Page 42 - Global Project Management Handbook

2-4 STATE OF THE ART OF GLOBAL PROJECT MANAGEMENT

project management methods are used for small projects than for projects, and there is
less detail in the project plans than there is with projects. It is usually sufficient to seg-
ment the work breakdown structure only to the third level.
For small projects a less differentiated design of the project organization will suffice
than for projects. The role of the “project owner” will be filled by one person instead of a
team. Subteams probably will not be necessary. Project marketing is less extensive for
small projects than for projects.
In order to ensure the organizational advantage of projects, business processes that are
fulfilled as projects should be differentiated from business processes that are not project-
worthy. The fulfillment of routine business processes is accomplished by the permanent
organization, as well as by work groups.

Relationships among Projects, Business Processes,
Investments, and Objects

To clarify the definition of what a project is, differentiation between projects, business
processes, investments, and objects is helpful. The relationships among projects, business
processes, investments, and objects then can be analyzed.
Several business processes are combined in an investment process. The investment in
an industrial plant, for example, combines the business processes of developing a feasi-
bility study, planning the plant, constructing and commissioning the plant, use, mainte-
nance, and decommissioning of the plant.
Investments can be initialized by a project and/or a program (Fig. 2.1). Projects can
segment the investment process.
Objects are both the objects of consideration and the results of an investment. They
can be divided into material and immaterial objects. The material object of the investment
in an industrial plant is the industrial plant. All the business processes to be fulfilled in
the framework of this investment are related to this object.
A project is to be differentiated from the object that results from the project. Projects
are to be labeled not only with the object name (e.g., “Product XY”) but also with their
function (e.g., “Development of Product XY”).

Project:
Customer Offer Project: After-sales service
contact development Contracting
t
Projects in a “customer relationship investment”

Project: Project: Project: Project:
Use of
Idea Feasibility study Conception for Construction industrial Maintenance Decommissioning
development industrial plant industrial plant industrial plant industrial plant of industrial plant
plant
t
Projects in an “infrastructure investment”
Project: Project: Project: Further Withdrawal of
Idea Product Product development Product
development marketing Product product product from
conception and introduction re-launch marketing the market
t
Projects in a “product investment”
FIGURE 2.1 Segmentation of investment processes through projects.