SESSION 2: Types of Organization

Project Life Cycles

Organization Structure of the Project
Prepared by: Engr. Debbie Lyn Cabacungan
Intended Learning Outcomes:

At the end of the week, Student should be able

to:

1. Differentiate organization and management

2. Understand the different types of Project life
cycles.
3. Analyze the advantages and disadvantages of
project organization structure.
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TYPES OF ORGANIZATION
Functional

An Organizational structure in which

staff is grouped by areas of specialization and
the project manager has limited authority and
apply resources.
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TYPES OF ORGANIZATION
Functional
PRESIDENT

Marketing VP Operations VP Finance VP Services VP

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TYPES OF ORGANIZATION
Projectized

An Organizational structure in which

staff is grouped by areas of specialization and
the project manager has limited authority and
apply resources.
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TYPES OF ORGANIZATION
Projectized
PRESIDENT

Project Manager
Project Manager 2 Project Manager 3 Project Manager 3
1
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TYPES OF ORGANIZATION
Matrix

The Project Manager or Project team

leader actually shares responsibility for the
project with a number of individual functional
managers.
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TYPES OF ORGANIZATION
Matrix
PRESIDENT

Operations
Marketing VP Operations VP Finance VP
Manager

PM 1

PM 2

PM 3
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ORGANIZATIONAL STRUCTURE
COMPARISON
FUNCTIONAL MATRIX PROJECTIZED
Who makes Functional Shared Project Manager
most project Manager
decision?
o Good discipline o Flexible o Breakdown
specific o Easy to share Department
knowledge resources barriers
o Easy for central o Good cooperation o Shorter
control between departments response time
o Effective for o More input for o Quicker decision
Advantages

shared resources decision o One “boss”

o One “boss” o Wide acceptance of o Enhanced
o Clear career path decisions project team
for professionals o Good discipline identity
specific knowledge o Customer Focus
o Effective integration o Effective
on project Integration on
o Increased knowledge Project
transfer between
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ORGANIZATIONAL STRUCTURE
COMPARISON
FUNCTIONAL MATRIX PROJECTIZED
o Slow communication o Two “bosses” o Duplication of
between departments o Many sources of conflict resources
o Slow response to o More meetings o Rules not always
Disadvantages

change o Slow reaction time respected

o Slow decision making o Hard to monitor and
control
o Potential lessons
learned can be lost
o Discipline specific
knowledge can slip
o Less career
continuity for project
team members
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PROJECT LIFE CYCLES

GENERIC PROJECT CYCLE

Selecting Closing &

Phase & Initiating Planning Executing Realizing

Approval to Charter Kickoff Project Administrative

proceed result closing
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PROJECT LIFE CYCLES

DMAIC MODEL

Define Measure Analyze Control

Phase

Approval to
Problem Fact gathering Root causes Methods in
proceed Statement defined and identified place to
facts collected and maintain
statically improvement
proven
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PROJECT LIFE CYCLES

R & D PROJECT LIFE CYCLE

MODEL
Phase
Idea Idea Concept
Validation Transition
Generation screening Development

Approval to
proceed
Opportunity Business Proven Prototype
analysis Case Concept
First lot and
hands off
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PROJECT LIFE CYCLES
CONSTRUCTION LIFE CYCLE
MODEL
Phase
Pre- Design Procurement
Constructi Transition
planning
on

Approval to
proceed
Scope Procurement & Materials Facilities
definition & Construction and services
execution documents Production
strategy attainment
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Level of Effort

o Research and Development

o Market Analysis
o Financing
o Economics, cost benefit ratio
o Licensing

o Research and Development

o Preliminary Investigation
o Design Analysis
o Detailed Engineering
o Tender Documents
-Contract Documents

CONCEPTUAL DEFINITION
-Evaluation and Awards

o Signing of Contract
o Procurement of Materials
o Mobilization of Labor and Equipment
o Construction
o Quality Control
EXECUTION

o Pre-final/Final Inspection
o Testing and Commissioning
Project Life-Cycle Curve

o Correction of Defects (punch list)

o Certificate of Completion
TURNOVER

o Closeout
& ACCEPTANCE
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ORGANIZATIONAL STRUCTURE OF A
PROJECT

Traditional

Design-construction
Manager

Project
Management
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A /E CONTRACT

• Separate designer
• Single general contractor
• Numerous subcontractors
• Fixed price, unit price, guaranteed
maximum, or cost plus a fixed fee
• construction contract
• Negotiated professional fee for
design service
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D /CM CONTRACT

• Single firm is responsible for both

design and construction
management
• Fixed or negotiated prime
contracts
• Fixed price or cost plus fee a fee
design contract
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PROFESSIONAL CONSTRUCTION MANAGER

• Three party team

• Fixed or negotiated price with
the owners
• CM may act as an owner’s to
extend delegated
• Negotiated professional fee for
CM services and design services
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TURNKEY CONSTRUCTION
OF A PROJECT

• Combined designers and

contractor
• Numerous subcon
• Fixed price, guaranteed max
or cost plus fixed fee
• Combined fee for design
services
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STAGES OF AWARDING CONTRACT

 Preparation of Contract Documents

 Advertising the tender, tender notice
 Submitting or tender by Contractor
 Clarifications regarding conditions or
specifications
 Preparing comparative list.
 Awarding contract
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REFERENCES

 Griffiths, J. (2018). Civil Engineering Construction

Planning and Management. New York, NY 100017,
USA: Clanrye International.

 Timothy J. Kloppenborg, V. A. (2017).

Contemporary Project Management. Boston, MA
02219 USA: Cengage.