Project Management Mechanism Improvement Study For Jilin Electric Power Construction Company

Jilin Electric Power Construction Company was founded in March 1949, is the first thermal power plant constructing team in China.The company has authorized the power project construction and housing construction general contracting level 1 qualification by the Ministry of Construction. There are 3883 employees, of which 1652 are professional technical staff, 2,335 are skilled workers, 798 have senior titles. The company's registered capital is 230 million yuan, and the total asset is 730 million yuan.When it comes to the project management organization, the organization of the main business is set as the branch type, branch is relatively stable institutions, which undertake specific projects. Branch consists of different kind of functional department, including personnel, management, production, and so on; consists of the construction units, including boilers, turbine, electrical, welding, lifting, etc.; The organization of supporting business is uncertain, sometimes is set as the branch type, sometimes is set as the project management department type.When it comes to the construction management, corporation is responsible for issue the duration indicator of each project, balance the human resource, machines between the branches, production and management of specific construction is managed by the branch directly. When it comes to the operation and management, the head office is responsible for issue operational indicators to all branch, and assessment management.As the rapidly changing of internal and external environment, there are still many problems in company's project management.1. from main business aspectMain business is the larger projects that can demonstrate the strength of Jilin Electric Power Construction Company's construction and its landmark business. First, their problems of insufficient resources, mainly in severe loss of operational and technical personnel, and a serious shortage of large-scale machinery and equipment; Second, the problem of construction efficiency, overall labor's low productivity and the low utilization rate of the machines. Third, low technology level, there is the phenomenon of laying more emphasis on construction and less on training; Fourth, the weak overall constructive ability, company is in the country's middle and lower levels of the industry; Fifth, the dated method of business and management, which is basicly following the traditional management pattern and means; Sixth, uneven internal distribution and welfare, which violated the principle of equity, affected employee's enthusiasm of production and working, also set back the rational flow of human resources; Seventh, the inefficient implementation of operating policy, the company's various operating policies can not be well implemented.2. From Supporting Business AspectSupporting business is projects outside the main business. Firstly, as there is not a clear development strategy for supporting business, there have been a range of problems in the establishment of organization, market development and professional team training. Second, there are also many problems in production management and business management.3. From Comprehensive strength aspectThe problems in project management process finally reflect on the corporate competitiveness, including the following:Firstly, human resources weaknesses, on one hand, the company suffered huge loss in mature talent, on the other hand,the number of new coming employees is dropping down; second,the disability of outside agreement teams management, lack of established sound management system and long-term close cooperation with sub-contractors; Thirdly,the high price level , due to the high overall costs,it is necessary to take enough cost space into account in the control process, so the company do not have the price advantage. To the problems of project management in the construction, operation and integrated aspect, centrally reflect on the drop of external credibility.These problems are caused by complex reasons, both external environmental factors and internal management factors.(1)External Environmental Factors AnalysisBefore and after the corporate restructuring ,its external environment has changed dramatically, mainly reflects on: firstly, there will not be any conventional thermal power projects until three years later, the country's power station construction drops to the bottom; second, separate the network and factories, so construction companies have been pushed deeper into the market ; Third, the backward economy of the province intensified the market conditions worsening of Jilin Electric Power Construction Company; Fourth, the increasing of construction difficulty, intensified the shortage of construction company; fifth, vicious competition in the market further weakened the strength of enterprises.(2)Internal Integrated Reasons AnalysisDuring the corporate restructuring, the company has integrated the resources, but it has also brought a series of negative effects, such as lack of management, difficulty in cultural fusion, relatively lower of market share. During the restructuring period, the company has implemented paid termination to the labor contract, causing massive loss of human resource,deteriorating financial situation.(3)Project Management System Reason AnalysisOn one hand, to the aspect of organization, the branch organization for the main business is not fit for multi-project management, organizational overlapping restricted the rational flow of resources, while arbitrariness of supporting business organization has seriously affected the overall function of the project; on the other hand, the backward management control mechanisms is not suitable for modern business management.After analyzing the cause of problems in project management of Jilin Electric Power Construction Company, we should focus on internal mechanisms, making the following improvement advices:(1) improving project management organization1.the main business organization improvement. Improved model will be matrix organizational model. In this structure, the Corporation set up a number of project management department according to the number of the undertaken projects. The project management department, as the dispatched department of the head office, perform the contract on behalf of the head office, exercise the management of the project. Meanwhile, on the head office level, the company has set up a number of professional firms, such as steam turbine, boiler and so on, as the operating agency undertaking various projects. Professional company directly under the Corporation, on the same level with the project management department at the administration, without affiliation. Under the company's unified economic policy, Professional company has economic contract relations with the project management department.2.Supporting business organization improvement. Improved model will be the branch organizations. According to the current proportion of different types of projects, the company should set up three branches in the head office level. They will be: medium and small thermal power project company, responsible for medium and small thermal power assembling units, straw generator assembling units, heating boilers and transformer substation's market development and project construction; wind power company, responsible for wind power's market development and project construction; construction company, responsible for different kinds of industrial and civil construction market development and project construction.(2) exercising new project management and control model1.An operation type management and control mode close to "on brains, hands and feet under" has been designed for between the Corporation and the project management department. The head office is responsible for unified strategic management, unified company image shaping, unified market development, establishing a unified human resources development strategy, unified strict financial and budgetary management, resource management approach with the combination of economic and administrative regulation and control, establishment of unified plan of the head office, the production management system which is organized for implement by the project manager department, establishing assurance mechanisms with the combination of incentive and restraint. 2. A strategic management and control-type model close to "there is brains up and under" should be chosen for the management and control between the head office and the branches, and even in some areas of business management, a financial control mode close to "there is brains, but no hands" should be selected. In the strategic management, the strategic management and control-type should be selected, the headquarter and branches formulate and implement the development strategies of the relevant business; in market management, financial management and control-type should be selected; in business management, strategic management and control-type model should be selected; in production management, financial control-type should be established; To the resources associated with the Corporation, strategic management of human resources obey the unified strategy of the Corporation; Similarly, the assurance mechanism with combination of incentive and restraint should be established by the Corporation.