歡迎炸佢: nancychow@hkpro.com.hk -- Anti anti-7734 (YMCA College)

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Date Posted: 19:12:24 10/11/03 Sat
Author: 歡迎炸佢: jameslam@hkpro.com.hk
Subject: 歡迎炸佢: nancychow@hkpro.com.hk
In reply to: ��Z�ر��P+�w�וּ�\: jameslam@hkpro.com.hk 's message, "�b�x��Z�ر��O+�w�וּ�\: nancychow@hkpro.com.hk" on 22:41:49 09/27/03 Sat

The Need for Project Management
Project management is a particular concept of management applied to project-type work. It is a concept which is being widely promoted, although it is not always very well understood by those in need of the service, or even those involved in the many aspects of this form of management. However, as experience is gained and understanding of the concept and the many supportive management techniques improves, so do performance and support, generally. The driving

forces arise from the pressure of such factors as unfavorable short-term economic conditions, risks inherent in unpredictable inflationary trends, the magnitude and duration of projects (particularly in construction), and increasing regulatory and environmental requirements, as a result of political pressures.

Such uncertainties make the project management approach particularly appropriate for owners intending to invest in significant capital works. Properly applied, project management enables an owner to maintain both executive control and open options for as long as possible to respond to external conditions.

This is achieved by dealing through a single entity, the project team, which in turn is led by an individual dedicated to the project, or to project work, and identified as the project manager. This team should be established early in the development of the project concept and be given responsibility for the complete project life cycle from feasibility; through schematics, design, procurement; to delivery and start-up. In this way, managerial unity is established early in the project, with the capability of achieving specific goals through a practical organizational structure.

Thus the owner avoids becoming intricately involved with the design and construction specialists and in the very time-consuming details necessary to create new facilities. In short, he is able to continue to concentrate on his primary business with minimum interruption to his own organization.
Comparison with Traditional Management Philosophy
It is important to note that Project Management, in the context considered here is a total organizational concept. It includes the coordination and direction of financial, regulatory and environmental specialists, consultants and contractors, together with the owner's and user's staff as members of a project team. It starts with identifying and developing the basic project idea and continues through feasibility, construction and commissioning.

Thus Project Management may be defined as:

"The application of modern management techniques and systems to the execution of a project from start to finish in order to achieve pre-defined objectives within limits of time, budget and client satisfaction."

Project management should also be clearly distinguished from Construction Management. Construction Management refers to the direct management of the construction stage and is a valuable major technique which can be used within the project management structure outlined above. As discussed later, it may be used to advantage as an alternative to the general contractor, particularly on large projects where time savings and continued flexibility are required.

The project manager may have specialist skills but he needs to act as, and be looked upon as, the 'general practitioner'. He should bring to the job a background of experience in planning and management of similar projects, as well as general know-how in design and construction. Except for the individual specialists themselves, to whom he should be ready to refer, he should be as knowledgeable as anyone about the economic and regulatory environment, engineering technology, project planning, scheduling and cost accounting, as well as construction.

His job is to interpret the client's requirements to the specialists and direct their efforts to achieving the best combination of the project's key criteria. The key criteria are commonly recognized as scope, cost, time, and client satisfaction. This last item is sometimes overlooked, but is perhaps the most significant, since unless the project is seen to be satisfactory, it will not be recognized as such. On it, hangs the whole reputation of project management and the opportunity for follow-on business, The four criteria inevitably come into conflict; judicious trade-offs, with the client's approval, are constantly necessary.

The Project Manager�s Personal Objectives
The project manager's personal objectives should therefore be to:

Attain the willing commitment of people to assigned tasks
Achieve the co-ordination and collaboration of different work groups, responsibility centers, and entire organizations, including that of the owner
Achieve visibility by placing a high premium on reliability and timeliness of information, and a high cost on unnecessary or irrelevant information
Steer the project to completion in an orderly and progressive manner
Ensure that trade-offs between scope, cost and time are satisfactory and acceptable, and are seen to be so
Perpetuate development of personal and professional skills and the potentialities of project participants.
For purposes of comparison, traditional management philosophy and its typical structure is shown in Figure 1.

Figure 1. Typical Functional Organization showing Line Authority/Responsibility
Figure 1 can be summarized as follows:

Established on-going the organization�s function mainly on a vertical basis
A chain of authority exists within the organization from the highest rank to the lowest, through every link in the chain
Hence, an employee receives orders from one superior only
Strong superior-subordinate relationships exist to preserve unity of command and to ensure unity of purpose
Work progresses within autonomous functional units of an organization
The line and staff relationships are clearly defined
Functional managers have clearly identified finite responsibilities
Functional managers establish "staff" relationships where collective action is required

Effective Project Execution
Since the effective execution of a project requires the combined effort of many functional areas acting as a team, new management relationships have to be created within the traditional organization. Successful achievement therefore necessitates cutting across the normal flow of authority, with responsibilities radiating outside any one functional unit. Lack of official cohesiveness means that the traditional management approach becomes unsatisfactory for project work.

The project manager is confronted with the coordination and integration of both human and non-human resources. He must balance concept requirements with engineering limitations and, at the same time, relate the client's functional demands to cost restrictions. However, he does have the advantage of being able to look at the overall project without being influenced by, say, the specialist's bias or contractor's profit motive. His objectives are identical to those of the owner, although he should be able and willing to argue a point with him when he feels it is necessary,

The adoption of an effective project management organizational structure, together with the use of management system tools to manage the project, forces a logical approach to the undertaking. It facilitates decision making and enables management to readily handle its responsibilities. In fact, as a management philosophy it provides a refreshing way of thinking that allows for temporary changes in an organization's structure and its activities.

Project Management Services under Contract
Because major construction projects are exceptional, one-time or at least infrequent undertakings for most organizations, it is usually impractical to maintain an experienced project manager and the necessary support personnel on the owner's staff. The use of specialized outside services as a temporary extension of the owner's management structure for the duration of the project is much more practical. Outside services are more flexible, usually have access to varied resources, and cost little in comparison to the total project commitment throughout its life.

Such a project management service can assume complete responsibility for the management of a project and for meeting project objectives. A competent project manager, who would be directly responsible for the complete management of the project as defined by the client, would be assigned together with all required staff and services not otherwise available from the client. A typical project organization chart is shown in Figure 4.

Figure 4. Senior Appointments for an Engineer, Procure, Construct (EPC) Organization
This service should commence with the critical first steps of developing the requirements of the concept into a scope of work and be completed with the managing and start-up of the constructed facilities. It should be initiated by a project task force comprising senior representatives from the client and from the home office of the project management service. This task force would establish project organization and policies. It could continue to meet at intervals to confirm commitments and continuously review the status of the project at the executive level, until performance is completed.

Construction Management Conclusion

Flexibility with Certain Limitations
Any organization can mold its own project management system to satisfy its existing functional capabilities and unique constraints. However, there are a number of requirements that are fundamental to the success and effectiveness of this approach:

The Project Manager must have the necessary managerial authority within his own organization to ensure response to his requirements
No major technical, cost, schedule, or performance decisions should be made without the Project Manager's participation
He must be identified as the authoritative agent in dealing with outside parties, and be the responsible and single formal contact with them
The Project Manager should have a say in the assembly of the project team, and personnel assigned to the project must be competent
The Project Manager should have the capability and authority to control the commitment of funds within the prescribed limits of the project, and should actively direct attention to schedule adherence
Senior management must clearly demonstrate support for this concept

http://www.maxwideman.com/papers/executive/services.htm

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�b�x��Z�ر��O+�w�וּ�\: nancychow@hkpro.com.hk -- ��Z�ر��P+�w�וּ�\: jameslam@hkpro.com.hk, 21:43:20 02/13/06 Mon

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