Installation Planning & Project Management

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<ul><li><p>InstallationPlanning&amp;ProjectManagement</p><p>JohnnyLindstromWestportYachts,WA</p><p>SanibelFlorida</p></li><li><p>Project Management to increase Profit through Productivity </p><p>Execution in Production Do it right and do it once </p><p>Agenda </p><p> The Case for Project Management </p><p> The Benefits of Project Management </p><p> Common Elements of Project Management </p><p> Project Management in Action </p></li><li><p>Project Management to increase Profit through Productivity </p><p>The Case for Project Management </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p> The VALUE PROPOSITION to the Client </p><p> Complete Project Management for controlling project scope </p><p> Complete Project Management for controlling project schedule </p><p> Complete Project Management for controlling project costs </p><p>Effective Project Management </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p> The VALUE PROPOSITION to You Complete Project Management for controlling project scope </p><p> Complete Project Management for controlling project schedule </p><p> Complete Project Management for controlling project costs Project Management is important to YOU for the SAME REASONS </p><p>Effective Project Management </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p>An epic fail of engineering taught to school children for centuries </p><p> On August 9, 1173, construction began on the first floor of this well known Italian bell tower. </p><p> Almost immediately, it began leaning because it was being erected on the soft silt of a buried riverbed. </p><p> 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! </p><p>IF YOU DO NOT DESIGN IT CORRECTLY IN THE FIRST PLACE, YOU WILL BE MAINTAINING IT FOREVER. </p><p>Efficiency in Construction (the closest analogy to our installation activity) </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p> 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 </p><p>Efficiency in Construction (the closest analogy to our installation activity) </p></li><li><p>Efficiency in Construction </p><p>The Case for Project Management Profit Through Productivity </p><p>(the closest analogy to our installation activity) </p><p>Channel Tunnel Final cost 80% more </p><p>than originally planned </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p> Bostons Big Dig / Central Artery </p><p> Final cost 196% more than originally planned </p><p>Efficiency in Construction (the closest analogy to our installation activity) </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p>Efficiency in Construction </p><p>Sydney Opera House Final cost 15X planned </p><p>(the closest analogy to our installation activity) </p></li><li><p>The case for Project Management Profit Through Productivity </p><p>Productivity is the measure of Labor Dollars spent for tasks completed </p><p>Some interesting data to look at </p><p>Productivity in Construction </p></li><li><p>The Case for Project Management Profit Through Productivity </p><p>Causes of Construction Overruns (from Agile &amp; Lean Construction SEP2011, Dr. Adrian Smith) </p><p> 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 </p></li><li><p>Construction vs. Manufacturing Productivity </p><p> 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. </p><p> This suggests that causal factors such as materials, quality, change, and ineffective coordination are adversely affecting productivity in a dramatic way. </p></li><li><p>Project Management to increase Profit through Productivity </p><p>The Benefits of Project Management </p></li><li><p>The Benefits of Project Management Profit Through Productivity </p><p>Philosophy behind Proper Planning A historic success story of engineering RARELY taught to school children </p><p> On March 17, 1930, construction began </p><p> Completed May 1, 1931 </p><p> Construction budget $50,000,000 </p><p> Construction cost $24,718,000 </p><p>(less than 50% of budget!) </p><p>DESIGNING IT CORRECTLY IN THE FIRST PLACE, YOU WILL BE ENJOYING IT FOREVER. </p></li><li><p>It began with a well thought out technical plan </p><p>It continued under careful scrutiny for technical adherence to the plan </p><p>It employed technical people capable of following the plan </p><p>Philosophy behind Proper Planning Reasons for the success of the Empire State Building project </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>The 80/20 rule and its effect on project progress </p><p>So what is it that makes us the most money? </p><p>What does this principle in action look like in marine electronics projects? </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>Where Effort is Proper Planning and Results are Labor Productivity </p><p>The ideal scenario of the effect of proper planning on project progress </p><p>Here Labor is thrown at the job in an effort to overcome the lack of proper planning with poor results </p><p>Unfortunately the typical Custom Integrators project profile looks more like this </p><p>Effort and Results </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>ALL of the same decisions about the project get made </p><p>In this mode of operation, </p><p>They just get made Under duress With fewer options At higher costs With the greatest compromise of </p><p>original intent </p><p>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 </p><p>Effort and Results </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>Effects of Lack of Proper Project Planning: (from over twenty five years of personal observation) </p><p> 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 </p><p>parts purchase Scheduling interruptions due to fires Poor employee morale due to low productivity </p><p> Disappointed clients with delayed deliveries </p><p> Lack of ZERO-DEFECT deliveries Loss of income from other clients who </p><p>we cannot get to due to overruns Clients who are told how well our </p><p>process works that do not see it </p><p>Obviously NOT a recipe for success in the long term! </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>IT IS THE SINGLE MOST IMPORTANT PART OF ANY INSTALLATION PROJECT! </p><p>Effects of Lack of Proper Project Planning: (from over twenty five years of personal observation) </p><p>Or maybe the tag line could read </p><p>Id like to have the benefits of project management as soon as I can get time to do project management </p><p>The Benefits of Project Management Profit Through Productivity </p></li><li><p>Project Management to increase Profit through Productivity </p><p>Common Elements of Project Management </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>What is a Project? Taken from the Project Management Institute (PMI) </p><p> A temporary endeavor undertaken to create a unique product, service, or result. A project has a beginning, and end, and it creates something unique. </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Some Common Terms </p><p>Sponsor The individual or entity holding the budget and responsible to the company for the project; </p><p>Stakeholders The non-team individuals or entities that will be affected by the execution of the project; </p><p>Scope A project is defined by what it will and wont do. These are the boundaries of the project; </p><p>Scope Statement A written document detailing the scope of the project as understood by the Sponsor and Stakeholders; </p><p>Project Terminology </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>A Problematic Term </p><p>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. </p><p>Project Terminology </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Some Common Causes </p><p> A disingenuous customer with a determined "value for free" policy; </p><p> Poor change control; </p><p> Lack of proper initial identification of what is required to bring about the project objectives; </p><p> A weak project manager or executive sponsor; </p><p> Poor communication between parties; </p><p>Scope Creep </p><p>Assuming a 25% GPM how much scope creep can you absorb before the project will fail to produce a profit? </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Some Common Terms </p><p>WBS The Work Breakdown Structure is a non-linear hierarchical graphical representation of the work required to do the project; </p><p>Dependencies The logical order of operations of tasks along a timeline defines the work that must be completed before another task can begin; </p><p>Duration The actual calendar time it will take to complete a work package or task; </p><p>Effort The time it will take to do a task if everything and everyone you need was available; </p><p>Project Terminology </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Project Managers Must Have Strong </p><p> 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; </p><p>Important Skills </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Project Managers Must Have Strong </p><p> 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; </p><p>Important Skills </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Thoughts on Team Leadership </p><p>A project is successful because of people, not because tasks were completed on time </p><p>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! </p><p>Successful projects are globally perceived as collaborative, rather than directed, efforts by team members &amp; stakeholders </p><p>Important Skills </p></li><li><p>Project Management to increase Profit through Productivity </p><p>Project Management In Action </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Projects have a beginning and an end </p><p>Project Lifecycle </p><p>Or in less formal terminology </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Project Initiation </p><p> 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? </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Project Initiation </p><p> 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? </p><p>Project Lifecycle </p></li><li><p>Common Elements of Project Management Profit Through Productivity </p><p>Statement of Work </p><p>Areas that are typically addressed by a SOW are as follows: </p><p>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 </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Creating the Plan The steps to create a plan are: </p><p> Identify the Stakeholders; Hold the planning meeting and create a WBS; Review &amp; confirm new scope items with the Sponsor; Create the schedule and validate it with the team; </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Identify the Stakeholders </p><p>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; </p><p>Does the boat need to be hauled? Are carpenters involved? Varnish work? Welding? Interior or Exterior paint? </p><p>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 </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Planning Meeting and WBS Development </p><p>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; </p><p>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. </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>Project Lifecycle </p></li><li><p>Project Management in Action Profit Through Productivity </p><p>WBS and the 100&amp; Rule One of the most important work breakdown structure design principles is called the 100% rule. </p><p>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....</p></li></ul>