This blog posting is continuation of previous blog posting (W8). Refer to Humphreys, after work scope has been defined and project risks has been registered, the next step in the EVM process to identify the individuals responsible for performing the work as described in the following figure :
Figure 1 : Earned Value Project Management : The Process, Step 3 – Responsibility Assignment
(Sources : Humphreys Page 92)
TOOLS AND TECHNIQUES
All of the tools in the tool box as described in Step 3 will be used in order to meet objective to comprehensive understand the EVM process.
ORGANIZATION CHART of THE COMPANY
There are 6 types of organization structure in accordance with the Project Management Institute : Functional Organization, Projectized Organization, Weak Matrix, Balane Matrix, Strong Matrix, and Composite Organization. The company currently adopt Strong Matrix Organization as shown in figure below :
Figure 2 : The Company Organization Chart
For medium scale and below project, the standard project organization as shown in figure below :
Figure 3 : Standard Project Organization Chart for Small Scale Project
The advantage and disadvantage of adopting the aforesaid type of organization can be simply explain by Utakrit as the following :
- It attempts to retain the benefits of both structures (functional organization and project team structure).
- Efficient utilization of resources / Coordinates resources in a way that applies them effectively to different projects.
- Staff can retain membership on teams and their functional department colleagues.
- Functional expertise available to all projects
- Increased learning and knowledge transfer
- Customer focus
- Potential for conflict between functional vs. project groups
- Need for balance of power
- Greater administrative overhead.
- Increase in managerial overhead
- Dual reporting relationships
Construction department as part of Project Organization has been defined to comply with Work Breakdown Structure which has been defined in step 2
Figure 4 : Construction Department Organization
RESPONSIBILITY ASSIGNMENT MATRIX (RAM)
After the work is defined and the project organization known, the development of a matrix that correlates scope of work with the organization is shown on the following figure particularly for construction area :
Figure 5 : Responsibility Assignment Matrix (RAM)
CONTROL ACCOUNT ESTABLISHMENT
Further planning can proceed in the area of defining specific accounts or element that can be used to control the works. These are called Control Account. The purpose of control account to manage the technical, schedule and cost performance of a managerially significant element of the work as shown in figure below :
Responsibility assignment is an important element of project management after work has been defined. OBS defines the project organization. Control account is the intersection point between WBS and OBS to manage the technical, schedule, and cost performance of a managerially significant element of the works.
MONITORING & POST VALUATION
Further step (step 3) Work Team will be defined in next blog posting.
- Giammalvo, P.D. (2012). AACE Certification Preparation Course Handouts.
- Humphreys, G.C. (2011). Project Management Using Earned Value Second Edition. Humphreys & Associates, Inc.
- Project Management for Development Organizations Atlanta USA. (2007). Project Management Organization Structures. PM4DEV. Retrieved from : http://ocha-rw-v4.unog.ch/rw/rwt.nsf/db900SID/AMMF79BN9K/$File/PM4DEV_Project_Management_Organizational_Structures.pdf?OpenElement
- Utakrit, N. (2007). Project Organization. The Faculty of Information Technology: KMITNB. Retrieved from : http://suanpalm3.kmutnb.ac.th/teacher/FileDL/nattavee51255516344.pdf