Managing Engineering and

Technology

Sixth Edition, International

Edition

Morse and Babcock

© 2015 Pearson Education, Ltd. All rights reserved.
 Managing Engineering and Technology
Sixth Edition
Morse and Babcock

Project Organization,
Leadership, and Control

Chapter 15
© 2015 Pearson Education, Ltd. All rights reserved.
Managing Technology

Research

Design

Planning Production

Managing Production

Marketing

Project Managment

© 2015 Pearson Education, Ltd. All rights reserved.

Chapter Objectives
• Explain how the project is managed in the
different organization structures
• Describe some of characteristics of an
effective project manager
• Explain the importance of the team
• Explain the importance of
communications with the customer

© 2015 Pearson Education, Ltd. All rights reserved.

Modern Organizational
Forms

Increased Emphasis on Project

Management

© 2015 Pearson Education, Ltd. All rights reserved.

Elements of the Project
Organization
• Project Officer: “Unifying Agent”
bearing primary responsibility
– Project Manager
– Project Engineer
– Project Administrator

© 2015 Pearson Education, Ltd. All rights reserved.

Elements of Project
Organization
• Key Functional Support
– Systems Analysis
– Product Design and Analysis
– QA and Reliability
– Product Planning
– Product Installation and Test
– Training, Logistics Planning, and Field
Support
© 2015 Pearson Education, Ltd. All rights reserved.
Conducting Projects Within:
• The Functional Organization
– A Project Manager is appointed to
coordinate activities
• The PM has no line authority over most
project personnel
• Must lead by persuasion and influence

© 2015 Pearson Education, Ltd. All rights reserved.

Conducting Projects Within:

• The Project Organization

– The PM has direct control over all
elements needed to execute the
project

© 2015 Pearson Education, Ltd. All rights reserved.

Matrix Management
• Project personnel report to both
functional and project managers
• The Project Manager controls
– Project Tasks
– Project Resources
– Project Schedule
– AND is the focal point for customer contact,
project changes, and project
communication
© 2015 Pearson Education, Ltd. All rights reserved.
Matrix Management
• The Functional Manager is
responsible for:
– Assignment of functional specialists
– Quality of work done with the functional
specialty
– Selecting, evaluating, and rewarding
work within the specialty

© 2015 Pearson Education, Ltd. All rights reserved.

Project Team

Project Project

Project

© 2015 Pearson Education, Ltd. All rights reserved.

Effective Program Managers
• Need a blend of skills
– Technical
– Administrative
– Interpersonal

© 2015 Pearson Education, Ltd. All rights reserved.

Project Manager’s Scope
and Responsibility
• Sets project priorities relative to
other activities
• Primary point of contact for
customer
• Defines the work to be performed by
supporting departments in terms of
cost, schedule, and performance
• Controls the project budget
© 2015 Pearson Education, Ltd. All rights reserved.
Project Manager’s Scope
• Responsible for design reviews
• Responsible for configuration and
design control
• Responsible for source selection
decisions
• Responsible for project status reports
• Performs merit review of assigned
project personnel
© 2015 Pearson Education, Ltd. All rights reserved.
Characteristics Associated
with Success
• Commitment of parent organization,
project manager, and client to
– Schedules
– Budget
– Technical Performance
• Frequent Feedback
• Adequate Control
• Public Support
© 2015 Pearson Education, Ltd. All rights reserved.
Characteristics, cont.
• Reduced Bureaucratic Complexity (i.e. Red
Tape)
• Judicious use of planning and control tools
• “Projectized” Organization
• Participative decision making within the
team
• Project management skills
• Bottom Line
– Satisfied Customer
© 2015 Pearson Education, Ltd. All rights reserved.
Characteristics Associated
with Failure
• Inadequate project manager skills
• Poor customer coordination and rapport
• Poor rapport and coordination with own
organization
• Lack of Project Team participation
• Poor project control
• Lack of familiarity with project
requirements – lack of resources
• Poor public relations
© 2015 Pearson Education, Ltd. All rights reserved.
Types of Contracts
• Fixed-Price
–Firm Fixed-price
–Fixed-price with escalation
–Fixed-price, redeterminable
–Fixed-price, incentive

© 2015 Pearson Education, Ltd. All rights reserved.

Types of Contracts
• Cost Type
–Cost plus incentive fee
–Cost plus fixed-fee
–Time and materials

© 2015 Pearson Education, Ltd. All rights reserved.