sodobna informacijsko - core.ac.uk · analiza obstojecega stanja / delovnega procesa v podjetju,...

Univerza v Mariboru – Fakulteta za strojnistvo / Ekonomska fakulteta Magistrsko delo

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SODOBNA INFORMACIJSKO -

KOMUNIKACIJSKA RESITEV ZA VODENJE

PROJEKTOV V PROIZVODNIH PODJETJIH

Magistrsko delo

Študent(ka): Tine KOCBEK

Študijski program 2. stopnje:

Gospodarsko inženirstvo

Smer: Strojništvo

Mentor na FS: izr. prof. dr. Iztok PALCIC

Mentor na EPF: doc. dr. Igor VRECKO

Maribor, Maj 2015


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ZAHVALA

Zahvaljujem se mentorju izr. prof. dr. Iztok PALCIC

in mentorju doc. dr. Igor VRECKO za pomoč in

vodenje pri opravljanju magistrskega dela.

Zahvaljujem se tudi podjetju ANDRITZ AG,

predvsem g. Michael PICHLER in ga. Margarete

HERMANN za podporo z strani podjetja.

Posebna zahvala velja staršem, ki so mi omogočili

študij.

I thank prof. dr. Iztok PALCIC and doc. dr. Igor

VRECKO for assistance and guidance in the exercise

of the thesis.

I also thank the company ANDRITZ AG, in particular

Mr. Michael PICHLER and Mrs. Margarete

HERMANN for support in the company.

Special thanks to my parents who allowed my study.


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Table of Contents

1 UVOD ........................................................................................................................... - 6 -

OPREDELITEV OZ. OPIS PROBLEMA, KI JE PREDMET RAZISKOVANJA .. - 6 - 1.1

NAMEN,CILJI IN HIPOTEZE DIPLOMSKEGA DELA ....................................... - 7 - 1.2

PREDPOSTAVKE IN OMEJITVE DIPLOMSKEGA DELA ................................ - 8 - 1.3

PREDVIDENE METODE DIPLOMSKEGA DELA .............................................. - 8 - 1.4

2 PROJECT-ORIENTED BUSINESS MANAGEMENT .......................................... - 9 -

TRADITIONAL FORMS OF ORGANIZATIONAL STRUCTURES ................... - 9 - 2.1

PROJECT ORIENTED ORGANIZATION ........................................................... - 11 - 2.2

MANAGING A PROJECT ORGANIZATION – 2.3

RULES AND RESPONSIBILITIES ............................................................................... - 14 -

HOW TO COMPLETE FUTURE PROJECTS EFFECTIVELY .......................... - 18 - 2.4

3 COMMUNICATION AND COMMUNICATION CHANNELS IN

MANUFACTURING COMPANIES ............................................................................... - 21 -

COMMUNICATION PROCESS AND CHANNELS ........................................... - 21 - 3.1

EFFECTIVE BUSINESS COMMUNICATION IN MANUFACTURING 3.2

COMPANIES ................................................................................................................... - 23 -

3.2.1 Communication process in an organizational concept ............................... - 25 -

3.2.2 Effective communication within a project team .......................................... - 25 -

4 ORGANIZATIONAL AND IT CHALLENGES IN PROJECT MANAGEMENT –

ANDRITZ AG .................................................................................................................... - 28 -

COMPANY DESCRIPTION – ANDRITZ AG ..................................................... - 28 - 4.1

ANDRITZ TODAY – 4 BUSINESS AREAS ............................................................. - 30 - 4.2

4.2.1 Statistical data of the business areas ........................................................... - 32 -

ANDRITZ: TISSUE & DRYING .......................................................................... - 33 - 4.3

5 ANALYSIS OF THE CURRENT SITUATION ..................................................... - 35 -

COMMUNICATION ............................................................................................. - 35 - 5.1

5.1.1 Microsoft Outlook ......................................................................................... - 36 -

5.1.2 Microsoft Lync .............................................................................................. - 37 -


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DATA MANAGEMENT SYSTEMS (DMS) ........................................................ - 38 - 5.2

5.2.1 Data storage chaos – need for a DMS ......................................................... - 40 -

6 DESCRIPTION – MS SHAREPOINT 2010 ........................................................... - 41 -

MAIN APPLICATIONS OF MS SHAREPOINT 2010 ..................................................... - 42 - 6.1

REQUIREMENTS OF SHAREPOINT 2010 INTEGRATION – ANDRITZ PULP & PAPER 6.2

BUSINESS AREA .................................................................................................................. - 44 -

HISTORY OF MS SHAREPOINT 2010 INTEGRATION IN THE ANDRITZ PULP DRYING & 6.3

PAPER DIVISION ................................................................................................................. - 45 -

7 A DEVELOPMENT CONCEPT FOR PROJECTS .............................................. - 50 -

CREATING AN MS SHAREPOINT PROJECT WORKSPACE SITE (MSWS) ............................. - 54 -

START PAGE ............................................................................................................ - 54 - 7.1

MENU BAR ........................................................................................................... - 58 - 7.2

7.2.1 Collaboration area ........................................................................................ - 59 -

7.2.2 Project phase specific area ........................................................................... - 63 -

8 ANALYSIS OF RESULTS ....................................................................................... - 68 -

MANAGEMENT REQUIREMENTS IN COMMUNICATION AND DMS SOLUTIONS ........... - 69 - 8.1

8.1.1 Maintenance and maintenance costs ........................................................... - 69 -

8.1.2 Global access ................................................................................................. - 70 -

8.1.3 Data security ................................................................................................. - 70 -

8.1.4 Accessibility at failure .................................................................................. - 71 -

MANAGEMENT REQUIREMENTS ............................................................................... - 73 - 8.2

ENGINEERING REQUIREMENTS ................................................................................ - 74 - 8.3

EXCLUDED REQUIREMENTS, IMPROVEMENT POTENTIAL .................... - 77 - 8.4

9 SUMMARY ................................................................................................................ - 78 -

10 CONCLUSION .......................................................................................................... - 80 -

11 REFERENCES .......................................................................................................... - 82 -

12 ATTACHMENTS ...................................................................................................... - 83 -


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Figure 1: ANDRITZ Pulp & Paper - Functionally organizational structure ....................... - 10 -

Figure 2: ANDRITZ Pulp & Paper Process Map:

Example of a project-oriented organization ................................................................ - 12 -

Figure 3: ANDRITZ Pulp & Paper Tissue machine organizational chart:

A pure project organization ......................................................................................... - 14 -

Figure 4: 5 Principles of successful project management ................................................... - 15 -

Figure 5: Rated effectiveness of different organizational structures

(the most important project matrix) ............................................................................. - 17 -

Figure 6: Project audit and review checklist ....................................................................... - 20 -

Figure 7: A model of two-person communication with feedback ....................................... - 22 -

Figure 8: Communication channels in an organization ....................................................... - 23 -

Figure 9: Phases of Group Development ............................................................................. - 26 -

Figure 10: ANDRITZ AG headquarters in Graz, Austria ................................................... - 28 -

Figure 11: Turbine manufacturing, Graz headquarters ....................................................... - 30 -

Figure 12: PrimeLine Cardboard machine .......................................................................... - 31 -

Figure 13: ANDRITZ AG statistical results 2013 ............................................................... - 32 -

Figure 14: The end product - Hygienic tissue ..................................................................... - 33 -

Figure 15: PrimeLineCOMPACT vs. PrimeLineTM tissue machine ................................. - 34 -

Figure 16: Product portfolio of ANDRITZ Tissue & Drying ............................................. - 34 -

Figure 17: Microsoft Outlook, screenshot of Inbox ............................................................ - 37 -

Figure 18: Microsoft Lync, Screenshot of main menu and a Lync conversation ................ - 38 -

Figure 19: Example of discrepancies in data storage in the Tissue & Drying department . - 41 -

Figure 20: Example of an enterprise intranet site ................................................................ - 43 -

Figure 21: SharePoint 2010 web site of the Pulp Drying & Paper division ........................ - 46 -

Figure 22: PULP & PAPER - SharePoint 2010 subpage for Tissue & Drying ................... - 48 -

Figure 23: Overview of the ANDRITZ MS SharePoint Structure ...................................... - 49 -

Figure 24: 3D draft of a TAD nonwovens dryer – ANDRITZ Design. .............................. - 50 -


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Figure 25: Tissue machines built by ANDRITZ from 2001. .............................................. - 51 -

Figure 26: TAD Nonwoven – Organization chart ............................................................... - 53 -

Figure 27: Start page of the MSWS. ................................................................................... - 57 -

Figure 28: Menu bar of the MSWS provides access to all subpages. ................................. - 58 -

Figure 29: Document library – documents sorted into different work groups .................... - 59 -

Figure 30: External contacts listed alphabetically. .............................................................. - 60 -

Figure 31: A rough timetable of project milestones. ........................................................... - 60 -

Figure 32: A list of project milestones. ............................................................................... - 61 -

Figure 33: List of documents uploaded by the user............................................................. - 61 -

Figure 34: Organizational structure of the team/work groups. ............................................ - 62 -

Figure 35: Menu bar – Project phase area ........................................................................... - 63 -

Figure 36: Engineering & Design section. Filtered view for easier data handling. ............ - 64 -

Figure 37: Project risks. ....................................................................................................... - 64 -

Figure 38: List of project issues. ......................................................................................... - 65 -

Figure 39: Example of a team discussion. ........................................................................... - 65 -

Figure 40: Documents needed for a successful project start ............................................... - 66 -

Figure 41: Photo library of manufacturing progress. .......................................................... - 66 -

Figure 42: Management vs. engineering requirements ....................................................... - 68 -

Figure 43: User rights .......................................................................................................... - 70 -

Figure 44: MS SharePoint Workspace located on the desktop taskbar ............................... - 71 -

Figure 45: MS SharePoint Workspace synchronizes in the event of failure/offline work .. - 71 -

Figure 46: Summary of results achieved for management requirements. ........................... - 73 -

Figure 47: Summary of results achieved for engineering requirements. ............................. - 75 -

Figure 48: Analysis of results .............................................................................................. - 76 -


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SODOBNA INFORMACIJSKO - KOMUNIKACIJSKA RESITEV ZA

VODENJE PROJEKTOV V PROIZVODNIH PODJETJIH

Ključne besede: Microsoft SharePoint, ANDRITZ AG, Učinkovita projektna

kolaboracija, Sistemi za upravljanje s podatki, podatkovno upravljanje.

UDK klasifikacija: 004.6:005.8(043.2)

POVZETEK

Podjetje ANDRITZ AG spada med vecja avstrijska podjetja. Prepoznavno je zlasti na

področju strojegradnistva, posebej v proizvodnji papirnih strojev za papirno industrijo, kjer

je kot projektni vodja zaposlen tudi avtor nastajajoče magistrske naloge.

Avtor nastalega magistrskega dela je z dosedanjim delom v velikem podjetju, kot je to

podjetje ANDRITZ AG, pridobil mnogo izkusenj in novega znanja, predvsem pa prepoznal

določene slabosti, nujno povezane z velikimi organizacijami, kjer na projektih sodeluje vrsta

strokovnjakov iz razlicnih podrocij in oddelkov.

Glavni del magistrske naloge bo zato osredotočen na predstavitev IT orodja, primernega za

vzpostavitev sodobnega načina komuniciranja, izdelavo MS SharePoint okolja, prilagojenega

komunikacijskim potrebam oddelka ali projekta, izpeljavo snovalne faze projekta s pomocjo

IT orodja, zbiranje in selekcija povratnih informacij vpletenih ljudi glede uporabnosti orodja

in moznih izboljsav.

Cilj magistrske naloge bo ugotoviti ali lahko taksna resitev olajsa komunikacijo vpletenih

ljudi ter zvisa kakovost posredovanih informacij in opravljenih storitev v smeri kupca.

A MODERN ICT SOLUTION FOR MANAGING PROJECTS IN

MANUFACTURING COMPANIES

Key words: Microsoft SharePoint, ANDRITZ, Efficient project collaboration, data

management systems, data management.

ABSTRACT

ANDRITZ is one of the largest companies in our neighboring country. It has achieved

substantial recognition in the mechanical engineering sector, particularly in the manufacture

of paper machines for the paper industry – the department where I also found employment as

a project manager.


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During my work so far in such a large organization as ANDRITZ, I have gained a great deal

of experience and new knowledge, but above all, I have identified some potentials that are

necessarily connected with such a large organization, where projects involve many experts

from different areas and departments.

The main part of this master’s thesis focuses on the presentation of an IT tool, developing a

concept tailored to the needs of a particular project, developing the engineering phase of the

project with the help of the IT tool, collecting and selecting feedback from the people

involved, and then re-processing the concept of project management. The objective of the

master's thesis is to determine whether a solution of this kind would reduce the overall cost of

the project and facilitate communication between the people involved, as well as improving

the quality of information/service towards the customer.


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UPORABLJENE KRATICE

ANDRITZ - ANDRITZ GROUP

ICT - Information-Communication technology / Informacijska-komunikacijska

tehnologija

CEO - Chief executive officer / Glavni izvrsni direktor

DMS - Data management system / Sistem upravljanja z podatki

ERP - Enterprise resource planning / Poslovno nacrtovanje virov

MRP - Material requirements planning / Nacrtovanje materialnih zahtev

MSWS - MS SharePoint Workspace Site

URL - Uniform resource locator / Enolicni krajevnik vira

TAD – Through-air drying /

ASAP - ANDRITZ SAP system

WBS - Work breakdown structure


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1 UVOD

OPREDELITEV OZ. OPIS PROBLEMA, KI JE PREDMET 1.1

RAZISKOVANJA

Podjetje ANDRITZ AG spada med vecja podjetja v Avstriji. Veliko prepoznavnost si je

ustvarilo zlasti v segmentu strojegradnistva, posebej v proizvodnji papirnih strojev za papirno

industrijo, kjer sem svojo zaposlitev nasel tudi sam, kot projektni vodja.

Upravljanje in vodenje projektov je problem in umetnost, kako izvesti projekt s

sodelovanjem ljudi v neki organizaciji v dogovorjenem roku, z določenimi proizvodnimi

sredstvi in želenim učinkom (Hauc, 2007, str. 169). Po tej obrazložitvi se upravljanje in

vodenje projektov razlaga z dveh vidikov: z vključevanjem ljudi in kontrole njihovega

obnašanja pri oblikovanju in izvajanju projektov ter z vključevanjem sredstev za izvedbo

projekta. Podjetja, ki želijo biti uspešna in konkurenčna na trgu, morajo nujno skozi celoten

zivljenski cikel projekta minimirati svoje izdatke, poleg tega pa ponujati vedno boljso

kvaliteto izdelka in storitev.

Z dosedanjim delom v velikem podjetju (podjetju ANDRITZ) smo pridobili veliko

izkusenj, novega znanja, predvsem pa sem prepoznal tudi nekaj slabosti, ki so prisotne v

velikih organizacijah, kjer na projektih sodeluje veliko strokovnjakov iz razlicnih

podrocij/oddelkov. Ključne »slabosti«, ki jih prepoznavamo in jih bomo obravnavali so:

Ozka grla v interni/eksterni komunikaciji, ter neuporaba sodobnih komunikacijskih kanalov,

ki bi taksne tezave lahko omejile ali iznicile.

Nejasna distribucija odgovornosti in pravic sodelujocih strokovnjakov

Do danes so se te tezave resevale z veliko iznajdljivosti s strani zaposlenih - projektnih

vodij posameznih projektov. V zadnjem casu so se pojavila IT orodja na podrocju

vodenja/managementa projektov, komunikacije posameznih sodelujocih oddelkov, ki imajo

potencial na novo definirati komunikacijo v projektno orientirani organizaciji.

Opazamo da se v praksi pojavlja najvec tezav v komunikaciji oddelkov v zgodnjih fazah

projekta, t.i. »Engineering« fazi projekta, kjer mora vecje stevilo sodelujocih strokovnjakov

vzajemno sodelovati pri snovanju/sestavi/uskladitvi tehnoloskih resitev za produkt v


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nastajanju. Projektni vodja nadzoruje sodelovanje strokovnjakov, casovne omejitve v

projektu, ter na koncu oddajo dokumentacije kupcu.

Glavni del magistrske naloge bo osredotočen na predstavitev IT orodja (za

vodenje/management projekta/projektnega tima), izdelava koncepta/predloge prilagojenega

potrebam oddelka ali projekta, izpeljavo »Engineering« faze projekta s pomocjo IT orodja,

zbiranje in selekcijo povratnih informacij vpletenih ljudi o uspesnosti orodja, ter ponovno

predelavo koncepta/predloge za vodenje projektov. Cilj magistrske naloge bo ugotoviti, ali

lahko sodobne IT resitve predvsem znizajo stroske projekta in olajsa komunikacijo vpletenih

ljudi, ter zvisajo kakovost informacij/storitev v smeri kupca.

NAMEN,CILJI IN HIPOTEZE DIPLOMSKEGA DELA 1.2

Cilji magistrskega dela so:

Analiza obstojecega stanja / delovnega procesa v podjetju, izoliranje slabosti v procesu

vodenja projektov.

Predstavitev IT orodja za vodenje/management projekta/projektnega tima,

Ugotovitev možnosti ter vzpostavitev v podjetju

Izpeljava dolocene faze projekta ob uporabi IT orodja

Zbiranje povratnih informacij sodelujocihstrokovnjakov v projekt, izboljsava

koncepta/predloge IT orodja

Analiza učinkovitosti tega IT orodja

Hipoteze diplomskega dela:

H1 : Vecje stevilo vpletenih ljudi ali interakcij, pomeni padec v kvaliteti prenosa informacij. Razlaga: Ob veliki kolicini podatkov in informacij prihaja v projektnem timu lahko do zmede, ki se odraza predvsem na

daljsih casih potovanja informacij, pravtako pa tudi na razlicnih verzijah iste informacije. Vse to lahko znizuje kvaliteto

ciljnega produkta.

H2 : Sodobna informacijsko – komunikacijska orodja ponujajo resitev za preobremenjene

komukacijske kanale. Razlaga: Trenutno se uporabljajo klasicni nacini odlaganja informacij (Data management system). Obstajajo sodobne

informacijsko – komunikacijska orodja, ki ta problem odpravijo. H3 : Boljsi komunikacijski kanali in interakcija vpletenih znizujejo stroske projektov. Razlaga: Hitrejse in bolj kvalitetno krozenje informacij se odraza v hitrejsem resevanju problemov in bolj direktnem pristopu

k le-tem. Vsaka delovna ura manj, pa pomeni nizje stroske za projekt. H4 : Aktivna uporaba IT orodja izboljsa zaposlenim delovne pogoje pri delu na projektih. Razlaga: Sistem, ki bi omogocil vpletenim lazji pregled nad projektom, dostop do kvalitetnih informacij in jim tudi

avtomatsko nalozil naloge in cilje, bi razbremenil tako sodelujoce, kot tudi vodilne v projektu.

Na osnovi analize učinkovitosti orodja bomo poskušali ugotoviti, ali je vpeljava taksnega

orodja v delovni praksi izvedljiva, kaksne stroske to predstavlja, ter kako vpliva na delo


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vpletenih. Cilj naloge ne bo kasnejsa vpeljava orodja med zaposlene, ter solanja povezana s

tem.

PREDPOSTAVKE IN OMEJITVE DIPLOMSKEGA DELA 1.3

Omejitve za magistrsko nalogo vidim predvsem v:

Dostopnosti projekta iz podjetja ANDRITZ, ki se bo nahajal v zacetni t.i. »Engineering« fazi

(pilotni projekt) in na katerem bomo testirali uporabnost orodja SharePoint 2010.

Pripravljenosti sodelujocih strokovnjakov/projektnega timapri sodelovanju razvijanja IT

orodja v pilotskem projektu. Predvsem mislimo s tem na spremembo utecenega delovnega

procesa zaposlenih.

PREDVIDENE METODE DIPLOMSKEGA DELA 1.4

V magistrskem delu bomo uporabili:

Studijo realnega problema v realnem podjetju, in predstavil resitve za nadaljni proces v

podjetju.

Studija primera bo podkrepljena z teoreticnim gradivom priznanih strokovnjakov s pomocjo

več znanstveno raziskovalnih metod:

metoda deskripcije (opisovanje teoretičnih konceptov);

metoda klasifikacije (razvrščanje in primerjanje pojmov);

metodo analize (razčlenitev, vrednotenje dejstev in pojmov);

metoda komparacije (primerjanje dejstev);

metoda kompilacije (prevzemanje spoznanj in stališč drugih avtorjev);

metodo sinteze (sestavitev, združitev pojmov v neko celoto)

Podatki bodo pridobljeni iz:

Strokovna literatura (knjige, članki, revije…);

»Know-how«/literatura podjetja ANDRITZ

Spletne strani;


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2 PROJECT-ORIENTED BUSINESS MANAGEMENT

Today, organizations and international companies are facing new challenges in a turbulent

environment. It is believed that these challenges and risks can be well observed and

approached with a project-oriented organizational structure and work approach. Thus, this

thesis presents some project-oriented organizational structures.

TRADITIONAL FORMS OF ORGANIZATIONAL STRUCTURES 2.1

First of all, we have to consider an organization as being a system into which human

and physical elements are integrated in order to achieve specific goals. According to systems

theory, organizations are partly characterized by their structure – the form of relationships that

links their elements and processes. Organizations are based upon two types of structure:

formal ones that describe relationships, chains of command, as well as subdivisions and

grouping of elements; and so-called informal structures, which are not published and describe

relationships that evolve between the interactions of employees. In other words, formal

organizations describe how employees are supposed to relate, while the informal organization

is how they want to relate. Furthermore, informal organizational structures take groupings,

management figures, and communication lines into consideration that exist in the

organization, but do not appear anywhere on the organization chart (Nicholas, 2001, 433).

When setting up an organizational structure, we have to be aware that there is no best

structure. Each structure should be applied according to the respective company's needs,

environment, and expectations. The next section summarizes the main characteristics of a

traditional form of organization as shown in figure 1.

In the functional form of an organization, the organization or company is divided into

different departments, such as finance, human resources, marketing, production, and logistics.

Subunits communicate and collaborate according to procedures and rules, which are

prescribed by the persons in authority (managers). There is always a chain of command in the

functional form of organizations, which can be either top-down or bottom-up to the CEO. A

functional form of organization is very suitable for stable (non-turbulent) environments,

which is why this was the most prevalent organizational structure in the past few decades.


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However, it is important to emphasize that most organizations have different organizational

structures. We can take into consideration the fact that most of the organizations are also

geographically oriented. But, of course, an internal, functional form is most likely to be

integrated into each geographical subunit.

Figure 1: ANDRITZ Pulp & Paper - Functionally organizational structure

Source: [ANDRITZ confidential]

Another common form of organization is product differentiation, which is convenient

for companies with a wide variety of products. It is believed that General Motors, Henkel, and

Kraft foods benefit from this sort of structure. In addition, these companies are split into

subdivisions including their own marketing, manufacturing, and research and development

with design. Integration of and communication between these divisions are supported by

standardized reporting as well as financial rules and procedures.

“Organizations may also differentiate by customer type. For example, companies with

large military sales often establish a separate division because federal requirements for

proposals, contracting and product specifications differ substantially from those for


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commercial customers. The level of integration between customer divisions depends on the

degree of interdependency between their product lines; typically, however, integration is low.

In the process differentiated form, some logical process or sequence of steps (e.g., design,

then development, then assembly, then inspection, etc.) is the basis of differentiation. A

higher level of integration is required among process differentiated subunits, because they are

sub sequentially related and problems in one area directly impact the other areas. These

subunits tend to rely on coordinated plans and schedules as the primary means of integration.

Other means such as task forces and teams are necessary when unanticipated problems arise

or as task uncertainty increases” (Nicholas, 2001, 437).

Traditional forms of organization are appropriate only for standard procedures, stable

environments, and causal problems, which occur during the business process. When the

environment changes or new problems arise, we can only add more procedures, rules, and

levels of management in each subunit. On the other hand, we are less flexible and we have

greater difficulties with such an approach. Since environments are specified nowadays as

turbulent or at least with parameters like change, uncertainty, globalization, complexity and

unpredictability, we are forced to apply a project-oriented organizational structure, creating

project teams inside our company.

PROJECT ORIENTED ORGANIZATION 2.2

Firstly, we have to ask ourselves which projects will or are at least expected to be concluded

successfully. Projects often demand a variety of resources, including people, subunits,

material, capital, and time. In many cases, a project is a continuous improvement process and

target-oriented in order to satisfy a specific need. It is essential that subunits in project-

oriented organizations work together because it is necessary to estimate requirements,

combine them, and conduct work according to the project study. Besides this, we should be

aware that the risks and uncertainties increase with the size of the project.

Project-oriented organizations have two main advantages for executing projects

successfully (Nicholas, 2001, 438):

Horizontal hierarchy (relations between co-workers and subunits) is implied;

They are well-equipped and differentiated according to project requirement.


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Subunits in project-oriented organizations tend to be better linked and more

cooperative as they are not able to co-exist or work without each other (figure 2):

Figure 2: ANDRITZ Pulp & Paper Process Map: Example of a project-oriented organization


As shown before, project organizations are characterized by their horizontalness or use

of direct communication between the parties involved in a problem. Horizontal relations cut

across lines of authority and move decisions to the level of the parties affected. Project

organizations improve upon informal, personal contacts by incorporating horizontal relations

into the formal structure. They do this through the use of functions referred to as integrators,

which reduce the number of decisions referred up on a common task. Several kinds of

integrators are used in projects (listed in order of increasing authority, need and cost):

Liaison role.

Task forces and team.

Project expeditors and coordinators.

Project Managers.

Matrix managers.

Integrating contractors” (Nicholas, 2001, 439).

These functions are crucial when we are implementing a project-oriented business process

in a company. The liaison role can be described as a function attached to an employee


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(department leader) that links units at lower levels. For example, an employee with such a

status can be very helpful in KANBAN manufacturing because he is obligated to supply

resources just-in-time for mass production by notifying impending shortages. Since the liaison

role is often not sufficient, we are forced to involve employees from other departments (areas)

of organization. A task force is a synonym for a team of representatives taken from different

units so that they can solve a problem together. Instead of making several calls to an

employee with a liaison role, they meet several times or as needed, and when the solution is

implemented, they simply disband. It is believed that the most successful task forces have 10

members or less. (Nicholas, 2001, 442).

It should be noted that teams are the core of project-oriented organization. The simplest

projects can be executed by one team, but the most complex ones are often observed and

executed by a convention of several teams that have formed inside the company or been

established by means of outsourcing and numerous contracts (integrating contractors). That is

why the team leader’s primary role in project management is integration.

However, one team leader is often not sufficient, depending on the variety of tasks to be

handled. In this case, we recruit a project expeditor, whose main activity is to assist when it

comes to decision-making, controlling, scheduling tasks, and making suggestions. Since we

implement horizontal relations in project organizations, there is a risk of a future lack of

coordination. That is one of the reasons why we need to involve a project coordinator. The

project coordinator has no line authority, but he has the authority to accept or decline a

project’s budget and schedules, and to rate task performances.

“Projects that entail high-level complexity, major resource commitments, and heavy

stakes in the outcome require a pure project form of organization. A pure project organization

is a separate organization (figure 3), similar to another company, especially created for and

singularly devoted to achievement of the project goal. Whatever the projects must have to

afford them the highest priority – all necessary human and physical resources – is

incorporated into the pure project organization” (Nicholas, 2001, 442).


- - 14 - -

Figure 3: ANDRITZ Pulp & Paper Tissue machine organizational chart: A pure project organization

Source: [ANDRITZ Confidential]

The main advantage of a pure project organization is the ability to react swiftly when it

comes to fluctuations in demand or supply in its environment. These organizations typically

introduce liaisons, task forces, and other roles among employees. The leader in a pure project

organization is called the project manager. He has full authority over all parties involved in

the project. Besides this, he manages the physical resources and employees or contractors

because he has the authority to seal new deals. The project manager can make proposal

preparations, issue accurate forecasts, and reconcile discrepancies within the project study.

The project manager also allocates resources and borrows the best people from other

functional areas in pursuit of his main goal – completing the work successfully.

MANAGING A PROJECT ORGANIZATION – RULES AND 2.3

RESPONSIBILITIES

Assuming that we are trying to establish a project-oriented business process, we cannot

avoid setting up a pure project organization. We can evaluate the necessary resources only at

the point where the organization is defined. Thus, one of the advantages of setting up a pure

project organization is that the project manager is able to predict adequate resources (human,


- - 15 - -

financial, material, etc.). However, pure project organization is not a guarantee for successful

project management, which should also follow the principles listed below (Turner, 2009, 123)

and shown in figure 4:

Negotiate a contract between the parties involved (Implementation).

Assign roles and responsibilities at all levels of work breakdown (Design).

Adopt a clear and simple reporting structure (Operation, Tuning, and Maintenance).

Balance results through the breakdown structure (Development and Testing).

Focus on results: what to achieve, not how to do it (Planning and Requirements

Definitions).

Figure 4: 5 Principles of successful project management

Source: [http://www.efederalsystems.com/picts/Project-management.jpg]

Negotiating a contract is usually the first part of a project-oriented business approach

strategy. Within a strategic level of negotiation, we should define the relation between parent

organization and project team. This can help us evaluate the required resources and predicted

benefits for the team and the parent company. The second, tactical level in negotiating defines

the relationship between project team members and how will they work together in order to

achieve the goals for which they are responsible. We must be aware that people (employees

and project team members) need to see the benefits of implementing an “internal

organization” within the parent company if we want a successful and motivated group. Thus,

it is important for project managers to be involved in their work and continuously work on


- - 16 - -

interpersonalization of the company’s goals. Members of a project team should (Turner, 2009,

125):

See the benefit of the project to the parent organization and want to work for a

successful company.

Know that it is their job to work on projects and that their annual bonus may depend

on it, so you want to convince them that your organization offers the best

opportunities.

Be aware that if they help you, you will help them.

Defining roles and responsibilities is an important part of project management, but

unfortunately many project management systems only focus on one question: Who is to do

the work? Actually, it is more than that – several roles and responsibilities may be needed

(Turner, 2009, 126):

Who is to execute the project’s tasks?

Who is to take decisions?

Who is to manage progress?

Who must provide information and opinions?

Who may provide knowledge?

However, it is important to emphasize that, according to statistics (Gobeli, Larson,

1987), successful projects can only be achieved with a project-based organization. Two

thousand projects that were started (or in progress or completed) in different forms of

organizations were analyzed and, as shown in figure 5, projects in project-based organizations

were very effective and concluded successfully.


- - 17 - -

Figure 5: Rated effectiveness of different organizational structures (the most important project matrix)

Source: [https://d31owemgwclw9w.cloudfront.net/content/CEPL/CEPL551/cepl551_234_matrxprint_en-us.pdf]

Since then, researchers and economists have found a few drawbacks in project-based

organization, where the organizations do away with the functional hierarchy and people

belong to project teams only. However, it was proven that this can cause the parent

organization to lose cohesiveness. You also need functions to be responsible for knowledge

management. Without functions the organization can forget how to do its business. Peymai

and Turner (2009, 130) suggested the adoption of versatile organization. The versatile

organization assumes that the parent organization is operating in the top half, supporting the

team and providing people. However, in versatile organization people have only one boss;

they either belong to a team, in which case they take their instructions from the team leader,

or they are in the functional organization, in which case they take their instructions from the

functional manager, which co-exists in this form of organization.

According to these 4 statements (Turner, 2009, 131), a versatile approach has several

advantages that overlap with project-based organization:

The size and composition of teams can be changed in response to changing customer

requirements.

It provides a process focus; the organization’s procedures are written to describe how

it processes products to satisfy customers’ requirements.

People have one boss, avoiding the problems of split loyalties.

It retains the functional organization, avoiding the problems outlined below and which

arise with the pure project-based approach.


- - 18 - -

Implementing project-based organization or versatile organization can help us in describing

and assigning responsibilities to team members. The most important responsibilities to be

divided between team members should be:

Executing the work.

Taking sole or final decisions.

Taking decisions jointly or partly.

Controlling progress.

Providing tuition on the job.

Consulting within the team.

To advise (others).

Being informed (Turner, 2009, 123).

HOW TO COMPLETE FUTURE PROJECTS EFFECTIVELY 2.4

We start each project by wishing that the outcomes or effects of our work will be considered

as positive and helpful (economic profit or increased “goodwill”). Firstly, we have to obtain

the customer’s approval for the deliverables from the project team, which can be obtained by

following these six steps (Wysocki, 2000, 303):

Step 1: Obtain client acceptance of deliverables.

It should be noted that the project is executed when the client so decides. However, the

project manager should demonstrate successfully that the deliverables (service or product)

meet the client’s specifications. This can be achieved very informally, in a brief ceremony, or

it can also be very formal, involving presentation or testing.

Step 2: Ensure that all deliverables are installed.

The next phase in completing the project is to go live with the deliverables. This is

mostly handled by the IT department (computer systems). Installation can also include phases,

cutovers, or some rollout strategy. Sometimes, specific events or activities can turn things

over to the consumer. This initiates the start of numerous closing activities that are related to

documenting the project and final reporting.

Step 3: Ensure that documentation is in place.


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Documentation always seems to be the most difficult part of the project to complete.

There is little glamour and no “attaboys” in documentation work. However, this does not

diminish its importance. We can find at least five reasons, which are listed below, why

documentation is important: it may provide reference for future changes in deliverables; it

serves as a historical record for estimating duration and cost on future projects, activities, and

tasks; it is a training resource for new project managers; it provides input for further training

and development of the project team; it serves as input for performance evaluation by the

functional managers of the project team members.

Step 4: Obtain client sign-off on final report.

The final report and complete documentation should contain a project overview

statement, project proposal and backup data, original and revised project schedules, minutes

of all project team meetings, design documents, copies of all written documentation,

outstanding issue reports, final report, sample deliverables (if in context), client acceptance

documents, and an audit report. However, it is widely held that the project manager should

decide what kind of documentation is appropriate and sufficient according to the type and size

of the project.

Step 5: Conduct post-implementation audit.

By post-implementation audit we understand an evaluation of the project’s goals and activity

achievement as measured against the project plan, budget, time deadlines, quality of

deliverables, specifications, and client satisfaction. The log of project activities provides

baseline data for this audit, which can be executed with checklists (figure 6):


- - 20 - -

Figure 6: Project audit and review checklist

Source: [http://www.slideshare.net/rsrivastava91/project-audit-review-checklist]

Before closing a project, we should review these six general topics:

o Was the project goal achieved?

o Was the project work completed on time, within budget, and according to

specification?

o Was the client satisfied with the project results?

o Was business value realized?

o What lessons were learned about your project management methodology?

o What worked and what did not?

Step 6: Celebrate success.

Project managers and parent organizations should consider the advantages of some

recognition for the project team at the end of the project. This can be as simple as a

commemorative mug, a tee shirt, a pizza party, tickets to the ball game, or something more

formal such as bonuses. We should not pass up an opportunity to show the team our

appreciation; loyalty, motivation, and commitment by your professional staff are the result of

this simple act on our part.


- - 21 - -

3 COMMUNICATION AND COMMUNICATION CHANNELS

IN MANUFACTURING COMPANIES

COMMUNICATION PROCESS AND CHANNELS 3.1

The communication process is initiated when person A perceives some stimulus – here we are

assuming literal perception, such as the ability to see, to hear, to taste, to smell, or to touch.

Secondly, this person (A) interprets what he has perceived – is it important, unusual, causal?

In the next phase, he decides which information he is going to choose and forward to person

B. Now person A decides upon words, gestures, clothing, and pictures with which he encodes

information that will be forwarded to person B. Person A transmits the message using some

channel. Channels in organizations include memos, phone calls, meetings, billboards, TV ads,

and electronic mail, to mention but a few.

Person B must perceive the message firstly and then receive it. Thus, person B needs to

decode the message, i.e. extract its meaning from the signs or symbols. Person B then repeats

the steps that Person A has gone through: interpreting the information, choosing a response,

and encoding it. The response person B sends back is named feedback. Feedback can be direct

and immediate or indirect and delayed; it may be verbal or nonverbal (Locker, 1989, 113).

Noise can interfere with every aspect of the communication process. Noise may be

physical or psychological. Physical noise could be a phone line with static, a truck on a road,

and even handwriting that is hard to read. Psychological noise could include not liking a

speaker, being concerned about something other than the message, or already having one’s

mind made up on an issue. A simplified model of two-person communication with feedback

is shown below (figure 7):


- - 22 - -

Figure 7: A model of two-person communication with feedback

Source: [http://www.mbaknol.com/wp-content/uploads/2010/04/communication-process-mbaknol.gif]

Channel overload occurs when the channel cannot handle all the messages that are

being sent. A small business may have only two phone lines; no one else can get through if

both lines are in use. Information overload occurs when more messages are transmitted than

the human receiver can handle. Some receivers process information “first come, first served.”

Some may try to select the most important messages and ignore others. A third way is to

depend on abstracts or summaries prepared by other people. None of these ways is considered

to be completely satisfactory (Thill, Bovee, 2013, 45).

Channels vary in speed, accuracy of transmission, cost, number of messages carried,

number of people reached, efficiency, and ability to promote goodwill. Depending on the

audience, your purposes, and the situation, one channel, may be better than another. Oral

channels are better for group decision-making, allow misunderstandings to be cleared up more

quickly, and seem more personal. Shorter communication channels are more accurate than

longer chains. And all-channel patterns, where everyone can communicate with everyone

else, produce better group decisions and greater satisfaction.


- - 23 - -

EFFECTIVE BUSINESS COMMUNICATION IN 3.2

MANUFACTURING COMPANIES

Improving communication skills could be considered as the most important task in our career

because even having the greatest ideas in the word is no good if you have no words to express

them. Some jobs, such as sales and customer support, are primarily about communicating. In

fields such as engineering or finance, you often need to share complex ideas with executives,

customers, and colleagues, and your ability to connect with people outside your field can be

as important as your technical expertise. If you have an entrepreneurial urge, you will need to

communicate with a wide range of audiences, from investors, bankers, and government

officials to employees, customers, and business partners.

As you take on leadership and management roles, communication becomes even more

important. The higher you rise in an organization, the less time you will spend using the

technical skills of your particular profession and the more time you will spend

communicating. You will communicate through different channels that are usually distributed

through industrial organizations (figure 8):

Figure 8: Communication channels in an organization

Source: [http://www.escueladefeminismo.org/local/cache-vignettes/L450xH300/hairpin-3746e.jpg]


- - 24 - -

Aside from the personal benefits, communication should be important to you because it is

important to your company. Effective communication helps businesses in numerous ways. It

provides (Bovee, Thill, 2009, 86):

Closer ties with important communities in the marketplace.

Opportunities to influence conversations, perceptions, and trends.

Increased productivity and faster problem-solving.

Better financial results and higher return for investors.

Earlier warning of potential problems, from rising business costs to safety-critical

issues.

Stronger decision-making based on timely, reliable information.

Clearer and more persuasive marketing messages.

Greater employee commitment in their work, leading to higher employee satisfaction

and lower employee turnover.

Effective communication strengthens the connection between a company and all of its

stakeholders, those groups affected in some way by the company’s actions: customers,

employees, shareholders, suppliers, neighbors, the community, the nation, and the world as a

whole. Conversely, when communication is ineffective, the results can range from being time-

wasting to tragic. To make your communication efforts as effective as possible, focus on

making them practical, factual, concise, clear, and persuasive:

Provide practical information (give recipients useful information, whether it is to help

them perform a desired action or understand a new company policy).

Give facts rather than vague impressions (use concrete language, specific detail, and

information that is clear, convincing, accurate, and ethical; even when an opinion is

called for, present compelling evidence to support your conclusion).

Present information in a concise, efficient manner (concise messages show respect for

people’s time, and they increase the chances of a positive response).

Clarify expectations and responsibilities (craft messages to generate a specific

response from a specific audience).

Offer compelling, persuasive arguments and recommendations (show your readers

precisely how they will benefit from responding to your message the way you want

them to).


- - 25 - -

3.2.1 Communication process in an organizational concept

In addition to having the proper skills, you need to learn how to apply those skills in the

business environment, which can be quite different from the social and scholastic

environments you are accustomed to. Every organization has a formal communication

network, in which ideas and information flow along the lines of command (the hierarchical

levels) in the company’s organization structure. Throughout the formal network, information

flows in three directions (Bovee, Thill, 2013, 187):

Downward communication flows from executives to employees, conveying executive

decisions and providing information that helps employees do their jobs. Upward

communication flows from employees to executives, providing insight into problems and

enabling them to make intelligent decisions. Horizontal communication flows between

departments to help employees share information, coordinate tasks, and solve complex

problems.

Every organization also has an informal communication network, often referred to as

the grapevine or the rumor mill, which encompasses all communication that occurs outside

the formal network. Some of this informal communication takes place naturally as a result of

employee interaction both on the job and in social settings, and some of it takes place when

the formal network doesn’t provide information that employees want. In fact, the inherent

limitations of formal communication networks helped spur the growth of social media in the

business environment (Bovee, Thill, 2013, 214).

3.2.2 Effective communication within a project team

The teamwork interactions among the employees represent one of the most essential elements

of interpersonal communication. Collaboration – working together to meet complex

challenges – has become a core job responsibility for roughly half the organizations in a

turbulent environment. Your communication skills will pay off handsomely in these

interactions because the productivity and quality of collaborative efforts depend heavily on

the communication skills of the professionals involved.

A team is a unit of two or more people who share a mission and the responsibility for

working to achieve a common goal. Teams are often at the core of participative management,

the effort to involve employees in the company’s decision-making. A successful team can

provide numerous advantages, such as increased information and knowledge, increased


- - 26 - -

diversity of views, increased acceptance of a solution, and higher performance levels.

Problem-solving teams and task forces, which were discussed earlier, assemble to resolve

specific issues and then disband when their goals have been accomplished. The diversity of

opinions and experience can lead to better decisions, but competing interests can lead to

tensions that highlight the need for effective communication.

Teams typically evolve through a number of phases on their way to becoming

productive (figure 9):

Figure 9: Phases of Group Development

Source: [http://blogs.atlassian.com/wp-content/uploads/tuckman_team_development-600x324.png]

A variety of models have been proposed to describe the evolution towards becoming a

productive team. Here is how a commonly used model identifies the phases a problem-solving

team goes through as it evolves (Locker, 1987, 283):

Orientation (team members socialize, establish their roles, and begin to define their

task or purpose).

Conflict (team members begin to discuss their positions and become more assertive in

establishing their roles. Disagreements and uncertainties are natural in this phase).

Brainstorming (Team members air all the options, discuss the pros and cons fully, and

at the end of this step, they settle on a single solution).


- - 27 - -

Emergence (Consensus is reached when the team finds a solution that all members are

willing to support – even if they have reservations).

Reinforcement (The team clarifies and summarizes the agreed solution. Furthermore,

members receive their assignments in carrying out the group’s decision, and they

make arrangements for following up on those assignments).


- - 28 - -

4 ORGANIZATIONAL AND IT CHALLENGES IN PROJECT

MANAGEMENT – ANDRITZ AG

COMPANY DESCRIPTION – ANDRITZ AG 4.1

The ANDRITZ GROUP is a globally leading supplier of plants, equipment, and services for

hydropower stations, the pulp and paper industry, the metalworking and steel industries, and

solid/liquid separation in the municipal and industrial sectors The Group is headquartered in

Graz, Austria, and has a staff of approximately 24,100 employees worldwide. ANDRITZ

operates over 250 production sites, service and sales companies all around the world.

Figure 10: ANDRITZ AG headquarters in Graz, Austria

Source: [http://www.ANDRITZ.com/group/gr-about-us/gr-history.htm]

1852-1900: Beginnings as an iron foundry

ANDRITZ has its origins in an iron foundry that was established in 1852 by the Hungarian

entrepreneur Josef Körösi in Andritz, a suburb of the city of Graz. Soon after its foundation,

the company’s production program was extended to include large capital goods, such as


- - 29 - -

cranes, pumps, water turbines, and later also bridges, steam boilers and engines, as well as

mining equipment.

1900-1946: World Wars and the Great Depression

At the end of the First and Second World Wars and during the Great Depression in the early

1930s, ANDRITZ’s production came to a standstill.

1946-1980: Growth and new products

In 1949, ANDRITZ began a lasting cooperation with the Escher Wyss Group of Switzerland,

initially in the water turbines sector. The ANDRITZ product portfolio was revised:

Production of steam engines and air compressors came to an end, and the focus shifted

towards water turbines, centrifugal pumps, cranes, and steel structures.

1980s: Crisis and recovery

The second global oil crisis and worldwide economic stagnation in the early 1980s caused a

drop in ANDRITZ’s order intake and the company was operating at a loss, but Austrian

government subsidies and drastic rationalization measures enabled the company to survive.

In 1987, AGIV AG, an investment company in Frankfurt, Germany, acquired a majority

stake in ANDRITZ. ANDRITZ began to change its strategic direction from being a licensee

of other equipment manufacturers to become a leading international supplier of its own high-

tech production systems.

Since 1990: Growth through acquisitions and research & development

Since 1990, ANDRITZ has acquired and integrated more than 60 companies, pursuing its

policy of complementary acquisitions. The largest transactions in terms of sales were the

acquisition of Ahlstrom Machinery Group in 2000/2001 (making ANDRITZ a globally

leading supplier of pulp production systems) and VA TECH HYDRO in 2006 (advancing

ANDRITZ to a globally leading supplier of electromechanical equipment for hydropower

plants).

2001/2003: Listing on the Stock Exchange

In 2001, ANDRITZ went public on the Vienna Stock Exchange. Two million new shares

were placed successfully with national and international investors.


- - 30 - -

2003 saw the Secondary Placing of ANDRITZ shares on the Vienna stock exchange. The

financial investors sold their entire shareholdings in ANDRITZ, which resulted in a rise in

free float to over 70%.

ANDRITZ TODAY – 4 Business Areas 4.2

The ANDRITZ GROUP ranks among the global market leaders in all four of its business

areas. One of the Group’s overall strategic goals is to strengthen and extend this position. At

the same time, the company aims to secure the continuation of profitable growth in the long

term.

ANDRITZ HYDRO

ANDRITZ Hydro supplies electromechanical equipment for hydropower stations. With over

170 years of accumulated experience and more than 30,000 turbines installed totaling

approximately 420,000 megawatts of output, the business area is one of the world’s leading

system suppliers, offering the complete product portfolio, including turbines, generators, and

additional equipment of all types and sizes: “from water to wire” for small-scale and large

hydropower stations up to outputs of more than 800 megawatts per turbine unit.

Figure 11: Turbine manufacturing, Graz headquarters


ANDRITZ PULP & PAPER

ANDRITZ Pulp & Paper is a leading global supplier of equipment, systems, and services for

the production and processing of all types of pulps, paper, tissue, and cardboard. The

technologies cover the processing of logs, annual fibers, and waste paper; the production of

chemical pulp, mechanical pulp, and recycled fibers; the recovery and reuse of chemicals; the


- - 31 - -

preparation of paper machine furnish; the production of paper, tissue, and board; the

calendaring and coating of paper, as well as treatment of reject materials and sludge. The

service range includes modernization, rebuilds, spare and wear parts, service and

maintenance, as well as machine transfer and second-hand equipment. Biomass, steam, and

recovery boilers, gasification plants for energy production, flue gas cleaning plants, plants for

production of nonwovens, dissolving pulp, plastic films, and panel boards (MDF), and

recycling plants are also allocated to the business area.

Figure 12: PrimeLine Cardboard machine


ANDRITZ METALS

ANDRITZ Metals is one of the leading global suppliers of complete lines for the production

and processing of stainless steel. These lines consist of equipment for cold rolling, heat

treatment, surface furnishing, strip coating and finishing, punching and deep drawing, and for

the regeneration of pickling acids. In addition, the business area supplies lines for the

production and processing of carbon steel and non-ferrous metal strip, resistance welding

equipment for the metalworking industry, as well as turnkey furnace systems for the steel,

copper, and aluminum industries.

ANDRITZ SEPARATION

ANDRITZ Separation is one of the leading suppliers of technologies and services in the

solid/liquid separation and thermal treatment areas for the environmental sector (particularly

treatment of municipal and industrial wastewater), for mining and mineral processing, the

chemical industry, and for the food and beverages industries.


- - 32 - -

4.2.1 Statistical data of the business areas

Figure 13: ANDRITZ AG statistical results 2013

Source: [ANDRITZ AG Yearly financial report]


- - 33 - -

ANDRITZ: TISSUE & DRYING 4.3

PrimeLine tissue machines by ANDRITZ are flexible and reliable tissue machines that

incorporate both experience and innovation. From complete tissue production lines down to

single components, ANDRITZ delivers state-of-the-art tissue and air drying technology.

Experience at production speeds exceeding 2,000 m/min, high-quality paper grades, as

well as advanced solutions to reduce overall energy consumption form the basis of the

offerings.

What is tissue?

Tissue is a lightweight paper or light crêpe paper. Tissue can be made from recycled paper pulp.

Key properties are: Absorbency, basis weight, thickness (caliper), bulk (specific volume), brightness, stretch,

appearance, and comfort.

Tissue is produced on a paper machine that has a single, large, steam-heated drying cylinder (Yankee dryer)

fitted with a hot-air hood. The raw material is paper pulp.

The properties are controlled by pulp quality, creping, and additives (both in base paper and as coating). The

wet strength is often an important parameter for tissue.

Figure 14: The end product - Hygienic tissue

Source: [http://www.google.com/imghp?hl=sl]

Product portfolio – tissue machines

The main product of ANDRITZ Tissue & Drying are PrimeLine tissue machines for

producing tissue, however drying technologies are used in various types of paper industries.

PrimeLine tissue machines are available as PrimeLineCOMPACT, PrimeLineTM,

and PrimeLineTAD tissue machines.

http://en.wikipedia.org/wiki/Paper

http://en.wikipedia.org/wiki/Yankee_dryer

http://en.wikipedia.org/wiki/Pulp_(paper)

http://en.wikipedia.org/wiki/Wet_strength


- - 34 - -

PrimeLine tissue machines

Figure 15: PrimeLineCOMPACT vs. PrimeLineTM tissue machine

Source: [http://www.ANDRITZ.com/no-index/pf-detail?productid=11081]

Figure 15 shows us the product portfolio of ANDRITZ Tissue & Drying in a ratio between

gross paper production per day and width of the machine.

Figure 16: Product portfolio of ANDRITZ Tissue & Drying

Source: [http://www.ANDRITZ.com/no-index/pf-detail?productid=11081]


- - 35 - -

5 ANALYSIS OF THE CURRENT SITUATION

To be able to describe the actual situation from the project manager point of view, we will

need to touch on two main topics/challenges that arise in the daily business of a project

manager at ANDRITZ’s Tissue & Drying department:

Communication bottlenecks

Lack of a unified data management system

From the way in which the communication is managed internally, to the existing data

management systems of various departments, a solution is needed to unify the various

approaches of each department and summarize them in a project-oriented communication and

data management solution.

It is planned to use one specific type of IT tool for this approach:

MS Windows SharePoint

COMMUNICATION 5.1

Naturally, the oldest and most basic way to communicate is verbal conversation. It is the most

direct way to communicate and exchange information in detail, with highest speed. It is very

useful for discussing and resolving challenges/issues and sharing thoughts.

Useful as it is, verbal conversation also has some major disadvantages, some of which are

listed here:

No record

In oral communication, messages are difficult to record. So it is impossible to preserve the

message for the future.

Distortion of the words

If a word is distorted in verbal communication, the main goals of the discussion may fail.

Distributing information to a wide range of people

If we want to reach the entire project team in a verbal conversation, we need to organize

meetings, which are costly (example: number of people * time spent * hourly rate).


- - 36 - -

No legal validity

There is no legal validity in a verbal message. As the verbal messages are not taped and kept

as records, the message can easily be denied if the situation turns against the speaker.

Limited use

The scope of use of verbal communication is limited. It is not suitable for lengthy messages. It

should be used for short messages.

Less important

In oral communication, meaningless speech can misdirect the main intentions of the

communication. But when the information is issued in writing, we take it seriously.

Creates misunderstandings

The speaker often conveys a message without having organized it properly beforehand. So it

is possible that he may not be able to communicate properly with the recipient.

To avoid these disadvantages, internal communication on a daily basis is mostly handled

using two different basic tools for written communication:

5.1.1 Microsoft Outlook

As a powerful e-mail client service, it is an integral part of every company/business witnessed

until now. As the main communication platform for enterprises, it remains an irreplaceable

part of everyone’s IT software set.

And because MS Outlook is so popular and easy to use, it creates a mass of

information, which is also the main challenge in the present thesis.

Project managers constantly receive a huge amount of e-mail messages on a daily basis

(>50 e-mails per day). Many of these e-mails are only replies to previous e-mails that have

created confusion and are time-consuming in terms of keeping a conversation record. In the

writing process for this master’s thesis, a way of avoiding this type of confusion was

considered by using:

Central conversation storage (example: forum-based discussions)

A solution may be found by answering the following questions:

How can these huge amounts of information can be stored/retrieved successfully?


- - 37 - -

How can a project manager distribute information between the various

departments involved in a project more effectively and with less effort?

Figure 17: Microsoft Outlook, screenshot of Inbox

Source: [own]

5.1.2 Microsoft Lync

This IT tool is an enterprise “Instant messaging service”, mostly used for internal discussions

with the aim of obtaining information more quickly, but in a less formal output. A very

important property is the option of obtaining some basic information about an employee very

quickly (direct dialing number, job description, availability, etc.). It is also networked to

Microsoft Outlook mentioned above, meaning that these two tools work together at all times.


- - 38 - -

Figure 18: Microsoft Lync, Screenshot of main menu and a Lync conversation

Source: [Own]

DATA MANAGEMENT SYSTEMS (DMS) 5.2

Data management is simply organizing and controlling the information created to design, sell,

manufacture, and maintain a product. And it continues over the entire lifetime of that product.

Starting with the conceptual design, digital engineering information about a product is

generated by marketers, designers, and engineers. This information is an important company

asset, but too often it is simply left on the hard drive of the author, where no one else in the

organization can use it.

Usually, there is little or no control over changes or sharing of the data until the product

is released and the information is entered manually into an enterprise resource planning

system (ERP) or material requirements planning system (MRP), and manufacturing

information is added. Then, any changes in the Engineering department have to be

coordinated with the manufacturing information in the MRP or ERP system.

Here are some of the major parameters in which DMS is important:

1. COSTS

80% of a product's cost is determined by the first 20% of the design work. It is

crucially important to have current information shared within the organization. A good


- - 39 - -

DMS system ensures collaboration with other departments early on to ensure the design is

the as cost-effective as possible.

Engineers spend nearly 2-3 hours every day looking for information. A DMS system

provides a single vault location for all documents, coupled with easy search tools so any

document can be found quickly.

2. PRODUCT QUALITY

How many times does the sales department receive a product design from the engineering

department that does not fulfil the customer’s requirements? Miscommunication is

common and expensive.

The best way to ensure collaboration is to provide everyone involved with easy-to-use

information so that even casual users can picture what the product looks like and how it is

designed.

3. REGULATORY

Manufacturing companies have to operate under the regulatory oversight of governments.

Complying with these regulations can be a major expense if handled manually. The risk

and liability involved if these requirements are not met is even higher. EDM systems

provide a relatively painless way of providing structure, controlling documents, and

creating audit trails that are sufficient to meet regulatory audits.

Most manufacturing companies have ISO-9001 certification, which requires documenting

of the process and control of the documents used.

Many companies selling in Europe must meet additional DIN, ISO or ASME standards

for records management and control of product data.

4. CYCLE TIME

There will be many changes throughout a product's lifetime. Whether driven by customer

satisfaction, product enhancement, or cost reduction, these changes represent a better

bottom line to the manufacturer. The quicker each change can be made, the sooner the

cash flow improvement will become visible.

DMS replaces paper-based processes with electronic processes, so typical cycle times can

be reduced from weeks to days. Better collaboration improves the quality and reliability of

the changes.


- - 40 - -

5.2.1 Data storage chaos – need for a DMS

For the past 13 months, the work practices in ANDRITZ’s Tissue & Drying department have

been analysed, resulting in a huge amount of new knowledge being gained and also some

potential for improvement being detected.

One of the biggest potentials for improvement:

Discrepancies in data storage between different departments.

In times when data sharing is inevitably a crucial part of each successful organization,

independent data searches can save a lot of time, but may also be very frustrating when the

folder hierarchies are not unified throughout all departments. The biggest problems occur

when one or more employees are unavailable for various reasons; leaving data stored where

only they can find it.

This inevitably means temporary loss of the overview of documents stored within the

individual’s/department’s data storage!

POSSIBLE EFFECTS: Loss of time, loss of data, and use of incorrect data!

Some typical folder hierarchies of different departments:

1) Order execution

2) Sales


- - 41 - -

Figure 19: Example of discrepancies in data storage in the Tissue & Drying department

Source: [ANDRITZ Confidential]

There are many more examples to be found in day-to-day work.

One of the goals of this thesis is to unify the folder hierarchy for the Tissue & Drying

department inside an interactive working environment supported with modern IT tools.

6 DESCRIPTION – MS SHAREPOINT 2010

The present thesis investigates what possibilities there are for integrating MS SharePoint 2010

into the work processes of the issue & Drying department of ANDRITZ’s Pulp & Paper

business area.

MS SharePoint is a web application framework and platform developed by Microsoft.

First launched in 2001, SharePoint integrates intranet, content management, and document

management, but recent versions also have broader capabilities.

SharePoint comprises a multipurpose set of Web technologies backed by a common

technical infrastructure. By default, SharePoint has a Microsoft Office-like interface, and it is

closely integrated with the Office suite. The web tools are intended for non-technical users.

SharePoint can provide:


- - 42 - -

Intranet portals,

Document and file management,

Collaboration,

Social networks,

Extranets,

Websites,

Enterprise search,

Business intelligence.

It also has system integration, process integration, and workflow automation capabilities.

According to Microsoft, SharePoint is used by 78% of Fortune 500 companies.

Between 2006 and 2011, Microsoft sold over 36.5 million user licenses. Microsoft has two

versions of SharePoint available at no cost, but it sells premium editions with additional

functionalities and provides a cloud service edition as part of the Office 365 platform.

Main applications of MS SharePoint 2010 6.1

The most common uses of MS SharePoint include:

1) Intranet portals

A SharePoint intranet or intranet portal is a way to centralize access to enterprise information

and applications on a corporate network. It is a tool that helps a company manage its data,

applications, and information more easily. Microsoft claims that this has organizational

benefits such as increased employee commitment, centralizing process management, reducing

new staff on-boarding costs, and providing the means to capture and share tacit knowledge

(e.g. via tools such as wikis/blogs).


- - 43 - -

Figure 20: Example of an enterprise intranet site

Source: [http://www.intranetblog.com/wp-content/uploads/2012/01/Social-Intranet-@-Prescient-Digital-

Media.jpg]

2) Enterprise content and document management

SharePoint is often used to store and track electronic documents or images of paper

documents. It is usually also capable of keeping track of the different versions created by

different users. In addition to being a platform for digital record management systems that

meet government and industry compliance standards, SharePoint also provides the benefit of a

central location for storing and collaborating on documents, which can significantly reduce

emails and duplicated work in an organization.

3) Extranet portal

SharePoint can be used to provide password-protected, web-facing access to people outside an

organization. Organizations often use a functionality like this to integrate third parties into

supply chain or business processes, or to provide a shared collaboration environment.


- - 44 - -

SharePoint provides Alternative Access Mapping, or AAM, which allows the same 'site' to be

accessed via a number of different URLs, where each URL can have its own authentication

technology allowing the same site to be both an intranet on one network and an extranet to

outside users.

4) Internet sites

Using the 'Publishing' features, SharePoint can be used to manage larger public websites.

Requirements of SharePoint 2010 integration – ANDRITZ Pulp & 6.2

Paper business area

For the past few years, ANDRITZ has been putting great effort into developing an IT solution

to simplify communication between project teams throughout all project phases. Such an IT

solution could help improve project execution to produce better financial results, creating

better products, and transferring the “lessons learned” more successfully. To achieve this

target, a few requirements have been set by the Pulp Drying& Paper division’s top

management, as well as by the mechanical and process engineering management.

In order to create a step-by-step approach for the different requirements to be met by this

tool, a list of these requirements was collected from the leading managers of the division:

Michael Pichler, Divisional manager of Pulp Drying & Paper division,

ANDRITZ AG

REQUIREMENTS:

o Maintenance

o Maintenance costs

o Global access

o Data security

o Accessibility in case of failure

Rudolf Dorneger, Director of Process and Mechanical Engineering, Pulp & Paper

business area, ANDRITZ AG

REQUIREMENTS:

o Clear assignment to project numbers

o Only released documents can be sent

o Communication throughout ANDRITZ

o Separate areas for administration and know-how

o How to handle temporary employees

o How to transfer documents and notes efficiently if you visit the customer


- - 45 - -

o Currently, every engineer has access to anything. High maintenance effort for

IT service in terms of awarding different rights.

Solution: Template for standard rights, which is simply copied to another

project.

o Transparency: When various engineers are absent.

o How far can the folder structure be spread globally?

o How can e-mails be stored most efficiently?

o Easy handling.

o Cost estimating

o 3 areas: administration, personnel, projects (working groups)

o Storing documents simultaneously in SAP & ADMS.

o Provide metadata Definition of rules

o Lifecycle management of projects (integration of Comos PD?)

This thesis tries to create an IT Solution that can cover or fulfil most of the requirements

mentioned by the leading managers of the division.

For this purpose, an MS SharePoint Workspace Site (MSWS) was established, where:

Members of the project team will be able to communicate/collaborate with each other

using successful data management systems, communication forums, status updates,

manufacturing progress.

Members of the project team will be able to access all project content

chronologically.

The project manager will be able to track progress chronologically.

All project content is stored centrally in a project library for documentation.

History of MS SharePoint 2010 integration in the ANDRITZ Pulp 6.3

Drying & Paper division

In 2014, the ANDRITZ Pulp Drying & Paper division started transferring its information

platform from an internal intranet site to MS SharePoint 2010. In a step-by-step process, the

SharePoint site operated by the Pulp Drying & Paper division began to take shape. It was

divided according to the different business sectors within the Pulp Drying & Paper division:

Tissue

Paper & Board

Pulp Drying

Service


- - 46 - -

Figure 21: SharePoint 2010 web site of the Pulp Drying & Paper division

Source: [ANDRITZ AG confidential]


- - 47 - -

The teams responsible in each section have been creating an information platform and

feeding it with general information content, such as news, brochures, commercial information,

vision and strategy, products, project status, and press releases

This information can be accessed throughout the ANDRITZ organization worldwide

and is not of a confidential nature.

In order to avoid prolonging this master’s thesis unnecessarily, it will continue by

providing an overview of the Tissue and Drying Group. This overview is divided into:

Vision & Strategy

Products

Contains official presentations, pictures and animations of the different products in

Tissue and Drying.

Orders

List of current orders, the orders are linked to the MSWS specifically created for

each order. (Please refer to the upcoming topics.)

Presentation

Contains official presentations of the Tissue and Drying sections as well presentations

by other suppliers/sub suppliers at various fairs worldwide known as “Tissue World”

events.

Templates

Work document templates – standardization of workflow


- - 48 - -

Figure 22: PULP & PAPER - SharePoint 2010 subpage for Tissue & Drying



- - 49 - -

After receiving an order for the new TAD nonwovens dryer, parallel research began into the

various possibilities offered by MS SharePoint 2010. Most of the research was carried out

with the aid of some expert literature and online searches.

[Literature used: Microsoft SharePoint 2010 für Anwender, Das Handbuch, Microsoft Press,

O’Reilly Verlag GmbH & Co. KG, 2011.]

It was concluded that MS SharePoint 2010 can be used to create a workspace site that could

improve project progress, product quality, and internal communication.

Research has indicated that the most important targets of such an MSWS project are:

- User-friendliness

- Collaboration and execution with the least possible effort

- Worldwide accessibility

- Fast check on documentation library and project status

After that, work began on the design, workflow, and logic behind the MSWS, which will be

presented in the next section.

ANDRITZ AG MS Sharepoint Structure

Cum

ula

tive F

unction

Info

rmational Function

Paper & Drying

Pulp Drying ServiceTissue & Drying

Pulp & Paper Sharepoint

Space

Vision & Strategy

ProductsPresen-tations

TemplateOrders

Project manager: Communication/

DMS with Sharepoint?

NO

MS Sharepoint Project

Workspace

Project Workspace template

Less effort

YES

MS Office & MS Outlook

InformationCommuni-

cationDMS

Worldwide Access

DATA

Figure 23: Overview of the ANDRITZ MS SharePoint Structure

Source: [Own copyright work]


- - 50 - -

7 A DEVELOPMENT CONCEPT FOR PROJECTS

Coming now to the most important goal of the thesis, the reader will hopefully be able to

understand the background of heading a project successfully and the importance of

communication throughout the whole project lifetime. So far, the different aspects of project

management have been explained: From communication channels to organizational chains,

from actual communication solutions to MS SharePoint 2010.

This chapter will focus on creating an MS SharePoint template that can be used for

current projects in the ANDRITZ Tissue & Drying division, created on the basis of a

project/product type handled within the past few months – a TAD nonwovens dryer.

Although there is only a prototype available in the Tissue & Drying group of ANDRITZ’s

Pulp & Paper business area, two separate orders were booked for this product in April 2014:

SPX100

One gas-heated TAD nonwovens dryer for the US market.

DRU-OYSTER

Two steam-heated TAD nonwovens dryers for the Chinese market.

Figure 24: 3D draft of a TAD nonwovens dryer – ANDRITZ Design.



- - 51 - -

These were to be the first two TAD nonwovens dryers; a pure prototype. The drying

technology used was very similar to that used in widely standardized tissue machines, which

ANDRITZ has been producing very successfully in the past few years and for which

references can be found all over the world:

Figure 25: Tissue machines built by ANDRITZ from 2001.


Integrating a completely new product into an organization has proven to be a huge

challenge for a trainee in the project management business, and the early phases of the project

were especially challenging:

Conceptual design of the prototype

Engineering

The first difficulties arose right away in the sales phase and were then transferred to the

design and engineering phases, where the breakdown of individual tasks and responsibilities

for creation of specific documents was very unclear and undefined; such issues are often

encountered when launching a new product.


- - 52 - -

The project manager responsible for the above mentioned projects was given a project team

consisting of various experts and divided into different working groups. These working

groups are as follows:

Product and process management

Person with main responsibility: researched and created the new product for

ANDRITZ. The entire knowledge of the technology and working process behind the

TAD nonwovens dryer must be approved by this department/person.

Mechanical design

The complete design of the dryer comes from this department, meaning the complete

package of drawings, 3D models, static calculations, etc.

Process design and engineering

The working process and principles plus the automation and instrumentation for the

dryer were prepared/established by this department. (PID drawings, functional

analyses, I/O lists, etc.)

Supply chain management

Procurement and external supplies were managed by this department.

Transport and shipping department

Transport, packing, and shipping processes were handled by this department.

Others

There was also some individual input from various experts, such as the CE conformity

expert and static calculations department.

One of the main responsibilities of an order execution manager/project manager is “to get

things moving”, meaning to intervene where communication proves ineffective, where

problems occur that do not want to be taken care of, and so on.

A good definition of a project manager:

“Project management is like pulling all of the pieces of a puzzle together into a working

model and continuously updating and modifying that model to culminate in the best finished

project you can get.”


- - 53 - -

Figure 26: TAD Nonwoven – Organization chart

Source: [ANDRITZ AG Confidential]


- - 54 - -

Creating an MS SharePoint Project Workspace Site (MSWS)

This master’s thesis introduces the project workspace and the concept behind it. It is the result

of month-long testing by the entire project team and has undergone a few revisions, and some

changes have been made as requested by some team members to enhance user friendliness

and ensure that the workspace will be used despite its appearing unspectacular in some cases.

The main target throughout the creation and research/enhancement process will remain

the same: Create a template for the MS SharePoint Workspace Site (MSWS); this will

help other project managers to create another MSWS with little effort and which they can then

adapt/enhance as needed.

Start page 7.1

The start page is the entry point for each member of the project team, from now on referred to

as a USER.

The start page contains general information about the project to give the user accessing the

project MSWS a rough overview. It includes (see figure 30):

1. Overall project information

The PM can enter the most important project data, such as the product name, project

name, and project WBS number, which is used in the ERP/SAP system by ANDRITZ

worldwide.

2. Project milestones

A click here opens a rough time schedule for the project.

3. General project information

The PM can enter additional important details on the project, for example: special

requirements/exceptions, mill site, or delivery date and term.

4. Project administrator

Usually this is the PM, administrator of the MSWS.

5. Images of the product/project

The PM can upload the most recent images of the product/project.


- - 55 - -

6. Menu bar

This most important section of the start page guides the user to all other subpages.

(please refer to Chapter 7.2.

7. Documents uploaded in the past 5 days

A list of the most recent documents uploaded in the past 5 working days is created

automatically by the MSWS.

Items 1 – 5 are standard forms for completion in which the information needed by the PM

can be entered. These forms should not require any additional detailed explanation, but if

further information is needed, please refer to the user manual attached to the present

master’s thesis.

Item 6 provides access to all subpages of the MSWS. A closer look at the menu bar is

provided in the following section.

Item 7 is an automated, self-completing form generated from the document library and

covering documents uploaded by all users.


- - 57 - -

Figure 27: Start page of the MSWS.


1.

2.

..

3.

..

4.

..

5.

..

6.

..

7.

..


- - 58 - -

MENU BAR 7.2

Figure 28: Menu bar of the MSWS provides access to all subpages.


The menu bar is the central access point, with each section leading to a purpose-designed area

for users. It is separated into 2 main sectors:

Collaboration area

Project phase specific area

The menu bar has been changed every few months throughout the creation process of the

MSWS. It is the most essential part of the MSWS and the place where user friendliness

determines whether the MSWS will be widely accepted by the users or forgotten due to too

much complexity and confusion. Two simple rules were followed that are also observed by

professional web page makers:

1) Every page must be less than 3 clicks away from the start page.

2) No double data entries.

Collaboration

area

Project phase

specific area


- - 59 - -

In order to explain the subpages of the MSWS, the 2 main areas of the menu bar will be

explained separately.

7.2.1 Collaboration area

This project area covers the overall project data and is divided into different sections, which

provide access to all project data on the MSWS.

The sections are divided by topic:

1. Document library

Figure 29: Document library – documents sorted into different work groups


The document library is one of the most important sections in terms of central document

storage and strengthening collaboration by different work groups, especially in making

documents accessible to all members of the project team.

Documents are categorized and stored in different work groups: engineering, design, order

execution, and so on. A structure of this kind provides the user with a good overview of the

documents; however, the list can also be customized in various ways (users can sort the

documents according to revision status, creation date, user name, etc.)


- - 60 - -

2. External Contacts

Figure 30: External contacts listed alphabetically.


This section caters to the need for a centrally stored “telephone book” or rather for

external contact information on all external experts working on the project. Users can

enter information on customer personnel or also sub-suppliers’ personnel, and there

may also be external experts working on the project.

Although the main responsibility of communicating with the customer remains with

the PM, on many occasions there is a need for direct contact between project team

members and customer experts in order to collaborate successfully on a project.

Users can enter the following data:

Last name

First name

Company

e-mail address

Business phone

Mobile phone

Job description

3. Milestones

Figure 31: A rough timetable of project milestones.



- - 61 - -

The Milestones section can be used to plan the time schedule of the project roughly,

but it has many limitations. Thus, it is advised to use software packages designed

specifically for time scheduling.

For example:

Only the project milestone dates have been entered to give the user a rough overview

of the dates for completion of documentation packages, delivery, site erection work,

and so on.

N.B.: This view can also be accessed directly on the start page by clicking on “Project

milestones”.

Microsoft promises full synchronization of MS Project 2013 and MS SharePoint 2013

when available.

4. Tasks

Figure 32: A list of project milestones.


This shows a detailed overview of the tasks in the Milestones section, summarized in a list.

The “Tasks” and “Milestones” sections are linked and thus updated every time one of the two

is changed.

5. My Documents

Figure 33: List of documents uploaded by the user.



- - 62 - -

This section is part of the documents library, only filtering content created/uploaded/changed

on the specific user’s MSWS and showing only this content. It provides a quick overview of

content with the user’s participation and also an overview of tasks assigned to the user, but

not yet completed.

6. The Team - Organigram

Figure 34: Organizational structure of the team/work groups.


After one and a half years of gathering experience in managing capital projects, it

became evident that, in most projects, even the project team members do not all know one

another. In order to communicate successfully with each other, members can now access and

view the Project Organigram directly from the project MSWS. For this application, a “Web

Part” called MS Visio repository from the standard Web Part library of MS SharePoint was

used.

Restriction: Only usable file format is .vdw, which can only be created with the MS Visio

Professional 2010 software package.

A useful trick is to save an MS Visio file as a .jpg and use a picture instead (see example

above.)


- - 63 - -

7.2.2 Project phase specific area

The project phase area is divided into different phases of a project in a chronological listing

from project start to project finish.

Figure 35: Menu bar – Project phase area


Different departments mainly cover different phases, which mean it could also be used as a

“department section” for the department in which a team member is working.

Example: A design engineer will mostly access the “Engineering & design” section.

The sections are:

- Sales

- Order Execution

- Engineering & Design

- Purchasing

- Manufacturing / Control of Supplies

- Dispatch & Shipping

- Site Installation

- Commissioning & Start-Up

The sections and the chronological listing used were taken from “ANDRITZ process

harmonization”, which standardizes the sections working on projects globally.

There is no need for a detailed explanation of each section, as mentioned before in the

“Information area”, because each section has the same structure and originates from the

“Document library”. The one difference between the sections is a unique filter, which filters

data content for different departments.


- - 64 - -

Example: A design engineer will usually access the Engineering & Design section. When

entering the section, only data classified as “Design” or “Engineering” will be visible.

With this small but powerful trick, data content can be focused and filtered to suit the needs of

the project members.

Figure 36: Engineering & Design section. Filtered view for easier data handling.


Although most of the section contains very similar filtered views, some exceptions are also

used, again to facilitate handling on the MSWS.

The exceptions are:

1. SALES Project Risks

The “Project Risks” section reveals a simple, widely used template for evaluation of

project risks. Every project risk contains a numeric evaluation for: Priority, Probability,

and Impact.

𝑃𝑟𝑖𝑜𝑟𝑖𝑡𝑦 ∗ 𝑃𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑖𝑡𝑦 ∗ 𝐼𝑚𝑝𝑎𝑐𝑡 = 𝑅𝑖𝑠𝑘 𝑙𝑒𝑣𝑒𝑙

The project risks are then listed from highest to lowest risk level.

This method should be used in the sales phase, and the risks evaluated help the PM to

identify possible future risks on the project.

Figure 37: Project risks.



- - 65 - -

2. Engineering & Design Project issues

Figure 38: List of project issues.


The project issues list is a very simple solution for creating Failure/Issue lists for

completed projects. The previous method of searching the Outlook inbox in order to

create such issue lists was very time-consuming for the PM because the inbox contained

thousands of e-mails referring to the project.

3. Engineering & Design Team discussions

Figure 39: Example of a team discussion.


Team discussions are a “forum-based” section. Usual e-mail communication is replaced

by this method of communicating.

The team discussions are created automatically from the project issues section, giving us

a list of issues created and discussed throughout the project.

Advantages:

- Issues are discussed, giving all team members the opportunity to participate.

- Centrally stored lists of issues, also in chronological order.

- Chronologically arranged discussions to investigate the issue easily from beginning to

end

- A search for the solutions discussed can be conducted easily for future projects.


- - 66 - -

- Less burden on the MS Outlook Inbox

4. Order Execution Project Start – Required documents

Figure 40: Documents needed for a successful project start


The section is only a help to the PM in determining whether he has collected and received

all the relevant documents for the project start: down-payment, signed contract, technical

specification, overall time schedule/delivery date.

The PM faces a high risk of failure if the project is started without these documents.

5. Manufacturing

Figure 41: Photo library of manufacturing progress.


The manufacturing section differs from the other sections in that it contains a photograph

rather than a documents library to report the manufacturing status to the project team.


- - 67 - -

This description of the MSWS and its specialized solutions for project managers should

provide an initial impression of how the MSWS should be used for successful project

communication.

The different solutions and sections of the MSWS have been saved in an MS SharePoint

template, which can be used to create an MSWS with very little effort; of course, the MSWS

can also be adapted to include special needs and requirements.


- - 68 - -

8 ANALYSIS OF RESULTS

This chapter will focus on the results and an analysis of this innovative approach to project

management.

However, one important aspect for a complete analysis of the results will be missing –

management of a project phase with the help of MSWS and a comparison of communication

and project management between classic PM approaches and the innovative approach

described in this master’s thesis. The summary contained in the next chapter speculates on the

expectations of this approach and where this solution could lead in the future for ANDRITZ.

First of all, this chapter reviews how many of the Pulp & Paper management’s

requirements were met with the MSWS project management.

Figure 42: Management vs. engineering requirements

Source: [own]


- - 69 - -

Chapter 6.2 described the various management and engineering requirements specified

by ANDRITZ’s Pulp & Paper management and the engineering department. Figure 42

illustrates the basic principle of requirements set by hierarchic weight. On the upper level, we

have the most important requirements set by the business area’s general management; the

total number of requirements is low. On the lower level, we have engineering requirements,

which are more detailed and cover the special needs of the department; the total number of

requirements is higher.

Management requirements in communication and DMS solutions 8.1

The most important requirements are set by the ANDRITZ Pulp & Paper management. Let’s

see whether the requirements are met and the respective issues resolved:

8.1.1 Maintenance and maintenance costs

In terms of maintenance, ANDRITZ has one person responsible in Graz, Austria, who is in

charge of maintenance for ANDRITZ’s global SharePoint services.

Looking at this in a different way, we can measure maintenance costs by expressing the

effort needed for maintenance numerically in working hours.

1 person is responsible globally for MS SharePoint at ANDRITZ.

1 man-year = 1650 working hrs * 75 €/ hr (ANDRITZ standard hourly rate) = 123,750 €

This figure reflects the ANDRITZ global maintenance cost. According to the 2014 business

review, 30% of all ANDRITZ employees worked in Pulp & Paper in 2014.

So if we were to allocate the appropriate share of these costs to ANDRITZ Pulp & Paper (also

globally), the result would be:

123,750 € * 30% = 37,125.00 €

If we allocate the appropriate costs to the Graz office only, the figure is even lower.

Specific employees have also been nominated for data maintenance in MS SharePoint:

4 employees * 1 work hrs/month * 12 months = 48 working hrs * 75 €/hr = 3,600.00 €

Annual IT costs + annual data maintenance costs = 37,125 € + 3,600 € = 40,725.00 €


- - 70 - -

8.1.2 Global access

Global access is available if certain prerequisites are met:

- Internet access

- A computer with ANDRITZ connection protocols installed – usually every working

computer provided by ANDRITZ.

- Authorized user profile, at least with reading rights. (more in the next section – data

security)

8.1.3 Data security

Data security means protecting data, such as a database, against destructive forces and

against the unwanted actions of unauthorized users.

Two different means of ensuring data security in the MSWS were examined:

- User groups with defined user rights

These are the different kinds of user rights:

Figure 43: User rights


User rights are managed by the site administrators and are an essential part of ensuring data

security and stable MSWS operations.

In the present case, different user rights are given to different user groups, mostly using

the “contribute” and “read” rights, rarely the “full control” rights. Administrators can adapt

user groups easily if needed.

- System backups

The hardware solution is the system backup, which is managed by ANDRITZ’s IT

Service. The SharePoint sites are saved on servers on a 24h basis. If required, a system restore

can be requested and executed, restoring the status of the previous day. The system backups

will be saved for three months, providing an almost absolute guarantee that potentially lost

data can be restored.


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8.1.4 Accessibility at failure

In the event of failure, MS SharePoint uses its own mechanisms to restore operating status in

the shortest possible time. One of these mechanisms – Windows Powershell – is typically

used on the server to reconfigure the MSWS.

MS SharePoint has another interesting feature – MS SharePoint Workspace.

MS SharePoint Workspace is a discontinued desktop application designed for document

collaboration in teams with members who are regularly offline or who do not share the same

network security clearance and is used ideally to access important documents while traveling

on business or visiting customers.

The application runs on MS Windows 7 in the background and can be accessed through

the desktop taskbar. Automatic synchronizing with MS SharePoint is available as an option,

and either certain documents or only document libraries can be synchronized.

Figure 44: MS SharePoint Workspace located on the desktop taskbar

Source: MS Windows 7

Figure 45: MS SharePoint Workspace synchronizes in the event of failure/offline work

Source: MS Windows 7


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When working offline, members can also save their documents offline. When the

computer is online again, MS SharePoint updates automatically; new versions of documents

replace old versions, and new documents are saved additionally.


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Management requirements 8.2

Figure 46: Summary of results achieved for management requirements.

Source: [Own]


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Engineering requirements 8.3


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Figure 47: Summary of results achieved for engineering requirements.

Source: [Own]


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The results show that the solution has fulfilled about 78% of the requirements stated by

ANDRITZ’s Pulp & Paper management and the engineering department.

Figure 48: Analysis of results

Source: [Own]


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EXCLUDED REQUIREMENTS, IMPROVEMENT POTENTIAL 8.4

To complete our results analysis, we will describe the “not accomplished” and “partly

accomplished/still to come” items in order to document potentials for improvements:

NOT ACCOMPLISHED:

These types of requirement were excluded from the master’s thesis because of their

complexity and the limited resources available:

Storage of documents simultaneously in SAP

The complexity of the largest MRP/ERP system in use – the SAP system –was the reason for

excluding this requirement from the master’s thesis. The ANDRITZ SAP (abbreviated to

ASAP) is a highly customized and highly developed system specially for use by ANDRITZ ,

and every work process in the company is connected in some way with ASAP.

PARTLY ACCOMPLISHED/STILL TO COME:

These types of requirement were partly accomplished or have a high improvement potential.

The further improvement process was excluded from this master’s thesis:

Standard template for user rights/groups

The top management must provide a clear definition of different user groups/rights.

Example: ANDRITZ design employees: User group Design

Contract workers in design department: User group Design contract workers.

Contract workers may have less user rights than ANDRITZ employees (example: read-only

rights).

Handling of highly confidential documents

Highly confidential documents (cost estimation, special agreements, sales documents) should

be treated separately. There is already a “Sales” documents library in MSWS. IT Service

could develop more complex safety protocols to ensure data security for confidential

document libraries.

Ue of metadata

Correct and user-friendly metadata criteria need to be evaluated after practical testing of

MSWS on a future project.


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9 SUMMARY

When selecting a suitable topic for this master’s thesis, we were very confident and also

enthusiastic about integration of MS SharePoint into ANDRITZ’s Pulp & Paper business area

and the advantages this would bring for employees and the work processes. However, we

were aware of the limitations inherent in such a topic.

The main limitation was finding a suitable project to support with the MS SharePoint

solution presented.

As it proved impossible to find a suitable topic, the discussion and summary chapters

have evolved to become the essential part of this master’s thesis. These chapters try to explain

various thoughts about MS SharePoint generally and also its integration into everyday

working life in project-oriented organizations.

ANDRITZ is a global, corporate organization and has around 25,000 employees

worldwide, working at about 250 different locations all over the world. This large number of

employees generates new ideas every day and tries to implement them in the companies’

working processes. However, not every new idea is good, and there have to be some

organizational mechanisms to evaluate these ideas, decide whether to pursue them, and then

continue to support their development. We call these work process standards, which are the

same for ANDRITZ worldwide.

The MSWS was created in order to find a solution tailored to user needs, with the best

possible user-friendliness, but at the same time adhering to the ANDRITZ work process

standards. The result is an MSWS that can be used globally to manage projects.

An MSWS template was created that allows the project manager to create a new

SharePoint workspace for his project team easily and with little effort. As this saves the PM a

great deal of time and work, it also results in additional cost savings.

In addition, ANDRITZ now has a standardized/tailored form of MSWS for project use.

Any confusion that may be created by different workspace designs is avoided.

Research on MS SharePoint also showed some shortcomings in terms of

synchronization with the Microsoft Office software, which sometimes proved very difficult,

in particular synchronization with MS Project and MS Visio. Synchronization is only possible

with the correct version of the software, mainly the “Professional” edition.


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The conceptual phase of this master’s thesis was aimed at researching the possibilities

of MS SharePoint. Using the research work information, a SharePoint workspace design was

developed and tailored to user needs; then the workspace design was used as a general

template for further use.

However, one of the main targets was not achieved; the template was not used in

practical terms for an actual order as none of the orders available in the template’s early phase

were suitable. Thus, an important step in further development of the template to meet the

requirements of user friendliness and practical implementation is lacking.

With this master’s thesis, ANDRITZ has a working MSWS template, but if this MSWS

is to be used, further development work must be carried out during a pilot order executed

using the template.

After the possibilities of MSWS were researched and tested, an important restriction

was identified when the mass of information escalated to a multi-divisional level.

Management of multi-divisional projects is not recommended with MSWS.

Summarizing the entire research work, the conceptual design of the MSWS, the

template developed for ANDRITZ’s Pulp & Paper business area, and the first practical tests,

we can conclude that MSWS is recommended for use in smaller projects with teams of up to

five members in the order execution phase. In ANDRITZ’s Pulp & Paper business area, such

projects are mostly carried out in the Service department, where the scope of the projects is

much smaller than in the Capital equipment department.

Definition of difference between Capital orders and Service orders, given by ANDRITZ AG executive

board, dated August 24, 2006:

Service projects are all projects without technological guarantees.

Example:

Customer orders replacement of a competitor’s main component in the tissue machine from

ANDRITZ AG. ANDRITZ delivers a replacement component without any improvement on

technological guarantees, only mechanical warranty is refreshed.

Future targets should be linked to ANDRITZ Pulp & Paper’s service projects executed

using MSWS, where further development of the MSWS template would also be possible.


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10 CONCLUSION

Hypotheses of the thesis:

H1: A larger number of people involved in the interactions means a drop in the quality of

information transfer.

Explanation: With large amounts of data and information, there can be confusion in the

project team, which is reflected mainly in prolonged periods in which information is

exchanged and even in different versions of the same information. All this may reduce the

quality of the target product.

The quality of information is not linked to the number of employees working on a project, but

directly to compliance with the rules in terms of a clear process definition.

Definition of rules was achieved by creating the template (please refer to Chapter 7)

Result:

Disproved.

H2: Modern IT communication tools offer a solution to congested communication channels.

Explanation: Currently, conventional methods are used for distribution of information (Data

Management System). There are modern it communication tools that remedy this problem.

Please refer to Chapters 5 and 7.

Result:

Proved.

H3: Better channels of communication and interaction of those involved can lower the cost of

projects.

Explanation: Fast and efficient circulation of information are reflected in faster problem-

solving and a more direct approach to problems. Every working hour less means lower

project costs.

The hypothesis is neither proved nor disproved. However, it is partly proved by the reduction

in IT maintenance costs (see figure 46). The project costs could not be evaluated in this

master’s thesis because there was no actual order to which it could be applied, thus these costs

are excluded from this master’s thesis.

Result:

Partly proved.


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H4: The active use of IT tools improves the working environment for employees working on

projects.

Explanation: A system that would allow those involved to review the project more easily, give

them access to quality information, and also enable them to download goals and objectives

automatically would ease the burden on the project team as well as on the project managers.

By using a standardized template and central data storage, the working environment can be

improved (please refer to Chapter 7).

Result:

Proved.


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11 REFERENCES

[1] Palcic, Iztok. 2012. Planiranje in vodenje projetkov, UM, Fakulteta za strojništvo –

Zbrano gradivo, Maribor.

[2] Hauc, Anton. 2007. Projektni management, GV Zalozba, Ljubljana.

[3] Stare, A. 2011. Projektni management: teorija in praksa, Agencija Poti d. o. o., Ljubljana.

[4] Turner, J. R. 2009. The handbook of project-based management, The McGraw-Hill

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[5] Kerzner, H. 2010. Project management : a systems approach to planning, scheduling, and

controlling, New York : Van Nostrand Reinhold.

[6] Pinto, J. 2007. Project Management: achieving competitive advantage, Pearson Education.

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[10] Lester, A. 2007. Project Management Planning and Control. 5. izd., UK: Elsevier.

[11] Nicholas, J.M., Steyn H. 2008. Project Management, Harlow: Pearson Education.

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Oriented Company. V: The Wiley Guide to Project Organization and Project Management,

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12 ATTACHMENTS

[1] Kocbek, T. May 2015. Microsoft SharePoint User Manual – Creating a KPP project

workspace.pdf, Andritz AG confidential.