PROJECT MANAGEMENT PART IV

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PROJECT MANAGEMENTPART IV

• PROJECT MANAGEMENT NETWORK MODELS

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ACTIVITY NETWORK
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Creating Project Plans to Focus Product
Development

• Steven C. Wheelwright and Kim B. Clark
• Harvard Business Review
• March/April 1992

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Aggregate project plan

• The long-term development of any manufacturing
  company depends ultimately on the success of its
  product development capabilities.
• Often problems arise from the way companies
  approach the development process because they
  lack aggregate project plan.
• In mid-1989, senior management of PreQuip, a
  large scientific instruments company, became
  alarmed about a rash of late product development
  projects.
• For some months, the development budget had been
  rising even as the number of completed projects
  declined.
• There were 30 projects under way - far more than
  anticipated and far more than the organization
  can support.
• There was lack of project focus.

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Bad quick-fixes

• When a project ran into trouble, engineers from
  other projects were reassigned or, more commonly,
  asked to add the crisis project to their already
  long list of active projects. The more projects
  they added, the more productivity dropped.
• The reshuffling caused delays in other projects,
  and the effects cascaded.
• As deadlines slipped and development costs rose,
  project managers faced pressure to cut corners
  and compromise quality just to keep their
  projects moving forward.

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Individual projects vs set of projects

• In most organizations, a management directs all
  its attention to individual projects - it
  micromanages project development.
• But no single project defines a companys future
  or its market growth over time the set of
  projects does.
• Most companies, including PreQuip should start
  the reformation process by eliminating or
  postponing the lions share of their existing
  projects, eventually supplanting them with new
  set of projects that fits the business strategy
  and capacity constraints.
• The aggregate project plan provides a framework
  for addressing this difficult task.

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Project types

• Derivative projects
• Breakthrough projects
• Platform projects
• RD projects
• Alliances and partnerships

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Project types

• Derivative projects
• Breakthrough projects
• Platform projects
• RD projects
• Alliances and partnerships

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Product Change
More
Less
RD Projects
New Core Next Generation Addition to
Derivatives Product
Product Product Family
Enhancements
Breakthrough Projects
Platform Projects
Derivative Projects
Process Change
RD Projects
Breakthrough Projects
Platform Projects
Derivative Projects
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The current state

• The current 30 project aggregate project plan
  looks like as

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Product Change
More
Less
RD Projects
New Core Next Generation Addition to
Derivatives Product
Product Product Family
Enhancements
Breakthrough Projects
Platform Projects
Derivative Projects
Process Change
RD Projects
Breakthrough Projects
Platform Projects
Derivative Projects
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New set of projects

• After a strategic analysis of existing projects
  by using an aggregate project plan, PrqQuip
  reduced the number of development projects into
  11. The new map looks like this

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Product Change
More
Less
RD Projects
New Core Next Generation Addition to
Derivatives Product
Product Product Family
Enhancements
Breakthrough Projects
Platform Projects
Derivative Projects
Process Change
RD Projects
Breakthrough Projects
Platform Projects
Derivative Projects
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Steps of aggregate project plan

• Define project types as either breakthrough,
  platform, derivative, RD, or partnered projects.
• Identify existing projects and classify by
  project type.
• Estimate the average time and resources needed
  for each project type based on past experience.
• Identify existing resource capacity.
• Determine the desired mix of projects.
• Estimate the number of projects that existing
  resources can support.
• Decide which specific projects to pursue.
• Work to improve development capabilities.

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The Logical Framework method for Defining Project
Success

• By David Baccarini
• Project Management Journal, December 1999
• pp 25-32

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Project Success

• Project success is a topic that is frequently
  discussed and yet rarely agreed upon. The concept
  of project success has remained ambiguously
  defined. It is a concept which can mean so much
  to so many different people because of varying
  perceptions, and leads to disagreements about
  whether a project is successful or not.

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Two Components of Project Success

• Project management success - This focuses upon
  the project process and, in particular, the
  successful accomplishment of cost, time, and
  quality objectives. It also considers the manner
  in which the project management process was
  conducted.
• Product success - This deals with the effects of
  the projects final product.

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Hierarchy of Project Objectives
How
How
How
Goal
Purpose
Outputs
Inputs
Why
Why
Why
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Project Objectives

• Project Goal - is the overall strategic
  orientation to which the project will contribute
  and should be consistent with the strategic plans
  of the organization.
• Project Purpose - is the intended near-term
  effects on the users of the project as a result
  of utilizing the projects outputs.

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Project Objectives

• Project Outputs - are the immediate, specific,
  and tangible results or deliverables produced by
  project activities.
• Project Inputs - are the resource inputs and
  activities required to deliver each output.

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Examples

• Project
• Power station project
• Goal
• Economic development
• Purpose
• Electricity
• Outputs
• Power plant
• Inputs
• Resources and work

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Examples

• Project
• Fire hydrant project
• Goal
• Reduced fire losses
• Purpose
• Prevent and fight fires
• Outputs
• Fire hydrants
• Inputs
• Resources and work

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Project Management Success

• Meeting time, cost, and quality objectives
• Quality of the project management process
• Stakeholder satisfaction

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Quality of the project management process

• Anticipating all project requirements, having
  sufficient resources to meet project needs in a
  timely manner, and using these resources
  efficiently to accomplish the right task at the
  right time and in the right manner.
• Dealing with the issues early or as soon as they
  surface and keeping management informed.
• Effective coordination and relation patterns
  between project stakeholders, e.g., team sprit,
  participative decision making.

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Quality of the project management process

• Minimum scope changes, no disturbance to the
  organizations main flow of work, and no
  disturbance to corporate culture.
• Completeness of the termination, absence of post
  project problems, quality of post-audit analysis,
  identifying technical problems during the project
  and solving them.

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Product Success

• Meeting the project owners strategic
  organizational objectives (project goal)
• Satisfaction of users needs (project purpose)
• Satisfaction of stakeholders needs where they
  relate to the product.

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Some Characteristics

• One can succeed and fail.
• Project management success is subordinate to
  product success. Project management success
  influences product success.
• Success has hard and soft dimensions.
• Success is perceived.
• Success criteria must be prioritized.
• Success is affected by time.
• Success is not always manageable.
• Success may be partial.