Organizational Structure in Project Management

1. Basic Theory of Project Organization

  Project organization is an organizational guarantee system to ensure the normal implementation of engineering projects. As far as the project is a one-time task, the project organization construction includes a life cycle from organizational design, organizational operation, organizational renewal to organizational termination. In order to organize a large number of materials, equipment and manpower within a limited time, space and budget, and to implement the project objectives as planned, a reasonable project organization must be established.

  1. Project organization characteristics

  (1) The organizational goal is single and the work content is complex

  (2) The project organization is a temporary organization

  (3) The project organization should be lean and efficient

   (4) The project manager is the key to the project organization

  2. Principles of project organization and setting

  (1) Principles of effective range management

  (2) The principle of equal rights and responsibilities

  (3) The principle of proportionality between talents and jobs

  (4) The principle of unity of command

  (5) Principles of effect and efficiency

  (6) The principle of timely reorganization

  3. Type of project organization

  (1) Engineering headquarters type: Since 1964, my country's large-scale engineering projects have mainly adopted this form, and it is still widely used. The advantage is that it has the characteristics of quick decision-making and high efficiency in solving the problems of mutual cooperation and cooperation in the process of project implementation; The project organization of the engineering command type adopted in the modern project management has been greatly improved in both form and content than the early engineering command type.

  (2) Functional organization type: The structure is pyramid-shaped, top managers are located at the top of the pyramid, and middle and bottom managers are distributed down the tower body. The company's business activities are divided into departments according to functions such as design, production, marketing and finance; a project can be part of a functional department in the company, which should be the most helpful to the implementation of the project or the most likely to make the project successful Departments, such as developing a new product project, can be placed under the technical department, directly under the responsibility of the technical department manager.

  (3) Project organization type: In this form of organization, each project operates like a micro-company, the members of the project team come from different departments, and the resources required to complete each project are fully allocated to this project, specifically for the the project service.

  (4) Matrix organization type: the most widely used new organization form in modern large-scale projects. It is a combination of functional organization type and project organization type, effectively combining the vertical advantages of functional organization type with the horizontal advantages of project organization type. A matrix organization is composed of vertical functional departments and horizontal different project groups to form a matrix, which combines centralization and decentralization, thereby strengthening the collaborative relationship between various functional departments and various projects.

  4. The series of changes in the project organizational structure

  (1) The series of changes in the project organizational structure

  Functional organization type, project organization type and matrix organization type can be represented as a change series. Based on the ratio of staff working time in their own department and working time in the project team, list the organizational structure change series shown in the figure above.

  (2) Organizational characteristics of common projects

  5. Factors Affecting Project Organization Selection

  6. Formation of the project team

  (1) The members of the project team

  1) Project manager: including the owner's project manager, the project manager of the design unit and the project manager of the implementation unit.

  2) Project Engineer: In charge of product design and development, responsible for product functional analysis, specifications, drawings, cost estimates, quality, engineering changes and technical documents.

  3) Manufacturing engineer: organize an effective production process for the project engineer's design results, including designing and installing the corresponding production equipment, arranging the production schedule and other production activities.

  4) On-site manager: Responsible for on-site support when the product is delivered to users, including installation and debugging.

  5) Contract Administrator: Responsible for all official written documentation of the project, keeping track of user changes, questions, complaints, legal aspects, costs and other contractual matters delegated to the project.

  6) Project administrator; responsible for recording the daily income and expenditure of the project, including cost changes, labor costs, daily necessities and equipment conditions, etc.; also make some reports regularly, and keep close contact with the project manager and company leaders.

  7) Support service manager: responsible for product service support, contact with subcontractors, information processing, etc.

  The following figure is a typical organizational chart in common use:

  (1) Establish a communication plan for the project team: usually meetings, written reports, e-mails or their combined forms can be used to strengthen information communication and mutual exchange among project team members.

  (2) Project kick-off meeting: The purpose is to convene the project related personnel to meet, to introduce the project objectives, implementation strategies and plans, and to announce the relevant procedures in the project management; the participants include the project sponsor, customer representatives, the company's subjective leadership, and related functions. Department managers and all project team members, the end of this meeting marks the official start of the project.

  2. Examples of project organization in the implementation of ERP projects

  In the process of implementing ERP for an aviation company, we are responsible for both the designer and the implementer, so the above-mentioned design and implementation project teams can be integrated into one team, but bear the responsibilities of two teams; this case adopts a project-based project organizational structure.

  1. Main members and function description of the designer/implementer project team

  (1) Project manager

  ● Discuss and determine final project scope and implementation approach with business users

  ● Responsible for formulating specific project plans, including training plans

  ● Grasp the progress of all aspects of the project

  ● Guide business process reengineering and project changes

  ● Inspection and control project implementation scope

  ● Report the project status to the company, put forward suggestions and improvement measures

  ● Responsible for the quality of the project stage

  ● Project management work that other project managers should be responsible for

  (2) Technical engineer

  ● Provide technical support for project implementation according to the project implementation plan

  ● Assist the project manager to define the scope and goals of the project

  ● Participate in discussions and develop project plans

  ● Provide system technical training according to the project implementation plan

  ● Develop strategies and programs to guide system management

  ● Develop data management strategies and programs

  ● Design, develop and test for customized development

  ● Responsible for system installation and providing equipment selection parameters  

  ● Provide comments on the overall performance of the system

  ● Provide design and integration advice based on past implementation experience

  ● Complete data conversion and system switching to ensure system startup and operation

  ● Responsible for unit, system and overall testing

  ● Responsible for compiling user manuals and training and instructing end users

  ● Responsible for other necessary technical work

  (3) Implementation engineer

  ● Provide implementation support for project implementation according to the project implementation plan

  ● Assist the project manager to define the scope and goals of the project

  ● Participate in discussions and develop project plans

  ● Provide system function training according to the project implementation plan

  ● Develop a detailed implementation plan and progress plan for the guidance system

  ● Formulate data conversion formats and schemes

  ● Customize the system

  ● Assist technicians in system installation and technical maintenance

  ● Provide comments on the overall performance of the system

  ● Provide suggestions on implementation risks and prevention based on past implementation experience

  ● Complete the implementation goals of the system phase to ensure that the system runs smoothly on schedule

  ● Assist technicians in unit, system and overall performance testing

  ● Assist the project manager to carry out stage acceptance and system acceptance

  ● Other necessary implementation work

 (4) Customer representative

  ● Responsible for the relationship coordination and communication with enterprise users

  ● Responsible for data collection and information transmission

  ● According to the needs of the project, be responsible for other necessary project work

2. Main members and function description of the project team of the enterprise

 (1) Project leader

  ● Responsible for liaising with the designer to ensure the smooth implementation of the project on schedule

  ● Participate in project planning, assist in managing project scope, scheduling resources, and monitoring progress

  ● Provide training on business support methods after the system goes live and be responsible for future business support

  ● Project management work that other project leaders should be responsible for

(2) General members of the project

  ● Arrange and detail design of business process and functional requirements

  ● Formulate necessary data security management system

  ● Formulate the necessary internal implementation management system of the system

  ● Collect, organize and prepare data, and provide necessary data conversion support for designers

  ● Participate in the formulation of detailed project implementation plan, stage plan and training plan

  ● Responsible for the training and usage guidance of end-operating users

  ● Participate in unit and integration testing of related systems

  ● Accept knowledge transfer from consultants

  ● Provide technical and related support after implementation for enterprise users

  ● Provide hardware and communication network required for installation and maintenance

  ● Assist in the installation and debugging of the designer's software system

  ● Provide system technology and operating environment to support the normal operation of system training, implementation, maintenance, etc.

  ● According to the needs of the project, under the unified deployment of the project leader, carry out other necessary implementation work.

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