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AN OVERVIEW OF PROCESS FOR ESTABLISHING THE PROJECT MANAGEMENT OFFICE IN ORGANIZATION

 
21.11.2024 23:31
Автор: Yan Zehua, Master student at Department for Information Computer Systems and Control, West Ukrainian National University, Ternopil
[2. Інформаційні системи і технології;]

1 Introduction

Project Management Office (PMO), can plan the top-level design of the enterprise, help the enterprise to create projects [1, 2], and help the enterprise to realize the strategy on the ground. That is of great benefit to the overall operation and development of the enterprise. The enterprise's strategy needs to be realized through project operations, and PMO is the executor of the enterprise's strategy, which needs to maximize the advantages of the strategy and help the enterprise to break through the limitations of the strategy. A good PMO operation plan can make the enterprise multiply its profitability through the project, make the enterprise brand, make the enterprise's value grow rapidly, and gradually dominate the business market. Therefore, this paper explores a process for establishing a corporate PMO through academic research methods, through which the corporate strategy is promoted.

Kent Crawford considers the R&D project management process can be divided into four typical stages according to the project management life cycle [1]: development and development planning stage, new technology development stage. small batch production stage and mass production phase.

Compared with ordinary project management, the development process of research and development projects is complex, with more uncertainty and unpredictability, and there is usually no single solution, or even the best solution. At the present stage, the construction of enterprise project management system has shortcomings such as backward means and lack of systematic management, which has a great impact on the development efficiency of research and development projects [3, 4]. In the whole process of carrying out research and development projects, it is necessary to strictly manage the research and development planning, new technology development, small batch production and mass production, and carry out process monitoring and quality control.

2 Key functions and PMO structure 

After review of related works above [1-4], we can form the PMO key functions of an R&D organization. The first function of PMO is to provide dedicated support staff to project managers to assist in the collection and analysis of data, such as budget and progress tracking, organization to speed up project progress [5].

A second function of PMO is to assign project managers to a project of the enterprise according to the organization needs [6]. After PMO training, the project manager masters the latest tools and technologies of project management in the organization and implements the standard enterprise project management process.

The third, more advanced function in the PMO is to assign a project management team solely responsible for meeting the project objectives and achieving the desired business objectives. However, since it is usually difficult to find project management experts with specific business knowledge and experience in the field of project execution, the PMO needs to analyze the current situation to build a project management team.

To implement the functions above the PMO aims to manage projects that are grouped together to achieve the organization's strategic business goals, focusing on ensuring that the strategically supported goals are aligned with the business's business goals [7]. At the same time, the PMO is responsible for creating and maintaining the enterprise's project management center resource pool, providing a wide range of services. They include the development and maintenance of the most appropriate project management tools, technologies, standards and operational methods, and training. 

Based on analysis of those functions above we can synthesize the process of setting up a project management office in an R&D organization (Figure 1).




Figure 1 The process of setting up a project management office in an R&D organization

3 Process phases 

The initiation phase defines the start of a project [5]. This phase requires the development of a project charter. It aims to define the project boundaries, establish the position of the project manager, and authorize the organizational resources available to the project manager. Focus is made on the strategic and business objectives to ensure that proper and efficient project management tools are used, adapted to the organization's strategy and supported by senior management [8]. Measurable metrics generally include progress assessment, cost assessment, management team assessment, and deliverables assessment. When defining the criteria, the PMO project sponsor and senior management should be involved in setting the criteria for the completion rate and quality of deliverables at each stage of the project.

The planning phase is to further optimize the project objectives based on the project charter and develop a more detailed and specific course of actions. Start by defining the PMO model required by the organization and the necessary switching cycle and approach [9]. At the beginning of the project, a simple PMO model is used to ensure the basic operation of the system, and continuously update and improve the PMO to make the PMO model more mature. The types of PMO personnel include project managers and project management personnel, and the personnel required for PMO needs to be determined according to the type and number of personnel to be served.

The execution phase completes the work identified in the planning phase by coordinating project resources and integrating and implementing project activities [5]. During the execution phase of the PMO setup, training is provided to all project participants, from business managers, project managers, and employees, who need to be trained with the PMO [10]. The PMO needs to pay a particular attention to the complexity of the project development and the communication and collaboration of the members of the organization. Even the most experienced project managers should be trained with the PMO's project management methodology in order to ensure the professionalism of the R&D management process. In order to avoid failure, the project manager of PMO conducts a project evaluation based on milestone points. It is made to confirm that the project management process is being applied to the R&D organization, and confirm the effectiveness of the application [11].

During the monitoring phase the project sponsor and the organization's senior management are regularly informed of the monitoring reports to assess the status of the PMO.

The closeout phase is the end of all activities in the project management process, marked by the formal closure of the project or contract. It includes the evaluation of the project and the release of resources. After a detailed assessment of PMO in the R&D organization, the project is declared closed and the building of a PMO structure adapted to the R&D organization is completed.

4 Conclusion  

This paper has explored the steps of the methodology for building the PMO in an enterprise. According to the research content, enterprises can design according to their own needs and establish PMO with their own enterprise characteristics. Moreover, they may introduce PMO tools and ensure the successful completion of the project in complex research.

References:

[1] K. Crawford. Project management office solution, Beijing: Publishing House of Electronics Industry, 2004.

[2] L. Zhang. Research on the application of product R&D project management. Dissertation. Wuhan: Wuhan Institute of Technology, 2016.

[3] J. Duan. Research on optimization of R&D project management system of Hua Nong Company, Dissertation. Lanzhou: Lanzhou University, 2017.

[4] N. J. Quan. Research on the optimization of the management system of laser equipment R&D project of company A. Dissertation. Shenzhen: Shenzhen University, 2017.

[5] A Guide to Project Management Body of Knowledge. Project Management Institute. Beijing: Publishing House of Electronics Industry, 2009.

[6] L. Ou, Y. Xiao. Research on the Functions of Enterprise Project Office. Industrial Engineering Journal, no. 4, pp. 29-32, 2007.

[7] J. Ding, G. Wang. Building a New Model of Project Management Office (PMO). Project Management Review, no. 4, pp. 70-73, 2018.

[8] M.-Y. Wang, J. Li, M. Qi, et al. Project Management Office: Concept, History and Functions. Journal of Technology and Economics, no. 4, pp. 21-25, 2012.

[9] C. Li, Y. Li. Research on the management of common engineering project management mode in green building projects. Ceramics, no. 12, pp. 130-131, 2021.

[10] X. Guo. On the new reform of modern management mode in project management – based on the perspective of international development of project management. China's Collective Economy, no. 36, pp. 17-19, 2021.

[11] Z. Wu, L. Yu. Research on the management of total factor productivity in high-quality development. Project Management Technology, vol. 19, no. 11, pp. 162-166, 2021.



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