Project

MiJinsheng

    ;1oaconstructioncompa门thedepart-

    ;mentotproiect1sthebasicunitandProlect ;managementisofbasiccontent.With30 ;YearsexPeriencesinmarketpractices1nce ;theretormandoPenlngup.prolectmanage—

    ;mentisdevelopln1tsownstyleaccording ;totherea1situationinChina.Anocial ;fromChinaCommunicationsConstruction ;CompanyLtdfcccc)saidthat200lcanbe ;seenasaturningpointforthetwoperiods ;ofthedevelopmentofprojectmanagement. ;“Before2001.itwasabouttheswitchfrom

    ;theplannedeconomytomarketeconomy; ;afterthat.itwasthematterofpracticeand ;explorationundermarketeconomysystem. ;However,thereisnoclearseparatingpoint ;lyinginthetwophases.andeachhadadif- ;ferenthistoryofdevelopment.’’

    ;Eadystage:fixednumberof

    ;employees敬fixedquota

    ;“Toaconstructionsite,youcansee

    ;childrenplayingaroundandwomenwash—

    ;ingclothesorvegetables.Sometimes.the ;sitelpoked1ikeacompoundoccupiedby ;manyhouseholds.Atthattime,therewasno ;sitemanagementatall,’’anemployeefrom

    ;CCCCFourthHarborEngineeringCompany ;fFHEC1said,recallingthepicturein1980s ;“ButitwasbetterinShekou.whereastricter

    ;managementsystemwasimplemented.’’

    ;Formostconstructioncompaniesat ;囫Cl=Is

    ;thattime.1twasnostrangetoseechildren ;andwivesaroundtheconstruct1OnSlC’ots.Or

    ;quitea1ongtimeafter1978.theconstruction ;unitwaslikeasmallcommunityandthe ;constructionsiteandtheemployeeswerenot ;moveable;however,anindustryneedsrat1o—

    ;nalmobility.Therewasadescriptionatthat ;time:Thecompanyisabigcommunityand ;theconstructjonsiteissmallone. ;Itwasacommonphenomenonforthe

    ;constructioncompaniesundertheplanned ;economysystem:thestructureofthelabor ;structurewasunreasonable;asawhole,there ;wasasurplusinstaff,buttheworkforceat ;sitewasnotsu佑cient.Withthereforminthe ;laborstructurearound1984.FourthHarbor ;EngineeringCompanyofCCCCbeganto ;arrangeconstructionwithfixednumberof ;workforceandfixedquota.Andwithcer- ;taintraining.therewasaninitialdivisionof ;workers.

    ;Around1984.somecluesofmarket

    ;economyemergedintheShekouIndustrial ;ZoneandtheShenzhenSpecialEconomic ;Zone,andprojectbiddingwasinvited,and ;therewerenewmethodsofprojectman—

    ;agement.Inthatyear.Guangdong1edthe ;openingofconstructionmarket.Afterthe ;internalstructurereformandtheexperiences ;inShekou,FHECstartedtobidforprojects, ;andgrewusedtomarketcompetition.In ;l985,asiteofficewassetuptomanagethe ;constructionteam,establishingamodeoI ;constructionprojectsmanagementforalong ;period.

    ;Learntocontractaproiect

    ;InJune1981.LubugeHydropower

    ;StationProject.withaninstalledcapacity ;of600,000kilowattsgotapprovedfrom ;thecentraIgovernment.Attheinternational ;tenderforoneofthethreemainparts,water ;diversiontunne1prqject.TaiseiCorporation ;ofJapanhadabidofRMB36millionlower ;thanothersfromChineseorotherforeign ;companies.and43%lowerfromtheestimate. ;Taiseionlysentamanagementteamof ;30memberstoChinaandtheyhired424 ;workersfromSinohydroBureau14.During ;thefirstmonth,theyhadanaveragedrilling ;footageequivalentto2to2.5timesofthat

    ;ofsimilarprojectsinChinaandcompleted ;theproject5monthsaheadofschedule.It ;wasreadingonPeople’sDailyonAugust

    ;6.1987,”(TheSinohydroBureau14)hasa

    ;endlessinvestmentandflexibletime1imit. ;Thecompanyisconstructingtownsevery—

    ;whereitgoes.includingschoolshospitals, ;kindergartens,nurseries,canteens,cinemas ;andtheaters.”Specialconsultantgroupfrom

    ;theworidBankcametoinspecttheproject ;twice,andconcludedthattheriverclosure ;wouldbehardlyonschedule.

    ;Thedifferencecameupdueto”Project

    ;MethodConstruction”.In1985.reportedto

    ;theStateCouncilthroughMinistryofElec—

    ;tricalPowerandgainedapprovalfromState ;Council.basedontheorganizationofTaisei

     ;Lubugemanagementteam,SinohydroBu—

    ;reau14firstlyintroduced”ProjectMethod

    ;Construction’Inthisway,notonlydidthe

    ;companycatchupthewastedthreemonths, ;butalsocompletedtheexcavationproject ;f0urandhalfmonthsahead.

    ;AnofficialfromStateCouncilsaid ;whencametothesite,’’Itseemsthatthegap

    ;withTaiseiisnotbecauseoftheworkers ;butofthemanagement.Chineseworkers ;areefficient.’’Lubugeprojectcausedagreat

    ;uproarintheindustry,andshockedthecon—

    ;structionmanagementinChina.In1988. ;FourthHarborEngineeringlearnedthe ;experiencesfromLubugeProject.In1990. ;thecompanywasrecommendedbyMinistry ;ofCommunicationsasapilotenterprisefor ;Lubugeprojectmanagementexperiences, ;andimplementedeconomicresponsibility ;systemforconstructionprojects,whichsub—

    ;contractedtheprojectandbrokethemode ;ofquotaproduction.Thoughmadesome ;progressthismethoddidn’twithdrawthe

    ;oldmodeandestablishprojectdepartment, ;therefbretheconstructionprojectmanage—

    ;mentstillneededtimetobemature. ;Wecanseethedifferencebetweenthe

;twomodes:”Lubuge”newmodeofcon—

    ;structionmanagementsystemhasasmall ;worksite,hiresskilledworkersandseparates ;constructionand1iving.whiletheformer ;modestil1constructstownseverywherethey ;go.However,thisnewmodedidnotcausea ;deepconsiderationontheprojectmanage—

    ;mentsystem.ThesamewastruetoFourth ;HarborEngineeringatthattime.

    ;Spreadofproiectmethod

    ;翁t髅鼋l0辨

    ;In1993,FourthHarborEngineering ;begantospreadprojectmethodconstruction. ;Thismethodistheone—timec0nstructi0n

    ;managementactivityfromthestartotcon—

    ;structiontotheendoftheinspection,based ;onprojectmanagerrespons]Nhtysystern,to—

    ;cusingonconstructionproject,andfeaturing ;ininternaldecision—makingandseparation

    ;ofmanagementandoperationthroughinter- ;nalsub—contractsdynamicmanagementand ;optimizedproductionfactors.

    ;Infact.thespreadingofthemethod ;wasthebasicworkforFHECtoperfectthe ;economicresponsibilitysystemforconstrue—

    ;tionprqjects.Inthefollowingprojects1ike ;GuangdongDayaBayNuclearPowerStation. ;BangladeshChittagong,MacauAirportand ;soon,FourthHarborEngineeringgained ;goodmanagementexperiencesandprofits. ;Later.withtheOrganizatiOnalsystem ;intheinitialstageintoprojectmanagement ;throughouttheproject,whilesearchingfor ;civilizedmanagement.Andthecorporate ;profitcenterandprojectcostcentercameto ;shape.

    ;Thismeantthatwithmorethan20

    ;yearsdevelopment,FHEChadbegunproject ;managementofmarketeconomy,replacing ;whatduringtheplannedeconomyperiod.It ;wasalsofoundthatagreatchangehasbeen ;takenplaceintheoperationofstate—owned

    ;enterprisessince1978.

    ;Seekformoreprofits

    ;However,projectmanagementneeds ;furtherdevelopment.Withthemovement ;ofFourthHarborEngineeringonproject ;investmentsandtothehighendofindustry ;chainProlectmanagementneedstobede—

    ;velopedaccordingly.Itisaproblemunder ;considerationbycompaniesatpresent. ;Inrecentyears.tocarryoutBLBOT ;projectssmoothly,constructioncompanies ;paidmoreattentiontothroughoutproject ;management,whichmeantthecompanies ;beganprojectmanagementfromreceiving ;adjustmentin1996.FourthHarborEngi—

    ;neerlngbasicallysetupamanagememsvs—

    ;ternwitheconomlCaccountingandalabor ;Organ1zat10notcontractedemployees,put—

    ;tmganendtothepermanentpositionsystem ;undermeplannedeconomysystem.

    ;FinalestablishmentofPro1ects

    ;Department

    ;In2000.FourthHarborEngineeringfi—

    ;nallysetupthefirstDepartmentofProjects. ;WithmoreProjectDepartmentsestahlished. ;thecompanyintroducedsimulationinternal ;market,andformedabasicmanagement ;systemandprocessforthelaborcost,mate—

    ;rialsupply,andmachinerychartering. ;Withtheestablishmentofspecialty ;centersandspecialtycompanies,andof ;qualitycertificationsystem.FourthHarbor ;Engineeringsprojectmanagementgradu—

    ;allydevelopedfromon—sitemanagement

    ;theanswerforproposals,throught ;itystudy,design,construction,c ;tioninspectiontotheendofthew{ ;Inthispractice.FHECplacedcorlc ;proftsthefirst,whileseekingforrefi ;andstandardmanagementandhad

    ;understandingofcostsprofits,and1 ;projectmanagersaidthattheyno?

    ;toseriousstudy0nhowtocreateCC ;profits.Inhisview,therewasnot ;studyonthispreviously.

    ;Hegaveaformula:’’Project

    ;nomicprofit+Constructionmana: ;profit+Cost”.Thefirstandthethird

    ;theformulaaredeterminedbythec( ;orpartiesconcerned.”FormerlyIt

    ;thatconstructionmanagementprofil ;bedeterminedbygovernmentorth ;partyaswel1.Butwefoundwecan ;thisportioninourownhands.which ;sourceofencouragement,’’hesaid

    ;projectmanagerssaidthatthisc( ;achievedbyimprovingefnciency( ;nology,alsobyleadmanagementa ;management.Thiswouldbedepen~ ;theabilityofprojectmanagementteat ;LangXianping,afamousC

    ;economist.said.”Besidesprocessi

    ;manufacturing,ofanyfieldthere ;othermajorcomponentsintheinc ;chain:productdesign,rawmaterialP ;ment,logisticsordersdisposal,the ;sale,andendretail.MostChineseCOrl ;seekprofitsfrommanufacturing.1ea, ;profitsofsixotheraspectstoforeig ;panics.”Thisideamaybealittlee)

    ;butatleastitgivesnssomesugg ;Managersshouldtrytofindprofitsal ;entaspectsandthismaybetheplace ;projectmanagersshouldfoCUSon. ;Manypeoplehaverealizedtha

    ;agementiSanewsourceofprofits.’

    ;sourcehasmoreflexibility.Ofcourse. ;shouldnotbemadeatthecostofq ;anofhcia1fromFourthHarborEngil ;stressed.@

    ;fAuthor:FromEnterpriseC

    ;DepartmentofChinaCommunic

    ;ConstructionCompany)

    ;CHIr

    ;