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Project ManagementDay 2 in the am Project Management (PM) PLAN.

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Presentation on theme: "Project ManagementDay 2 in the am Project Management (PM) PLAN."— Presentation transcript:

1 Project ManagementDay 2 in the am Project Management (PM) PLAN

2 Project ManagementCook Day 2 in the am # 2 / 30 The Planning Process

3 Project ManagementCook Day 2 in the am # 3 / 30 Scope Management Progression  Conceptual: Realization of problem & project based solution  Initiation: specify a rough statement at the beginning of a project or commencement to the next phase (e.g., Charter)  Planning: developing documents to provide the basis for future project decisions  Definition: subdividing the major project deliverables into smaller, more manageable components  Verification: formalizing acceptance of the project scope  Change control: controlling changes to the project scope

4 Project ManagementCook Day 2 in the am # 4 / 30 Business Context  Our 4,000 person SuZhou SOE is to be privatized in 2 years  We make washing machines with a factory cost of 600 RMB and are having difficulty selling them retail at 800  Haier easily sells a comparable model for 1,500 RMB  The Int’l Appliance Show showed many Chinese brands, but only Haier & famous Japanese brands fared well afterwards  Our distributors complain of appearance, quality & image  Our slow/no debt repayment has cut off bank financing  We have until to have a new plant operational  This is a desperate situation, nothing is sacred: not location, not technology, not brand, not even time and budget  Next president will probably be one of the project leaders!

5 Project ManagementCook Day 2 in the am # 5 / 30 Lu Shan Manifesto (initiation)  Five Projects would be started:  Raise capital (sell RE development rights)  Re-engineer company (no slack; no work = no pay)  Develop new prototype (negotiate with marketing)  Get Production ready (hi quality, subcontract)  Plan market transition (kill old, launch new)  Our “new green baby” is to be launched on 6.1 and be low energy and low water with a new brand name & positioning  On project leaders will deliver “Project Plan”

6 Project ManagementCook Day 2 in the am # 6 / 30 Project Leaders Presentation  “We can deliver!” But, we need:  Sponsor: Chairman, Organization: Project  Style: Autonomous, Priority: Dedicated, Talent: Negotiated  Resources: (through )  Budget: M RMB 1.25 (+/- 20%, savings) in new funding  Milestones: 2.17 mock-up, 4.16 exposition, 5.15 pilot, 6.1 Launch  Talent: Huang Da, Finance; Song MaiLing, Marketing; Liang SiLi, Engineering; Chen Yun, Manufacturing; and Chairman Liu ShaoQi  Freedom: New brand, new positioning, and expanded subcontracting  Goals:  New product line image: “green”, “smart”, moderate price, low cost  Good reviews after exposition

7 Project ManagementCook Day 2 in the am # 7 / 30 Problem / Opportunity  Market perceives our products as too traditional and undifferentiated  Using current technology, we can create the perception of offering greater value while holding our costs in line  Need to target to upscale, younger urban apartment owner  Must avoid a major redesign of our core technology  Take 2 ideas from Japanese: subcontract and reposition  Create a new model line at incremental development costs  Must move very fast; exposition is in April 2003, or lose a year!  Gain market share with environment & energy conservation

8 Project ManagementCook Day 2 in the am # 8 / 30 Goals  Revitalize the company with a new product line, targeted marketing, upscale positioning, and low cost digital technology, but based on our core values and capabilities  Revitalize finances by focusing on core capabilities in assembly, platform, and marketing; shed non- performing assets; subcontract rest  Possibly, use the success of the project to legitimize a successor to the retiring president

9 Project ManagementCook Day 2 in the am # 9 / 30 Objectives  Launch a new brand based on “Upscale Conservation” on – 6.1  Design, develop, and produce new product by  Have a successful exposition with visitors, distributors, and press coverage all up over 100% over previous year  Distribute without resistance for 150% of production costs  Sales up by 50% during last half of 2003, double in 2004  Meet or exceed all current product quality measures

10 Project ManagementCook Day 2 in the am # 10 / 30 Getting Started  Line up appropriate “symbolic” sponsor  Quickly assemble a strong project team  Get key stakeholders involved in the project early  Prepare a detailed analysis of the business problem & solution and develop project measurement techniques  Use a phased, architect-ed approach  Make a project charter that formally recognizes the project and provides direction, objectives & budjet  Get sponsor, management & key stakeholders to agree

11 Project ManagementCook Day 2 in the am # 11 / 30 Phoenix Project Charter  Name: Phoenix Project (Engineering - new product line)  Start: Finish: Sponsor: Liu ShaoQi  Manager: Liang SiLi, x6125  Objective: Develop a new product line, with targeted marketing, upscale positioning, and low cost digital technology, based on our core values and capabilities  Budget (RMB): Direct Labor, 650,000; Capital, 125,000; Expenses 375,000 Subcontracted 350,000 (ex. Inventory)  Approach:  Split into 2 projects: α = make a working model, β = support launch effort  Satisfy marketing with lo water/energy product with upscale appeal  Use digital technology for features and employ subcontracting a lot

12 Project ManagementCook Day 2 in the am # 12 / 30 Phoenix α: Scope  Phase 1: Alpha Phase – make a working model  With marketing, “guestimate” until convergence  Deliverable: preliminary product spec  Deliverable: product spec with price/cost tradeoffs  With production, learn from Japanese, not USA  Deliverable: subcontract strategy  Deliverable: subcontract list of items & prospects  Deliverable: volume pricing  Deliverable: preliminary production plan  Development, bias towards “off the shelf” and hi volume  Deliverables: mock-up, (3) alphas

13 Project ManagementCook Day 2 in the am # 13 / 30 Phoenix β: Scope  Phase 2: Beta Phase – support launch effort  With marketing, coordinate for show & launch  Deliverable: appliance show Beta prototypes (3)  Deliverable: operating manual draft for marketing  With production  Deliverable: pilot run of 100 for “children’s day”  Development  Deliverable: performance & reliability testing report  Deliverable: full CAD/CAM production drawings  Deliverable: Rev. 1 Software for operation and maintenance

14 Project ManagementCook Day 2 in the am # 14 / 30 Activity Definition & Sequencing Alpha Phase  Product Spec  Preliminary Product Spec  Product Specification  Cost Tradeoff Report  Preliminary Production Report  Subcontract Strategy  Subcontractable Items  Subcontract Prospects  Preliminary Production Plan  Construct Mock-Up  Packaging  Mechanical  Configuration  Electrical  Mock-up Demo

15 Project ManagementCook Day 2 in the am # 15 / 30 Activity Definition & Sequencing Beta Phase  Design Betas  Pkg, Mech, Config, Elec, Digital, Operation, Maint, QA  Construct Betas (3)  Procure  Build  Test  Demo  Ship  Pilot Run (100)  Build Documentation  Mold Construction  Procure  Incoming Test  Component Test  Assemble  System Test  Ship

16 Project ManagementCook Day 2 in the am # 16 / 30 Resource Planning

17 Project ManagementCook Day 2 in the am # 17 / 30 Guidance in Making WBSs  A unit of work should appear at only one place in the WBS.  Every WBS item is the sum of the WBS items below it.  A WBS item is the responsibility of only one individual, even though many people may be working on it.  The WBS must be consistent with the way in which work is actually going to be done.  Project team members should be involved in developing the WBS to ensure consistency and buy-in.  Each WBS item must have a objective scope of work.  The WBS must be a flexible to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.

18 Project ManagementCook Day 2 in the am # 18 / 30 Activity Duration & Scheduling

19 Project ManagementCook Day 2 in the am # 19 / 30 Activity Duration & Scheduling

20 Project ManagementCook Day 2 in the am # 20 / 30 Task Dependency Diagram

21 Project ManagementCook Day 2 in the am # 21 / 30 Precedence Diagramming Method (PDM)

22 Project ManagementCook Day 2 in the am # 22 / 30 Cost Estimating

23 Project ManagementCook Day 2 in the am # 23 / 30 Cost Budgeting  Cost budget involves allocating project cost estimates to individual work items (based on WBS)  Cost budget provides cost baseline – a time-phased budget that the project managers use to monitor and measure cost performance

24 Project ManagementCook Day 2 in the am # 24 / 30 Quality Assurance  Quality assurance ensures that quality products are delivered  Another goal of quality assurance is continuous quality improvement  Benchmarking can be used to generate ideas for quality improvements  Quality audits help identify lessons learned that can improve performance on current or future projects

25 Project ManagementCook Day 2 in the am # 25 / 30 Quality Resources  Deming led Japan to top quality with his 14 points  Juran wrote the Quality Control Handbook and 10 steps to quality improvement  Cosby wrote Quality is Free  Ishikawa developed quality circles and using fishbone diagrams  Taguchi developed methods for optimizing the process of engineering experimentation  Feigenbaum developed the concept of total quality control

26 Project ManagementCook Day 2 in the am # 26 / 30 Project Plan Development  A project plan is used to coordinate all project planning documents  Its main purpose is to guide the project execution  Project plans help the project manager to:  lead the project team  determine the project status

27 Project ManagementCook Day 2 in the am # 27 / 30 Project Plan Contents  Executive Summary (what will help the next higher level of management)  Business Problem/Opportunity, Goals and Objectives  Solution, Organizing Principles, Competitive & Strategic Impact  Project Charter, Scope, Architecture, Phases, Deliverables, WBS (Levels 1 & 2), Success Measures, and Quality Plan  External & Internal Dynamics, Risks & Key People  Collaterals: Strategic Benefits, Alternatives, Contingencies, Check Points  Financial Analysis: Costs, Cash Flow, Capital Expenditures  Appendix: Gantt Chart, PERT Chart, Selected Drawings

28 Project ManagementCook Day 2 in the am # 28 / 30 Planning Outputs (Wish List)

29 Project ManagementCook Day 2 in the am # 29 / 30 Planning Outputs (More)

30 Project ManagementCook Day 2 in the am # 30 / 30 Concluding Remarks  Questions and Answers  Thank you, again. You can find a copy of this lecture (550 KB) on the Internet at:


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