Methodology to Improve the Maturity of Project Management at Industrial Enterprises

Methodology to Improve the Maturity of Project Management at Industrial Enterprises

Henrieta Hrablik Chovanová (Slovak University of Technology in Bratislava, Slovakia), Dagmar Babčanová (Slovak University of Technology in Bratislava, Slovakia), Natália Horňáková (Slovak University of Technology in Bratislava, Slovakia), Jana Samáková (Slovak University of Technology in Bratislava, Slovakia) and Helena Makyšová (Slovak University of Technology in Bratislava, Slovakia)
Copyright: © 2019 |Pages: 30
DOI: 10.4018/978-1-5225-7080-6.ch012

Abstract

This chapter deals with the need of analyze the course of project management processes with the help of maturity models. These models enable corporate plants finding out the level on what they plan and carry out projects, and they also help to retain or increase this level. Moreover, they offer plants the possibility of comparing their level of project use and project management to those of other plants, and thus enable plant finding out whether they are competitive enough in particular field. The methodology for improving the maturity of project management in industrial enterprises in the Slovak Republic will be described in the chapter. The individual maturity levels of enterprises in project management will also be characterized. By the setting of the criteria for transition to a higher maturity level, a large area of project management will be divided into smaller units, which is important in order to identify the areas of the project management where the specific industrial enterprise is behind and in which areas its results are positive.
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Background

The development of project management in the Slovak Republic started after 1989 and is supported mainly by the Project Management Association of Slovakia (PMAS). For several years, the PMAS has promoted relevant professional development, qualification enhancement, exchange of information and experience, certification process, introduction of sophisticated systems, and consultant and consultation services. Several surveys in the field of project management were conducted in the period 2001-2010.

A survey in Slovak enterprises in the period 2001-2003 highlighted the following facts (Hrablik Chovanová, 2010):

  • Most of the projects are not planned by using the programs which facilitate the planning process (some enterprises use the SAP R3 module).

  • Major problems occur in obtaining funds from banks in larger investment projects.

  • Enterprises still simulated on real models, although the simulation would reduce the cost in wrong decisions.

  • Employees who are responsible for project management are not sufficiently familiar with project management methods and project management support programs; also, some do not even know the basic project management terminology.

  • Project managers are not certified, which may have a major impact on the acquisition of European Union projects in the future.

  • Lack of analysis of the stakeholders’ interests and of their attitudes towards the project.

  • Insufficient and often completely missing risk analysis of the project and its management plan

  • Insufficient knowledge of project financing.

  • Inadequate contractual provision of the projects.

  • Project management is mostly used in construction and consultancy organizations, but it should become a standard method to be used in industry, agriculture, public administration, and other sectors, as it is in most of European Union countries.

According to a survey PM Solutions conducted in the United States with the participation of 74 project management practitioners, the major challenges today's enterprises face are (Hrablik Chovanová, 2010):

  • Inconsistent approach (24%).

  • Difficulties in resources allocation (20%).

  • Too many projects are “wrong” (17%).

  • Projects are delayed and exceed budget (7%).

Key Terms in this Chapter

Project Management Maturity: A progressive improvement of broad business approaches to project management, methodologies, strategies, and decision-making. An appropriate degree of maturity applies to each organization, depending on its specific goals, strategies, resource capabilities, possibilities, and needs.

Maturity Models: The official project management tool which is used to measure maturity in enterprise project management.

Project: A temporary effort to create a unique product or service (PMBOK).

Method: Technique of investigation or procedure; a systematic process in scientific and other activity, a thoughtful process (work) to achieve a certain goal.

Project Management: A summary of management tasks, management organization, management techniques, and managing means for project realization.

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