Matrix Structure in Small Scale & Fast Track Construction Project

Vietnam is a developing country which needs a large amount of investment especially 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 leading to successful projects. Most of these projects in Vietnam are under the Project Management Unit of a state company (PMU), and PMU will be released after the project has finished. If there is a new investment, a new PMU has to be set up which wastes human resource, time, cost and accompanied with that is most of the large scale projects in Vietnam now are usually late in delivery and over budget, while productivity & effectiveness are common goals of whatever modern project management process. The unsuccessful resource allocation of large scale projects in Vietnam now is also a problem.

The lack of skilled persons to meet the requirement of construction projects in an emerging market as Vietnam is a big issue especially in small and medium companies which proceed 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 unflexible in temporary sharing human resource, and 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 Vietnam situation now especially in medium & small scale companies, accompanied with small scale and fast track construction project.

Nguyen Phong made a case study which focused on the following:

1. Study the literature of Project Matrix Structure in construction project

2. Analyze a Case Study in application of Project Matrix Structure in Small Scale and Fast                 Track Project in            Vietnam

Conclusion

Most of the private businesses in Vietnam 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 it is still a new concept in Vietnam especially in small scale and fast track project.

The changing from functional structure to Matrix Structure is a process of deep thinking and careful selection which need a lot effort of all members and long time in restructure organization. Furthermore, the discussion and analyses revealed that Matrix Project Structure is a good choice to bring out a great successful organization in Vietnam in which TTT Corporation is one of the most successful. From a no-name contractor in Vietnam, TTT Corporation now becomes 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 Vietnam which come out a lot of advantages in labor force allocation, project team allocation and major improvement of team productivity.

Recommendations

Besides the success of this model in TTT Corporation, there are many issues happened that need improvement in software application, in system buidling and in human resource usage. Below are some recommedations:

1. In general

i. Experience sharing needs enforcement to become company policy, and proceed each quarter including reward to the best

ii. Improving existing norm, regulation and organize training course to team member update knowledge on sharing is not fair

iii. Develop individual assessment form for functional manager, project manager and proceeds the assessment immediately after project hand over.

iv. Training to increase perceive communication management

v. Report overview is a part of project bonus to encourage PM, have right evaluation sent to supervisor, not popular to project team

vi. The increasing of internal project information is a problem. The way end user transfer & discussion the information on CRM need to be reviewed and be classified suitable with business strategy not a forum.

2. Human resource

i. Minimize the amount of virtual project manager and increase the number of professional project manager to take care bigger projects.

ii. Support project manager to have more training course on approach with new technology and new concept in project management.

iii. Training of project manager on technical knowledge related with project because small scale and fast track project need by the project manager to understand not only in project management but also all technical issues of project. This understanding helps project manager in making decision in short time.

iv. 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.

3. System

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

2. ERP is a soft ware suitable for manufacturing and not for design & built project, so the application is just for production department or apply ERP software for construction area and ERP department should be a department to manage and control ERP and support to others.

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.