CEESP Electrical Energy Project Management 3 Project Organization

7/29/2019 CEESP Electrical Energy Project Management 3 Project Organization

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Electrical EnergyConversion andPower Systems

Universidadde Oviedo

ELECTRICAL ENERGYPROJECT MANAGEMENT

Part 3 Project Organization

Lecturer: Jos ngel Daz lvarez


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3. Project Organization

3.1. PROJECT CHARTER

3.2 TARGETS

3.3. PROJECT TEAM

3.4 ACTIVITIES

3.5 RESOURCES

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.

1.7 DELIVERY TIMES AND COST

1.8 TARGETS AND PLANNING REVIEW


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The previous analysis is finished

Top Management takes the decisionto execute the project

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Budget is authorized, so it seems that everything is ready tostart to use the right resources and commend the execution

As we are dynamic and committed with delivery times

START QUICKLY!


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START QUICKLY? NO!

This temptation must be avoided. Things are much morecomplicated

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delay for not preparing, planning and organizing properly

In this moment it is needed to develop one of the essential

stages for good management and project success:

PROJECT PREPARATION, PLANNING AND ORGANIZATION


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Key success to convert opportunity into expected application ontime and cost

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3.1 Project Charter

Project Constitution Act/Project Charter/ProjectDefinition/Project Statement

Is a statement of scope, objectives and participants in aproject

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Project Targets

Schedule

Budget

Main Stakeholders Authority of the Project Manager


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3.1 Project Charter

Document signed by ahigh level

manager/director whohas functional authorityover all resources and

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organizations that worksin the project.

Its approval formallyinitiates the project.


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3.2 Targets

Targets have been initially identified clearly, in their tripleprofile:

This definition has been a base for taking the decision of going

Cost Time

Scope

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But if, for whatever reason, they have not been clearlyspecified this is the right moment to do it

We can not progress without clear targets, project limits andbasic restrictions


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3.3 Project Team

At this stage it is also key the nomination of the ProjectManager

The nomination has to come from a top hierarchical position

Formality and Solemnity

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Authority and Strenght

All the company has to understand the importance of this role.

NEVER make informal nominations: You please take care ofthis


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3.3 Project Team

This nomination has to be associated with a definition offunctions that states:

What is expected from him/her Degree of autonomy

Decision taking capacity

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A Project Management can be invested with differentdegrees of power and autonomy. Its role it is not alwaysevident

The definition of functions must be brief but concise


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3.3 Project Team

Additionally to the Project Manager it is the right moment toidentify other decision centers important for the success ofthe project:

Top decision and supervision organ

Hierarchical head of the Project Manager

Controllin or an Steerin Committee, Mana ement Team

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Functional directors providing resources to the project


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3.3 Project Team

Sometimes it may be convenient to nominate other people orgroups with a partial participation in the project:

External Consultants Project Managers consultant committee/group

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Dimension

Complexity

Risk

Relevance


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3.3 Project Team

This project structural network is sometimes difficult torepresent following a classical hierarchical organization chart,as there is not only hierarchical relations but: Influence Consulting

Client-supplier

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Etc.

This brings a different type of organization chart

RESPONSIBILITY MATRIX


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3.3 Project Team

15Matrix (RACI)


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3.3 Project Team

If we enter the matrix from the rows we see: Who is able to take every type of decision

Who others may be involved in different degrees

If we enter the matrix from the columns we see: What is the responsibility of each agent (organ)

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When they have to be involved and with what degree of authority

The responsibility matrix is a very useful tool to ease andclarify the definition of functions in the project management

Every company will have to define its own matrix, coming fromits own structure fitted with its own characteristics


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Project team

Once scope is defined, it is required a team to carry out the tasks

- Project team should be adequate in size and capacity for task working out

- Responsibilities assignment: Every task should have a responsible

- Qualities: High performance, Sharing goals, interdependence

- Structure: Functional line, Matrix, project dependence hierarqy

3.3 Project Team

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Project

MANAGEMENT

CONSTRUCTION

ro ec mens ons more

typical are two

ro ec eams sp e or

each dimension


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Project team: Construction dimension

3.3 Project Team

tools

Team working

Orders

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Material management

Charts / scheems

administration

Intelectual-phisical working


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3.4 Activities

This is one of the reasons to consider that the Project Managementneeds a high professional skills, plus other personal andmanagement ones

But it is not possible that the Project Management is a master of allthe knowledge areas of a complex project, so he/she can be advisedby other experts, both internal or external

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The responsibility matrix is a very useful tool to ease and clarify thedefinition of functions in the project management

In a big size or complex projects it may be needed a second

management step: Subproject Responsibles Work packet Activities Tasks


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3.4 Activities

It is the moment to make the project breakdown and second(or third) level responsibles nomination

WBS Work Breakdown Structure:

Hierarchical (downward) breakdown of project activities into

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It defines and organizes the scope of a project

The work is divided into smaller pieces, every time moredetailed


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3.4 Activities

WBS Work Breakdown Structure:

Hierarchical (downward) breakdown of project activities

into simple elements

It defines and or anizes the sco e of a ro ect

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The work is divided into smaller pieces, every time moredetailed


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3.4 Activities

The lowest level works are the Work Packages

The work packages can be scheduled and cost estimated

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complexity of the project

In order to make a WBS we can use

TemplatesPrevious project examples

Experts opinions


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3.4 Activities

26WBS Organization Chart


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3.4 Activities

Just the activities listing is not enough, it is needed adescription that allows to understand its: Sense

Content Expected output

Execution conditions

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Use templates

The description degree of detail will be different from case tocase: Brief description

Technical descriptions, drawings, economical assessments, etc.


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3.5 Resources

The performance of the activities explained before has to betogether with the resources to be used in every activity

Resource description is another essential element in projectplanning, as it is one of the aspects that produces more

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3.5 Resources

Right Human Resources in Quantity

Material Resources Quality

Activity development

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Complexity: A lot of different resources are used: machines, specialists,

subcontractors, etc.

Resources are not used in a steady way in time. For every activitydifferent resources are needed in quantity and quality

The type of resources used and its quantity mark the project cost

Available resources are limited, must be managed carefully


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3.5 Resources

The decision about what resources to employ in every project phaseis a complex decision

Deep technical knowledge are required

Big experience

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Clear management abilities

There are many ways of developing a certain task playing withdifferent resources in quantity and quality

Previous project analysis and study is quite important, comparisonamong different options to choose the most convenient


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3.5 Resources

The resource management has impact in

This project (costs, delivery time)

Other projects (limited resources)

For every activity it has to be forseen:

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What kind of resources will be used In what amount

For how long

Resource Nature x Quantity x Time


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3.6 Precedences

The different project activities are not formally developedneither sequentially nor simultaneously

Sequentially: excessive delivery times

Simultaneously: some activities can only be started when other havefinished

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Establish the most logical and convenient connection betweendiverse activities to get the optimum cost/delivery times

Some of them are priorities

Some of them can be performed in different moments

Some of them must be sequentially connected


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3.6 Precedences

Again it is a difficult work: study the different alternatives inorder to opt for the best response

Precedence between certain activities is clear, but manyothers can be developed in one or another moment,

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availability

Standard specific techniques are used: PERT, GANTT, etc.


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3.7 Delivery Times and Costs

Now we have: Activities identified COST

Activities ordered in a logical way AND

Resources have been decided DELIVERY TIMES

Costs come from resources:

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uan y

Time of application

Unit costs of every resource is easy to get

but needed times of consumption are not so easy

ACTIVITY COST = TIME CONSUMED UNIT COST

PROJECT COST = ACTIVITY COST


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3.7 Delivery Times and Costs

Delivery time of each activity is calculated taking into accountthe employed resources

If we have also established the logical connection of activities:

TOTAL DELIVERY TIME = LONGEST PATH DEFINED BY ACTIVITIES & PRECEDENCES

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It is the Critical Path (PERT)

In certain projects all the activities are developed sequentiallyso delivery time is the addition of every individual activitydelivery time


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3.8 Targets and planning review

At the very beginning of the project (see project charter)the targets were defined

but there was not a detailed planning

Cost Time

Scope

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In the moment we make the detailed planning a conflictmay arise: Delivery times

Costs

(It may also enter in conflict with written contracts)


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This situation is more likely and more accused if the initialplanning was not made thoroughly

The acceptance of unrealistic compromises can come from themoment when the targets were negotiated, if there were:

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ommerc a press ng mpera ve

Client impositions

Bad project study

CONFLICT

PLANNING

RESOURCES

THE PROJECT CAN NOT BE MADE AS PLANNEDUnreachable targets

Expected delivery times and cost not reachableTHE PROJECT CAN BE MADE AS PLANNEDBut we lack the needed resourcesExpected dates are not reachable


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The way of solving both conflict types is different

This conflict situation is not extraordinary, it will happenfrequently, in different degrees of relevance:

Initial target definition is not so detailed as current one

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n a p ann ng respons e ro ec anager

During initial planning we may have not known some things that now

we do (new things that come)

Conflicts are sometimes difficult to solve, but they cancontribute to improve the project management

d l


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What to do when conflict arises?

Potential Actions:

Quit the project Extreme and exceptional

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Not very frequent

Non reimbursable costs are lost

Image is lost

Renegotiate targets with the client

Sometimes only fine tuning of initial targets

Sometimes hard negotiation

Reconsider the planning

Introduce modifications in the planning

3 8 T d l i i


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It is always advisable to do it before starting the project thanafter starting less cost elapsed

Activities precedence can be changed

Resources an be changed (quantity and time)

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We can play with different variables to get the most favorablecombination

3 8 T t d l i i


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In other words:

It is a mistake to consider that after the project detailed planning ifthere is no match with the initial planning it means that the targets

are set wrongly

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Look for alternatives changing planning variables: List of activities

Precedence of activities

Resources to be used Quantity of resources

Quality specifications

3 8 Targets and planning re ie


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The same approach can be taken if the conflict involvesresources:

Substitute one resource for another

Change the moment when the resource enters Subcontract external resources

Extend the resource quantity

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Try to increment the productivity of a resource

If we share the resources with other projects it can be evenmore complicated

Planning is essential because the projects are complex and theresources are limited

3 8 Targets and planning review


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TARGETS

DEMANDING

MULTIPLE

DIFFICULT

RESOURCES

LIMITED

COSTLY

RIGID

PLANNING

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Resources are: Limited: nobody has infinite resources

Costly: they always have a cost, even if it is an internal one

Rigid: affected by restrictions (e.g. experience, knowledge, speed,

holidays, sickness, maternal leaves, etc.)

3 8 Targets and planning review


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Planning is a compromise between targets and resources, it isunstable and we get there by iterations and concessions

Planning must be agile and also dynamic

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ATTITUDES

ANTICIPATION

COMMON SENSE

PROJECT PREPARATION AND PLANIFICATION IS KEY TO SUCCESS


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Questions & Answers

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CEESP Electrical Energy Project Management 3 Project Organization

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