project management techniques in context of product development

8/9/2019 Project Management Techniques in context of Product Development

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R. Attri Engineering Management Series, Paper No. 1, September 2005

Project Management

Techniques in context of

Product DevelopmentRaman K. AttriCertified Project Director Certified Quality Director Certified International Project Manager Certified Engineering Manager Certified Product Manager Certified Six Sigma Green Belt

[email protected]

Sept 2005 Design Managers Training Slides

Copyright 2005 Raman K. Attri



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What is Project management?

A structured

step

by

step

framework to process some defined inputs

to get a defined outputs

under a relatively

undefined

environmental

variables.



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Project Results vs product/mngt results

Product results:

such

as

deliverables

Management results: such as cost and schedule performance



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How Project success is defined?

Ontime Onbudget High quality (Functionality and Performance)



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Organizational Perspective on PM



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Domain Skills required by Project Manager

Business management: Organization skills and communication

Project management:

Strategies & methods

Technical: Domain knowledge of work

performed



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Leadership vs Management

Leader Manager

He acts like a magnet He acts like a Driver

He gives and create directions He ensure the flow in a particular direction

Established directions, vision of future and strategiesto achieve it

He follows the directions and establish the way toachieve that vision

Communicate the vision by words and deeds to alignthose people whose cooperation is needed to achieveit

Communicate vision by words and controls

He has vision of bigger canvas He visualize the achievements of specific targets

People automatically get attracted to him and followhim, without his saying so

He gather the people and drives them to a specificgoal

Inspire and motivate people and energizer them tocome out of the barriers

Inspire and motivate people to perform

Leaders are born Managers are produced

Leaders know how to make people do it themselves Managers know how to get it done

Mostly driven by vision, instincts and inner drives Mostly driven by strategies, calculations and plans



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Relation of Project management with other management disciplines



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Difference between various orgn structures for projects



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Organization Structures and Project Management

Functional projectised

Functional+

Projectised

ConventionalDeptts under

GM

PM as adepartment

PL or PMunderHOD

LiaisonBasedsharing

TFbased

sharing

MatrixOrgn.

Full

ProjectisedProgram

Based

PM1 PM2

Seriesofrelatedprojects

ProductOrientedStructure

PD1 PD2PJ1

PJ1

PJ1 PJ2

MK1DD1

MK2DD2

weak Bal. strong

Organisation



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Product vs Project Scope



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Scope Statement

Project Justification (business need for which project wasundertaken to address)

Project Product (summary fo the product description)

Product Deliverables (Summary of sub products tocomplete the project)

Project Objectives or Critical Success Factors (cost,schedule, quality measures which are quantifiable and arenecessary to meet to make project successful)



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The business case defines why the project is required and what the change is to be. The business case should include:

an outline of the projects objectives,

deliverables, time, cost, technical, safety, quality and other performance requirements, major project risks and upside opportunities. information on the competitive impact, resource requirements, organizational impacts,

key performance indicators and critical success factors of the project its outcome.

The impact of these factors, together with the results of other forms of appraisal, such asenvironmental appraisal, social impact, etc, should be periodically assessed during the course of theproject.

The sponsor, the person responsible for defining the business case and the development of the project

against the business case, should own the business case. The Business Case for the project, and its links to the projects justification, should be regularly reviewed. This will normally be done at key Investment Gates which will often coincide with otherformal strategic reviews.

Upon completion of the project there should be a formal evaluation of whether the project achievedits stated business benefits.

Business Case



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Product Scope and Project Scope

Scope

Product Scope

Features and functions that are to beincluded in the product

Measure of product scope iscompletion against requirements

Project Scope

Work that must be done to deliver thespecified product with specified features

Measure of project scope is completionagainst plan

Both types of scopes must be well integrated to ensure that the work of theproject delivers the product which meets the requirements

Project Management Product Design Management



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Product Design management Vs

Project Management



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Planning, Execution, Control Process go side by side



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Product Development Life Cycle

Research/ Idea Design Production Operate

Start production Deliver to customer Develop and designas per requirements

Get customerrequirements/ R& D/ Idea generation



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What is relation between Research, Design & Development?

Research: what best principle can be applied for current problem solution?

Design: Prepare a solution employing the identified principle to demonstrate its feasibility

Development: Test

and

modify

the

design

to

make

it

more

practical



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Product Design Life Cycle

Identify(Define) Design Construct(Optimize) Evaluate(Validate)

Make a prototypeand optimize thedesign

Validate the resultsof prototyping andprocess

Design the systemand find designparameters as per

customerrequirements

Define Customerrequirements



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Relation of Project & product Life cycle

Research Design Production/Development Operate

Start production Deliver to customer Develop and designas per requirements

Get customerrequirements/ R& D/ Idea generation

Identify(Define) Design

Construct(Optimize)

Evaluate(Validate)

Make a prototypeand optimize thedesign

Validate the resultsof prototyping andprocess

Design the systemand find designparameters as percustomerrequirements

Define Customerrequirements

Initiation

Plan

ning

Exec

ution

Contr ol

Close

out

Initiation

Plan

ning

Exec

ution

Contr ol

Close

out

PROJECT MANAGEMENT

PRO DUCT DEVELOPMENT LIFE CYCLE

PRO DUCT DESIGN LIFE CYCLE



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Product Design Management

A clear statement of requirements, leading to a clear detailed definition of specifications;

A proper constitution of the design team, with optimum input from all appropriate members of the project marketing, production, etc.;

A clear process plan and an optimum schedule, both for the design process itself and its relation with the rest of the project schedule;

Effective treatment of technology;

Effective modeling and testing; Proper deployment of value management and value engineering practices,

Clear input and control over project estimated out turn costs; A clear definition of the scope of work to be included; Effective change control, information management, and configuration

management; A meeting of all planning, health, safety, environmental and other legislative

requirements; Proper management of the Hand Over process



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Recurring Life cycle of Product Design Management (PDM)

There in reality nothing happens in phases in the project. The PDM occurs as spiral.



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VALIDATE

IDENTIFY

DESIGNOPTIMISE

I

DO

V

PHASE 1 and 2

(Conceptual Design)

Business Requt (I)

Concept Design (D)

Proof of Concept ( C)Risk Analysis (E)

PHASE 3(Preliminary Design)

System Requt (I)

Prilim Design (D)

Lab Prototype ( C)

DFX Evaluation (E)

PHASE 4

(Detailed Design)

Sub system reqt (I)Physical Design (D)

Prototype ( C)

Design of Exp (E)

PHASE 4

(Detailed Design)

Unit requit (I)

Final Design (D)

Pilot Build (C )

Test and Validation (E)


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Project Management Vs Product Design Management

PM is a best practice while PDM is a proven methodology PDM and PM goes parallel in integrated manner where products arebeing designed

PM is a bigger canvas which is used to manage the associatedprocesses for effective PDM

PM can manage much more than a line of products, while PDMconcerns with defect free quality of output product.

PM takes care of Project Management Processes to give projectquality, fulfill project scope and achieve business or management

objectives. PDM takes care of Product oriented processes to fulfill productscope, achieve customer satisfaction and design objectives



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What is the relation between DFSS and PM?

PM is on bigger canvas, organizational level activity concentratingon resources, people, customers, outputs and many other variables(may be within or outside projects). Starts well before Researchphase and goes to successful launch of product.

DFSS is methodologies to manage purely Design phase to produceerror free designs of the projects till the project is completed. DFSSis PDM.



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Product Vs Project Processes



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Project Management Processes and Product Oriented Processes

Project Management process: Concerns with describingand organizing the work of the project

Product processes: concerns specifying and creating theproject product.

Project Processes and Product Processes overlap eachothers and interact with each other through out theproject.

Scope of project can not be defined without some basicunderstanding of the product being created.



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PM process vs Product oriented Process?

PM process : takes care of management of Organization project relationship variables to ensure:

Achievement of organization goals through products Incubate the project baby and protect from external variables Process support for focused Product Development

Product Oriented Process : Takes care of management of variables, inputs and outputs to ensure

Achievement of product specific goals Design robustness Customer Requirements Defect Free output



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Project & Product Risk Management


R A i E i i M S i P N 1 S b 2005


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Risk Analysis and Management

Risk Identification

Risk Quantification

Risk ResponseDevelopment

RiskResponse

Control

Which risks are likely toaffect the project

What is the Severity or impact of the effectscaused by risks

Steps to be taken torespond to opportunitiesand threats

Responding to changesin risks

Risk Analysis / Assessment

Risk Mitigation

RiskManagement


R Attri EngineeringManagementSeries PaperNo 1 September2005


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Risk Quantification technique

Expectedmonetary value

(EV)StatisticalSums Simulation DecisionTree

RiskQuantific

ation

Product of two factors:

1. Risk probability (Chances of risk event happening)2. Risk Event value (estimatedMonetary loss or gain value if event occurs)

Calculation of

range of totalproject costs fromindividual costestimates of workitems

Simulation of project

many times to getstatistical distributionof schedules and risksassociated withschedule costs

Calculates estimated

monetary value of eachof the outcome comingthrough a decision. Itgives interaction of keydecisions and itsoutcomes.




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Project Performance Reporting




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What is performance reporting?

Status Reporting

Where the project stands now Progress Reporting

what the project team has accomplished? Forecasting

predicting future project progress and status What is reported:

Scope, Cost, schedule, quality, Procurement, risks,


R.Attri EngineeringManagementSeries,PaperNo.1, September2005


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Project Performance Reporting techniques

Project Status Review Meetings Cost and Schedule variance Analysis (Comparing Actualresults to planned results)

Trend Analysis of project performance over time (if it isimproving or deteriorating)

Earned value (Budgeted cost of work performed) analysis




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g g g , p , p

EV For performance reporting

BCWS: approved costs to be spend on an activity in a given time

ACWP: actual cost of work performed under that activity EV= BCWP: percentage of total budget equal to percentage of actual work performed Cost Variance CV= BCWS ACWP Schedule Variance SV= BCWPBCWS Cost Performance Index CPI= BCWP/ACWP (used for forecasting project completion cost)

Schedule Performance index SPI= BCWP/BCWS (used to forecast project completion dates




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Project and Product Quality




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What is meaning of quality?

Minimum possible waste of resources and error free output

Quality means observing error free processes close to the best to achieve:

Less cost

Less errors and variance in process Defect free products Customer satisfaction Meeting schedule Meeting budget Best use of resources




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Project Quality vs Product Quality

Quality Management should take care of 2 things

Quality of the project (on time and on budget) Quality of product (as per customer needs, defectfree)

The enterprise wide management processes complements

the Project Management and Product processes.



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Product Quality and Project Quality?Enterprise level Quality Standards (TQM, ISO)

Project Quality Product Quality

Project management Best PracticePRINCE2ISO10006

Project Design Management Proven MethodologyDFSS

DMAICStageGATE2

Extensive Risk analysis of threats & opportunities &its management across businessBy proper scheduling and cost analysis for on-timeand on-budget completionReusable pre-tested modules to use off-the shelffor quick and assured completion

Proper flow down and mapping of requirementsthrough QFDProper full proof design methods which preventdefectsExtensive FMEA analysis on process anddesign




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Product Quality CriteriaEnterprise level Quality Standards (TQM, ISO)

Project Quality Product Quality

Project management Best PracticePRINCE2ISO10006

Project Design Management Proven Methodology

DFSSDMAIC

StageGATE2

Extensive Risk analysis of threats &opportunities & its managementacross business

By proper scheduling and costanalysis for on-time and on-budgetcompletionReusable pre-tested modules to useoff-the shelf for quick and assuredcompletion

Customer Quality Engg Quality

The features that customers want:includes items such as function,features, colors and designs. The betterthe customer quality, the bigger the

market size becomes

The problems customers do notwant. includes defects, failures,noise, vibration, unwantedphenomena, lowering the cost of

manufacture, and minimizingmanufacturing problems

QFD DFSS, DFMEA, RD, TD




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Quality Planning, Assurance and ControlQuality Planning

Quality Assurance

QualityControl

preparation, checking, andrecording of actionsthat are necessary toachieve the standard of

product or service that thecustomer and legislationrequires.

set of processes andprocedures required to

demonstrate that the work hasbeen performed according tothe quality plan.

set of processes for planning

and monitoring theproject to ensure that qualityis being achieved.




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Tools for Quality Planning

Benefit/ Cost Analysis

BenchMarking

DesignofExperiments

Quality

Planning

Benefit of spendingon quality control vsbenefits in cost savedon rework

To provide standardsagainst which theperformance is to bemeasured

Analytical techniquewhich helps identifying

which variable has themaximum effect on theoutcome

FlowCharting

Used to analyze how aproblem is occurring in

the process

Use C& E diagramsProcess Flow charts




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Tools for Quality Control

InspectionControlCharts

ParetoDiagram

StatisticalSampling

QualityControl

Measuring,examiningand testingat any level

Graphical results of the project over thetime in form of achart indicatingmaximum andminimumspecification limits

Histogram showingthe frequency of occurrence of acause again andagain i.e. number of defects vs variouscategories of cause

A selectedsamplingfrom apopulationof interest

Trend Analysis

FlowCharting

Used to analyzehow a problem isoccurring in theprocess

Amathematicaltechnique tofind the futuretrends basedon historicalresults




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Quality Management Approaches

Standards Proprietary Approaches

Non-Proprietary Approaches

QualityManagement Approaches

ISO 9000

ISO 10000

Juran

DemingCrosby

Total Quality Management(TQM)Continuous Improvement




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Total Quality Management in context of Project Management

Total Quality Management is a much broader and more ambitious system (philosophy) for

identifying what the client really wants,

defining the organisations mission,

measuring throughout the whole process how well performance meets the required standards,

and involving the total organisation in the

implementation of

a deliberate

policy

of

continuous

improvement.




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Project Scheduling




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What is difference between Activity and Process?

Process : It is an defined way to control the effect of undefined variables on defined inputs to make them shine better in formsof defined outputs

Activity : It is combination of defined tasks which are grouped onsome basis to accomplish a Defined Process




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Project Schedule Development Tools

Mathematical analysis CPM GERT PERT

Duration Compression Crashing Fast Track

Simulation Resource Leveling heuristics PM software




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CPM

Calculated single deterministic time of early and late startand finish timings

Takes input as fixed network logic and fixed single durationestimate

Focus is on calculating the float for each activity to see which has least flexibility of schedule. Used most likely time of finish of each activity.



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GERT

Allow probabilistic treatment of both network logic andthe activity durations

Some activities may not be performed at all, some may beperformed in part and other may be performed more than

once




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PERT

Uses sequential logic and probabilistic time of activities.

Use weighted average duration based on optimistic , pessimistic and most likely times to calculate project duration




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Activity Duration Estimation

ActivityEstimation

AnalogousSimulation

Monte CarloSimulation

Using actual duration of previous similar activity tofind duration of the futureactivity

Calculated the multiple setsof durations with differentassumptions and finddistribution of probabledurations

ExpertJudgment

Expert judgment of theindividual linked to historicaldata




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Ways of presentation of Project ScheduleSchedule

ProjectNetworkdiagram Bar Gantt

ChartsMilestone

chartsTime scalednetworks

Shows project

logic aw well asdates alongwithCP

Activity start andend dates withexpected durationsbut do not showthe dependencies

Similar to Bar charts but showsschedule start or finish of importantmilestones

Blend of NW logic,activities duration,schedule start andfinish dates andfloats also.



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Activities Sequencing Techniques

ActivitySequencing

Arrow DiagramMethod

ConditionalDiagram Method

AOA and nodes show the connectiondependencies. Uses only finish-to-start dependencies and requiredummy activities to define networklogic correctly

GERT etc allows the networkdiagram with non-sequentialactivities like loops

PrecedenceDiagram Method

AON and arrows show thedependencies. Uses mostly finish-to-start relationship.




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Put it

all

together

Project

Planning

&

Control




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How Scope, Schedule, Resources and Costing are connected together?




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Overall Integration of Project Plan, Execution and Control Elements

Three elements are integrated intoINTEGRATION MANAGEMENT

1. Project Plan Development

2. Project Execution

3. Overall Change Control1. Project PlanDevelopment

Other planning outputs

Organizational policies

Project Planoutputs

inputs




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Techniques for Change Control

Change Control

ConfigurationManagement

Performancemeasurement

Documented procedure to identify andmake changes, control changes andimplement changes in the characteristics of the item and to ensure that description of item is correct and complete

Performance measurement techniqueslike Earned values, variances etc toindicate the necessary corrective actions

ChangeControl System

Collection of formal documentedprocedures defining steps by which anychange can be implemented



Performance

OverallChange

CONTROL


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SchedulePlanning

OrgnPlanning

Risk Identification

Risk Response Dev

Resource

Planning

CostPlanning

ActivityDefinition

ActivitySeq

ActivityDuration

ScheduleDev

ResourceLeveling

Resource

Allocation

CostEstimating

CostBudgeting

Risk MngtPlanning

ProjectPlanning

ScopePlanning

ScopeDefinition

Staff Acquisition

QualityPlanning

Commn

Planning

SolicitationPlanning

ProcurementPlanning

TeamDev

ScopeVerification

Quality Assu rance

InformationDistribution

Solicitation SourceSelectionContract Admin.

Risk quantification

ScopeChangeControl

Quality

Control

PerformanceReporting

Risk

Contl

CostCtrl

ScheduleCtrl

gControl

EXECUTION

PLANNING




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What are current PM standards / maturity Models?

PMIs PM Book of Knowledge 2009

ISO s 10006:1997 Guidelines for quality Project Management PRINCE2 (Projects IN Controlled Environment) Agile Method Serum




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Project Learning




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Why to accumulate learning?

TO SQEEZ SUBSEQUENT PRODUCT DESIGN CYCLES

Every products design is iterated 4 times: Conceptual, Preliminary,Detailed, Prototype

Every iteration generates 10 lessons

Every project generate: 40 learning For 10 projects a year: total 400 learning Over 5 years period: 2000 learning

The new designer will have 2000 DONTS and 2000 DOs, directly start working with proven design.




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Authors contact

About Author: Author is Global Learning and Training Consultant. He has over 15 years of project management,product development and quality management experience in leading MNC product developmentcorporations. He has earned numerous international certification awards Certified ManagementConsultant (MSI USA/ MRA USA), Certified Six Sigma Green Belt Professional (Six Sigma India),Certified Quality Director (ACI USA), Certified Engineering Manager (SME USA), Certified ProjectDirector (IAPPM USA), to name a few. He holds MBA, Executive MBA, Masters in Technology andBachelor in Technology. In addition to this, he has 60+ educational qualifications, credentials andcertifications in his name. His research and training interests are in learning, development, performance

management, research management and product development. Email: [email protected] Website: http://sites.google.com/site/ramankumarattri LinkedIn: http://www.linkedin.com/in/rkattri/

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project management techniques in context of product development

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