Old K says every week – Talking about things in the petrochemical design industry. Post 5: The organizational structure of petrochemical engineering companies
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This post was last edited by henglinkou on 2020-7-12 09:23. Post 5 in the series “Lao K talks about various aspects of the petrochemical design industry”: The organizational structure of petrochemical engineering companies. It’s been almost 20 years since I left those state-owned design institutes. I remember that in those institutes, in addition to the necessary departments for production management, human resources management, financial management, and logistics, there were also a Party committee, an organization department, a publicity department, an integrity supervision commission, a Party affairs office, and an institute administration office. I haven’t paid much attention to this aspect lately; I guess there aren’t any significant changes at present. As large and medium-sized engineering companies these days not only handle design work but also provide turnkey project management services, the typical organizational structure of such companies is shown in the figure below. The organizational structure of an engineering company should be designed based on factors such as its size and scope of operations; in any case, it should aim to improve work efficiency by minimizing the number of management levels. Dear sea friends, please share the organizational structure of your company as well as your opinions on it.
Staying engaged has helped me understand the design system.
The last edit to this post was made by Zhi Zi Ming on 2020-7-12 at 11:48. In general engineering companies, the various professional departments (or \"design centers\") are headed by separate deputy general managers, while the project execution department, procurement department, construction, and control departments (or \"project execution center\\") are also managed by separate deputy general managers. Some organizations, in order to highlight the profit generated by projects created by the procurement department and the business department, even separate the procurement department and merge it with the business department, which is responsible for bidding and contracts, forming what is known as a \"Contract Procurement Center\".
In other words, it is an organizational structure for an engineering company that consists of the marketing department, design center, procurement department, project execution unit, and general affairs department. Of course, this goes far beyond the organizational structure of a pure design institute; the basic structure of a design institute is simply various specialized departments plus a general affairs department (or referred to as the \"office of the institute\"), which is quite straightforward.
Medium-sized engineering companies generally have a project execution center, which includes a project manager, personnel responsible for planning and control, a project secretary, and those in charge of document management. There is no separate design department; the design manager is usually appointed from among the specialized staff or assumed by the project manager. Some companies establish departments such as refining departments or chemical engineering departments in order to highlight their various product lines; personally, I think such structures are overly complex. Some companies also establish separate consulting departments to handle preliminary tasks such as feasibility studies and supporting the technical negotiations in the marketing department.
After reading several posts in the series posted by Lao K, I think some details can be added, such as including more of one’s own work experience and opinions over the years, which will make the posts more vivid. :)