Project Organisation

A. Definition
B. Project Organisation (Structure)
C. Type of Project Organisations
D. Members in the Project Organisation
E. Additional Definitions

A. Definition

Organisation (Organization) is a team or group of people who works together for the shared purpose of administering and managing business, social, political, and other activities, such as a government department, business, or project. The Organisation Structure is a framework to define the roles and responsibilities, work flow, reporting system, and decision making. There are two types of an organisation: a permanent and task force organisation.

Project Organisation (Organization) defines the human infrastructure and identifies roles and responsibilities of each positions that facilitates the coordination and implementation of project activities. One of the important decisions of project management is the form of organisational structure that is the team members with a minimum missing, overlapping and conflicting among the project members. The success of project depends on its organisational structure, key personnel capability, and management work process in which where decision is made. The Project Organisation can be structured as a Functional Structure Organisation, Project TF (Task force) (traditional Hierarchical) Structure Organisation, and Matrix Structure Organisation. The Project Organisation can be evaluated different options based on the project environmental, company needs, assigned personnel capabilities ensuring efficiency, productivity, operational effectiveness.

B. Project Organisation (Structure)

C. Type of Project Organisations

Project TF (Task Force) Organisation is a traditional hierarchical structure organisation that is defined by PMI as a hierarchical structure or projectized organisation. A Project Manager who is the head of all authority of the project in commercial, technical and execution in the Project TF Organisation. A corporate functional organisation such as Quality, HSE, Risk, Value, O&M, IT, Estimate, Finance, HR, Legal, Business, etc., can be assigned as project supportive staffs. The Project TF Organisation is normally applied for a medium and large size of project, and multi projects project.

Functional Organisation (Organization) is the most commonly used of the organisational structure in the production industries. The Functional Organisation structure is divided roles and functions by the division or department, such as project management, engineering, procurement, construction, and project controls. The Functional Organisation is normally applied for a small size of project. An advantage of the Functional Organisation will be a specialisation, efficiency, and productivity, but disadvantage will be a lack of team-work and difficult management control.

Matrix Organisation (or Hybrid Organisation) is a general company's organisational structure in which the reporting process is set up as the dual relationships, the production team or task force (project management) and functional management. Normally, the Project Management is responsible for the project profit and loss, relationship with client, and project operation and execution, where the functional management is responsible for the work qualities. 

Hybrid Organisation is a mixture organisation of the public, private and voluntary sector, or the task force and functional organisation.

D. Members in the Project Organisation

Administrator is a person who is responsible for the control and manage the administrative functions of a business or an organisation. (e.g., calling partners, making appointments, ordering consumable supplies, preparing reports, etc.)

Architect is a qualified professional building and structure engineer or designer.

Chief Diversity Officer (CDO) is an organisation’s executive level who is a primary responsible person for creating an organisation’s strategy for recruitment of diverse and inclusion strategy.

Commissioning Team is the individuals who are responsible for implementing the Commissioning Process through coordinated actions. The Commissioning Team collaborates cohesively to assure that all of the steps in the commissioning process are completed, and the facility objectives are met. The exact size and members of the commissioning team will vary depending on project type, size, and complexity as well as team members experience.

Construction Manager is responsible for direct construction activities such as erection and installation of equipment and materials reporting to the Site Manager, and supported by construction superintendents, supervisors, and construction subcontractors. Normally, the Construction Manager is a Site Manager of a small size of construction project. (Refer to the Site Manager (or Construction Manager))

Cost Engineer is a project controls engineer who uses the practical skills, knowledge and experience in the project cost control and management to determine project costs: estimate; forecast; planning; and profitability analysis, etc.

Cost Estimator is an engineer who is a responsible person for the project cost estimate.

Engineering Disciplines of oil and gas industries are mainly the process engineering, process safety engineering, mechanical engineering, piping and pipeline engineering, electrical engineering, control system and instrumentation (CSI) engineering and civil, structural and architecture (CSA) engineering.

Estimator is 1) a rule or method of estimating parameter values of a given quantity based on observed data; 2) an engineer who estimates the price, value, number, quantity, or extent of something.

Facility Manager is a job function who is responsible for facilities to make sure the good condition of infrastructure and ensure that facilities are safe and well functioning for the organisation and people as well as the surrounding environment.

Operator is an individual responsible for person or company that runs a machine or business, or productive activity of a system.

Professional Engineer (PE) is an individual engineer who has fulfilled educations and experiences required and passed rigorous exams under government licensure laws. The Professional Engineer (PE) is permitted to offer engineering services directly to the public.

Programme Manager (Program Manager) is a visionary leader for the overall programme and corporate multi-projects who is responsible for accomplishing a specific set of programme objectives, and achieving the overall goals. (Refer to the Programme Management; Project Manager)

Project Administrator is a professional assistant with project management duties who oversees and performing administrative functions concerned with a project. The Project Administrator is specialised in facilitating, reporting, and analysing projects under the supervision of a project manager. (e.g., calling partners, making appointments, ordering consumable supplies, preparing reports, etc.)

Project Director (PD) is an overall Project Manager who leads a team of one or more project managers (PM) which is a large or complex project.

Project Manager (PM or Project Director, PD) is a person who has the overall responsibility for the successful project operation and achieving project goals and objectives for the entire project lifecycle. A PM is responsible for development of the project goals and objectives, project organisations with the roles and responsibilities, and set up the specific project baselines including the project execution plans and key procedures with key project members in accordance with the company policy and contractual requirement ensuring the key issues of cost, time, quality and safety, and client satisfaction, and sharing with internal and external organisation. A PM is the only point of contact for the stakeholders and client communication, and may need to have: leadership; communication; fast work pace and decision making; complexity and problem solving; business acumen; planning; personal knowledge and experience; initiative and independence; adaptability; tolerance for stress; client focused, and so on.

Site Manager (or Construction Manager) is an overall responsible person for the project construction management at the construction site. The Site Manager is required to keep within the timescale and construction budget of a project, and manage any delays or problems encountered on site during a construction period. Also, responsible for the managing of the quality control, HSSE (health, safety, security, and environment), and dealing inquiries and communications with consultants, clients, engineers, inspectors, and the public for the construction activities at the site. The Site Manager ensures that drawing and materials are delivered on time and construction resources are available on the work including the construction subcontractor, construction equipment and tools, and required procedures, and construction utilities, etc. The Site Manager involves the project initiation and planning stage as a home office construction planning before site activities are commenced, and responsible for managing communications between all parties involved in the site development of the project. (Refer to the Construction Manager)

Superintendent is a person who is in charge of work done in a particular position that is in between a supervisor and manager.

Supervisor is a person who manages and controls people within an organisation, and the activities. The Supervisor has the first level of management responsibility.

System Designer is the individual responsible for the analysis and design of the complete computerised system who is involved in the process of defining elements of a system including modules, architecture, components and interfaces and data for a system.

Tradesman is a manual worker of construction in a particular trade or craft requiring skill normally in the building industry. Tradesmen are contrasted with unskilled workers.

E. Additional Definitions

Chief Customer Officer (CCO) is a high-level executive position responsible for the total relationship with an organisation’s customers who provides the comprehensive and authoritative view of the customer and creates company and customer strategy at the highest levels of the company to maximise customer acquisition, retention, and profitability. A CCO must be the ultimate authority on customers, understanding customers better than any other individual in the company, and typically reports to the chief executive officer (CEO) directly.

Construction Organisation (Site Organization) consists of the management, administration, field controls (Schedule and Cost), field engineering, field material control, construction supervision (subcontractor management), safety (site), quality (quality control and inspection), pre-commissioning team and hand-over tam, etc., at the site or field. The Construction Management Organisation is normally a Project Task Force (TF) Organisation and a full time assignment.

Construction Team Mobilisation is required in the beginning of the project for home office construction activities including development of the construction execution plans (e.g., temporary facility planning and subcontracting plan) and constructability studies. The Construction Team moves or mobilises at the site when the construction drawings and materials are supporting site construction works and activities continuously without serious interference with engineering and procurement work, approximately 60% of engineering progress is achieved.

Cost Centre (Cost Center) is a part of a company or organisation which is responsible for all associated costs and for ensuring adherence to its budgets.

Centralisation (Centralization) is the process by which the activities of an organisation regarding business overall planning and important decision-making become concentrated within a particular location or group within the head office or the centre of the organisation.

Decentralisation (Decentralization) is the process of the transfer of decision-making power by delegation of the authority from the centre of organisation to the individuals, units, or local.

Facilitator is a helper to assist a team or an organisation finding a solution of a specific issue or answer to a problem more easily and efficiently. The Facilitator do not contribute to the actual content but operate a systematic work process.

Human Resource (HR)

More Definitions – visit to the Shop!