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Reinventing Project Management Part 1 slides. Operations Projects 1800s Agricultural society 1900s Industrial society 2000s Information society TimeIndustries,

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Presentation on theme: "Reinventing Project Management Part 1 slides. Operations Projects 1800s Agricultural society 1900s Industrial society 2000s Information society TimeIndustries,"— Presentation transcript:

1 Reinventing Project Management Part 1 slides

2 Operations Projects 1800s Agricultural society 1900s Industrial society 2000s Information society TimeIndustries, Companies, Society The Increasing Share of Projects

3 The motivation The assumption: –Different projects are managed in different ways. The literature and the discipline assume: –“a project is a project is a project.” There is no accepted framework The need: –A framework to distinguish among projects –Practical guidelines on how to manage projects in different ways

4 The Questions How to Distinguish Among Projects – Dimensions? How to Classify Projects on Each Dimension? How to Manage Different Project Types? Is There More than One Way?

5 What Impacts Project Type? Environment Product Task Project UCPNTCP Novelty Pace Complexity Technology

6 The UCP Model

7 Four Dimensions for Distinction Among Project Types Novelty – How new is the product to customers and users – Derivative, Platform, Breakthrough Technology – How much new technology is used –Low-tech, Medium-tech, High-tech, Super High-tech Complexity – How complex is the system and its subsystems –Assembly, System, Array Pace – How Critical is the Time frame –Regular, Fast/Competitive, Time-Critical, Blitz

8 The Project Diamond - Assessing a Project’s Risk/Benefit and Selecting the Right Management Approach

9 Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Denver International Airport Project Automatic Bag – Handling System Airport Construction Project

10 Impact on Customer Impact on Team Business & Direct Success Project Success Meeting schedule Meeting budget Changes Yield Other efficiencies Meeting requirements and specifications Benefit to customer Extent of use Customer satisfaction & loyalty Brand name recognition Team satisfaction Team morale Skill development Team member growth Team members’ retention No burnout Sales Profits Market share ROI, ROE Cash flow Service quality Cycle-time Organizational measures Regulations approval New technology New market New product line New core competencies New organizational capabilities Preparing for Future Specific Success Measures Efficiency

11 Short Medium Long Timeframe Preparing for Future Business & Direct Success Impact on Team Impact on Customer Efficiency Success Dimensions Project Success Timeframes of Success Dimensions

12 Efficiency Impact on Customer & Team Business & Direct success Preparing for Future Uncertainty Importance Relative Importance of Success Dimensions is Project- Dependent Low Medium High

13 The NTCP Framework Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz

14 The NTCP Diamond

15 Classical Project Phases Modified to an Adaptive Iterative Approach DefinitionPlanningExecutionTermination Revise Definition Revise Plans

16 From traditional to adaptive project management Adaptive project managementTraditional project managementApproach Getting business results, meeting multiple criteriaGetting the job done on time, on budget, and within requirements Project goal An organization and a process to achieve the expected goals and business results A collection of activities that are executed as planned to meet the triple constraint Project plan Plan at outset and re-plan when neededPlan once at project initiationPlanning Flexible, changing, adaptiveRigid, focused on initial planManagerial approach Unpredictable, uncertain, nonlinear, complexPredictable, certain, linear, simpleProject work Affects the project throughout its executionMinimal, detached after the project is launchedEnvironment effect Identify changes in the environment, and adjust the plans accordingly Identify deviations from plan, and put things back on track Project control Projects differAll projects are the sameDistinction Adaptive approach; one size does not fit allOne size fits allManagement style

17 RequirementsPlanningComplete Revise Requirements Revise Plans Entire Adaptive Iterative Approach Specs Design, Build, Test Revise Design Freeze RequirementsFreeze Design Adaptive ApproachTraditional PM

18 Efficiency Impact on Customer & Team Business & Direct success Preparing for Future Project Completion Time Importance Relative Importance of Success Dimensions - A Matter of Time

19 Critical Success Factors l Project Mission l Top Management Support l Project Planning l Project Control l Client Consultation l Skills l Personnel Management l Project Communication l Client Acceptance l Trouble Shooting l Clear and Early Product Definition l Defined Product Strategy l Early Top Management Involvement l High Quality Process l Adequate Resources l Integrated Planning l Empowered and Communicating Team l Voice of the Customer Generic Projects Product Development Projects

20 The FCS Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Pl, HT, Sy, FC) Da = (Pl, MT, As, FC)

21 Pace Novelty Technology Complexity Later design freeze More design cycles Complex organization Formality Autonomy Less market data Later requirement freeze The Impact of the NTCP Dimensions on Project Management

22 Potential riskExpected benefitDimension Having difficulty predicting exact market needs; missing sales targets; attracting competitors to copy your ideas Exploiting new market opportunities; leapfrogging competition; gaining first mover advantage Novelty Experiencing technology failure; lacking needed skills Improving performance and functionalityTechnology Having difficulty in coordinating and integratingBigger programs, bigger payoffsComplexity Missing deadlines; making haphazard mistakesGaining early market introduction, mounting quick response Pace Benefits and risks of high NTCP levels

23 The World Trade Center Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Pl, MT, Ar, FC)

24 Reinventing Project Management Part 2 slides

25 The “Toy Story” Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Pl, HT, Sy, -)

26 Definitions and examples of project novelty ExamplesDefinitionLevel of project novelty Developing a new version of a personal computer; upgrading a production line; streamlining organizational procedures Extending or improving existing products or services Derivative project Building a new automobile generation; developing a new aircraft; creating a new generation of a cellular system Developing and producing new generations of existing product lines or new types of services to existing markets and customers Platform project The first enterprise resource planning (ERP) package; the first photostatic copying machine (Xerox); the first Walkman; the Segway personal transportation system Introducing a new concept, a new idea, or a new use of a product that customers have never seen before Breakthrough project

27 The Segway Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Dr = (Br, HT, Sy, -) Da = (Pl, HT, Sy, -) Required style Actual style

28 Product novelty and project success: Expectations Level of project noveltySuccess dimensions and possible failure BreakthroughPlatformDerivative Efficiency is difficult to achieve and may not be critical (unless competitors work on the same idea); overruns likely Time to market is important for competitive advantage High efficiency is critical; no room for overruns Efficiency Outstanding improvements in customer’s life and work Having high strategic impact on customers; retaining previous generation customers Gaining additional customers and market segments Impact on customer Team members explore new fields and gain extensive experience in unknown markets Team members gain technical and managerial experience in introducing new-generations. Team members extend their experience in quick product modifications. Impact on the team Long-term, significant business success; may come later after initial products have been tested and refined High strategic impact on the business; expectation of years of revenues and building of additional derivatives Extends life of existing products; additional revenues and cash cow current products Business and direct success Creating new markets and establishing substantial leadership positions Maintaining a strategic position in the market Almost nonePreparation for the future

29 Impact of product novelty levels on project management Level of product noveltyManagerial aspect Breakthrough (Br)Platform (Pl)Derivative (De) Unreliable market data; market needs unclear; no experience with similar products; customer base not defined Extensive market research and careful analysis of previous generations, competitors, and market trends Accurate market data exists from previous products and market research Market data Product definition based on intuition and trial and error; fast prototyping to obtain market feedback Invest extensively in product definition, involve potential customers in process Clear understanding of required cost, features, functionality, etc. Product definition Very late freeze of requirements, often after prototype feedback Freeze requirements later, usually at mid–project Early freeze of product requirements, usually before or immediately after project launch Requirements freeze Create customer attention through new and innovative marketing techniques; educate customers about potential of product; hidden customer needs; create industry standard Create product image. Emphasize product advantages; differentiate from competitors Emphasize product advantage in comparison to previous model; focus on existing as well as new customers Marketing

30 Financial Middleware Software Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Pl, HT, Sy, -) Da = (De, MT, Sy, -)

31 Denver International Airport Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Automatic Bag – Handling System Airport Construction Project

32 Project types based on levels of technological uncertainty Level of technological uncertainty Super-High-TechHigh-TechMedium-TechLow-Tech Key project technologies do not exist at the time of project initiation Uses many new, recently developed, existing technologies Mostly existing technologies; limited new technology or a new feature Uses only existing, well- established, and mature technologies Definitions New, unproven concepts beyond the technological state of the art (e.g., Apollo moon landing program) New systems in a fast- moving industry (e.g., computers, military systems) Derivatives or improvements of products; new models in established industries (e.g., appliances) Construction, road building, utilities, build-to-print Examples

33 Project characteristics and technological uncertainty levels Level of technological uncertaintyVariable Super-High-TechHigh-TechMedium-TechLow-Tech Need to develop key technologies during project effort; intermediate small-scale prototype Considerable development and testing; prototypes usually used Limited development; some testing No development; no testing Development, testing, and prototypes Typically three cycles after the final technologies have been selected; late design freeze At least two or three cycles; design freeze usually at midpoint during second or third quarter One to two cycles; early design freeze Only one cycle; design freeze before start of project execution Design cycles and design freeze Extensive peer reviews by technical expert teams critical to success Technical reviews with experts in addition to formal progress reviews Formal progress and status reviews; some technical reviews Formal progress and status reviews Project reviews Highly flexible style; living with continuous change; “looking for trouble” More flexible style; many changes are expected Less firm style; readiness to accept some changes Firm style; sticking to the initial plan Management style and attitude Many communication channels; informal interaction Frequent communication through multiple channels; informal interaction More frequent communication; some informal interaction Mostly formal communication; scheduled meetings Communication and interaction Project manager with exceptional technical skills; highly skilled professionals Manager with good technical skills; many professionals on project team Manager with some technical skills; considerable proportion of academicians Manager with good administrative skills Project manager and project team 25–50%10–25%5-10%5%Contingent resources

34 Possible Time Ranges for Design Freeze, Number of Design Cycles, and Risk Areas for Project Outcomes A: 1 B: 1-2 C: 2-3 D: n+3 D C B A Project Scheduled Completion Project Initiation Resources Time Planned Resources Possible time ranges for design freeze Risk area Legend: A- Low-Tech B- Medium-Tech C- High-Tech D- Super High-Tech B: 1-2 – Number of design cycles n – No. of cycles required to choose the final technologies

35 Low- and medium-tech versus high- and super- high-tech projects Project type Managerial issue High- and Super-High-TechLow- and Medium-Tech Flexible, ready to accept many changes and tolerate long periods of uncertainty Rigid, no-nonsense, “get it done” approachManagerial style Formal executive reviews plus technical peer reviews by experts Formal, top management approval of major phase completion Project reviews Phase overlaps not recommendedPhase overlaps possibleSaving time by overlapping phases Cost-plus; fixed-price is possible at a later stage of development Fixed-priceBest contract type Spiral developmentLinear developmentDevelopment approach Risk management, systems engineering, quality management Lower cost, on timeAdditional concerns

36 SR-71 Blackbird Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Pl, SHT, Sy, -)

37 Apollo Program Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Br, SHT, Ar, FC)

38 Space Shuttle

39 The Space Shuttle Program 1969Initial proposal - to go to Mars in 1980s Encountered low priorities, Were asked to look for low-cost alternatives 1972(August) Program approved; Shuttle only Based on known technologies -“success oriented” 1972(November) Design freeze- configuration and technologies 1978First flight scheduled 1981Actual first flight - 60% budget overrun 1982System declared operational 1986Challenger accident 2003Columbia accident

40 Space Shuttle Program Initial Uncertainties n First two-medium space vehicle n First reusable space vehicle n Liquid fuel engines and an external tank n Huge 75 Ton glider n 5000 Miles glide from reentry to landing n First orbital flight with a live crew n No crew escape system

41 The Space Shuttle Program Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Br, SHT, Sy, Re) Da = (Pl, HT, Sy, FC)

42 Space Shuttle Project Management Style Actual StyleAlternative Style Success orientedLook for trouble Off-the-shelf itemsAlternative technologies Early configuration andLate freeze; Build a design freeze small-scale prototype Low flexibilityHigh flexibility Early operationalExtended development Limited communicationIntensive communication Type CType D High-TechSuper High-Tech

43 The Ford 2000 Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Pl, HT, Sy, -)

44 The three levels of project complexity Examples of projectsProduct complexityProject complexity Development of a PDA, Post-it notes, design of a single service Material, component, subsystem, assemblyAssembly project Missile development, new computer development, new automobile model, a single building construction, restructuring a production plant System, platform of systemsSystem project English Channel tunnel, national missile defense system, new neighborhood construction, nationwide cellular system Array, system of systemsArray project

45 The Chunnel Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Pl, MT, Ar, -) Da = (Pl, MT, Sy, -)

46 The Harmony Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Pl, HT, Sy, FC)

47 Mars Climate Orbiter Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Br, HT, Sy, TC) Da = (Pl, MT, As, TC)

48 Four levels of pace BlitzTime-CriticalFast/CompetitiveRegular Crisis projects; utmost urgency; project should be completed as soon as possible Meeting time goal is critical for project success; any delay means project failure Project completion on time is important for company’s competitive advantage and/or the organization’s leadership position Time not critical to organizational success Definitions War; fast response to natural disasters; fast response to business-related surprises Projects with a definite deadline or a window of opportunity; space launch restricted by a time window; Y2K Business-related projects; new product introduction, new plant construction in response to market growth Public works, some government initiatives, some internal projects Examples

49 The Y2K Case Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Pl, MT, Sy, TC) Da = (Pl, MT, Sy, Bl)

50 Reinventing Project Management Part 3 slides

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53 Benefit and Opportunity Risk or Difficulty Low High Approve Immediately Reject Immediately Further Consideration Further Consideration Risk and Benefit Assessment Matrix

54 Market Watch Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz D = (Br, MT, Sy, FC)

55 Innovation Categories and Project Types Incremental Market Innovation Incremental Technological Innovation Radical Technological Innovation Modular Innovation Architectural Innovation Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Radical Market Innovation

56 Time Product Performance Low-end demand High-end demand Sustaining progress Disruptive progress Manage by Platform Projects Manage by Breakthrough Projects The Innovator’s Dilemma and Project Management Adopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors

57 The Evolution of Project Types along the Product Life-cycle Novelty Breakthrough Platform Derivative Derivative Platform Technology Medium to Medium- Medium- Medium to Super-high-tech tech tech Low-tech Goal Strategic Strategic Operational Operational Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors

58 The Microwave Oven Patent Filed Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No , Filed Jan. 24, 1950

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60 The first Microwave Oven

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66 Characteristics of projects for various customers Customer typeCharacteristic Government/Public ( B2G)Industrial/Business (B2B)Consumer (B2C) Hubble telescope, FCS, Army communication AS/400, B777, ERP systemsMP3 player, PC, carsExamples of products Impact on public goals and needsImpact on businessImpact on quality of lifeValue to customer Long-term relationshipIndustry leadership, preferred provider High volume, market shareProducer’s objective High focus on performanceHigh focus on time and costHigh focus on time, cost, and quality Project focus Defined by or with customerContinuous customer involvementDefined by marketing; perceived customer needs, market research Product definition Defined by or with customerDefined by producer with customerDefined by producerProject scope: work, goals, deliverables Contracted project, obligations to customer Either external contract or internal commitment No contract, internal commitment Contractual obligations Intense customer involvement; often customer representative on the team Sometimes direct customer involvement No direct involvement; focus groups or market trials Customer involvement Financed by customer according to contract Internally financed, or contracted by customer Internally financedFinancing Competition for bids; focused on major decision makers Industry image creationMass marketing, advertisement; brand management; Marketing Reliability focused on safetyReliability may be traded off for timely delivery High reliability requiredReliability Training, documentation, on-call support Service availabilityProduct support

67 Wire and Cable Coating Project Array System Assembly Complexity Novelty Technology Pace Derivative Platform Breakthrough Super-High Tech High-Tech Medium-Tech Low-Tech Regular Fast/ Competitive Time-Critical Blitz Required style Actual style Dr = (Br, HT, Sy, Bl) Da = (Br, HT, As, Bl)

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73 Project Management - The Two + One Processes When are you shooting? Technical Process Product Definition Process Managerial Process

74 Classical Project Phases Modified to an Adaptive Iterative Approach DefinitionPlanningExecutionTermination Revise Definition Revise Plans

75 The Impact of the NTCP Dimensions on Project Management Pace Novelty Technology Complexity Later design freeze More design cycles Complex organization Formality Autonomy Less market data Later requirement freeze

76 A Framework for Adaptation CategoryProject TypesPM Impact Strategic GoalStrategic, Operational CustomerExternal, Internal Combined Business Objective NPD, Product Improvement, Maintenance, Infrastructure, Research NCTP NoveltyDerivative, Platform, Breakthrough ComplexityAssembly, System, Array TechnologyLow-tech, Medium-tech, High- tech, Super High-tech PaceRegular, Fast/Competitive, Time- Critical, Blitz

77 Reducing Requirements and Design Uncertainty Project Start Levels Determined by Novelty, Technology, And Other Uncertainties Uncertainty of Technical Specs and Design Ideal World Real World Requirements Freeze Specifications and Design Freeze Uncertainty of Requirements

78 RequirementsPlanningComplete Revise Requirements Revise Plans Entire Adaptive Iterative Approach Specs Design, Build, Test Revise Design Freeze RequirementsFreeze Design Adaptive ApproachTraditional PM

79 Iterative Process of Requirements and Design Freeze Product RequirementsDesign, Build, TestProduct Prototype Complete final product Technical Specifications Market Research and/or Market Testing Change Until Requirements FreezeSpecifications and Design Freeze # of Design Cycles Initial Market Data # of Requirements Change Cycles Time Adaptive project management Traditional project management

80 Typical project activities across project phases DetailsActivityPhase Market/customer identification; Customer needMarket definitionDefinition Define the expected business objectiveBusiness objective Product description; Product requirementsProduct definition Statement of work (scope); duration; budget; PM and teamProject definition Categorize a project based on strategic or operational, internal or external user, novelty, technology, complexity, pace Identifying project type Define management’s expectation on relevant success dimensionsSuccess and failure criteria Decide how each project category will affect project organization, processes, plans, activities, and team Impact of type on project management Planning Break scope into detailed work packages and activitiesWBS Project team structureOrganization Major phases, gates, and milestonesProject process plan Detailed network and timing of activitiesSchedule Detailed cost of project based on WBS itemsBudget Risk identification and mitigation plan based on project typeRisk management Timing and duration of integration activitiesIntegration plan Subcontracting and vendor management planProcurement Reporting structure and meeting scheduleCommunication Team development and training; Team motivationHuman resources Initial technical specifications; product design and testing planProduct creation plan

81 Typical project activities across project phases (cont.) DetailsActivityPhase Refine product requirements Freeze product requirements Product requirementsExecution Product design Prototype building and testing Additional design cycles (redesign, rebuild, retest) Freeze product design Product building and testing Product building Progress and status of budget, time, and activities performedProject monitoring Update plans and make changesProject replanning Training materials and meansCustomer preparednessTermination Product introduction planCommercialization Project summary report Next generation planning Project wrap-up

82 Risk Assessment

83 Master plan – Entire project Detailed work plans – Weeks Medium detail plans – 4 to 6 Months Time The “Rolling Wave” Planning Concept

84 Outsourcing Work Packages

85 Possible Outsourcing Regions


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