Lect 04_Project ion

8/3/2019 Lect 04_Project ion

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Project OrganisationProject OrganisationPratima JadhavPratima Jadhav


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Client Requirement

Project

Objectives

Work Breakdown

(WBS)

Project

Organisation

Project Schedule

Recycle

Risk

ManagementProject Budget

Planning


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Project OrganisationProject Organisation

Project organisation is a formal team engaged inProject organisation is a formal team engaged in

implementation of the project with clearlyimplementation of the project with clearly

defined responsibilities and commensuratedefined responsibilities and commensurate

authority of the individual team membersauthority of the individual team members

Size of organisation depends upon theSize of organisation depends upon the

workload, the specialisation involved and theworkload, the specialisation involved and the

complexity of the projectcomplexity of the project

Distribution of work between the owner andDistribution of work between the owner and

contractors also has influence on the ownerscontractors also has influence on the owners

project team sizeproject team size


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Ten specific skills identified for a ProjectTen specific skills identified for a ProjectManagerManager

Team buildingTeam building

LeadershipLeadership

Conflict resolutionConflict resolution

Technical expertiseTechnical expertise

PlanningPlanning

OrganisingOrganising EntrepreneurshipEntrepreneurship

AdministrationAdministration

Management expertiseManagement expertise

Resource allocationResource allocation

Project ManagerProject Manager


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Project ManagerProject Manager SpecialSpecial

Cases

Cases

Four major problem areas in staffing projectsFour major problem areas in staffing projects

PartPart--time Vs fulltime Vs full--time assignmentstime assignments

A small project (time and cost wise) can be givenA small project (time and cost wise) can be given

as a part time assignment to line personnelas a part time assignment to line personnel

continuing with their regular assignmentscontinuing with their regular assignments

Under conflicting priority situations, project mayUnder conflicting priority situations, project may

suffersuffer

Several projects assigned to one ProjectSeveral projects assigned to one ProjectManagerManager

Acceptable if projects are related or similarAcceptable if projects are related or similar

For projects with different priorities, a project withFor projects with different priorities, a project with

lower priority may sufferlower priority may suffer


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Project ManagerProject Manager SpecialSpecial

CasesCases

Projects assigned to functional managersProjects assigned to functional managers

For a high tech project requiring specialisedFor a high tech project requiring specialisedknowledge to be done by a specificknowledge to be done by a specific

department, the line manager can take ondepartment, the line manager can take onthe role of project managerthe role of project manager

Project may suffer in case of conflictingProject may suffer in case of conflictingpriorities with the existing line workpriorities with the existing line work

Project manager role retained by theProject manager role retained by theGeneral ManagerGeneral Manager

Not a desirable situationNot a desirable situation

Project may suffer for want of requisiteProject may suffer for want of requisite

attention from the busy executiveattention from the busy executive


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Selection of wrong ProjectSelection of wrong Project

ManagerManager -- ProblemsProblems

MaturityMaturity

Maturity in project management comes fromMaturity in project management comes fromexperience in the particular types of projects and notexperience in the particular types of projects and notnecessarily from the age onlynecessarily from the age only

HardHard--nosed Tacticsnosed Tactics

Project manager must adapt a leadership style to theProject manager must adapt a leadership style to theproject employeesproject employees

People should be given sufficient freedom to do thePeople should be given sufficient freedom to do the

job without continuous supervision and directionjob without continuous supervision and direction

AvailabilityAvailability

Project managers should not be switched overProject managers should not be switched oversimply because another individual is availablesimply because another individual is available

unless he has the requisite experienceunless he has the requisite experience


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Technical ExpertiseTechnical Expertise

Project manager is an expert in manProject manager is an expert in man

management technique and his ability to getmanagement technique and his ability to geton with the people rather than for his sheeron with the people rather than for his sheer

technical expertisetechnical expertise

A technical expert as a project manager mayA technical expert as a project manager may

be suitable for a R&D type project needingbe suitable for a R&D type project needing

his expertisehis expertise




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ManagerManager -- ProblemsProblems Consumer OrientationConsumer Orientation

Placing individuals as Project managers simplyPlacing individuals as Project managers simply

on the request of a customer as simplyon the request of a customer as simplycommunicating with the customer does notcommunicating with the customer does not

guarantee project successguarantee project success

In such cases a strong team must necessarilyIn such cases a strong team must necessarily

be provided to assist him in getting the projectbe provided to assist him in getting the projectcompletedcompleted


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New ExposureNew Exposure

There is a risk of project failure if an individualThere is a risk of project failure if an individual

is appointed as a manager to simply gainis appointed as a manager to simply gain

exposure to project managementexposure to project management

Company ExposureCompany Exposure

Mere fact that an individual has worked in aMere fact that an individual has worked in a

variety of divisions does not guarantee him tovariety of divisions does not guarantee him tobe a good project managerbe a good project manager




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Organisational StaffingOrganisational Staffing

ProcessProcess Staffing the project organisation canStaffing the project organisation can

become a long and tedious effort,become a long and tedious effort,

specially in large and complex projectsspecially in large and complex projectsWhat people resources are required?What people resources are required?

Types of individuals with job descriptionsTypes of individuals with job descriptions

must be decided upon , as well as howmust be decided upon , as well as how

many from each category and when willmany from each category and when will

these individuals be required.these individuals be required.


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Organisational Staffing ProcessOrganisational Staffing Process

Where will the people come from?Where will the people come from?

Are these going to be new people, whichAre these going to be new people, which

Project Managers do not prefer, or fromProject Managers do not prefer, or fromwithin the organisation, whom the Linewithin the organisation, whom the Line

Manager are not willing to spare?Manager are not willing to spare?

Staffing can also come from Consultants,Staffing can also come from Consultants,

but only if all available from within arebut only if all available from within arealready lined upalready lined up


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Project OfficeProject Office

Project office is an organisation developed toProject office is an organisation developed to

support the project manager in carrying out hissupport the project manager in carrying out his

dutiesduties

Responsibilities of the project office inc

ludeResponsibi

lities of the project office inc

lude

Acting as a focal point of information for both inActing as a focal point of information for both in--

house and customer reportinghouse and customer reporting

Controlling time, cost, and performance to adhereControlling time, cost, and performance to adhere

to contractualrequirementsto contractua

lrequirements

Ensuring that all work required is documented andEnsuring that all work required is documented and

distributed to all key personneldistributed to all key personnel

Ensuring that all work performed is both authorisedEnsuring that all work performed is both authorised

and funded by contractual documentationand funded by contractual documentation


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Form of organisation depends uponForm of organisation depends upon

Whether the project enterprise is starting itsWhether the project enterprise is starting its

business life with the setting up of the projectbusiness life with the setting up of the project

on handon hand

Each Unit or segment of the project functionsEach Unit or segment of the project functions

as a matrix organisation under the Directoras a matrix organisation under the Director

(construction) / General Manager(construction) / General Manager

(Construction)(Construction)

Whether the project is undertaken by anWhether the project is undertaken by anongoing production unit, as an additionalongoing production unit, as an additional

facility or renovation/ modernisationfacility or renovation/ modernisation


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Geographicallocation of the head office, theGeographicallocation of the head office, the

project site and the principal project officeproject site and the principal project office

Economy and convenience areEconomy and convenience are

considerations hereconsiderations here

If head office and project office are far apartIf head office and project office are far apart

Separate head office and field officeSeparate head office and field office

organisation with a high degree of delegationorganisation with a high degree of delegationof duties, powers and authority to Projectof duties, powers and authority to Project

ManagerManager


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Management philosophy of the projectManagement philosophy of the project

enterpriseenterprise

Management may like to control entire financialManagement may like to control entire financial

authority and adopt a centralised organisationauthority and adopt a centralised organisation

Three forms of project organisationThree forms of project organisation

Functional organisationFunctional organisation

Divisional organisationDivisional organisation Matrix organisationMatrix organisation


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Traditional centralised type of organisationTraditional centralised type of organisationwith line and staff structurewith line and staff structure Heads of various functional departments report toHeads of various functional departments report to

the CEO for their respective specialised functionsthe CEO for their respective specialised functions

in the management of the projectin the management of the project Project manager supported by few area projectProject manager supported by few area project

engineersengineers

Clerical staff functions as coordinator and reportClerical staff functions as coordinator and reportdaily to CEOdaily to CEO

May have several Project Managers for differentMay have several Project Managers for differentwork segmentswork segments

Suitable for pure project enterprises with the CEOSuitable for pure project enterprises with the CEOfully attending to the project only without otherfully attending to the project only without other

more important businessmore important business


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CEO

PM PROJECTCONTROL

FINANCE &

ACCOUNTS

ADMINIS -

TRATION

SECRETRAIL

& LEGAL

PERSONNEL

CONTRACTS

ADMINISTR.

PROCUREM

ENT

CONSTRU-

CTIONENGINEERING

FUNCTIONAL PROJECT ORGANISATION


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AdvantagesAdvantages Easier budgeting and cost controlEasier budgeting and cost control

Better technical controlBetter technical control

Provides flexibility in the use of manpowerProvides flexibility in the use of manpower

Communication channels are vertical and wellCommunication channels are vertical and wellestablishedestablished

DisadvantagesDisadvantages No one individual is directly responsible for the totalNo one individual is directly responsible for the total

projectproject CoCo--ordination becomes complex and more timeordination becomes complex and more time

required to seek approvals/decisionsrequired to seek approvals/decisions

Decisions normally favour the strongest functionalDecisions normally favour the strongest functionalgroupsgroups

Customer focus is lackingCustomer focus is lacking



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Divisional organisationDivisional organisation

Divisional organisationDivisional organisation Involves decentralised project managementInvolves decentralised project management

divisions, each headed by a PM and divided intodivisions, each headed by a PM and divided intoseveral sections manned by qualified andseveral sections manned by qualified andexperienced staff of the appropriate levelsexperienced staff of the appropriate levels

PM concentrates totally on his project without anyPM concentrates totally on his project without anyresponsibility about the general management of theresponsibility about the general management of theenterpriseenterprise

Project schedules and resources mostly entrustedProject schedules and resources mostly entrusted

to the PM reporting to the topto the PM reporting to the top managementmanagementMay involve improper and not full utilisation ofMay involve improper and not full utilisation of

resources as it creates watertight compartmentsresources as it creates watertight compartments

Suitable for an enterprise with only one projectSuitable for an enterprise with only one projectwhere the idle resources have no profitable usewhere the idle resources have no profitable use

elsewhereelsewhere


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HEAD OFFIC

E

PROJECT

MANAGER PR A

PROJECT

MANAGER PR B

PROJECT

MANAGER PRC

PROJECT

CONTROL DEPT

PROJECT ENGG

DEPARTMENT

PROC & MATLS

MNGMT DEPT

CONSTRUCTION

DEPARTMENT

PROJECTADMIN,

FINANCE,HR DEPT

DIVISIONAL PROJECT ORGANISATION


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AdvantagesAdvantages Provides complete line authority over the projectProvides complete line authority over the project

Project team works directly for the project managerProject team works directly for the project manager

Strong communication channelsStrong communication channels

Provides flexibi

lity in determining time, cost tradeProvides f

lexibi

lity in determining time, cost trade--offsoffs

Faster decisionsFaster decisions

DisadvantagesDisadvantages More expensive because of duplicationMore expensive because of duplication

Control of functional specialists require topControl of functional specialists require top--levellevelcoordinationcoordination

Lack of opportunities for technical interchangeLack of opportunities for technical interchangebetween projectsbetween projects

Lack of career opportunities for project personnelLack of career opportunities for project personnel

Divisional organisationDivisional organisation


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Matrix organisationMatrix organisation

Matrix Organisation and Project TeamMatrix Organisation and Project Team

Two distinct categories of personnelTwo distinct categories of personnelAt lowerlevel, recruited solely for the projectAt lowerlevel, recruited solely for the project

Face termination of employment at the end of the projectFace termination of employment at the end of the project

Deputed by other functional departments to serveDeputed by other functional departments to servethe projectthe project On completion of project they go back to their functionalOn completion of project they go back to their functional

parent departmentparent department

In the project, they report administratively to the PM butIn the project, they report administratively to the PM but

professionally continue to report to their functional headsprofessionally continue to report to their functional heads On the project, they represent the interest of their parentOn the project, they represent the interest of their parent

departmentdepartment

Most useful form in a multiMost useful form in a multi--plant organisation andplant organisation andalso a project with severallarge work packagesalso a project with severallarge work packages


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Functional Dept Project Mngmt Team

Secretarial dept

GM Engineering

GM Materials

GM Finance

GM HR & Admin

GM Construction

GM Projects

PM Project A PM Project B

Mgr Plng

Mgr Est.& Cost.

Mgr Prj Engg

Mgr QA

MgrCommissiong

Mgr Matls

Mgr Maintce

Mgr Fin & A/C

Mgr HR & Admn

MgrConst. ( for

diff disciplines)H.O.Const Coordn

Mgr Plng

Mgr Est.& Cost.

Mgr Prj Engg

Mgr QA

MgrCommissiong

Mgr Matls

Mgr Maintce

Mgr Fin & A/C

Mgr HR & Admn

MgrConst. ( for

diff disciplines)

CEOMATRIX PROJECT ORGN


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Matrix organisationMatrix organisationAdvantagesAdvantages

Flexibility in the deployment of resourcesFlexibility in the deployment of resources

Effectiveness in the usage of specialist skillsEffectiveness in the usage of specialist skills

Better use of experience gained in the organisationBetter use of experience gained in the organisationfor its own benefitfor its own benefit

Saving in the project cost because of minimum idlingSaving in the project cost because of minimum idling

DisadvantagesDisadvantages Multidimensional information flow and work flowMultidimensional information flow and work flow

Dual reportingDual reporting

Potential for continuous conflict and conflictPotential for continuous conflict and conflictresolutionresolution

Difficulty in monitoring and controlDifficulty in monitoring and control

Functional managers may be biased according toFunctional managers may be biased according to

their own prioritiestheir own priorities


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Planning ManagerPlanning Manager

An important key person next to the ProjectAn important key person next to the Project

ManagerManager

Should possess knowledge of Planning,Should possess knowledge of Planning,

scheduling, controlling techniques, graphicalscheduling, controlling techniques, graphical

presentations and information technologypresentations and information technology

A qualified engineer and/or projectA qualified engineer and/or project--orientedoriented

economist with personal attributes alike theeconomist with personal attributes alike theProject ManagerProject Manager

Preferable to have him associated with thePreferable to have him associated with the

project from the beginning to the endproject from the beginning to the end


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Task forceTask force

SpecialTask Force set up by theSpecialTask Force set up by the

management for executing or expeditingmanagement for executing or expediting

specific tasksspecific tasks

Procedural guidelines and sufficientProcedural guidelines and sufficient

authority for decision making given to theauthority for decision making given to the

task forcetask force

Represents members from variousRepresents members from variousfunctional departmentsfunctional departments

Task Force dismantled on completion ofTask Force dismantled on completion of

tasktask


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Team MembersTeam Members

Individuals of excellent personal qualitiesIndividuals of excellent personal qualities

Should possessShould possess

Positive attitudePositive attitude Good conceptual abilitiesGood conceptual abilities

Good communication skill and languageGood communication skill and language

abilityability

Dependable characterDependable character

Knowledge of enterprise and its philosophyKnowledge of enterprise and its philosophy

Good knowledge of workGood knowledge of work


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What type of project organisationalstructure wi

llWhat type of project organisationa

lstructure wi

llbe best?be best?

How specialised is the labour?How specialised is the labour?

What should the span of management be?What should the span of management be?

How much planning is required?How much planning is required?Are authority relationships delegated andAre authority relationships delegated and

understood?understood?

Are there established performance standards?Are there established performance standards?

What is the rate of change of the job required?What is the rate of change of the job required?Should we have a horizontal or vertical organisation?Should we have a horizontal or vertical organisation?

Do we need a unityDo we need a unity--ofof--command position?command position?

Mutual trust between the project and lineMutual trust between the project and line

managers is essential during the staffing sessionsmanagers is essential during the staffing sessions



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Mutual trust between the project managersMutual trust between the project managersthemselves is also necessarythemselves is also necessary

Project managers must work as a team andProject managers must work as a team and

recognise each others needs, and be willingrecognise each others needs, and be willingto make decisions in the best interest of theto make decisions in the best interest of the

companycompany

Line managers often place new employeesLine managers often place new employees

on projects so that they can be upgradedon projects so that they can be upgraded Project managers often do not like this andProject managers often do not like this and

immediately approach top management forimmediately approach top management for

helphelp



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Source of staffing , whether from within theSource of staffing , whether from within the

existing organisation or from outsideexisting organisation or from outside

sources such a new hires or consultants,sources such a new hires or consultants,

needs to be decidedneeds to be decided

Outside consultants advisable only if internalOutside consultants advisable only if internal

resources are fully engaged already and notresources are fully engaged already and not

available, oravailable, or Required skill is not available within theRequired skill is not available within the

companycompany



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Virtual ProjectVirtual Project

Virtual project, also known as distributedVirtual project, also known as distributedteam, is one where participantsteam, is one where participants

Are geographically separated such thatAre geographically separated such that

They may seldom meet faceThey may seldom meet face--toto--face as a teamface as a team Resulting in difficulties of communicationResulting in difficulties of communication

Associated costs of both faceAssociated costs of both face--toto--face andface and

electronic communication increase dramaticallyelectronic communication increase dramatically

Electronic communication takes on muchElectronic communication takes on muchmore importance in virtual projects as itmore importance in virtual projects as it

makes the development of effectivemakes the development of effective

project teams possibleproject teams possible


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Proper organisational structure is very importantProper organisational structure is very importantfor the successful execution of a projectfor the successful execution of a project

Management of the project depends to a largeManagement of the project depends to a largeextent on the type of team members forming theextent on the type of team members forming the

project teamsproject teams There is no such thing as good or badThere is no such thing as good or bad

organisationorganisation

Organisation is only appropriate orOrganisation is only appropriate or

inappropriate oneinappropriate one Project Manager plays a key role in any projectProject Manager plays a key role in any project

by providing good Leadership and Motivation toby providing good Leadership and Motivation tothe team members to complete the project withinthe team members to complete the project within

the budgeted time and costthe budgeted time and cost


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Thank YouThank You


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ReferencesReferences

Project Management : Harold KerznerProject Management : Harold Kerzner

Project Management & Control : NarendraProject Management & Control : Narendra

SinghSingh Total Project Management : P. K. JoyTotal Project Management : P. K. Joy

Project Management: A ManagerialProject Management: A Managerial

Approach :Approach :Jack R. Meredith & Samuel J. Mantel, Jr.Jack R. Meredith & Samuel J. Mantel, Jr.

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Lect 04_Project ion

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