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Project Management

Project Organizational

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Establishing objectivesDefining projectCreating work breakdownstructureDetermining resourcesForming organization

1995 Corel Corp.

Project Planning

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Often temporary structureUses specialists from entire companyHeaded by project manager

Coordinates activitiesMonitors schedule& costs

Permanentstructure calledmatrix organization

1995Corel Corp.

Project Organization

Acct.

Eng. Eng.Mkt.

Mgr.

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A Sample Project Organization

Sales

President

Finance HumanFactors EngineeringQualityControl Production

TechnicianTestEngineerPropulsionEngineerPhysiologist

ProjectManager

Psychologist StructuralEngineerInspectionTechnician Technician

Project 1

Project 2

ProjectManager

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Project Organization Works Best When

Work can be defined with a specific goaland deadline

The job is unique or somewhat unfamiliarto the existing organizationThe work contains complex interrelatedtasks requiring specialized skillsThe project is temporary but critical to theorganization

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Projects in different organisational andmanagement environments

There will be a project manager in both the customer and supplierorganisation. On large projects there can be project teams in bothorganisations, or a combined team.The appropriate choice of organisation (which is not always made)

will depend on the type of contract, the relationship between thecustomer and supplier, and the similarity between their organisationstructures and cultures.The internal project organisation may be a one dimensionalhierarchy, based on technical discipline, or project function, or amatrix of both. The previous factors, plus the ratio of full time to part-time staff on the project determine the appropriate choices.

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TYPES OF ORGANISATIONS

FunctionalMatrixPure projectMany variations

Reading: Burke Ch 20 & Lock Ch 3

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MD

S&M ENGING PRODN

Research

Publicity

Sales

DesignEngineering

ElectricalEngineering

MechanicalEngineering

ProductionPlanning

IndustrialEngineering

Purchasing

FINANCE

FinancialPlanning

Budgeting

Accounting

Functional Organisation (1)

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Functional Organisation (2)

Advantages Disadvantages

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

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 priorityover project work

Weak motivation and commitment to

project

(Source: Burke Ch 20)

Many disadvantages which demands a different approach

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Project Z

MD

PROJ. MGT ENGING PRODN

Project W

FINANCE

Matrix Organisation (1)

Project X

Project Y

Responsibility for who does thework and the technology used

Responsibility for:

- Specification- Time- Cost

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Mkt Oper Eng Fin

Project 1

Project 2

Project 3

Project 4

Matrix Organization

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Matrix Organisation (2)Advantages Disadvantages

Project has clear single point ofresponsibility

Project can draw on entire resources ofcompany

Effective resource utilisation by sharing

Seconded staff returned to function at endof project not traumaticThey can achieve a high degree of

flexibility Problem solving capability much greater

whole company

Needs of project and function addressedsimultaneous by negotiation

Structure is complex and more difficultto understand

Complex because additional number ofmanagers involved

Dual responsibility and authority leads

to confusion, divided loyalty etc. Two boss situation conflict is a recipefor conflict between manageroverallocation of resources

Project integration between depts ismore involved and complex than

a functional organisation(Source: Burke Ch 20)

Many other advantages which outweigh disadvantages

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Types of Organizations for DevelopmentProjects

PMPM

FM FM FMFMFM

FMFMFMFMFM

FM

(C) Heavyweight Project Manager

(A) Functional Organization (B) Lightweight Project Manager

(D) Tiger Team Organization

LiaisonPeople

WorkingEngineers Project

Manager

(PM)

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Project Organization

end product / goal of the projectpure project organizationdedicated staffconnection via progress reports, organizationpolicies, procedures, and fundingdecentralization

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An Example of Project Org.

General Manager

Project AManager Project BManager Project CManager

Design Manuf. Design Manuf. Design Manuf.

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Advantages of Project Organization (1)Simplicity of structureUnity of project purposeLocalization of project failuresCondensed and focused communication linesFull authority in the project managerQuicker decisions due to centralized authority

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Advantages of Project Organization (2)Skill development due to project specializationImproved motivation, commitment, andconcentrationFlexibility in determining time, cost,performance trade-offs

Accountability of project team to one bossIndividual acquisition and maintenance ofexpertise

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Disadvantages of Project Org.

Narrow view of project personnelMutually exclusive allocation of resourcesDuplication of efforts on different but similarprojectsMonopoly of organizational resourcesConcern about life after the projectReduced skill diversification

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The Role ofthe Project Manager

Project Planand Schedule

Revisions and

Updates

ProjectManager

ProjectTeam

TopManagementResources

PerformanceReports

Informationregarding times,

costs, problems,delays Feedback Loop

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Stage 1 Project Initiation (1)

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

In the customer organisation it will probably have the scopeto prepare project objectives and strategy, produce aclients brief In the supplier organisation it will be triggered by an invitationto tenderHowever in both organisations, initiation of a project alsoinvolves appointing a project manager, ensuring that

appropriate resources are authorised and that procedures fordoing and controlling the work are established