What is the best Project Structure -> Scenario -> Customer Project executed with different companies

[Stefano_Coccato]

Hello Expert,

I'm looking your advice to define the best Project Structure considering the following scenario:

• Same CO Area
• Different Company Codes

A new incoming Customer Project has been executed with two companies in our organization, localized in different countries.  One of these two companies is the one that has the main contract with the customer (Company A). 

Company A must execute part of this project but ask for help to Company B. Both companies need to manage materials so networks must be necessary.

What is the best solution for the project structure you suggest?

Two projects with their own wbs structure or one project with two WBS structures?

Thanks

[sammar81 · Accepted solution]

Hi,

if you are looking for control and flexibility at each Company Code level, then two Projects makes sense. If you are okay with different teams working on same Project with different WBS elements then 1 Project is the way forward.

You need to ask the business this question and then decide on the approach. Both are doable and correct solutions here. 🙂 

Hope it helps..

Sammar

[Stefano_Coccato · Accepted solution]

Thanks Sammar. Can you please specify the main adv and disadv of both solutions?

[sammar81 · Accepted solution]

Hi Stefano,

Below are some of the pros and cons for the two approaches

	Pros	Cons
Single Project	Reporting on Overall Progress of the Project is easier as everything is under one project.	If the project is large with many activities in it, handling such a vast project becomes challenging at times
	Easier to create dependencies between activities and understand the floats and critical path for overall project	Authorization Controls for different teams requires using ACL or development
		Need discipline from teams not to post in each others WBS elements
		Segreggation of profits at indiviudal Company code levels becomes tricky. Need good understanding of the Result Analysis process.
Multiple Project	Reporting at individual company code level is easier	Consolidated view is lost, you need a BI or custom report to look at the overall progress
	Better management of large projects with many activities	You cannot create dependency between activities and have critical path for your overall project
	better authorization controls
	Easier to setup and get RA etc.