Project Organization Chart

In the previous lessons, we've talked about project organization discussed the impact of cooperate culture on project organizations and approaching cons of different approaches.

In this lesson, we want to review project organization chart assignment.
Identify the key elements of a project organization chart, and finally prepare a project organization chart for the electric car case.
First, let’s talk about the assignment. In the resources file, of course, there you'll find a study case called the Wilmont's Pharmacy Drone Case.
In this assignment, I'd like you to prepare two organization charts based on this case.

First, is an organization chart for the client, Wilmont's Pharmacy.

The second is for your team, DroneTech Engineering. In this case, you should place yourself in the project managers position, and then provide details for all the rest of your team based on the case.
Finally, for each organization chart, I would like you to state what type of organization is represented in the chart.
Is it a functional organization, a matrix organization? Or a project based organization?
And finally, why did you make that choice.

The detailed instructions for the assignment are included as part of this module.
The final deliverables will be graded by your peers using a grading rubric outlining the requirements for the assignment and included in this document.
I suggest that you use this rubric as a guide in completing the assignment to make sure that you meet the requirements and maximize your grade.
So how do we prepare an organization chart?
The project organization chart you'll prepare looks a lot like the functional organization chart we reviewed earlier.

Each manager in your organization oversees a project function or a major project area.
For instance, the functions might include engineering, operations, construction, procurement, quality and project control as shown in this chart.
Or alternately, they may be divided by system, such as power train, batteries, and charging steering and control, procurement, quality, and project controls.
Notice that both charts have the key support functions, procurement, quality, and project controls.
Many charts will also contain a safety or health safety and environmental position if they're sufficient size.
It's critical that these latter functions are including the organization chart, and that they report to the project manager.
They report to the project manager so that independent views and actions can be provided to the project, independent of the functions.
Many times the organization charts mirror the hosting organizations functional organization.

This is done to allow the functional organization to matrix into the project. In the case of matrix organization to allow the project to coordinate with one function for each key position on the organization chart.
A big influence on how you develop a project organization chart will be your organization's environment and culture. How do we normally do it?
Many organizations will have standards or go-bys to inform the project manager on what works best in their environment.
It's usually best practice to follow these suggestions.
Below this main level the organization chart may be broken into further sections in a similar fashion. For instance, we would expect engineering to be subdivided into the appropriate disciplines, such as process, mechanical, structural and electrical.
Our power train may be broken into engine, drive train, brakes, etc
The key is to divide the project into manageable sections that make sense from a controls perspective.
One thing I'd like to note on this organization chart is the level designations.
For ease of reference, most organization charts use a level reference. In this case, level 1 is the project manager, level 2 are his or her direct reports, and level 3 are the direct reports to the direct reports, and so forth.
Once you decide the functions that go into the project organization chart, then it's time to add names.
One name should be assigned to each function in the organization chart, so there is a single level of accountability for each function.
Remember one rule of thumb is to set up your project organization so that each function or section can be set up like a mini project and can have its own scope, schedule, and budget.
This drives accountability.
Now that we reviewed the assignment, a look at how to build your own organization chart, let's look at an example.
To demonstrate how to put together a project organization chart. We've selected an electric car case in example.
In this case, your team is to build an electric car for a competition.
The work for the electric car case is divided into the following segments. Design, fundraising, construction, quality and testing, procurement, project controls.
In the project organization chart we've assigned a lead for each box at the second level.
In addition, we have one person on the third level, the power systems specialist.

Chart