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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
2
.
1.7 DELIVERY TIMES AND COST
1.8 TARGETS AND PLANNING REVIEW
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3. Project Organization
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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3. Project Organization
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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3. Project Organization
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:
35
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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3.8 Targets and planning review
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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