Tuesday, November 7, 2017

RACI and ARMI responsibility assignment matrix for GRPI teamwork

In teamwork (work done by more than one person) with clear goals, roles, processes, and interpersonal relationship (GRPI), such as a DMAIC (define, measure, analyze, improve, and control) project or a DMADV (define, measure, analyse, design, verify) project, the responsibility assignment matrix (RAM) can be used to clearly define the role and responsibility of each of the members in such teamwork.

One of the commonly used responsibility assignment matrix is the RACI matrix, which breaks down the teamwork into tasks, and map out who is responsible, who is accountable, who should be consulted, and who must kept informed for each of the tasks.

R - Responsible
  • The person who is assigned to carry out that particular task (the doer).
  • Each task must have at least 1 responsible person.
  • A task can have many responsible persons.
A - Accountable
  • The person who holds ownership of the task, and is responsible for its success or failure.
  • That person is authorized to make final decision on the task.
  • That person has the power to accept the completion of the task.
  • Each task can only have 1 accountable person.
 C - Consulted
  • Person who can be asked to provide opinion or input about the task while it is being worked on.
  • Normally a subject matter expert (SME).
  • The consultation should occur before decision or action is taken.
  • Each task can have either none, one, or more than one consulted persons.
  • If there are more than one, they should not be too many.
I - Informed
  • Person who needs to be kept informed that a decision or action has been taken.
  • Each task can have either none, one, or more than one persons to be kept informed.
  • If there are more than one, they should not be too many.
The RACI model can be extended to RASCI or RASIC by including a support role.

S - Support
  • Person who is able to help Responsible person in getting the task done.
  • The person possesses resource that can be shared out, or taking part in a supporting role.
  • Each task can have either none, one, or more than one support persons.

Beside RACI, the ARMI is another model that serves the similar purpose to define the level of support assigned to each stakeholders.

A - Approver
  • The person who sign-off a milestone and approve to move on towards the next milestone.
R - Resource
  • Persons who have the expertise or skillsets that are required in the project.
M - Member
  • Persons who are the project team member.
I - Interested Party
  • Persons who need to be informed about up-to-date status along the project.

Sunday, November 5, 2017

Top 30 property developers in The Edge Malaysia Property Excellence Awards 2017

The Edge Malaysia has just announced the Top 10 winners in their Property Excellence Awards 2017, which are:

  • 1. SP Setia Bhd (2016: #1)
  • 2. Sunway Bhd (2016: #3)
  • 3. Sime Darby Property Bhd (2016: #4)
  • 4. IJM Land Bhd (2016: #2)
  • 5. Eco World Development Group Bhd (2016: #6)
  • 6. UOA Development Bhd (2016: #7)
  • 7. Mah Sing Group Bhd (2016: #5)
  • 8. IGB Corp Bhd (2016: #9)
  • 8. IOI Properties Group Bhd (2016: #11)
  • 9. UEM Sunrise Bhd (2016: #10)
  • 10. Tropicana Corp Bhd (2016: #12)
Note that there are 2 developers ranked the 8th position in 2017. Most of the Top 10 winners in 2016 remain in the 2017 Top 10 list above, the only drop off is Gamuda Bhd - Property Division. IOI Properties Group Bhd and Tropicana Corp Bhd have successfully advanced into the list. Congratulations to SP Setia Bhd which managed to secure its 1st position for another year.

Following the Top 10 winners above, the subsequent Top 11-30 are:
  • 11. Eastern & Oriental Bhd
  • 12. MKH Bhd
  • 13. Matrix Concepts Holding Bhd
  • 14. Paramount Corp Bhd
  • 15. Malaysian Resources Corp Bhd
  • 16. OSK Holdings Bhd
  • 17. Glomac Bhd
  • 17. Selangor Dredging Bhd
  • 17. TA Global Bhd
  • 18. Sunsuria Bhd
  • 19. KSL Holdings Bhd
  • 19. WCT Land Sdn Bhd
  • 20. Land & General Bhd
  • 21. Hua Yang Bhd
  • 21. I-Bhd
  • 22. Wing Tai Malaysia Bhd
  • 23. Selangor Properties Bhd
  • 23. YTL Land & Development Bhd
  • 24. LBS Bina Group Bhd
  • 24. Malton Bhd
  • 24. SHL Consolidated Bhd
  • 25. Guocoland (Malaysia) Bhd
  • 25. Titijaya Land Bhd
  • 26. MCT Bhd
  • 27. Ivory Properties Group Bhd
  • 27. Ken Holdings Bhd
  • 27. Plenitude Bhd
  • 28. Symphony Life Bhd
  • 29. Eco World International Bhd
  • 29. MK Land Holdings Bhd
  • 29. Naim Holdings Bhd
  • 30. Tambun Indah Land Bhd

There are 2 winners of Outstanding Property Entrepreneur Award 2017:
  • Datuk Lee Tian Hock from Matrix Concepts Holdings Bhd
  • Tan Sri Ter Leong Yap from Sunsuria Bhd

There are 2 winners of Outstanding Property CEO Award 2017:
  • Datuk Khor Chap Jen from SP Setia Bhd
  • Sarena Cheah from Sunway Bhd - Property Division, Malaysia & Singapore

Tan Sri Ong Ka Ting is awarded with Outstanding Contribution to the Housing Industry Award 2017.

The following properties are awarded with Property Development Excellence Award 2017:
  • Mid Valley Megamall - Excellence in Suburban Family Mall
  • 1 Utama Shopping Centre - Excellence in Suburban Family Mall
  • Sunway Pyramid - Excellence in Suburban Family Mall
  • Pavillion Kuala Lumpur - International Luxury Shopping Mall
  • Regeneration of George Town - Excellence in Urban Regeneration

Friday, November 3, 2017

Typical types of procurement contracts

Procurement is the acquisition of goods, services or works from external source. A procurement contract is a legal binding agreement between the buyer and the seller.

In general, there are 3 broad categories of procurement contracts:

  • Fixed price (FP)
  • Time and material (T&M)
  • Cost reimbursement (CR)

Firm Fixed Price (FFP) or Lump Sum
  • Specifications or requirements are well-defined with clear statement of work.
  • There exist sufficient competition to determine a fair and reasonable fixed price.
  • If actual cost is more than agreed upon, seller bear the additional cost.
  • Buyer has the least cost risk.
  • To be fair to both parties, both buyer and seller need to have complete know-how of the work for precise price fixing.

Fixed Price Incentive Fee (FPIF)
  • Profits are adjusted based on seller meeting performance criteria in a progressive manner.
  • Performance can be measured in term of cost, time, and quality.
  • Successive targets are given to the seller.

Fixed Price Award Fee (FPAF)
  • An award (a.k.a. bonus) will be paid based on performance.
  • The total possible award amount is determined in advance and apportioned out based on actual performance.

Fixed Price Economic Price Adjustment (FP-EPA)
  • Normally applicable to long contract with uncertainties in future prices.
  • Price is adjustable depend on future cost of supplies and equipment required to be used.

Purchase Order (PO)
  • Simplest type of fixed price contract.
  • Only needs to be signed by buyer (unilateral party signing).

Time and Material (T&M)
  • Commonly used for service efforts whereby the level of effort is difficult to be determined when contract was awarded.
  • Buyer pays on per-hour or per-item basis.

Cost Contract (CC)
  • Cost is unable to be estimated accurately for fixed price due to exact scope of work is uncertain.
  • Seller receive no fee and make no profit. Charge as per actual cost.

Cost Plus Fee (CPF) / Cost Plus Percentage of Cost (CPPC)
  • Seller makes profit on top of the cost.
  • Fee varies with the actual cost.

Cost Plus Fixed Fee (CPFF)
  • Fee is pre-negotiated and fixed before work begins.
  • Fee does not vary with the actual cost.

Cost Plus Incentive Fee (CPIF)
  • Target cost is estimated and target fee is determined before work begins.
  • Seller will earn incentive from the savings if actual cost is less than the target cost.
  • Meanwhile, seller will also need to share cost overrun with buyer.

Cost Plus Award Fee (CPAF)
  • Buyer pays all the cost and a base fee plus performance bonus.
  • The award amount is pre-determined and apportioned out depending on actual performance.
  • Seller has the least cost risk.

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