nuclear facilities construction project management
DESCRIPTION
Nuclear facilities construction project managementTRANSCRIPT
1
Valeriy Trofimov, Darya Pankova
Nuclear facilities
construction project
management
St.Petersburg
2012
2
JSC Atomenergoprom
Private Educational Institution of Continuing Professional Education
«ATOMPROF»
Valeriy Trofimov, Darya Pankova
Nuclear facilities
construction project
management
St.Petersburg
2012
3
Valeriy Trofimov, Darya Pankova. Nuclear facilities construction project management. –
SPb: Private Educational Institution of Continuing Professional Education «Atomprof», 2012. –
155p.
This workbook is offered as a resource for teaching postgraduate students the
implementation and project management of energy. The purpose is to provide the reader with
theoretical and practical advice on construction of nuclear power facilities using software and
hardware platform based on Oracle Primavera.
The book highlights such issues as Project Management Body of Knowledge (PMBoK)
using and Organizational Project Management Maturity Model (OPMMM) of Project
Management Institute (PMI) overview.
The book is written for postgraduate students, employees and managers, involved into the
launching of project organizational methods. It can be also used by students learning Project
Management and in the teaching of this course.
All rights reserved. No part of this book may be used or reproduced in any manner
whatsoever without written permissions, except in the case of brief quotations.
Recommended for publication by the methodological department of PEI CPE
«Atomprof».
Reviewers:
ISBN
Trofimov V., Pankova D. 2012
4
Introduction ..................................................................................................... 6
Subject matter 1 “Project management methodology” ................................... 7
Introduction ..................................................................................................... 8
Knowledge Structure Project Management ............................................ 8
Introduction to ICB IPMA ...................................................................... 8
Topic 1.1. Project management concept ................................................... 13
1.1.1. Basic notions: “Project” and “Project management” .................. 13
1.1.2. Project environment .................................................................... 17
1.1.3. Project stakeholders .................................................................... 21
1.1.4. PM organizational structures ...................................................... 23
1.1.5. Project structures ......................................................................... 35
1.1.6. Project life time ........................................................................... 41
Topic 1.2. Project management processes ................................................ 45
1.2.1. Project management processes ................................................... 45
1.2.2. Groups of project management processes .................................. 48
1.2.3. Processes in the area of project management knowledge ........... 59
1.2.4. Process interfaces ........................................................................ 69
Topic 1.3. Project risk management processes ......................................... 75
1.3.1. Risk identification ....................................................................... 75
Topic 1.4. Project management information system (PMIS) ................... 86
1.4.1. PMIS configuration ..................................................................... 86
1.4.2. PMIS based on Oracle Primavera software ................................ 96
1.4.3. PMIS organizational support .................................................... 104
Topic 1.5. NPP construction time management ...................................... 107
1.5.1. Managerial structure ................................................................. 107
1.5.2. Development of 1st level schedules .......................................... 112
1.5.3. Development of 2nd level schedules ....................................... 116
1.5.4. Development of 3rd level schedules ........................................ 119
Subject matter 2 Managing Projects in Oracle Primavera P6 Project
Management .......................................................................................................... 128
Introduction ............................................................................................. 128
2.1. Starting up ........................................................................................ 129
2.1.1. Primavera’s Interface ................................................................ 129
..................................................................................................................... 130
2.1.2. Opening a project. ..................................................................... 132
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2.2. Project settings ................................................................................. 134
2.3. Corporate data structure ................................................................... 135
2.3.1. Code structures .......................................................................... 135
2.3.2. EPS ............................................................................................ 137
2.3.3. OBS ........................................................................................... 137
2.3.4. Roles .......................................................................................... 138
2.3.5. Resources .................................................................................. 139
2.3.6. Calendar .................................................................................... 140
2.4. Project structure ............................................................................... 143
2.4.1. WBS .......................................................................................... 143
2.4.2. Activities ................................................................................... 144
2.4.3. Steps .......................................................................................... 144
2.4.4. Relationships ............................................................................. 145
2.4.5. Assignments .............................................................................. 146
2.5. GROUP, SORT AND FILTERS ....................................................... 147
2.6. REPORTS AND PRINT SETUP ..................................................... 151
2.7. ANALYSYS AND CONTROL ....................................................... 152
2.7.1. What-If ...................................................................................... 153
2.7.2. Fact ............................................................................................ 154
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Introduction
1st
year learning objective:
Give an idea of project management basics.
Explain to the trainees the main terms, basic notions and information on the
best practices of project management necessary for efficient work whatever
organizational form is used
Subject matter 1 “Project management methodology” is a theoretical course
supplemented with practical classes of the traditional course “Nuclear facilities
construction project management based on Primavera software” during which the
attendees obtain practical skills of project scheduling on the basis of Oracle
Primavera software and get acquainted with the practical implementation of project
management tasks as exemplified by LNPP-2 construction.
Subject matter 2 Managing Projects in Oracle Primavera P6 Project
Management
Tutorial materials are represented with a number of presentations in
Microsoft Power Point 2007, the rubrication and titles of which correspond to the
topics given above.
The programme has been developed by
Prof. Trofimov V., Dr. Eng.
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Subject matter 1 “Project management methodology”
Subject matter 1 “Project management methodology” is a theoretical
course supplemented with practical classes of the traditional course “Nuclear
facilities construction project management based on Primavera software” during
which the attendees obtain practical skills of project scheduling on the basis of
Oracle Primavera software and get acquainted with the practical implementation of
project management tasks as exemplified by LNPP-2 construction.
Requirements to the trainees: good computer skills, knowledge of MS
Office.
8
Introduction
Knowledge Structure Project Management
Introduction to ICB IPMA
In order to be professional, the discipline «Project Management» shall have
a code of rules and regulations determining the professionals’ work on project
management.
These requirements were determined by way of collecting, processing an
systematizing applied knowledge and experience in the area of the Project
Management.
International rules of project management specialists’ competence (ICB -
International Competence Baseline), developed by the IPMA - International
Project Management Association, contain the requirements on the knowledge,
skills, and personal characteristics of project managers and project team members.
ICB include main terms and notions, sum up advanced experience, skills,
functions, management processes, methods, techniques and tools generally used in
project management as well as special knowledge of innovations and their
implementation in certain project management.
ICB is not a manual or a formula book. ICB opens the way to knowledge,
experience and personal skills in the project management area.
ICB is the basis of all certification programs of national associations and
their certification centers ratified by the International Project Management
Association (IРМА).
Main Areas of the Project Management of ICB IPMA The ICB logo is a sunflower which was used, as a rule, for the unification of
national certification programs.
The sunflower petals show the main areas of project management.
• Core Elements (28)
1. Projects and Project Management
2. Project context
3. Project life cycle
4. Project appraisal
5. Project coal & Strategy
6. Project Success/Failure criteria
7. Standards & Processes
8. System approach & integration
9. Project Start Up
10. Work definition & structuring
11. Scheduling
12. Resources
13. Cost & Finance
14. Performance Measurement
• Additional Elements (14) 29. Information technologies in project
30. Standards and rules
31. Problem solving
32. Negotiations, business meetings
33. Permanent (parent) organization
34. Business processes
35. Human resource management
36. Organizational training
37. Management of change
38 Marketing
39. System management
40. Safety, health, environment
41. Legal aspects
42. Finance and accounting
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15. Project control
16. Project Close Out/Down
17. Organization
18. Information & Communication
19. Team Work
20. Leadership
21. Conflict Management
22. Personnel development
23. Configuration & Change
Management
24. Contract Administration
25. Risk Management
26. Quality Management
27. Safety, Health & Environment
28. Multi Project Management
Pic.1. 28 Core Elements
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Certification Validation Management Board Certification Validation Management Board (CVMB) is a commission for the
development and coordination of national association certification programs at the
international level.
Main attention was given to the certification program (ICB) contents, its
organization and certification procedures.
In 1998, IPMA approved a ratification system for a 4-level certification
program (4-L-C - Pure Level Certification), which became world known.
By February 1999, 17 countries signed the agreement with IPMA and 10
countries apply the international certification program.
ICB contains the following sections:
A. Introduction
B. Knowledge and Experience
C. Candidate Personal Attitude
D. Taxonomy
E. Standards and Guidelines, References
F. Literature
National Competence Baseline Each national association develops and adopts its own detail documentation
for the certification program and, first of all, national requirements on competence
(NCB - National Competence Baseline).
This documentation is ratified by IPMA for performing certification.
Thereby, national associations are given certain freedom for taking into
account national cultural features and achievements in the project management
competence area.
On the other hand, the unification performed by IPMA, takes into
consideration the requirements of companies and organizations operating at the
world market.
International Competence Baseline ICB contains 42 elements, determining knowledge and experience in the
project management (28 key + 14 additional elements), as well as +8 aspects
concerning candidate personal attitude and +10 aspects, determining general
opinion of the certified person.
IPMA requires that NCB should contain all the 28 key elements and at least
6 additional elements selected at the national association’s discretion.
Besides, NCB should also contain the sections reflecting the aspects
concerning personal attitudes and determining the general opinion of the candidate.
At the same time, approximately 8 additional elements of knowledge and
skills (about 20% of the 42 elements) may be eliminated or replaced with new
elements taking into consideration national features and achievements in the
project management competence area.
Some specific issues reflected in national association NCB were not included
in the number of elements of project management elements provided in ICB.
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Such elements are marked with italics in ICB .
These elements might serve as initial points for ICB further development and
widening.
The structure of NCB-SOVNET and ICB 1. Management objects
1. Project ►Projects and Project Management (1)
2. Program ► Management by Project (3)
3. Project Objectives and Strategies ►Project Objectives and Strategies (8)
4. Project Success and Failure Criteria ► Project Success and Failure
Criteria (9)
5. Project Structures ► Project Structures (12)
6. Project Phases and Life Cycle ► Project Phases and Life Cycle (6),
Marketing, Product Management (38)
7. Project Environment ► Project Context (5)
2. Project management subjects and tools 8. Project Stakeholders ► Project Context (5)
9. Permanent or Parents Organization ► Permanent Organization (33)
10. Project Team ► Teamwork (23)
11. Project Manager ► Teamwork (23)
12. Project Organization ► Project Structures (12), Project Organization 22)
13. Leadership ► Leadership (24)
14. Problem Solving ► Problem Solving (31)
15. Negotiations, Meetings) ► Negotiations, Meetings (32)
16. Information Technologies in Project ► Informatics in Project (29)
17. Standards and Regulations ► Standards and Regulations (30)
18. Legal Aspects ► Legal Aspects (41)
3. Project management processes 19. Project Management ► Projects and Project Management (1)
20. Management by Projects ► Management by Projects (3)
21. System Management ► System Management (39)
22. (Project Management Implementation ► Project Management
Implementation (2)
23. Project Start Up ► Project Start Up (10)
24. Project Development ► Project, Development and Appraisal (7)
25. Project Performance ► Project Performance (19)
26. Project Controlling ► Project Controlling (20)
27. Project Close Out ► Project Close Out - (11)
28. Project Scope Management ► Content, Scope (13), Configurations and
Changes (17)
29. Project Time Management ► Time Schedules (14) Resources (15)
30. Project Cost Management ► Project Cost and Finance (16), Finance and
Accounting (42)
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31. Project Quality Management ► Project Quality- (28) Standards and
Regulations (30)
32. Project Risk Management ► (IS) Project Risks
33. Project Human Resource Management ► Teamwork (23). Personal
development (35). Organizational Learning (36), Conflicts and Crises (26)
34. Project Communications Management ► Communications (25)
Information, Documentation. Reporting (21)
35. Project Contracts Management ► Procurement, Contracts (27)
36. Project Change Management ► Management of Change (37)
Configurations and Changes (17)
37. Project Safety Management ► Safety, Health and Environment (40)
38. Project Conflict Management ► Conflicts and Crises 126)
39. System Approach and Integration in Project Management ► System
Approach and Integration (4)
4. Project management background and tendencies of development 40. Project Management around the World
41. Project Management in Russia
42. Project Management in Transition Economy
43. Project Management in Future
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Topic 1.1. Project management concept
1.1.1. Basic notions: “Project” and “Project management”
Project Project – a temporary endeavor undertaken to create a unique product or
service.
Project is an undertaking for which human, material and financial resources
are arranged differently every time for performing the project tasks. The time and
costs for the project implementation are strictly limited and the project itself has a
standard life cycle (6).
Project is a complex of interconnected tasks, ensuring the achievement of
preset Project objectives (3) within the framework of established schedule and
allocated budget, as well as meeting other conditions and limitations.
Other Project attributes are novelty, integrity, legal conditions of its
implementation, the necessity to perform works in related areas of activities.
The variety of the projects implemented is very high. They may differ
drastically in terms of application area, configuration of scope (29), scale,
duration, stakeholders, degree of complexity, influence of results, etc.
Basic Notions An activity as the management object is considered to be a project when:
• it objectively has an integrated nature and, the analysis of the internal
structure of a whole set of task (operations, procedures, etc.) is of great
importance for its effective management;
• transitions from one task to another determine the main scope the activity
as a whole;
• achieving the activity’s goals is connected with serial-parallel performance
of all elements of this activity;
• limitations in terms of time, finance, material and labor resources are of
special importance for the work performance process;
• the activity duration and cost is explicitly dependent on the organization of
the whole set of tasks.
Definitions of “Project” 1) Webster’s Dictionary:
“Project (Engl.) – That which is projected or designed; something intended
or devised; a scheme; a design; an intention”.
2) USA, PMI Project Management Body of Knowledge :
“Project – certain undertaking (intention) with initially stated objectives
whose achievement determines the project close-out ".
3) English Association of Project Managers:
“Project is a separate undertaking (intention) with specified goals which
often comprise requirements on time, cost, and quality of the results achieved".
4) Germany, DIN 69901:
“Project is an undertaking (intention) which is, to a high degree,
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characterized by the uniqueness of conditions in their integrity, for example:
– determining the objective;
– time, finance, HR, and other limitations;
– delimitation from other intentions;
– project-specific organization of its implementation".
General Definition of Project
Project is a temporary, goal-oriented change of a specific system with
established requirements concerning the results, possible frames for means and
resources expenditures, and specific organization.
Project Management
Project Management Body of Knowledge, (PMI) Project Management (PM) is an art of administrating and coordinating
human and material resources during the project life cycle using state-of-the-art
management techniques and practices for achieving the results determined in the
project, in terms of the work scope and content, cost, time, quality, and
stakeholders’ satisfaction.
English Association of Project Managers Project management is a governance challenge of a project completion
timely, within the framework of an established budget, and in compliance with the
technical specifications and requirements
Project Manager is responsible for reaching these results.
Germany - DIN 69901 Project Management is an entity of:
• Governance tasks,
• Organization,
• Technique and
• Project implementation means.
Professor H. Roeshke Project Management - “straight interprofessional corporation of processes:
• planning,
• management and
• decision taking with
• Interprofessional task setting".
Project Management Project Management is the application of skills, methods, means and
technologies during a project implementation, with the aim of achieving or
exceeding the project stakeholders’ expectations.
15
Project Management constitutes planning, organization, monitoring and
controlling all the project aspects as well as the motivation of all of its stakeholders
with the aim of complete achievement of the project goals within the established
period of time and preset parameters.
Project Management may be more broadly defined as a professional,
creative activity oriented for achieving effective results by way of successful
implementation of projects as purposeful changes.
Project Management includes:
– A full set of tasks, organization, management techniques and
governance measures for providing the project implementation.
– Creation of a motivation and encouragement system for all the project
stakeholders for the project goals’ successful achievement within the
specified limitations and requirements.
Project Management Systemic Model The principle system model of the project management consists of three
main interconnected units: Management subjects; Management objects;
Management process.
Pic.2. Project Management Systemic Model
Main Attributes of a Project: 1. attribute of changes, as the main content of a project,
2. attribute of aim, limited in time,
3. attribute of project duration time limitation,
4. attribute of the project budget,
5. attribute of “limiting the required resources",
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6. attribute of “uniqueness",
7. attribute of “novelty",
8. attribute of “complexity",
9. attribute of “legal and organizational support",
10. attribute of “delimitation”.
1. The attribute of changes characterizes a goal-oriented transfer of a system
from existing condition to a desired one described in the terms of the project goal.
Pic.3. Attribute of changes, as the main content of a project.
2.The attribute of an aim limited in time characterizes the restrictions applied
during the project goal lifetime
3.The attribute of the project time limitation characterizes the restrictions
applied to the period of time necessary for the project implementation
4.Attribute of budget characterizes the fact that the project has a separate
budget
5. The attribute of the required resources limitation characterizes the
presence of a specification and schedule of the resources consumption
6.The attribute of uniqueness characterizes the impossibility to return to the
project start.
7.The attribute of novelty characterizes the presence of novelty (uniqueness)
of the project constituting parts and the presence of novelty (uniqueness) of the
project as a whole
8.The attribute of complexity characterizes the number of the project context
factors and the number of the project stakeholders
9a.The attribute of legal support characterizes the legal regulation of
interests and relations of all the project stakeholders
17
9b.The attribute of organizational support characterizes the project-specific
structure organization
10.The attribute of delimitation characterizes the presence explicitly
defined borders of the project scope and its interfaces with the outer environment
1.1.2. Project environment
Project environment
Pic.4. Project environment interaction
Project environment: external and internal one.
Pic.5. Project environment scheme
Distant project environment Political characteristics and factors:
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Political stability
Governmental support of the project
Nationalistic demonstrations
Crime level
Balance of trade with member-states
Participation in military alliances.
Economic factors:
National economy structure
Responsibility types and rights of property, incl. for land
Tariffs and taxes
Insurance guarantees
Inflation level and stability of currency
Bank system maturity
Sources of capital investments
Degree of freedom of private business and economic
independence
Market infrastructure maturity
Price level
State of markets: of sales, investments, production means, raw
materials and goods, workforce, etc.
Society – its characteristics and factors:
Conditions and standard of living
Education level
Liberty of movement, “entry-exit”
Labor legislation, ban on strikes
Public health and medicine, rest environment
Public organizations, mass media, TV
Public acceptance of the project
Laws and rights:
Human rights
Right for business activity
Proprietary rights
Laws and regulations on guarantees and privileges
Science and technology:
Fundamental and applied science development level
IT and computerization development level
Industrial and production technology development level
Energetic systems
Transport systems
Communications
Culture:
Literacy level
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History, cultural traditions, religion
Cultural needs: life support, job, rest, sport, etc.
Level of requirements to labor results and conditions quality
Natural and ecological factors:
Natural and climatic conditions: temperature, precipitation,
humidity, winds, sea level elevation, seismicity, landscape and
topography, etc.
Natural resources
Location and connection with transport networks
Quality standards on: airspace, water sources and top-soil
Sanitary requirements to environment
Law on environmental protection
Characteristics of tendencies and state of ecological systems:
air, water, soil.
Infrastructure characteristics and factors:
Transportation and communication means
Transport of goods
Computer networks and information systems
Power supply
Utilities
Raw materials and services
Sales network
Logistics and procurement
Industrial infrastructure
Support systems, etc.
Near project environment 1. The utility management determines the project goals and main
requirements as well as their adjustment procedure.
2. Financial sphere determines the project budget, its estimate and
sources of financing
3. Sales sphere is determined by customers’ decisions and competitors’
actions
4. Manufacturing sphere demands coordination of the requirements to
the project with the production means market capacities
5. Procurement sphere formulates requirements to the project based on
capabilities to provide with raw and basic materials and equipment at reasonable
prices
6. Infrastructure sphere formulates requirements to publicity, transport,
communications, information support, engineering support
7. Cleaning and utilization sphere formulates requirements to environment
protection and production waste utilization
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Pic. 6. Utility management overview
Internal environment 1.Managerial style determines psychological climate and atmosphere,
influences creativity and efficiency in the project team.
2.The project specific organization determines relations between the
project main stakeholders, rights, responsibilities and duties allocation and
influences the project implementation success.
3.The project stakeholders realize various interests during project
implementation, formulate their requirements and influence the project in
compliance with their interests, competence and degree of project participation.
4.The project stakeholders’ main interest is connected with obtaining an
income from the project implementation.
5.The project team main interest is connected with obtaining an income of
their activities during the project implementation; the team claim to receive their
part from the reserve fund.
6.Communication methods and means determine completeness, reliability
and efficiency of information exchange between the stakeholders.
7.Project economic conditions determine its main cost characteristics.
8. Project social conditions are characterized by: life conditions; salary
level; public utilities; conditions of work and labor protection; insurance; social
welfare.
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1.1.3. Project stakeholders
Project stakeholders Project Stakeholders are physical persons and
organizations directly involved in the project or whose interests may be affected
during the project implementation
Pic.7. Types of project stakeholders
1. Initiator – the party that is the author of the project main idea, its
preliminary justification and proposals concerning the project implementation.
Practically, any of would-be stakeholders may act as an initiator but the business
initiative on the project implementation should, ultimately, come from the project
Customer found.
2. Customer – main party interested in the project implementation and
project aim achievement. Would-be owner of the project results. Customer defines
the main requirements to the project, provides for the project financing from its
own or engaged funds, signs contracts with main performers and bears
responsibility for these contracts, manages the interfaces among all the
stakeholders or delegates this function to the main performer, bears responsibility
for the whole project to the law and society, etc.
3. Sponsor – party investing in the project, for example by way of
credits. Sponsors’ aim is to maximize profits for their investments from the project
implementation. If Sponsor and Customer are not one and the same person, then
usually banks, investment funds and other organizations act as sponsors.
4. Project Manager – physical person who is delegated the authorities for
managing all the works under the project: planning, control and coordination of all
the stakeholders’ works. He/she is personally responsible for the project
implementation.
5. Project Team – specific organizational structure, an aggregate of physical
persons and legal entities and their groups united for the purpose of the project
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implementation. Created for the project implementation period. Project Team main
task - performing all functions of activity coordination and reconciling the
interests of all stakeholders for achieving the project goals.
6. Contractee (General Contractee) – party or project stakeholder who
enters the relations with the Customer and assumes responsibility for performing
works and services under the contract – it may be the whole project or its part.
7. Subcontractee – enters contract relations with Contractee or higher level
Subcontractee. Bears responsibility for performing works and services in
accordance with the contract.
Project Team Typical Organization Chart
Pic.8. Project team typical organization chart
8. Designer – legal entity, performing, under the contract, design and survey
works within the project framework. Enters contract relation with project General
Contractor or directly with Customer.
9. General Contractor – legal entity whose offer was accepted by the
Customer. Responsible for performing works in accordance with a contract. Selects
and signs agreements with subcontractors for performing separate works and
services..
10. Suppliers – subcontractors performing various kinds of supplies on
contractual basis – materials, equipment, transport means, etc.
11. Licensors/Licensing organizations – organizations issuing licenses for
the right of land ownership, bidding, performing specific works and services, etc.
12. Authorities – party, meeting its interests by way of getting taxes from the
project stakeholders, putting and maintaining ecological, social, and other public
and state requirements in connection with the project implementation.
23
13. Land Owner – legal entity or physical person who owns the plot of land
involved in the project.
14. Final Product Manufacturer of the project performs the operation of
created assets and manufactures the final product.
15. Final Product Consumers - legal entities or physical persons who are
buyers and user of the end product, defining the requirements on the product
manufactured and services rendered, forming the demand in them.
16. Public Organizations – layers of population joined by interests.
17. Competitor – party that is always uninterested in the project successful
implementation.
1.1.4. PM organizational structures
General principles of creating PM organizational structures: I. Organizational structure compliance with the system of stakeholders
relations.
II. Organizational structure compliance with the project scope.
III. Organizational structure compliance with the environment requirements.
Organizational structure designing is a complicated, interdisciplinary, poorly
structured and formalized activity.
In this activity, it is possible to highlight several principles the use of which
provides for creating an effective organizational structure of a project.
I. Organizational structure compliance with the system of stakeholders’ relations
1. «Dedicated» organizational structure.
2. «Management by projects».
3. «Overall project management».
4. «Dual» organizational structure.
5. Complex organizational structures:
а) management – customer’s function;
b) management – General Contractor’s function;
c) management – managing company function;
d) management – managing company function, and work performance
is provided by Gen. Contractee (performer).
Pic.9. «Dedicated» organizational structure
24
Pic.10. «Management by projects»
Pic.11. «Overall project management»
Used for internal projects These types of org. structures: «dedicated», «management by projects» and
«overall project management» are used in the following cases:
General contractee of the project is one organization, which takes over the
project management functions and performs the whole scope or main part of
the project executing activities;
Customer, general contractor and investor is one company
These are so-called «internal» projects which are implemented by certain
structural subdivisions of the company for other subdivisions of the same
company.
25
For example, in the project of new product creation:
Customer may be Sales Department,
General contractor — Production and Design Department, and
Investor — Development Dept., or the enterprise as a whole.
Pic.12. «Dual» organizational structure
5. Complex organizational structures: In case when more than two different companies are involved in the project
having different relevant functions in this project, it is possible to implement so-
called «complex» organizational structures of project management having 4
principal variations:
а) project management is implemented by the customer;
b) project management is implemented by general contractor;
c) project management is implemented by a specialized management
company;
d) project management is implemented by a management company,
and work performance is provided by general contractor
Pic.13. а) management – customer’s function
26
Pic.13. b) management – gen. contractor’s function
Pic.13. c) management – management company function
27
Pic.13. d) management – management company’s function, and works are
performed by gen. contractor
Conclusion: The above classification of organizational structure schematics reflects the
effect on the project stakeholders’ interaction system on the project management
structure.
This description highlights «external» connections of the organizational
structure and the project management structure with its stakeholders.
Such description is called «organizational structure schematics» — as
opposed to the organizational structures themselves that are described below from
the point of view of their internal scope.
II. Organizational structure compliance with the project scope Project scope puts requirements on the project optimal organizational
structure from the point of view of the project internal structure, i.e., from the point
of view of division of labor, downloaded in the organizational structure.
Organizational structure classification principles depending on the
project scope 1. vertical (functional-administrative) division of labor (here, not traditional
considering an organization by hierarchical levels is meant, but labor division
depending on participation in various vertical processes of management and
administrative functions) and
2. horizontal (project-target) division of labor (activity structure of an
organization employees depending on their participation in horizontal,
technological processes of work performance is understood)
28
Pic.14. Vertical and horizontal organizational structures
PM organizational structure classification: 1. Functional organizational structures
2. Project -target organizational structures
3. Matrix organizational structures
4. Divisional organizational structures
5. Mixed (hybrid) organizational structures
Pic.15. Functional organizational structures
Project-target structure exists when all the activities of an organization are
focused at executing a specific project, reaching a specific target. Thereby, all other
structural forms are either not presented, or have a support meaning – subdivisions
of headquarters, support subdivisions, committees, etc. Project structures usually
have an explicit border with “parent” organization and interact with it at the
highest level, or function separately from the project stakeholders’ structures.
29
Pic.16. Project-target organizational structures
Though the teams and intermediaries are quite useful and help to settle
drawbacks of functional structures, they are of limited use.
For adequate horizontal integration, vertical functional structure should be
superposed with project-target structure, making, this way, a matrix organizational
structure.
Pic.17. Matrix organizational structures
30
Comparison of project management organizational structures
The following structures may be considered divisional:
structures oriented to client (consumer) type;
Regional organizational structures
Structures oriented to various market sectors.
Pic.18. Divisional organizational structure
5. Mixed organizational structures
31
Pic.19.1. «Partial» matrices
Pic.19.2. Project-functional
Pic.19.3. Project-functional with intermediaries
32
Pic.19.4. Project-functional with teams
III. Organizational structure compliance with the environment requirements
The more flexible and dynamic the outer environment is, the more flexible
and adaptive the project organizational structure must be.
The more stable and predictable the outer environment is, the more
effectively is the use of «rigid», mechanistic, bureaucratic organizations.
Any organizational structure may be implemented in variants having
different possibilities of adaptation. Everything depends on the degree of the staff
activity regulation (quantity and detailing existing rules/procedures of work
performance, business-process description details and organizational behavior) as
well as the degree to which the employees observe this documented order.
This feature may be defined as «structuring level». Various organizational structures in conceptual aspect incline to different
structuring levels, which allows to arrange them in a common «mechanistic —
organistic» continuum.
33
Pic.20. Structuring level: «Mechanistic ↔ Organistic» structure
34
Pic.21. Organizational structure in 2D space «integration direction — structuring
level»
Kinds of project management organizational structures depending on the
project stakeholders’ interrelations, project scope and activity structuring level
Kinds of project management organizational structures depending on the project
stakeholders’ interrelations, project scope and activity structuring level
35
Pic.22. Algorithm of project management organizational structure development
and creation
1.1.5. Project structures
Project Structure – project element composition and their interconnection.
The Project structure is a well-shaped hierarchical project decomposition
into constituent parts, necessary and sufficient for efficient planning and
monitoring of the project progress.
The project structure should comply with the following rules:
1. The complex of elements of each level of the project decomposition
hierarchy should represent the project as a whole. The decomposition
levels differ in the level of detail;
2. Based on the first rule, the total values of the project characteristics
(scope of work, cost, required resources, number of performers, etc.)
at each level of the project structure should coincide;
3. The lower level of the project decomposition should contain such
work elements based on which the values of work characteristics can
be determined that will be necessary and sufficient for the project on-
line control.
Based on the project detailed data, one can obtain aggregated data for any
level of the project structure.
Project structure Structure – is, first of all, links, and then the project
36
composition
The number of project structural model levels is not more than 8
Pic.23. Overall project structure diagram
The lower detalization level in the project hierarchy is called Work
Breakdown Structure (WBS)
Types of project structural models 1. The model meeting the hierarchy conditions, ranking and resources is
called a goal tree
2. The project organization structural chart is called an organization tree
3. Based on the project structural model and the organization tree, a
matrix of responsibility allocation is created
4. Based on the project structural model, the goal tree, the organization
tree and the matrix of responsibility allocation, a project network model is built
37
5. Based on the project structure and project element cost data, a cost
tree is created
6. The project procurement structural diagram is called a project
resource tree
7. The aggregate of negative event probabilities during the project
implementation is described with a risk tree
Pic.24. Types of project structural models
Goal tree. 1.A hierarchical chart meeting the following requirements:
Hierarchical pattern; Ranking; Resources.
38
Pic.25. Goal tree
2. The project organizational chart is called organization tree
Pic.26. Organization tree
3. Based on the project structural model and the organization tree, a matrix of responsibility allocation is built
39
I – autocratic decision; ! – personal liability; D – participation in a collegial
decision w/out power to sign; P – planning; О – organization; C – control; Т –
performing.
Matrix of responsibility allocate
4. Based on the project structural model, the goal tree, the organization tree and the matrix of responsibility allocation, a project network model is built
Pic.27. Project network model
40
5. Based on the project structure and project element cost data, a cost tree is created
Pic.28. Cost tree
6. The project procurement structural diagram is called a project resource tree
Pic.29. Project resource tree
7. The aggregate of negative event probabilities during the project
implementation is described with a risk tree
41
Pic.30. Risk tree
1.1.6. Project life time
Pic.31. Typical example of costs and engaged staff number during the project life
cycle
42
Pic.32. Usual phase sequence in the project life cycle
Pic.33. Relations among project and product life cycles
Pic.34. Interfaces among project stakeholders and the project
43
Pic.35. Complete set of the project development steps makes a whole life cycle
Pic.36. Project Life Cycle Phases
Life cycle
• Life cycle consists of phases.
• Project phases include stages.
• Project stages consist of steps.
• Project steps include activities (works).
• Works consist of processes
• Processes include procedures
• Procedures consist of operations
• Operations include elements
44
Pic.37. Life Cycles of Organization and Project
Life Cycle Phases of IS
The life cycle first stage is called concept.
The life cycle second stage is called development.
The life cycle third phase is called implementation.
The life cycle fourth phase is called closing (dismantling).
PMIS Creation Project at the Development Phase includes the following
stages:
• Feasibility study - FS,
• Terms of reference -TOR,
• Technical design - TT,
• Working design –WD ,
• Implementation – Imp,
• Functioning analysis –FA.
PMIS Terms of Reference Stage includes the following steps:
• Object preliminary survey, diagram of information flows and information
tables.
• Research and development works, scientific report, IS model.
• Outline design, outline design, modeling results, IS parameters and
characteristics.
• Terms of reference processing, ToR issued in accordance with GOST.
45
Topic 1.2. Project management processes
1.2.1. Project management processes
The principle system model of the project management consists of three
main interconnected units: Management subjects; Management objects;
Management process.
Pic.38. Project Management Systemic Model
Project Processes
Projects consist of processes.
Processes are “series of actions giving a result".
Project processes are performed by people and in general are divided into
two main categories:
1. Project management processes - describe, organize and complete the works
under the project. The project management are applicable to most of the
projects, most of the time.
2. Product-oriented processes – specify and create a project product. The
product-oriented processes a typically defined by a project life cycle for the
project and vary by application areas.
The project management processes and the product-oriented processes
overlap and interact through
For example, the scope of the project aim cannot be defined if there is no
basic understanding how to create a product.
46
Pic.39. Deming Cycle “Plan-Do-Check-Act “
Pic.40. Project Management Processes
47
Pic.41. Compliances between Project Management Processes Groups and Deming
Cycle Elements
Pic.42. Project Management Processes
48
Pic.43. Project Borders
1.2.2. Groups of project management processes
Pic.44. Groups of Project Management Processes
Project management Processes
Process groups Project management processes may be arranged in five groups, one or more
processes in each:
1. Initiation process group – project or phase authorization
2. Planning process group – description and specification of aims and selection
of the best ways from alternative directions of actions, for achieving the
goals the project is undertaken for
3. Implementation process group – coordination of human and other resources
for the purposes of the plan implementation
4. Monitoring and control processes - ensuring the aim achieving, with the aid
of monitoring and measuring the project progress on a regular basis for
determining deviations from the plan and taking corrective actions, if
necessary.
49
5. Completion processes group – formal acceptance of the project or a phase
and its proper completion.
Initiation process group
Planning process group
Monitoring and
control processes
Implementation
process group
Completion
processes group
(arrows show
information flows)
Pic.45. Process groups
Processes of Interaction
Within each group of processes, individual processes are interconnected with
by inputs and outputs.
Based on these connections we can describe each process in their own terms:
• Inputs – documents or documented elements which shall be implemented.
• Tools and methods – mechanisms applied to inputs with the purpose of
creating outputs
• Outputs - documents and documented elements which are results of the
processes.
Groups of Project Management Processes Initiation - authorization of the project or its phase as part of project aim
management.
50
Pic.46. Initiation process group
51
Planning process group
Planning is the most important process in the project because the project
implies the implementation of actions which have been performed earlier.
As a result, there is a relatively large number of processes within this group.
Nevertheless, the number of processes does not mean that the project
management is, primarily, planning – the scope of planning shall be commensurate
to the project goals and the developed information comprehensiveness.
Planning is an ongoing effort within the whole life cycle of the project.
52
Pic.47. Planning process group
Main Processes A number of planning processes have clear dependencies which require
performance in a specified order in most projects.
For example, works should be determined prior to scheduling or their cost
estimation.
These main planning processes may be repeated several times at any phase
of a project.
They include:
• Goal planning – development of a written approval of goals as the basis for
further project solutions.
• Goal determining – dividing the main jobs under the project to smaller,
easier controllable components.
• Work determining – identification of specific works to be performed with the
aim of creating various products under the project.
• Work sequence – identification and documentation of interactive
dependencies.
• Work duration assessment – evaluation of the number of work periods
necessary for individual jobs completion.
• Scheduling – analysis of work sequence, work duration, and resource
requirements with the aim of project schedule developing.
• Risk management planning – decision concerning the approaches to be used
for risk management in the project/
• Resource planning – determining the resources (staff, equipment, materials,
etc.) to be used to perform the works under the project.
53
• Cost assessment – development and assessment of the resources required
forthe completion of works under the project.
• Budgeting – allocation of all cost assessment to individual works.
• Project plan development – obtaining the results from other planning
processes, with further placing them into a logically consistent document.
Additional Processes Interrelation among other planning processes are more dependent on the
project nature.
For example, in a number of projects they can be insignificant or non-
recognizable risks up to the completion of planning, and the team realizes that the
cost and schedule goals are exceptionally aggressive and involve significant risks.
In spite of the fact that the additional processes are performed periodically
and on an as-needed basis, they should not be considered optional.
They include:
Quality planning – identification of quality standards corresponding to the
project and how they could be met.
• Organizational planning – identification, documenting, and determining the
roles, responsibilities, and reporting under the project.
• Team selection – selection of human resources required for the work under
the project/
• Communication planning – determining the informational and
communication needs of the project participants: who and to what extent
will need information (and what kind of information), and in what way it
will be received.
• Risk identification – determining risks which normally affect the project, and
documenting characteristics of each risk.
• Risk quality analysis – performing a quality analysis of risks and
determining the rating of their impact to the project goals.
• Risk quantity analysis – measuring a probability and impacts of risks and the
evaluation of their impact to the project goals.
• Risk response planning – developing procedures and methodologies for
increasing the possibilities and reducing dangers for the project goals from
risks.
• Procurement planning – determining of what, how much and when to
deliver.
• Proposal planning – documenting product requirements and identification of
potential sources.
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Implementation process Group
Pic.48. Implementation process Group
Implementation processes include main and additional processes:
• Project plan implementation – implementation of the project plan by
executing the works included in it.
• Quality guarantee – assessment of the project general efficiency on the
regular basis for ensuring that the project will meet corresponding quality
standards.
• Team development – development of individual and team skills/
competences for the project efficiency enhancement.
• Information distribution – making accessible the information necessary for
the project participants on a regular basis.
• Proposals – receiving corresponding prices, costs, offers or proposals.
• Source selection – selection among potential suppliers.
• Contract administration – managing the interrelations among suppliers.
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Monitoring and control process group
Pic.49. Monitoring and control process group
Project effectiveness should be controlled and measured on regular basis
with the aim of identification of deviations from the plan.
Deviations may be inside control processes in various areas of knowledge.
When significant differences are found the plan specification can be
performed as a repetition of corresponding processes of the project planning.
For example, an erroneous date of work completion may require
specification of the current plan, overtime works, or a solution on alternatives
between the budget and schedule aims.
Controlling also includes the performance of preventive actions for
preventing possible problems.
Controlling process group includes main and additional processes:
• Control changes of goals – controlling changes in the project goals.
• Schedule control – controlling changes in the project schedule.
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• Cost control – controlling changes in the project budget.
• Quality control – monitoring specific project results, with the aim of
determining their compliance with quality standards and identification of
ways of eliminating causes of unsatisfactory characteristics.
• Report on efficiency – collection and distribution of on the information on
the performance. It includes the state report, progress determining, and
forecast.
• Risk monitoring and control – following up the identified risks, monitoring
residual risks and identification of new risks, provision of risk plan
execution and evaluation its effectiveness for risk reduction.
Group of completion processes
Pic.50. Group of Completion Processes
Following main processes:
• Contract close-out – close-out and remuneration for the contracts including
the settlement of any open items.
• Administrative close-out – creation, collection, and distribution of
information for formalizing a phase or a project including the project
evaluation and lesson learned for using in future projects or phases
57
Pic.51. Interaction of Process Groups in the Project
58
59
1.2.3. Processes in the area of project management knowledge
Pic.52. Project management overview
60
Pic.53. Project integration management overview
61
Pic.54. Project scope management overview
62
Pic.55. Project time management overview
63
Pic.56. Project cost management overview
64
Pic.57. Project quality management overview
65
Pic.58. Project human resource management overview
66
Pic.59. Project communication management overview
67
Pic.60. Project risk management overview
68
Pic.61. Project procurement management overview
69
1.2.4. Process interfaces
Product-Oriented Processes
Pic.62. Classifier of the Project Final Goals (Products)
Pic.63. Classifier of the Project Final Goals (Products)
Classifier of the Project Life Cycle Phases
Pic.64. Project Implementation Life Cycle
70
Informational Processes
Project management processes acc. to knowledge areas
Pic.65. Knowledge areas
71
Pic.66. Project management areas
Classifier of Project Management Life Cycle
Initiating
processes
Planning
processes
Monitoring and
control processes
Executing
processes
Closing
processes
(arrows show
information flows)
Pic.67. Project management lifecycle
72
Pic.68. The Deming Cycle
Project Management Process Classifier
Pic.69. Project management process classifier
73
Pic.70. Classifier of “Integration Management” Process
Belonging to “Initiation” process group
74
Pic.71. Structure of Information on a Project. Main equipment
Pic.72. The Deming cycle and project life cycle
75
Topic 1.3. Project risk management processes
1.3.1. Risk identification
Project management place in decision making cycle
Pic.73. Project management place in decision making cycle
Decision making is performed:
o In the conditions of certainty
100% certainty of an event occurrence
Exact plans, effective solutions
«certain uncertainty»
o In the risk conditions
the probability of an event occurrence as well as its influence to the
project is known
«certain uncertainty»
o In the conditions of certainty
The probability of an event occurrence is unknown, and
The event itself is not determined
«uncertain uncertainty»
Company risk management is aimed at maximization of condition certainty
at making decisions.
Notions: Risk and Project Management
76
Pic.74. Risk and Project Management
Risk – a value of possible losses/ profits in case of a risk event occurrence
Risk management – aggregate methods, techniques and measures allowing to
predict the risk event occurrences and take measures to their preclusion or
reduction of such event negative consequences
In the design activity interior and exterior environment, there always exist
causes (risk sources) that can lead to an undesirable event occurrence
(occurrence possibility), which can have a negative impact on an activity
results (possible loss size).
Risk management is aimed at the minimization of losses due to an
undesirable event.
The basis for risk management decision making is risk assessment –
characteristics showing how the risk extent is connected with the probability
of the undesirable event occurrence, which causes this loss.
Classification of Causes of Negative Event Occurrence
77
Pic.75. Causes of project risk occurrence
Characteristics of Negative Events
Characteristics of Loss Extent
78
Risk Management Processes in accordance with PMBoK
Pic.76. Risk Management Processes in accordance with PMBoK
1. Selection of an approach, planning and performing project risk
management operation
2. Determining what risks can influence the project, and documenting their
characteristics.
3. Risk arrangement in accordance with their priority for further analysis and
summing up the probability of their occurrence and influence to the project.
4. Qualitative analysis of identified risk potential influence to the project
general goals.
5. Developing possible variants and actions contributing to the enhancement
of favorable possibilities and decreasing dangers for the project aims achievement.
6. Following up the identified risks, monitoring residual risks, identification
of new ones, performing risk response plans and their efficiency assessment
during the whole life cycle.
79
Express-Assessment of Negative Event Occurrence Risk
Risk express-assessment is based on the calculation and assessment of risk
index
Risk index us an indicator of possible loss sizes in the points defined by
"Probability - Loss" Matrix.
R = Pq * Iq where R – risk index (points);
Pq - risk occurrence probability, in accordance with classification (points);
Iq - loss size, in accordance with classification (points).
Risk Index Evaluation
Risk evaluation – decision on the risk influence level and degree, taken on
the basis of risk index analysis.
Risk evaluation technique with the help of risk index R is as follows :
"Probability - Loss" Matrix
Losses
Pro
bab
ilit
y
80
Project Risk Management Techniques
Main methods of:
1. integrated
2. continuous, and
3. extended management
Pic.77. Specific Risks of Project Implementation
81
Schedule Risk Management 1. Works with unknown durations
Event 1. failure to meet the work completion
dates because the performers lack
experience in such work performance.
The main problem in such task planning
is that their duration is not known in
advance as there is no experience in
their performance
Management method 1. It is recommended to change the
project plan in such a way that the
duration prolongation should not tell on
the project completion deadline or
important stages/works completion
deadlines. It would be desirable to
extend the planned duration of these
works to pessimistic values and
calculate the plan taking into account
this duration upgrade. In addition, it is
possible to include additional work for
employees' training to the work
schedule prior to performing works with
unknown duration.
82
2. Works with unknown durations
Event 2 . failure to meet the work completion
dates because the performers lack
experience of performing new/similar
works or because of too optimistic
assessment of the work duration by the
performer.
Similar situation may arise due to
Project Manager fault, assigning
as much time for the work
performance as he thinks fit
(based on the project time
restriction) without asking advice
of a performer.
Management method 2. It is recommended to perform an
analysis of all works from the schedule
that have an unreally short duration. If
works are found in the plan that have
unreasonably short terms, then such
works' duration should be additionally
discussed with would-be performers
Mandatory agreeing the terms
based on the work performance
duration calculation made by the
performer, is recommended
3. Works with unknown durations
Event 3. failure to meet the work completion
dates. Cause – presence in the schedule
of too long works due to their poor
detailing. Without the work detailing, it
is difficult to estimate the labor cost of
such works and possible resource
loading; therefore, the inclusion of works
with long duration to the work schedule
leads to the increase of a possibility of
their completion deadline failure
Management method 3. It is recommended to screen out
works with large duration and detail
them
4. Works with a large amount of resources
Event 4. failure to meet the work completion
dates. Presence of works too
complicated and requiring a lot of
resources in the schedule occurs due to
their poor detailing. Without the work
detailing, it is difficult to estimate the
labor cost of such works and possible
resource loading; therefore, the
inclusion of works requiring a lot of
resources to the work schedule leads to
the increase of a possibility of their
completion deadline failure.
Management method 4. It is recommended to screen out
works with large duration and detail
them
5. Works with a large amount of dependencies
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Event 5. failure to meet the work completion
dates. The more dependencies a work
has, the higher the risk is that its
performance will be delayed because
one of its predecessor works is not
completed in time. It is especially
dangerous if a job on the critical path
has several predecessors
Management method 5. It is possible to mitigate risks by
increasing scheduled duration of one or
more predecessor works due to their
earlier beginning (if possible).
To decrease the risk by way of planned
duration of task increase if the project
duration restriction allow to do that
6. Works with a external dependencies
Event 6. failure to meet the work completion
dates. Works may depend on events
external to the project, which do not use
project resources and are not subject to
planning.
Management method 6. It is recommended to perform such
work analysis and include in the
"Project Risk Response Plan" measures
to mitigate the impact of such risks to
the project
Control of Resource risks 1. Use of inexperienced employees
Event
1. Involvement of a recently hired
employee (without experience of using
him) increases the risk of failure of
performance time, since it is unknown
whether it can cope with the tasks.
Management method
1. It is necessary to determine works
where inexperience employees are
engaged and describe the risks of their
use. Perform the analysis and mitigate
the risk, e.g., by extending such works
duration
2. Resources with overtime job
2. Failure to meet work completion date
due to employees' fatigue
2. Decrease of overtime work share by
way of working time shift, increase of
work efficiency, informational support
level, and engaging additional resources
3. Employees with unique skills
Event
3. Use of an employee having unique
skills may lead to the project failure in
case the resource becomes unavailable
(illness, firing)
Management method
3. Defining the list of employees with
unique skills, determining a risk level,
and developing measures for its
minimization to be included in "Project
Risk Response Plan"
4. Materials with single suppliers
4. Material supply from the only source 4. Defining a list of unique suppliers,
84
may cause a failure of the project dates
due to supply delays
determining a risk level, and developing
measures for its minimization to be
included in "Project Risk Response
Plan"
Budget Risk Management 1. Increase of some work scope
Event 1. Due to an unfavorable set of
circumstances (implementation of a risk
event) a project work (a number of
works) scope may increase, which will
cause cost growth
Management method 1. Forming a risk fund within the project
budget. Use the Company risk fund
2. Increase of work duration
2. If the work cost is proportional to
their duration, the increase of work
performance will lead to the
proportional increase of the project cost.
2. Forming a risk fund within the project
budget. Use the Company risk fund
Project Risk Monitoring Actions for risk monitoring and control include:
1. Generating and analysis of reports on identified risk management.
2. New risk identification
3. Project stakeholders' regular meetings on risk management.
Aims of the meetings are :
1. "Project Risk Response Plan" execution analysis.
2. Verification of known risk relevance.
3. identification of new project risks.
4. Planning in-depth analysis of certain risks in connection with new
circumstances.
5. Correction of plans for various risks response.
6. Developing variants of new risk responses.
7. Developing and approval preventive actions for avoidance/ minimization of
risks
Results of the project risk monitoring and control measures are as follows:
1. Solutions on corrective actions concerning risks.
2. Solutions/requests on project changes.
3. Solutions on non-scheduled works as measures of risk response.
4. Solutions on reserve use.
5. Addition to the identified risk list.
85
6. Solutions on risk priority changes.
7. Solution on risk new or repeated analysis.
8. Solution on "Project Risk Response Plan" change
9. Supplementation of a risk database
86
Topic 1.4. Project management information system (PMIS)
1.4.1. PMIS configuration
IS Scope One of the main IS properties is the possibility to divide it to subsystems,
which has a number of advantages, from the point of view of its development and
operation, including:
– Simplifying the IS system development and upgrading as a result of
developer groups specialization in subsystems;
– Simplification of produced subsystems introduction and supply in
compliance with the work performance sequence;
– Simplification of IS operation due to specialization of a subject area
workers.
Usually, functional and support systems are highlighted.
Functional subsystems of an IS provide information for certain activities of
an economic system (enterprise) characteristic for this economic system structural
subdivisions and (or) management functions.
The integration of functional subsystems into a united system is reached
through the creation and functioning of support subsystems, such as informational,
program, mathematic, technical, technological, organizational and legal, and HR
subsystems.
IS Functional Subsystems IS functional subsystem is a set of economic tasks with a high degree of
information exchanges (links) among the tasks.
Functional subsystem scopes are to a great extent determined by an
economic system features, its industry classification, form of ownership, size,
enterprise activity nature.
IS functional systems may be built on various principles:
– subject;
– functional;
– problematic;
– mixed (subject-functional)
Solution of Functional Subsystem Tasks
Management
levels
Functional subsystems
Marketing Production Logistics Finance
Strategic New products
and services.
Research and
development
Production
capacities.
Selection of a
technology.
Material
sources.
Commodity
forecast
Financial
sources.
Selection of
tax payment
model.
87
Tactical Sales
quantities
analysis and
planning
Production
programs
analysis and
planning
Purchase
quantities
analysis and
planning
Cash flow
analysis and
planning
Operative Clients’ orders
processing,
invoicing and
billing
Production
orders
processing
Warehouse
operations .
Purchase
orders
Book-
keeping
IS Structure acc. to Functional-Subject Principle
Pic.78. IS Structure acc. to Functional-Subject Principle
88
IS Support Subsystems
Pic.79. IS Support Subsystems
IS Functional Structure
89
IS Informational Support
IS Mathematic Support
90
IS Technical Support
IS Organizational Support Organizational support (OS) is an aggregate of means and methods of
production organization and management in the context of an IS introduction.
Aim of the organizational support is :
• Selection and setting management tasks;
• Analysis of the management system and ways of its upgrading;
• Developing solutions on the IS - personnel interface;
• Management tasks introduction.
The organizational support comprises work performance methodologies,
requirements on documentation processing, job descriptions, etc.
Staffing Support • staffing support is a set of means and methods for personnel organization
and training in the work with IS.
• Aim of the staffing support is the support of the IS operability and the
possibility of its further development.
The staffing support comprises:
• training plan and training session schedule;
• work programs for the disciplines learned;
• methodological support in the form of textbooks, books of tasks, etc.;
• text programs for lecture courses and practical lessons;
• technical aids for training and their operation manuals, etc.
91
IS Linguistic Support
IS Process Support Process support (PS or EDP – Electronic Data Processing) of an IS
corresponds to the IS division to subsystems by process stages of various
information types processing:
– Initial information;
– Organizational and directional documentation;
– Process documentation and drawings ;
– Data bases and knowledge bases;
– Scientific and technical information, GOSTs and technical conditions,
legal documents and files.
EDP of developed IS’s includes subsystems:
1.OLTP (On-Line Transaction Processing);
2.OLAP (On-Line Analytical Processing).
OLAP-technologies provide:
– Data analysis and modeling in on-line mode;
– Work with subject oriented data storages (DS)
– Implementation of free-hand enquiries,
Formation a subject area knowledge system, etc.
IS creation Process Information system creation process is described with the following
hierarchy:
• Life cycle,
• Phases,
92
• Stages ,
• Steps,
• Works,
• Processes,
• Procedures,
• Operations
• Elements.
Company introducing project management methods and means should:
• Rearrange the company organizational structure;
• Develop and approve procedures of business-processes of project
management in the company;
• Develop a set of scientific and technical documents (regulations);
• Carry out training of project managers and work group members.
• Perform the project management in PMIS only
• Introduce an effective control system for project planning and support.
Project management is efficient if:
– Business-process descriptions are relevant;
– Documentation support is relevant;
– Strict control of adherence to standards is performed;
93
– Managerial effect by the control results is effective and inevitable;
– Company staff undergoes regular training and certification;
– Project management is a fundamental principle;
Project Management Office Functions
• Methodological — upgrading PMIS use;
• Analytical — project planning and implementation efficiency
analysis;
• Archive — information storage;
• Infrastructural — PMIS process control;
• Control — project and resource pool monitoring;
• Communicative — information exchange among the stakeholders
PMIS Tasks
• Developing a schedule of project implementation without taking into
account resource limitation;
• Developing a schedule of project implementation taking into account
resource limitation;
• Determining a critical path and time reserves of project operation
performing;
• Determining project demand in financing, materials and equipment;
• Determining the distribution in loading time of renewable resources;
• Analysis of risks and schedule planning taking the risk into account;
• Project performance accounting;
• Analysis of work performance progress deviations from the planned
progress and prediction of the project main parameters.
PMIS Features
• Function distribution by roles;
• Hierarchical structures support;
• Control of resource limitation in multi-project environment;
• Information exchange in real time mode;
• Visualization of information presentation;
• Readiness to integration (1с, AtomSmeta, CAD systems…)
Known Systems
• MS Project Professional (developed by Microsoft)
• Time Line (developed by Time Line Solutions)
• Primavera Project Management (developed by Primavera inc.
representative in Russia – PM SOFT)
• Open Plan - developed by Welcom Software Technology
• Spider Project (developer representative in Russia – “Spider Management
Technologies” company
PMIS provides for:
• Developing basic calendar plan of the project.
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• Developing alternative calendar plans of the project (”what if”)
• Input of actual information on the project progress
• Control of project planning and executing progress.
• Visual comparing of actual work schedule with the basic plan
• Project plan Corrections.
• Maneuver of resources.
• Possibility of remote access of managing projects to PMIS project base.
• Control of the involved resources loading.
• Keeping an electronic file of the project and forming the project reporting
system.
Pic.80. PMIS Scope and Structure
95
Understanding a project as a structured (informational) object complying
with logical arguments and formal rules, is the basis for project management
professional methods.
96
1.4.2. PMIS based on Oracle Primavera software
Pic.81. Resources and activities intreraction
Structures
Pic.82. Project structures
97
Project documents
Pic.83. Project documents
Project documents (any files and references)
Pic.84. Project documents (any files and references)
98
Structure of projects
Pic.85. Projects structure
Pic.86. Resources structure
99
Pic.87. WBS structure
Activiries of the project
Pic.88. Activities of the project (MS Project)
100
Pic.89. Activities structure
101
Pic.90. Projects, WBS, activities and resources hierarchies
Control by projects
• Unit of control by PMIS means;
• Any design data in specialized reports;
• Any degree of detailing;
• All data in one base => trust to the data;
• "Semaphores" for managers
Notifications on the indicators
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Variants of project plan execution progress control:
Pic.91. Variants of project plan execution progress control
103
Report forms
Pic.92. Reports
104
Pic.93. Project indicators setup window
1.4.3. PMIS organizational support
Templates of PMIS Managerial Documents Files of templates for PM.
Sets of templates included in compound documents described in PMBOK:
1. Initiation documents,
2. Project documents,
3. Scope basic plan,
4. Project management plan,
5. Basic execution plan,
6. Project schedule,
7. Schedule data ,
8. Human resources management plan,
9. Procurement documents.
PM knowledge areas.
Sets of templates for 9 knowledge areas described in PMBOK:
1. Project integration management,
2. Project scope management,
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3. Project time management,
4. Project cost management,
5. Project quality management,
6. Project human resources management,
7. Project communication management,
8. Project risk management,
9. Project procurement management.
Project management processes.
Sets of templates for 5 main PM processes:
1. Initiating processes,
2. Planning processes,
3. Executing processes,
4. Monitoring and controlling processes,
5. Closing processes.
Pic.94. PMBoK usage
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Pic.95. PMIS documentation scope
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Topic 1.5. NPP construction time management
1.5.1. Managerial structure
The role structure of schedule development organization is meant to
illustrate the main interfaces during the schedule development and updating.
• Below one can find brief descriptions of the role structures of the Customer-
Developer and General Contractor respectively as well as description of
basic business- processes of schedule development and updating conditional
upon their filling with current and reliable data in the shortest time.
• The Customer-Developer/ General Contractor interaction procedure during
Level 3 schedule development and correction is considered; a list of
documents to be developed or corrected by the Customer-Developer or
General Contractor as appropriate in order to provide for the efficient
application of Level 3 schedule as an NPP construction project management
tool.
Customer-Developer’ role structure
Customer-Developer’s main internal role groups • Customer-Developer’s management (NPP construction project general
management on the part of the Customer-Developer),
• Customer-Developer’s PMO (Support of NPP construction project schedule
development methodology based on Primavera, control of schedule
development and updating by General Contractors, supply of report forms
on up-to-date schedules to the NPP construction project manager, delivery of
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schedule reports to other Customer-Developer’s services),
• NPP construction project manager on the part of Customer-Developer (NPP
construction project day-to-day management on the part of the Customer-
Developer, organization of interaction with other Customer-Developer’s
services).
Role of an NPP construction project manager on the part of Customer-Developer
An NPP construction project manager on behalf of the Customer-Developer
has the following responsibilities in the process of an NPP construction project
schedules:
1. NPP construction project schedules development control.
2. NPP construction project schedules coordination with the General
Contractor and the Customer-Developer’s management.
3. Making decisions on NPP construction project schedules amendment.
4. Approval of a Report on risks and problems to be laid before the
management which should be documented.
5. Arrangement of an informational exchange with the Customer-Developer’s
services.
6. Control of information publication and dissemination based on NPP
construction project schedules.
Role of the Customer-Developer project management office manager An NPP construction project office manager on behalf of the Customer-
Developer has the following responsibilities in the process of an NPP construction
project schedules development and updating:
1. NPP construction project schedules development coordination.
2. Management of support and development of the uniform NPP construction
project schedule development methodology based on Primavera.
3. Check of the schedules received from the General Contractor for compliance
with the requirements of the uniform NPP construction schedule
development methodology based on Primavera.
4. Regular analysis of an NPP construction project current state on the basis of
the up-to-date schedules.
5. Preparation of decisions on NPP construction project schedules amendment.
6. Coordination of reports preparation on the basis of NPP construction project
schedules in compliance with the standard accepted by the General
Contractor and also with the Government Contract requirements.
7. Supporting the NPP construction project schedules handover from the
General Contractor to the Customer-Developer in line with the procedure
approved by both parties.
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Role of a Customer-Developer Methodologist The Methodologist of the Customer-Developer has the following
responsibilities in the NPP construction project schedules development and
updating :
1. Support and development of the uniform NPP construction project
schedule development methodology based on Primavera.
2. Quality control of the schedule development by both the Customer-
Developer and General Contractor specialists.
Role of the Customer-Developer’s Planner The Customer-Contractor Planner has the following responsibilities in the
NPP construction project schedules development and updating :
1. Interaction with the Customer-Contractor methodologist in the area of the
NPP construction project schedules development.
2. Making amendments in the schedules based on the current information.
3. Preparation of reports on the basis of NPP construction project schedules in
compliance with the NPP construction project schedule development
methodology based on Primavera and also with the requirements of the
Customer-Contractor management and the NPP construction project
manager from the Customer-Contractor.
General Contractor’s role structure
General Contractor’s main internal role groups • The General Contractor management (Overall NPP construction project
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management by the General Contractor),
• The General Contractor project management office (PMO) (Support of the
NPP construction project schedule development methodology– supplements
to the Governmental Contract, schedule development and updating
organization, interaction with the Customer-Developer services in charge of
the NPP construction project schedules on the part of the Customer-
Developer),
• Engineering&Design (EAD) unit (Implementation of design and engineering
work),
• Material and Technical Resource delivery unit (Implementation of material
resources procurement),
• Construction&installation unit (Implementation of construction and
installation operations - CIO),
• Commissioning unit (Implementation of commissioning work),
• Control unit (Regular delivery of current data on the works in progress).
Explanatory notes to the diagram • In each role group, the roles of the schedule development and updating
process participants are emphasized.
• Temporary work groups (teams) routinely organized for the development of
the schedule various parts for various periods of Level 3 schedule life cycle,
are highlighted in color.
• The development team consists of a PMO representative (methodologist in a
work stream) and representative(s) of a functional unit responsible for the
work stream.
• The functional unit representative provides the initial data and enters them
into CNP, and the methodologist of a work stream coordinates this work,
recommends using the most suitable for the current situation methods and
means and also controls the work implementation in compliance with the
existing standards.
Role of an NPP construction project manager on behalf of the General Contractor
An NPP construction project manager on behalf of the General Contractor
has the following responsibilities in the process of an NPP construction project
schedules development:
1. NPP construction project schedules development control.
2. NPP construction project schedules coordination with the General
Contractor Management.
3. NPP construction project schedules coordination with the Customer-
Developer on demand or by the General Contractor Management
order.
4. Making amendments in the schedules based on the current
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information.
5. Bringing up at the General Contractor and Customer-Developer
management level of problems and risks associated with the NPP construction
project schedules implementation, if such cannot be eliminated by the General
Contractor himself. The report on risks and problems to be laid before the
management should be documented.
6. Control of information publication and dissemination based on NPP
construction project schedules.
Role of the General Contractor project management office manager An NPP construction project office manager on behalf of the General
Contractor has the following responsibilities in the process of an NPP construction
project schedules development and updating:
1. NPP construction project schedules development coordination.
2. Management of support and development of the project management
standard accepted by the General Contractor .
3. NPP construction project schedules coordination with the NPP construction
project manager from the General Contractor.
4. Coordination of a regular analysis of an NPP construction project current
state on the basis of the up-to-date schedules.
5. Preparation of decisions on NPP construction project schedules amendment.
6. Coordination of reports preparation on the basis of NPP construction project
schedules in compliance with the standard accepted by the General
Contractor and also with the Governmental Contract requirements.
7. Supporting the NPP construction project schedules handover from the
General Contractor to the Customer-Developer in line with the procedure
approved by both parties.
Role of a Methodologist of a work stream The Methodologist of a work stream has the following responsibilities in the
NPP construction project schedules development and updating :
1. Interaction with the specialists of the functional units in the area of the NPP
construction project schedules development for his work stream.
2. Development of methods and means mostly appropriate for the work with a
schedule for his work stream, and training of the functional unit specialists
in their application.
3. Quality control of the schedule development by the functional unit
specialists.
4. Regular analysis of an NPP construction project current state on the basis of
the up-to-date schedules for his work streams.
5. Work cost expertise in case of the working documentation unavailability.
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Role of a General Contractor Planner The General Contractor Planner has the following responsibilities in the NPP
construction project schedules development and updating :
1. Interaction with methodologists of work streams in the area of the NPP
construction project schedules development in terms of mutual agreement of
a work stream schedules.
2. Making amendments in the schedules based on the current information.
3. Compilation of reports on the basis of NPP construction project schedules in
compliance with the standard accepted by the General Contractor and also
with the Government Contract requirements.
Role of a Specialist of a work stream The Specialist of a work stream has the following responsibilities in the NPP
construction project schedules development and updating :
1. Interaction with a methodologist of a work stream in the area of the NPP
construction project schedules development for his work stream.
2. Filling of the NPP construction project schedules with data relevant for his
work stream.
Role of a Work Supervisor The Work supervisor has the following responsibilities in the NPP
construction project schedules development and updating:
1. Regular delivery of reports on Level 3 schedule work completion in the
format accepted by the General Contractor.
1.5.2. Development of 1st level schedules
Schedule levels
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Pic.96. Schedule levels
Level 1 schedule
1.Purpose
• Provide State Customer and Customer-Developer with actual and
trustworthy summary information on the NPP unit construction project
current status for making decisions concerning required time for reaching
key milestones of the project
• Provide visual presentation of the NPP unit construction project at the
meetings of State Customer and Customer-Developer
• Provide the Federal Target Program (FTP) actual condition
2. Scope
• WBS in accordance with the overall summary estimate (OSE) structure and
operational control (OC) objects.
• Works, describing global kinds of work for each OC object construction
from the point of view of each global work commencement and completion
and cost in basic and current process
• Milestones of the NPP unit construction project described in State Contract
used to control the project current status to control the State Contract
conditions observing by the Parties
3. Basic work definition
Work is an aggregate of interconnected actions belonging to one global
work for OC object construction:
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• characterized by the cost in basic and current prices,
• the cost of which can be unambiguously attributed to one cost item -
construction and installation operations (CIO), Equipments, or Other.
4.Users
Management and members of headquarters and meetings at the State
Customer and Customer-Developer level
5. What can be controlled
• Planned and actual terms of achieving all milestones in the NPP unit
construction;
• Planned and actual terms of beginning and completion, sequence of
performing global works for each OP object construction;
• Planned and actual cost of global works for each OP object construction in
basic and current prices.
6.Planning period
• Level 1 schedule is developed once for the whole NPP unit construction
period
• Permitted tolerance of determining the dates for separate operations
commencement and completion is 6 calendar weeks
7.Actualization period
• Monthly after the Level 3 schedule actualization
In case the Level 3 schedule is unavailable or incomplete the Level 1
schedule may actualized based on the 2nd
level schedule or based on expert
judgment.
8. Life cycle
• The first version of the Level 1 schedule is developed by General Contractor
on the basis of rules and standards and expert judgments and submitted to
State Customer and Customer-Developer within the scope of Technical
Design.
• The second version of the Level 1 schedule is developed by General
Contractor on the basis of the Level 3 schedule after State Contract
conclusion whereupon it is submitted to Customer-Developer.
• The Level 1 schedule is actualized by Customer-Developer based on the
Level 3 schedule information.
9. Introduction of changes
• Changes to the Level 1 schedule are introduced on the basis of decisions
made by headquarters and meetings of the State Customer and Customer-
Developer level
• Changes to the Level 1 schedules are introduced by the Customer-Developer
employees on the basis of the Level 3 schedule data.
115
116
Pic.97. Level 1 schedule
1.5.3. Development of 2nd level schedules
Level 2 schedule
1. Purpose
• Ensure timely planning and executing subject tasks within the framework of
NPP unit construction project in case of the Level 3 schedule unavailability.
2. Scope
• WBS in accordance with the requirements of each part of the OC object
construction sub-project and for each kind of activities.
• Works, describing:
– contractor organizations’ on-site activities in terms of commencement
and completion terms, cost in basic and current prices, contractor
organizations’ profile, physical amounts in accordance with individual
requirements to each operation and each activity,
– list of WD sets and terms of its issuance and approval to provide for
CIO executing,
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– scope and terms of commissioning documentation (CMD) issuance to
provide for operations for the power unit commissioning,
– terms of MTS delivery to ensure the CIO executing. Special attention
to be given to prolonged manufacturing cycle (PMC) and top-priority
deliveries
• NPP unit construction milestones
Dependencies among operations.
3. Basic CIO definition
CIO in part of main buildings and structures is an aggregate of interrelated
operations for the construction and/or finishing of building structures:
– performed continuously throughout the period limited by
commencement and completion dates,
– belonging to one type of work,
– aimed at achieving a result measured by one physical amount
corresponding to the work type,
– characterized by one profile of a contractor company,
– performed by one contractor company with a corresponding profile,
– performed in accordance with the requirement of one set of drawings,
– cost of which is calculated based on one local cost estimate,
– cost of which may be unambiguously attributed to the CIO cost item.
CIO in terms of auxiliary buildings and structures replicates the 1st level
schedule works.
4. Users
• Administration and subdivisions of General Contractor,
• Direction on Development of Rosenergoatom Concern,
• Rosenergoatom concern subdivisions on construction site,
• Members of headquarters and meetings at the level of State Customer and
Customer-Developer, contractors and suppliers’ administration included
5. What can be controlled
• Planned and actual terms of NPP unit construction project milestone
achievements
• Planned and actual terms of commencement and completion, sequence of
operations in terms of Engineering&Design (EAD), CIO, MTR
procurement (in particular, PMC), Commissioning
• Planned and actual physical amounts in accordance with the list
• Planned and actual cost in basic and current prices
6. Planning period
• Level 2 schedule is developed sequentially along with new information
appearing and/or issuing subject tasks.
• During the first version development , Level 2 schedule in developed in the
scope sufficient for detailed planning of first priority operations and
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preliminary planning of further operations.
• In the case when necessary initial data are not sufficient during the Level 2
schedule development, the Level 2 schedule may be issued with an
incomplete data set. In this case, General Contractor must provide
Customer-Developer with an official justification of the impossibility to
introduce certain kind of data to the Level 2 schedule, at the current moment
and/or to a preset date, and define the conditions under which this kind of
data can be introduced to the Level 2 schedule later.
7. Actualization period
• Weekly, on the basis of General Contractor on-site supervisor’ s data
• Monthly, based on completed work protocols generated by General
Contractor and approved by Customer-Developer.
8. Life cycle
• Level 2 schedule is developed by General Contractor based on expert
judgment or design and estimate documentation (DED) and specified
throughout its issuing. Each version of the Level 2 schedule is passed over to
the Customer-Developer.
• The Level 2 schedule is actualized by General Contractor employees.
• The actualized Level 2 schedule is passed over to the Customer-Developer
monthly.
• In case of the Level 3 schedule availability, the Level 2 schedule is not
used.
9. Introduction of changes
• Changes to the Level 2 schedule in terms of scope and operation
technological sequence are introduced on the basis of decisions made by
headquarters and meetings of the General Contractor level
• Changes to the Level 2 schedule are introduced by General Contractor
employees on the basis of DED and/or contractor organizations’ data and/or
General Contractor administration decisions
• Changes to the Level 2 schedule must lead to the Level 1 schedule changes
only in accordance with a procedure agreed by State Contract parties. If the
Level 2 schedule changes lead to the Level 1 schedule changes they must be
approved by Customer-Developer
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Legend
• Colors show temporary working groups (teams) formed on a routine basis
for developing various parts of the schedule in different periods of the Level
3 schedule life cycle.
• A developing team consists of PMO representative ( methodologist for a
certain direction) and a functional unit representative(s) responsible for the
direction.
• The functional unit representative provides initial data and inputs them to
calendar network plan (CNP), and the methodologist for a direction
coordinates this work, recommends the use of the techniques and means
most adequate for the current situation, and controls the work performance
against valid standards.
1.5.4. Development of 3rd level schedules
Level 3 schedule
1. Purpose
• Ensure monthly-weekly planning and controlling of works performed by
companies participating in the project of NPP unit construction
• Provide coordination of activities of the companies participating in the
project of NPP unit construction
• Provide the process of subject planning and reporting with regular and
trustworthy data
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2. Scope
• WBS in accordance with the requirements of each part of the operational
control (OC) object construction sub-project and for each kind of activities.
• Works, describing :
– contractor organizations’ on-site activities in terms of commencement
and completion terms, cost in basic and current prices, labor efforts,
contractor organizations’ profile, physical amounts in accordance
with individual requirements to each operation and each activity,
– list of WD sets and terms of their issuance and approval to provide
for CIO executing,
– scope and terms of commissioning documentation (CMD) issuance to
provide for operations for the power unit commissioning,
– MTR delivery terms in order to provide CIO execution.
• Milestones of NPP unit construction
• Dependencies among operations.
3. Basic CIO definition
Work is an aggregate of interconnected actions for constructing and/or
finishing building structures:
– performed continuously throughout the period limited by
commencement and completion dates,
– belonging to one type of work,
– aimed at achieving a result measured by one physical amount
corresponding to the work type,
– characterized by one profile of a contractor company,
– performed by one contractor company with a corresponding profile,
– performed in accordance with the requirement of one set of drawings,
– cost of which is calculated based on one local cost estimate,
– cost of which may be unambiguously attributed to the CIO cost item.
4. Users
• Administration and subdivisions of General Contractor,
• Rosenergoatom Concern, Direction on Development,
• Rosenergoatom concern subdivisions on construction site,
• Members of headquarters and meetings at the level of General Contractor,
contractors and suppliers’ administration included
5. What can be controlled
• Planned and actual terms of achieving milestones of the NPP unit
construction project
• Planned and actual terms of beginning and completion, sequence of work
executing in part of Engineering &Design (EAD), construction and
Installation operations (CIO), material and technical resource procurement
(MTR delivery), commissioning works.
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• Planned and actual labor required for the work execution including those
with the separation to contract companies’ profiles and Contractors
• Planned and actual physical amounts in accordance with the list
• Planned and actual cost of works in basic and current prices
• Actual availability of working forces on site in the previous periods, with
the breakdown for profiles and contractors
6. Planning period
• Level 1 schedule is developed once for the whole NPP unit construction
period and revised sequentially along with DED development.
• When the Level 3 schedule first version is developed, it has a scope
sufficient for detailed planning of the first priority works and preliminary
planning of further works.
• In the case when necessary initial data are not sufficient during the Level 3
schedule development, the Level 3 schedule may be issued with an
incomplete data set. В In this case, General Contractor must provide
Customer-Developer with an official justification of the impossibility to
introduce certain kind of data to the Level 3 schedule, at the current moment
and/or to a preset date, and define the conditions under which this kind of
data can be introduced to the Level 3 schedule later.
7. Actualization period
• Weekly, on the basis of General Contractor on-site supervisor’ s data
• Monthly, based on completed work protocols generated by General
Contractor and approved by Customer-Developer
8. Life cycle
• Level 3 schedule is developed by General Contractor based on design and
estimate documentation (DED) and specified throughout its issuing. Each
version of the Level 3 schedule is passed over to the Customer-Developer
• The Level 3 schedule is actualized by General Contractor employees.
• The actualized Level 3 schedule is passed over to the Customer-Developer
monthly.
9. Introduction of changes
• Changes to the Level 3 schedule in terms of scope and operation
technological sequence are introduced on the basis of decisions made by
headquarters and meetings of the General Contractor level
• Changes to the Level 2 schedule are introduced by General Contractor
employees on the basis of DED and/or contractor organizations’ data and/or
General Contractor administration decisions
• Changes to the Level 3 schedule must lead to the Level 1 schedule changes
only in accordance with a procedure agreed by State Contract parties. If the
Level 3 schedule changes lead to the Level 1 schedule changes they must be
approved by Customer-Developer
122
Legend
• Colors show temporary working groups (teams) formed on a routine basis
for developing various parts of the schedule in different periods of the Level
3 schedule life cycle.
• A developing team consists of PMO representative ( methodologist for a
certain direction) and a functional unit representative(s) responsible for the
direction.
• The functional unit representative provides initial data and inputs them to
calendar network plan (CNP), and the methodologist for a direction
coordinates this work, recommends the use of the techniques and means
most adequate for the current situation, and controls the work performance
against valid standards.
123
124
125
Pic.98. Level 3 schedule
126
Pic.99. Level 3 actualization
Pic.100. General Contractor and Customer-developer interaction process during
change development for level 3 schedule of NPP construction project
127
List of Documentation Necessary for Level 3 Schedule
Customer-Developer’s 1.Regulation on controlling Level 3 schedule changes (as an appendix to the
State Contract)
2.Regulation on Customer-Developer’s PMO
3.Job description for Project Manager on Customer- Developer’s part
4.Job description for PMO Head of Customer-Developer
5.Job description for Methodologist of Customer-Developer
6.Job description for Planner of Customer-Developer
7.Role instructions for Primavera P6 Software use
Gen.Contractor’s
1.Regulation on Gen. Contractor’s PMO
2.Job description for Project Manager on Gen. Contractor’s part
3.Job description for PMO Head of Gen. Contractor
4.Job description for Methodologist of Gen. Contractor
5.Job description for Planner of Gen. Contractor
6.Job description for Superintendent of Gen. Contractor
7.Job description for Functional Unit Specialist
8.Role instructions for Primavera P6 Software use
128
Subject matter 2 Managing Projects in Oracle Primavera P6 Project Management
Introduction
Primavera was developed by Primavera Inc and two years ago was merged by
Oracle. in October 2008 Oracle acquired Primavera Systems. Primavera includes
several modules: Contract Management, Risk Analysis, Project Management
module, etc.
PM module has competitors. The most popular are Microsoft Office Project +
Project Server and Spider. But it’s a leading provider of Project Portfolio
Management (PPM) solutions for project-intensive industries.
For large projects such as constructing ones Primavera suits best as more
powerful, flexible and stable.
Primavera P6 Professional Project Management, the recognized standard for
high-performance project management software, is designed to handle large-scale,
highly sophisticated and multifaceted projects. It can be used to organize projects
up to 100,000 activities, and it provides unlimited resources and an unlimited
number of target plans. Massive data requires sophisticated, yet highly flexible
organization tools to provide you a multitude of ways to organize, filter and sort
activities, projects, and resources.
BENEFITS
Balance resource capacity
Plan, schedule, and control complex projects
Allocate best resources and track progress
Monitor and visualize project performance versus. plan
Conduct what-if analysis and analyze alternative project plans
This guide will learn you how to set up the main project options, how to
create a new project and to manage it.
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2.1. Starting up
Pic.101. Primavera Project Management icon on the desktop.
To start working with Primavera software you should double click its icon on
your desktop (pic.101) or select it from Start → All Programs → Primavera →
Project Management.
Pic.102. Logging into Primavera Project Management
In both cases Primavera will ask you to put in your user name and the password. In
this guidance we are using the profile with the login “admin” and an empty
password (pic. 102)
At this point you should not change the database name in the window above.
2.1.1. Primavera’s Interface
130
After Primavera starts, you will see the next window:
Pic.103. Primavera Home page.
On the standard layout Primavera has the next toolbars:
1) Title bar (dark blue bar at the top of Primavera window) shows all the open
projects comma separated.
2) Menu bar (File, Edit, e.t.c.)
3) Directory. It includes two types of directories: global (four directories) and
project (next 8 directories). Project directories are available only when a project is
opened, otherwise they are in gray as shown on a picture above.
4) Command bar
5) Navigate bar to navigate throw the views.
6) Status bar shows current status of a project and a base.
Primavera saves all changes in the project base automatically. That's why there is
no such command as File → Save As... And you should not worry that your last
changes can be lost in case of PC power switching off. Also it means that it is
necessary to export your project base to roll it back for one of the previous states.
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If you'd like to change this layout you should go into Display → Toolbars (pic.
104) and unselect the necessary one.
Pic.104. Setting up Primavera layout.
Name bar shows names of all open projects. Pay attention on this bar while editing
a project: you may change not that project that you want. To be sure go into File →
Close All (Ctrl + W) to close all opened projects and then open a necessary one.
All the current views of the Primavera interface could be saved. You can change
the layout for your future purpose as a maquette and then use it when it is
necessary. Maquettes save the layouts and usually are named as their intended
uses are: “Resources inputting”, for example.
To obtain a layout press on Layot → Open (pic. 105). After that you will see a new
window (pic. 106). If you’d like to change a current layout, press Yes, but it is
strongly advised not to damage existing layouts and press No. A list of all available
layouts will be shown (pic. 107). There you can select a necessary layout by
clicking on its name and press Open. Notice how the view of your Primavera
desktop will be changed.
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Pic.105. Open Layout menu
Pic.106. Open Layout question
Pic.107. Open Layout window
2.1.2. Opening a project.
There are several ways to open a project.
a. 1. Select the project (marked as a gray folder) in Enterprise Project Structure
(marked with a pyramid icon): left click on it, it highlights with dark blue.
2. Right click on it
3. In the context menu select the first item: Open Project (Ctrl + O). (pic. 108)
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Pic.108. Open project item
b. 1. Select the project (marked as a gray folder) in Enterprise Project Structure
(marked with a pyramid icon): left click on it, it highlights with dark blue.
2. File → Open (Ctrl + O) (pic. 109).
Pic.109. Open project menu
This way has more options that the previous one: pic 110. First of all you should
select a project to open. Also here you can select an success mode: Exclusive,
Shared or Read Only.
If the project is opened by someone else, you can look throw its users by clicking
Users button at the right top part of this window.
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Pic.110. Open Project window
2.2. Project settings
Most of Primavera settings are duplicated: you can use them from the Menu or in
the Bottom Layout. Usually the layout includes a lot of tabs. By changing
parameters on the different tabs you can set up all the necessary project settings.
Pic.111. Project bottom layout
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2.3. Corporate data structure
Pic.112. Projects resources reports and tracking – global directories
2.3.1. Code structures
Primavera allows to group and classify projects, activities and resources by
special criteria. There is an opportunity to create required codes for creating
reports, summation, filtering, grouping, selecting and sorting support.
Codes are useful when similar projects are situated on different levels of
enterprise project structure.
Project codes Project codes are general for all enterprise projects. They can be grouped
hierarchically. To evoke the project codes window go into Enterprise Project
Codes… (pic. 113).
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Pic.113. Project codes
Activity codes These codes can be accessed by Enterprise Activity Codes… They are of
two types:
1) General – available for all projects in the base;
2) Project – available only in current project.
The type of displayed codes can be selected in the top options bar of the
window (pic.114).
Pic.114. Activity codes
Resource codes These codes can be accessed by Enterprise Resource Codes… They are
global, can be hierarchically structured.
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Pic.115. Resource codes
2.3.2. EPS
A project must be created in an EPS, not at the root of a base.
EPS – Enterprise Project Structure - is a way to group all projects into
portfolios for easy and transparent managing them. Also calculate all the
summaries in projects into EPS.
The EPS in Primavera contains details of the projects that are in the
database and the ownership of those projects. When a project is created, it is
assigned to an EPS node. You must select an EPS node to open the Export section
on the Export tab. You cannot export data if you do not select an EPS node.
2.3.3. OBS
Organization Breakdown Structure - is a hierarchical managing project
structure which shows relations between project participants.
To enter or edit OBS go into Enterprise menu OBS (pic. 116).
Pic.116. OBS
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The new window will be opened (pic. 117). There you will see OBS tree and
a layout.
Pic.117. OBS settings
If the form is not displayed press Display OBS Details. On the form there
are 3 tabs: General, Users, Responsibility.
To search an item in this tree you can use:
a) View Search (or Ctrl + F);
b) Display Expand All (or “+” icon in the tree);
c) Display Collapse All (or “-” icon in the tree).
Also you can display the OBS in a diagram view. To do that press Display
Diagram.
To increase/decrease the scale of the diagram:
1) press the Alt button on your keyboard (the cursor will turn into a magnifying
glass) and
2) while the left key of your mouse is pressed,
3) scroll the mouse down /up the diagram area.
2.3.4. Roles
Before creating a resources structure, a roles structure should be developed.
Roles are resources’ knowledge and skills, which can be used to simplify
resources assignment. The roles structure can be hierarchical.
In Primavera there is an opportunity to assign several roles to one resource.
And vice versa, one role could be assigned to several resources. The picture 118
illustrates it.
Resources Roles
Employee1 Role1
Employee2 Role2
Employee3 Role3
Employee4 Role4
Role5
Pic.118. Resources and roles relations.
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The role structure in Primavera is available in Enterprise menu Roles
(pic. 119). There you can edit an existing structure or create new items. To display
the form at the bottom of the window press Display Roles Details (it should be
checked).
Pic.119. Roles structure
2.3.5. Resources
The resources list can be evoked by clicking on the Resources button in the Global
Divisions or into Enterprise Resources (pic. 120).
Pic.120. Opening resources
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Pic.121. Resources structure
To view all the resource’s parameters you can use a form below: each tab shows
different parameters. Also the list can be displayed in a diagram view by clicking
Display Chart View (pic. 122)
. Pic.122. Chart view of project resources.
2.3.6. Calendar
Primavera uses several common calendar templates: 24*7 and 8*5 hours a week
calendars. You are able to create your own calendar, extending standard ones.
To create a new one go into Enterprise → Calendars… . A new window will open
up (pic.123). There you can select a template calendar's type and a name for a new
calendar.
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Pic.123. Calendar selecting window
Primavera works with calendars of three types: global, resource and project ones.
Global calendars are available for all projects in the base. When you change one
of global calendars, all its child resource or project calendars are changed to.
A resource can use global or resource calendar. A project can use global or project
calendar. For new project or resource calendar global or existing resource
calendars can be used.
Pic.124.Creating a new project calendar.
1. To create a project calendar you should select a Project option at the top of the
window.
2. Press the Add button (at the right side of the window with a blank sheet icon)
(pic.125)
Pic.125. Add button
3. Then select a template (Standard 5 days a week, for example) and click on a
button with a green cross - “Select” button.
4. Type in the calendar's name.
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5. Click on the Modify button, a new window “Project calendar” will show up
(pic.126).
6. Make changes.
7. Press OK.
Pic.126. Modifying a new calendar
To navigate throw Years you should click on the button with a month and a year.
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2.4. Project structure
The whole structure of a project should be the next:
Activity
Steps
2.4.1. WBS
Work Breakdown Structure – is a way to group activities. Each WBS level
can include other WBS or activities. WBS can be created on the EPS level or on a
project level (only after creating).
Project manager must create WBS of a project, assign OBS units on WBS
levels, assign documents, define activities, which are included into WBS.
1. Open a project.
2. Project WBS or WBS in the left panel.
3. At the right panel select the first item Add.
4. Fill in ‘WBS Code’ and ‘WBS Name’ fields
5. ‘Project ID’ and ‘Project State’ will be filled in automatically.
6. In the Bottom Layout you can change all the appropriate
settings.
7. To change WBS hierarchy you can move items using 4 arrows
at the right panel:
Pic.127. Hierarchy changing arrows
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2.4.2. Activities
Activities – are the lowest level of project WBS. They show all information
about project. Activities are described by:
1. Activity ID
2. Description
3. Duration
4. Calendar
5. Type
6. Codes
7. WBS
8. Relationships: Predecessors and Successors
9. Resources
10. Expenses
11. Summary
12. Feedback
13. Notebook
14. Steps
15. Documents.
Pic.128. Activity type
In Primavera activities can be one of 2 types: task dependent or resource
dependent. Also they can be divided into 3 groups: start/finish milestone, level
of effort or a simple activity.
2.4.3. Steps
An activity can be decompose to a smaller part – steps. They are characterize
by its weight: if your activity consists of 2 steps: Step1 with weight 1 and Step2
with weight 3 it means that your activity is divided into two parts: 25% and 75%.
If Step1 is completed, 25% of the activity is done.
To work with steps on the General tab of a Bottom Layout select %Complete
Type Physical.
To create a new activity with steps:
1) Open the project
2) Project Activities
3) Select Add in the right menu
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4) In the wizard window type in Activity ID and Activity Name
5) Press finish
6) In the Bottom Layout go on Steps tab
7) Press Add button at the bottom
8) Type in Step Name, Step Weight
9) Check Completed flag if the step is completed.
2.4.4. Relationships
Primavera can automatically calculate a schedule and a duration of a project.
To do that you must not feel in Start Date and Finish Date fields. Instead you must
select Predecessors or Successors for each of activity (it can be done in the Activity
Table, in the Bottom Layout or in the Gantt Chart). If an activity does not have a
logical predecessors or successors, it must have relations with start or finish
milestone of a project.
To assign relations do the next steps:
1) Open a project
2) Project Activities
3) On the Bottom Layout select one of the tabs: Predecessors,
Successors or Relationships (shows both of them)
4) At the bottom select Assign button
5) Select predecessors or successors from a list
6) Press the button with a green plus icon – Assign – in the new
window
7) The new window can be closed.
Pic.129. Assignment
1
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2.4.5. Assignments
When activities are created the next step is Assignments.
In Primavera there is a way to assign documents, resources and expenses. To
assign each of them you should do the next steps:
1) On the Bottom Layout select one of the tabs: Documents,
Resources or Expenses
2) Press Assign button on the bottom
3) A new window will be opened
4) Select appropriate item
5) Press a button with green plus Assign
6) Documents, Resources or expenses will be assigned to the
activity.
7) Clicking Delete will delete assignment but not documents,
resources or expenses themselves.
Pic.130. How to assign
To create documents, resources or expenses click the appropriate item
in the left menu of directories. There you can press Add button at the right
panel, type in Name and other information. Also in the Bottom Layout you
can select an activity, to which you want to assign documents, resources or
expenses. Clicking Delete will delete documents, resources and expenses
and all their assignments.
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2.5. GROUP, SORT AND FILTERS
Primavera has a powerful module, which allows you to change your layout.
To use it click on Layout button:
It can be totally used in Activities directory. You will see a drop-down menu
with the next items:
Pic.131. Filters, Group &Sort
Group menu provides options to set up display options of table of activities:
Pic.132. Group and Sort
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By clicking on the first cell of Group By table you can select a column name
to group activities from a long list:
Pic.133. Grouping fields
Also font, color and group level can be selected. To apply your settings click
on OK button in the top right corner of the window.
To use Sort tool click on Sort button in the right panel of the window. In this
case you will see another window:
Pic.134. Sort
It has a table with two columns: Field Name and Sort Order. In the first cell
you can select a field name to sort a table of activities and in the second: ascending
or descending, hierarchical for some fields. By clicking Add button a complex sort
can be created:
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Pic.135. Sorting fields
The next way to sort the table of activities is to click on a column name:
Pic.136. Sorting in the activities table
An arrow up/down shows that the table is sorted by the field
ascending/descending. Clicking on Layout Filters shows the next window:
Pic.137. Filters
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On this window different kind of filters can be selected. Simple filter consists
of one condition and complex – of two or more.
Pic.138. Complex filter
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2.6. REPORTS AND PRINT SETUP
There are a lot of predefined global report templates in Primavera base.
Pic.139. Reports
To create a report select one of this template and press Run Report button in
the top right corner. After that you are able to change report settings:
A report can be printed or saved as *.pdf, *.html or *.txt file. To set up the
report layout go into Print setup in the left op corner of the window.
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2.7. ANALYSYS AND CONTROL
Now when the project structure is
created, when activities are entered and
have predecessors and successors, when
resources, document are assigned, it’s time
to schedule the project. Go into Tools
Schedule or press F9 button on the
keyboard or select Schedule item in the
tools panel (it has the same icon: a clock
with a folder).
You will be provided with schedule
options:
Pic.140. Scheduling options
Press Schedule button to make all activities scheduled. After this you can
analyze using of resources and expenses and base plan.
The blue line on the picture shows the date on which the timetable was
scheduled.
Base plan is shown with yellow under strike of activities bars.
To manage resource usage you can select Resource Usage Spreadsheet or Resource
Usage Profile:
Pic.141. Resource Usage icons
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The layout will be divided into 5 parts:
Pic.142. Resource Usage Profile
By selecting activities in the 1st part and resources in the 3
rd, you can view
resources activities.
2.7.1. What-If
If you are going to create several versions of you project, not to sum each of
them in the portfolio, you should create a project with what-if status. To do that go
into Projects General tab Status:
Pic.143. Project status settings
Make sure that the project icon is changed:
Pic.144. What-if project icon
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2.7.2. Fact
For entering actual status of any activity go into Activities table of
activities create a new column Activity Status (or Activity % Complete).
Pic.145. Activity status
There you can select activity actual status through the project managing
process.