Project Management- Pure, Functional, And Matrix Project; Statement Of Work & Work Breakdown Structure

PROJECT MANAGEMENT

Structuring Project

Advantages and Disadvantages of different types of Project

Statement of Work (SOW)

Work Breakdown Structure

Project management can be defined as planning, directing, and controlling resources (people, equipment, and material) to meet the technical, cost, and time constraints of the project.

Structuring Projects

3 main form of projects- Pure Project, Functional Project, and Matrix Project

Pure Project

A Pure project is where a self-contained team works full time on the project.

Advantages

  • The project manager has full authority over the project.
  • Team members report to one boss.
  • Lines of communication are shortened. Decisions are made quickly.
  • Team pride, motivation, and commitment are high

Disadvantages

  • Duplication of resources.
  • Organizational goals and policies are ignored.
  • Lack of new technology transfer due to weakened functional divisions
  • Team members have no functional area home.


Functional Project

The end of the project organization spectrum is the Functional Project. Its theme is housing the project within a functional division.

ADVANTAGES

  • A team member can work on several projects.
  • Technical expertise is maintained within the functional area even if individuals leave the project or organization.
  • Functional area is a home after the project is completed.
  • A critical mass of specialized functional-area experts creates synergistic solutions to a project’s technical problems

DISADVANTAGES

  • Motivation of team members is often weak.
  • Needs of the client are secondary and are responded to slowly.
  • Aspects of the project that are not directly related to the functional are get shortchanged.


Matrix Project

The matrix project attempts to blend properties of functional and pure project structure. If the matrix form is chosen, different projects (rows of matrix) borrow resources from functional areas (columns).
Senior management must then decide whether a weak, balanced, or strong form of a matrix is to be used.

    ADVANTAGES

  • Communication between functional divisions is enhanced.
  • A project manager is held responsible for successful completion of the project.
  • Duplication of resources is minimized.
  • Team members have a functional “home” after project completion, so they are less worried about life-after-project than if they were a pure project organization.
  • Policies of the parent organization are followed.

DISADVANTGES

  • There are two bosses. Hence, who can promote you or give you a rise?
  • It is doomed to failure unless the PM has strong negotiating skills.
  • Suboptimization is a danger, as PMs hoard resources for their own project, thus harming other projects.

Statement of Work (SOW)

A statement of work (SOW) is a formal document that captures and defines the work activities, deliverables and timeline a vendor will execute against in performance of specified work for a client. Detailed requirements and pricing are usually included in the Statement of Work, along with standard regulatory and governance terms and conditions.

There are many formats and styles of Statement of Work document templates. Many companies create their own customized version of SOWs for use within their industry or vertical those have been either specialized or generalized to accommodate the typical request and proposals they receive.

Areas that are typically addressed by a SOW are as follows:

  • Purpose: Why are we doing this project? This is the question that the purpose statement attempts to answer.
  • Scope of Work: This describes roughly the work to be done in detail and specifies the hardware and software involved and the exact nature of the work to be done.
  • Work: This describes where the work is to be performed. This also specifies the location of hardware and software and where people will meet to perform the work.
  • Period of Performance: This specifies the allowable time for projects, such as start and finish time, number of hours that can be billed per week or month, where work is to be performed and anything else that relates to scheduling.
  • Deliverables Schedule: This part lists the specific deliverables, describing what is due and when.
  • Applicable Standards: This describes any industry specific standards that need to be adhered to in fulfilling the contract.
  • Acceptance Criteria: This specifies how the buyer or receiver of goods will determine if the product or service is acceptable, what objective criteria will be used to state the work is acceptable.
  • Special Requirements: This specifies any special hardware or software, specialized workforce requirements, such as degrees or certifications for personnel, travel requirements, and anything else not covered in the contract specifics.
  • Type of Contract/Payment Schedule: The project acceptance will depend on if the budget available will be enough to cover the work required. Therefore payments breakdown whether up front or phased will be negotiated very early at this stage.
  • Miscellaneous: There are many items that do not form part of the main negotiations but are nonetheless very important to the project. They seem minor but being overlooked or forgotten could pose problems for the project.

Work Breakdown Structure (WBS)

The work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages. Completion of one or more work packages results in the completion of a subtask; completion of one or more subtasks results in the completion of a task; and finally, the completion of all tasks is required to complete the project.

The WBS is important in organizing a project because it breaks the project down into manageable pieces. The number of levels will vary depending on the project. How many levels to use depend on the following:

  • The level at which a single individual or organization can be assigned responsibility and accountability for accomplishing the work package.
  • The level at which budget and cost data will be collected during the project.

Task, Subtask, and Work package

Task:

A task is a further subdivision of a project. It is usually not longer than several months in duration and is perform by one group or organization.

A subtask:

A subtask may be used if needed to further subdivide the project into more meaningful pieces.

Work Package:

A work package is a group of activities combined to be assignable to a single organizational unit. It still falls into the format of all project management; the package provides a description of what is to be done, when it is to be started and completed, the budget, measures of performance, and specific events to be reached at points in time. These specific events are called project milestones.

Typically milestones might be the completion of the design, the production of a prototype, the completed testing of the prototype, and the approval of a pilot run.

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