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600-01 INTRODUCTION TO PROJECT MANAGEMENT PROJECT ORGANIZATION Introduction to Project Management © Enterprise Consultants International, Ltd. Page 1

Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

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Page 1: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

600-01

INTRODUCTION TO PROJECT MANAGEMENT

PROJECT ORGANIZATION

Introduction to Project Management

© Enterprise Consultants International, Ltd. Page 1

Page 2: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 2

STAFFING STRATEGIES

Projects are, by their nature, of limited duration.

How can the owner balance the needs of a project with staff preference for long-term positions with security and benefits?

maintain an internal “home group” (specialists with similar career interests who are managed centrally)

retain only a recruiting group to hire new staff for each project

© Enterprise Consultants International, Ltd.

Page 3: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 3

INTERFACES

Interfaces between individuals and organizations are the most difficult part of any project, and where loss of information and misunderstandings are most likely to occur.

© Enterprise Consultants International, Ltd.

Page 4: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 4

INTERFACES INCREASE THE COMPLEXITY OF PROJECT COMMUNICATIONS EXPONENTIALLY

© Enterprise Consultants International, Ltd.

Page 5: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 5

THERE ARE 4 MAIN ORGANIZATIONS INVOLVED IN A LARGE PROJECT

Owner/Client/Operator

Project Directorate& Engineer/Procure/Constructors (EPCs)

Government & Regulatory Groups

National and International Finance Groups

© Enterprise Consultants International, Ltd.

Page 6: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 6

THESE GROUPS HAVE MANY INTERFACES

© Enterprise Consultants International, Ltd.

Page 7: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 7

THE ENGINEER ALSO INTERFACES WITH DESIGN AND EQUIPMENT SUPPLIER ORGANIZATIONS

Russian Regulatory

Groups

© Enterprise Consultants International, Ltd.

Page 8: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

SIZE MATTERS!

Sheep $10 million project

Elephant$1 billion project

Very Small Project

Small Project Medium Project

Large Project Very Large Project

CAT SHEEP HORSE ELEPHANT WHALE5 Kg 50 Kg 500 Kg 5,000 Kg 50,000 Kg

< $1 million < $10 million < $100 million < $1 billion < $10 billion

Tools:Spreadsheet Primavera

Page 8© Enterprise Consultants International, Ltd.

Page 9: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

PROJECT INFORMATION SCALE

Sheep $10 million project

Elephant$1 billion project

Very Small Project

Small Project MediumProject

Large Project Very Large Project

CAT SHEEP HORSE ELEPHANT WHALE< $1 million < $10 million < $100 million < $1 billion < $10 billionEase of information manipulation& speed of flow

Consistency & accuracy of information flow

Information flow between disciplines, and to vendors

Information flow between project, owner, government, vendors, etc.

Information flow between multiple project teams

Page 9© Enterprise Consultants International, Ltd.

Page 10: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

PROJECT MANAGEMENT IS ABOUT MANAGEMENT OF INFORMATION

Sheep $10 million project

Elephant$1 billion project

Very Small Project

Small Project MediumProject

Large Project Very Large Project

CAT SHEEP HORSE ELEPHANT WHALEIssues:Ease of information manipulation& speed of flow

Consistency & accuracy of information flow

Information flow between disciplines, and to vendors

information flow between project, owner, government, vendors, etc.

Information flow between multiple project teams

Page 10© Enterprise Consultants International, Ltd.

Page 11: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 11

TYPICAL PROJECT ORGANIZATION CHART (SMALL PROJECT)

Project Manager

Engineering Supervisor

Procurement Supervisor

Construction Engineer

Cost Control

Engineer

Document Control

SupervisorHSE

Engineer

Project Team

© Enterprise Consultants International, Ltd.

Page 12: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 12

TYPICAL PROJECT ORGANIZATION CHART (LARGER PROJECT)

Governing Board

Owner’s Project Director

EPC Project Director

Engineering Supervisor

Process Engineering

Utility Engineering

Procurement Supervisor

On-Shore Procurement

Off-Shore Procurement

Construction Engineer

Quality Inspectors

Site Engineers

Planning & Cost Control Engineer

Planning Scheduling

Cost Control

Financing Supervisor

Budgeting

Accounting Group

Project Administrator

Document Control

Translators and Couriers

HSE Manager

Environmental Consultant

Project Team© Enterprise Consultants International, Ltd.

Page 13: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 13

TYPICAL PROJECT ORGANIZATION CHART (VERY LARGE PROJECT)

Project Directorate

Governing Board

Page 13© Enterprise Consultants International, Ltd.

Page 14: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Project Directorate

Page 14

TYPICAL PROJECT ORGANIZATION CHART (EXTREMELY LARGE PROJECT)

Project Directorate

Governing Board

Page 14© Enterprise Consultants International, Ltd.

Page 15: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 15

Owner / Client

Project EngineeringDirectorate

By Phase

It is important to include the approval and use of standards in the contract between Owner and Engineering Groups.

THE OWNER WORKS WITH ENGINEERING ORGANIZATIONS AS BELOW

© Enterprise Consultants International, Ltd.

Page 16: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 16

THE OWNER WORKS WITH LICENSORS

Owner / Client

Technology Licensor

By Phase

© Enterprise Consultants International, Ltd.

Page 17: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 17

THE OWNER WORKS WITH DESIGN INSTITUTES AND EPCS

Owner / Client

Design Institutes

By Phase

© Enterprise Consultants International, Ltd.

Page 18: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

Page 18

THE ENGINEER AND OWNER WORKS WITH SUPPLIERS

Owner / Client

Suppliers

By Phase

© Enterprise Consultants International, Ltd.

Page 19: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

A Phased Engineering ApproachProject Directorate Interfaces

Page 19© Enterprise Consultants International, Ltd.

Page 20: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

A Phased Engineering ApproachEPC (Engineer/Procure/Construct) Data Interfaces

Page 20© Enterprise Consultants International, Ltd.

Page 21: Introduction to Project ManagementProject Large Project Very Large Project CAT SHEEP HORSE ELEPHANT WHALE Issues: Ease of information manipulation & speed of flow Consistency & accuracy

PROJECT SCHEDULES MAY BE TIMED TO LEVEL RESOURCES

Page 21© Enterprise Consultants International, Ltd.