need for establishing project office

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2nd Assignment Need for Establishing Project Office

ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration)

Assignment # 2

Project management (5547)

TOPIC: NEED FOR ESTABLISHING PROJECT

OFFICE

Submitted to: Sir Ateeq-ur-Rehman

Submitted by: Ishtiaq Ahmed (0333-6824303)

AH-526270

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ACKNOWLEDGEMENT

All praises to Almighty Allah, the most Gracious, the most Beneficent and

the most Merciful, who enabled me to complete this assignment.

I feel great pleasure in expressing my since gratitude to my teacher, forhis guidance and support for providing me an opportunity to complete my

Project.

My special thanks and acknowledgments to my friend Ishtiaq Ahmed for

providing me all relative information, guidance and support to compile

the practical study at Habib Rafiq (Pvt.) Limited.

I will keep my hopes alive for the success of given task to submit this

report to my honorable teacher Sir Atteq-ur-Rehman, whose guidance;

support and encouragement enable me to complete this assignment.

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EXECUTIVE SUMMARY

Project Office is a department responsible for improving project

management within an organization. Its a permanent department within

an organization, not a temporary function. There are different types of

project offices depend on the organization structure. Project Office isresponsible for Resolving project problems, implementing the right

project management, Monitoring and reporting on status, and improving

project success rates. Some reasons for Establishing Project Office are

Project Time Management, Integration Management, Project Time

Management, Project Cost Management, Project Quality Management,

Project Human Resource Management, Project Communication

Management, Project Risk Management and Project Procurement

Management.

Habib Rafiq (Pvt.) Limited is a project driven company and establishproject offices for big projects.

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Table of Contents

Table of Contents Page

No

Title page

Acknowledgement 02

Abstract 03

Table of contents 04

Introduction to the issue 05

Practical study of organization 09

Data collection methods 15

SWOT analysis 16

Conclusion 17

Recommendations 18

References 19

.

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Introduction to Topic

What is a Project Office?A Project Office is a department responsible for improving projectmanagement within an organization. Its a permanent department withinan organization, not a temporary function. Its there to coordinateprojects and ensure they have the right tools, standards, methodologiesand templates needed to boost their chances of success.

Types of Project Office:

Three types of project office are,

1.The Supportive Project Office:This is the most common type of Project Office. Its purpose is to empowerProject Managers and teams to deliver projects. It doesn't control ordirect projects. Instead it supports projects by offering training,mentoring, administration and reporting.

2.The Controlling Project Office:

Supportive services may not be enough to put projects back on track. Byoffering controlling services (such as project reviews, audits andassessments), the Project Office can influence project delivery. It mayalso enforce project standards and processes to minimize project risk.

3.The Directive Project Office:The least common, but sometimes most effective type of Project Office, isone that directs projects. Here, the Project Managers report to the ProjectOffice, which is directly responsible for the success of each project. Thishelps to group the project work within an organization to being under onedepartment- the Project Office.

4.Suitable type:If were implementing a Project Office for the first time, then theSupportive model is best. It helps us add value to projects by offeringreporting, training and monitoring services, without taking on theresponsibility for the project themselves.If we have an established Project Office and we want to ensure thatprojects are independently assessed, then the Controlling model is

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2nd Assignment Need for Establishing Project Officebest. we can directly influence the success of projects, as well asimplement best practices, standards and toolsIf organization has a small set of high risk projects at any one time, thenusually the Directive model is best.

Responsibilities of Project Office:

The Project Office is responsible for: Resolving common project problems

Implementing the right project management template tools Monitoring and reporting on status

Improving project success rates.

Roles of Project Office:

It is essential for the success of a new Project Office that there is clearunderstanding before establishment, as to the role of the office, and theinteraction between the office and the individual projects.

The key to successfully establish a Project Office or Programme Office is

to gain agreement at the start of the process, as to the responsibilities. A

useful and speedy technique is to workshop the possible activities with

the key players, and gain consensus as to what the office is intended to

do. The starting point is to create a list of possible activities, then hold aworkshop to evaluate the responsibility of the office, for each activity. It

is likely in some cases there will be no activity, and in other cases, the

activities will need to be split down further. It is also useful if the office is

not to have attached is a list in no particular order. The list is not

definitive. It is intended to form the basis of a review of the role. Each

organisation will have specific activities that may, or may not be included

in the role of a Project Office.

P roject portfolio management office:

The function of the project portfolio management office is to manage

the organization's project portfolio, a responsibility which typically

includes prioritizing projects, allocating resources to projects,

and tracking the performance of the project portfolio. A key

focus is ensuring that the overall collection of projects maximally

supports the objectives of the enterprise. In addition, the office collects6
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2nd Assignment Need for Establishing Project Officeand distributes data for reviewing, assessing, and managing individual

projects to ensure that they are meeting their expected contributions to

the portfolio. Portfolio management provides the necessary link

between project management and enterprise management.

Portfolio management links project and enterprise management

Participants, Authorities, and Responsibilities

The first step for establishing a project portfolio management functionis to decide who will participate as active managers of the project

portfolio. A project portfolio manager, typically a senior manager,

should be appointed with accountability for the success of the entire

project portfolio. Important skills of the portfolio manager the portfolio

manager should be given an estimate of the total funding to be made

available, but it should then be up to the portfolio manager to

determine how to allocate the funds within that cost constraint. It

should be possible for the portfolio manager to suspend at any time

further commitment of investment due to cost increases, failure tomake anticipated progress, changing economic climates, or shifts in

business conditions. At the very least, the portfolio manager should

have responsibility for recommending resource allocations for final

approval by a committee of senior executives. In either case, senior

executives should be enlisted to serve as a steering committee

responsible for providing and updating (e.g., in response to changing

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2nd Assignment Need for Establishing Project Officebusiness objectives) the value judgments and policy decisions needed

to guide portfolio management.

A portfolio management team should support the portfolio manager.

The team, oftentimes, includes department heads from sub

organizations that generate requests for projects, provide project

resources, and/or use project deliverables. The team should have

responsibility for verifying cost, value, and risk estimates provided in

support of project proposals and requests for resources. This team is

then responsible for evaluating project proposals, accepting or rejecting

proposals, accelerating and decelerating projects, allocating resources,

and otherwise continuously managing the project portfolio over time.

One member of the team should be designated as the primary contact

person for each project manager.

Adopt a Successful Portfolio Management

Process:

The successful project portfolio management process includes four

major components.

1. Structured process

Structured process is used to acquire key information about all projectsand to organize project data in0to one or more project portfolios.

2. Consistent and objective

Consistent and objective methods are employed to analyze projects

and compare their risks and benefits.

3. Resource demands

Resource demands are compared with capacity so that the subset of

projects that make best use of available resources can be selected.

4. Tracking portfolio performance

The final component consists of tracking portfolio performance for

ongoing assessment and adjustment. The management of these

components is the responsibility of the project portfolio management

team.

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Practical Study of theOrganization

Company Profile:Habib Rafiq (Pvt.) Limited has come a long way to symbolize

commitment, distinction and professional Excellence by meeting the

stringent, demanding and extra ordinary work requirements of high

engineering, national and international importance involving civil,

electrical and mechanical works for the last 50 years.

The ever increasing efforts towards attaining better and new business

ventures have exposed the company to multitude of engineering

disciplines. Now it is company's prerogative to be working in

infrastructure, housing, design and environmental areas other than its

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2nd Assignment Need for Establishing Project Officestrong standing in industrial projects for power, chemicals, petro

chemicals, roads, Motorways and buildings.

HRL boasts and claims to have a reputation of company delivering the

projects ahead of schedule. This has consolidated trust and confidence

with our business entrepreneurs. The repetition of orders we have beengetting from the clients is a touchstone of their reliance in HRL and clear

emblem of the comfort extended by us.

Mission Statement:

Our mission is to achieve high standing for HRL. So that we have:-

Undisputed leadership in Engineering & Project Management.

Providing solutions and services with high level of

professionalism.

Profitable growth.

Resources of HRLMan Power:

With over 50 years of engineering experience and one of the largest

construction company in Pakistan, we have huge resources of qualified

team and latest engineering equipment to execute any type and scale of

Power Plants, Oil & Gas, Road Infrastructure, Buildings, Environmental

and Water & Irrigation Projects. We have specialized project management

team who has outstanding expertise to plan, design, implementation,

testing and execution the large scale projects on turnkey basis.

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Equipment Resources:

The company by for owns one of the latest inventory of machines relating

concrete, earth work, road construction, drilling, dewatering, mechanical

fabrication & erection works. This includes state of the art concretebatching / placing Equipments, Asphalt plants, and allied Equipments, of

world known brands.

Moreover, complete electro mechanical and maintenance facilities are

being maintained centrally and at all projects to keep the machinery in

best, dependable and working condition to avoid uncalled for delays in

the excavation of works.

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Practical Study of the Organizationwith respect to the Issue

Need For Establishing Project Office:

HRL has extensive and proven track record of capability to handle highfinancial, technical and engineering value projects in Industrial, Power,

Chemical, Petrochemical, aviation, Infrastructure, environmental and high

rise building projects. Multiple controls applied during the inception and

execution.

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2nd Assignment Need for Establishing Project OfficeFollowing are the reasons for Establishing Project

Office:

Project Time Management

o Initiation

o Scope Planning

o Scope Definition

o Scope Verification

o Scope Change Control

Integration Management

o Plan Developmento Plan Execution

o Change Control

Project Time Management

o Activity Definition

o Activity Sequencing

o Activity Duration Estimating

o Schedule Developmento Schedule Control

Project Cost Management

o Recourse Planning

o Cost Estimating

o Cost Budgeting

o Cost Control

Project Quality Management

o Quality Planning

o Quality Assurance

o Quality Control

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2nd Assignment Need for Establishing Project Office Project Human Resource Management

o Organizational Planning

o Staff Acquisition

o

Team Development

Project Communication Management

o Communications Planning

o Information Distribution

o Performance Reporting

o Administrative Closure

Project Risk Management

o Risk Identification

o Risk Quantification

o Risk Response Development

o Risk Response Control

Project Procurement Management

o Procurement Planning

o Solicitation Planningo Solicitation

o Source Selection

o Contract Administration

o Contract Close out

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Data Collection Method

Research Objective:

The purpose of my research is To know about need for establishing project office. To know about need for establishing project office in Habib Rafeeq(pvt.) limited.

Research Methodology:

There are mainly two methods that are used for the collection of data.

Primary Data

Secondary Data

A. Primary Data:

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2nd Assignment Need for Establishing Project Office Observation

B. Secondary Data :

Internet is very helpful for me to study more about penalty of

contravention.

Different type of booklets.

Annual reports.

Newspapers.

SWOT analysis

Strengths:

Functional Project Office

Stability of Production

Increasing of revenue

Weaknesses:

Implementation

Administrative Expenses

Conflicts

Opportunities:

Employees Motivation

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2nd Assignment Need for Establishing Project Office Unemployment

Threats:

Conflicts

Low Resources

ConclusionProject Office is a department responsible for improving project

management within an organization. Its a permanent department within

an organization, not a temporary function. There are different types of

project offices depend on the organization structure. Project Office is

responsible for Resolving project problems, implementing the right

project management, Monitoring and reporting on status, and improving

project success rates. Some reasons for Establishing Project Office are

Project Time Management, Integration Management, Project Time

Management, Project Cost Management, Project Quality Management,

Project Human Resource Management, Project Communication

Management, Project Risk Management and Project Procurement

Management.

Habib Rafiq (Pvt.) Limited is a project driven company and establish

project offices for big projects.

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Recommendation

Following are some recommendations for Habib Rafiq (Pvt.) Limited,

HRL Management has to communicate with project Manager for

establishing Project office.

Should have to make effective project team.

Should have to take actions for effective project office.

Should have to take emergency actions when a conflict occurs

between Project office management and Project manager.

Should have to avoid from Hard and Nose Tactics

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References

Project report Study ofneed for establishing project officewww.slideshare.com

http://www.google.com

http://www.wikkipedia.com

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http://www.google.com/http://www.google.com/

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