Module 7

Resource person:Mr. Huang Yungui

Subject:

Project Management Framework

Course abstract:
To manage a project, we just need a successful team.But if we are managing
lots of projects, establishing a Sound management system of project
management will be more important. A sound management system not only
makes projects all under control, but also helps to solve the problem of
unbalanced project management between different units. Since 2011, China
Southern Power Grid CO.,Ltd. (CSG) has drawn lessons from advanced
international

experience,

such

as

IPMA

Competence

Baseline

3.0,

PAS55-2008, completed the framework design of PM-CSG1.0 by combining

with practical situation, found the best way to be in line with international
standards. and achieved a lot in the past years . This topic will deliver the CSG's
experience of establishing a sound management system .

....

,.

.,

w"'..,

----~~

~:-- ( f>M-CSG 1. 0 5.:-=:~Huang Yungui

Deputy Director of Construction Dept.
Yuxi Power Supply Bureau, Yl'N,PG
Sep. 14. 2015

Since 2011, CSG draw lessons from advanced international experience,

such as IPMA Competence Baseline 3.0, PAS55-2008, Completed the
framework design of PM-csgl.O combining with practical situation,
Found the best way to be in line with international standards. And
achieved a lot in the past years o

Mekong Institute

~~:~~~~"""'

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Brief Introduction Of
Project Management
Frame Work Of CSG' s
Project Management
Content Of Integrated
Management System
Major Content Of Seven
Specialized Management
J

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Brief Introduction Of
Project Management
The first part briefly introduces the definition of
"project" and its characteristics, and finds the distinction
between "Management" and "Project Management"

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1.1 The Definition of a Project

Organization Unit

Fix Budget

Fix Time

Quality Assurance

Delivery Result

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1.2 Specifications of a Project

)

a) The exact starting time

b) The exact finishing date
c) The exact definition of the final goal
d) Only one time
e) Including Time, Quality and Cost
f) The exact Result

g) Full of the Risk

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Resource Utilization

Case Discussion
Design a new Net Game Software for the middle school student, It is
planned to be into the market before the end of December, 2007.

J
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Case Discussion

)
Using the computer to edit the RAM

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Importance: All the project

specifications MUST be

100/o satisfied

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1.3What is called "Management"?

)

Manpower,Material resources,Financial power

w~~~p

A person, or a group, or a team

the confirmation
of the" Goal" to the utilization of the "Resource" through the different
tools of the "Plan" & "Supervision" in order to achieve the final
satisfied "Result". The whole system is called "management"",and
The person who operates the system is called the " manager ".

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Deliver
the Result

Final Goal

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1.4 What is called "Project Management"

)

Project Definition

Management Method

/
Platform of PM

That is

Management of TQC

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The PM Explanation in PMI

Project management is the application of knowledge,
skills, tools, and techniques to project activities to meet
project requirements.
Project management is accomplished through the use
of the processes such as:

Initiating-Planning-Executing- Controlling- Closing

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The Tri-angle Relationship

/

Time

Quality _,,

(d/ AcJtV J.,~0

Scope in PMI
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Three "layers"in PM

l~~L-Ju,..'s~ 6~ 't.t.ip~uj
1. Investors

2.

3.

Project Managers

1- ~

Operation Managers

(UV\ -;;;d..sz_}
Where are you?

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Basic Platform of PM
Manage "System"
-What "System" you use?
Manage "People"
-What kind of "People"are you gonging to use?

-:z.,

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Management Of Individual Power Project

Design and IFB
Preparation
Construction
Acceptance
Check and put
into Operation

1=>~,

I~
I~

Invitation For Bid

Design a;d Check

Pre aration

jr...v-1. ck.K..

~Jr~(

project closeout

Mekong Institute

Five steps of
construction project

Details of Construction
procedures

t:o&-1.
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R'egiqfol( (; ~ ~~ l .it- 111 ~ \iofl,

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Question

_)

If you are managing hundreds of thousands of

infrastructure projects, how to do is the most efficient?

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~
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Frame Work Of CSG's

Project Management
The second part briefly introduces the general frame
work of PM-csgl.Oo

)
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2.1

11

General Management(GM)" and "Project Management(PM)"

-

--- ---

Head office /branch/ subsidi

Functional management (

different levels )
I
I

- Process of GM - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -'
Standards,rules

j outcome

Integrated Management System

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2.2 Integrated Management System( 7+7 )

::~

~-;':;l'.'~-=~7!=~ . . ~

General management

...

Safety management
Quality management

:=:::

Cost management

f,;;j''::::=::':

Scheduling management ,

Business
Proces
( Quality control"
w2- 1- 21

2.3 Structure of Project Management

)

According to advanced international experience and combining with

ractical situation , we divides the Pro ect Mana ement into seven sections.

Project Management
~~~~~~~~~~~~~~~~

~-'-~~~~~~~~~~~~~~~~

Purchasing management
nvitation
For Bid

Contractor
Mana ement

Contract
Mana ement

Subcontractor
Mana ement

Quality
ssessment

' nformation
Briefin " Monthly

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Statistic
Mana ement

Content Of Integrated
Management System
The third part briefly introduces .the Content of
integrated management system,there are seven
sections we will discusso

)
/

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2.2 Integrated Management System( 7+7)

)
/

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f~~s:._(1 ,,_..~If'. - - --

3.2 Seven Kinds of Basic Works(Seven integration)

Organizational Structure integration
Business Process integration
Regulatory Regime integration
Engineering Standard integration
working Standard integration
Evaluating Indicator integration
Information System integration

)
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3.2.1 Organizational Structure integration

)
Department and post settings in different levels of the corporation was
integration,it meand that the department and post settings either in head
office or in provincial-level companies and power supply bureaus had the
same function,and counterpart each other.

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- .

3.2.1 Organizational Structure integration

Building two functional management levels in head office and
provincial-level companies,Appointing the third level(power supply
bureaus ) as the executive layer.
Two functional management levels had the same function,and
counterpart each other

power supply bureaus take charge of project management a

Setting up enough Owner project department , ensuring every
project are under effective management.

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3.2.1 Organizational Structure integration

Cost
mgmt

General
mgmt
(operation control level)
Construction
Department
of head office

. Technoloy
Economics
section

Technoloy
Economics
section

provincial-Iecel
companies

( Executive layer)
Owner project
department

Ow e project department

3.2.2 Business Process integration

Business Process Management (BPM) is a Management approach to

abstract and manage business processes. It is a comprehensive
approach that helps an organization achieve process orientation,
encompassing multiple dimensions of Business Process
Management.a

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3.2.2 Business Process integration

)
~

A business process is a set of activities designed to achieve a specific

business goal. It is a collection of activities that create successful
business outcomes, for example, creating value for a customer.

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3.2.2 Business Process integration

Payment

Acceptance Check

Quality inspection

[WftTrantYJ

Business process of repairing a car

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3.2.2 Business Process integration

Design and IFB

___c__o_n_st~r~u_c_ti_o_n___I ~
Acceptance
Check and put
into Operation

I.

project closeout
Five steps of
construction project

Business process of PM
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3.2.2 Business Process integration

Bus.iness

Pr:oce~

M anagement

--------------------------------I
------ ------ . ------------"'
I
I

Proc:e,ss

P ~o c;es s

M od elrng-

Analysis

P.roce1ss
:Design

Process M a n agement

Pr o cess'

Performance

Management

Orga n~izatfon

Ent erprise Precess Management

Business Process fV'.lanagement Techn c;;>logie s

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Case Discussion
)

Business process of changing manhole cover.

-------Video from Germany

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Proe:ess
Tran sfo rmation

I
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I

3.2.2 Business Process integration

Business
Process
management
management
strategy

Grade-I
Business

Grade-2
Business

Business
Units

Business
Process
flows

10

33

28

Control

Control+Guid
e

Inspection

Guide

19

)
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3.2.3 Regulatory Regime integration

)
Regulatory Regime on construction management of the corporation
was integration,it meand that all level units of the corporation should
follow the same Regulatory Regime .

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3.2.3 Regulatory Regime integration

(l)A class institution (2)
Cpital construction Regulations
Cpital construction project management approach
(2)A class Business Guide(19)
19 Management business guide booklets
(2)B class institution
Draw up by provincial-level companies for business needs.
)

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.{( Cpital construction RegulatioQ~}) - catalog

Purchasing
mgrnt

Profile

Safety

Bylaws

Standardize the division of functions in different departments

and limit of rights in different ranks , specifically told you who
do, and what to do .

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 ({ Cpital construction project maagement approach)) - catalog

Profile

Quoted
documents

Ter3ms
and
Befinit .

Function

0
Confent
and
methods

ioi;i

Standardize the important elements, methods and tools of

project management, specifically told you what to do, and
how to do.

)
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3.2.4 Engineering Standard integration

There three kinds of engineering standard In china,such as national

standards, trade standards and local standards. And all of them are
divided into compulsory standards and recommendatory standards,
so we should integrate the engineering standard.

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3.2.4 Engineering Standard integration

Eespecially In the absence of national standards, trade standards

and local standards for certain products, the enterprises producing
such products shall formulate their own standards as the basis for
organizing production.

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3.2.4 Engineering Standard integration

Building block
Design

Typical Cost

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Let's the project design like piling up building blocks.

Blockl

Block2

Block3

..."'

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3.2.5 Working Standard integration

By standardizing the daily work process and integrating the
Working Standard , we can achieve most work by high-quality

--

copy, thereby enhancing the overall quality of work.

To compile the operating instructions aim at some repeatability

key work in the construction process of transimision lines and
substations.
To improve the supervision inspection by methods of WHS o

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( 1) what's WHS?

w
Witness point

Some key work pro

Witness by supervisor.

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H
.Hold point

Standby point
.

. .

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(2) How to set up WHS?

'._)

I.Important step that affected the

duration,quality,safety,cost of project.
2.Mandatory provisions

1.New materials,
2.N ew technologies,
3.New processes

1.Weaklink
2.Key position
3.Concealed work

Some defects feedback frequency

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. ',;

(3) How to check WHS?

Record

~
Standby

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3.2.6 Evaluating Index integration

)
According to corporation's strategy, design evaluating Indicator aim
at construction management, and integrate them with the Key
Performance lndicator(KPI) of corporation, make them to
implement rigidly.

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First level : Corporate strategic Indicator , 4 sections,4 Indicators :

II

Section

Serial
number

Indicators

Safety management

Death toll

Quality management

WHS Pass Rate

Scheduling management

Schedule rate

Cost management

Comprehensive
evaluation index

W2-l-49

Second level : provincial-level company's management Indicator

4 sections,4 Indicators :
Section

Serial
number

Indicators

Safety management

Death toll

Quality management

WHS Pass Rate

Scheduling management

Schedule rate

Cost management

Comprehensive
evaluation index

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Third level : Owner project department operation Indicator

4 sections,9 Indicators :
Section

Safety management
Quality management

-- -

Scheduling
management
Cost management

Mekon Institute

Serial number

Indicators

1
2
3
1
1
2
3
4
1

Death toll

'

Number of badly wounded

Number of slightly wounded
WHS Pass Rate
Schedule rate
rate of project operation
rat~

of project completion
Rate of final payment

Comprehensive evaluation index

--

W2-J-51

3.2. 7 Information System integration

There were Many versions of the information system in CSG three
years ago, they Act of one's own free will,and no compatibility and
cohesion for each other. So they didn't play a role in improving the
efficiency. We start to building a integrated Information System from
then on. In order to integrated with the Management system( contains
organizational structure,business process, regulatory regime,
engineering standard, working standard, evaluating indicator) .

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3.2. 7 Information System integration

Head office /branch/ subsidi

Functional management (

different levels )

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Major Content Of Seven

Specialized management
The fouth part briefly introduces project management, it
contains Seven specialized management.

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2.2 Integrated Management System( 7+7 )

General management
Purchasing management ;
Safety management

, ''''''''

Quality management
Cost management
Scheduling management , .

)
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4.1 Project management

Project Management
--...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_~

,...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,_...,__

- Technical management
Typical Cost

IJ

Typical Design

I.__..,_.--."""'!"__.

Cost mana ement

..-fu
1ti
~.
a~
l --.I

easonable
Time Limit

Estimates

Examine&
Approve

,.........,.....,_...,__

tatistic
Mana ement

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4.2 Seven specialized management

General management;
Safety management;
Quality management ;
Cost management;
Scheduling management;
Technical management;
Purchasing management;

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4.2.1 General management

Owner
Project
Department

Statistic
Management

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Constitution of Owner Project Department

Technical Engineer
Safety Engineer
Quality Engineer
Project Manager
Cost Engineer
Coordination Engineer
Document Engineer

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4.2.2 Safety management

Safety management
.
.
:

Engineering Risk
System

,,

~:

':

Safety
Construction

WZ-1-60

.,.,

Emergency
Response

Engineering Risk System

The traditional safety management

is only concerned on the accident,
ignoring the cause of the accident,
and lacking of effective
monitoring and management of
the cause of accident.
" The iceberg under the water level

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Engineering Risk System

Contractor
selection

Preparation for
construction

-----------1

-- -----~--....,

Security
clarificaiton
On-site inspection]

Acceptance
procedures,
standards

Process contro.t,-+---.i Acceptance check

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Construction safety risk system

YES

Compile
work
instructions
Effectiveness
Econ om

Determme the control

measures

t
Eliminate

Alternative

t
t
t
~
Transfer 11 Isolation II Administrative 11 Personal= rotective I

Reference of .
construction safety risk

Safety construction

' - - - -- - - - - - - - - ' W2-I-63

4.2.3 Safety management

WHS
Control

Quality
Gate

Acceptance
Clieck

W2- I- 64

Defect
,.
Management

Quality Gate

Quality Gate

Quality gate is based on prevention, in order to identify the possible error

source and the negative effects at the early stage.
When you Across a quality gate ,it means that the project has achieved the
preventive quality.and was permitted to the next phase of work.

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Quality Gate
)

Setting principles of quality gate

1.Key links in owner management;

2. work nends to transfer from different departments ;

3. Turn work ;

{ ~v<-~ ~~)

4. work affecting Schedule Milestones

5.Concealed work

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4.2.4 Scheduling management

- Scheduling managemerit ,

Reasonable
Time Limit

Schedule
Milestones

W2- l -67

Schedule Milestones
According to reasonable time limit, each participating units draw up
their own project schedule aiming at their devision of work

rovincial-leve~

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4.2.5 Cost management

Budget
Control

Design
Alteration

W2- I-69

4.2.5 Cost management

Earned value Management(EVM)
EVM is a practical and integrated tool to control schedule and cost.

There are three key components to earned value:

Planned Value, Earned Value and Actual Cost.
PV is the physical work scheduled or "what you plan to do".

EV is the quantification of the "worth" of the work done to date or

"what you physically accomplished".
AC is the cost incurred for executing work on a project or "what

you have spent".

W2-I-70

1
''

4.2.5 Cost management

EVM terms.
New
PMBOK 2000 & 2004

Old
PMBOK 1996 Version

BCWS
-Budgeted Cost for Work Scheduled

PV
-Planned Value

ACWP
-Actual Cost of Work Performed

~ t -(~
AC _., ~,

-Actual cost

BCWP
-Budgeted Cost of Work Performed

EV
-Earned value
)

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4.2.5 Cost management

we can look at how to analyze what has happened on a project (CV,SV, CPI, SPI). Take some
time to review the formulas below.

Cost Variance (CV) =EV -AC

Schedule Variance (SV) =EV - PV

If the result is POSITIVE-7 "Underrun"

If the result is NEGATIVE-7 "Overrun"

If the result is POSITIVE -7 "On Scheaule"

If the result is NEGATIVE -7 "Behind Schedule"

Cost Variance (CV)%= CV/EV

Schedule Variance (SV)% = SV/PV

Tells you what percentage cost varies

from what has been earned to date.

Tells you what percentage schedule varies from

what has been planned to date.

Cost Performance Index (CPI)= EV/AC

Schedule Performance Index (SPI) = EV/PV

If result is less than 1.0, cost is GREATER

than budgeted
If the result greater than 1.0, cost is
LESS than budgeted

If result is less than 1.0, project is

"BEHIND" schedule
If the result greater than 1.0, project is
"AHEAD of schedule
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.~ ,

.._)

4.2.5 Cost management

Cost

Monitoring points
BCWS

BCWS=PV
ACWP=CV
BCWP=EV

CV'"BCWP-ACWI'

Ci)l=ACWi'iBC\iV P

Time

Ahead of schedule
W2-I-73

4.2.6 Technical management

Tech.U:ical man:a gement

,_ ''
Typical Cost

Typical Design

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Construction Technology

Main measures
1. To promote and advertise standard design and typical cost Vl.O.
2. To promote the construction of the 3C green grid, concentrating on construction of
pilot projects.

3C technolo~

integrated information
network
1
application
sharing I transmission

Digital I energy
Gathering
saving

water

material Land environmental

.__sa_v_in_g__,,_s~av_i_n_g__s_av_i_n_g __P_r_o.,..te_c_tion

j
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4.2. 7 Purchasing management

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WZ-J-76

4.2. 7 Purchasing management

To explore the long-term mechanism of contractor management, and insist

on judging or assessing contractors with penalty points.
Contract
claim
Contractor
credit
record

Contractor's
capability
assessment

To optimize
contractor
in IFB

:--------1
1
To blame for I
Contractor's .'
personnel 1
i

- ;!,

r---- - -- - - - - - ,

~-----~I

To achieve it in

;
! -_ _ _ _ _ _ _ ,

j contractor information j
_

system ___ J

W2-I-77

Thank you for listening !

Q&A
( t<P:l)

Mekong Institute
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W2- I-78