Project management: Управление проектами

HIGHER EDUCATION







DAVID D. TSITELADZE





PROJECT MANAGEMENT




TEXTBOOK









                znanium.com




электронно-библиотечная система

Moscow
INFRA-M

2023

УДК 005.8+811.111(075.8)
ББК 65стд1-21:81.432.1Англ.я73
     T89


       Reviewers:
          V.M. Anshin, Doctor of Economics, Professor, National Research University “Higher School of Economics”;
          V.A. Lapidus, Doctor of Technical Sciences, Professor, Chairman of the Board of Directors of “Prioritet” Group of Companies




       Tsiteladze D.D.
T89      Project Management : textbook / D.D. Tsiteladze. — Moscow : INFRA-M,
       2023. — 339 р. : il. — (Higher Education). — DOI 10.12737/1859087.

          ISBN 978-5-16-017502-7 (print)
          ISBN 978-5-16-110022-6 (online)
          The textbook outlines modern concepts and methodology of management projects that need to be mastered when studying the discipline “Project management”. The textbook materials are based on the recommendations of the International Project Management Association IPMA (IPMA ICB and IPMA OCB) and the international standard ISO 21500 and ISO 21502.
          Textbook materials help students develop the necessary competencies in accordance with federal state educational standards of higher education of the last generation in the direction of “Management”.
          For undergraduate and graduate students of universities studying management. May be used in practice by managers and specialists related to project management in organizations of various profiles.

УДК 005.8+811.111(075.8)
ББК 65стд1-21:81.432.1Англ.я73













Данная книга доступна в цветном исполнении в электронно-библиотечной системе Znanium




ISBN 978-5-16-017502-7 (print)
ISBN 978-5-16-110022-6 (online)


© Tsiteladze D.D., 2023

                Preface





   A characteristic feature of the modern student audience is that the study groups necessarily include students with significant practical experience in various companies, as well as experience in participating in various business projects. With regard to undergraduates, the percentage of students who have practical work experience approaches 100%. Working students are just the norm among students in master’s degree courses, Presidential programs, MBA and retraining courses. Therefore, modern students are interested in obtaining such knowledge that literally tomorrow could be used in the course of their work.
   Among the students of my program, many work in the engineering and petrochemical industries, social enterprises, IT companies and various service enterprises. It is not uncommon for the audience to find students who have already completed various project management courses and have certain international certificates (IPMA, PMBOK, PRINCE 2, PMI-ACP, etc.). Some of the trainees and students are project managers or company owners. Therefore, all listeners are waiting for something new or want to take a fresh look at issues well-known to them in the field of project management and related fields of knowledge.
   In connection with the interest of the audience in the subject of Project Management and the large accumulated material, it is necessary to publish a textbook on this subject. The first edition on this topic appeared in 2020 as a project management guide. This publication is a revised and seriously in-depth work that meets the requirements for a textbook defined by the Educational Standard of Higher Education in the direction of training “Management”. Three new chapters have been added to it. The last chapter No. 8 “Laboratory work” was prepared with the active assistance of the leading in Eastern Europe project management and analytics companies “Advanta Consulting” and “ALAN”.
   The textbook was prepared on the basis of many years of experience in teaching courses “Project Management” and “Management of Innovative Projects” for bachelor, master, MBA students, students of retraining courses at the Higher School of Economics and students of corporate programs.
   As a result of working on the materials of the textbook, the reader will:

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   know
•  definitions and concepts of projects, programs, project portfolios and their context as objects of management;
•  different approaches to project classification;
•  processes and tools for managing various functional areas of the project;
•  methods used in project management;
   be able to
•  determine the goals, objectives, subject area of the project;
•  organize work with project stakeholders;
•  draw up an organizational and technological model of the project;
•  calculate the schedule for the implementation of the project;
•  qualitatively and quantitatively assess the risks and opportunities of the project;
•  manage cost and financial indicators of projects;
•  manage the project team.
   I would like to thank my teacher and supervisor of the Ph.D. thesis of Doctor of Economics, Professor and Head of the Project Management Department, Director of the Center for the Development of Competencies in Project Management at the Higher School of Economics, Valeriy Mikhailovich Anshin. Valery Mikhailovich gave me a start in academic life and is for me an example of a teacher, scientist and leader. It was thanks to his light hand that I became interested in the field of project management and thanks to him I received the first and invaluable advice in this area of knowledge.
   Taking this opportunity, I would like to thank the team of the wonderful and highly professional organization “Project PRACTICE”, on the basis of which several years ago I was trained and prepared for the international exams IPMA/SOVNET. This training systematized my knowledge in the field of project management and allowed me to take a fresh look at this type of activity.
   I would like to express special gratitude to Professor and General Director of Center “Priority” Vadim Arkadyevich Lapidus for useful advice during the preparation of the manuscript.
   During the preparation of Chapter 8 (“Laboratory Work”) I received active assistance from the leaders and responsible employees of Advanta and Alan-IT. In particular, thanks I would like to address Alexander Mikhailovich Belugin, Director of Advanta Business Development Consulting (ADVANTA), and the head of the group of companies ALAN (the ALAN Company about Enterprise) Alexander Sergeyevich Elin.

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                Introduction





   I would like to note the main stages of the historical path of project management. Obviously, this path was long and not easy. It can be assumed that the first project managers appeared in the ancient world and they were the architects of the Egyptian pyramids, the Great Wall of China, the Parthenon and the Colosseum. The next stage in the development of project management can be associated with that period of human history, in which there was a need to take into account the time factor in the course of project implementation. This happened in the era of the birth of capitalism (until the 18th century, the Renaissance), when the specialization of labor (division of labor) appeared. Well, the condition for a new qualitative change in the field of project management should be associated with the heyday of capitalism (the beginning of the 20th century), when the theory of general management by Henri Fayol appeared, the school of management of Frederick Taylor, Frank and Lillian Gilbreth, and of course, the development of conveyor production at enterprises Henry Ford.
   An important push in the development of project management was the work carried out in 1910 by a student of Frederick Taylor, American engineer Henry L. Gantt, associated with the development of a scheduling method in which line charts or Gantt charts were used.
   The next milestone in the development of project management is associated with organizational innovation (article 1937 by Luther Gulik (USA), dedicated to the matrix organization of labor), as a result of which, at the end of the 30s of the last century, the first matrix organizational structure appeared, as well as the opening of the first project office by the company US Air Corporation.
   Another significant stage in the development of project management was associated with the 40s of the last century, when there was an urgent need to implement large-scale military, military-industrial and post-war projects. It was then that the range of methods and tools for project management was added with mathematical methods for finding optimal solutions and researching operations. In this regard, at the end of the 50s, network planning methods and the use of computer technologies appeared — the Critical Path Method (CPM, 1957, previously called the Walker-Kelly method), which was used in the construction and repair of chemical plants in DuPont and the PERT method (Program Evaluation and Review Technique, 1958).

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   The critical path method allowed for the scheduling of a project with a fixed number of activities, while the PERT method allowed for evaluations and revisions of project programs. In the CPM method, it is assumed that the duration of the project’s work has a given value, and in the PERT method, the duration of the work is determined by experts using scenario and statistical approaches. A variation of this method has become the PERT-Cost method, which is used when carrying out cost estimates of project work.
   Another milestone in the development of project management is associated with the decision to create the International Project Management Association IPMA¹ (Paris, 1965). The first World Congress on Project Management was held in Vienna in 1967. In 1969, the North American Institute for Project Management PMI (Project Management Institution, USA) was established. In 1987, the world’s first Guide to the Project Management Body of Knowledge, PMBOK, was released, enabling PMI to distribute PMBOK worldwide. In the same 1987, the International Organization for Standardization ISO (International Organization of Standards, 1947) adopted a series of ISO 9000 standards, which contain terms and definitions, basic principles of quality management, requirements for the quality management system of organizations and enterprises, as well as guidelines for achieving sustainable result in the field of quality.
   Later, the standards ISO 10006 — guidelines for quality management of projects and ISO 21500 — guidelines for project management were adopted. In 2020, the new standard ISO 21502 was adopted, which introduced project management, taking into account the effective project practices of recent years.
   A characteristic feature of modern project-oriented activity is the high speed of changes in the external environment. In the age of new technologies, geopolitical games, uncertainty and chaos, stability and duration of existence of anything is a rarity. The reason for the instability of the external environment of projects is not only the unprecedented speed of changes in the modern socio-economic life of society, but also in the legal environment, especially if the project is being implemented on the territory of several countries and, accordingly, jurisdictions.
   In an environment of rapid change, in order to strengthen competitiveness, companies have to develop human capital and undertake ambitious projects that have a high professional risk both at the stage of development and at the stage of implementation.

¹ The old name of IPMA was INTERNET.

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As a rule, the goals of such projects are adjusted in the course of their implementation, depending on the variability of the external environment. Today, the quantity and quality of successfully completed risky projects can greatly influence the fate of a company, and provide a “place in the sun” on the industry map.
   Since companies have to work in difficult external conditions, therefore, the main task of project management is to ensure the timely and effective achievement of the strategic and tactical goals of the organization with minimal risks.
   Thus, the ultimate goal of project management is more focused on the implementation of strategic and tactical objectives than operational objectives. At the same time, of course, the value of the methods and tools of project management can be successfully used to increase the efficiency of the operating activities of enterprises as well.

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Chapter 1.




                SIGNIFICANCE OF PROJECT MANAGEMENT METHODOLOGY AND STANDARDS





            1.1. The concept of project management methodology


   Let’s try to understand the basic concepts on which the main approaches to project management are based. To do this, we will use the glossaries of terms and concepts. The basic concepts that will be required in the future include the following:
•  Approach is a basic category in the methodology that gives an idea of the researcher’s views on the behavior of a system (project, program or portfolio of projects) under the influence of exogenous and endogenous factors.
•  Technique — a general set of rules, an algorithm (more often — a linear algorithm), techniques for studying something, a method or path of theoretical research based on the properties of the systems under study (project, program or portfolio of projects).
•  Method is a particular concept — a way of research and practical implementation of something specific, a way to achieve a specific goal. Method — a set of techniques and operations (a branching algorithm, a cyclic algorithm and a set of linear algorithms).
•  Methodology — the doctrine of the methods, methods, ways of cognition, training, education, transformation of reality, in a word — about the methods of organizing any human activity (most often it is a set of methods and complex algorithms).
•  Instrument (Latin instrumentum — tool) — an object, device, mechanism, machine or algorithm used to target an object (project, program or portfolio of projects): its changes or measurements in order to achieve a useful effect.
   The next important terms in project management are “processes”, “object”, “subject”, “system model of project management”, “project program” and “project portfolio”. The relationship between these terms is shown below in fig. 1.1. and this relationship is called a systematic approach to project management. At the center of this concept is the term “system” and its most important property — emergence. The definitions of these terms are given below in the glossary, but here they have the important elements of the meaning of these terms for the purposes of project management:


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• process — an algorithm or regulated activities;
• object — an organized complex of works aimed at solving a specific problem or achieving a specific goal of the project;
• subjects of the project — participants in the project (program, portfolio), interacting in the development and adoption of managerial decisions.
   System model of project management is a model of project management, where the project is considered as a set of subsystems:
• subjects of management — objects of management — processes of project implementation management;
• program of projects — a group of interrelated projects and various activities, united by a common goal and conditions for their implementation;
• portfolio of projects — a set of projects, programs of projects and other work, combined together to achieve more effective management and ensure the implementation of the strategic goals of the organization;
• emergence — the appearance of a system of properties that are not inherent in its elements separately, i.e. irreducibility of the properties of the system to the sum of the properties of its components.


Fig. 1.1. System model of project management

   In fig. 1.1, at the vertices are marked elements (blocks) subjects of management, objects of management, which are connected by the

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processes of managing the implementation of the project. In the processes of project management, three main trajectories are identified — three modern trends along which project management processes develop. It should be noted that each trajectory is implemented based on a certain type of thinking.
   The first trajectory of the development of project management processes is formed on the use of project management methodology (for example, the international IPMA methodology, Agile project management systems, the CCPM — critical chain project management, etc.), which consist of appropriate methods and tools. The type of thinking that determines this trajectory is associated with factorial and functional approaches to management based on a causal relationship between exposure and response to exposure.
   The second trajectory of the development of project management processes is formed on the use of game theory, which in turn determines the appropriate methods and tools (Theory of Constraints (TOC) and CCPM¹ E. Goldratt). The basis of the type of thinking in this case is the so-called situational thinking, which helps to overcome non-standard and abnormal situations during the implementation of projects caused by conflicts and uncertainty in the behavior of the external environment of the project.
   The third trajectory of the development of project management processes is formed on the use of systems theory, which assumes systems thinking, which includes both factorial and functional (combined) approaches in project management, and in which the properties of systems are used (emergence, isomorphism, equifinality, etc.).
   It should be noted that in the figure, horizontally, the basic structural units of the management processes of each trajectory are marked, which interact with each other, thereby complementing and enriching the project management system as a whole.
   Later, we will return to fig. 1.1 more than once, filling it with meaning and specifying each trajectory. Here I would like to emphasize two features of project management:
   —  the project is a complex nonlinear system that cannot be controlled exclusively by linear methods (linear algorithms and regulated processes);

¹ CCPM — Critical Chain Project Management method of planning and project management based on the critical chain method and the principles of the theory of constraints.

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