Matrix Structure In Small Scale & Fast Track Construction Project: A Case Study Of Office Fitting-Out Projects

Vietnam is a developing country which needs a large amount of investment special in infrastructure and construction industry from ODA and FDI. In infrastructure and construction industry, the technology of Project Management is one of the most important factors lead to successful projects.

Most of these projects are under project management unit of a state company (PMU). If there is a new investment, a new PMU has to be set up for new policies, forms, norms. This method wastes a lot of human resource, time and cost resulting to late delivery and over budget.

The lack of skilled persons to meet the requirement of construction projects in an emerging market as Viet Nam is a big issue especially in small and medium companies which precede small scale and fast track projects. The functional organization is not suitable for Project Management in construction because of not using & not salvaging all capability of white collar worker. Pure Project structure is also not suitable because it has hard structure and it is un-flexible in temporary sharing human resource, experience. So, the Project Matrix Structure which is more efficient using resource than other single hierarchy is a new model which can be reviewed and considered as a suitable model for Viet Nam situation now especially in medium & small scale companies, accompanied with small scale and fast track construction project.

Mr. Nguyen Phong made a study which focused on the: (1) study the literature of Project Matrix Structure in construction project; and (2) analyze a Case Study in application of Project Matrix Structure in Small Scale and Fast Track Project in Viet Nam

Conclusion

Most of private business in Viet Nam have just established around 15 years, a short of time compare with international business, so the application of a new concept in management is a risky selection. Project Matrix Structure was applied all over the world but still a new concept in Viet Nam, especially in small scale and fast track project.

The change from functional structure to Matrix Structure is a process of deep thinking and careful selection which need a lot effort of all members. Matrix Project Structure is a good choice and brings out a great success for organization in Viet Nam in which TTT Corporation is one example. TTT Corporation became a well-known contractor in small scale and fast track project, specifically in fitting-out and interior areas.

Matrix structure is not only suitable for organization development but also in helping organization members in self-study and self-development. Project Matrix structure is a good model apply in fast track project in VN which come out a lot of advantages in labor force allocation, project team allocation and major improvement of team productivity.

Recommendations

Beside the success of this model in TTT Corporation, there are many issues happened that need to improve in soft ware application, in system buidling and in human resource usage as recommeded below.

General

- Experience sharing need to be enforced to become company policy, then giving back rewards to the people having the best.
- Improve existing norm, regulation and organize training course to team members to update their knowledge
- Develop an individual assessment form for functional manager and project manager to assess the project right after the hand-over.
- Provide training to increase recognition of communication management
- Required over view report which is a part of project bonus to encourage PM to have right evaluation sent to supervisor whose not popular to project team
- The increase of internal project information is a problem in which the way end user transfer & discuss the information on CRM, need to be reviewed and be classified suitable with business strategy and not a forum.

Human resource

- Minimize the amount of virtual project manager and increase the number of professional project manager to take care of bigger projects.
- Support project manager to attend training course in order to be familiarized with new technology and new concept in project management
- Provide technical trainings for project manager because small scale and fast track projects need a project manager who understands not only project management but also all technical issues of the project. This understanding helps the project manager in making decision in a short time.
- Training about communication management, which help project manager and each member understand the importance of communication and classify it in a right way which support to long term goals of organization.

System

- CRM is a soft ware for customer relationship management, and not suitable for project management, although it gives very good support for project management process: it supports for centralize project information, clients information, integration with other soft ware (ERP, Share Point…), helps board of director in controlling, monitoring and reviewing most of project, but only the project milestone and not the general progress of the project. So Project Central is a recommendation for developing and application for some next years.

- ERP is a soft ware suitable for manufacturing and not for design & built project. This application is just for production department. To apply ERP software for construction area, it should have ERP department to manage and control ERP and support others.

His thesis abstract is copied and posted.

ABSTRACT

Project Matrix Structures are applied in large scale projects & long term projects in many western countries and comes with many successes. How it can apply for small scale & fast track projects in developing countries as VN?

There has been a tendency in recent years to manage more activities in more application areas using project management. More organizations are using “management by project.” This is not to say that all operations can or should be organized into projects but the real efficient of the management by project can be the good answer.

This Project Report has taken a general view of Project Matrix Structure in theory & application in developed countries then finding out the case study that applied in VN with a relative successful to propose some recommendations to improve & change in suitable with practical condition of VN.

Office Fitting-out has started in VN around 15 years from the time VN did the “Open Policy” to open the country and to set up relations with other countries & receiving FDI and ODA. By FDI and ODA from developed countries and International Institutes – Office Fitting-out works are developed very fast in VN with high requirements in doing the fast-track project including high quality of finishing, keeping reasonable cost & schedule.

The adoption of “management by project” is also related to the adoption of an organizational culture that is close to the project management culture but this is outside of this report.