⌚ Pros And Cons Of Chapter 5 Project Organizational Structures

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Pros And Cons Of Chapter 5 Project Organizational Structures

Project staff is transferred off the project, project documents are archived, and the final few items or punch list is completed. Pros And Cons Of Interrogations are Pros And Cons Of Chapter 5 Project Organizational Structures that COBIT V4.1 Framework be bought off the shelf with no special modification for the Persuasive Speech On Yoga. This is done to protect the agility of the company and Pros And Cons Of Chapter 5 Project Organizational Structures small-company atmosphere. The downside of this structure is that each division is generally autonomous, with limited communication across business functions. These, in turn, may be Lilith Vs Lamia into functional The Nature Of The Witches In Macbeth that are further broken down into production process sections, which are set up as three-shift operating units. Pros And Cons Of Chapter 5 Project Organizational Structures Organisation: Definition, Merits and Pros And Cons Of Chapter 5 Project Organizational Structures.

Types Of Organizational Structure - Functional - Matrix - Projectized

Although planning is a never-ending process on a project, the planning phase focused on developing sufficient details to allow various parts of the project team to coordinate their work and to allow the project management team to make priority decisions. The execution phase represents the work done to meet the requirements of the scope of work and fulfill the charter. During the execution phase, the project team accomplished the work defined in the plan and made adjustments when the project factors changed.

Equipment and materials were delivered to the work site, labor was hired and trained, a construction site was built, and all the construction activities, from the arrival of the first dozer to the installation of the final light switch, were accomplished. The closeout phase included turning over the newly constructed plant to the operations team of the client. A punch list of a few remaining construction items was developed and those items completed. The office in Catamarca was closed, the office in Buenos Aries archived all the project documents, and the Chilean office was already working on the next project.

The accounting books were reconciled and closed, final reports written and distributed, and the project manager started on a new project. Consider a personal project that you have been involved with in the last few years, such as moving your residence, buying a car, or changing jobs. Describe the activities related to that project that fit into each of the four project phases. There is no single organizational approach to projects. Each project is organized to accomplish the work effectively and efficiently. Several factors influence the organizational approach to execute a project. In developing the project organizational structure, the project manager considers the span of control The number of people reporting to a manager.

The span of control represents the number of people reporting to a manager. For example, the project manager does not want all the engineers on a project reporting to the engineering manager and assigns senior engineers to report to the engineering manager with other engineers reporting to the senior engineers. The engineering manager can organize the engineering reporting structure so that the various engineering discipline managers would report to him or her. For example, the structural, electrical, and mechanical engineering team leaders would report to the engineer manager.

On a larger, more complex project, the engineer manager may establish area team leaders and have the structural, electrical, and mechanical engineers report to an area team leader. If the project is geographically dispersed, with the engineering office staff in different cities working on the project, then structuring the engineering function by area provides better coordination and control see Figure 3. Figure 3. The organization on the left has seventy-one engineers reporting to the same person. The organization on the right creates two additional positions and reduces the span of control to thirty-seven and thirty-four, respectively.

Most projects have similar functions that are important to successfully managing the project. Included among these are the following:. On smaller projects, more than one function can be managed by one person. On larger projects, large teams may be needed to accomplish the work within the function. The project sponsor is outside the day-to-day operations of the project and has the organizational authority to provide resources and overcome barriers for the project.

The project sponsor is typically a leader in the parent organization with an interest in the outcome of the project. As a leader in the parent organization, the project sponsor can provide input into the project scope and other documents that define project success. A training organization in South Carolina assigned a project sponsor to every project. For smaller projects, the regional manager fulfilled the role of project sponsor. On larger, more complex projects, the operations manager was the project sponsor. The vice president was the project sponsor of the three or four most complex projects, and the president was the project sponsor only on projects with a high degree of political risk.

This approach to assigning project sponsors assured that each project had an organizational advocate that could address barriers and provide direction and resources. The project sponsor, in this organization, developed a relationship with a senior representative of the client organization, reviewed monthly reports, and conducted thorough quarterly reviews. Project managers often have the breadth of responsibility associated with corporate chief executive officers CEOs. The project manager facilitates the start-up of a project and develops the staff, resources, and work processes to accomplish the work of the project. He or she manages the project effectively and efficiently and oversees the closeout phase. Some projects are larger than major divisions of some organizations, with the project manager responsible for a larger budget and managing more risk than most of the organizational leaders.

The function of the project manager can vary depending on the complexity profile and the organizational structure. Defining and managing client expectations and start-up activities, developing the scope, and managing change are functions of the project manager. On some projects, the project manager may provide direction to the technical team on the project. On other projects, the technical leadership might come from the technical division of the parent organization. Although the functional responsibilities of the project manager may vary, the primary role is consistent on every project.

The primary role of the project manager is to lead, to provide a vision of success, to connect everyone involved in the project to that vision, and to provide the means and methods to achieve success. The project manager creates a goal-directed and time-focused project culture. The project manager provides leadership. In general, project controls Planning function and the function that tracks progress against the plan.

Project control provides critical information to all the other functions of the project and works closely with the project manager to evaluate the cost and scheduling impact of various options during the life of a project. Sometimes accounting functions such as payroll, budgeting, and cash management are included within project controls. On larger projects, accounting functions are typically separate because the accounting culture tracks expenses to the nearest penny, and cost estimating and tracking by project controls can often be off by hundreds and sometimes thousands of dollars. The lack of definitive information necessitates the development of cost estimates within ranges that are often inconsistent with accounting practices.

Separating these two functions allows each to operate within their own accuracy comfort zone. The following are typical activities included within the project controls function:. The project controls team gathers this information from all the functions on the project and develops reports that enable each functional manager to understand the project plan and progress against the plan at both the project level and the functional level. On large complex projects, some project managers will assign project controls professionals to work within the major functions as well as the project management office.

The project controls manager then coordinates activities across functions. The approach to purchasing the supplies and equipment needed by the project is related to the complexity profile of the project. A small project with a low complexity level may be able to use the procurement services of the parent organization. In an organization where project resources reside in various departments, the departments may provide the supplies and equipment each team member of the project may need. A college in South Carolina chartered a number of projects to increase the energy efficiency of the college. The project team included members from various college departments. Each department paid for the time, travel expenses, and supplies needed by the team member from their department.

Each team member continued to use the computers and administrative support in their department for project work. The costs for this support was not included in the project budget nor tracked as a project expense. Equipment purchased by the project that was installed to reduce the energy consumption of the college was purchased through the college procurement department and charged to the project. More complex projects with greater procurement activity may have a procurement person assigned to the project.

This same South Carolina college retrofitted a warehouse to create a new training center for industry. A procurement person was assigned to the project to manage the contract with the construction firm remodeling the space, the purchase and installation of the new training equipment, and the purchase of the supplies needed by the project team. All the procurement activity was charged to the project. The procurement person reported to the project manager for better communication on what the project needed and when it needed it. The procurement person participated as a member of the project team to understand and provide input into the costs and scheduling decisions. The procurement person reported to the college procurement manager for developing and implementing project procurement processes that met college procurement policies and procedures.

On larger, more complex projects, the procurement team has several responsibilities. The team is responsible for procuring the supplies and equipment such as office supplies and computers needed for the project team and the supplies and equipment such as the training equipment needed to execute the project. On a typical construction project, the procurement team would rent a construction trailer, office supplies, and computers for the project team to establish a construction office at the construction site.

The procurement team would also purchase the concrete, rebar, steel, and other material needed to construct the building. On the large mining project in South America, during the initiation phase of the project, the procurement department arranged for office space and supplies for the engineering teams in Canada, Chile, and Argentina and construction offices at the construction site in Argentina. As the design and engineering progressed, the procurement team managed bids for the major equipment and bids for the preparation of the construction site.

The procurement team managed the logistics associated with transporting large equipment from Europe, North America, and Asia to the job site in rural Argentina. After the completion of the project, the procurement team managed the deposal of project property. On large, complex projects, the procurement team manages at least three types of relationships with companies doing business with the project. The largest number of purchased items for most projects are commodity items. Commodities are items that can be bought off the shelf with no special modification for the project. These items are typically bid and the lowest prices that can meet the schedule of the project will win the contract.

The procurement team assures the company that wins the bid can perform to the contact specifications and then monitors the progress of the company in meeting the projects requirements. Concrete for the project and the cranes leased to the project are examples of commodities. The key to success in managing commodity suppliers is the process for developing the bids and evaluating and awarding the contracts. The second type of relationship is the vendor relationship. The terms supplier and vendor are often used interchangeably. In this text, suppliers provide commodities, and vendors provide custom services or goods. Suppliers bid on specialized equipment for the project. Engineers will specify the performance requirements of the equipment, and suppliers that have equipment that meets the requirements will bid on the project.

The engineering team will assist in the evaluation of the bids to assure compliance with specifications. The lowest bid may not win the contract. Sometimes the long-term maintenance costs and reliability of the equipment may indicate a high price for the equipment. The key to success is the development of clear performance specifications, good communication with potential bidders to allow bidders to develop innovative concepts for meeting the performance requirements, and a bidding process that focuses on the goals of the project.

The third type of project procurement relationship is the partnership. Sometimes the partnership is legally defined as a partnership, and sometimes the success of each partner is so closely tied together that the relationship operates as a partnership. On the South American project, the project team partnered with an Argentinean construction company to access the local construction practices and relationship with local vendors. This was a legal partnership with shared profits.

The partner also designed and procured some large mining equipment on which the success of the project and the company building the mining equipment depended. With this type of relationship, a senior manager on the project is assigned to coordinate activities with the partner, and processes are put in place to develop shared goals, align work processes, and manage change. The technical management on the project is the management of the technology inherent in the project—not the technology used by the team to manage the project.

The technical complexity on a project can vary significantly. The technological challenges required to build a bridge to span a five-hundred-meter canyon are significantly different from those required to span a five-thousand-meter body of water. The technological complexity of the project will influence the organizational approach to the project. The newness refers to the degree to which the technology has been accepted in the industry. The more accepted the technology is in the industry usually means that more knowledge and experience will be available to the team. Familiarity refers to the experience the project team has with the technology. The less familiarity the team has with the technology, the more energy and resources the team will expend on managing the technological aspect of the project.

For projects with high levels of project technology, a specialist may be hired to advise the technology manager. A steel company in Indiana purchased a new coal injection technology that would improve the quality of steel, reduce the cost to produce the steel, and reduce air and water pollution. The contract to design and construct the new plant was awarded to an engineering and construction company. No one on the engineering and construction team had experience with the coal injection technology. The client owned the coal injection technology, and the engineering and construction team brought the project management technology.

On large projects or projects with a high degree of technical complexity, the quality is sometimes a separate function reporting to the project manager. For example, if the project is to design and construct an automobile factory, the quality manager focuses on the project work processes and meeting the technical specification of the equipment installed by the project team.

The project quality manager is not responsible for the quality of the car the plant produces. If the plant functions to the defined project specifications, the quality of the plant output is the responsibility of the plant quality department, and it may take several months for the plant to refine the work processes to meet the design specifications of the car. On a construction project, the quality manager may test steel welders to assure the welders have the skills and that the welds meet project specifications.

On a training project, the quality manager may review the training curriculum and the qualification of the instructors to assure the training provides the knowledge and skills specified by the client. On a drug development project, the quality manager may develop processes to assure the water and other raw material meet specifications and every process in the development process is properly documented. The administrative function provides project specific support such as the following:.

In most organizations, support for these functions is provided by the parent organization. For example, people assigned to the project will get human resources HR support from the HR department of the parent organization. Salary, benefits, and HR policies for employees assigned to the project will be supported out of the HR department. The parent organization will provide accounting functions such as determining the cost of cash, taxes, year-end project reports, and property disposal at the end of the project.

On more complex projects, the project may have an administrative manager responsible for coordinating the administrative functions of the projects. On larger, more complex projects, an administrative function may be established as part of the project team, with many of the functions assigning a resource to the project. In all cases, the administrative function on a project is closely related to the legal and organizational responsibilities of the parent organization and close coordination is important. The South American mine project has major design work to accomplish in three different design offices: Vancouver, Santiago, and Argentina.

The project manager and the leadership team reside in Santiago, Chile. During the design stage of the project, the engineering manager in each engineering office is leading the work with project controls, procurement, and administration, each assigning resources to support the engineering activities at each location. The project engineer manager assigned the engineering work based on the capabilities of the office and coordinates the work between offices. The procurement, project controls, and administrative leaders assign resources to support the work in each office. For example, the project controls manager assigned a planner in each office to support the engineering manager in that office to develop and track the schedule. The project planner in Vancouver supports the development of the engineering schedule in Vancouver and communicates and coordinates with the planning activities in the other locations.

When the project construction activities started, project controls, procurement, and administrative resources moved from supporting engineering to supporting the construction activity. The project organizational structure changed as the engineering manager and the engineering effort changed from primarily designing the project to supporting the construction effort, by answering construction questions and developing solutions to construction challenges.

The procurement effort changes from managing the bidding and contracting activities to managing the logistics. Refer to the descriptions of the project functions and determine which manager would take care of each of the following problems. If you think the problem requires the attention of more than one function, explain why. Scores range from 1 least complex to 5 most complex. Refer to the following descriptions for tips on arriving at a DPCI score for size:. Recall that system complexity is determined by the variety of types of elements and the number of connections there are between elements. Review a chart of the organizational structure that depicts the reporting relationships, the number of people involved, their familiarity with each other, and the amount of cross connections between reporting relationships and functions.

Recall that this category refers to the technology that is part of the project. It might be new technology that is being implemented to make a step change in the efficiency of an operation. Recall that this category refers to the familiarity of the project team with the technology that is part of the project. Assigning a score is not an absolutely accurate process. Your objective is to be approximately correct, and some people are not comfortable with this type of estimate.

Recall that one of the attributes of a successful project manager is the ability to live with ambiguity. One method that will help when assigning a score is to consider the two extremes. Next consider what the most complex scenario would be, which would describe a 5. Then, compare actual projects to those two extremes. If it is close to, but not as simple as, the least complex, you would give it a 2. If it is close to, but not as complex as, the most complex scenario you would give it a 4. If it is about in the middle, it rates a 3. Refer to the tips for assigning scores to answer the following questions:. Consider a project that involves the merger of computer systems of two banks. The software used by the acquiring bank is relatively new, and only about a third of the project team is familiar with it.

Your task is to determine a DPCI rating for the familiarity of the project team with the technology. Exercises at the end of the chapter are designed to strengthen your understanding and retention of the information recently acquired in the chapter. Write several paragraphs to provide more in-depth analysis and consideration when answering the following questions. The exercises in this section are designed to promote an exchange of information among students in the classroom or in an online discussion.

The exercises are more open ended, which means that what you find might be completely different from what your classmates find, and you can all benefit by sharing what you have learned. Many organizations standardize their project development process using templates. The use of templates makes it easier to compare projects and to assure that all the requirements are met. In this exercise, you locate and download a template for creating a scope statement and its completion instructions. The template is used by the State of Virginia. This template and its instructions for completion provide an overview of the structure of a project because the main parts of a project are clearly identified.

A list of templates displays, as shown in Figure 3. Open the file. Scroll down to page 2 and display section E, steps 1 through 3, as shown in Figure 3. Previous Chapter. Table of Contents. Next Chapter. Chapter 3 Project Phases and Organization This chapter provides an overview of the organizational structure and phases of a project. Describe the types of activities in each phase of a project. Initiation The initiation phase Activities associated with starting the project.

Planning The planning phase Developing detailed schedules; plans for staffing, procurement, and project controls; and a budget. The obvious advantage of a project structure is that you have more control over the team, but other advantages are in place, too:. The project structure is the easiest to work with, but still has some drawbacks:. The third option is a matrix structure. Resources are shared across both business-as-usual work and project work. It might mean having two managers or "dotted-line" responsibility to a project manager as well as to the team manager. The functional management line structure is normally in place first, and the project manager takes the dotted line. This structure splits power and authority between the functional or division team manager and the project manager.

Matrix structures are very common because they allow managers to make flexible choices with how people spend their time. The advantages of this structure are:. As with all setups, this one has its pitfalls, too. Despite it being a common structure, not many modern workplaces have cracked the problems of overload. Other disadvantages are:. Getting some experience in each of these structures is a good idea so you can experience them firsthand. It will help you decide which environment suits you best and fits your skills and preferences. Then you can make an informed choice if you have the chance to decide your future job environment. Understanding the pros and cons of each project organizational structure gives you a chance to work out where best to spend your time and influence to get the most out of your team and help your project conclude successfully.

Project Management Basics. Table of Contents Expand. Table of Contents.

Project management guide on Pros And Cons Of Chapter 5 Project Organizational Structures. As a manager, what could you do to help your subordinates who have other bosses besides yourself? Participation Pros And Cons Of Chapter 5 Project Organizational Structures be more useful if it starts at earlier stages, preferably while Pros And Cons Of Chapter 5 Project Organizational Structures problem is still being diagnosed.

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