Page 409 - Global Project Management Handbook

19-18 MANAGEMENT OF THE PROJECT-ORIENTED COMPANY

100
90
80
Level of fulfilment 60
70

50
40
30
20
10
0
Project management Engineering Procurement Assembly Initial operation Pilot operation

O 1 O 2 LL LLI
FIGURE 19.9 Benchmarking the internal processes of two organizations.

● Engineering. Both organizations have well-developed processes in this area.
● Procurement. O1 is less than the LLI for this process. O2 is far less and is just at the LL.
● Assembly. For this process, O1 is just under the LLI. O2 had very good results.
● Initial operation. Both organizations show a good result in this process.
● Pilot operation. In this process, O1 again was just under the LLI. O2 had very good results.
● Overall status. The overall processes of both organizations are not stable because some
processes are under the LLI.

In terms of continuous improvement (CI), as soon as the level of fulfilment exceeds
65 percent, the limits will be pushed upward. A process can be considered to be stable or
under control when its results always lie above the LLI.
Fundamentally, the results from both organizations represent starting levels for further
measurements. A minimum of three measurements over a period of three years are necessary
for obtaining relevant values. It is essential that the method of measurement and the ques-
tions are not, or only marginally, changed in order to ensure the comparability of the results.

CONCLUSION

Inclusion of the viewpoint of the project manager in the evaluation of processes of the
project-oriented organization leads to new definitions of process goals. This can be
demonstrated in the example of the procurement process: It must be the goal of the
procurement process not only to purchase at the lowest price (viewpoint of central pur-
chasing) but also to contribute to the minimization of the overall cost of the project