home Investment What project parameters act as controllable ones? Managing the main parameters of the project. Artificial intelligence. Basic Concepts

What project parameters act as controllable ones? Managing the main parameters of the project. Artificial intelligence. Basic Concepts

Project can be considered as any sequence of activities and works that:

has a specific goal that must be achieved if certain characteristics are met

· has specific start and end dates

· has funding restrictions (if required by the project)

· consumes human and material resources (e.g. money, personnel, equipment)

· multifunctional (that is, intersects with various functional areas).

A project is a time-limited undertaking aimed at creating a unique product, service or result.

A project is a unique enterprise that involves the coordinated implementation of interrelated actions from various functional areas to achieve certain goals under time and resource constraints.

Projects are temporary in nature, while operations continue over time. Projects have specific start dates and completion dates. A project is complete when the project's goals and objectives are achieved. Sometimes projects end when it is determined that their goals and objectives cannot be achieved and the project is stopped. Activities involve work that continues without an end date and often repeat the same process.

Projects exist to create a product or service that did not previously exist. In this sense, the projects are unique.

Managed project parameters:

· volumes and types of work on the project;

· cost, expenses, expenses of the project;

· time parameters, including timing, duration and reserves for the completion of work, stages, phases of the project, as well as the interrelationships of work;

· resources required to implement the project: human, financial, material and technical, as well as resource limitations.

Managing project parameters is possible thanks to a special project management technology.

Project Time Management- project management section, which includes time-based project management processes necessary to ensure timely completion of the project, including: defining work, determining the sequence of work, estimating the duration of work, developing a schedule and monitoring the schedule.

· Project management according to time parameters is carried out through rationally drawn up calendar plans

· Coordinated work of all project participants is organized on the basis of calendar plans (work schedules).

· Development of a schedule or calendar plan is the determination of the start and end dates of the project work.

· Schedule plans are design and technological documents that establish a complete list of project work, their sequence and relationship, deadlines and duration, as well as performers and resources necessary to complete the project work.

· To complete the project, many plans are drawn up,

· Schedule plans are drawn up for the entire life cycle of the project and its stages, for various levels of management and project performers who have entered into contracts.

· A set of plans is a balanced system of project plans, the basis of which is the strategic (comprehensive) project plan.

· Such a plan links the various stages of the project into a single strategy, indicates the main milestones (control events) and the timing of their implementation.

· Project implementers who enter into a contract to perform a stage or set of works of the project take these target dates into account as directive time limits when planning their own work.

Basic functions

· management of the project subject area (substantive entity);

· quality management (result requirements, standards);

· management of temporary resources (time budget);

· cost management (financial and material budget).

Integrating functions

· project personnel management (selection, preparation, organization of work);

· communications management (monitoring and forecasting progress and results);

· contract management (contracting (concluding agreements) of performers, materials, etc.);

risk management (reducing the level of uncertainty in the project).

Project is a set of activities or work distributed over time aimed at achieving a goal. Examples of projects are the construction of buildings, complexes, enterprises, the development of a new type of product, the modernization of production, the development of a software product, etc.

The project has certain properties.

1. A project always has a clearly defined goal, which is expressed in obtaining some result. Achieving this result signifies the successful completion and completion of the project. For example, for a building construction project, the result is the building itself, accepted for operation.

2. The project has a clearly defined beginning, which coincides with the beginning of the first work aimed at achieving the goal. The beginning can be set prescriptively, or calculated as a result of drawing up a work plan for the project.

3. The project has a clearly defined end, which coincides with the end of the last work aimed at obtaining a given result. Like the beginning, the end of the project can be specified prescriptively, or calculated when drawing up a work plan. For example, for a building construction project, the end of the project coincides with the date of its commissioning/acceptance certificate.

4. The project is executed by a team, which includes the project leader, managers, and performers. In addition to the main team, it may involve third-party performers, teams and organizations that are involved on a temporary basis to perform individual work.

5. When implementing the project, material resources are used. Their nomenclature and quantity are determined by the nature of the project and the work included in it. So, when building a house, sand, crushed stone, cement, brick, etc. are used.

6. The project has a budget. The cost of the project consists of the cost of expended material resources, the cost of remunerating the team implementing it and other expenses associated with the characteristics of specific types of work.

7. The project has three types of restrictions.

· Budget restrictions set the maximum cost of the entire project or individual types of work.

· Time limits set deadlines for completing either the entire project or some work. For example, test trials should be carried out in the presence of a customer representative who will be present for a specified period of time.

· Resource limitations are determined by the limited composition of the team or schedules for the receipt of material resources.

Project life cycle– this is the period of time between the moments of its beginning and completion. It is divided into four phases.

1. Conceptual phase. Includes goal formulation, investment opportunity analysis, feasibility study (feasibility study) and project planning.

2. Project development phase. Includes determining the structure of work and performers, constructing work schedules, project budgets, developing design estimates, negotiations and concluding contracts with contractors and suppliers.

3. Project execution phase. Includes work to implement the project, including construction, marketing, personnel training, etc.

4. Project completion phase. In general, it includes acceptance testing, trial operation and commissioning of the project.

Project result- this is some product or useful effect created during the implementation of the project. The result, depending on the goal of the project, can be: scientific development, a new technological process, a software tool, a construction project, an implemented training program, a restructured company, a certified quality system, etc. The success of a project is judged by the extent to which its result corresponds to the planned level in terms of cost, revenue, innovation, quality, time, social, environmental and other characteristics.

Managed parameters of the project are:

· volumes and types of work;

· cost, expenses, expenses of the project;

· time parameters, including deadlines, durations and reserves for completing work and project stages, as well as the relationships between works;

· resources required to implement the project, including human or labor, financial, material and technical, as well as resource limitations;

· quality of design solutions, resources used, project components, etc.

Tasks project management are:

· defining the purpose of the project and conducting its justification;

· creating a project structure (subgoals, main stages of work to be completed);

· determination of the required volumes and sources of financing;

· selection of a team of performers, preparation and conclusion of contracts with third-party performers;

· determination of project deadlines:

· drawing up a schedule for its implementation:

· calculation of material resources required for the project, concluding contracts with suppliers;

· calculation of project estimates and budget:

· planning and risk accounting;

· ensuring control over the progress of the project.

Project management is the process of planning, organizing and managing work and resources aimed at achieving a set goal, usually within the constraints of time, available resources or cost of work.

Project management consists of three main stages:

· Formation of a project plan,

· monitoring the implementation of the plan and its prompt correction,

· completion of the project.

At the first stage, the project is justified, a list of works and available resources is compiled, resources are distributed among the works and the plan is optimized according to the criteria of project completion time, total project cost, uniform distribution of resources, and risk minimization. All necessary agreements with third-party contractors, contractors and suppliers are also concluded here. The second stage involves monitoring the implementation of the project in order to timely identify and eliminate emerging deviations from the original plan. In case of significant deviations, the original plan is revised and a new one is drawn up. Completion of a project means the completion of certain regulated actions necessary to complete and terminate work on the project. For example, signing a certificate of acceptance/delivery of completed work.

Currently, network planning and management methodology is used for automated project management. This methodology was developed in 1956 by specialists from DuPont and Remington Red, M. Walker and D. Kelly, for a project to modernize DuPont factories. An impressive result of its use is the design by Lockheed Corporation of the Polaris missile system to equip US Navy submarines. As a result of applying network planning methods, the work was completed two years ahead of schedule! One example of the successful application of this method in Russia is the restoration of the Cathedral of Christ the Savior in Moscow.

Network planning and management consists of structural and scheduling planning and operational management.

Structural planning consists in dividing the project into stages and work, estimating their duration, and determining the sequence of their implementation. The result of structural planning is a network work schedule, which is used to optimize the project in terms of duration.

Scheduling consists in drawing up a time diagram of work and distributing labor resources (performers) between works. The result of scheduling is a Gantt chart, which graphically displays work periods on the time axis. At this stage, optimization of project resources and budget can be performed.

Operational management consists of regularly comparing the actual work schedule with the planned one. The result of serious deviations is that decisions are made to change the original structural or schedule plan.

INTRODUCTION

It is worth noting that throughout history, man creates something almost continuously. Therefore, it can be argued that the history of project management began simultaneously with the history of Homo sapiens, which differs from animals precisely in the ability to consciously and purposefully influence the world around us in order to change it.

In countries with developed economies, in modern conditions the creation of extraordinary objects or services, or in other words - unique fruits of human activity, is highly valued. Therefore, not only in the world economy, but also in Russia, there has been an awareness of the importance of this skill, that is, the ability to manage projects. The time has come for a new profession with its own specific functions - project manager: world practice notes that the historical and social need for this is ripe.

BASIC CONCEPTS OF PROJECT MANAGEMENT

Project management

The concept of “project” refers to a set of interrelated activities designed to achieve, within a given period of time and within a specified budget, set objectives with clearly defined goals.

The general features of the project are:

changes - the main content of the project;

time-limited goal;

limited time duration of the project;

project budget;

limited resources required;

complexity;

legal and organizational support of the project;

differentiation from other intentions and activities.

A project is always aimed at results, at achieving certain goals, at a specific subject area.

The result of a project is understood as the product, results, and beneficial effect of the project. The result, depending on the type/goal of the project, can be: scientific development, new technological process, software tool, construction project, implemented training program, restructured company, certified quality system, etc.

The success of a project (result) is judged by the extent to which it (result) corresponds to the planned level in terms of cost/income, innovation, quality, time, social, environmental and other characteristics.

The project product is a manufactured product or service that can be measured and which can be either the final link in the production chain or an element (the project product is a narrower concept than the result).

In addition to the project, the discipline of project management operates with such concepts as process, project program and project portfolio.

A process is a sequence of actions to perform a function, for example the activities of a purchasing or accounting department. This is not a one-time event aimed at achieving certain results, but rather ongoing actions. For example, the materials procurement process may be part of a project.

A program is a collection of interrelated projects, the management of which is coordinated to achieve benefits and a degree of controllability that is not available when managing them separately.

In most cases, program projects are united by a common goal. For example, the holding of the Olympics can be considered a project program. The holding of the Olympics can be considered as one big project. Such a project will include a large number of diverse works (construction of new buildings, roads, advertising campaigns, training a team of athletes, cleaning the city, creating a mascot, etc.), brings together a huge number of participants and interested parties, and provides many detailed goals that lead to the main goal - successful holding of the Olympics. Due to complexity and complexity, large volumes of work are usually divided into separate blocks or projects.

An example of a program implemented by a specific organization is the development of a new city microdistrict. The program includes the following projects:

construction of houses;

road construction;

landscaping;

construction of public buildings;

sale of space, etc.

Programs may also involve repetitive or cyclical work, for example, the periodical publication of a magazine is itself a continuous process of operations, whereas the production of an individual issue is a project.

Project portfolio is a set of projects, programs and other works combined together for the purpose of effectively managing these projects to achieve the strategic goals of the organization.

The project portfolio may not have time restrictions for implementation.

Thus, the difference between a project program and a portfolio is that in a program, the projects in it are combined to achieve better manageability, and the portfolio is combined to achieve strategic goals, most often expressed in financial indicators.

In companies, a project portfolio is most often called a set of projects in one business area, implemented to achieve the strategic goals of a given business area. For example, a portfolio of projects can be considered a portfolio of IT projects, or a portfolio of marketing projects.

Program and project management focuses on “doing things right,” while portfolio management focuses on “doing the right things.”

Project management is the process of directing all project activities from inception to completion. This process is a methodology for organizing, planning, managing, coordinating human and material resources throughout the life cycle of a project, aimed at effectively achieving its goals by applying a system of modern methods, techniques and management technologies to achieve the results defined in the project in terms of the composition and scope of work, cost, time, quality.

Project management methodology includes project analysis, the purpose of which is to determine the results (value) of the project.

The following types of design analysis are distinguished:

technical,

financial,

commercial,

ecological,

organizational,

social,

economic

The controllable project parameters are:

· volumes and types of work on the project;

· cost, expenses, expenses of the project;

· time parameters, including deadlines, durations and reserves for completing work, stages, phases of the project; as well as the relationships between the works;

· resources required to implement the project, including: human or labor, financial resources, logistical resources, divided into construction materials, machinery, equipment, components and parts, as well as resource limitations;

· quality of design solutions, resources used, project components, etc.

The project and the process of its implementation and implementation are a complex system in which the project itself acts as a managed subsystem, and the managing subsystem is project management.

The project has a number of properties that it is advisable to remember, as this helps to methodically correctly organize the work on its implementation:

· the project arises, exists and develops in a certain environment, called the external environment;

· the composition of the project does not remain unchanged in the process of its implementation and development: new elements (objects) may appear in it and some of its elements may be removed from its composition;

· a project, like any system, can be divided into elements, and certain connections must be defined and maintained between the separated elements.

In business planning practice, three aspects of the project environment are usually studied:

· political - this is the attitude of federal and local authorities to the project,

· territorial - i.e. studying competitive offers on the market for similar products,

· environmental, related to the need to ensure the environmental safety of the project.

Basic concepts of project management A project is a set of activities or work distributed over time aimed at achieving a set goal. Achieving this result signifies the successful completion and completion of the project. For example, for a building construction project, the result is the building itself accepted for operation. Like the beginning, the end of a project can be specified prescriptively or calculated when drawing up a work plan.

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Introduction

1.1. Basic Project Management Concepts

Project is a set of activities or work distributed over time aimed at achieving a goal. Examples of projects are the construction of buildings, complexes, enterprises, the development of a new type of product, the modernization of production, the development of a software product, etc.

The project has certain properties.

Project life cyclethis is the period of time between the moments of its beginning and completion. It is divided into four phases.

Conceptual phase. Includes goal formulation, investment opportunity analysis, feasibility study (feasibility study) and project planning.
Project development phase. Includes determining the structure of work and performers, constructing work schedules, project budgets, developing design estimates, negotiations and concluding contracts with contractors and suppliers.
Project execution phase. Includes work to implement the project, including construction, marketing, personnel training, etc.
Project completion phase. In general, it includes acceptance testing, trial operation and commissioning of the project.

Project resultthis is some product or useful effect created during the implementation of the project. The result, depending on the goal of the project, can be: scientific development, a new technological process, a software tool, a construction project, an implemented training program, a restructured company, a certified quality system, etc. The success of a project is judged by the extent to which its result corresponds to the planned level in terms of cost, revenue, innovation, quality, time, social, environmental and other characteristics.

Managed parametersof the project are:

volumes and types of work;
cost, expenses, expenses of the project;
time parameters, including deadlines, durations and reserves for completing work and project stages, as well as relationships between works;
resources required to implement the project, including human or labor, financial, logistics, and resource limitations;
quality of design solutions, resources used, project components, etc.

Tasks project management are:

determining the purpose of the project and conducting its justification;
creating a project structure (subgoals, main stages of work to be completed);
determining the required volumes and sources of financing;
selection of a team of performers, preparation and conclusion of contracts with third-party performers;
determination of project deadlines:
drawing up a schedule for its implementation:
calculation of material resources required for the project, concluding contracts with suppliers;
calculation of project estimates and budget:
planning and risk accounting;
ensuring control over the progress of the project.

Project managementis the process of planning, organizing and managing work and resources aimed at achieving a set goal, usually within the constraints of time, available resources or cost of work.

Project management consists of three main stages:

creating a project plan,
control over the implementation of the plan and its prompt correction,
completion of the project.

Network planning and managementconsists of structural and scheduling planning and operational management.

Structural planningconsists in dividing the project into stages and work, estimating their duration, and determining the sequence of their implementation. The result of structural planning is a network work schedule, which is used to optimize the project in terms of duration.

Schedulingconsists in drawing up a time diagram of work and distributing labor resources (performers) between works. The result of scheduling is a Gantt chart, which graphically displays work periods on the time axis. At this stage, optimization of project resources and budget can be performed.

Operational managementconsists of regularly comparing the actual work schedule with the planned one. Major deviations result in decisions to change the original structural or schedule plan.

1.2. Overview of project management systems

Project management systemsform a separate software sector, which is quite widely represented on the Russian market. The emergence of such systems has contributed to the transformation of the art of project management into a science in which there are clear standards, methods and technologies.

The standard developed by the Project Management Institute has been adopted as a national standard in the USA (ANSI standard).
Quality standard in project management ISO 10006.

The use of these technologies contributes to the timely implementation of projects within the allocated budgets and with the required quality.

Project management systems are used to solve the following main tasks.

Structuring and description of the composition and characteristics of the work, resources, costs and income of the project.
Calculation of the project execution schedule taking into account all existing restrictions.
Determination of critical operations and time reserves for the execution of other project operations.
Calculation of the project budget and distribution of planned costs over time.
Calculation of the time distribution of the project's needs for basic materials and equipment.
Determination of the optimal composition of project resources and distribution of their planned load over time.
Risk analysis and determination of necessary reserves for reliable project implementation.
Determining the probability of successful implementation of policy indicators.
Keeping records and analyzing project execution.
Modeling the consequences of management influences in order to make optimal decisions.
Maintaining project archives.
Obtaining the necessary reports.

Currently, several project management systems are the most popular on the Russian market.

Microsoft Office Project 2007this is a comprehensive solution from Microsoft for corporate project management, which allows you to manage projects of any complexity and includes the family of the following software products:

MS Office Project Standard entry-level package for managing simple projects;
MS Office Project Professionala package for professional project management of any complexity at any level of management;
MS Office Project Server a server product that is used for interaction between project managers when managing distributed projects;
MS Office Project Web Access MS Project web interface, allowing project participants to access project information via Internet Explorer.

Spider Project Professional (there are also Desktop and Lite versions, developed by "Spider Management Technology") - a project management package designed and developed taking into account practical experience, needs, features and priorities of the Russian market. This package is the only domestic development among the popular project management systems in Russia.

This package, unlike its Western counterparts, has the following features:

built-in system for risk analysis and reserve management for timing and cost of work;
the ability to create, store and include standard project fragments in projects;
organization of group work and multi-project management optimized for Russian conditions.

Company software products Primavera Inc:

Primavera Project Planner Professionalprofessional version, designed to automate project management processes in accordance with the requirements of PMI (Project Management Institute) and ISO standards. Primarily, this package is intended for use as part of a corporate information system, although it can also work autonomously, helping to solve problems of scheduling and network planning, determining the critical path, resource leveling, and other tasks of modeling projects, project groups, portfolios and programs.
SureTrack Project Manager focused on monitoring the implementation of small projects or fragments of large projects. Can work both independently and in conjunction with Project Planner in a corporate project management system.

Open Plan (developed by Welcom Software Technology, now Deltek) provides full-scale multi-project management, critical path planning and optimization of resource utilization across the enterprise. Can be effectively used at all levels of control and project management from senior management and project managers, to heads of functional departments and ordinary performers.

Open Plan allows managers at different levels to perform the following functions:
create operational project plans taking into account various constraints;

determine the priority level of projects;
set the relative importance of projects for resource allocation;
minimize risks;
analyze the progress of work.

Welcom suggests using the professional and “light” versions of the product together (OpenPlan Professional + OpenPlan Desktop), as they are fully integrated.

For creating computer modelproject using one of the mentioned systems, you need to take the following steps.

Describe the project in detail create a hierarchical structure of work.
Specify which cost components will be used for financial analysis and project management.
Make a list of operations (works, tasks) of the project and set their characteristics.
Make a list of project resources and set their characteristics,
Set relationships (restrictions on the order of execution) of project operations.
Assign resources to perform project activities.
Assign costs to project activities, resources, and assignments.
Set restrictions on financing, supplies, and timing of operations.
Draw up a schedule for the execution of project work, taking into account all restrictions.
Optimize the composition of used resources.
Determine the budget and time distribution of planned project costs.
Identify and model risks and uncertainties.
Determine the necessary reserves, costs and requirements for materials to fulfill the planned indicators with the specified reliability.
Provide planned information to management and performers.

During the execution of the project, these systems allow.

Keep records.
Analyze deviations of execution from planned.
Predict future project parameters.
Model management influences.
Maintain project archives.

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The controllable project parameters are:

Scope and types of work on the project;

Cost, expenses, expenses of the project;

Time parameters, including timing, duration and reserves for the completion of work, stages, phases of the project, as well as the interrelationships of work;

Resources required to implement the project, including: human or labor, financial resources, logistics, divided into construction materials, machinery, equipment, components and parts, as well as resource limitations;

The quality of design solutions, resources used, project components, etc.

The project and the process of its implementation and implementation are a complex system in which the project itself acts as a managed subsystem, and the managing subsystem is project management.

Project environment

The project has a number of properties that it is advisable to remember, as this helps to methodically correctly organize the work on its implementation:

The project arises, exists and develops in a certain environment, called the external environment;

The composition of the project does not remain unchanged in the process of its implementation and development: new elements (objects) may appear in it and some of its elements may be removed from its composition;

A project, like any system, can be divided into elements, and certain connections must be defined and maintained between the separated elements.

The division of the entire sphere of activity in which a project appears and develops into the “project” itself and the “external environment” is to a certain extent arbitrary. The reasons for this are as follows:

1. The project is not a rigid, stable formation: a number of its elements during the implementation of the project can change their location, moving into the project from the external environment and back.

2. A number of elements of the project can be used both within and outside of it. A typical example would be specialists who simultaneously work both on the implementation of a specific project and on solving some other problems (in particular, on the implementation of some other project).

A schematic representation of the project and its environment is shown in Fig. 1.7.

Attention should be paid to the transition zone through which communication and movement of elements are carried out between them, participating in one way or another in the work of its implementation.

In business planning practice, three aspects of the project environment are usually studied:

The political aspect, namely the attitude of federal and local authorities to the project;

Territorial aspect, including the study of competitive offers on the market for similar products;

Environmental aspect related to the need to ensure the environmental safety of the project.

Figure 1.7. - The project and its surroundings

Project cycle

The period of time between the moment a project appears and the moment it is liquidated is called project cycle(they also say - "project life cycle»).

Project life cycle is the initial concept for studying the problems of financing project work and making appropriate decisions.

Each project, regardless of its complexity and the amount of work required for its implementation, goes through certain states in its development: from the state when “the project does not exist yet” to the state when “the project no longer exists.” The basic structure of the project cycle is shown in Fig. 1.8.

For business people, the beginning of a project is associated with the beginning of its implementation and the beginning of investing money in its implementation.

Drawing. 1.8. - Fundamental structure of the life cycle of a traditional investment project

Note. The range of resource requirements depends on the type and complexity of the project.

The end of the project's existence can be:

Commissioning of facilities, beginning of their operation and use of project results;

Transfer of personnel performing the project to another job;

Achievement by the project of the specified results;

Termination of project financing;

Start of work to introduce major changes to the project that were not provided for in the original plan (modernization);

Decommissioning of project facilities.

Usually, both the fact of the start of work on a project and the fact of its liquidation are documented in official documents.

The states through which a project goes are called phases(stages, stages).

There is no universal approach to dividing the project implementation process into phases. When solving such a problem for themselves, project participants must be guided by their role in the project, their experience and the specific conditions of the project (see Figures 1.9 and 1.10). Therefore, in practice, dividing a project into phases can be very diverse, as long as such division identifies some important control points (“milestones”), during which additional information is reviewed and possible directions for the development of the project are assessed.

In turn, each allocated phase (stage) can be divided into phases (stages) of the next level (subphases, substages), etc.

In relation to very large projects, for example, the construction of a subway, the development of an oil and gas field, etc., the number of phases and stages of their implementation can be increased.

The allocation of additional stages in large projects is associated not only with the long duration of construction of these facilities (10–15 years), but also with the need for more careful coordination of the actions of the organizations participating in the project.

All project activities occur interdependently in time and space. However, it is almost impossible to ensure an unambiguous distribution of phases and stages of the project in a logical and time sequence. The problems associated with this are solved with the help of the experience, knowledge and skill of the specialists working on the project.

Figure 1.9. - World Bank Project Cycle (according to Waren S. Baum “Project Cycle”, World Bank publication, 1993)

Figure 1.10. - Life cycle of a product system (using the example of a software product)

Table 1.1 - Contents of project life cycle phases

Initial (pre-investment)	Investment (construction)	Operational
Pre-investment studies	Development of design and estimate documentation, project planning and preparation for construction	Conducting tenders and concluding contracts; organization of purchases and supplies, preparatory work	Construction and installation works	Completion of the construction phase of the project
1. Study of forecasts and directions of development of the country (region, city). 2. Formation of an investment plan. 3. Preparation of a petition (Declaration) of intent. 4. Preliminary approval of the investment plan. 5. Drawing up and registration of offers. 6. Development of investment justification, assessment of project viability. 7. Selection and preliminary approval of the location of the object. 8. Ecological justification. 9. Expertise. 10.Preliminary investment decision. 11. Development of a preliminary project plan.	1. Development of a plan for design and survey work 2. Assignment for the development of a feasibility study (project) for construction and development. 3. Coordination, examination and approval of the feasibility study (project). construction 4. Issuance of design assignments. 5. Development, coordination and approval of working documentation. 6. Making the final investment decision. 7. Land allocation for construction. 8. Construction permit. 9. Assignment for the development of a work project. 10. Development of a project plan.	1. Tenders for design and survey work and conclusion of contracts. 2. Tenders for the supply of equipment and conclusion of contracts. 3. Tenders for contract work and conclusion of contracts. 4. Tenders for consultant services and conclusion of contracts. 5. Development of plans (schedules) for the supply of resources. 6. Preparatory work for construction.	1. Development of an operational construction plan 2. Development of machine operation schedules. 3. Carrying out construction and installation work. 4.Monitoring and control. 5. Adjustment of the project plan and operational construction plan (change management) 6. Payment for work performed and supplies.	1.Commissioning works. 2. Delivery and acceptance of the object. 3. Closure of the tract. 4. Demobilization of resources. 5. Analysis of results.	1.Operation. 2. Repair. 3. Development of production. 4. Closing the project - decommissioning - dismantling of equipment - modernization (start of a new project).

Project structuring

Structuring, the essence of which comes down to breaking the project into hierarchical subsystems and components, is necessary so that the project can be managed.

In terms project management The structure is a “tree” of product-oriented components represented by equipment, works, services and information obtained as a result of the project.

They also say that project structure is the organization of connections and relationships between its elements. Investment projects, as a rule, have a hierarchical, variable structure, which is formed in relation to specific operating conditions.

The project structure is designed to define the product to be developed or produced and relates the elements of work to be performed - both to each other and to the ultimate goal of the project.

In addition, the process of project structuring is an integral part of the overall process of planning the project and defining its goals, as well as preparing a consolidated (master) project plan and a matrix for assigning responsibilities and duties. This process is relatively easier for so-called “tangible projects” related to construction than for projects related to, for example, software development.

Thus, The main tasks of project structuring include the following:

Breaking down the project into manageable blocks;

Distribution of responsibility for various elements of the project and linking work with the organization’s structure (resources);

Accurate assessment of the necessary costs - funds, time and material resources;

Creation of a unified base for planning, budgeting and cost control;

Linking project work with the company’s accounting system;

The transition from general, not always specifically expressed, goals to specific tasks performed by company divisions;

Definition of work packages/contracts.

The process of project structuring can be presented as the following sequence of actions (Fig. 1.11):

1. Definition of the project - the nature, objectives and content of the project, as well as all the final products of the project with their exact characteristics, must be fully and clearly defined. In this situation, it is useful to use a hierarchy of goals, showing the complete chain of end results and/or means to achieve them.

2. Level of Detail – You need to think about the different levels of detail in the plans and the number of levels of elements in the project breakdown structure.

3. Process structure – a project life cycle diagram must be prepared.

4. Organizational chart - the organizational chart of the project should cover all groups or individuals who will work on the project, including people interested in the project from its external environment.

5. Product structure is a breakdown of the product into subsystems or components, including machinery and equipment, software and information software, services, and, where relevant, geographic distribution.

Figure 1.11. - Possible breakdown structure of the gas industry facility project

6. Chart of accounts in the organization - a system of codes used in structuring the project; should be based on the organization’s existing chart of accounts or the possibility of adjusting it.

7. Project Breakdown Structure – The above four points (3 – 6) are combined into a single project breakdown structure.

8. The general master plan of the project can be further detailed in the process of finding the critical path. As the project progresses, the master plan can be used for reporting to senior management.

9. Responsibility distribution matrix - as a result of analyzing the relationship between the elements of the project structure and the organization, a matrix is built, where the elements of the project structure become rows, and the elements of the company’s organization diagram become columns (or vice versa). In the cells of the matrix, the levels of responsibility of certain actors are indicated using various symbols or codes.

10. Working chart of accounts - if necessary, you should work out a system of sub-accounts that are “joined” with the chart of accounts.

11. Working network schedule - implementation of the first 10 steps allows you to develop a detailed schedule, including time and resource estimates for each of the works.

12. The task order system follows from the preliminary structure (clause 7) and the matrix (clause 9). At this stage, assignments must be absolutely specific in time and resources.

13. Reporting and control system.

Based on the steps taken, the so-called matrix of responsibility distribution, an example of which is presented in Fig. 1.12. The matrix “attributes” specific performers to each package of work.

To structure the project, a number of special models are used, namely:

Goal tree;

Decision tree;

Tree of works;

Organizational structure of performers;

Responsibility Matrix;

Network model;

Structure of consumed resources;

Cost structure.

In this case, the methods of structuring the project are fundamentally reduced to two:

- “top to bottom” – general tasks are determined, on the basis of which the project levels are further detailed;

- “bottom-up” – specific tasks are determined, and then they are generalized.

Goal tree- these are graphs, diagrams showing how the general goal of the project is divided into subgoals of the next level, etc. A tree is a connected graph expressing the subordination and interrelationships of elements. In this case, such elements are goals and subgoals.

The presentation of goals begins at the top level, then they are successively disaggregated. In this case, the main rule for disaggregating goals is completeness: each goal of the top level must be presented in the form of subgoals of the next level in an exhaustive manner.

Decision tree– graph, diagram, reflecting the structure of the optimization problem of a multi-step process. The branches of the tree represent the various events that may take place, and the nodes (vertices) represent the points at which the need for choice arises. Moreover, the nodes are different - in some, the choice is made by the project manager himself from a certain set of alternatives, in others, the choice does not depend on him.

In such cases, the project manager can assess the likelihood of one or another “solution”.

Tree of works. At each planning stage, it is necessary to divide the project work into parts. For example, during the technical design stage, the main parts of the project are usually obvious. In the future, when more details become known, these parts can be divided into appropriate sections. Finally, subsections and separate groups (“packages”) of work can be defined. This procedure is known as work breakdown structure (CPP, WBS).

Project name: Development of the Bovanenkovskoye Gas Condensate Field (GCF) Subproject name: Gas collection point (GP-1)
		Investment Research	Development of design documentation	Contracts	Construction	Exploitation
	Gas condensate field development department	-/+	+/-	+/-	+	+
	Department for construction of main gas pipelines and compressor stations*	-/+	+/-	+/-	+	+
	Nature Conservation Department	-/+	-/+	-/+	-/+	-/+
	Purchasing department		+/-	+	+	+/-
	ACS department	-/+	-/+	+/-	+/-	+/-
	Urban Planning Department	-/+	+	-/+	+/-	+/-
	Technical department	+/-	+	-/+	-/+	-/+
	Planning and production department	-/+	-/+	+	+/-	+
	Planning and financial department			+	+/-	+
	Accounting		-/+	+/-	+/-	-/+
	Railway construction department	-/+			+	+
	Legend: + - responsible person - takes part in the development -/+ - coordinates the output result * MG and CS - main gas pipelines and compressor stations

Figure 1.12. - Responsibility distribution matrix for structural units

Such a tree is a means of dividing a large, complex project into its components or an economic program into project components.

As more information becomes available in later design stages, the designer can add new levels to the project's work tree. The bottom level of the tree corresponds to work packages. A work package is also an independent financial unit. It should have a separate estimate, budget and expense report. Isolating work packages is a great convenience when developing a project network schedule. It is much easier to plan individual packages and then assemble the project network from the fragments than to develop the entire network without a project work tree.

In addition, the WBS serves another important purpose, namely the development of a structure for project administration. Thus, dividing the project into work packages satisfies two tasks: planning and operational management. Therefore, simultaneously with the development work, it is necessary to develop the organizational and administrative tree and link its structural units with work packages. From here the degree of suitability of the developed CPP tree will become clear.

Structural diagram of the organization (SSO). To ensure effective project management when developing a plan, you must:

Take into account all sections, stages and work of the project in the plan;

Take into account all organizations participating in the project in the plan;

Ensure effective management by distributing responsibilities.

The first requirement can be satisfied by breaking the project into work packages using the WBS. To satisfy the last two requirements, the developer must specify which organization is responsible for each package or level of the work tree. In other words, he must clearly define the levels and scope of responsibilities in the organizational structure. This can be done using an organization chart.

In this scheme, the project manager is at its top level, and at lower levels the departments required for the functional management of work are sequentially located. These levels sometimes correspond to CPP levels. For example, the department of the chief power engineer will be responsible for the “Power Transmission Lines” package of work.

Responsibility Matrix– connects work packages with executing organizations on the basis of WBS and MTR. The matrix identifies the main performers for work packages (Fig. 1.12).

Network models. As work on the project progresses, CPP and CCO trees are created, i.e., work packages with assigned performers are allocated, which makes it possible to prepare a network diagram of key events. Finally, it becomes possible to develop detailed network graphs corresponding to key events and goals. Because these networks do not represent the project as a whole, but rather its individual work packages, they are called network blocks or subnetworks. If work on several interdependent packages is carried out simultaneously, and for each of them it is necessary to develop a separate schedule, then each package is represented as a separate subnet.

A subnet can be part of a network diagram or be autonomous. Breaking down the network into subnets allows project personnel to concentrate on their own work. Each manager at his level can work independently of others in accordance with his own subnetwork, which frees him from the need to deal with a complete network diagram. For management, dividing the project into subnets allows for effective control. It can focus more on managing the most important (critical) subnets to save time, rather than constantly monitoring the entire network schedule. The structure developed in the process of creating the SPP, SSO and the network diagram of key events is preserved during the development of subnets. The tasks of structuring a set of project works and constructing network diagrams are described in more detail in Section. 2.

Structure of consumed resources. To analyze the means that are necessary to achieve the goals and subgoals of the project, resources of various types are structured. A hierarchically constructed graph records the resources required at each level to implement the project. For example, at the first level, material, technical, labor and financial resources are determined. Then material and technical resources are differentiated into building materials, machinery, and equipment. Construction materials - stored and non-stored, etc.

Cost structure. The methodology for structuring costs is similar to that used in the process of developing the structure of consumed resources.

Related information.