W9.0_RQ_Implementation of The Earned Value Management Process for Housing Project : The Process Steps 3 – Organization and Responsibility Assignment


PROBLEM STATEMENT

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 :

Image

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 :

Image

Figure 2 : The Company Organization Chart

For medium scale and below project, the standard project organization as shown in figure below :

Image

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 :

Advantages :

  • 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

Disadvantages :

  • 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

Image

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 :

Image

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 :

Figure 6 : Control Account

 

CONCLUSION

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.

 

REFERENCES

  1. Giammalvo, P.D. (2012). AACE Certification Preparation Course Handouts.
  2. Humphreys, G.C. (2011). Project Management Using Earned Value Second Edition. Humphreys & Associates, Inc.
  3. 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
  4. Utakrit, N. (2007). Project Organization. The Faculty of Information Technology: KMITNB. Retrieved from : http://suanpalm3.kmutnb.ac.th/teacher/FileDL/nattavee51255516344.pdf
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1 thought on “W9.0_RQ_Implementation of The Earned Value Management Process for Housing Project : The Process Steps 3 – Organization and Responsibility Assignment

  1. Another AWESOME posting, Pak Ramzi……..

    Couple of challenges to stimulate your thinking…….

    Remember my slides #105 and #106 from Day 1? What did Henry Fayol have to say about working in a matrixed environment? What did “Kelly Johnson” think about matrixed organizational structures? The Torah, the Bible and the Quran all say that “man (and presumably women?) can only serve one master”. So if all these authorities say matrixed work environments are not effective, then how can we optimize the effectiveness when working in a matrixed work environment?

    My second challenge comes from Utakrit. Do you think the organization structure that works for an IT company would necessarily be appropriate for a construction company? Wouldn’t it make more sense to reference a construction company Org Chart than an IT company? Compare what you have against some of these to see if your model remains valid or not. http://goo.gl/5p9cJ (Maybe there ARE no differences between IT and Construction, but better check it out just to make sure?)

    I love your work and really hope you continue on with your paper, even if it takes you another year. You have a really great topic and one I know will generate a lot of interest.

    BR,
    Dr. PDG, Jakarta

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