One of the first requirements of the project startup phase is to develop the organizational chart for the project and determine its relationship to the parent organizational structure.
Figure 4–8 shows, in abbreviated form, the six major programs at Dalton Corporation. Our concern is with the Midas Program. Although the Midas Program may have the lowest pri- ority of the six programs, it is placed at the top, and in boldface, to give the impression that it is the top priority. This type of representation usually makes the client or customer feel that his program is important to the contractor.
The employees shown in Figure 4–8 may be part-time or full-time, depending upon the project’s requirements. Perturbations on Figure 4–8 might include one employee’s name
VICE PRESIDENT AND GENERAL MANAGER
RICHARD GREEN
PROGRAM MANAGEMENT ARTHUR LENZ DIRECTOR
ENGINEERING MANAGEMENT DR. HENRY WICKS
DIRECTOR
OPERATIONS MANAGEMENT STEVEN KRANSKY
DIRECTOR
MIDAS PROGRAM PAUL JONES
MIDAS PROGRAM AL TANDY
MIDAS PROGRAM DON DAVIS
AXLE PROGRAM LES WHITE
AXLE PROGRAM DR. MAX MOY
AXLE PROGRAM AL BLACK
LEX PROGRAM GEORGE MAY
LEX PROGRAM LEE ABLE
LEX PROGRAM SID JONES
UMB PROGRAM JOHN TURNER
UMB PROGRAM RICHARD LORD
UMB PROGRAM ALEX CORD
TALON PROGRAM FRED DARK
TALON PROGRAM LON CHANK
TALON PROGRAM PAUL STERNS
MM PROGRAM RALPH DAVIS
MM PROGRAM FRED BERN
MM PROGRAM LOU BLUHM
FIGURE 4–8. Dalton Corporation.
The Project Organizational Chart 177
DIRECTOR ENGINEERING
DIRECTOR PROGRAM MANAGEMENT
PAUL JONES MIDAS PROGRAM
MANAGER
ED WHITE ENG DESIGN
LOU PEARLY ENG TESTING
FERD CAIN PROJECT ENG
ANDY LINK Q.A.
JOHN ROYAL MANU. ENG
REX WHITE PRODUCTION
REPORTING LEGEND
ERNIE JONES COST ACCT
JEAN FLOOD CONTRACTS
TED BLACK SCHEDULES DIRECT
INDIRECT
DIRECTOR OPERATIONS
AL TANDY CHIEF ENGINEER
DON DAVIS CHIEF OPERATIONS
FIGURE 4–9. Midas Program office.
FIGURE 4–10. Typical project team organization. Source:F. A. Hollenbach and D. P. Schultz, “The Organization and Controls of Project Management,” Project Management Institute Inc.,Realities in Project Management: Proceedings of the 8th Annual Seminars and Symposium,Chicago, Illinois (1977). All rights reserved. Materials from this publication have been reproduced with the permis- sion of PMI. Unauthorized reproduction of this material is strictly prohibited.
[Image not available in this electronic edition.]
identified on two or more vertical positions (i.e., the project engineer on two projects) or the same name in two horizontal boxes (i.e., for a small project, the same person could be the project manager and project engineer). Remember, this type of chart is for the customer’s benefit and may not show the true “dotted/solid” reporting relationships in the company.
The next step is to show the program office structure, as illustrated in Figure 4–9. Note that the chief of operations and the chief engineer have dual reporting responsibility; they report directly to the program manager and indirectly to the directors. Again, this may be just for the customer’s benefit with the real reporting structure being reversed. Beneath the chief engineer, there are three positions. Although these positions appear as solid lines, they might actually be dotted lines. For example, Ed White might be working only part- time on the Midas Program but is still shown on the chart as a permanent program office member. Jean Flood, under contracts, might be spending only ten hours per week on the Midas Program.
FERD CAIN CHIEF PROJECT
ENGINEER
FRED TAYLOR PROJECT ENG.
RUBBER
TONY PALO PH.D.
PROJECT ENG.
ADHESIVES
TED FLYNN PH.D.
PROJECT ENG.
STRUCTURES
ED MAPLE PROJECT ENG.
THERMODYNAMIC
LOU HAZEL PH.D.
PROJECT ENG.
CONFIGURATION
EXPERTISE:
EXPERTISE:
EXPERTISE:
EXPERTISE:
EXPERTISE:
EXPERTISE:
PERCENT TIME ON PROGRAM
PERCENT TIME ON PROGRAM
PERCENT TIME ON PROGRAM
PERCENT TIME ON PROGRAM
PERCENT TIME ON PROGRAM
0 20 40 60 80 100
0 20 40 60 80 100
0 20 40 60 80 100
0 20 40 60 80 100
0 20 40 60 80 100
PERCENT TIME ON PROGRAM
0 20 40 60 80 100
FIGURE 4–11. Project engineering department manning for the Midas Program.
If the function of two positions on the organizational chart takes place at different times, then both positions may be shown as manned by the same person. For example, Ed White may have his name under both engineering design and engineering testing if the two activities are far enough apart that he can perform them independently.
The people shown in the project office organizational chart, whether full-time or part- time, may not be physically sitting in the project office. For full-time, long-term assignments, as in construction projects, the employees may be physically sitting side by side (see Figure 4–10), whereas for part-time assignments, it may be imperative for them to sit in their func- tional group. Remember, these types of charts may simply be eyewash for the customer.
Most customers realize that the top-quality personnel may be shared with other programs and projects. Project manning charts, such as the one shown in Figure 4–11, can be used for this purpose. These manning charts are also helpful in preparing the management volume of proposals to show the customer that key personnel will be readily available on his project.