Project Management

Project Organizational

Project Planning

Establishing objectives Defining project Creating work breakdown structure Determining resources Forming organization

1995 Corel Corp.

Project Organization

Often temporary structure Uses specialists from entire company Headed by project manager

Coordinates activities Monitors schedule & costs

Eng. Acct.

Eng. Mkt.

Permanent structure called matrix organization

Mgr.
1995 Corel Corp.

A Sample Project Organization

President Human Factors Quality Control Sales Finance Engineering Production

Project 1

Project Manager Physiologist Project Manager Psychologist Propulsion Engineer Test Engineer Technician

Project 2

Structural Engineer

Inspection Technician

Technician

Project Organization Works Best When

Work can be defined with a specific goal and deadline The job is unique or somewhat unfamiliar to the existing organization The work contains complex interrelated tasks requiring specialized skills The project is temporary but critical to the organization

Projects in different organisational and management environments

There will be a project manager in both the customer and supplier organisation. On large projects there can be project teams in both organisations, or a combined team. The appropriate choice of organisation (which is not always made) will depend on the type of contract, the relationship between the customer and supplier, and the similarity between their organisation structures and cultures. The internal project organisation may be a one dimensional hierarchy, based on technical discipline, or project function, or a matrix of both. The previous factors, plus the ratio of full time to parttime staff on the project determine the appropriate choices.

TYPES OF ORGANISATIONS

Functional Matrix Pure project Many variations

Reading: Burke Ch 20 & Lock Ch 3

Functional Organisation (1)

MD

S&M

ENGING

PRODN

FINANCE

Research

Design Engineering
Electrical Engineering Mechanical Engineering

Production Planning
Industrial Engineering

Financial Planning

Publicity

Budgeting

Sales

Purchasing

Accounting

Functional Organisation (2)

Advantages
They are simple They can achieve a high degree of flexibility Home for technical expertise Normal career path for advancement and promotion Short lines of communication within department Consistent work routine in department Clear lines of responsibility & authority for work in department

Disadvantages
No single point of responsibility as project moves through departments No department responsible for overall project success Departments may take myopic view of work and not holistic view of the project No formal lines of communication between departments on m-d projects Departmental work may take priority over project work Weak motivation and commitment to project (Source: Burke Ch 20)

Many disadvantages which demands a different approach

Matrix Organisation (1)

MD

PROJ. MGT

ENGING

PRODN

FINANCE

Project W

Responsibility for: - Specification - Time - Cost

Project X

Project Y

Project Z

Responsibility for who does the work and the technology used

Matrix Organization
Mkt Oper Eng Fin

Project 1 Project 2 Project 3 Project 4

Matrix Organisation (2)

Advantages
Project has clear single point of responsibility Project can draw on entire resources of company Effective resource utilisation by sharing Seconded staff returned to function at end of project not traumatic They can achieve a high degree of flexibility Problem solving capability much greater whole company Needs of project and function addressed simultaneous by negotiation

Disadvantages
Structure is complex and more difficult to understand Complex because additional number of managers involved Dual responsibility and authority leads to confusion, divided loyalty etc. Two boss situation conflict is a recipe for conflict between managerover allocation of resources Project integration between depts is more involved and complex than a functional organisation (Source: Burke Ch 20)

Many other advantages which outweigh disadvantages

Types of Organizations for Development Projects

(A) Functional Organization (B) Lightweight Project Manager

FM
Working Engineers

FM
Project Manager (PM)

FM

FM

FM
Liaison People

(C) Heavyweight Project Manager

(D) Tiger Team Organization

FM

FM

FM

FM

FM

FM

PM

PM

Project Organization

end product / goal of the project pure project organization dedicated staff connection via progress reports, organization policies, procedures, and funding decentralization

An Example of Project Org.

General Manager

Project A Manager

Project B Manager

Project C Manager

Design

Manuf.

Design

Manuf.

Design

Manuf.

Advantages of Project Organization (1)

Simplicity of structure Unity of project purpose Localization of project failures Condensed and focused communication lines Full authority in the project manager Quicker decisions due to centralized authority

Advantages of Project Organization (2)

Skill development due to project specialization Improved motivation, commitment, and concentration Flexibility in determining time, cost, performance trade-offs Accountability of project team to one boss Individual acquisition and maintenance of expertise

Disadvantages of Project Org.

Narrow view of project personnel Mutually exclusive allocation of resources Duplication of efforts on different but similar projects Monopoly of organizational resources Concern about life after the project Reduced skill diversification

The Role of the Project Manager

Project Plan and Schedule Revisions and Updates

Project Manager
Information regarding times, costs, problems, delays Resources Performance Reports

Project Team

Feedback Loop Top Management

Stage 1 Project Initiation (1)

Project initiation is likely to be very different in the customer and supplier organisations

In the customer organisation it will probably have the scope to prepare project objectives and strategy, produce a clients brief In the supplier organisation it will be triggered by an invitation to tender However in both organisations, initiation of a project also involves appointing a project manager, ensuring that appropriate resources are authorised and that procedures for doing and controlling the work are established