003), who has defined procurement system ‘as the process of

acquiring new services or products and includes contract strategy,

contract documentation and contract selection’. Masterman (2002) has defined it as the ‘organisational structure adopted by the Clients

for implementation, and at times eventual operation, of a project’.

Whatever their definitions and descriptions, project delivery method is expected ‘to ensure that the built structure or facility fully meets the

Clients requirements with regards to quality, functionality and

performance in a cost effective and efficient manner’ (CIRC, 2001)

2.2.3 Project Management

Project management is defined as the systematic application of management and construction expertise— through the planning, design, and construction processes—for the purpose of controlling the time, cost, and quality of design and construction. Although the success of a project is influenced by a variety of factors, in practically all cases, successful Project management is defined as the systematic application of management and construction expertise— through the planning, design, and construction processes—for the purpose of controlling the time, cost, and quality of design and construction. Although the success of a project is influenced by a variety of factors, in practically all cases, successful

Dhillon (2002) defines project management as the art of directing and coordinating material and human resources throughout the project life span by utilizing various management methods and techniques to achieve effectively predetermined goals of scope, quality, time, cost, and participant satisfaction. Harold (2003) states that project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives. Furthermore, project management utilizes the system approach to management in having functional personnel (the vertical hierarchy) assigned to a specific project (the horizontal hierarchy). CIOB (2002: xxiii) defines project management as, “the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and finally viable project that will be completed on time within authorized cost and to required quality standards”.

With the various definition of project management available, the definition used for the purpose of this research is the one defined by Walker (2002: 5), “Project management as the planning, co-ordination and control of a project from conception to completion (including commissioning) on behalf of a client requiring the identification of the client’s objectives in terms of utility, function, quality, time and cost, and the establishment of relationships between resources, integrating, monitoring and controlling the contributors to the projects and their output, and evaluating and selecting alternatives in pursuit of the client’s satisfaction with the project outcome”.

2.3 Multimedia Super Corridor (MSC)

Information and communication technology (ICT) is a critical tool that can assist the government in its effort to lead a country into the information age. Realizing the importance of ICT, the government is seeking to enhance and dramatically improve the convenience, accessibility and quality of its interaction with business and the country’s citizen in general, by utilizing ICT and multimedia technologies. This is also expected to simultaneously improve information flows and process within the government to increase the speed and quality of policy development, coordination and enforcement.

The Malaysian Multimedia Super Corridor was launched in 1995 as part of Malaysia’s long term planning. It was initiated as one of the programs to accelerate Malaysia’s aim to become a fully developed nation and knowledge rich society by the year 2020. This is very important element in order to fulfill the Vision 2020. The MSC is a designated 15km x 50km corridor stretching from the Petronas Towers in the north to the Kuala Lumpur International Airport in the south, encompasses Cyberjaya and Putrajaya mainly to provide an integrated environment for businesses and activities specializing in ICT and multimedia technologies. The special area is supported by innovative cyber laws, outstanding infrastructure and practices to enable Malaysia to leapfrog into the information age. Implementation of MSC is divided into three phases started from 1996 to the year 2020.

Figure 5 : The MSC Vision

In Phase 1 (1996-2003), the MSC was successfully implemented. Every milestones set for Phase 1 were surpassed. In Phase 2, a web of similar corridors will be established in Malaysia, and global framework of cyberlaws will be passed; furthermore at least four or five intelligent cities will be linked to other global cities worldwide. In Phase 3 Malaysia will evolve into one MSC. An international Cybercourt of Justice will be established in the MSC and 12 intelligent cities will be linked to the global information highway.

The MSC Flagship Application is divided into two distinct categories:

• Multimedia Development

These Flagships applications are offering concrete business opportunities to facilitate the MSC’s development as a total. These projects have long term objectives that reach far beyond the MSC’s border. Supporting Vision 2020 they aspire to transform core elements of Malaysia technology infrastructure and social systems in areas such as education or public administration using multimedia technologies as a critical enabler in the process. The

Flagships Application and the lead agencies responsible for their development are as follow:

No

Flagship Application

Lead Agencies

Electronic Government Malaysian Administrative

(E-Government)

Modernisation and Planning Unit

2 Multi Purpose Card

Bank Negara

3 Smart Schools

Ministry of Education

4 Telemedicine Ministry of Health

• Multimedia Environment Flagship Application providing an optimal environment that

supports multimedia companies entering the MSC. Recognizing the specific needs of emerging businesses and value added service companies these flagship application substantiate the MSC’s bid to develop a Multimedia Utopia for innovative producers and users of multimedia technologies. The applications and the agencies responsible for their development are as follow:

No

Flagship Application

Lead Agencies

Ministry of Science, Technology &

1 R & D Cluster Environment

World Wide

Ministry of International Trade and

Manufacturing Webs

Industry (MITI) Malaysian Development

3 Borderless Marketing Corporation (MDC)

2.2.1 Multipurpose Card (MPC)

“…….with smart collaboration between government agencies and the private sector, the development of Malaysia’s Multi-Purpose Card or MPC will offer tremendous opportunities to provide the most cost-effective ways of delivering services. This will enhance synergies, improve work processes, yield cost savings and further enhance customer services…….”

Tan Sri Dato’ Ahmad Mohd. Don

Former Governor, Bank Negara Malaysia (Source: The Seven Flagship Applications – MDC)

The national Multi Purpose Card seeks to develop a single and common platform for a MPC that will enable the government and private application providers to implement smart card solutions without duplications of effort and investment. Initially the MPC is implemented through GPMC and PMPC projects. As a result, MyKad and Bankcard are the products developed for the GPMC and PMPC initiatives. MyKad developed by the National Registration Department (JPN) and private ICT developers that create a common platform for smart card solutions. The card is embedded with a security enhanced 64k microprocessor chip that is multi functional across varying systems. My card applications are:

• National ID • Driving licenses • Passport Information • Health Information • Touch and Go • MEPS cash • ATM • Public Key Infrastructure

2.2.2 Smart School

“An exciting development of our education systems is the creation of Smart Schools. Smart Schools are being planned in stages nationally, not only to meet the requirements of the MSC but also to create a new generation of Malaysians – Malaysians who are more creative and innovative in their thinking adept with new technologies and able to access and manage completely the information explosion”

Dato’ Seri Mohd. Najib Tun Haji Abdul Razak

Former Minister of Education, Malaysia (Source: The Seven Flagship Applications – MDC)

“Education in Malaysia is an on-going effort towards further developing the potential of individuals in a holistic and integrated manner to produce individuals who are intellectually, spiritually, emotionally, and physically balanced and harmonious based on a firm belief in and devotion to God. Such an effort is designed to produce Malaysian citizens who are knowledgeable and competent, who posses high moral standards, and who are responsible and capable of achieving high levels of personal well-being as well as being able to contribute to the harmony and betterment of the family, the society and the nation at large.”

Malaysia’s National Philosophy of Education, 1993

Smart School term can be defined generally as school that have applied information technology to various aspect of schooling such teaching and learning, staff training and management. The main vision of smart school in Malaysia not only the introduction of information technology entirely but more importantly is their ability to deliver education in a better way.

The smart school initiative has five main goals:

• Provide all-around development of the individual covering the intellectual, physical, emotional, and spiritual domains.

• Provides opportunities to enhance individual strength

and abilities • Produce a thinking and technology literate work force. • Increase participation of stakeholders in education

process • Provide democratize education or equal access to

learning to every child

2.2.3 Telemedicine

“Malaysia’s Telemedicine initiative is not just point-to-point tele- consultation. It incorporates the full spectrum of multimedia technologies to bring about benefits to all players in the health sector. It will transform the healthcare services and shape new relationships between people and their healthcare providers. This will be known as telehealth.”

Dato’ Chua Jui Meng Former Minister of Health, Malaysia. (Source: The Seven Flagship Applications – MDC)

The Telemedicine initiative aims to keep people in the ‘wellness’ paradigm. Through the seamless availability of health information and virtual health services, the way healthcare services are delivered and access will dramatically change. Telemedicine is not another technology but a process that focuses on the individual to provide greater access and increased knowledge on healthcare. It empowers the individual to manage his or her own personal health, The Telemedicine initiative aims to keep people in the ‘wellness’ paradigm. Through the seamless availability of health information and virtual health services, the way healthcare services are delivered and access will dramatically change. Telemedicine is not another technology but a process that focuses on the individual to provide greater access and increased knowledge on healthcare. It empowers the individual to manage his or her own personal health,

Telemedicine will play an increasing role in future healthcare and offers a mechanism for reversing the healthcare pyramid. Malaysia has taken the initiative to incorporate Telemedicine into the healthcare delivery system to the country. Telemedicine aims to go beyond the traditional delivery modes to provide greater access to smoother and higher quality healthcare to all Malaysians.

2.2.4 R & D Cluster

“Malaysia recognises that fundamental to the continued success of the MSC is its ability to promote and sustain world class R & D in multimedia products, technologies and services. To this end we strongly commited to provide and support R & D with particular emphasis on new modes of partnerships linking the key players in the MSC”

Datuk Law Hieng Ding Former Minister of Science, Technology and the Environment, Malaysia. (Source: The Seven Flagship Applications – MDC)

The vision is to create the first internationally focused R & D cluster in Asia, driven by strong government commitment and guarantees. The MSC will lead Asia’s R & D initiative into the information age. In order to achieve this, the mission is to develop a cluster of collaborating world class corporate R & D centres, universities and public research institutions.

Three core elements of the R & D Cluster Flagship will help to achieve this: first, the encouragement of corporate R & D ; second, the creation of a new Multimedia University; and third, the Three core elements of the R & D Cluster Flagship will help to achieve this: first, the encouragement of corporate R & D ; second, the creation of a new Multimedia University; and third, the

2.2.5 World Wide Manufacturing Web

“In an increasingly competitive environment, revolutionizing the manufacturing processes will spur the development of highly competitive industry leaders. The Multimedia Super Corridor will provide an ideal environment for breakthroughs and innovation which are crucial for the competitive edge”.

Dato’ Seri Rafidah Aziz

Minister of International Trade and Industry, Malaysia (Source: The Seven Flagship Applications – MDC)

The World-wide Manufacturing Web (WMW) Flagship Application aims to provide a conducive environment for these high value added manufacturing activities to be pursued using multimedia and information technology. This application is a government initiative to provide the optimal environment for manufacturing and manufacturing service companies utilizing multimedia technology to create and deliver value added services and products to their customers around the globe.

The ultimate goal is to position Malaysia as a prime choice for manufacturing companies to locate hubs for supporting and controlling their expanding manufacturing operations in the region more efficiency and cost effectively. It is envisaged that such hubs would allow for manufacturing companies and manufacturing services companies to create high value added in the MSC and The ultimate goal is to position Malaysia as a prime choice for manufacturing companies to locate hubs for supporting and controlling their expanding manufacturing operations in the region more efficiency and cost effectively. It is envisaged that such hubs would allow for manufacturing companies and manufacturing services companies to create high value added in the MSC and

2.2.6 Borderless Marketing

“Companies participating in the MSC will be able to excel in their regional and global businesses because the Corridor offers excellent technological infrastructure in addition to a broad spectrum of other favorable conditions. This will allow creative and innovative companies to take full advantage of the vast opportunities to build new businesses and shape new industries in electronic commerce, telemarketing, digital broadcasting, and information services. Malaysia’s central Asia-Pacific location will underpin the success of companies planning to participate in creating a hub for Borderless Marketing.”

Tan Sri Dato’ Dr. Othman Yeop Abdullah

Former Executive Chairman, Multimedia Development Corporation

(Source: The Seven Flagship Applications – MDC)