Project Delivery Methods • Traditional All build activities start after all design work is completed
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Design
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Engineering Management Project Stakeholders Organization Structure S. El-Omari
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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
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Phased Time saving
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Time saving
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Characteristics
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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
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• Phased
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• Individuals and organizations that are: – Actively involved in the project – Their interest is effected by project – Can influence over project’s objectives
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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
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– 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.
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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
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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.
Moselhi 1997 Barrie & Paulson “Professional construction management”
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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”
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Functional Organization
Weaknesses include • Poor communication across functional areas. • Low adaptability. • Min. appreciation of overall project objectives. • Overly rigid operating rules. • Resistance to change.
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Functional Organization
Strength include • High stability. • High professional standard. • Incorporation of latest technology. • Excellent corporate memory. • Tightest discipline control.
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Functional Organization
Barrie & Paulson “Professional construction management”
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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
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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
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Projectized Organization
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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).
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Weak Matrix Organization
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Balanced Matrix Organization
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Project Management Body of Knowledge 23
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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
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Matrix Organization
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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.
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Projectized Project Management Body of Knowledge
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Project responsibility
Functional responsibility
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Organizational Structure Influences on Projects
Matrix Organization
Functional
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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.
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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
Property. Asset. S. El-Omari. ENGR 301 Lecture 21. Capital Cost Allowance. Deference between book depreciation and CCA. 1. The income tax act specifies ...
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