Professional Documents
Culture Documents
Organizing For Project Mangement
Organizing For Project Mangement
Labitzke, PE
Professional Chemical Engineering
http://www.born2process.com
The Project Manager must pay constant attention to all three responsibilities,
avoiding a tendency to concentrate on operational problems at the expense of
supply and administration. No task force can long survive as an effective
operational unit if it is poorly supplied or poorly administered, and if the Project
Manager is to be successful he must under no circumstances neglect any portion
of these basic responsibilities.
PROMULGATION OF AUTHORITY
Many larger corporations operate under a system of management in which
formal authority stems from the Board of Directors and is delegated, in whole or
in part, through the President to subordinate levels of management. Usually, by
resolution of the Board of Directors, the delegation of authority is required to be
in writing at all levels of organization. Two principal documents are commonly
utilized for this purpose, the Delegation of Authority and the Grant of Operating
Authority.
Limits of Authority
The limits of authority granted to a Project Manager might be as follows:
The Project Engineer is the Project Manager's technical specialist and within the
limits delegated to him by the Project Manager. He is responsible that all
process, technical and esthetic aspects of a project meet the Owners
requirements and conform with the Appropriation, Project Definition and Design
Criteria and that the resulting plant is neither over or under-designed. He assists
in evaluation of architect-engineers, vendors and contractors and in setting up
the architect-engineer's task force. He controls, coordinates and adjusts physical
progress of task force engineering according to established priorities and
schedules, working through the architect-engineer's project manager. He guides
preparation of design transmittals, specifications and drawings and coordinates
approvals.
He controls issue of requests for inquiry and purchase requisitions and provides
technical evaluation of resulting quotations and bids. He supervises engineering
in vendors' shops and coordinates checking and approval of vendor drawings
and specifications. He assists estimators, cost engineers, purchasing agents and
project control engineers in matters relating to engineering and design.
Within limits imposed upon him by the Project Manager in his Grant of Operating
Authority, the Project Construction Manager assumes responsibility and
accountability for execution and successful completion of the construction and
installation work of the project. He manages the activity of personnel assigned in
the disciplines of area superintendent, inspection, safety, warehousing, site
engineering and other disciplines as assigned, interprets drawings and
specifications to contractors.
Area Superintendents
Project Controller
Within the limits delegated to him by the Project Manager, the Project Controller
performs all aspects of project planning, scheduling and project control including
coordination of time, cost, quality and control aspects of the project. He
organizes and supervises drafting and reproduction office and data processing
programs. He trains architect-engineers, vendors and contractors in use of
project methods and assists in expediting and inspection programs.
The Project Purchasing Agent, within the limits delegated to him by the Project
Manager, carries out the procurement activities of the project in accordance with
the Owner’s procedures. This includes establishing and evaluating source of
materials, services and equipment, soliciting bids, evaluation of bids, negotiating
with vendors and contractors, making commitments, administration of contracts
and disposal of surplus materials.
The Project Cost Estimator, under direction of the Project Manager, prepares
estimates-to-complete; prepares control estimates and revisions caused by
scope changes; provides the quantity measurement of materials, labor,
equipment, rentals, supplies, or other items furnished in cost-plus construction
work and as a basis for validation of the contractors' invoices for payment;
substantiates by physical verification the quantities of work put in place as a
verification of contractors' invoices for lump-sum construction work; provides
break-down and analysis of bids and provides comparisons with estimates for bid
evaluation purposes.
He measures and reports the impact of deviations from the project estimate and,
if necessary, makes recommendations for suitable alternative means of
execution; assists in providing the cash requirements against time for all items
not already committed or expended. The Project Cost Estimator reports to the
Project Manager.
Project Accountant
The Task Force’s relationship to the Owner is that of supplier to customer, and
the Owner's requirements are the prime consideration.
Upon approval of Funding for an assigned project, the Task Force takes
complete responsibility for:
1. Funds
2. Timing.
3. Determination of method of execution.
4. Actual execution, including:
a. Quality of construction.
b. Reliability of operation of the finished plant.
c. Selection of architect-engineer (in consultation with the Owner).
d. Selection of vendors.
e. Selection of contractors.
f. Development of control-grade cost and time estimates.
g. Measurement of progress against these estimates.
h. Project Accounting.
i. Cost Control.
j. Planning & Scheduling.
k. Purchasing.
l. Reliability Control.
m. Regular reports to the Owner.
The Owner will usually appoint a Liaison Officer to coordinate its activities, which
include decisions affecting return on investment, definition of the project,
establishment of urgency, establishment of quality and reliability standards, and
review and approval of progress.
INFORMATION RELEASE
Project Information
A Task Force operates generally on the basis of "all facts on the table at all
levels". However, because of the far-reaching consequences of
misunderstandings and misinterpretations, which may result from indiscriminate
release of information, the formal and official release of information to the Owner
should be reserved for the Project Manager.
Press Releases
The Owner and only the Owner is authorized to make releases to the Media.
REPORTING
Weekly Reports
A Task Force’s reporting philosophy must be aimed at providing weekly reports
of physical progress against schedule for engineering, purchasing, construction
and overall project. Weekly reports are to be frank, factual and objective, and are
distributed in identical form to the Project Manager; Project Accountant;
Purchasing Agent; Construction Manager, and Owner. It is an inherent principle
that NO information vital to the conduct of the project is withheld at any level.
Reports are not merely a listing of accomplishments, but report factually the
weekly measurements of physical progress against the original "yardstick"
schedule. They should concentrate more on the problems that face the Project
Manager and how he plans to overcome them than on the successes.
Where a deviation from schedule has worsened, the weekly report gives the
underlying reason, the action being taken or contemplated to offset the situation,
and the effect, if any. For very large projects, a weekly synopsis of backlog
should be included.
Project Managers must ensure that weekly reports are distributed to those
affected, which may include contractors, architect- engineer, vendor, Project
Engineer, and Area Superintendents.
Monthly Reports
CHANGES
Project Changes
Changes which occur in execution of the project and which represent deviations
from courses of action which have already taken place or are planned must be
formally recorded and, in most instances, require approval of the Owner. It is to
be recalled that in general no Grant of Authority and no Appropriation in any way
permits the Task force to exceed the limits specified in plans, programs or
budgets which have been approved and authorized by the Owner.
The formal documents used to record and obtain approval of such changes are:
The Task Force should take no action to execute a Scope Change until the
Owner has authorized the corresponding increase in project funds in writing.
When an under-run results, the Task Force will return the unexpended funds to
the Owner and should not undertake additional work beyond the original scope of
the project simply because unexpended funds still remain available.
The Task Force normally writes the Engineering Services Contract, but because
the amount will probably exceed the Grant of Authority given to the Project
Manager, it will be signed by the Owner. Expenditure of funds is normally on a
cost-plus basis. Revisions or change orders to the Engineering Services Contract
will be written by the Task force and signed by the Owner
Purchase Orders
Handover sequence
Final Inspections. Normally the following final inspections will take place:
Project Engineer’s Inspection. When all construction work has been completed,
the Project Engineer will personally inspect the facility and will satisfy himself that
the work has been carried out in a professional, workmanlike manner in
accordance with approved design, and that it is indeed ready for handover.
Project Manager’s Inspection. This will normally take place before inspection by
the Owner, but after all construction work has been completed, the area has
been thoroughly cleaned, and all construction gear has been removed.
Acceptance Inspection. The Project Manager and the Owner will attend this.
They will together inspect the facility in detail, step-by-step, witnessing test runs
of all operating equipment.