Project Delivery Methods • Traditional All build activities start after all design work is completed

ENGR 301 H Lecture 2

Design

Build

Activity 1

Engineering Management Project Stakeholders Organization Structure S. El-Omari

ENGR 301 Lecture 2

Activity 2 Activity 3

1

S. El-Omari

Project Delivery Methods

• Fast Track

Design and Build phases overlap, but for each activity Build starts after Design ends Design

Design and Build phases overlap; For each activity Build starts before Design is finalized Design

Build

Activity 1

Build

Phased Time saving

Activity 1

Activity 2

...

Activity 2

...

Time saving

Activity n

Time saving

Activity n

ENGR 301 Lecture 2

3

S. El-Omari

Characteristics

ENGR 301 Lecture 2

ENGR 301 Lecture 2

4

Project Stakeholder

Traditional • Longest overall project duration • Single contractor Phased • Shorter overall project duration • Multiple contractors; Requires PM Fast Track • Shortest overall project duration • Multiple contractors; Requires PM • Very difficult to manage • Inadequate design & schedule S. El-Omari

2

Project Delivery Methods

• Phased

S. El-Omari

ENGR 301 Lecture 2

• Individuals and organizations that are: – Actively involved in the project – Their interest is effected by project – Can influence over project’s objectives

5

S. El-Omari

ENGR 301 Lecture 2

6

1

Project Stakeholder

Project Stakeholder

• Key stakeholder

• Key stakeholder

– Project manager - Person responsible for managing the project – Costumer/ user – Person or organization that will use the project’s product. – Performing organization – The enterprise whose employees are mostly involved in doing the work of the project. – Project team members – the group that is performing the work of the project. S. El-Omari

ENGR 301 Lecture 2

7

– Project management team – The members of the project team who are directly involved in project management activities. – Sponsor – The person or group that provides the financial resources for the project. – Influencers – people or group that are not directly related to the acquisition or the use of the project’s product.

S. El-Omari

Project Stakeholder

ENGR 301 Lecture 2

8

Organizational Structure • Projects are typically part of an organization that is larger than the project. Ex.: Corporations, Government agencies, Healthcare institutions, international bodies, professional associations and others.

• Projects influenced by organization or organizations that set it up

S. El-Omari

ENGR 301 Lecture 2

9

S. El-Omari

ENGR 301 Lecture 2

10

Functional Organization

Types of Organizational Structures

Project is divided into segments and assigned to relevant functional areas &/or group within functional areas. The project is coordinated by functional and upper level of management.

• Functional • Projectized • Matrix – Week – Balanced – strong

Moselhi 1997 Barrie & Paulson “Professional construction management”

S. El-Omari

ENGR 301 Lecture 2

11

S. El-Omari

ENGR 301 Lecture 2

12

2

Functional Organization

Functional Organization • Hierarchy where each employee has one clear superior. (Unity of command) • Staff grouped by specialty. • Perceived project scope is limited to boundaries of each function (e.g. engineering working independently of manufacturing department) Barrie & Paulson “Professional construction management”

S. El-Omari

ENGR 301 Lecture 2

13

S. El-Omari

Functional Organization

Weaknesses include • Poor communication across functional areas. • Low adaptability. • Min. appreciation of overall project objectives. • Overly rigid operating rules. • Resistance to change.

Barrie & Paulson “Professional construction management”

ENGR 301 Lecture 2

14

Functional Organization

Strength include • High stability. • High professional standard. • Incorporation of latest technology. • Excellent corporate memory. • Tightest discipline control.

S. El-Omari

ENGR 301 Lecture 2

15

Functional Organization

Barrie & Paulson “Professional construction management”

S. El-Omari

ENGR 301 Lecture 2

16

Sample Functional Organizations

• Work best when design and construction don’t overlap. • Requires skilled people-oriented managers, who can avoid internal conflict with other functional groups.

• Universities • Government • Armed forces

Barrie & Paulson “Professional construction management”

S. El-Omari

ENGR 301 Lecture 2

17

S. El-Omari

ENGR 301 Lecture 2

18

3

Projectized Organization

Projectized Organization

A project manager is in charge of a project team composed of a core group of personnel from different functional areas &/or groups assigned on a full time basis. The functional managers have no formal involvement. Moselhi 1997 Project Management Body of Knowledge S. El-Omari

ENGR 301 Lecture 2

19

S. El-Omari

Projectized Organization

ENGR 301 Lecture 2

Matrix Organization

• Team members are collocated • Most organization’s resources are involved in the project. • Project managers have a great deal of independence and authority. • Department report directly to project manager, or provide support services to various projects.

• A blend of functional & projectized attempting to preserve the strong point of each. • Strong matrix organization resembles projectized organization (max. power to project managers). • Weak matrix organization resembles Functional organization (max. power to functional managers).

S. El-Omari

S. El-Omari

ENGR 301 Lecture 2

21

Weak Matrix Organization

ENGR 301 Lecture 2

ENGR 301 Lecture 2

22

Balanced Matrix Organization

Project Management Body of Knowledge S. El-Omari

20

Project Management Body of Knowledge 23

S. El-Omari

ENGR 301 Lecture 2

24

4

Strong Matrix Organization

Matrix Organization • Project responsibilities such as scope, cost & schedule are the responsibility of the project manager. • Functional objectives such as quality assurance, design standards and internal company policies are the responsibility of the functional manager.

Project Management Body of Knowledge S. El-Omari

ENGR 301 Lecture 2

25

S. El-Omari

Matrix Organization

ENGR 301 Lecture 2

Disadvantages • Difficulty in precisely defining accountability of both functional and project managers. • Violation of unity of command principle. • Strongest managers often dominate. • Highest overall management and administrative cost.

27

Weak Balanced

Strong

28

Projectized Project Management Body of Knowledge

Barrie & Paulson “Professional construction management” S. El-Omari

ENGR 301 Lecture 2

Project responsibility

Functional responsibility

S. El-Omari

Organizational Structure Influences on Projects

Matrix Organization

Functional

26

Matrix Organization

Advantages • Combine functional strength with the advantage of project-oriented team. • Fosters excellent climate for developing project managers. • Retain access to the corporate memory.

S. El-Omari

ENGR 301 Lecture 2

ENGR 301 Lecture 2

29

S. El-Omari

ENGR 301 Lecture 2

30

5

Some References • Association for the Advancement of Cost Engineering (AACE). – CCE (Certified Cost Engineer) – PSP (Planning and Scheduling Professional)

• Project Management Institute (PMI). – PMP (Professional Project Manager)

• Journal of Management in Engineering (by ASCE) S. El-Omari

ENGR 301 Lecture 2

31

6