College of Administrative and Financial Sciences
Assignment 1
Deadline: 29/02/2020 @ 23:59
Course Name: Cost accounting
Students Name:
Course Code: ACCT 301
Students ID Number:
Semester: 2
CRN:
Academic Year: 1440/1441 H
For Instructors Use only
Instructors Name:
Students Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions PLEASE
READ THEM CAREFULLY
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Page 1 of 4
Q1.
Analyze some examples of relevant and irrelevant Cash Flows for one Saudi Company?
(1.5 Marks)
Q 2 a – Discuss why managers estimate a cost function and use Cost volume Profit analysis?
Give numerical example of cost function and Cost Volume Profit Analysis and analyze how it will
be used by managers?
b- Suppose actual costs are higher than estimated cost. Analyze why you may have this
difference between actual and estimated costs?
(1.5 Marks)
Page 2 of 4
Q 3 Altawfik Corporation is estimating the cost function for total cost of production of
product A using the two points method. The data collected for the past year is as following:
Quarter
Number of units
Total
produced
Costs
1
4,000
$ 1,000
2
5,400
1,280
3
7,000
1,600
4
9,000
2,000
Using the two points methods, choose two points with which you estimate the cost
function.
(1 Mark)
Page 3 of 4
Q 4 Give one example of Saudi companies using job costing and one example of Saudi
companies using process costing and discuss the difference between them?
(1 Mark)
Page 4 of 4
Project Management: A
Systems Approach To
Planning, Scheduling and
th
Controlling (11 Edition)
By
Harold Kerzner, Ph.D.
Chapter One
Overview
OVERVIEW OF PROJECT
MANAGEMENT
RESOURCES
PERFORMANCE/TECHNOLOGY
Project Characteristics
?Have a specific objective (which may be
unique or one-of-a-kind) to be completed
within certain specifications
?Have defined start and end dates
?Have funding limits (if applicable)
?Consume human and nonhuman
resources (i.e., money, people,
equipment)
?Be multifunctional (cut across several
functional lines)
Project Management
?Project Planning
? Definition of work requirements
? Definition of quantity and quality of work
? Definition of resources needed
?Project monitoring
Tracking progress
Comparing actual outcome to predicted
outcome
Analyzing impact
Making adjustments
PROJECT MANAGEMENT IS THE
ART OF CREATING THE
ILLUSION THAT ANY OUTCOME
IS THE RESULT OF A SERIES OF
PREDETERMINED, DELIBERATE
ACTS WHEN IN FACT IT WAS
DUMB LUCK !
Multiple Boss Reporting
GM
SPONSOR
PM
LM
APM
APM
PM = Project Manager
APM = Assistant Project Manager
LM = Line or Functional Manager
LM
LM
WHY USE PROJECT MANAGEMENT ?
?Project Management and
productivity are related!
MATURITY IN PROJECT
MANAGEMENT IS LIKE A THREE LEGGED STOOL.
THE LEGS REPRESENT THE:
?Project Manager
?Line Manager(s)
?Executive Management (i.e… Project Sponsor)
Maturity cannot exist without stability
The Three-Legged Stool
Senior
Management
(I.e. Sponsor)
Project
Manager
Line
Management
TOP OF THE THREE – LEGGED STOOL
ORGANIZATIONAL
STRUCTURE
ORGANIZATIONAL
BEHAVIOR
TOOLS &
TECHNIQUES
Critical Questions
?How important is Project
Management training ?
?Part-time Project Management – is it
good or bad ?
Role Of The
Project Manager
Negotiating For
Resources
The Project Kickoff
Meeting
Establishing The
Projects Policies
and Procedures
Laying Out The
Project
Workflow And
Plan
Establishing
Performance
Targets
Obtaining
Funding
Executing
The Plan
Acting As The
Conductor
Putting Out
Fires
Counseling And
Facilitation
Encouraging The
Team To Focus
On Deadlines
Monitoring
Progress By
Pounding The
Pavement
Evaluating
Performance
Develop
Contingency
Plans
Briefing The
Project Sponsor
Briefing
The Team
Briefing The
Customer
Closing Out
The Project
Why is a Project Management
System Necessary?
Project Management
Resources
Benefits
?Identification of functional responsibilities
to ensure that all activities are accounted
for, regardless of personnel turnover.
?Minimizing the need for continuous
improvement
?Identification of time limits for scheduling
?Identification of a methodology for tradeoff analysis
?Measurement of accomplishment against
plans
Benefits (continued)
?Early identification of problems so that
corrective action may follow
?Improved estimating capability for future
planning
?Knowing when objectives cannot be met
or will be exceeded
Obstacles
?Project complexity
?Customers special requirements and
scope changes
?Organizational restructuring
?Project risks
?Changes in technology
?Forward planning and pricing
Humor
?Project management is the art of
creating the illusion that any
outcome is the result of a series
of predetermined, deliberate
acts when, in fact, it was dumb
luck.
Classical Management
?Planning
?Organizing
?Staffing
?Controlling
?Directing
Which of the above is Usually NOT
performed by the project manager?
Resources
?Money
?Manpower
?Equipment
?Facilities
?Materials
?Information/technology
Successful Culture
?A good daily working relationship
between the project manager and those
line managers who directly assign
resources to projects
?The ability of functional employees to
report vertically to their line manager at
the same time they report horizontally to
one or more project managers
Interface Management
? Managing human interrelationships within the
project team
? Managing human interrelationships between the
project team and the functional organization
? Managing human interrelationships between the
project team and senior management
? Managing human interrelationships between the
project team and the customers organization,
whether an internal or external organization
As part of interface
management, the project
managers role also includes
integration management.
Integration Management
Resources
Integration
Management
Capital
Materials
Equipment
Inputs
Facilities
Information
Personnel
Integrated
Processes
Products
Services Outputs
Profits
The Functional Role
?The functional manager has the
responsibility to define how the task will
be done and where the task will be done
(i.e., the technical criteria)
?The functional manager has the
responsibility to provide sufficient
resources to accomplish the objective
within the projects constraints (i.e., who
will get the job done).
Functional Obstacles
?Unlimited work requests (especially
during competitive bidding)
?Predetermined deadlines
?All requests having a high priority
?Limited number of resources
?Limited availability of resources
?Unscheduled changes in the project plan
?Unpredicted lack of progress
Functional Obstacles
(continued)
?Unpredicted lack of progress
?Unplanned absence of resources
?Unplanned breakdown of resources
?Unplanned loss of resources
?Unplanned turnover of personnel
Most projects also have a
project sponsor which
may or may not reside at
the executive levels of
management.
The Project Sponsor Interface
Project Sponsor:
Senior Management
Priority Projects
Project Sponsor:
Lower/Middle Management
Maintenance Projects
Relationship:
Project
Manager
Project
Team
Project
Sponsor
Project
Manager
Objective Setting
Up-Front Planning
Project Organization
Key Staffing
Master Plan
Policies
Monitoring Execution
Priority-Setting
Conflict Resolution
Executive-Client Contact
Project Necessities
?Complete task definitions
?Resource requirement definitions (and
possibly skill levels needed)
?Major timetable milestones
?Definition of end-item quality and
reliability requirements
?The basis for performance measurement
Results of Good Planning
?Assurance that functional units will
understand their total responsibilities
toward achieving project needs.
?Assurance that problems resulting from
scheduling and allocation of critical
resources are known beforehand.
?Early identification of problems that may
jeopardize successful project completion
so that effective corrective action and
replanning can occur to prevent or
resolve problems.
Promises Made???
?Promotion
?Grade
?Salary
?Bonus
?Overtime
?Responsibility
?Future work assignments
Project Management in
Non-Project-Driven Groups
? Projects may be few and far between
? Not all projects have the same project
management requirements, and therefore they
cannot be managed identically. This difficulty
results from poor understanding of project
management and a reluctance of companies to
invest in proper training.
? Executives do not have sufficient time to manage
projects themselves, yet refuse to delegate
authority.
Project Management in NonProject-Driven Groups
(Continued)
? Projects tend to be delayed because approvals
most often follow the vertical chain of command.
As a result, project work stays too long in
functional departments.
? Because project staffing is on a local basis,
only a portion of the organization understands
project management and sees the system in
action.
? There exists heavy dependence on
subcontractors and outside agencies for project
management expertise.
High-level Reporting
? The project manager is charged with getting
results from the coordinated efforts of many
functions. He should, therefore, report to the
man who directs all those functions.
? The project manager must have adequate
organizational status to do his job effectively.
? To get adequate and timely assistance in solving
problems that inevitably appear in any important
project, the project manager needs direct and
specific access to an upper echelon of
management
High-level Reporting
(continued)
?The customer, particularly in a
competitive environment, will be
favorably impressed if his project
manager reports to a high organizational
echelon.
Low-level Reporting
?It is organizationally and operationally
inefficient to have too many projects,
especially small ones, diverting senior
executives from more vital concerns.
?Although giving a small project a high
place in the organization may create the
illusion of executive attention, its real
result is to foster executive neglect o f the
project.
?Placing a junior project manager too high
in the organization will alienate senior
functional executives on whom he must
rely for support.
THE TIP-OF-THE-ICEBERG SYNDROME
DELEGATION
OF AUTHORITY TO
PROJECT MANAGER
EXECUTIVE
MEDDLING
LACK OF UNDERSTANDING OF HOW PROJECT
MANAGEMENT SHOULD WORK
LACK OF TRAINING IN COMMUNICATIONS /
INTERPERSONAL SKILLS
MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL
SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS
Relative Influence
Project Vs. Functional Influences
Project Influence
in Decision-Making
Functional Influence
In Decision-Making
Dual Influence
Functional
Organization
Matrix
Organization
Project
Organization
Chapter Two
Project Management
Growth: Concepts and
Definitions
When to Use Project Management
Are the jobs complex?
Are there dynamic environmental
considerations?
Are the constraints tight?
Are there several activities to be
integrated?
Are there several functional boundaries to
be crossed?
The Need For Restructuring
Accomplish tasks that could not be
effectively handled by the traditional
structure
Accomplish onetime activities with
minimum disruption to routine business
Restructuring Problems
Project priorities and competition for
talent may interrupt the stability of the
organization and interfere with its longrange interests by upsetting the normal
business of the functional organization.
Long-range planning may suffer as the
company gets more involved in meeting
schedules and fulfilling the requirements
of temporary projects.
Restructuring Problems
(Continued)
Shifting people from the project to project
may disrupt the training of new
employees and specialists. This may
hinder their growth and development
within their fields of specialization.
Imperatives
The time span between project initiation
and completion appears to be increasing.
The capital committed to the project prior
to the use of the end item appears to be
increasing.
As technology increases, the commitment
of time and money appears to become
inflexible.
Imperatives (Continued)
Technology requires more and more
specialized manpower.
The inevitable counterpart of
specialization is organization.
The above five imperatives identify the
necessity for more effective planning,
scheduling, and control.
Obstacles
Unstable economy
Shortages
Soaring costs
Increased complexity
Heightened competition
Technological changes
Societal Concerns
Obstacles (Continued)
Consumerism
Ecology
Quality of work
Results of NOT
Controlling Obstacles
Decreased Profits
Increased manpower needs
Cost overruns, schedule delays, and
penalty occurring earlier and earlier
An inability to cope with new technology
R&D results too late to benefit existing
product lines
Temptation to make hasty decisions that
prove to be costly
Results of NOT
Controlling Obstacles
(Continued)
Management insisting on earlier and
greater return on investment
Greater difficulty in establishing on-target
objectives in real time
Problems in relating cost to technical
performance and scheduling during the
execution of the project
Project Management
Growth
Technology increasing at an astounding
rate
More money invested in R&D
More information available
Shortening of project life cycles
Early Reasons For Failure
There was no need for project
management.
Employees were not informed about how
project management should work.
Executives did not select the appropriate
projects or project managers for the first
few projects.
Early Reasons for Failure
(Continued)
There was no attempt to explain the effect
of the project management organizational
structure on the wage and salary
administration program.
Employees were not convinced that
executives were in total support of the
change (to project management).
Integrative Responsibility
Total accountability assumed by a single
person
Project rather than functional dedication
A requirement for coordination across
functional interfaces
Proper utilization of integral planning and
control
Advantages
Easy adaptation to an ever-changing
environment
Ability to handle a multidisciplinary activity
within a specified period of time
Horizontal as well as vertical work flow
Better orientation toward customer problems
Easier identification of activity responsibilities
A multidisciplinary decision-making process
Innovation in organizational design
Project Management Evolution
Biblical Project Management
Military Project Management
Space Exploration
Heavy Construction
Other
Life Cycle Phases for Project
Management Maturity
Embryonic
Line
Management
Acceptance
Executive
Management
Acceptance
Growth
Maturity
Life Cycle Phases for Level 2
Project Management Maturity
Embryonic
Recognize need Executive
Recognize
benefits
Recognize
Line
applications
Management
Acceptance
Management
Growth
Acceptance
Recognize what
must be done
Maturity
Life Cycle Phases for Level 2
Project Management Maturity
Executive
Management
Executive
Acceptance
Embryonic
Management
Visible executive
Acceptance
support
Line
Management
Acceptance
Executive
understanding of
project
management
Maturity
Growth
Project sponsorship
Willingness to change
way of doing business
Life Cycle Phases for Level 2
Project Management Maturity
Line Management
Acceptance
Line management
Embryonic
support
Line management
commitment
Executive
Management
Acceptance
Line management
education
Growth
Willingness to release
employees for project
management training
Maturity
Life Cycle Phases for Level 2
Project Management Maturity
Growth
Development of
a
Executive
methodology
Embryonic
Management
Use of life cycle
Acceptance
phases
Commitment to
planning
Line
Management
Growth
Minimization
of
Acceptance creeping scope
Selection of a project
tracking system
Maturity
Life Cycle Phases for Level 2
Project Management Maturity
Maturity
Embryonic
Line
Management
Acceptance
Development of a
Executive
management cost/
Management
schedule control
Acceptance
system
Integrating cost and
schedule control
Maturity
an
Growth Developing
educational program
to enhance project
management skills
Driving Forces for Maturity
Capital projects
Customer expectations
Competitiveness
Executive understanding
New product development
Efficiency and effectiveness
The Components of Survival
Efficiency and
Effectiveness
Capital
Projects
New Product
Development
Customer
Expectations
Executive
Understanding
SURVIVAL
Competitiveness
The Speed of Maturity
Internal
Efficiencies &
Effectiveness
Non-Project-Driven
and Hybrid
Organizations
Project-Driven
Organizations
Customer
Expectations
Competitiveness
Fast
Speed of Maturity
Slow
Benefits Of Project Mgt.
Past View
Present View
Project management
will require more
people and add to the
overhead costs.
Project management
allows us to
accomplish more
work in less time and
with less people.
Profitability may
decrease.
Profitability will
increase.
Benefits Of Project Mgt.
Past View
Present View
Project management will
increase the amount of
scope changes.
Project management will
provide better control of
scope changes.
Project management
creates organizational
instability and increases
conflicts.
Project management
makes the organization
more efficient and
effective.
Benefits Of Project Mgt.
Past View
Present View
Project management
is really eye wash
for the customers
benefit.
Project management
will allow us to work
closer with our
customers.
Project management
will create problems.
Project management
provides a means for
problem solving.
Benefits Of Project Mgt.
Past View
Present View
Only large projects
need project
management.
All projects will
benefit from project
management.
Project management
will increase quality
problems.
Project management
increases quality.
Benefits Of Project Mgt.
Past View
Present View
Project management will
create power and
authority problems.
Project management will
reduce the majority of the
power struggles.
Project management
focuses on
suboptimization by
looking at only the
project.
Project management
allows people to make
good company decisions.
Benefits Of Project Mgt.
Past View
Present View
Project management
delivers products to
a customer.
Project management
delivers solutions to a
customer.
The cost of project
management may
make us
noncompetitive.
Project management
will increase our
business.
Project Management Costs
Versus Benefits
Cost of Project
Management
Additional
Profits from
Better Project
Management
$
Pegged
?
Time
Industry Classification
(By Project Management Utilization)
Production driven
but with many
projects
PM has P&L
responsibility
PM is a
recognized
profession
Multiple career
paths
Income comes
from projects
Project
Management
NonProject-Driven
Hybrid
Project -Driven
Very few projects
Profitability from
production
Emphasis on new
product develop.
Present
Short product life
cycles
Past
Large brick walls
Long life cycle
products
Marketing-orient.
Need for rapid
develop. process
Program
Management
Product
Management
From Hybrid to Project-Driven
1960 -1990
Hybrid
1990 -Present
Hybrid
Traditional Project
Management
Modern Project
Management
Entrance via
project-driven
divisions such as
MIS and R&D
Entrance via
marketing, sales,
engineering and
R&D
Recessionary Effects
Characteristics
Recession Layoffs
R&D
Training Solutions
Sought
1979-1983
Blue
Collar
Eliminated
Eliminated
ShortTerm
1989-1993
White
Collar
Focused
Focused
LongTerm
Results of the
Recessions
Return to status quo
No project
management
support
No allies for
project management
Change way of
doing
business
Risk management
Examine lessons
learned
New Processes Supporting Project
Management
19601985
No
Allies
1985
1990
19911992
1993
1994
EmpowerTotal
Concurrent ment and
Life
ReQuality
EngineerCycle
SelfEngineering
ManageCosting
ing
Directed
ment
Teams
Increasing Support
New Processes Supporting Project
Management (Continued)
1995
1996
19971998
Project
Scope
Risk
Offices
Change Management
And
Control
COEs
1999
2000
CoMultiLocated National
Teams Teams
Increasing Support
New Processes Supporting Project
Management (Continued)
2001
2002
2003
2004
2005
Strategic
Six
Intranet Capacity Sigma
Planning
Maturity
Status Planning Project
For
Models
Reports Models
Project
Mgt
Management
Increasing Support
New Processes Supporting Project
Management (Continued)
2006
2007
2008
2009
Virtual
Project
Teams
Lean
Project
Teams
Best
Practice
Libraries
Capacity
Planning
Models
Increasing Support
Definitions: Systems
Air Force
A composite of equipment, skills, and
techniques capable of performing and/or
supporting an operational role. A complete
system includes related facilities, equipment,
material services, and personnel required for
its operation to the degree that it can be
considered as a self- sufficient unit in its
intended operational and/or support
environment.
Definitions: Systems
(continued)
NASA
One of the principal functioning entities
comprising the project hardware within a
project or program. The meaning may vary to
suit a particular project or program area.
Ordinarily, a system is the first major
subdivision of project work (spacecraft
systems, launch vehicle systems).
Definitions: Programs
Air Force
The integrated, time-phased tasks necessary
to accomplish a particular purpose.
NASA
A relative series of undertakings that continue
over a period of time (normally years) and that
are designed to accomplish a broad, scientific
or technological goal in the NASA long-range
plan (lunar and planetary exploration, manned
spacecraft systems).
Definitions: Projects
NASA/Air Force
A project is within a program as an
undertaking with a scheduled beginning and
end, and which normally involves some
primary purpose.
KINDS OF PROJECTS
Once a group of tasks is selected and considered to
be a project the next step is to define the kinds of
projects encountered. There are four categories
of projects:
INDIVIDUAL PROJECTS
Short-duration projects normally assigned to a
single individual who may be acting as a project
manager and/or a functional manager.
STAFF PROJECTS
These projects that can be accomplished by one
organizational unit, say a department. Staff (or a
task force) is developed from each section
involved. This works best when one functional
unit is involved.
SPECIAL PROJECTS
Very often special projects occur which require that
certain primary functions and/or authority be
assigned temporarily to other individuals or unit.
These works best for short-duration projects.
Long-term projects can lead to severe conflicts.
MATRIX OR AGGREGATE PROJECTS
These projects require specific (or specialized)
input from a large number of functional (or
business) units and usually control vast
resources.
Successes Vs. Failures
Failures
Successes
Projects
MATURITY
2 YEARS
EXCELLENCE
5 YEARS
Time
Evolution of Policies,
Procedures and Guidelines
Life
Cycle
Phases
1970s
Policy and
Procedure
Manuals
Early 1980s
Guidelines
per
Life Cycle
Phase
Mid 1980s
General
Project
Guidelines
Late 1980s
CONVENTIONAL PROJECT MANAGEMENT
LEGEND
Checklists
with
Periodic
Review
Points
1990s
Project
Management
with Concurrent
Engineering
DEFINITION OF A PROJECT LIFE CYCLE
IMPLEMENTATION
PHASE
PMO
PMO
Resources
Utilized
CONVERSION
OR TERMINATION
PHASE
*
DETAILED
PLANNING PHASE
RESOURCES
CONCEPTUAL FEASIBILITY AND
PHASE
PRELIMINARY
PLANNING PHASE
TIME
Cost
Success: Point Or Cube?
Time
The Definition Of Success
Success
Definition of Success
Primary Factors
Within Time
Within Cost
Within Quality
Accepted by The Customer
Success
Secondary Factors:
Customer Reference
Follow-on Work
Financial Success
Technical Superiority
Strategic Alignment
Regulatory Agency Relations
Health and Safety
Environmental Protection
Corporate Reputation
Employee Alignment
Ethical conduct
Success
Critical Success Factors (CSFs)
[Focuses on the Deliverables]
Key Performance Indicators (KPIs)
[Focuses on the Execution Metrics of
the Process]
Key Performance Indicators
These are shared learning
topics which allow us to
maximize what we do right and
correct what we do wrong.
Components of Failure
None
A
Accomplishment
Actual
B
Planned Achievable Perfection
C
D
E
Perceived
Failure
Actual Failure
Planning
Failure
Components of Failure
None
A
Accomplishment
Actual
B
Achievable Planned
C
D
Perceived Failure
Actual
Failure
Planning
Failure
Perfection
Risk Planning
Performance
Poor Risk
Management
Technical
Inability
Time
Mitigation Strategies Available
Technical Risk
Assessment
and Forecasting
Financial Risk
Assessment
Project
Objectives
Market Risk
Assessment
and Forecasting
Numerous
Project
Planning
Project
Execution
Schedule Risk
Assessment
Opportunities for Tradeoffs
Resulting from Risk Analyses
Limited
The starting point in the
development of any project
management methodology
is the implementation of a
stage-gate process.
Stages
Groups of series or parallel activities
(based upon the risks of the project)
Managed by cross-functional teams
To reach a predetermined deliverable
established by management
Gates
Structured decision points at the end of
each stage
Number of gates must be limited
Gatekeepers
Individuals (i.e. sponsors) or groups of
individuals assigned by senior
management
Empowered to enforce the structured
process (including change management)
Authorized to evaluate performance and
make decisions
And willing to provide the team necessary
technical and business information
Gatekeepers decisions
Proceed to next gate with the original
objectives
Proceed to the next gate with revised
objectives
Delay making a gate decision until further
information is obtained
Terminate the project
Stage-Gate Failures
Assigning gatekeepers and not
empowering them to make decisions
Assigning gatekeepers who are afraid to
terminate a project
Failure to provide the team with
information critical to gate reviews
Allowing the team to focus more on the
gates than on the stages
Methodology Inputs
People
Work
(Tasks)
Project
Management
Methodology
Organization
Tools
Resistance to Change
High
Neutral
Low
I.T.
H.R.
Eng.
Sales
Finance
R&D
Marketing Procurement Manu.
Change Process
Support for Change
Support
Denial
Exploration
Resistance
Resistance
Time
Types of Cultures
Cooperative
Non-cooperative
Isolated (large companies)
Fragmented (multinational)
Integrated Processes for
The 21st Century
Project Management
Concurrent
Engineering
Change
Management
Total Quality
Management
Risk
Management
Integrated Processes
(Past, Present, and Future)
Yrs: 1990-2000
Integrated
Processes
Current
Integrated
Processes
Yrs: 2000-2010
Integrated
Processes
Project
management
Supply chain
management
Total quality
management
Business
processes
Concurrent
engineering
Feasibility
studies
Scope change
management
Cost-benefit
analyses (ROI)
Risk management
Capital
budgeting
Multi-project Management
Are the project objectives the same?
For the good of the project?
For the good of the company?
Is there a distinction between large and
small projects?
How do we handle conflicting priorities?
Critical versus critical projects
Critical versus non-critical projects
Non-critical versus non-critical projects
Chapter Three
Organizational
Structures
Restructuring Necessity
The technology revolution (complexity and
variety of products, new materials and
processes, and the effects of massive research)
Competition and the profit squeeze (saturated
markets, inflation of wage and material costs,
and production efficiency)
The high cost of marketing
The unpredictability of consumer demands (due
to high income, wide range of choices available,
and shifting tastes)
Traditional Weaknesses
Management is satisfied with its technical
skills, but projects are not meeting time,
cost, and other project requirements.
There is a high commitment to getting
project work done, but great fluctuations
in how well performance specifications
are met.
Highly talented specialists involved in the
project feel exploited and misused.
Traditional Weaknesses
(Continued)
Particular technical groups or individuals
constantly blame each other for failure to
meet specifications or delivery dates.
Projects are on time and to specifications,
but groups and individuals arent satisfied
with the achievement.
Questions
To what extent does the task of organization call
for close control if it is to be performed
efficiently?
What are the needs and attitudes of the people
performing the tasks? What are the likely effects
of control mechanisms on their motivation and
performance?
What are the natural social groupings with which
people identify themselves? To what extent are
satisfying social relationships important in
rel
Recent Comments