Sesi 3- Organization
Transcript of Sesi 3- Organization
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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