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Organization Types MT 246 Module 2

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Next step towards providing project management focus ... Different skills required at different project phases. Hire/Release, or ... – PowerPoint PPT presentation

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Title: Organization Types MT 246 Module 2


1
Organization Types MT 246 - Module 2
2
Assignments
  • Should have read Nicholas Chapters 1 2
  • Lecture will cover 14 and Appendix C
  • NASA Org Chart homework assignment was described
    in last class
  • Due next Thursday, January 25

3
Last Lecture
  • Definition of a Project
  • Discussed the Roles and Responsibilities of the
    Project Team
  • Project Manager
  • Project Staff Personnel
  • Contract Management
  • Subcontract Management
  • Production/Material Control
  • Cost/Schedule Control (Project Operations)
  • System Engineer

4
Last Lecture (contd)
  • Engineers/Scientists
  • Technicians/Assemblers
  • Quality Assurance
  • Specialty Engineering
  • Materials and Processes
  • Component Engineering
  • Reliability, Availability, Maintainability
  • Safety Engineering
  • Configuration and Data Mangement
  • Logistics

5
This Lecture
  • Nicholas discusses system engineering next
  • Need to understand how businesses organize
    themselves before covering technical management
  • Follow with Cost and Schedule methodologies
  • Project Manager spends 60 to 70 of his/her time
    here
  • Cover System Engineering and System Life Cycle
    last
  • Discuss the way companies organize themselves
  • Formally studied in the field of Organizational
    Development
  • Three common methods of organizing a company

6
Business Organization Types
  • Traditional
  • Functional
  • Geographical
  • Customer
  • Process
  • Product
  • Project
  • Matrix

7
Business Organization Objectives
  • Organization success depends on the way
    individuals and groups are organized
  • Last lecture reviewed roles and responsibilities
    of individuals in an organization
  • Employees can be organized by employee function,
    product type, project, or geographic/customer
    location
  • Managers in an organization will typically have 5
    or 6 Direct Reports
  • Supervisors may have up to 15 or 20 technicians
    in their group
  • Span of Control of a manager is determined by
    position in the corporate hierarchy

8
Business Organization Objectives (contd)
  • Clearly define the flow of authority within the
    company and the project
  • Typically have two types of organization charts
  • Functional
  • Project
  • Deal with issues of reporting to both a project
    and a functional manager
  • Two lines of authority
  • Two bosses
  • Authority matrix
  • Deal with contractual authority to subcontractors

9
Authority Matrix
10
Large Scale Integration Projects
  • Large projects often fail as a result of
    incomplete definition of the lines of authority
  • Project manager must spend significant time and
    thought on the organization of sub-projects and
    sub-contracts
  • Example NASA CSOC Project is 3.5 Billion over 5
    years
  • This can be quite complex
  • If you have a complex reporting relationship, the
    probability of failure goes up

11
Integration Relationships on a Large Scale
Project
12
Iron Butterfly Scenario
  • Model company and project scenario discussed
    throughout Nicholas
  • Utilized to assist student in relating
    theoretical concepts to a real world scenario
  • Used throughout the course
  • Iron Butterfly Co. is the Contractor
  • Logistical On-line System (LOGON) Development
  • Project Plan covered in Appendix C
  • Read and Study independently
  • Midwest Parcel Distribution Co. (MPD) is the
    Customer
  • Four subcontractors

13
LOGON Project
  • Total Cost 1,148,094
  • Labor Overhead 708,873
  • Material 87,070
  • Subcontracts 247,650
  • General and Administrative 104,501
  • Schedule 11.5 months
  • Automated warehouse facility and equipment

14
LOGON Deliverables
  • Facility Refurbishment
  • Robotic Transporter
  • Overhead Conveyor System
  • Storage Rack Assemblies
  • Shipping Containers
  • Data Processing System
  • Software
  • Mainframe
  • Work Stations
  • Local Area Network

15
MPD Facility Layout
16
Robotic Transporter
17
Storage Rack Assembly
85 feet
15 feet
Shipping Container
7 ft
18
Iron Butterfly Functional Org Chart
19
Organization Design
  • No best type of organization
  • Unique for each organization
  • Organization structure is dynamic
  • Evolutionary responses to ongoing problems
  • As organizations grow, or environment changes,
    managers review and revise the organization

20
Functional Organization Description
  • Personnel in an organization are grouped by area
    of expertise
  • Functional units or areas
  • Marketing, finance, production, design
    engineering, etc.
  • Accomplishment of a project requires coordination
    between functional areas
  • A great deal can be learned by the study of Org
    Charts

21
Functional Organization Drawbacks
  • When problems occur, functional managers must
    resolve issues and set priorities
  • Problems can occur with this type of organization
    when a functional manager has multiple projects
    in progress simultaneously within his group
  • Schedule priorities and allocation of personnel
    can allow a project to become an Orphan due to
    manpower loading limitations, conflicts with
    other projects, etc.

22
Typical Management Meeting
23
Liaison Assignments
  • This is the first step toward providing project
    focus within a Functional Organization
  • Assign focal point within each organization to
    interact across functional boundaries
  • Still has the problem of very complex management
    interaction
  • Many individuals in each company responsible for
    project health
  • No project manager
  • Success of this type of organization depends on
    the people involved, and their willingness to
    own a problem
  • How do you interview and select/hire these
    folks!!!

24
Iron Butterfly Liaison Org Chart
25
Project Team Assignments
  • Assignment of Project Manager who reports to a
    high level of the organization
  • Next step towards providing project management
    focus
  • Accomplished by creating dotted line
    relationship between project personnel
  • Weak Project Matrix
  • Useful for small projects requiring fractional
    headcount
  • Employees at the working level have two bosses

26
Iron Butterfly Project Team Org Chart
27
Project Organization Description
  • For large projects, it is better to organize
    around project deliverables
  • Allows excellent customer and project focus
  • Combination of Functional and End Item
    subprojects
  • Dedicated project personnel assigned only to your
    project
  • Fractions of engineers are required for some
    roles
  • Must assign people to multiple roles

28
Iron Butterfly LOGON Project Org Chart
29
Project Organization Drawbacks
  • Temporary Organization
  • At end of project, everyone has to scramble for
    new project assignments
  • Different skills required at different project
    phases
  • Hire/Release, or
  • Use sub-optimal personnel skill mix if keep
    project team intact throughout life of contract.
  • Small projects cannot justify dedicated project
    manager and staff

30
Project Organization Design Guidelines
  • Carefully think through each key project role
  • Consider several alternatives
  • Organize around deliverable end items
  • Change the organization with project phases
  • Avoid weird org chart topologies and span of
    control extremes

31
Org Chart Topologies
32
Typical Project Org Chart
33
NASA Org Chart - Top Management
34
NASA Org Chart - Program/Project
35
Matrix Organization Description
  • Grid-like structure of authority and reporting
    relationships
  • Created by overlay of a project organization and
    functional organization
  • Functional part of the organization is repository
    for technical expertise and physical resources
    (Labs, manufacturing areas, etc.)
  • Project manager negotiates personnel assignments
  • Project manager controls money
  • Functional manager controls personnel
    (assignments, salaries, raises)

36
Iron Butterfly Matrix Org Chart
37
Drawbacks of Matrix Organizations
  • Overlays horizontal resources onto Functional
    vertical resources
  • Subject to authority conflicts between Project
    and Functional managers
  • Engineers can be torn between dual loyalty to
    Project Manager (tasker) and Functional
    Manager(rater)
  • Required to wear two hats
  • Functional manager controls promotions and raises
  • Project manager recommends to the Functional
    manger

38
Org Chart Tips for New Employees
  • New hires generally are not given org charts
  • Must figure out organization upon assignment/hire
  • Ask for and study Org Charts
  • Study Telephone Directory
  • Study company Web Site
  • There are always two organizations
  • Published Org Charts (Wiring Diagram)
  • Informal Org Structure
  • Usually derived from prior working relationships
  • Family/school alums, etc.

39
Org Chart Tips for New Employees (contd)
  • Watch out for the Informal Org Structure!!!!
  • It can hurt you if unaware
  • It can help you if you figure it out
  • Always treat upper managers, peers, and people
    working for you with respect
  • They may shoot pool with the President

40
How to Select a Project Organization
  • Certain situations lend themselves to applying
    certain types of organizations
  • No correct approach
  • Depends heavily on the talent of the employees
  • General guidelines apply

41
Organization Criteria
  • Frequency of new projects
  • Duration of projects
  • Size of projects
  • Complexity of relationships required to succeed

42
Organization Selection Criteria
43
Role of Structured Process
  • Total Quality Management (TQM)
  • Quality Function Deployment
  • Concurrent Engineering

44
Next Topic - Role of the Project Manager
  • Job Responsibilities
  • Lines of Authority
  • Characteristics and Skills
  • Hiring and Selection
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