Reasons for growth in Project Organizations
- first to market advantage
- requires inputs from diverse areas of specialized knowledge
- rapid expansion of technological capabilities
Pros and Cons of Functional Organizations
Pros
- max flexibility in the use of staff
- individual experts used across diff projects
- experts can be grouped to share knowledge
- functional division is the base of techological continuity
- functional divison contains normal path of advancement
Cons
- functional divison focuses on activities of that function
- no individual is given full responsibility
- slow client response
- tendency to suboptimize the project
- motivation is weak
- not a hollistic approach
Pros and Cons of Projectized Organizations
Pros
- PM has full authority
- all members report to the PM
- expertise can be retained for similar projects
- strong identity / high motivation
- supports a holistic approach
Cons
- duplication of resources or managers,
- stockpile of resources and skills. expensive,
- high tech projects lack interest in business objectives
- Inconsistent policies
- projectitis (worry about what will happen after project)
Matrix Organizations is a…. of …. and….
hybrid of Functional and Projectized (standalone projects) Organizational structures
Virtual projects crosses … …. …. … boundaries
time
space
organizational
cultural
Virtual Projects are facilitated by
the internet
When are Functional Orgs selected?
- in-depth application of technology
- investments are in one functional area
When are Projectized Orgs selected?
- when org handles a number of similar projects (ex: construction projects)
- handling highly specific projects
When are Matrixed Orgs selected?
- needs inputs from multiple functional areas
- projects that use technology from several departments
Process of Project Selection (6)
- Define desired deliverables
- Break down deliverables into tasks
- Arrange key tasks by sequence and arrange them into work packages
- Determine org units to carry out the work packages
- List special characteristics or assumptions of project
- Choose a project form (weigh pros/cons)
Purpose of PMO
- set standards for all projects
- set good PM practices across the firm
- project goals = parent org strategy
- facilitator of projects, not the doer
4 Guidelines for Successful PMO
- Identify quantifiable measures
- Set realistic deadlines
- Acquire needed resources
- Establish credibility
Project Charter Meeting Outcomes are (4)
- technical scope defined
- roles and responsibilities accepted
- due dates/budgets noted
- risk management group formed
Project Charter Elements (PORRE)
Purpose= define goals
Overview = high level view of objectives
Resources= project budget; cost monitoring; contractual items
Risk Management Plans= potential threats to project
Evaluation Methods= evaluate project against standards
Objective= define goals in detail (priorities, profits..) Schedule = milestones events or phase-gates Stakeholders= list of stakeholders
Define Work Breakdown Structure and PMBOK definition
project deliverable that breaks down of teams work into manageable sections
OR
deliverable orientated hierarchical decomposition of work to be executed by the project team
Steps to create a WBS (6)
- Task breakdown in successive levels
- Identify data for each work packages
- Cost the work package
- Schedule the work package
- Examine the resource use
- Examine the schedule
RACI matrix what it stands for and what it keeps track of
Responsible = peson "assigned the work" Accountable= ultimate owner Consult= person to ask before making decisions Inform= person to tell once a decision has been taken
Keeps track of:
- who approves what
- who to notify
Subprocess of Risk Management (MIQQRMM)
Risk Management Planning Risk Identification Qualitative Analysis Quantitative Analysis Risk Response Planning Risk Monitoring and Control Risk Managment Register
3 Tools used for Quantitative Analysis
FMEA
Decision Trees
Monte Carlo Simulations
How does FMEA work?
- List the ways a project can fail
- evaluate Severity (S) of each failure
- estimate Likelihood (L) of the event occurring
- Identify inability to detect (D) the failure
- RPN = SxLxD –> Risk priority number
- Consider ways to reduce SLD. High RPN = high risk.
