UNIT-I

CONCEPT OF PROJECT
“A project in business and science is a collaborative enterprise,
frequently involving research or design, that is carefully planned to
achieve a particular aim.”

The word project comes from the Latin word projectum from the Latin
verb proicere, "to throw something forwards" which in turn comes from
pro-, which denotes something that precedes the action of the next part
of the word in time (paralleling the Greek πρό) and iacere, "to throw".
The word "project" thus actually originally meant "something that comes
before anything else happens".

Specific uses
School and university
At school and university, a project is a research assignment given to a
student which generally requires a larger amount of effort and more
independent work than is involved in a normal essay assignment. It
requires students to undertake their own fact-finding and analysis, either
from library/internet research or from gathering data empirically. The
written report that comes from the project is usually in the form of a
dissertation, which will contain sections on the project's inception,
methods of inquiry, analysis, findings and conclusions.[2]

Engineering project
The engineering project is a particular type of technological system,
embedded in the context of technological systems in general[3].
Engineering projects are, in many countries, specifically defined by
legislation, which requires that such projects should be carried out by
registered engineers and/or registered engineering companies. That is,
companies with license to carry out such works as design and
construction of buildings, power plants, industrial facilities, installation
and erection of electrical grid networks, transportation infrastructure and
the like.
The scope of the project is specified on a contract between the owner
and the engineering and construction parties. As a rule, an engineering
project is broken down into design and construction phases. The
outputs of the design process are drawings, calculations, and all other
design documentation necessary to carry out the next phase.

Examples of notable projects-

1) Human Genome Project which mapped the human genome
2) Manhattan Project, which developed the first nuclear weapon
3) Polaris missile project: an ICBM control-system
4) Project Apollo, which landed humans on the moon
5) Soviet atomic bomb project
6) Soviet manned lunar projects and programs

CATEGORIES OF PROJECTS
No Conclusions Can Be Drawn Concerning the Proposed Project Categories: Table 1, from the
2003 paper referenced earlier and used in the survey questionnaire, shows the proposed project
categories and sub-categories. These are based primarily on the nature of the end results to be produced
by each project. The survey objectives in this regard were to test the validity of this classification
method and to discover what, if any, other methods are in widespread use in various countries. The on-
line questionnaire enabled the responder to select one of five terms for each category and sub-category
name from a drop-down list that included these choices (within the country from which the responder
is reporting):
• Universally accepted and used
• Widely accepted and used
• Accepted and used by some practitioners
• Rarely accepted and used
• Never accepted and used.
Spaces for an alternative name and for comments and each item were also provided.
Because of the small number of responses from each country, ranging from 1 to a maximum of 7, it is
not possible to draw any valid conclusions regarding 1) how widespread the use is of the proposed
categories, 2) the
Project Categories: Examples
Each having similar life cycle phases and a unique
project management
process

1. Aerospace/Defense Projects
1.1 Defense systems New weapon system; major system upgrade.
1.2 Space Satellite development/launch; space station mod.
1.3 Military operations Task force invasion

2. Business & Organization Change Projects

2.1 Acquisition/Merger Acquire and integrate competing company.
2.2 Management process improvement Major improvement in project management.
2.3 New business venture Form and launch new company.
2.4 Organization re-structuring Consolidate divisions and downsize company.
2.5 Legal proceeding
3. Communication Systems Projects
3.1 Network communications systems Microwave communications network.
3.2 Switching communications systems 3rd generation wireless communication system.

4. Event Projects
 4.1 International events 2004 Summer Olympics; 2006 World Cup Match.
4.2 National events 2005 U. S. Super Bowl; 2004 Political Conventions.

5. Facilities Projects
5.1 Facility decommissioning Closure of nuclear power station.
5.2 Facility demolition Demolition of high rise building.
5.3 Facility maintenance and modification Process plant maintenance turnaround.
5.4 Facility design/procurement/construction Conversion of plant for new products/markets.
Civil Flood control dam; highway interchange.
Energy New gas-fired power generation plant; pipeline.
Environmental Chemical waste cleanup.
High rise 40 story office building.
Industrial New manufacturing plant.
Commercial New shopping center; office building.
Residential New housing sub-division.
Ships New tanker, container, or passenger ship

6. Information Systems (Software) Projects New project management information system.

(Information system hardware is considered to be in the
product development category.)

7. International Development Projects

7.1 Agriculture/rural development People and process intensive projects
7.2 Education in developing countries funded by The World Bank,
7.3 Health regional development banks, US AID, UNIDO, other UN,
7.4 Nutrition and government agencies; and
7.5 Population Capital/civil works intensive projects—
7.6 Small-scale enterprise often somewhat different from 5. Facility Projects as they
7.7 Infrastructure: energy (oil, gas, coal, power may include, as part of the project, creating an
generation and distribution), industrial, organizational entity to operate and maintain the facility,
telecommunications, transportation, urbanization, and lending agencies impose their project life cycle and
water supply and sewage, irrigation) reporting requirements.

8. Media & Entertainment Projects

8.1 Motion picture New motion picture (film or digital).
8.2 TV segment New TV episode.
8.2 Live play or music event New opera premiere
9. Product and Service Development Projects
9.1 Information technology hardware New desk-top computer.
9.2 Industrial product/process New earth-moving machine.
9.3 Consumer product/process New automobile, new food product.
9.4 Pharmaceutical product/process New cholesterol-lowering drug.
9.5 Service (financial, other) New life insurance/annuity offering.

10. Research and Development Projects

10.1 Environmental Measure changes in the ozone layer.
10.2 Industrial How to reduce pollutant emission.
10.3 Economic development Determine best crop for sub-Sahara Africa.
10.4 Medical Test new treatment for breast cancer.
10.5 Scientific Determine the possibility of life on Mars.

PROJECT DEVELOPMENT CYCLE

It is important to keep in mind that good projects don’t happen by accident.
There are many steps along the way that help to ensure a quality
presentation.

Step 1—Define the project: This initial step involves determining the
boundaries of the project as well as identifying how the project relates to the
overall curriculum. One should be encouraged to select topics that are neither
too broad nor too narrow in focus.
Step 2—Locate resources: In this phase, identification of the traditional
and unconventional sources of information about the project takes place.
These may include resource CDs, Web sites, encyclopedias, magazines,
journals, video tapes, audio tapes, and books.
Step 3—Organize resources: Once resources have been collected, project
management team will need to spend some time selecting the notes, data,
computer files, and Web links they will include in their project. It is important to
guide students to select project resources based on the informational value
they will add, and not simply because they are glitzy or look cool.
Step 4—Design the project: At this point, students are ready to produce a
storyboard or flowchart of their project. They can create an outline, draw a
diagram, or use a software program such as Inspiration to organize their
ideas.
Step 5—Develop the project: In this step, students will design their project
using digital media tools such as video, sound, graphics, text, and animation.
Step 6—Present the project: This phase of the project is very important,
but is often overlooked. Students take great pride in projects they create.
Therefore, it is important that they be allowed to present their project to
audiences such as their class, their family, or other members of the
community.
Step 7—Revise the project: Based on the feedback received from
instructors and peers, students will review their project and make changes to
improve it. In the process, students will understand how successful they were
in communicating with their audience.
Step 8—Implement the project: In this final step implementation of the
project work takes place.
 PROJECT DEVELOPMENT CYCLE

TYPICAL DEVELOPMENT PHASES OF AN ENNGINEERING

PROJECT

CONCEPT OF PROJECT MANAGEMENT:

Project management is the discipline of planning, organizing, securing
and managing resources to bring about the successful completion of
specific project goals and objectives. It is sometimes conflated with
program management, however technically that is actually a higher
level construction: a group of related and somehow interdependent
engineering projects.
A project is a temporary endeavor, having a defined beginning and end
(usually constrained by date, but can be by funding or deliverables),[1]
undertaken to meet unique goals and objectives,[2] usually to bring
about beneficial change or added value. The temporary nature of
projects stands in contrast to business as usual (or operations),[3] which
are repetitive, permanent or semi-permanent functional work to produce
products or services. In practice, the management of these two systems
is often found to be quite different, and as such requires the
development of distinct technical skills and the adoption of separate
management.

The primary challenge of project management is:

1) To achieve all of the engineering project goals and

2) Objectives while honoring the preconceived project constraints.

Typical constraints are i)scope, ii) time, and iii) budget.

The secondary—and more ambitious—challenge is:

1) To optimize the allocation

2) integration of inputs necessary to meet pre-defined objectives.

Project management has been practiced since early civilization. Until

1900 civil engineering projects were generally managed by creative
architects and engineers themselves, among those for example
Vitruvius (1st century BC), Christopher Wren (1632–1723) , Thomas
Telford (1757–1834) and Isambard Kingdom Brunel (1806–1859).[6] It
was in the 1950s that organizations started to systematically apply
project management tools and techniques to complex engineering
projects.[7]
As a discipline, Project Management developed from several fields of
application including civil construction, engineering, and heavy
defense activity.[8] Two forefathers of project management are Henry
Gantt, called the father of planning and control techniques,[9] who is
famous for his use of the Gantt chart as a project management tool;
and Henri Fayol for his creation of the 5 management functions which
form the foundation of the body of knowledge associated with project
and program management.[10] Both Gantt and Fayol were students of
Frederick Winslow Taylor's theories of scientific management. His
work is the forerunner to modern project management tools including
work breakdown structure (WBS) and resource allocation.
Processes
Traditionally, project management includes a number of elements: four
to five process groups, and a control system. Regardless of the
methodology or terminology used, the same basic project management
processes will be used.

The project development stages:

Major process groups generally include:

1) Initiation
2) Planning or development
3) Production or execution
4) Monitoring and controlling
5) Closing
In project environments with a significant exploratory element
(e.g.)Research and development), these stages may be
supplemented with decision points (go/no go decisions) at which
the project's continuation is debated and decided. An example is
the Stage-Gate model
Initiation

Initiating Process Group Processes[19]

The initiation processes determine the nature and scope of the
project[21]. If this stage is not performed well, it is unlikely that the
project will be successful in meeting the business’ needs. The key
project controls needed here are an understanding of the business
environment and making sure that all necessary controls are
incorporated into the project. Any deficiencies should be reported and a
recommendation should be made to fix them.
The initiation stage should include a plan that encompasses the
following areas:
Analyzing the business needs/requirements in measurable goals
Reviewing of the current operations
Financial analysis of the costs and benefits including a budget
Stakeholder analysis, including users, and support personnel for the
project
Project charter including costs, tasks, deliverables, and schedule
Planning and design

Planning Process Group Activities[19]

After the initiation stage, the project is planned to an appropriate level of
detail. The main purpose is to plan time, cost and resources adequately
to estimate the work needed and to effectively manage risk during
project execution. As with the Initiation process group, a failure to
adequately plan greatly reduces the project's chances of successfully
accomplishing its goals.
Project planning generally consists of[22]
Determining how to plan (e.g. by level of detail or rolling wave);
Developing the scope statement;
Selecting the planning team;
Identifying deliverables and creating the work breakdown structure;
Identifying the activities needed to complete those deliverables and
networking the activities in their logical sequence;
Estimating the resource requirements for the activities;
Estimating time and cost for activities;
Developing the schedule;
Developing the budget;
Risk planning;
Gaining formal approval to begin work.
Additional processes, such as planning for communications and for
scope management, identifying roles and responsibilities, determining
what to purchase for the project and holding a kick-off meeting are also
generally advisable.
For new product development projects, conceptual design of the
operation of the final product may be performed concurrent with the
project planning activities, and may help to inform the planning team
when identifying deliverables and planning activities.

Executing

Executing Process Group Processes[19]

Executing consists of the processes used to complete the work defined
in the project management plan to accomplish the project's
requirements. Execution process involves coordinating people and
resources, as well as integrating and performing the activities of the
project in accordance with the project management plan. The
deliverables are produced as outputs from the processes performed as
defined in the project management plan.

Monitoring and controlling

Monitoring and controlling consists of those processes performed to
observe project execution so that potential problems can be identified in
a timely manner and corrective action can be taken, when necessary, to
control the execution of the project. The key benefit is that project
performance is observed and measured regularly to identify variances
from the project management plan.

Monitoring and Controlling Process Group Processes[19]

Monitoring and Controlling includes:[23]
Measuring the ongoing project activities ('where we are');
Monitoring the project variables (cost, effort, scope, etc.) against the
project management plan and the project performance baseline
(where we should be);
Identify corrective actions to address issues and risks properly (How
can we get on track again);
Influencing the factors that could circumvent integrated change control
so only approved changes are implemented
In multi-phase projects, the monitoring and control process also
provides feedback between project phases, in order to implement
corrective or preventive actions to bring the project into compliance with
the project management plan.
Project Maintenance is an ongoing process, and it includes:[20]
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycle
In this stage, auditors should pay attention to how effectively and
quickly user problems are resolved.
Over the course of any construction project, the work scope may
change. Change is a normal and expected part of the construction
process. Changes can be the result of necessary design modifications,
differing site conditions, material availability, contractor-requested
changes, value engineering and impacts from third parties, to name a
few. Beyond executing the change in the field, the change normally
needs to be documented to show what was actually constructed. This is
referred to as Change Management. Hence, the owner usually requires
a final record to show all changes or, more specifically, any change that
modifies the tangible portions of the finished work. The record is made
on the contract documents – usually, but not necessarily limited to, the
design drawings. The end product of this effort is what the industry
terms as-built drawings, or more simply, “as built.” The requirement for
providing them is a norm in construction contracts.
When changes are introduced to the project, the viability of the project
has to be re-assessed. It is important not to lose sight of the initial goals
and targets of the projects. When the changes accumulate, the
forecasted result may not justify the original proposed investment in the
project.

Closing

Closing Process Group Processes.[19]

Closing includes the formal acceptance of the project and the ending
thereof. Administrative activities include the archiving of the files and
documenting lessons learned.
This phase consists of:[20]
 Project close: Finalize all activities across all of the process groups
to formally close the project or a project phase
Contract closure: Complete and settle each contract (including the
resolution of any open items) and close each contract applicable
to the project or project phase.

TOOLS AND TECHNIQUES OF PROJECT

MANAGEMENT

Here are examples and explanations of four commonly used

tools in project planning and project management, namely:
Brainstorming, Fishbone Diagrams, Critical Path Analysis Flow
Diagrams, and Gantt Charts. Additionally and separately see
business process modelling and quality management, which
contain related tools and methods aside from the main project
management models shown below.

The tools here each have their strengths and particular purposes,
summarised as a basic guide in the matrix below.

Matrix key:

B = BrainstormingF = Fishbone/Ishikawa DiagramsC = Critical

Path Analysis Flow DiagramsG = Gantt Charts *** - m
** - op
* - som
BF C

*
Project brainstorming and initial concepts, ideas, structures, *
*
aims, etc *
*

Gathering and identifying all elements, especially causal and ** *

hidden factors * *
 *

*
Scheduling and timescales
*

*
Identifying and sequencing parallel and interdependent
* *
activities and stages
*

*
Financials - costings, budgets, revenues, profits, variances, etc **
*

*
Monitoring, forecasting, reporting *
*

*
Troubleshooting, problem identification, diagnosis and * *
*
solutions * *
*

*
*
'Snapshot' or 'map' overview - non-sequential, non-scheduled *
*
*

Format for communications, presentations, updates, progress

* *
reports, etc

brainstorming
Brainstorming is usually the first crucial creative stage of the
project management and project planning process. See the
brainstorming method in detail and explained separately,
because it many other useful applications outside of project
management.

Unlike most project management skills and methods, the first

stages of the brainstorming process is ideally a free-thinking and
random technique. Consequently it can be overlooked or under-
utilized because it not a natural approach for many people
whose mains strengths are in systems and processes.
Consequently this stage of the project planning process can
benefit from being facilitated by a team member able to manage
such a session, specifically to help very organised people to
think randomly and creatively.

fishbone diagrams
Fishbone diagrams are chiefly used in quality management
fault-detection, and in business process improvement, especially
in manufacturing and production, but the model is also very
useful in project management planning and task management
generally.

Within project management fishbone diagrams are useful for

early planning, notably when gathering and organising factors,
for example during brainstorming.

Fishbone diagrams are very good for identifying hidden factors

which can be significant in enabling larger activities, resources
areas, or parts of a process.

Fishbone diagrams are not good for scheduling or showing

interdependent time-critical factors.

Fishbone diagrams are also called 'cause and effect diagrams'

and Ishikawa diagrams, after Kaoru Ishikawa (1915-89), a
Japanese professor specialising in industrial quality
management and engineering who devised the technique in the
1960s.

Ishikawa's diagram became known as a fishbone diagram,

obviously, because it looks like a fishbone:
The diagram above is a very simple one. Typically fishbone
diagrams have six or more main bones feeding into the spine.
Other main category factors can include Environment,
Management, Systems, Training, Legal, etc.

The categories used in a fishbone diagram should be whatever

makes sense for the project. Various standard category sets exist
for different industrial applications, however it is important that
your chosen structure is right for your own situation, rather than
taking a standard set of category headings and hoping that it fits.

At a simple level the fishbone diagram is a very effective

planning model and tool - especially for 'mapping' an entire
operation.

Where a fishbone diagram is used for project planning of course

the 'Effect' is shown as an aim or outcome or result, not a
problem.

The 'Problem' term is used in fault diagnosis and in quality

management problem-solving. Some fishbone diagrams can
become very complex indeed, which is common in specialised
quality management areas, especially where systems are
computerised.

This model, and the critical path analysis diagram are similar to
the even more complex diagrams used on business process
modelling within areas of business planning and and business
process improvement.

project critical path analysis (flow

diagram or chart)
'Critical Path Analysis' sounds very complicated, but it's a very
logical and effective method for planning and managing
complex projects. A critical path analysis is normally shown as
a flow diagram, whose format is linear (organised in a line), and
specifically a time-line.

Critical Path Analysis is also called Critical Path Method - it's

the same thing - and the terms are commonly abbreviated, to
CPA and CPM.

A commonly used tool within Critical Path Analysis is PERT

(Program/Programme/Project Evaluation and Review
Technique) which is a specialised method for identifying related
and interdependent activities and events, especially where a big
project may contain hundreds or thousands of connected
elements. PERT is not normally relevant in simple projects, but
any project of considerable size and complexity, particularly
when timings and interdependency issues are crucial, can
benefit from the detailed analysis enabled by PERT methods.
PERT analysis commonly feeds into Critical Path Analysis and
to other broader project management systems, such as those
mentioned here.
Critical Path Analysis flow diagrams are very good for showing
interdependent factors whose timings overlap or coincide. They
also enable a plan to be scheduled according to a timescale.
Critical Path Analysis flow diagrams also enable costings and
budgeting, although not quite as easily as Gantt charts (below),
and they also help planners to identify causal elements, although
not quite so easily as fishbone diagrams (below).

This is how to create a Critical Path Analysis. As an example,

the project is a simple one - making a fried breakfast.

First note down all the issues (resources and activities in a rough
order), again for example:

Assemble crockery and utensils, assemble ingredients, prepare

equipment, make toast, fry sausages and eggs, grill bacon and
tomatoes, lay table, warm plates, serve.

Note that some of these activities must happen in parallel - and

crucially they are interdependent. That is to say, if you tried to
make a fried breakfast by doing one task at a time, and one after
the other, things would go wrong. Certain tasks must be started
before others, and certain tasks must be completed in order for
others to begin. The plates need to be warming while other
activities are going on. The toast needs to be toasting while the
sausages are frying, and at the same time the bacon and sausages
are under the grill. The eggs need to be fried last. A Critical Path
Analysis is a diagrammatical representation of what needs done
and when. Timescales and costs can be applied to each activity
and resource. Here's the Critical Path Analysis for making a
fried breakfast:

This Critical Path Analysis example below shows just a few

activities over a few minutes. Normal business projects would
see the analysis extending several times wider than this
example, and the time line would be based on weeks or months.
It is possible to use MS Excel or a similar spreadsheet to create
a Critical Path Analysis, which allows financial totals and time
totals to be planned and tracked. Various specialised project
management software enable the same thing. Beware however
of spending weeks on the intricacies of computer modelling,
when in the early stages especially, a carefully hand drawn
diagram - which requires no computer training at all - can put
90% of the thinking and structure in place. (See the details about
the most incredible planning and communications tool ever
invented, and available for just a tiny fraction of the price of all
the alternatives.)

project critical path analysis flow

diagram example
gantt charts
Gantt Charts (commonly wrongly called gant charts) are
extremely useful project management tools. The Gantt Chart is
named after US engineer and consultant Henry Gantt (1861-
1919) who devised the technique in the 1910s.

Gantt charts are excellent models for scheduling and for

budgeting, and for reporting and presenting and communicating
project plans and progress easily and quickly, but as a rule Gantt
Charts are not as good as a Critical Path Analysis Flow Diagram
for identifying and showing interdependent factors, or for
'mapping' a plan from and/or into all of its detailed causal or
contributing elements.

You can construct a Gantt Chart using MSExcel or a similar

spreadsheet. Every activity has a separate line. Create a time-
line for the duration of the project (the breakfast example shows
minutes, but normally you would use weeks, or for very big
long-term projects, months). You can colour code the time
blocks to denote type of activity (for example, intense, watching
brief, directly managed, delegated and left-to-run, etc.) You can
schedule review and insert break points. At the end of each line
you can show as many cost columns for the activities as you
need. The breakfast example shows just the capital cost of the
consumable items and a revenue cost for labour and fuel. A
Gantt chart like this can be used to keep track of progress for
each activity and how the costs are running. You can move the
time blocks around to report on actuals versus planned, and to
re-schedule, and to create new plan updates. Costs columns can
show plan and actuals and variances, and calculate whatever
totals, averages, ratios, etc., that you need. Gantt Charts are
probably the most flexible and useful of all project management
tools, but remember they do not very easily or obviously show
the importance and inter-dependence of related parallel
activities, and they won't obviously show the necessity to
complete one task before another can begin, as a Critical Path
Analysis will do, so you may need both tools, especially at the
planning stage, and almost certainly for large complex projects.

gantt chart example

A wide range of computerised systems/software now exists for
project management and planning, and new methods continue to
be developed. It is an area of high innovation, with lots of scope
for improvement and development. I welcome suggestions of
particularly good systems, especially if inexpensive or free.
Many organizations develop or specify particular computerised
tools, so it's a good idea to seek local relevant advice and
examples of best practice before deciding the best computerised
project management system(s) for your own situation.

Project planning tools naturally become used also for

subsequent project reporting, presentations, etc., and you will
make life easier for everyone if you use formats that people
recognize and find familiar.
PROJECT ORGANIZATION TYPES:

The way projects are structured is directly related to the way the entire
organization is structured. There are three major organization structures
to manage work and people.

Functionally Based

In a functional organization, a project team is staffed with people from

the same department. All the resources needed for the project team
come from the functional organization. For instance, if the project is
related to the finance function, the project resources come from the
Finance Division. If you need IT, finance and legal resources, they
would all be available from within the Finance Division.
A second way that a project is staffed in a functional organization is by
executing portions of a project in one functional organization at a time.
For example, let’s say that a large project needed resources from the
Finance, Purchasing, IT and Manufacturing departments. In a functional
organization, the project would be broken down by organizational unit
and each unit would do its own part relatively independently. The IT
Department would work on its piece. The Finance Department would
work on its piece. The Manufacturing and Purchasing Departments
would work on its pieces. At the end, all of the independent solutions
would be integrated into one final solution.
The biggest advantage of functionally based projects is that there is
usually clear authority, since the project managers tend to also be the
functional managers. You also do not need to negotiate with other
organizations for resources, since all of the staff needed for your project
will come from the same functional organization. Other advantages of
this organization are that the team members are usually familiar with
each other, since they all work in the same area. The team members
also tend to bring applicable business knowledge of the project.
A major disadvantage of the functional organization is that your
functional area may not have all of the specialists needed to work on a
project. A Finance project with an IT component, for instance, may have
difficulty acquiring specialty IT resources such as Database
Administrators, since the only people available will work in their own
functional department. Another disadvantage is that project team
members may have other responsibilities in the functional organization
since they may not be needed full-time on a project. They may be
assigned to other projects, but it is more typical that they would have
support responsibilities that could impact their ability to meet project
deadlines.

Project Based

When projects are large enough, it’s possible to form functional

departments within the project team. This is especially practical when a
large program has hundreds of people assigned over a long period of
time. Advantages include clear authority, since the project manager is
also the functional manager, and a clear focus, since everyone on the
team has only the project for his primary responsibility.
One disadvantage is duplication of resources, since scarce resources
must be duplicated on different projects. For instance, a large project
may have its own Human Resources staff, which could duplicate a
central Human Resources Department. There can also be concerns
about how to reallocate people and resources when projects are
completed. In a functional organization, the people still have jobs within
the functional department. In a project-based organization it is not so
clear where everyone is reassigned when the project is completed.

Matrix Based

Matrix organizations allow functional departments to focus on their

specific business competencies and allow projects to be staffed with
specialists from throughout the organization. For instance, Database
Administrators may all report to one functional department, but would be
allocated out to work on various projects in other departments. A Legal
resource might report to the Legal Department, but be assigned to a
project in another department that needs legal expertise. It is common
for people to report to one person in the functional organization, while
working for one or two project managers from other departments.
The main advantage of the matrix organization is the efficient allocation
of all resources, especially scarce specialty skills that cannot be fully
utilized by only one project. For instance, data modeling specialists may
not be utilized full-time on a project, but can be fully leveraged by
working on multiple projects. The matrix-based organization is also the
most flexible when dealing with changing business needs and priorities.
The main disadvantage is that the reporting relationships are complex.
Some people might report to functional manager for whom little work is
done, while actually working for one or more project managers. It
becomes more important for staff members to develop strong time
management skills to ensure that they fulfill the work expectations of
multiple managers. This organization also requires communication and
cooperation between multiple functional and project managers that all
need time from the same resources.

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