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UNIT-I

CONCEPT OF PROJECT“A project in business and science is a collaborative enterprise,

frequently involving research or design, that is carefully planned to

achieve a particular aim.”

The word project comes from the Latin word projectum  from the Latin

verb proicere , "to throw something forwards" which in turn comes from

pro- , which denotes something that precedes the action of the next part

of the word in time (paralleling the Greek ) andπρό iacere , "to throw".

The word "project" thus actually originally meant "something that comesbefore anything else happens".

Specific uses

School and university

At school and university, a project is a research assignment given to a

student which generally requires a larger amount of effort and more

independent work than is involved in a normal essay assignment. It

requires students to undertake their own fact-finding and analysis, either

from library/internet research or from gathering data empirically. The

written report that comes from the project is usually in the form of a

dissertation, which will contain sections on the project's inception,

methods of inquiry, analysis, findings and conclusions.[2]

Engineering project

The engineering project is a particular type of technological system,

embedded in the context of technological systems in general[3].

Engineering projects are, in many countries, specifically defined by

legislation, which requires that such projects should be carried out by

registered engineers and/or registered engineering companies. That is,

companies with license to carry out such works as design and

construction of buildings, power plants, industrial facilities, installation

and erection of electrical grid networks, transportation infrastructure and

the like.

The scope of the project is specified on a contract between the owner

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and the engineering and construction parties. As a rule, an engineering

project is broken down into design and construction phases. The

outputs of the design process are drawings, calculations, and all other

design documentation necessary to carry out the next phase.

Examples of notable projects-

1) Human Genome Project which mapped the human genome

2) Manhattan Project, which developed the first nuclear weapon

3) Polaris missile project: an ICBM control-system

4) Project Apollo, which landed humans on the moon

5) Soviet atomic bomb project

6) Soviet manned lunar projects and programs

CATEGORIES OF PROJECTS

No Conclusions Can Be Drawn Concerning the Proposed Project Categories: Table 1, from the

2003 paper referenced earlier and used in the survey questionnaire, shows the proposed project

categories and sub-categories. These are based primarily on the nature of the end results to be produced

by each project. The survey objectives in this regard were to test the validity of this classification

method and to discover what, if any, other methods are in widespread use in various countries. The on-

line questionnaire enabled the responder to select one of five terms for each category and sub-category

name from a drop-down list that included these choices (within the country from which the responder 

is reporting):

• Universally accepted and used• Widely accepted and used

• Accepted and used by some practitioners

• Rarely accepted and used

• Never accepted and used.

Spaces for an alternative name and for comments and each item were also provided.

Because of the small number of responses from each country, ranging from 1 to a maximum of 7, it is

not possible to draw any valid conclusions regarding 1) how widespread the use is of the proposed

categories, 2) theProject Categories:Each having similar life cycle phases and a uniqueproject managementprocess

Examples

1. Aerospace/Defense Projects1.1 Defense systems1.2 Space1.3 Military operations

New weapon system; major system upgrade.Satellite development/launch; space station mod.Task force invasion

2. Business & Organization Change Projects2.1 Acquisition/Merger 

2.2 Management process improvement2.3 New business venture2.4 Organization re-structuring2.5 Legal proceeding 

Acquire and integrate competing company.Major improvement in project management.Form and launch new company.Consolidate divisions and downsize company.

3. Communication Systems Projects3.1 Network communications systems3.2 Switching communications systems

Microwave communications network.3rd generation wireless communication system.

4. Event Projects

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4.1 International events4.2 National events

2004 Summer Olympics; 2006 World Cup Match.2005 U. S. Super Bowl; 2004 Political Conventions.

5. Facilities Projects5.1 Facility decommissioning5.2 Facility demolition

5.3 Facility maintenance and modification5.4 Facility design/procurement/constructionCivil

EnergyEnvironmentalHigh riseIndustrialCommercialResidentialShips

Closure of nuclear power station.Demolition of high rise building.

Process plant maintenance turnaround.Conversion of plant for new products/markets.Flood control dam; highway interchange.New gas-fired power generation plant; pipeline.Chemical waste cleanup.40 story office building.New manufacturing plant.New shopping center; office building.New housing sub-division.New tanker, container, or passenger ship

6. Information Systems (Software) Projects New project management information system.(Information system hardware is considered to be in theproduct development category.)

7. International Development Projects 7.1 Agriculture/rural development7.2 Education7.3 Health7.4 Nutrition7.5 Population7.6 Small-scale enterprise7.7 Infrastructure: energy (oil, gas, coal, power 

generation and distribution), industrial,telecommunications, transportation, urbanization,water supply and sewage, irrigation)

People and process intensive projectsin developing countries funded by The World Bank,regional development banks, US AID, UNIDO, other UN,and government agencies; andCapital/civil works intensive projects often somewhat different from 5. Facility Projects as theymay include, as part of the project, creating anorganizational entity to operate and maintain the facility,and lending agencies impose their project life cycle andreporting requirements.

8. Media & Entertainment Projects 8.1 Motion picture8.2 TV segment

8.2 Live play or music event

New motion picture (film or digital).New TV episode.New opera premiere

9. Product and Service Development Projects9.1 Information technology hardware9.2 Industrial product/process9.3 Consumer product/process9.4 Pharmaceutical product/process9.5 Service (financial, other)

New desk-top computer.New earth-moving machine.New automobile, new food product.New cholesterol-lowering drug.New life insurance/annuity offering.

10. Research and Development Projects10.1 Environmental10.2 Industrial10.3 Economic development10.4 Medical10.5 Scientific

Measure changes in the ozone layer.How to reduce pollutant emission.Determine best crop for sub-Sahara Africa.Test new treatment for breast cancer.Determine the possibility of life on Mars.

PROJECT DEVELOPMENT CYCLE

It is important to keep in mind that good projects don’t happen by accident.

There are many steps along the way that help to ensure a quality

presentation.

Step 1Define the project: This initial step involves determining the

boundaries of the project as well as identifying how the project relates to theoverall curriculum. One should be encouraged to select topics that are neither

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too broad nor too narrow in focus.

Step 2Locate resources: In this phase, identification of the traditional

and unconventional sources of information about the project takes place.

These may include resource CDs, Web sites, encyclopedias, magazines,

journals, video tapes, audio tapes, and books.

Step 3Organize resources: Once resources have been collected, project

management team will need to spend some time selecting the notes, data,

computer files, and Web links they will include in their project. It is important to

guide students to select project resources based on the informational value

they will add, and not simply because they are glitzy or look cool.

Step 4Design the project:  At this point, students are ready to produce a

storyboard or flowchart of their project. They can create an outline, draw a

diagram, or use a software program such as Inspiration to organize their

ideas.

Step 5Develop the project:  In this step, students will design their projectusing digital media tools such as video, sound, graphics, text, and animation.

Step 6Present the project:  This phase of the project is very important,

but is often overlooked. Students take great pride in projects they create.

Therefore, it is important that they be allowed to present their project to

audiences such as their class, their family, or other members of the

community.

Step 7Revise the project:  Based on the feedback received from

instructors and peers, students will review their project and make changes to

improve it. In the process, students will understand how successful they were

in communicating with their audience.Step 8Implement the project:  In this final step implementation of the

project work takes place.

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  PROJECT DEVELOPMENT CYCLE

 

TYPICAL DEVELOPMENT PHASES OF AN ENNGINEERING

PROJECT

CONCEPT OF PROJECT MANAGEMENT  : 

Project management is the discipline of planning, organizing, securing

and managing  resources to bring about the successful completion of

specific project goals and objectives. It is sometimes conflated with

program management, however technically that is actually a higher

level construction: a group of related and somehow interdependentengineering projects.

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A project is a temporary endeavor, having a defined beginning and end

(usually constrained by date, but can be by funding or deliverables),[1] 

undertaken to meet unique goals and objectives,[2] usually to bring

about beneficial change or added value. The temporary nature of

projects stands in contrast to business as usual (or operations),[3] whichare repetitive, permanent or semi-permanent functional work to produce

products or services. In practice, the management of these two systems

is often found to be quite different, and as such requires the

development of distinct technical skills and the adoption of separate

management.

The primary challenge of project management is:

1) To achieve all of the engineering project goals and

2) Objectives while honoring the preconceived project constraints.

Typical constraints are i)scope, ii) time, and iii) budget.

The secondaryand more ambitiouschallenge is:

1) To optimize the allocation 

2) integration of inputs necessary to meet pre-defined objectives.

Project management has been practiced since early civilization. Until

1900 civil engineering projects were generally managed by creativearchitects and engineers themselves, among those for example

Vitruvius (1st century BC), Christopher Wren (1632–1723) , Thomas

Telford (1757–1834) and Isambard Kingdom Brunel (1806–1859).[6] It

was in the 1950s that organizations started to systematically apply

project management tools and techniques to complex engineering

projects.[7]

As a discipline, Project Management developed from several fields of

application including civil construction, engineering, and heavydefense activity.[8] Two forefathers of project management are Henry 

Gantt, called the father of planning and control techniques,[9] who is

famous for his use of the Gantt chart as a project management tool;

and Henri Fayol for his creation of the 5 management functions which

form the foundation of the body of knowledge associated with project

and program management.[10] Both Gantt and Fayol were students of

Frederick Winslow Taylor's theories of scientific management. His

work is the forerunner to modern project management tools including

work breakdown structure (WBS) and resource allocation.

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Processes

Traditionally, project management includes a number of elements: four

to five process groups, and a control system. Regardless of the

methodology or terminology used, the same basic project management

processes will be used.

 The project development stages  :

Major process groups generally include:

1) Initiation

2) Planning or development

3) Production or execution

4) Monitoring and controlling

5) Closing

In project environments with a significant exploratory element

(e.g.)Research and development), these stages may be

supplemented with decision points (go/no go decisions) at which

the project's continuation is debated and decided. An example isthe Stage-Gate model

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Initiation

Initiating Process Group Processes[19]

The initiation processes determine the nature and scope of the

project[21]. If this stage is not performed well, it is unlikely that the

project will be successful in meeting the business’ needs. The key

project controls needed here are an understanding of the business

environment and making sure that all necessary controls are

incorporated into the project. Any deficiencies should be reported and a

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recommendation should be made to fix them.

The initiation stage should include a plan that encompasses the

following areas:

Analyzing the business needs/requirements in measurable goals

Reviewing of the current operations

Financial analysis  of the costs and benefits including a budget

Stakeholder analysis  , including users, and support personnel for the

project

Project charter  including costs, tasks, deliverables, and schedule

Planning and design

Planning Process Group Activities[19]

After the initiation stage, the project is planned to an appropriate level of

detail. The main purpose is to plan time, cost and resources adequately

to estimate the work needed and to effectively manage risk during

project execution. As with the Initiation process group, a failure to

adequately plan greatly reduces the project's chances of successfully

accomplishing its goals.

Project planning generally consists of[22]

Determining how to plan (e.g. by level of detail or rolling wave);

Developing the scope statement;

Selecting the planning team;

Identifying deliverables and creating the work breakdown structure;

Identifying the activities needed to complete those deliverables and

networking the activities in their logical sequence;

Estimating the resource requirements for the activities;

Estimating time and cost for activities;

Developing the schedule;

Developing the budget;

Risk planning;

Gaining formal approval to begin work.

Additional processes, such as planning for communications and for

scope management, identifying roles and responsibilities, determining

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what to purchase for the project and holding a kick-off meeting are also

generally advisable.

For new product development projects, conceptual design of the

operation of the final product may be performed concurrent with theproject planning activities, and may help to inform the planning team

when identifying deliverables and planning activities.

Executing

Executing Process Group Processes[19]

Executing consists of the processes used to complete the work defined

in the project management plan to accomplish the project's

requirements. Execution process involves coordinating people and

resources, as well as integrating and performing the activities of the

project in accordance with the project management plan. The

deliverables are produced as outputs from the processes performed asdefined in the project management plan.

Monitoring and controlling

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 Monitoring and controlling consists of those processes performed to

observe project execution so that potential problems can be identified in

a timely manner and corrective action can be taken, when necessary, to

control the execution of the project. The key benefit is that project

performance is observed and measured regularly to identify variances

from the project management plan.

Monitoring and Controlling Process Group Processes[19]

Monitoring and Controlling includes:[23]

Measuring the ongoing project activities ('where we are');

Monitoring the project variables (cost, effort, scope, etc.) against theproject management plan and the project performance baseline

(where we should be );

Identify corrective actions to address issues and risks properly (How 

can we get on track again );

Influencing the factors that could circumvent integrated change control

so only approved changes are implemented

In multi-phase projects, the monitoring and control process also

provides feedback between project phases, in order to implementcorrective or preventive actions to bring the project into compliance with

the project management plan.

Project Maintenance is an ongoing process, and it includes:[20]

Continuing support of end users

Correction of errors

Updates of the software over time

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Monitoring and Controlling cycle

In this stage, auditors should pay attention to how effectively and

quickly user problems are resolved.

Over the course of any construction project, the work scope maychange. Change is a normal and expected part of the construction

process. Changes can be the result of necessary design modifications,

differing site conditions, material availability, contractor-requested

changes, value engineering and impacts from third parties, to name a

few. Beyond executing the change in the field, the change normally

needs to be documented to show what was actually constructed. This is

referred to as Change Management. Hence, the owner usually requires

a final record to show all changes or, more specifically, any change thatmodifies the tangible portions of the finished work. The record is made

on the contract documents – usually, but not necessarily limited to, the

design drawings. The end product of this effort is what the industry

terms as-built drawings, or more simply, “as built.” The requirement for

providing them is a norm in construction contracts.

When changes are introduced to the project, the viability of the project

has to be re-assessed. It is important not to lose sight of the initial goals

and targets of the projects. When the changes accumulate, the

forecasted result may not justify the original proposed investment in the

project.

Closing

 

Closing Process Group Processes.[19]

Closing includes the formal acceptance of the project  and the ending

thereof. Administrative activities include the archiving of the files and

documenting lessons learned.

This phase consists of:[20]

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Project close: Finalize all activities across all of the process groups

to formally close the project or a project phase

Contract closure: Complete and settle each contract (including the

resolution of any open items) and close each contract applicable

to the project or project phase.

TOOLS AND TECHNIQUES OF PROJECT

MANAGEMENT

Here are examples and explanations of four commonly used

tools in project planning and project management, namely:Brainstorming, Fishbone Diagrams, Critical Path Analysis Flow

Diagrams, and Gantt Charts. Additionally and separately see

business process modelling and quality management, which

contain related tools and methods aside from the main project

management models shown below.

The tools here each have their strengths and particular purposes,

summarised as a basic guide in the matrix below.

Matrix key:

B = BrainstormingF = Fishbone/Ishikawa DiagramsC = Critical

Path Analysis Flow DiagramsG = Gantt Charts 

*** -

** - o

* - so

B F C

Project brainstorming and initial concepts, ideas, structures,

aims, etc

*

*

*

*

* 

Gathering and identifying all elements, especially causal and

hidden factors

* *

*

*

*

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*

Scheduling and timescales*

*

Identifying and sequencing parallel and interdependent

activities and stages*

*

*

*

Financials - costings, budgets, revenues, profits, variances, etc * **

*

Monitoring, forecasting, reporting **

*

Troubleshooting, problem identification, diagnosis and

solutions

*

*

*

*

*

*

*

'Snapshot' or 'map' overview - non-sequential, non-scheduled*

*

**

*

Format for communications, presentations, updates, progress

reports, etc* *

brainstorming

Brainstorming is usually the first crucial creative stage of the

project management and project planning process. See the

brainstorming method in detail and explained separately,

because it many other useful applications outside of project

management.

Unlike most project management skills and methods, the first

stages of the brainstorming process is ideally a free-thinking and

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random technique. Consequently it can be overlooked or under-

utilized because it not a natural approach for many people

whose mains strengths are in systems and processes.

Consequently this stage of the project planning process can

benefit from being facilitated by a team member able to manage

such a session, specifically to help very organised people to

think randomly and creatively.

fishbone diagrams

Fishbone diagrams are chiefly used in quality management

fault-detection, and in business process improvement, especially

in manufacturing and production, but the model is also very

useful in project management planning and task management

generally.

Within project management fishbone diagrams are useful for

early planning, notably when gathering and organising factors,

for example during brainstorming.

Fishbone diagrams are very good for identifying hidden factors

which can be significant in enabling larger activities, resources

areas, or parts of a process.

Fishbone diagrams are not good for scheduling or showing

interdependent time-critical factors.

Fishbone diagrams are also called 'cause and effect diagrams'and Ishikawa diagrams, after Kaoru Ishikawa (1915-89), a

Japanese professor specialising in industrial quality

management and engineering who devised the technique in the

1960s.

Ishikawa's diagram became known as a fishbone diagram,

obviously, because it looks like a fishbone:

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The diagram above is a very simple one. Typically fishbone

diagrams have six or more main bones feeding into the spine.

Other main category factors can include Environment,Management, Systems, Training, Legal, etc.

The categories used in a fishbone diagram should be whatever

makes sense for the project. Various standard category sets exist

for different industrial applications, however it is important that

your chosen structure is right for your own situation, rather than

taking a standard set of category headings and hoping that it fits.

At a simple level the fishbone diagram is a very effective

planning model and tool - especially for 'mapping' an entire

operation.

Where a fishbone diagram is used for project planning of course

the 'Effect' is shown as an aim or outcome or result, not a

problem.

The 'Problem' term is used in fault diagnosis and in quality

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management problem-solving. Some fishbone diagrams can

become very complex indeed, which is common in specialised

quality management areas, especially where systems are

computerised.

This model, and the critical path analysis diagram are similar to

the even more complex diagrams used on business process

modelling within areas of business planning and and business

process improvement.

project critical path analysis (flow

diagram or chart)

'Critical Path Analysis' sounds very complicated, but it's a very

logical and effective method for planning and managing

complex projects. A critical path analysis is normally shown as

a flow diagram, whose format is linear (organised in a line), and

specifically a time-line.

Critical Path Analysis is also called Critical Path Method - it's

the same thing - and the terms are commonly abbreviated, to

CPA and CPM.

A commonly used tool within Critical Path Analysis is PERT 

(Program/Programme/Project Evaluation and Review

Technique) which is a specialised method for identifying related

and interdependent activities and events, especially where a bigproject may contain hundreds or thousands of connected

elements. PERT is not normally relevant in simple projects, but

any project of considerable size and complexity, particularly

when timings and interdependency issues are crucial, can

benefit from the detailed analysis enabled by PERT methods.

PERT analysis commonly feeds into Critical Path Analysis and

to other broader project management systems, such as those

mentioned here.

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Critical Path Analysis flow diagrams are very good for showing

interdependent factors whose timings overlap or coincide. They

also enable a plan to be scheduled according to a timescale.

Critical Path Analysis flow diagrams also enable costings and

budgeting, although not quite as easily as Gantt charts (below),

and they also help planners to identify causal elements, although

not quite so easily as fishbone diagrams (below).

This is how to create a Critical Path Analysis. As an example,

the project is a simple one - making a fried breakfast.

First note down all the issues (resources and activities in a rough

order), again for example:

Assemble crockery and utensils, assemble ingredients, prepare

equipment, make toast, fry sausages and eggs, grill bacon and

tomatoes, lay table, warm plates, serve.

Note that some of these activities must happen in parallel - and

crucially they are interdependent. That is to say, if you tried to

make a fried breakfast by doing one task at a time, and one after

the other, things would go wrong. Certain tasks must be started

before others, and certain tasks must be completed in order for

others to begin. The plates need to be warming while other

activities are going on. The toast needs to be toasting while the

sausages are frying, and at the same time the bacon and sausages

are under the grill. The eggs need to be fried last. A Critical Path

Analysis is a diagrammatical representation of what needs doneand when. Timescales and costs can be applied to each activity

and resource. Here's the Critical Path Analysis for making a

fried breakfast:

This Critical Path Analysis example below shows just a few

activities over a few minutes. Normal business projects would

see the analysis extending several times wider than this

example, and the time line would be based on weeks or months.It is possible to use MS Excel or a similar spreadsheet to create

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a Critical Path Analysis, which allows financial totals and time

totals to be planned and tracked. Various specialised project

management software enable the same thing. Beware however

of spending weeks on the intricacies of computer modelling,

when in the early stages especially, a carefully hand drawn

diagram - which requires no computer training at all - can put

90% of the thinking and structure in place. (See the details about

the most incredible planning and communications tool ever

invented, and available for just a tiny fraction of the price of all

the alternatives.)

project critical path analysis flowdiagram example

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gantt charts

Gantt Charts (commonly wrongly called gant charts) are

extremely useful project management tools. The Gantt Chart is

named after US engineer and consultant Henry Gantt (1861-

1919) who devised the technique in the 1910s.

Gantt charts are excellent models for scheduling and for

budgeting, and for reporting and presenting and communicating

project plans and progress easily and quickly, but as a rule Gantt

Charts are not as good as a Critical Path Analysis Flow Diagram

for identifying and showing interdependent factors, or for

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'mapping' a plan from and/or into all of its detailed causal or

contributing elements.

You can construct a Gantt Chart using MSExcel or a similar

spreadsheet. Every activity has a separate line. Create a time-

line for the duration of the project (the breakfast example shows

minutes, but normally you would use weeks, or for very big

long-term projects, months). You can colour code the time

blocks to denote type of activity (for example, intense, watching

brief, directly managed, delegated and left-to-run, etc.) You can

schedule review and insert break points. At the end of each line

you can show as many cost columns for the activities as youneed. The breakfast example shows just the capital cost of the

consumable items and a revenue cost for labour and fuel. A

Gantt chart like this can be used to keep track of progress for

each activity and how the costs are running. You can move the

time blocks around to report on actuals versus planned, and to

re-schedule, and to create new plan updates. Costs columns can

show plan and actuals and variances, and calculate whatever

totals, averages, ratios, etc., that you need. Gantt Charts areprobably the most flexible and useful of all project management

tools, but remember they do not very easily or obviously show

the importance and inter-dependence of related parallel

activities, and they won't obviously show the necessity to

complete one task before another can begin, as a Critical Path

Analysis will do, so you may need both tools, especially at the

planning stage, and almost certainly for large complex projects.

gantt chart example

 

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A wide range of computerised systems/software now exists for

project management and planning, and new methods continue to

be developed. It is an area of high innovation, with lots of scope

for improvement and development. I welcome suggestions of 

particularly good systems, especially if inexpensive or free.

Many organizations develop or specify particular computerised

tools, so it's a good idea to seek local relevant advice and

examples of best practice before deciding the best computerised

project management system(s) for your own situation.

Project planning tools naturally become used also for

subsequent project reporting, presentations, etc., and you will

make life easier for everyone if you use formats that people

recognize and find familiar.

PROJECT ORGANIZATION TYPES: 

The way projects are structured is directly related to the way the entireorganization is structured. There are three major organization structuresto manage work and people.

Functionally Based

In a functional organization, a project team is staffed with people fromthe same department. All the resources needed for the project team

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come from the functional organization. For instance, if the project isrelated to the finance function, the project resources come from theFinance Division. If you need IT, finance and legal resources, theywould all be available from within the Finance Division.A second way that a project is staffed in a functional organization is byexecuting portions of a project in one functional organization at a time.For example, let’s say that a large project needed resources from theFinance, Purchasing, IT and Manufacturing departments. In a functionalorganization, the project would be broken down by organizational unitand each unit would do its own part relatively independently. The ITDepartment would work on its piece. The Finance Department wouldwork on its piece. The Manufacturing and Purchasing Departmentswould work on its pieces. At the end, all of the independent solutionswould be integrated into one final solution.The biggest advantage of functionally based projects is that there isusually clear authority, since the project managers tend to also be thefunctional managers. You also do not need to negotiate with other organizations for resources, since all of the staff needed for your projectwill come from the same functional organization. Other advantages of this organization are that the team members are usually familiar witheach other, since they all work in the same area. The team membersalso tend to bring applicable business knowledge of the project.A major disadvantage of the functional organization is that your functional area may not have all of the specialists needed to work on a

project. A Finance project with an IT component, for instance, may havedifficulty acquiring specialty IT resources such as DatabaseAdministrators, since the only people available will work in their ownfunctional department. Another disadvantage is that project teammembers may have other responsibilities in the functional organizationsince they may not be needed full-time on a project. They may beassigned to other projects, but it is more typical that they would havesupport responsibilities that could impact their ability to meet projectdeadlines.

Project Based

When projects are large enough, it’s possible to form functionaldepartments within the project team. This is especially practical when alarge program has hundreds of people assigned over a long period of time. Advantages include clear authority, since the project manager isalso the functional manager, and a clear focus, since everyone on theteam has only the project for his primary responsibility.One disadvantage is duplication of resources, since scarce resourcesmust be duplicated on different projects. For instance, a large project

may have its own Human Resources staff, which could duplicate acentral Human Resources Department. There can also be concerns

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about how to reallocate people and resources when projects arecompleted. In a functional organization, the people still have jobs withinthe functional department. In a project-based organization it is not soclear where everyone is reassigned when the project is completed.

Matrix Based

Matrix organizations allow functional departments to focus on their specific business competencies and allow projects to be staffed withspecialists from throughout the organization. For instance, DatabaseAdministrators may all report to one functional department, but would beallocated out to work on various projects in other departments. A Legalresource might report to the Legal Department, but be assigned to aproject in another department that needs legal expertise. It is common

for people to report to one person in the functional organization, whileworking for one or two project managers from other departments.The main advantage of the matrix organization is the efficient allocationof all resources, especially scarce specialty skills that cannot be fullyutilized by only one project. For instance, data modeling specialists maynot be utilized full-time on a project, but can be fully leveraged byworking on multiple projects. The matrix-based organization is also themost flexible when dealing with changing business needs and priorities.The main disadvantage is that the reporting relationships are complex.Some people might report to functional manager for whom little work is

done, while actually working for one or more project managers. Itbecomes more important for staff members to develop strong timemanagement skills to ensure that they fulfill the work expectations of multiple managers. This organization also requires communication andcooperation between multiple functional and project managers that allneed time from the same resources.

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