Quiz #3 Operation Management

Stakeholder Management
Name : Fadhila Nurfida Hanif
NIM : 29320149

1. Stakeholders’ perception
a. Determine the relationships of stakeholders’ perception about time, quality, and cost.
The relationships of key stakeholders’ perception about time, quality, and cost are:
1) The employers want the project be finished on time, within budget and meet the
quality that determined before. They will try to minimize distraction and
compensation payments in the project.
2) The designers do their job based on their specialists so they will always try to
meet the quality. Usually they are paid per hour, so the time is not problem for
them.
3) The contractors’ perception about cost is to get money from their work in project.
But they have to finish the job on time otherwise they will get a penalty (pay the
fine) to the employers. So they will more care about the time than the quality.
b. Show the strong relationship in thick line and weak relationship in dotted line for
Indonesia.

E E E

time quality
cost

D C
D C
D C
Note:
C = Contractors
D = Designers
E = Employers
= strong relationship

= weak relationship

c. Explain the rationale of each relationship for both the strong and weak ones.
1) In the first triangle, strong relationships of stakeholders’ perception about time
are employers and constractor. Both of them must finish the project on time. If
they can not finish the project on time, they will have problem with another
stakeholder. For example, if the project is delayed, the employers must have
additional budget for it. For constractor, they have to pay the fine if they can not
finish their job on time. The designers do not have problem about time because
usually they paid per hours.
2) In the second triangle, strong relationships of stakeholders’ perception about
quality are employers and designers. Quality of project is define by the
employers, so the quality of the project must be maintained as determined by the
employers. The designers must plan the project management using their
specialist to meet the quality of project that determined by the employers.
 3) In the third triangle, strong relationships of stakeholders’ perception about cost
are designers and contractors. Either the designers or the contractors have to
finish the project with certain the cost that determined before. For both the
contractors and the designers, cost is important, because they always try to get
maximum profit with minimum resource.

2. Case study 1
There is an IT project cost $50 million. Project is currently at final testing stage in the
lifecycle of the project. Client’s users are highlighting significant number of defect in the
work but after further analysis from the team, the defects are not “true” defects but more
of additional “wish list” from the clients. The amount of changes in this category can be
easily translated to $2-3 million.
a. If you are the Junior Manager at operational level, what you should do?
If I am the Junior Manager, I will define the additional resources, cost and time,
also the quality for each “wish list” of the clients. After I finished determining it, I will
comunicate the result to the Project Manager.
b. If you are the Project Manager at tactical level, what you should do?
If I am the Project Manager, I will do the risk and benefit analysis from the data
(about the additional resources, cost, time, and quality of the “wish list”) that the
Junior Manager gave to me before. After analyzing the risk and benefit, I will
summarized the result and communicate it to the Project Director/Sponsor.
c. If you are the Project Director/Sponsor at strategic level, what you should do?
If I am the Project Director/Sponsor, I will consider the information about risk
and benefit. If the benefits are more than the risks, the “wish list” of the clients can
be done and vice versa. Besides considering the risk and benefit, to make the
decision, I will also discuss with the stakeholders, like the clients, the suppliers
and the contractors to get their opinion. After that I will take the decision and
communicate it to the stakeholders.