Project Management

lecture

Janusz Marek Lichtarski

PhD. Associate Professor

Departament of Strategic Management

 Formal Issues
Formal requirements:
• presence
• cases and exercises done
• final exam passed (a test with multi-choice questions)

About the teacher:

Janusz Marek Lichtarski, PhD. Associate Professor
• University teacher & scientist (2001 – untill now)
• Business consultant and practitioner (2001 – untill now)
• Project manager (2005 – until now; over 30 projects of different kind)
• Director of Lifelong Learning Center (2013-2017)

e-mail: janusz.lichtarski@ue.wroc.pl
contact hours: Tuesday, 11.30-12.30, room 113B or via MS Teams
 My experience in project management
Certificates & Organizations
Certificate Prince2 in Project Management
Juror in IPMA competition

Experience in some type of projects:

• Research projects (financed by MNiSW, NCN, IBM, EU funds, WUE)
• Educational projects (postgraduate studies, training courses, Head of Lifelong
Learning Center: portfolio of over 50 projects each year)
• Consulting projects (strategy formulation, ISO implementation, IT system
implementation)
• European Union Projects (training projects, SME development)
 Formal issues
Goals of the lecture:
• get basic knowledge about projects, environment, project management, and
project managers (PM)
• learn to think like project managers (systems thinking, economic awareness,
entrepreneurship, responsibility, etc.)
• develop hard and soft skills, e.g. setting goals and project planning, time
managing, making decisions in unstable conditions, team building

Teaching methods:
• lecture based on presentation
• guest presentations (two practitioners)
• exercises and games
• working with the text - theoretical background
• discussion
• quiz
 The Program of Our Classes

1) Introduction (formal issues, requirements, communication etc.)

2) Basic definitions: what is project and project management?
3) Project goals, „iron” triangle and project life-cycle
4) Project manager – a useful skills (developing time management skills)
5) Optimizing projects
6) Team building and project leadership
7) Project portfolio management and project maturity models
 Why study Project Management?

1) Projects are everywhere around: construction, IT, telecommunication, R&D,

engineering, art, media, aerospace, military, science, education, production,
logistics, marketing, finance, healthcare, etc.
2) You will know set of very helpful skills and tools which you can use them in
each profession and your private life, e.g. when you will be building a house
3) Project managers’ job is interesting: new ideas, new projects new people
4) Project manager is one of the professions of the future, along with data
analyst, cyber security expert, robotics engineer, etc.
5) Project managers are wanted and generally well paid
Literature

All the books entitled e.g. project management, basics of project management,
fundamentals of project management, principles of project management, etc.

I know that you will use internet, but please use verified sources! There are many free pdf
books and many good websites, e.g.: www.pmi.org, www.ipma.pl, etc. Do not use blogs
and not verified sites!
Other issues
Lecture:
15 hours / 8 meetings

Dates of our meetings (Monday, 8.15):

4.10, 11.10, 18.10, 25.10, 8.11, 15.11, 22.11 and 29.11 PRE-TEST

https://www.quizme.pl/q/januszlichtarski/are-you-
prepared-to-our-class
Defining a project
A project is a temporary endeavor undertaken to create a unique
product or service (PMI)

Project is:
• performed by people
• constrained by limited resources
• planned, executed and controlled

A Project is a temporary, unique and progressive attempt or endeavor made to

produce some kind of a tangible or intangible result (a unique product, service,
benefit, competitive advantage, etc.). It usually includes a series of interrelated
tasks that are planned for execution over a fixed period of time and within certain
requirements and limitations such as cost, quality, performance, others
Project features
• project is unique and typically for a
customer (internal customer)
• project is temporary from the nature, it
has a defined start and end-point
• project has precise goals and strictly
defined constraints: scope, time, and cost
• project can very often be cross-functional
or cross-organizational
• project needs to be done collectively by a
group of people
• project involve a high degree of
uncertainty and risk
Examples

Some examples of a project are:

• developing a new product or service

• constructing a building or facility
• conducting a scientific research
• renovating the kitchen
• developing new software
• designing a new transportation vehicle
• organizing a training course
• organizing a meeting
• implementing a new business process
Types of projects

Projects are different, and we can use various criteria to distinguish them, e.g.:

• construction, manufacturing, technological, managerial, R&D, IT, educational,

research, social, sport, cultural, etc. ……
• business vs not business oriented
• internal vs external (who is the client)
• strategic vs operational
• small, medium, big projects, and megaprojects
• individual, intra-organizational, and inter-organizational (inter-firm cooperation)
Project management
It is the application of knowledge, skills, tools, and techniques to project activities
to meet the project requirements. It is the process of attaining project objectives
in a stipulated time to produce quantified and qualified deliverables.

Project management processes fall into five groups:

1.Initiating
2.Planning
3.Executing
4.Monitoring and Controlling
5.Closing
Examples of projects around us
Project is a temporary and unique endeavor undertaken to produce some
tangible or intangible result (a unique product, service, etc.), including a series
of interrelated tasks that are planned for execution over a fixed period of time
and within certain requirements and limitations such as quality, performance,
cost, etc.

Taking the definition above, please find and write down examples
of following projects:
A group project that you have participated in…
An individual project you will be responsible for in foreseeable future…
A business oriented and non-business oriented project…
A research project…
A megaproject…
Examples of projects around us
Project is a temporary and unique endeavor undertaken to produce some
tangible or intangible result (a unique product, service, etc.), including a series
of interrelated tasks that are planned for execution over a fixed period of time
and within certain requirements and limitations such as quality, performance,
cost, etc.

Taking the definition above, please find and write down examples
of following projects:
A group project that you have participated in…
An individual project you will be responsible for in foreseeable future…
A business oriented and non-business oriented project…
A research project…
A megaproject…
Project management
It is the application of knowledge, skills, tools, and techniques to project activities
to meet the project requirements. It is the process of attaining project objectives
in a stipulated time to produce quantified and qualified deliverables.

Project management processes fall into five groups:

1.Initiating
2.Planning
3.Executing
4.Monitoring and Controlling
5.Closing
Project goals (should be SMART)
Project triangle
Project is described and limited by following constraints
Project triangle
Project constraints (Prince2 Methodology)
Project life cycle
Initation Planning Execution Closing
Project Managers (PM)
Who are project managers?

A project manager is someone whose job is to plan a

piece of work or activity and organize the work of all
the people involved in it (Cambridge Dictionary)

A project manager is a person who has the overall

responsibility for the successful initiation, planning,
design, execution, monitoring, controlling and closure
of a project

They are organized, passionate and goal-oriented who

understand what projects have in common, and their
strategic role in how organizations succeed, learn and
change (PMI)
Project manager: in search of success
Who are project managers?

A project manager is someone whose job is to plan a

piece of work or activity and organize the work of all
the people involved in it (Cambridge Dictionary)

A project manager is a person who has the overall

responsibility for the successful initiation, planning,
design, execution, monitoring, controlling and closure
of a project

They are organized, passionate and goal-oriented who

understand what projects have in common, and their
strategic role in how organizations succeed, learn and
change (PMI)
Project manager: building a profile

Personal
Education
features

Soft skills Hard skills

Time management - personal perspective
Why study „time management” topic in the personal perspective?

 now we focus on the individual managerial perspective, so we will

learn how to manage our personal tasks (not the tasks of the project)

 most project managers (and line managers as well) are overloaded

- according to the study (2014) 65% of project managers do not
deliver tasks in time, 60% are highly stressed by time pressure, and
80% work over time (average more than 8 hours a day)

 Time management is a very useful hard skill, and could be critical in

developing carrer path
Time management
Time management is the act or process of exercising conscious control
over the amount of time spent on specific activities, especially to
increase efficiency or productivity.

Time management may be aided by a range of skills, tools, and

techniques used to manage time when accomplishing specific projects,
tasks and goals
Time management – some simple tools
List of tasks
First TM tool can be a simple list of taks. It can help you organize things
to do, and make your mind free - it is called „brain dumping” (when
you don’t do that, your mind can be overloaded)
Time management – some simple tools
Pareto Principle

20% of the work (tasks) brings you up to 80% of the results, and the
rest 80% of tasks gives you only the 20% of results.

What you need to do is to identify the right tasks that are called
priorities

The rule is universal and can be applied not only to time management,
e.g.:
- in business 80% of your sales come from 20% of your clients,
- 20% of people pay 80% of taxes, etc.
Time management – some simple tools
60% planning rule

The manager’s job is highly unpredictable, and according to findings

during the day of manager’s job you may expect about 40% of tasks
that are unexpected, e.g. unplanned meetings, calls, e-mails, sudden
problems etc.

To stay calm and not overloded you should make a plan for no more
than 60% of your day, having 40% spare time for unexpected tasks!
Time management – some simple tools

A – important and urgent, priorities, do

it now and personally
B – important but not urgent tasks, do it
personally, find a good time for it 
C – less important but urgent, should be
done quickly so delegate it!
D – less important and not urgent, so let
them wait?
 Project team – a definition
Two or more interacting and interdependent individuals who cooperate temporary
(cooperative mindset!) to achieve common set of precisely defined project goals in
the established period of time. Team members use the same PM tools and
documents, have complementary skills and support each other.
Project team – characteristics
Teams vs Groups

Collective Share
Goal information
performance

Positive Synergy Neutral

Individual Accountability Individual

and mutual

Random and
Complementary Skills
varied
A successful project team

Unified
Smart Goals Commitment Good
Communication

Relevant
Skills Effective
Mutual Trust
Project Team
Conflict
Resolution Effective
Internal External Leadership
Support Support
Tuckman’s project team life cycle
The Belbin’s Test
 The Belbin’s test is used for assessing team roles since 1993, and it is
one of the most popular diagnostic tool in the area of group working
and team building
 There are no better or worse results – the test helps you identify your
preferable team roles, and each role is required in the team!
 In the effective team all roles should be represented, and no one
should be dominating
 Some roles can be blended, so one person can represent more than
one role, and some not
 The Belbin’s Test

SHAPER

Characteristics Strenghts Allowable weaknesses

Prone to provocation.
Challenging, thrives on Dynamic, outgoing,
Offends people's feelings.
pressure. Motivation effective
Nervous.
 The Belbin’s Test

COORDINATOR

Characteristics Strenghts Allowable weaknesses

Mature, confident, a good
chairperson. Clarifies Broad outlook, respect, Can often be seen as
goals, promotes decision- professionalism manipulative.
making, delegates well.
 The Belbin’s Test

PLANT

Characteristics Strenghts Allowable weaknesses

Up in the clouds. Ignores
Creative, imaginative,
Genius, imagination, incidentals. Too pre-
unorthodox. Solves difficult
intellect, knowledge occupied to communicate
problems.
effectively.
 The Belbin’s Test

RESOURCE
INVESTIGATOR

Characteristics Strenghts Allowable weaknesses

Over - optimistic. Loses

Extrovert, enthusiastic, Vital, communicative,
interest once initial
Explores opportunities. curious
enthusiasm has passed.
 The Belbin’s Test

MONITOR
EVALUATOR

Characteristics Strenghts Allowable weaknesses

Sober, strategic and

Judgement, discretion, Lacks drive and ability to
discerning. Sees all
hard-headedness inspire others. Not creative.
options. Judges accurately.
 The Belbin’s Test

IMPLEMENTER

Characteristics Strenghts Allowable weaknesses

Disciplined, reliable,
conservative and efficient.
Turns ideas into practical
actions.
Somewhat inflexible.
Organising ability, hard
Slow to respond to new
working, self-discipline
possibilities.
 The Belbin’s Test

TEAMWORKER

Characteristics Strenghts Allowable weaknesses

Socially oriented, mild, and
Supportive, integrative, Indecisive in crunch
diplomatic. Listens and
sensitive situations.
builds.
 The Belbin’s Test

COMPLETER
FINISHER

Characteristics Strenghts Allowable weaknesses

Painstaking, anxious.
Searches out errors and Reliable, working on the Inclined to worry unduly.
omissions. Delivers on highest standards Reluctant to delegate.
time.
Project management tools
Project charter
Process optimization
PROJECTS
 Wyższa Szkoła Bankowa

„Project is problem scheduled

for solution”

J.M.Juran, 1989
Sources of problems (and projects)
 Wyższa Szkoła Bankowa

Project portfolio management

Potential projects

Evaluating TEAM Assessment criteria

Building portfolio

Fridge
Project

Trash
Process improvement projects
 Good project vs. Bad project

4 steps of improvement project

1. Analysis of AS-IS

2. Proposal of TO-BE

3. Implementation of solution

4. Verification & stabilization

 Subject:

Project Leader & Team A3 Report

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

The purpose of A3 Report

1. contract between project leader, sponsor and project team
2. communication of a project to the organization
3. archive of project activities
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Ben Goodman – Leader, Ann Smiths & Laura Wilkins - Finance Specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

 What is a problem?
How to define problem?

Problem is a GAP between current and desired

performance or state...

...described with data

„If you cannot measure it, it’s only your opinion”.

W.E.Deming
 Measure the problem - Pareto diagram

The Pareto diagram is a tool helping us to understand:

What are the largest issues facing our team or business?
What 20% of sources are causing 80% of the problems (80/20
Rule)?
Where should we focus our efforts to achieve the greatest
improvements? 20% of the causes brings 80% of the results
100% 100%

80%

20%

Causes Results
Examples of problems
Opóźnione
Deliverydostawy
time Oczekiwanie
Waiting forna
anzgłoszenie
operator Jakość operacji
Surgery quality

Number of contracts
signed Cost dynamics Number of defects
 Business Case context:
PROBLEM DEFINITION • IT company
• 1000 employees
• Lot of business travels
What is the problem?
Travel process in Company ABC consists of • Cost & employee satisfaction
• travel request,
• travelling activity
• and travel cost reimbursement.
Administrative actions are connected to travel request and travel cost reimbursement.

Based on data gathered for January-September 2020 it is observed, that travel process administration costs Finance
Department 4160 man hours work vs. 2080 planned, what causes additional cost for the organization which equals to 35 000
USD per year.

It was also observed, that 95% of time is spent by Travel Focal Points on administrative tasks connected to travel requests.

% of time spent on travel sub-processes

No of travels vs. FTE engagement in administratvie activities 100% 94,5%
180 2
90%
160 1,8
FTE needed for administration 80%
Number of travels per month

140 1,6
1,4 70%
120
1,2 60%
100 percentage of time spent
1 50%
80
0,8
60 40%
0,6
40 30%
0,4
20 20%
0,2
0 0 10% 4,8%
0,7%
ry
ry

ne

r
ch

0%
ly
il

t
ay

be
us
pr

Ju
ua
a

Ju
ar

M
nu

ug

m
br

te

travel request travel reimbursement travelling activity

Ja

A
Fe

ep
S

Month no of travels per month

no of FTE spent on travel administrative activities
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Ben Goodman – Leader, Ann Smiths & Laura Wilkins - Finance Specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

 VoC – Voice of the Customer

 What is the problem for the customer?

 Why is it so important?

 What are the customer expectations?

 What are ‚needs and wants’?

 How to transform ‚needs and wants’ to process

characteristics?
Project goals needs to meet SMART criteria:

Simple (easy to understand by everyone)

Measurable (quantitative)

Ambitious (will motive the team to act)

Realistic (able to reach)

Time-bounded (clear end date) what?

how much?
by when?
VOICE OF THE CUSTOMER – CTQ TREE

CTQs
Drivers
On-line system available for each of the
employees

Automation of the
process Automatic calculation of Travel details (per
diems, ticket fares, hotel costs, exchange rates)

Customer Approval of the travel possible without Manager

in the office

Workflow for approvers of the travel requests

on each of the approver levels
Cheaper
administration of
travelling process Request part of the process without paper
Elimination of „paper forms. E-forms in place
work”
No need for manual scanning

Tailoring procedures Simplified approval process containing 3 steps

to company needs (Line Manager, CFO, CEO)

Travel process documentation easy to

Awareness of understand and available for each employee
policies and
procedures
Education about travel process requirements
conducted for each of the employees
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Ben Goodman – Leader, Ann Smiths & Laura Wilkins - Finance Specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

In Root Cause Analysis we ALWAYS base on proces

To find out how the process

looks like, we need to map it.
 Different kinds of Process Maps – per needs

Flowchart Swim-lane chart

Value Stream Map (VSM) Spaghetti Diagram

What Can Go Wrong ?
VALUE STREAM MAP – WASTE IDENTIFICATION – AS IS PROCESS

Employee Manager Employee Finance Sepcialist Employee Employee

Fills Travel Reviews & Prints travel Collects back
Request form sends request table, Collectes & documents After faxing,
Employee with Invitation approved business Trip reconciles from finance returns
details and Travel form &Invitation printouts Specialist original travel Employee
receives e-mail; collects scans to PDF
invitation sends to Request form received from requests to ready for
Manager + together with signature from Employee format, asks Finance
for travel Manager; Travel Desk travel
inviting site invitation specialist for
details to prepares forms for hotel doc. storage
Finance for finance reservation &
1 4 Excel / specialist transport
Paper forms Paper forms
Symphony / 7 E-mail
2 Paper forms
3 e-mail FAX 22 23
6 5 8 9 24
10 11 12 14 17
18 19 20 25

13 Conditional action 21
Conditional action
Gather
Validates travel approvals from:
request. If OK 1.Finance Mgr
approves and 15 2.Site Executive.
pass to If travel request
employee. When OK, Finance Mgr 16
not – employee and then Site
needs to correct Executive signs
on request

start stop
32 – 143 15 - 95 4 – 232 4 – 67 2 – 57 9 – 44
minutes minutes minutes minutes minutes minutes

20 - 120 0 – 53 10 – 1190 25 – 970 65 – 460 15 – 45 15 – 420

minutes minutes minutes minutes minutes minutes minutes

pain point / waste under improvement

WASTE CATEGORIZATION – AFFINITY DIAGRAM

Employees waiting Extra physical/mental

Reprocessing or
for another process motion that doesn’t Transportation
correcting work
or a machine/tool add value

8.Managers needs to
2.No claim codes/ 6.Time to collect all send to CFO all 1.Missig information
charging information travel forms/tables requests via e-mail on cost estimation

3.Missing client 4.No project number

7.Authority/approval 9.Poor communication
approval for with Warsaw included and
issue in place when
additional manager not in place travel desk no customer
costs like AMEX number included

12.Managers miss 10.Printing forms and 21.Travel details not 5.No inviitation e-mail
information about giving to manager shared with manager with client approval for
traveling policies for approval nor hosting site costs coverage

23.Why to store all 9.No travel policy

15.Gathering approvals 13.Time spent on
docuemnts if they are awareness for Gliwice
from CFO/CEO collecting the travel
sent by e-mail before site
request forms from
employees
16.Why to use CFO 11.Lack of policy and
& CEO for each 24.Hard to find past procedures knowledge
of the travels 17.Time spent on giving travel requests when among employees
as approvers? back approved forms needed
back to the employees
14.Additional time spent
25.Travel requests are on correcting the
18.Time spent on sent to Warsaw office travel request forms
collecting the forms once per week
and scanning
20.Need for correction
22.Need to go to due to fact that hotel
Finance Specialist is not on approved
to pass documentation hotel list
ISHIKAWA DIAGRAM – WASTE CATEGORIZATION
DATA COLLECTION

For data collection start-stop application was used. Activities Times were tracked.
PARETO – FINANCIAL SPECIALIST PERSPECTIVE

Pareto chart 100,00%

70 100%
94,72%
61,01 89,34% 90%
60
54,51 82,98%
80%
75,61%
50 46,46 70%
65,34%
60%
40
50%
46,60%
30
25,46 40%

20 18,28 30%
15,77
24,61% 13,33 13,09
20%
10
10%

0 0%
Time in hours

Collecting Reconciles Pass printouts to Pass printouts to Pass printouts to Collects printouts Stores printouts in Prepare f or
printouts f rom printout f orms Finance Manager Site Executiv e employ ee and f rom employ ee the of f ice desk weekly sending to
employ ee (CFO) f or (CEO) f or inf orms employ ee and stores f or Warsaw
approv al approv al that signed documentation
printouts are needs
ready f or
Activity
scanning
PARETO – EMPLOYEE PERSPECTIVE

Pareto chart 100,00%

200 189,99 100%
97,44%
92,36%
180 90%
84,16%
160 80%
75,86%
140 70%
68,08%

120 59,61% 60%

100 48,50% 50%

35,89%
80 40%
66,75
58,78
60 30%
44,84 41,22 43,90 43,43
40 20%
26,87
20 13,57 10%

0 0%
Time in hours

Filling trav el Pass original Printing trav el Gather Manager Contact WarsawSend to manager Collect Scanning Prepare
request f orms & documents back request f orm, approv al on Trav el Desk f or v ia e-mail documents to be approv ed documentation
inv itation details to of f ice business trip printed f orms Hotel/Flight scanned documentation, f or Finance
in manager f or f orm & inv itation reserv ation sav ing as PDF Specialist
excel/sy mphony storage e-mail
f ile Activity
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Ben Goodman – Leader, Ann Smiths & Laura Wilkins - Finance Specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

ROOT CAUSE ANALYSIS & SOLUTIONS PROPOSAL
VALUE STREAM MAP – TO BE PROCESS

22 23
24
Employee Manager CFO CEO Employee 25
Fills Travel Receives e- Receives e-
mail with link & Receives e-
Request in mail with link & mail with link & Asks Travel
Employee application and access to E- access to E- Desk for hotel
Travel access to E-
receives submits for Travel Travel reservation & Employee
manager database to database to transport
invitation review & database to ready for
review & review & travel
for travel validate validate
employee validate
employee employee
travel request travel request
E-travel travel request
1 4 E-travel
application / 7 E-travel
2 E-travel E-travel application /
3 database application / 14 database
6 5 database application / application /
9 database database
18 19 20
8 15
10 11 12 17
16 21
Conditional action 13
Validates travel
request. If OK
approves and
pass to
employee. When
not – employee
needs to correct

start stop
32 – 143 15 - 95 4 – 232 4 – 67 2 – 57
minutes minutes minutes minutes minutes

20 - 120 0 – 53 10 – 1190 25 – 970 65 – 460 15 – 45

minutes minutes minutes minutes minutes minutes

CHANGING YELLOW COLOUR TO GREEN MEANS THAT pain point / waste IS eliminated

29
PRIORITIZATION MATRIX
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Ben Goodman – Leader, Ann Smiths & Laura Wilkins - Finance Specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Wojciech Josek – leader, Anna Nowak, Anna Kowalska – finance specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

 BEFORE - AFTER ANALYSIS

I-MR Chart of EMPLOYEE by C8 I-MR Chart of FINANCE by C11

E M P LO YE E P RZE D EM PLO YE E PO F INA NC E P RZED F IN A NC E P O
1 1 1
1 1 1
300 150
Indiv idual Value

Indiv idual Value

200
100
1

100 U C L=60,1
U
_ C L=77,3 50 _
X=40,4 X=40,4
0 LC L=3,4 LC L=20,7
1 33 65 97 129 161 193 225 257 289 1 33 65 97 129 161 193 225 257 289
O bser vation O bser vation

E M P LO YE E P RZE D EM PLO YE E PO F INA NC E P RZED F IN A NC E P O

200 1
1
80
1 1
150
M ov ing Range

M ov ing Range
1 1 60

100 11 40
1
50 U C L=24,19
U C L=45,4 20
__ __
M R=13,9 M R=7,40
0 LC L=0 0 LC L=0
1 33 65 97 129 161 193 225 257 289 1 33 65 97 129 161 193 225 257 289
O bser vation O bser vation
PROJECT RESULTS SUMMARY

1 FTE of travel administrative support

1 FTE Financial might be released and assigned to
Specialist more advanced financial tasks
released

Employees are not wasting

2,45 FTE of employee time
released their time on non-productive
activities.
Shorter time to request travel

Decreased number of rejected requests Basic

improvements that
Increased satisfction from the process
triggers positive
Better understanding of travel process results in
efficiency
Subject:
Travel proces improvement project
Project Leader & Team A3 Report
Wojciech Josek – leader, Anna Nowak, Anna Kowalska – finance specialists

Problem description Solutions proposal

Project Goals Solutions implementation plan

What Who When

Root Cause Analysis

Verification & stabilization

I-MR Chart of EMPLOYEE by C8
E MP LO YE E PRZED
1 1
E MP LO Y EE PO I-MR Chart of FINANCE by C11
1
300
F IN A N C E P RZE D FIN A N C E PO
1
Individual V alue

1 1
150
200

Individual V alue
1

100 100
U C L=77,3
_
X=40,4
U C L=60,1
0 LC L=3,4 50 _
X=40,4
1 33 65 97 129 161 193 225 257 289
LC L=20,7
Obser v a tion
1 33 65 97 129 161 193 225 257 289
E MP LO YE E PRZED E MP LO Y EE PO Obse r va tion
200
1
F IN A N C E P RZE D FIN A N C E PO
1 1
150
M oving Range

1 1
80
1

M oving Range
100 11 60
1
50 U C L=45,4 40
__
M R=13,9 U C L=24,19
0 LC L=0 20
__
1 33 65 97 129 161 193 225 257 289 M R=7,40
0 LC L=0
Obser v a tion
1 33 65 97 129 161 193 225 257 289
Obse r va tion
 Good project vs. Bad project

4 steps of improvement project

1. Analysis of AS-IS

2. Proposal of TO-BE

3. Implementation of solution

4. Verification & stabilization

Project structures - introduction
The project structure is based on temporary task forces and
project teams, which are formed to complete particular projects.
There are three basic types of project structures described in
management theory [Robbins 1990]:

• the „pure” project structure

• the project-matrix structure
• the mixed or hybrid project structure
TOP MANAGEMENT

Supply Production Sales and Marketing Finance and Accounting

Project Project
Manager Manager

Project A Project B
Defining and understanding
organizational structure
An organizational structure can be defined in many different ways.
Some authors treat it as “the manner in which organisation
components – its departments, divisions, boards, committees, or
any other subunits – are designed and interrelated” [Williams et.
al. 1995]

It could be seen also as “the established pattern of relationships

between the component parts of an organization, outlining both
communication, control and authority patterns. A structure
distinguishes the parts of an organization and delineates the
relationships between them” [Wilson and Rosenfeld 1990]
What is a project structure?

We can define project structures as modern organizational forms,

based on temporary teams or task forces which are created to perform
particular tasks or solve current problems. Those teams disappear
after achieving the established goals [see e.g. Handy 1994; Hall 1999;
Stoner, Wankel 1986].

There are three basic types of project structures described in

management theory: the pure project structure, the project-matrix
structure, and the mixed one [Kerzner 2006; Robbins 1990].
„Pure” project structure

TOP MANAGEMENT

Project Project Project Project

manager manager manager manager

Project A Project B Project C Project D

Project matrix structure

TOP MANAGEMENT

Supply Production Sales and Finance

Project A Marketing

Project
manager

Project
manager
Project B
Mixed / hybrid project structure

TOP MANAGEMENT

Supply Production Sales and Finance

Marketing

Project Project
manager manager

Project A Project B
Project structures – a heterarchy

Heterarchy can be defined as a multiplicity and transitivity of power

[Hedlund 1986].

The multiplicity of power results from many authority centres existing

at the same time, of which no one is dominating. On the other hand,
the transitivity of power means instability of authority centres and
frequent power shifts.

In a similar vein, Fairtlough [2007] describes heterarchy as a multiple

and balanced power and he distinguishes it strongly from singular
and stable hierarchy. The author explains the balance in executing
power in heterarchical systems using analogy to the paper, scissors,
and stone game, where none of elements is dominant from the
nature.
Project structures - introduction

TRADITIONAL PROJECT
CHARACTERISTIC
STRUCTURE STRUCTURE
Definition of tasks Strict and rigid Flexible
Number of management levels High Low
Communication Vertical and formal Lateral and informal
Control Centralized Diverse (self-
Influence Formal authority control)
Managerial focus Loyalty Expertise
Number of procedures Medium/High Effectiveness
Formalization of rules High Low/Medium
Low
Barriers and limitations of project
structures

• competence regulation problem

• boundaries and competition among projects
• low acceptance of heterarchy
• low level of safety needs fulfillment
• limited knowledge creation and exchange
Hypertext structure for knowledge management in projects

Nonaka developed the “hypertext organization”, which blends the strengths of bureaucratic
efficiency and standardization with those of task force flexibility and dynamism. The
hypertext organization combines the “business system layer”, the “project team layer”, with a
value-added feature of the hypertext organization called the “knowledge base layer”. In the
business system layer routine, day-to-day operations are carried out. It operates along the lines
of the bureaucratic model. It is here that products and services are delivered and it is here
where the vast majority of tacit knowledge is found within the organization. The business
system layer is that part of the organization that deals directly with the customers and whole
environment. The project team layer is where multiple project teams engage in knowledge-
creating activities, such as new strategies or product development. This layer operates along
the lines of the task force model whereby individuals are drawn from their normal
responsibilities to participate in a project team with a specific objective and time frame for
completion. This is where knowledge conversion takes place, pulling tacit knowledge from
individuals from the business system layer and engaging this knowledge towards developing
new concepts, ideas and products. Once the project is completed, individuals return to their
normal roles and responsibilities within the business system layer. The knowledge base layer
is where knowledge generated in the above two layers is codified and stored to ensure
accessibility to everyone in the organization. The most effective organizational knowledge
base is structured around organizational intent – vision, long-term objectives, performance
expectations. What very important is that staff must be capable of moving between these
three layers with relative ease and ability to separate their mindset and business practice.