Project Management Context
(Part 3)
Dr.Çağatay ÜNDEĞER
Instructor
Bilkent University, Computer Engineering
Middle East Technical University, Game Technologies
&
General Manager
SimBT Inc.
e-mail : cagatay@undeger.com
CS-413
Bilgisayar Mühendisliği Bölümü – Bilkent Üniversitesi – Fall 2009
1
Project Management Context
•
•
•
•
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Project Stakeholders
–
Introduction
–
Who are stakeholders?
Organizational Structures
–
Introduction
–
Functional Organization Structure
–
Projectized Organization Structure
–
Matrix Organization Structure
–
Project Management Office (PMO)
Standards and Regulations
–
What is a standard?
–
What is a regulation?
Life Cycle of a Tender
–
Introduction
–
From the view point of Employer & Tenderer
–
Summary
2
Project Stakeholders
• A project is started because of having
someone interested in
– Outcome of a project,
• Which is required to satisfy their
organizational needs.
• Stakeholders are;
– Individuals who cause a project be initiated
– Those who are most directly affected by
the project’s completion.
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Project Stakeholders
• Actively involved in the project;
• Have influence over project and its results.
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Possible Stakeholders
• Customers,
– Who require outcome of project,
• Sponsors,
– Who support project financially,
• Project manager,
• Project team members,
• Project management office,
• Other influencers,
– Who has influence on project due to their
organizational position and power.
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Project Management Context
•
•
•
•
CS-413
Project Stakeholders
–
Introduction
–
Who are stakeholders?
Organizational Structures
–
Introduction
–
Functional Organization Structure
–
Projectized Organization Structure
–
Matrix Organization Structure
–
Project Management Office (PMO)
Standards and Regulations
–
What is a standard?
–
What is a regulation?
Life Cycle of a Tender
–
Introduction
–
From the view point of Employer & Tenderer
–
Summary
6
Organizational Structures
• Organizational structures can differ
dramatically from one company to another.
• Organizations may or may not be project
based.
• Those that are not project based;
– Usually lack management systems
necessary for efficient and effective project
management.
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7
Common
Organizational Structures
• Functional Organization Stucture
• Projectized Organization Stucture
• Matrix Organization Stucture
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Functional Organization
Stucture
• A traditional hierarchical organization (like a
pyramid) with;
– Top management at the peak,
– Direct workers at the bottom,
– And middle managers in between.
Project coordination
Functional Manager
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Chief Executive
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
9
Functional Organization
Stucture
• Each employee has;
– One clearly designated supervisor.
• Employees are grouped by their specialization
such as;
– Accounting, marketing, information systems,
and manufacturing.
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Functional Organization
Stucture
• People within different functional areas work
separately on different parts of the project.
• One group takes their part of the project,
– Edits it, and
• Throws it to the next group.
• In IT projects, because of weak coordination
between departments,
• This structure causes more work for
everybody,
• Results with a product less than what it
could be.
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Projectized Organization
Stucture
• At the other extreme.
• A structure where people from different
functional backgrounds work together through
life time of a project.
Project coordination
Project Manager
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Chief Executive
Project Manager
Project Manager
Staff
Staff
Staff
Staff
Staff
Staff
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Projectized Organization
Stucture
• Designed specifically to provide necessary
resources for the project work.
• In IT projects,
– Because of weak coordination in project
groups,
• Experienced personnel, possibly
required for multiple projects, are not
effectively used among projects.
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Matrix Organization Stucture
• In the middle spectrum.
• A structure that typically crosses;
– Functional design on one axis and
– Some other design characteristic (e.g.
project managers) on the other axis.
Chief Executive
Functional
Manager
Functional
Manager
Staff
Staff
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Staff
Manager of
Project Managers
Functional
Manager
Staff
%
Project coordination
Project Manager
Staff
%
Staff
%
Project Manager
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Matrix Organization Stucture
• Project staffs are designated to more than
one supervisor;
– Report to both;
• Project managers and
• Head of their functional areas.
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Types of Matrix Stuctures
• Weak matrix structures
• Strong matrix structures
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Weak matrix structures
• More near to functional organizations.
• Project managers;
– Have less authority on projects,
– Act like as coordinators than as
independent managers.
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Strong matrix structures
• More near to Projectized organizations.
• Project managers are dedicated to projects
with full authority.
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Strong matrix structures
• More difficult to manage a matrix
organization.
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Project Management Office
(PMO)
• An organizational unit created;
– To centralize and coordinate the projects
within an organization.
• Matrix structures often have a PMO.
• Projectized structures almost always have a
PMO.
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Project Management Context
•
•
•
•
CS-413
Project Stakeholders
–
Introduction
–
Who are stakeholders?
Organizational Structures
–
Introduction
–
Functional Organization Structure
–
Projectized Organization Structure
–
Matrix Organization Structure
–
Project Management Office (PMO)
Standards and Regulations
–
What is a standard?
–
What is a regulation?
Life Cycle of a Tender
–
Introduction
–
From the view point of Employer & Tenderer
–
Summary
21
Standard
• A document approved by a recognized body;
– Provides, for common and repeated use,
rules, guidelines, or characteristics
• For products, processes or services,
• With which compliance is not mandatory.
• e.g. some software development standards
such as;
– IEEE Software development stds.
– High Level Architecture (HLA) M&S std.
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Regulation
• A document that;
– Specifies product, process or service
characteristics, including applicable
administrative provisions,
– With which compliance is mandatory.
• e.g. some safety regulations for production of
public goods.
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Project Management Context
•
•
•
•
CS-413
Project Stakeholders
–
Introduction
–
Who are stakeholders?
Organizational Structures
–
Introduction
–
Functional Organization Structure
–
Projectized Organization Structure
–
Matrix Organization Structure
–
Project Management Office (PMO)
Standards and Regulations
–
What is a standard?
–
What is a regulation?
Life Cycle of a Tender
–
Introduction
–
From the view point of Employer & Tenderer
–
Summary
24
Life Cycle of A Tender
(Definitions)
• Tender/Awarding :
– A process for purchasing a service or
material
• Employer/Administration/Client :
– Organization or person that requests to
purcase a service or material
• Tender Document :
– A set of documents prepared and issued
by the Employer for Tender purpose.
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Life Cycle of A Tender
(Definitions)
• Tenderer :
– Company submitting a proposal to the
Tender
• Tender Proposal :
– The proposal of the Tenderer to meet the
required service or material of the
Employer
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Life Cycle of A Tender
(Definitions)
• Tender Board/Commitee :
– A group of people authorized by Employer
• To select the best tender proposal
among the submitting ones
–According to Employer policies.
• Contractor :
– Company elected for providing the service
and materials specified in the Tender
document.
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Life Cycle of A Tender
(Definitions)
• Contract :
– Written agreement between Employer and
Contractor
• Setting forth the obligations of the
parties thereunder,
–Including, but not limited to;
»The performance of the work,
»The furnishing of labor & materials
and the basis of payment.
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Employer (Stage 1)
• The Employer determines his needs.
• Prepares a written document for his needs
– (Project Definition Document).
• Prepares a document for tendering process,
– Including conditions and formalities of purchasing
– (Conditions of Contract, and Accompanying
Documents).
• Determines tender closing date.
• Prepares a guideline for the Tenderers
– (Instructions to Tenderers).
• Issues the Tender.
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Employer (Stage 2)
• Employer issues the tender by
– Publishing it in the official gazette, and/or
– Sending invitation letters:
• To eligible companies or
• If it is a confidential project,
–To eligible companies having some;
»Quality Levels (e.g. ISO, CMMI)
»Security certificates (e.g. National,
NATO).
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Employer (Stage 3)
• Until the tender closing date, the Employer :
– May revise tender documents,
– May postpone tender closing date,
– May answers questions of Tenderers.
• Collects proposals until tender closing date and
– Pricing envelopes are only opened after this date.
• Examines proposals for procedural convenience, and
– May request Tenderer for correction of
inconvenience.
• Tenderers whose proposals do not satisfy procedural
requirements are eliminated from the tender.
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Employer (Stage 4)
• Employer starts evaluating valid proposals
and assigning points to them:
– Technical Evaluation,
– Company Qualification,
– Administrative Evaluation,
– Price Evaluation.
• Employer orders companies with respect to
their points.
• Employer selects:
– Either a winner company or
– A few winner companies (short list)
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Employer (Stage 5)
CASE 1 : A Winner Company
• In Case of a single winner company:
– Winner company is announced
– Employer;
• May bargain price,
• May request Best and Final Offer (BAFO), and
• Discuss administrative and technical conditions
and specifications with the winner.
– An agreement is made.
– A contract is signed by both parties.
– Project is initiated.
• In case of disagreement,
– Employer may call second eligible company for
contracting.
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Employer (Stage 5)
CASE 2 : A Short List
• In Case of multiple winner companies:
– Employer;
• May bargain prices,
• May request BAFO, and
• Discuss administrative and technical conditions
and specifications with each winner
– (This could be done in a meeting open to all
winners or in seperate meetings with
individual winners).
– Employer aim at obtaining best with lowest price.
– Employer selects the most beneficial winner.
– An agreement is made.
– A contract is signed by both parties.
– Project is initiated.
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Tenderer (Stage 1)
• Obtains Tender documents;
– If Emloyer requests a price for applying, pays it.
• Starts preparing a proposal:
– Examines project requirements and risks;
– Prapares a coarse project management plan;
• Decides on the architecture (or alternatives);
• Builds a work breakdown structure;
• Estimates resources (e.g. time, cost) required;
• Prepares a schedule if not given by the employer
• Prepares a price breakdown structure;
• Answers technical matters;
• Answers administrative matters;
– Prepares;
• Official letters, Tender forms, Guatantee letters.
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Tenderer (Stage 2)
• Asks Employer for clarifications of unclear
issues.
• Revises his proposal.
• Attaches;
– Hardware and software specification
documents,
– Company qualification documents:
• References,
• Certifications (e.g. ISO, CMMI),
• Any other related document.
• Finalize Tender proposal.
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Tenderer (Stage 3)
• Submits Tender proposal,
– Before Tender Closing Date;
– Tries to submit it as late as possible;
– Gets a verification document from Employer for his
submission.
• Waits for requests and decisions of Employer.
• In case called by Employer,
– Holds several meetings for agreement,
– May reduce the price, or
– Increase/decsrease specifications.
– Upon agreement,
• Signs a contract with the Employer, and
• Project is initiated.
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Summary
EMPLOYER
prepares tender
documents
EMPLOYER
gets support
of a consultant
TENDERER
gets tender
documents
EMPLOYER
publishes tender
documents
Project is
initiated
EMPLOYER &
TENDERER
signs the contract
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Tender closing date
EMPLOYER
EMPLOYER
(deadline for
collects and
answers questions
proposals)
evaluates proposals
TENDERER
prepares tender
proposal
EMPLOYER &
TENDERER
prepare contract
EMPLOYER
gets support
of a consultant
TENDERER
submits tender
proposal
EMPLOYER
may call the
second winner
EMPLOYER
may request correction
of inconveniences from
TENDERERS
EMPLOYER
calls a winner
EMPLOYER
for bargain
orders the
proposals
EMPLOYER
annonces winner
EMPLOYER
selects the most
benefical proposal
EMPLOYER
calls elected winners
for bargain
EMPLOYER
makes a decision
(continue or cancel)
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