Project activities of the enterprise: theoretical and practical aspects

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Kyiv National University of Technology and Design

PROJECT ACTIVITIES OF THE ENTERPRISE: THEORETICAL AND PRACTICAL ASPECTS

MIAHKYKH IRYNA

Doctor of Economics, Professor,

Professor of the Department of

Entrepreneurship and Business

Abstract

project activity enterprise

The article investigates: theoretical and practical aspects of project activity; considers the main approaches of scientists to defining the content of the concepts of "project", "project activity"; substantiates the importance of project activity, both in theory and in practice; reveals the essence of the project and project activity of the enterprise, their features; notes that project activity at the enterprise directly links projects, programs and project portfolios to the achievement of the strategic goals of the enterprise, which is the main purpose of organizing project activity. The article discusses: modern approaches to project management and project activities of the enterprise, focuses on project management as an indispensable tool that allows you to build a reliable bridge between the strategic goals of the enterprise and its operational and tactical activities; the functions of project management are listed, namely, basic, integrating, supporting, and they are divided into groups; project management methods are defined and their essence is disclosed; factors that negatively affect the implementation of a project by an economic entity are indicated and substantiated; in order for the project management process to be properly informed, supported by modern technologies, it is proposed to cr eate databases and databases for all phases and stages of the life cycle in the process of project activities and keep them up to date.

The article reveals the basic requirements for project management in the process of project activities of an enterprise; the main points of requirements for an economic entity that it needs to pay attention to in the process of managing the project activities of an enterprise are proposed.

Keywords: enterprise, project activity, project, project management, management methods, factors, management functions.

Анотація

Ірина МЯГКИХ доктор економічних наук, професор, професор кафедри підприємництва та бізнесу, Київський національний університет технологій та дизайну, м. Київ, Україна

ПРОЄКТНА ДІЯЛЬНІСТЬ ПІДПРИЄМСТВА: ТЕОРЕТИЧНІ ТА ПРАКТИЧНІ АСПЕКТИ

У статті досліджено: теоретичні та практичні аспекти проєктної діяльності; розглянуто основні підходи науковців до визначення змісту понять «проєкт», «проєктна діяльність»; обґрунтовано важливість проєктної діяльності як в теорії, так і на практиці; розкрито сутність проєкту та проєктної діяльності підприємства, їх особливості; зазначено, що проєктна діяльність на підприємстві безпосередньо пов'язує проєкти, програми та портфелі проєктів з досягненням стратегічних цілей підприємства, що є основною метою організації проєктної діяльності на підприємстві.

У статті розглядаються сучасні підходи до управління проєктами та проєктної діяльності підприємства, акцентовано увагу на управлінні проєктами як незамінному інструменті, що дозволяє побудувати надійний плацдарм між стратегічними цілями підприємства та його оперативно-тактичною діяльністю; перелічено функції управління проєктами, а саме: основні, інтегруючі, забезпечуючі, та поділено їх на групи; визначено методи управління проєктами та розкрито їх сутність; зазначено та обґрунтовано фактори, які негативно впливають на реалізацію проєкту суб'єктом господарювання; для того, щоб процес управління проєктами був належним чином інформаційно забезпечений, підтриманий сучасними технологіями, запропоновано створювати бази та банки даних за всіма фазами та етапами життєвого циклу в процесі проєктної діяльності та підтримувати їх в актуальному стані,а також впровадити сучасні автоматизовані системи планування та контролю і засоби обробки та передачі даних.

У статті розкрито основні вимоги до управління проектами в процесі проектної діяльності підприємства; запропоновано основні пункти вимог до суб'єкта господарювання, на які йому необхідно звернути увагу в процесі управління проектною діяльністю підприемства.

Ключові слова: підприємство, проєктна діяльність, проєкт, управління проєктною діяльністю, методи управління, чинники, функції управління.

Statement of the problem

Modern business conditions require businesses to operate effectively in a changing environment and respond flexibly to it. Factors such as increased competition in the markets and growing trends in customer focus are forcing businesses to implement various projects. Today, it is difficult to find any significant enterprise that does not have project activities and does not organize projects. At the same time, business competitiveness is determined not so much by the successful implementation of individual projects as by the correct organization of project activities and the effect that an enterprise receives from the implementation of the entire set of projects (or portfolio of projects). This highlights the problems associated with the organization of project activities and the management of project portfolios within different enterprises, which largely determines the ability of enterprises to gain strategic competitive advantages.

Analysis of recent studies and publications

The theoretical and practical foundations of the enterprise's project activity, as well as its management, are revealed in the studies of such scientists as Aleksieienko I. [1], Andrieieva T.[2], Bahashova N.[3] Vlasenko V. [4], Yermola A, [7], Karabin O. [8], Matiash N. [9], Morozov V. [10], Pavlova S. [11], Tarasiuk H. [12], Shkoda M. [17], Shokurov S. [16], and others.

The purpose of the article

The purpose of the article is to consider the essence of an enterprise's project activity, to define the functions of project management, the factors that influence the formation of enterprise projects, to substantiate project management methods, and to generalize approaches to project implementation in the practical activities of an enterprise.

Presentation of the basic material

In today's challenging business environment caused by the economic and political crisis in Ukraine, the ability of a business entity that produces goods, provides services, or conducts any other business to respond quickly and adequately to changes in the external and internal environment is becoming an important task.

Changes can affect an enterprise from any direction. The political situation, consumer demand and supply may change, scientific and technological development may evolve, or the number of employees or demographic composition of the business entity may change unexpectedly. Often, in order to maintain its competitive position and gain new competitive advantages, a company faces the need to develop and implement new projects.

Traditionally, project activities at an enterprise are understood as activities related to the initiation, preparation, execution, and completion of projects undertaken by the enterprise.

Today, there are different interpretations of the term project and project activity in the scientific literature.

A project is a time-bound process that has a defined beginning and end, usually limited by a date, but can also be limited by funding or deliverables, that is undertaken to achieve unique goals and objectives, usually to lead to b eneficial change or added value [13].

A project is a set of research, design, socio-economic, organizational, economic and other activities that are linked by resources, performers and timeframes, appropriately formalized and aimed at changing the object of management, which ensures the effectiveness of solving the main tasks and achieving the relevant goals over a certain period [12, p.10].

A project is a set of certain actions, documents, preliminary texts, an idea or plan to create a material object, a subject, or a theoretical product of some kind (a project cannot be created and implemented without creative activity) [6].

A project is areasonable design of a system of parameters of a future object, process or phenomenon in unity with the ways to achieve it [7].

The goal of a project is always its product, the complexity of which is determined by the number of components that make up the project, their types, and the connections between them.

Projects can be divided into 3 groups according to their purpose [10]:

- Strategic breakthrough projects - projects whose implementation brings about fundamental changes in the elements of the organization;

- Operational improvement projects - projects that improve the performance of elements of the organization;

- Compliance maintenance projects - projects that maintain the characteristics of the organization's elements at the required level.

The temporary nature of projects contrasts with businesses (processes), which are repeatable, permanent or partially permanent activities to produce products or services [18].

Thus, a project can solve a specific problem, a practical task, and the actual content of the problem and related tasks determine not only possible ways to solve it, but also the practical result obtained during the project.

A successful project takes time, material and financial resources.

The project must have the necessary financial resources, ensure the desired quality of work, use resources efficiently, and be acceptable to the client. In addition, the presentation of the management brief in the form of a project allows:

- clearly assign responsibilities, ensuring that all functional duties are fulfilled;

- summarize and minimize reporting;

- identify the necessary resources;

- identify and solve problems at an early stage [3].

As for project activity, it can be seen as the process of creating a new previously non-existent object, the process of finding complex solutions in an integrated way, as well as the creation and development of objects.

Project activity is a constructive and productive activity of a person aimed at solving a vital problem, achieving the final result in the process of goal setting, planning, and implementation of a project [8].

Project activities at the enterprise directly link projects, programs, and project portfolios to the achievement of the enterprise's strategic goals.

Today, project activities permeate all areas of business entities' functioning: in marketing, these are projects of marketing research, promotions, launching new products, conquering new markets; in research and development departments, these are projects of developing new products and technologies; in production, projects of mastering the production of new products, technical re-equipment, and the introduction of new technologies; in sales, projects of building a sales and distribution network [6].

But regardless of the business area in which the project activity will be formed, the main thing that a manager must do when transitioning to project activity is to introduce a new principle of subordination, team formation, and distribution of responsibilities. This is a difficult and time-consuming process - it requires rethinking the entire structure of the enterprise, revising the value chain, creating a performance measurement system, and much more. The best option is to involve specialists with experience in organizing project activities and restructuring enterprises, who will help to carry out this process with maximum speed and minimal loss of efficiency during the transition period.

The activities of almost any enterprise can be divided into two parts: project - related activities (project activities) and other operating activities.

An enterprise's project activities are an integral part of its production and operational activities. They are correlated as part and parcel. That is, the operating activities of an enterprise can be considered as a set of projects. From this point of view, an enterprise is a portfolio of implemented and promising projects. A distinctive feature of project activities from the functional activities of the enterprise (carried out at the enterprise by various functional departments: design department, planning and economic department, accounting department, technology department, etc.) is that the result obtained is unique, and the activity to achieve such a result is carried out at the enterprise for the first time. After achieving a given result, the project is completed and, accordingly, the project activities related to this project are completed.

With the entry of business entities into the market, complex restructuring projects are becoming relevant, including numerous subprojects related to changes in the project portfolio, organizational and production restructuring, implementation of financial management, controlling, etc. The structure of project activity is determined by the following components: motive, purpose, methods, means, subject, result [9].

Today, project management has become an indispensable tool that allows you to build a reliable bridge between the strategic goals of an enterprise and its operational and tactical activities. That is why project management is important in the formation and implementation of a project.

Project management is the planning, organization, and control of labor, financial, and material and technical resources of a project aimed at effectively achieving project goals. Thus, the project management functions include planning, organizing, and controlling the labor, financial, and material and technical resources used during project implementation. In addition, project management functions can be divided into three groups (Fig. 1).

Fig. 1 Division of project management functions into groups [5]

Project management (or project management) helps business entities to achieve their goals quickly and efficiently, and in the process, a whole system of complexes is formed that can be used to achieve the overall goals of the enterprise, as well as a scheme for the reasonable allocation of resources [14].

The main requirements for project management as part of project management activities include: project content management; project schedule management; project cost management; project risk management; project personnel management; project stakeholder management; project delivery management; project quality management; project information exchange management; project integration management.

All project management objects have common features: achieving the goal takes precedence over performing functions, the goal is interconnected with tasks, activities, resources, and indicators.

Thus, Project Management itself is a kind of project team and resource management process that can be organized and structured using specific methods (Table 1), thanks to which the project is completed successfully on time and achieves its goals [16].

Table 1

Methods of project management [19]

The project management process should be properly informatized and supported by modern technologies, which requires: creating and maintaining databases and databanks for all phases and stages of the project life cycle; implementing modern automated planning and control systems, as well as data processing and transmission tools.

Thus, every manager of an enterprise, institution or organization needs to be able to use universal knowledge and project management methods in order to be able to solve the following tasks: formulate the goals and objectives of the enterprise's project activities; formulate their justification; structure processes (identify sub -objectives, sub-processes, sub-processes, stages, etc.); determine financial needs and sources of funding; develop a search for contractors and other performers; prepare and conclude contracts; calculate the budget; determine the timing of.

For high-quality risk management of the enterprise's project activities and timely adoption of correct management decisions, the business entity needs to identify factors that negatively affect or may affect the project implementation. Such factors include: a small number of professional project managers and the inability to create an effective project team; lack of interest or financial capacity to learn project management (attending trainings, seminars, project manager clubs); inability to correctly and clear ly formulate project goals; inability to calculate all project costs; insufficient attention to such an important area of project management as risk management; insufficient attention to such an important area of project management as management.

Conclusions

Thus, today, the implementation of projects by domestic enterprises is driven by many factors of technological development of the economy, and, accordingly, by the rapidly changing needs of society. At the same time, projects today will be understood as the result of an enterprise's activities, which can be called unique, as it must differ from similar results of a competitor's activities in order to be in demand by consumers.

The main goal of organizing project activities is to implement the company's strategy. The company's project activity is one of the powerful tools for involving management and staff in the implementation of strategic goals, organizing crossfunctional interaction and its implementation to significantly improve the business entity. This will provide the company with the necessary profit to ensure the required level of competitiveness and development in a timely manner in the market environment.

At the same time, taking into account the peculiarities of market competition and the need for constant changes in enterprises related to project implementation, we can talk about the effective organization of project management or project activities as a type of enterprise activity, based on the general laws and patterns of enterprise management theory, so that research has a scientific basis for practical recommendations for ensuring professional activity as a project activity in enterprises.

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