Project+Organization+010411

Project+Organization+010411 - How to put together an...

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How to put together an organization/contractual approach • Consider: – Goals (requirements) – Risks (uncertainty) • Then decide on: – Who (roles): people (professionals), companies (organizations) – Expected performance: What (scope), how much (cost, environmental footprint, etc.), when (schedule) – Commitment • Type (fixed price, unit price, cost plus) • How reached (bid, negotiation) • Distinguish company vs. project organization Contractor Owner Sub- Contractor Sub- Contractor Sub-Sub Contractor Suppliers Consulting Engineer Architect Consulting Engineer
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Definition of a Project • “. ..one shot, time-limited, goal directed, major undertaking, requiring the commitment of varied skills and resources.” (Stuckenbruck, 1982)
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First developed by Prof. Boyd Paulson, Stanford University
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Key Tradeoff in Organization Design • Timing and nature of involvement vs. cost of involvement of an organization or professional (i.e., a discipline) – The more an owner knows earlier the better it can address the project goals and risks – However, it is costly to obtain this knowledge and coordinate it – If cost of involvement and coordination was free owners could engage all necessary organizations or professionals at the start of a project – Since this cost is not zero owners have to choose who to involve when and for what they need to understand the goals and risks of projects and their priority and potential severity to bring the right knowledge to the project when it matters most
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Organization Form Product Organization Process Function Form Behavior 1. Align “organization form” with “POP functions” and “product and process forms”. 2. Support and respond to predicted and observed “POP behaviors”. 3. Key decisions: Who to engage when for what and for how much (scope, time, money).
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Risk (http://en.wikipedia.org/wiki/Risk) • Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event. Exposure to the consequences of uncertainty constitutes a risk. In everyday usage, risk is often used synonymously with the probability of a known loss. • Qualitatively, risk is proportional to both the expected losses which may be caused by an event and to the probability of this event. Greater loss and greater event likelihood result in a greater overall risk.
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Risk Example from Rincon Project Product Organization Process Function Budget <= $x Build Rincon Center on budget and schedule T construct <= x months Form Soil conditions: reclaimed land ?
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This note was uploaded on 10/03/2011 for the course CEE 100 taught by Professor Fischer during the Spring '11 term at Stanford.

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Project+Organization+010411 - How to put together an...

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