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PROJECT MANAGEMENT MATHEMATICAL MODELS FOR SALES DEPARTMENT OF THE ORGANISATION (ON THE EXAMPLE FROM CONSTRUCTION INDUSTRY)

FEATURED PAPER 

Vladimir I. Voropaev

Yan D. Gelrud

Oxana A. Klimenko

Russia

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SUMMARY

The article considers the mathematical models intended for managing a project’s activity at all stages having one interested party, sales department involved. The problem of managing projects from the position of the sales department is explicitly formulated and stated. Use of the mathematical models is aimed at increasing the efficiency of sales department’s activity as well as the increasing the success in construction projects execution. The development of mathematical models for project management from position of sales department is a basis for a new set of competences for this stakeholder.

KEY WORDS: Interested parties, stakeholders, project management mathematical models, sales and marketing department in construction, project management competences.

INTRODUCTION

Most of the projects are aimed to get the financial result and meet the financial and economic criteria as the success criteria. The investor decides to join the project, based on a business plan and aims to gain profit. The customer defines the product requirements, the project management team, together with the general contractor and suppliers performs the project and creates a product in accordance with the declaration of the customer’s requirements and objectives of the investor to make profit. In modern project management methodologies, the roles of investor, customer, project management team, suppliers have been well studied and described.

However, to make the project profitable it is necessary to ensure the cash flow to come to the organization. This is done by sales department of the organization which is responsible to find the clients (end users of the future product) and sell the product to them. Despite the fact that sales are directly linked to ensuring the profitability of the project and is one of the important criteria for success, in the existing project management methodology little attention is paid to the competencies, methods and tools, necessary for the effective execution of the sales department’s functions.

Sales department – part of the organization or organization itself responsible for the implementation of the project product (deliverables) to the clients (end users) and providing cash flow from the clients (end users) to the project budget.

It is necessary to distinguish commercial, industrial, residential real estate and land. Figure 1 represents the possible classification of real estate depending on purpose.

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About the Authors 

VLADIMIR-VOROPAJEVVLADIMIR VOROPAJEVflag-russia

Author, Professor, International PM Expert

Founder, Former President, Chair – SOVNET

Former Vice President – IPMA

Full Member, Russian Academy of Natural Sciences

Moscow, Russia

Professor Vladimir I. Voropajev, PhD. is Founder and former President and Chairman of the Board of the Russian Association of Project Management, SOVNET. Dr. Voropajev is professor of Project Management at the State University of Management, Moscow, Russia.  He is also Head of the Program and Project Management Faculty for the Russian State Academy’s Program for Professional Retraining and Professional Skill Development for Executives and Specialists in Investment Fields.  He is a full member of the Russian Academy of Natural Sciences on Information Science and Cybernetics, and of the International Academy of Investments and Economy in Construction.

From 1991 to 2001, he was Vice-president and a member of the Executive Board of the International Project Management Association (IPMA), the global federation of national PM associations based in Zurich, Switzerland. He is the First Assessor for several IPMA certification bodies. In 2005 he was awarded IPMA Honorary Fellowship Award. He is also an honorary Fellow of the Indian Project Management Association and a past member of the Global Project Management Forum Steering Committee.  During his 40 years of engineering, scientific, teaching and consulting activities, he has published over 250 scientific research works including 7 monographs and 5 textbooks about the organization and planning of construction, information systems, and project management.

Vladimir serves on the editorial boards of several international project management journals, is a frequent participant in PM conferences worldwide, and provides ongoing counsel and support to PM professional leaders in Azerbaijan, Kazakhstan, Ukraine, Yugoslavia and several other countries.  Professor Voropajev can be reached at [email protected]

yan-gelrudYan D. Gelrud flag-russia

South Ural State University

Chelyabinsk, Russia

Mr. Yan Gelrud was born in 1947 in Birobidjan (Khabarovsk Territory). In 1965 he finished a school of mathematics and physics at Novosibirsk. In 1970 he graduated from the mathematical faculty of university at Novosibirsk on “Mathematics” speciality. From 1970 to 1991 Yakov was working in the Research Institute of automated control systems as a head of mathematical division. He took part in creation and adoption of more than 100 automated control systems in different branches of industry.

From 1991 to 1997 Mr. Gelrud was doing business, being director general of “URAL-ASCО-SERVICE”. Since the 1st of September 1997 till now he works as a professor of the “Enterprise and management” department in South Ural State University. He teaches a multitude of disciplines, such as “Mathematics”, “Theory of probability and mathematical statistics”, “Econometrics”, “Economic and mathematical methods”, “Mathematical methods of decision-making”, “Bases of decision-making methodology”, “Economical evaluation of investments”, “Mathematical methods and models of project management”, “Studies of managerial systems.”

Yan Gelrud has more than 100 publications and speeches on seminars and conferences of different level. His monograph “Project management in conditions of risk and uncertainty” was published recently. He can be contacted at [email protected]

pmwj25-aug2014-Voropajev-AUTHOR2 KLIMENKOOXANA KLIMENKO flag-russia

Moscow, Russia

Business – consultant on project management, certified project management professional, level C – IPMA, certified program and portfolio management consultant, level PPMC – IPMA level, Regional director of the International Center for Complex Project Management – ICCPM in Russia and CIS countries (2011 – 2013). She worked as a Director of certification body of Russian project management association SOVNET (2011 – 2013). At present she is a senior lecturer on project management at the PM chair at National Research University “Higher School of Economics” in Moscow. Oxana is delivering MBA programs at Real estate Institute of National Research University “Higher School of Economics”.

Provides trainings, consulting sessions, moderations, lectures and seminars in English. Organizer and Director of the yearly International Youth Scientific and Practical Project Management Conferences “Youth and Management of Projects in Russia”, Moscow (2011- till present).

The project management team member, developing the international standard on management of projects of the International Association of Management of the IPMA projects (2010 – till present). As a team member she took part in developing IPMA Delta organizational – technological competence model in IPMA. As IPMA Delta manager in Russia she led the assessments for four organizations: Sberbank of Russia (2010), class 2; Ekaterinburg electric grid company (2012), class 2; Nizhny Tagil Plant of metal Designs (2012), class 2; TNK-BP (2012), class 1

Trainer’s and consulting experience: Development and delivering of trainings, seminars, training programs more than 18 years. In consulting – more than 8 years. More than 25 consulting projects in the companies (from small enterprises to large corporations) as the leading consultant/consultant of projects are realized. More than 500 trainings and seminars in Moscow and other cities of Russia held.

Among clients: BRITISH AMERICAN TOBACCO, EFES, COWI CONSULT, KNIGHT FRANK, KUEHNE+NAGEL, OZON, SHL, SG Group, AZIYa, Garant, Dominanta Energy, INKOM-Nedvizhimost, Inteco, Intrek, Komstrin region, Megafon, Miel, bank “Otkritie”, Peresvet Group, Portal, ROSNO, Rosneft, Rusfinance Bank (Société Générale group), Rusagro, Rufil, Settelekom, bank Sberbank, Grazhdanstroyproyekt, Stroygalerey, TVEL Stroy, Transmashholding, Esset Management, Triumph, Finam, Central Telegraph, Elara, Elkod, others.

She can be contacted at [email protected]