Download - Installation Planning & Project Management

Installation Planning & Project Management

Johnny LindstromWestport Yachts, WA

Sanibel Florida

Project Management to increase Profit through Productivity

Execution in Production “Do it right and do it once”

Agenda

• The Case for Project Management

• The Benefits of Project Management

• Common Elements of Project Management

• Project Management in Action


The Case for Project Management

The Case for Project Management “Profit Through Productivity”

The VALUE PROPOSITION to the Client

• Complete Project Management… for controlling project scope

• Complete Project Management… for controlling project schedule

• Complete Project Management … for controlling project costs •

Effective Project Management


The VALUE PROPOSITION to You • Complete Project Management… for controlling project scope

• Complete Project Management… for controlling project schedule

• Complete Project Management … for controlling project costs Project Management is important to YOU for the SAME REASONS

Effective Project Management


An “epic fail” of engineering taught to school children for centuries…

• On August 9, 1173, construction began on the first floor of this well known Italian bell tower.

• Almost immediately, it began leaning because it was being erected on the soft silt of a buried riverbed.

• Between 1178 and 1360, work stopped and started two more times as workers tried to continue the project and figure out how to compensate for the tilt… ALMOST 200 YEARS!

IF YOU DO NOT DESIGN IT CORRECTLY IN THE FIRST PLACE, YOU WILL BE MAINTAINING IT FOREVER.

Efficiency in Construction (the closest analogy to our installation activity)


Studies suggest that between 70% and 90% of projects exceed the original planned cost and that the overrun commonly varies between 50% and 100% of budget. Some well known examples of significant project overruns include…


Efficiency in Construction


(the closest analogy to our installation activity)

Channel Tunnel… … Final cost 80% more

than originally planned


Boston’s Big Dig / Central Artery…

… Final cost 196% more than originally planned



Efficiency in Construction

Sydney Opera House… … Final cost 15X planned

(the closest analogy to our installation activity)

The case for Project Management “Profit Through Productivity”

Productivity is the measure of Labor Dollars spent for tasks completed

Some interesting data to look at…

Productivity in Construction


Causes of Construction Overruns (from “Agile & Lean Construction” SEP2011, Dr. Adrian Smith)

• Poor or incomplete design and documentation • Client scope change during construction • Mistakes during construction • Delays in decision making or instructions • Poor communications and information dissemination • Poor planning and scheduling • Weather • Labor skills, availability or disputes • Incorrect material types or quantity

Construction vs. Manufacturing Productivity

• When compared with manufacturing, the breakdown of time spent on value added and non-value added activities is significantly different. In construction studies suggest that construction labor spends around 57% of effort on non-value added activities compared with 26% within manufacturing.

• This suggests that causal factors such as materials, quality, change, and ineffective coordination are adversely affecting productivity in a dramatic way.


The Benefits of Project Management

The Benefits of Project Management “Profit Through Productivity”

Philosophy behind Proper Planning A historic “success story” of engineering RARELY taught to school children…

• On March 17, 1930, construction began

• Completed May 1, 1931

• Construction budget $50,000,000

• Construction cost $24,718,000

(less than 50% of budget!)

DESIGNING IT CORRECTLY IN THE FIRST PLACE, YOU WILL BE ENJOYING IT FOREVER.

It began with a well thought out technical plan

It continued under careful scrutiny for technical adherence to the plan

It employed technical people capable of following the plan

Philosophy behind Proper Planning Reasons for the success of the Empire State Building project…


The 80/20 rule and it’s effect on project progress…

So what is it that “makes us the most money”?

What does this principle in action look like in marine electronics projects?


Where Effort is Proper Planning and Results are Labor Productivity

The ideal scenario of the effect of proper planning on project progress…

Here Labor is “thrown at the job” in an effort to overcome the lack of proper planning with poor results

Unfortunately the typical Custom Integrators project profile looks more like this…

Effort and Results


ALL of the same decisions about the project get made…

In this mode of operation,

They just get made… • Under duress • With fewer options • At higher costs • With the greatest compromise of

original intent

To summarize the above… The team is running on empty with the fewest options to figure out how to get as much possible to the client of what he paid for while paying the greatest cost possible to do so…

Effort and Results


Effects of Lack of Proper Project Planning: (from over twenty five years of personal observation)

• Lack of coherent vision of outcome • Increased project cost due to additional labor • Increased project cost due to overtime • Increased project cost due to freight • Increased project cost due to emergency

parts purchase • Scheduling interruptions due to “fires” • Poor employee morale due to low productivity

• Disappointed clients with delayed deliveries

• Lack of ZERO-DEFECT deliveries • Loss of income from other clients who

we cannot get to due to overruns • Clients who are told how well our

process works that do not see it

Obviously NOT a recipe for success in the long term!


IT IS THE SINGLE MOST IMPORTANT PART OF ANY INSTALLATION PROJECT!

Effects of Lack of Proper Project Planning: (from over twenty five years of personal observation)

Or maybe the tag line could read…

“I’d like to have the benefits of project management as soon as I can get time to do project management”



Common Elements of Project Management

Common Elements of Project Management “Profit Through Productivity”

What is a Project? Taken from the Project Management Institute (PMI)

“A temporary endeavor undertaken to create a unique product, service, or result.” “A project has a beginning, and end, and it creates something unique.”


Some Common Terms

Sponsor – The individual or entity holding the budget and responsible to the company for the project;

Stakeholders – The non-team individuals or entities that will be affected by the execution of the project;

Scope – A project is defined by what it will and won’t do. These are the boundaries of the project;

Scope Statement – A written document detailing the scope of the project as understood by the Sponsor and Stakeholders;

Project Terminology


A Problematic Term

Scope Creep – Refers to uncontrolled changes or continuous growth in a project's scope. This phenomenon can occur when the scope of a project is not properly defined, documented, or controlled. Typically, the scope increase consists of either new products or new features of already approved product designs, without corresponding increases in resources, schedule, or budget. As the scope of a project grows, more tasks must be completed within the budget and schedule originally designed for a smaller set of tasks. If the budget and schedule are increased along with the scope, the change is usually considered an acceptable addition to the project, and the term “scope creep” is not used.

Project Terminology


Some Common Causes

A disingenuous customer with a determined "value for free" policy;

Poor change control;

Lack of proper initial identification of what is required to bring about the project objectives;

A weak project manager or executive sponsor;

Poor communication between parties;

Scope Creep

Assuming a 25% GPM how much scope creep can you absorb before the project will fail to produce a profit?


Some Common Terms

WBS – The Work Breakdown Structure is a non-linear hierarchical graphical representation of the work required to do the project;

Dependencies – The logical order of operations of tasks along a timeline defines the work that must be completed before another task can begin;

Duration – The actual “calendar” time it will take to complete a work package or task;

Effort – The time it will take to do a task if everything and everyone you need was available;

Project Terminology


Project Managers Must Have Strong…

Communications Skills A Project Manager is the hub between the Project Sponsors, the Team, External Stakeholders, and perhaps the Client(s); Conflict Management Skills A project drives change within an organization and change brings conflict. Various schedules need to be managed to satisfy numerous stakeholders;

Important Skills


Project Managers Must Have Strong…

Facilitation Skills Projects require routine meetings (formal and informal) throughout their lifecycle. Good project managers keep meetings on task and on time; Team Leadership Skills A project involves numerous team members who typically have no direct reporting relationship to the PM;

Important Skills


Thoughts on Team Leadership…

“A project is successful because of people, not because tasks were completed on time”

Project Managers typically operate in a mode of management without authority. A PM may not have the ability to keep another stakeholder (eg – painter) from delaying the project schedule, but they certainly have to deal with the results of it!

Successful projects are globally perceived as collaborative, rather than directed, efforts by team members & stakeholders

Important Skills


Project Management In Action

Project Management in Action “Profit Through Productivity”

Projects have a beginning and an end…

Project Lifecycle

Or in less formal terminology


Project Initiation

Understand the Project What is the project supposed to do? What will be the features of the completed work? What will determine if this project is successful?

Project Lifecycle


Project Lifecycle


Project Initiation

Understand Your Boundaries What is the budget for the project? What is the deadline for completion? What factors have the greatest impact and what can you do (if anything) about them?

Project Lifecycle


Statement of Work

Areas that are typically addressed by a SOW are as follows:

Purpose: Why are we doing this project? Scope of Work: Describes roughly the work that must be done; Location of Work: Describes where the work will happen Period of Performance: Specifies the allowable time Deliverables Schedule: Lists the specific deliverables Applicable Standards: Describes any specific standards Acceptance Criteria: Specifies how the receiver of goods will determine if the product or service is acceptable

Project Lifecycle


Creating the Plan The steps to create a plan are:

• Identify the Stakeholders; • Hold the planning meeting and create a WBS; • Review & confirm new scope items with the Sponsor; • Create the schedule and validate it with the team;

Project Lifecycle


Identify the Stakeholders

Identify the areas touched by the project and invite people (stakeholders) to the planning meeting who represent those areas. This is important because these are the people who will know what work needs to be done;

Does the boat need to be hauled? Are carpenters involved? Varnish work? Welding? Interior or Exterior paint?

Stakeholders have their own agendas and you have to identify who they are and how they will impact your project before you attempt a plan. Keep in mind, you are a Stakeholder to another PM working on this project

Project Lifecycle


Planning Meeting and WBS Development

Hold the planning meeting to create the Work Breakdown Structure (WBS). This is a representation of the work of the project, it is used to create your schedule;

What is a Work Breakdown Structure? A WBS displays the relationship of each task to the other tasks, to the whole and the end product (goal or objective). It shows the allocation of responsibility, and identifies resources required and time available, at each stage for project monitoring and management. Also called activity decomposition chart.

Project Lifecycle


Project Lifecycle


WBS and the 100& Rule One of the most important work breakdown structure design principles is called the 100% rule.

The 100% rule states that the WBS includes 100% of the work defined by the project scope and captures all deliverables – internal, external, interim – in terms of the work to be completed, including project management. The 100% rule is one of the most important principles guiding the development, decomposition and evaluation of the WBS. The rule applies at all levels within the hierarchy: the sum of the work at the “child” level must equal 100% of the work represented by the “parent” and the WBS should not include any work that falls outside the actual scope of the project

Project Lifecycle


Confirm Scope

At this stage, you know more about the project environment because you have reviewed other aspects of the project with the stakeholders involved.

What if you learned about work unrelated to your scope? For example your project scope may change if…

The arch will be removed for painting The tower needs welding repairs done The pilothouse area will only be available to you on Tuesdays

Project Lifecycle


Create the Schedule You’ve learned how your work will be affected by others, you’ve adjusted your scope if necessary, now it’s time to put the WBS into a timeline or schedule.

Enter, the Gantt Chart…

Project Lifecycle


A basic Gantt chart showing WBS and dependencies

Project Lifecycle


The Gantt chart from the current WBS example

Project Lifecycle


Creating the Gantt Chart

Creating the schedule involves talking to your team members, getting their ideas on what work needs to be done first, how long it will take them and asking again if there is anything missing. Your best approach here is to talk to the people who will do the work since they know the most about how long it will take. There are a lot of techniques to gather an estimate of the time it takes to do a project task, but you only need to know enough about it to feel confident that the timeline is accurate.

Project Lifecycle


Creating the Gantt Chart

The first thing to understand is the difference between effort and duration.

Effort is what time the work would take if there were no interruptions, no other priorities, and you didn’t have to wait for anyone or anything. (ex - If I have to write an email it might take 5 minutes of effort. But if someone calls me in the middle of it, then I have to go to a meeting, and then someone needs a decision).

This means that the duration of writing the email could be 3 hours or all day.

Project Lifecycle


Working the Plan

Projects Managers will be most effective if they let their team do their job without micro-managing. These three questions for each individual work package of the WBS, will facilitate the execution:

• Are you ready to start? If there is something in the way, how do we fix it?

• Have you started? (It’s a good idea to clarify whether work is started)

• About 2/3 of the way through the timeline of that work package, “will you finish on time?”.

Project Lifecycle


Risk Management

Risks are events that can affect your project (positively and negatively) that can be predicted. Risk identification and planning can start at the planning stage and will continue until you are almost done. Avoid - This strategy means what it says. You do everything you can to avoid the risk arising. Mitigate- You may not be able to avoid, but you can minimize the impact Accept - Some risks can only be accepted. Transfer - The impact of some risks can be transferred, at a cost, to someone else. Exploit - Some risks are opportunities in disguise. An opportunity will have an impact on your project, but you might want to make it happen.

Project Lifecycle


Wrapping Up

When the project is finished, the closeout phase must be implemented as planned.

Project closing should take no more than 2% of the total effort required for the project. Project management literature from various sources have many different sets of actions for the last phase of the project life cycle.

In general, there is a six step procedure, which can differ depending on the size and the scope of the project:

Project Lifecycle


Step 1 - Completion

First of all, the project manager must ensure the project is 100% complete. It is quite common to find a number of outstanding minor tasks from early key stages still unfinished. They are not critical and have not impeded progress, yet they must be completed.

Furthermore, some projects need continuing service and support even after they are finished, such as IT projects. While it is helpful when this demand is part of the original statement of requirements, it can be part of the contract closeout.

Project Lifecycle


Step 2 - Documentation

Documentation is any text or pictorial information that describe project deliverables. It is imperative that everything learned during the project, from conception through initial operations, should be captured and become an asset. A detailed documentation will allow future changes to be made without extraordinary effort since all the aspects of the project are written down. Despite the uninteresting nature of documenting historical data, the person responsible for this task must engage actively with his assignment.

Project Lifecycle


Step 3 – Project System Closure

All project systems must close down at the closeout phase. This includes the financial systems, therefore all payments must be completed to external suppliers or providers and all work orders must terminate.

In closing project files, the project manager should bring records up to date and make sure all original documents are in the project files and at one location.

A desirable result of formal closure is that unnecessary charges can be avoided by unauthorized expenditure and clients will understand that they can not receive additional services at no cost.

Project Lifecycle


Step 4 – Project Reviews

The project review comes usually comes after all the project systems are closed. It is a bridge that connects two projects that come one after another. Project reviews transfer not only tangible knowledge such as numerical data of cost and time but also the tacit knowledge which is hard to document. ‘Know-how’ and ‘know-why’ are passed on to future projects in order to eliminate the need for project managers to ‘invent the wheel’ from scratch every time they start a new project. The reuse of existing tools and experience can be expanded to different project teams of the same organization in order to enhance project results.

Project Lifecycle


Step 5 – Disband the Project Team

Before reallocating the staff amongst other resources, closeout phase provides an excellent opportunity to assess the effort, the commitment and the results of each team member individually.

Project Lifecycle


Step 6 – Stakeholder Satisfaction

PMI’s PMBoK defines that “actions and activities are necessary to confirm that the project has met all the sponsor, customer and other stakeholders’ requirements”. Such actions can be a final presentation of the project review which includes all the important information that should be published to the stakeholders. This information can include a timeline showing the progress of the project from the beginning until the end, the milestones that were met or missed, the problems encountered and a brief financial presentation.

Project Lifecycle

A well prepared presentation which is focused on the strong aspects of the projects can cover some flaws from the stakeholders and make a failure look like an unexpected success.

Execution in Production “Do it right and do it once” AND DON’T DO IT OVER…

Questions?

Download - Installation Planning & Project Management

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