Project management organization definition,communication skills meaning in hindi,online summer courses for teachers 2012 epv days,positive changes cds - For Begninners

Contractor cannot begin the work until the Notice to Proceed is received – so Use the time between bid opening and contract award for detailed pre-project planning. Size of the contractor’s on-site project management organization is a function of the size and complexity of the project. Techniques for resource allocation management and resource levelling, resources may be limited or unlimited in nature from project to project.
This is a€?Project Organizationa€?, section 3.2 from the book Beginning Project Management (v.
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DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators. In developing the project organizational structure, the project manager considers the span of controlThe number of people reporting to a manager. The engineering manager can organize the engineering reporting structure so that the various engineering discipline managers would report to him or her.
Most projects have similar functions that are important to successfully managing the project.
The project sponsor is outside the day-to-day operations of the project and has the organizational authority to provide resources and overcome barriers for the project. Project managers often have the breadth of responsibility associated with corporate chief executive officers (CEOs). The function of the project manager can vary depending on the complexity profile and the organizational structure. Although the functional responsibilities of the project manager may vary, the primary role is consistent on every project.
In general, project controlsPlanning function and the function that tracks progress against the plan. Sometimes accounting functions such as payroll, budgeting, and cash management are included within project controls. The project controls team gathers this information from all the functions on the project and develops reports that enable each functional manager to understand the project plan and progress against the plan at both the project level and the functional level.
The approach to purchasing the supplies and equipment needed by the project is related to the complexity profile of the project.
A college in South Carolina chartered a number of projects to increase the energy efficiency of the college. More complex projects with greater procurement activity may have a procurement person assigned to the project. On the large mining project in South America, during the initiation phase of the project, the procurement department arranged for office space and supplies for the engineering teams in Canada, Chile, and Argentina and construction offices at the construction site in Argentina. On large, complex projects, the procurement team manages at least three types of relationships with companies doing business with the project.
The technical management on the project is the management of the technology inherent in the projecta€”not the technology used by the team to manage the project. A steel company in Indiana purchased a new coal injection technology that would improve the quality of steel, reduce the cost to produce the steel, and reduce air and water pollution.
On a construction project, the quality manager may test steel welders to assure the welders have the skills and that the welds meet project specifications. The project manager on smaller, less complex projects will have sufficient knowledge about these issues to coordinate with the parent organizationa€™s functional leaders. The South American mine project has major design work to accomplish in three different design offices: Vancouver, Santiago, and Argentina.
When the project construction activities started, project controls, procurement, and administrative resources moved from supporting engineering to supporting the construction activity. Key functions on a project include sponsor, project manager, controls, procurement, technical, quality, and administration. The project sponsor has the organizational authority to provide guidance and resources and can overcome barriers for the project.
The project manager is the project leader with broad responsibilities for all phases of the project and for meeting project goals and client expectations.
The project controls manager is responsible for controlling the project processes, including cost estimating and tracking, developing schedules, tracking progress against schedules, managing changes to the schedule or budget, and analyzing trends. The procurement manager is responsible for obtaining the services and materials needed to complete the project. The quality manager monitors the projecta€™s processesa€”not the quality of the product of the projecta€”and takes steps to assure they are done correctly and meet specifications. Materials or services whose quality is standardized and that are usually purchased based on lowest price are __________. Tracking costs and comparing them to the project budget is handled by the ___________ function. Checking to see that the work performed on the project is done consistently and up to specifications is managed by the ________ function. The number of people who report to a manager is referred to as the _____ __ ______ (three words).
Refer to the descriptions of the project functions and determine which manager would take care of each of the following problems. One of the project team members has filed a sexual harassment suit against another team member of equal rank. The computer software used to make a step improvement in the clienta€™s operations has a significant bug in it. The client wants to use higher-quality materials in the project than was originally agreed on. Your organization has announced budget cuts but you cannot afford to lose anyone at this crucial stage in the project. A contractor has complained that the procurement manager has a conflict of interest with a competing contractor.
Though the Cost Management Plan is a required part of Project Management Plan, unlike time and scope management, it is not listed as a part of formally defined cost management process. Maximum cap for cost expenditure allows project manager and members to allow variation for cost.
Life cycle costing is taking into consideration of the whole life of the product, and not just the cost of the project.
For example, a product costs $50,000 which has a very low maintenance cost ($5000) over its life period. Value analysis focuses on decreasing cost of the project without any degradation in scope and performance levels. Any risk related to cost such as procurement risk, cost management risk is termed as cost risk.
Variable cost: As understood by the name, these costs vary with the amount of work being done.
Direct Costs: The costs that can be directly attributed to the work done in the project is considered as Direct Costs.
Indirect Costs: The overhead items or costs incurred that cannot be apportioned to a specific project or activity and can be used for multiple projects are termed as Indirect costs.
Scope Baseline: Scope baseline includes the project scope statement, WBS and WBS dictionary.
Human Resources Plan: The system to reward project members, rates of labor required and number of resources (individuals) required for the project and their cost are arrived at by the human resource plan. Risk Register: Risk is an effective contributor to reduce time and money associated with the project.
Costs can be estimated using the methods that we have already learned in the Time Management Chapter i.e. Project management software can help in speeding up the calculations required to estimate costs. Resources can be internal human resources, vendors, consultants, suppliers, external technicians, among others. Reserve analysis involves identification of activities which have significant risks and determination of the total efforts (time and money) required to manage these risks if they occur. ROUGH ORDER OF MAGNITUDE (ROM) ESTIMATE: This estimate is generally made during project initiation phase. In the process, the project manager determines the amount of funds the organization needs to have available for the project by calculating the total cost of the project.
A project manager MUST perform risk management activities and include reserves (contingency and management) when estimating the total cost of the project. Comparison of cost baseline and cost budget is done by the project manager to parametric estimates, expert judgment or historical records for a sanity check. Control costs process is focused on controlling cost of the project as described in any other knowledge area in the control section.



Use of cost management plan; a cost management plan helps the project manager plan for controlling cost of the project. Use of Organizational process assets; Organization policies, procedures, tools or reporting formats related to controlling costs can be used. Measure costs; another important factor that the project manager must be completely involved in throughout the lifecycle of the project is measuring the project cost for variation from the baseline. The performance measurement baseline is a combination of scope, schedule and cost baselines. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms.
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For example, the structural, electrical, and mechanical engineering team leaders would report to the engineer manager.
The organization on the right creates two additional positions and reduces the span of control to thirty-seven and thirty-four, respectively. The project sponsor is typically a leader in the parent organization with an interest in the outcome of the project.
The project manager facilitates the start-up of a project and develops the staff, resources, and work processes to accomplish the work of the project. Defining and managing client expectations and start-up activities, developing the scope, and managing change are functions of the project manager.
The primary role of the project manager is to lead, to provide a vision of success, to connect everyone involved in the project to that vision, and to provide the means and methods to achieve success. On larger projects, accounting functions are typically separate because the accounting culture tracks expenses to the nearest penny, and cost estimating and tracking by project controls can often be off by hundreds and sometimes thousands of dollars.
On large complex projects, some project managers will assign project controls professionals to work within the major functions as well as the project management office. A small project with a low complexity level may be able to use the procurement services of the parent organization. This same South Carolina college retrofitted a warehouse to create a new training center for industry. The team is responsible for procuring the supplies and equipment (such as office supplies and computers) needed for the project team and the supplies and equipment (such as the training equipment) needed to execute the project.
As the design and engineering progressed, the procurement team managed bids for the major equipment and bids for the preparation of the construction site.
Commodities are items that can be bought off the shelf with no special modification for the project. Sometimes the partnership is legally defined as a partnership, and sometimes the success of each partner is so closely tied together that the relationship operates as a partnership.
The contract to design and construct the new plant was awarded to an engineering and construction company. On large projects or projects with a high degree of technical complexity, the quality is sometimes a separate function reporting to the project manager. On a training project, the quality manager may review the training curriculum and the qualification of the instructors to assure the training provides the knowledge and skills specified by the client. For example, people assigned to the project will get human resources (HR) support from the HR department of the parent organization. On more complex projects, the project may have an administrative manager responsible for coordinating the administrative functions of the projects.
The project organizational structure changed as the engineering manager and the engineering effort changed from primarily designing the project to supporting the construction effort, by answering construction questions and developing solutions to construction challenges. This is accomplished by purchasing commodities, managing contractors who provide services and products, and working with partners. How many additional employees were added to decrease the span of control of the engineering manager, and how was this accomplished?
The Develop Project management Plan in Integration Management involves creation of the cost management plan. Like other project management plans, even cost management plans requires proactive thinking.
An alternate product is available for $38,000 however, has higher maintenance cost amounting to $50,000 over the producta€™s life. A systematic identification of various functions, assignment of values to those functions and identifications of less costly resources and activities to be performed maintaining the performance levels is done in value analysis. This risk is not just covered in risk management and requires to be covered in all phases of the project. It helps in allowing the project manager to know what is in-scope and what is out-of-scope. The project schedule contains the list of activities, the allocated resources and the time when work will occur. This plan enables the project manager to keep the resources motivated to work achieving savings and still ensuring the cost of the project is controlled. The templates provided by these records help in executing these efforts faster and quicker. The expense of the project manager, status reports, change analysis, execution, etc are included in these costs.
One-point estimating, analogous estimating, parametric estimating, and three-point (PERT) estimating. The technique of bottom-up estimating involves estimation of costs involved at each activity or work package, rolling it up into control units and then finally to the overall project estimate.
These calculations could include direct, indirect, overhead, fixed cost calculations for several hundred activities. Costs estimated during early stages of the project have lesser accuracy and the ones estimated at later stages have higher accuracy. In this concept, the activity costs are rolled up into work package costs, work package costs are then rolled up into control account costs and control account costs are finally rolled up into project costs. If there are significant variances between the reference data and project estimates, the project manager needs to investigate and ensure that the estimates are correct. There could be situations where the funding is not available when it is required by the project. Project manager needs to reconcile the cost baseline and cost budget with these constraints. The efforts involved in determining budget process may lead to changes in other project management documents.
Prevention process involves identification the root-causes where high costs are involved and mitigating them. Earned value measures project performance against scope, schedule and cost baselines (performance measurement baseline). Initially specializing in plumbing systems for health related facilities, our single trade firm has expanded to complete Mechanical services in hospitality, sports venues, correctional facilities, educational facilities, and high rise residential market sectors. You may also download a PDF copy of this book (46 MB) or just this chapter (684 KB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline). On a larger, more complex project, the engineer manager may establish area team leaders and have the structural, electrical, and mechanical engineers report to an area team leader. As a leader in the parent organization, the project sponsor can provide input into the project scope and other documents that define project success. On some projects, the project manager may provide direction to the technical team on the project. Project control provides critical information to all the other functions of the project and works closely with the project manager to evaluate the cost and scheduling impact of various options during the life of a project.
The lack of definitive information necessitates the development of cost estimates within ranges that are often inconsistent with accounting practices. In an organization where project resources reside in various departments, the departments may provide the supplies and equipment each team member of the project may need.
Each department paid for the time, travel expenses, and supplies needed by the team member from their department. A procurement person was assigned to the project to manage the contract with the construction firm remodeling the space, the purchase and installation of the new training equipment, and the purchase of the supplies needed by the project team. On a typical construction project, the procurement team would rent a construction trailer, office supplies, and computers for the project team to establish a construction office at the construction site.
The procurement team managed the logistics associated with transporting large equipment from Europe, North America, and Asia to the job site in rural Argentina. These items are typically bid and the lowest prices that can meet the schedule of the project will win the contract. On the South American project, the project team partnered with an Argentinean construction company to access the local construction practices and relationship with local vendors. The technological challenges required to build a bridge to span a five-hundred-meter canyon are significantly different from those required to span a five-thousand-meter body of water.
No one on the engineering and construction team had experience with the coal injection technology. The project quality manager focuses on the quality of the project work processes and not the quality of the clienta€™s product.


On a drug development project, the quality manager may develop processes to assure the water and other raw material meet specifications and every process in the development process is properly documented. Salary, benefits, and HR policies for employees assigned to the project will be supported out of the HR department.
On larger, more complex projects, an administrative function may be established as part of the project team, with many of the functions assigning a resource to the project.
During the design stage of the project, the engineering manager in each engineering office is leading the work with project controls, procurement, and administration, each assigning resources to support the engineering activities at each location. The procurement effort changes from managing the bidding and contracting activities to managing the logistics.
Describe an example of a situation where the partnership could affect the complexity of the project.
Provide an example of a situation where this reporting relationship might increase the complexity of the project. It is important to note that the step of creating the cost management plan exists irrespective of where it is created. These ceiling numbers (maximum cap) are proactively thought through by the project manager in the cost management planning stage. As a project manager, would you prefer reducing the cost of the project by saving $12,000 (by buying the alternate product)? Cost expenditure can be controlled if the project team is aware of the timing on when to buy the product. The cost budget indicates the total money the organization should have allocated for the project. Hence, all the activities need to be planned in a time-phased manner and may be shown as an S-curve. Earned value measurement is better, because it integrates cost, time and the work done (or scope) and can be used to forecast future performance and project completion dates and costs.
The complexity profile of a project, the culture of the parent organization, the preferences of the project manager, the knowledge and skills of the team, and a parent organization with a project management office are examples of factors that influence the projecta€™s organization. For example, the project manager does not want all the engineers on a project reporting to the engineering manager and assigns senior engineers to report to the engineering manager with other engineers reporting to the senior engineers. If the project is geographically dispersed, with the engineering office staff in different cities working on the project, then structuring the engineering function by area provides better coordination and control (see Figure 3.1 "Decreasing Span of Control by Increasing Levels of Reporting"). The guidance and support from the project sponsor enhances the ability of the project to successfully meet the parent organizationa€™s objectives. The vice president was the project sponsor of the three or four most complex projects, and the president was the project sponsor only on projects with a high degree of political risk. Some projects are larger than major divisions of some organizations, with the project manager responsible for a larger budget and managing more risk than most of the organizational leaders.
On other projects, the technical leadership might come from the technical division of the parent organization. Separating these two functions allows each to operate within their own accuracy comfort zone.
Each team member continued to use the computers and administrative support in their department for project work. The procurement team would also purchase the concrete, rebar, steel, and other material needed to construct the building. After the completion of the project, the procurement team managed the deposal of project property. The procurement team assures the company that wins the bid can perform to the contact specifications and then monitors the progress of the company in meeting the projects requirements. The technological complexity of the project will influence the organizational approach to the project. The clienta€™s team understood the technology and provided guidance to both the project engineering and construction teams.
For example, if the project is to design and construct an automobile factory, the quality manager focuses on the project work processes and meeting the technical specification of the equipment installed by the project team.
The parent organization will provide accounting functions such as determining the cost of cash, taxes, year-end project reports, and property disposal at the end of the project. In all cases, the administrative function on a project is closely related to the legal and organizational responsibilities of the parent organization and close coordination is important. The project engineer manager assigned the engineering work based on the capabilities of the office and coordinates the work between offices. The other way that it can be controlled is when project expenditures are made in a time-phased manner. Thus, the ranges will be higher at the start of the project and will narrow down as project progresses. If the project estimate exceeds the constraints, the project manager must meet the stakeholders and explain the reasons of exceeding the constraints and also share options to reduce project costs. This approach to assigning project sponsors assured that each project had an organizational advocate that could address barriers and provide direction and resources. A mining company that builds a new mine in South Africa, an automobile manufacturer that creates a new truck design, and a pharmaceutical company that moves a new drug from testing to production are examples of projects that may consume more resources in a given year than any of the organizationa€™s operating divisions. The costs for this support was not included in the project budget nor tracked as a project expense. The procurement person reported to the project manager for better communication on what the project needed and when it needed it.
Engineers will specify the performance requirements of the equipment, and suppliers that have equipment that meets the requirements will bid on the project. The partner also designed and procured some large mining equipment on which the success of the project and the company building the mining equipment depended. The technological complexity for a project reflects two aspects: the newness of the technology and the teama€™s familiarity with the technology. The client owned the coal injection technology, and the engineering and construction team brought the project management technology.
The project quality manager is not responsible for the quality of the car the plant produces.
The procurement, project controls, and administrative leaders assign resources to support the work in each office. Or would you take into consideration the entire life cycle costing of the product and forgo $12,000 for a future saving of $45,000 for the company?
Else, an unrealistic budget is made available and it is considered to be a project managera€™s fault. The project sponsor, in this organization, developed a relationship with a senior representative of the client organization, reviewed monthly reports, and conducted thorough quarterly reviews. Equipment purchased by the project that was installed to reduce the energy consumption of the college was purchased through the college procurement department and charged to the project.
The procurement person participated as a member of the project team to understand and provide input into the costs and scheduling decisions. The key to success in managing commodity suppliers is the process for developing the bids and evaluating and awarding the contracts. The engineering team will assist in the evaluation of the bids to assure compliance with specifications. With this type of relationship, a senior manager on the project is assigned to coordinate activities with the partner, and processes are put in place to develop shared goals, align work processes, and manage change. The newness refers to the degree to which the technology has been accepted in the industry. If the plant functions to the defined project specifications, the quality of the plant output is the responsibility of the plant quality department, and it may take several months for the plant to refine the work processes to meet the design specifications of the car. For example, the project controls manager assigned a planner in each office to support the engineering manager in that office to develop and track the schedule. The procurement person reported to the college procurement manager for developing and implementing project procurement processes that met college procurement policies and procedures.
The more accepted the technology is in the industry usually means that more knowledge and experience will be available to the team. If an activity is to be executed on a project when the cost of purchasing the raw material is very high, the activity may need to be pre-poned or post-poned for the reasons to accommodate the surge in price.
Sometimes the long-term maintenance costs and reliability of the equipment may indicate a high price for the equipment. The key to success is the development of clear performance specifications, good communication with potential bidders to allow bidders to develop innovative concepts for meeting the performance requirements, and a bidding process that focuses on the goals of the project. The less familiarity the team has with the technology, the more energy and resources the team will expend on managing the technological aspect of the project.
For projects with high levels of project technology, a specialist may be hired to advise the technology manager.



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