Structuring Projects (different types of project structures / Advantages & Disadvantages
Advantages- Pure Project
The project manager has full authority
Team members report to one boss
Shortened communication lines
Team pride, motivation, and commitment are high Disadvantages
Duplication of resources
Organizational goals and policies are ignored
Lack of technology transfer
Team members have no functional area "home"
Advantages- Functional Project
A team member can work on several projects
Technical expertise maintained in functional area
Functional area is “home” after project completed
Critical mass of specialized knowledge
Disadvantages- Functional Project
Aspects of the project that are not directly related to the functional area get short-changed
Motivation of team members is often weak
Needs of the client are secondary and are responded to slowly
Advantages- Matrix Project
Better communications between functional areas
Project manager held responsible for success
Duplication of resources is minimized
Functional “home” for team members
Policies of the parent organization are followed
Disadvantages- Matrix Project
Too many bosses
Depends on project manager’s negotiating skills
Potential for sub-optimization
Critical Path Methodology
Time Cost Models and CPM
A time-cost model extends the CPM model to consider the trade-off between time required to complete an activity and total project cost.
Considers direct activity costs, indirect costs of project, and activity completion times
It is often referred to as “crashing” the project to reduce overall duration.
Characteristic that can be used to guide the design of service systems
factors that distinguishes service design and development from manufacturing design and development
1. The process and the product must be developed simultaneously.
The process is the product.
2. A service operation lacks the legal protection commonly available to products.
3. The service package constitutes the major output of the development process.
4. Many parts of the service package are defined by the training individuals receive.
5. Many service organizations can change their service offerings virtually overnight.
three contrasting service design approaches
1. The production line approach (McDonald’s)
Service delivery is treated much like manufacturing.
2. The self-service approach (ATM machines)
Customer takes a greater role in the production of the service.
3. The personal attention approach (Ritz-Carlton Hotel Company)
characteristic of a well-designed service system
1. Each element of the service system is consistent with the operating focus of the firm.
2. It is user-friendly.
3. It is robust.
4. It is structured so that consistent performance by its people and systems is easily maintained.
5. It provides effective links between the back office and the front office.
6. It manages evidence of service quality so that customers