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Project Management - Project Implementation SECĂREA TUDOREL, PH.D., ASSOCIATE PROFESSOR Economic Sciences Faculty George Barițiu University Lunii Street, No. 6, Brasov City ROMANIA [email protected] Abstract: This paper analyzes the way of implementing a project for a company that wants to develop. The objective of this project is investing in technology and increase productivity for this company, ensuring sustainable development and reducing productivity gaps between the company and its competitors. The answer for this analysis is project implementation with the project management system that is the process of planning, organization and management of activities and resources necessary to meet clearly defined objectives, usually with time and cost constraints. Key-Words: project management, implementation, productivity, performance. 1 Introduction This paper analyzes the way of implementing a project that requires equipment and technological know-how related to a company working in heavy industry. This company wants to develop its production capacity by purchasing new equipment. The main services offered by the X-METAL company are: Design shop; Nonferrous foundry; Workshop of metal constructions; Cutting machining shop. Performance is generated by using quality raw material, high technology, state of the art equipment imported from market leaders and team professionalism. The project comes for the beneficiary that wants to grow, to diversify the production through the acquisition of three metal processing machines and a forklift. The equipment will help the company to diversify its production and to achieve high quality products complying with the requirements of customers. The objective of this project is investing in technology and increase productivity for X-METAL, ensuring sustainable development and reducing productivity gaps between the company and its competitors. The project goal is to diversify and modernize the existing production through the purchase of three metal processing machines (modern technology) and a forklift. The company wants to refurbish and modernize the existing production unit. The project helps to ensure healthy growth of the company, ensuring future contracts, maintain the machines (at least 3 years after completion of the project) and creating new jobs. 2 Problem Formulation The company wants to implement this solution by the new management – project management. This investment generates: • increase production capacity; • increase product quality - metal parts of high-quality technologies that are in high demand due to EU standards; • consolidation and sustainable development of the productive sector of the company X-METAL by product development (product range covering requirements and new trends in manufacturing metal parts); creating an environment favorable to sustainable development of The X-METAL company (one of the country's largest producers of metal products on order), and other companies (suppliers of materials, customers) with whom it collaborates; • increased turnover of the company within 3 years after completion of the project by 33.1%. The project will provide: strengthening and developing the productive sector; Mathematics and Computers in Biology, Business and Acoustics ISBN: 978-960-474-293-6 227

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Page 1: Project Management - Project Implementation - WSEAS · Project Management - Project Implementation SECĂREA ... management of activities and resources necessary to meet clearly defined

Project Management - Project Implementation

SECĂREA TUDOREL, PH.D., ASSOCIATE PROFESSOR Economic Sciences Faculty George Barițiu University

Lunii Street, No. 6, Brasov City ROMANIA

[email protected]

Abstract: This paper analyzes the way of implementing a project for a company that wants to develop. The objective of this project is investing in technology and increase productivity for this company, ensuring sustainable development and reducing productivity gaps between the company and its competitors. The answer for this analysis is project implementation with the project management system that is the process of planning, organization and management of activities and resources necessary to meet clearly defined objectives, usually with time and cost constraints.

Key-Words: project management, implementation, productivity, performance.

1 Introduction This paper analyzes the way of implementing

a project that requires equipment and technological know-how related to a company working in heavy industry. This company wants to develop its production capacity by purchasing new equipment.

The main services offered by the X-METAL

company are: • Design shop; • Nonferrous foundry; • Workshop of metal constructions; • Cutting machining shop.

Performance is generated by using quality raw

material, high technology, state of the art equipment imported from market leaders and team professionalism.

The project comes for the beneficiary that wants to grow, to diversify the production through the acquisition of three metal processing machines and a forklift. The equipment will help the company to diversify its production and to achieve high quality products complying with the requirements of customers.

The objective of this project is investing in technology and increase productivity for X-METAL, ensuring sustainable development and reducing productivity gaps between the company and its competitors.

The project goal is to diversify and modernize the existing production through the purchase of three metal processing machines (modern technology) and a

forklift. The company wants to refurbish and modernize the existing production unit.

The project helps to ensure healthy growth of the company, ensuring future contracts, maintain the machines (at least 3 years after completion of the project) and creating new jobs.

2 Problem Formulation The company wants to implement this solution

by the new management – project management. This investment generates: • increase production capacity; • increase product quality - metal parts of

high-quality technologies that are in high demand due to EU standards;

• consolidation and sustainable development of the productive sector of the company X-METAL by product development (product range covering requirements and new trends in manufacturing metal parts);

• creating an environment favorable to sustainable development of The X-METAL company (one of the country's largest producers of metal products on order), and other companies (suppliers of materials, customers) with whom it collaborates;

• increased turnover of the company within 3 years after completion of the project by 33.1%.

The project will provide: • strengthening and developing the productive

sector;

Mathematics and Computers in Biology, Business and Acoustics

ISBN: 978-960-474-293-6 227

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• creating a favorable business environment for company development.

Specific objectives: • expanding the productive sector, through the

purchase of three machines and a forklift to produce metal parts, which ensures the development of product range and increase the quality of processed products;

• product innovation through the launch of new products: metal parts produced by plasma processing and computerized milling by program;

• process innovation which is acquiring new equipment, aiming to improve quality, efficiency and flexibility of the company's productive activities;

• organizational innovation through the implementation of significant changes in business practices, workplace organization and external relations, aiming to improve the company's innovative capacity and performance characteristics such as quality and efficiency of work flows;

• strengthening European and international standards, quality management systems, that the company runs;

• access to new markets, with staff involved in the promotion, marketing, economic forecasting and environmental monitoring;

• development of new products with very good precision;

• implementing new technologies within the company;

• innovation as a necessary condition for competitiveness;

• job creation; • creating a favorable business environment

for enterprise development.

2.1 Production structure of the company

Production structure has the following components:

A. Non-ferrous Foundry It has all aluminum casting facilities

established by three methods: • sand casting; • gravity cast metal molds; • molding under pressure using two machines:

one with horizontal injection 250 t and second with vertical injection 160 t. Foundry Department also has an oven for the

preparation of alloys of copper, brass and bronze respectively in the casting in disposable forms.

B. Metalworking shop It has: - semiautomatic band saw;

- guillotine press for cutting bars and profiles of various sizes (max. 40 mm);

- MIG-MAG welding machine, latest generation of German production.

C. Cutting machining workshop It has: - 2 (two) with CNC milling machine 800 mm

stroke; -1 CNC lathe with max. 0140 processing; - universal tools. D. Design Workshop CATIA and ACAD engineers that work for the

company. The company can design based on themes

provided by clients, products and product implementation projects.

The company performs works on classic machines and cutting precision on CNC machines: cutting profiles with classic machines, turning, milling on classic machines, surface grinding, grinding round, indoors and outdoors. Also perform processing by cold plastic deformation, plate and tube bending. Containers of parts are handled manually. With the machines, the company executes:

• automotive springs - 100 pieces per week; • labyrinths set for the mining industry - 2,500

pieces per month; • direction sets for railroad - 2,000 sets per

month; • various automotive products for Volvo, Ford,

Iveco, Mercedes.

2.2 Project presentation The purpose of this investment analysis is the

purchase of three machines and a forklift described below:

Numerically controlled cutting plasma

machine - 1 piece

Cutting machine is characterized by quality and reliability.

The machine frame is built as a light structure of aluminum, which gives the machine a high rigidity. Axes linear guides and ball screw provide optimal repositioning and accuracy. Also, lightweight aluminum structure has a reduced inertial mass and acceleration facilitates high speed range (up to about 12 m / min). Controlling the machine is done with rotary actuators and encoders. This ensures a smooth, quiet operation and high acceleration and advance.

Mathematics and Computers in Biology, Business and Acoustics

ISBN: 978-960-474-293-6 228

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Numeric Command mill - type NCC FGS 63 – 1 piece.

Numeric Command mill - type vertical machining center NCC VMC 70 - 1 piece.

Forklift 2.5 tons - 1 piece. This equipment must be integrated into current

production flow.

3 Problem Solution Project implementation with the project

management system.

The process of planning, organization and management of activities and resources necessary to meet clearly defined objectives, usually with time and cost constraints.

The purpose of a project is, first, to solve a problem, to change practices, means, organization, to anticipate a situation, a challenge, a risk, to move from a situation that was unsatisfactory to a desired situation more satisfactory.

To implement this project is necessary to choose a strategy to develop the maximum capacity of the expert team, who manage or implement, use of skills, as well as team spirit, through a responsibility towards the common goal and need to work together with optimal performance. All projects must meet a set of basic rules, although they are confronted throughout their expected life, random events, such as some changes in economic policy at the macroeconomic level, which may constitute risk factors for their achievement and, therefore, require additional corrective measures.

Phases of implementation: Started:

• Contracts; • Resource mobilization; • Establish working relationships; • Workshop - start of the project; • Making plans; • Establish procedures for communication and

monitoring plan.

Implementation:

Repetitive processes: • Commitment of resources; • Activities implementation and delivery of

results; • Progress monitoring; • Corrective measures;

• Review plans; • Reporting.

Closure:

• Closing Event of the project; • Eventually, maintenance plan development; • "Dissolving the team"; • Conclusions, lessons learned, best practices; • Making the final report;

Project organization:

• Dividing the project phases, activities and sub-activities;

• Appointment of responsibilities; • Resource allocation; • Development of files for monitoring activities; • Developing and continuously updating a

graphical programming for activities (and sub-activities);

• Develop a monitoring plan.

Project management features: • It is based on repeatable processes and

techniques for obtaining test planned results. • It is based on stakeholder relationship

management (stakeholders); • Key issues: monitoring, audit and evaluation.

Project management scheme:

CONTRACT FEATURES

TIME COST

4 Conclusion In conclusion, project management is the

answer to the need to implement the X-METAL's growth strategy. This can also ensure the independence and interoperability with the rest of the company's activities.

In order to create a favorable environment for the exploitation of existing opportunities for economic development and boosting the firm's business environment and considering the negative effects of economic crisis in terms of reducing the number of

SUCCES

Mathematics and Computers in Biology, Business and Acoustics

ISBN: 978-960-474-293-6 229

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operators active in the market, tightening credit conditions and general increase the difficulties and risks of developing a business, especially for entrepreneurs. Those conditions make very difficult the business success.

Should be taken into account the factors that ensure the success of a project, they depend on: - will to succeed of all factors that may contribute to the success of the project, which involves the need to demonstrate their participation in all stages in which they can contribute; - clear project structure, which requires a good understanding of technical, economic and social situation of existing and desired situation, the obstacles and benefits, available resources and potential, the conditions for success and all the components involved in project implementation.

Supporting the enterprise sector is a priority both at European Union level and at national level, because this very large category of economic agents, more dynamic and more flexible than large companies, is the backbone of any modern economy.

In this paper it is presented a possibility of making investments in production with very good results in the modern business environment.

References:

[1] Bărbulescu, C., Sisteme strategice de producŃie, Revista Tribuna Economică, nr. 12, pag. 14, 2000.

[2] Băloiu, L. M., Managementul inovaŃiei. Publishing House Eficient Bucureşti, 1995.

[3] Braicu Cezar, Managementul afacerilor, Publishing House FundaŃiei România de Mâine, Bucureşti, 2003.

[4] Burduş, E., Tratat de management, Publishing

House Economică, Bucureşti, 2005. [5] David I. Cleland, Roland Gareis. Global project

management handbook. (2006) [6] James P. Lewis. The project manager's desk

reference: a comprehensive guide to project

planning, scheduling, evaluation, and systems

(2000). [7] Joel Bessis, colab., Planul de afaceri, Publishing

House ŞtiinŃă şi Tehnică, Bucureşti, 1997. [8] John Allen, Ghidul întreprinzătorului particular,

Publishing House Tehnică, Bucureşti, 1993. [9] Lewis R. Ireland Project Management. McGraw-

Hill Professional, 2006. [10] Popescu Dan, Conducerea afacerilor, Publishing

House Scripta, Bucureşti, 1998.

Mathematics and Computers in Biology, Business and Acoustics

ISBN: 978-960-474-293-6 230