project managementday 2 in the am project management (pm) plan
TRANSCRIPT
Project Management Day 2 in the am
Project Management (PM)
PLAN
Project Management Cook Day 2 in the am # 2 / 30
The Planning Process
Project Management Cook Day 2 in the am # 3 / 30
Scope Management Progression
Conceptual: Realization of problem & project based solution
Initiation: specify a rough statement at the beginning of a project or commencement to the next phase (e.g., Charter)
Planning: developing documents to provide the basis for future project decisions
Definition: subdividing the major project deliverables into smaller, more manageable components
Verification: formalizing acceptance of the project scope
Change control: controlling changes to the project scope
Project Management Cook Day 2 in the am # 4 / 30
Business Context
Our 4,000 person SuZhou SOE is to be privatized in 2 years We make washing machines with a factory cost of 600 RMB
and are having difficulty selling them retail at 800 Haier easily sells a comparable model for 1,500 RMB The Int’l Appliance Show showed many Chinese brands, but
only Haier & famous Japanese brands fared well afterwards Our distributors complain of appearance, quality & image Our slow/no debt repayment has cut off bank financing We have until 2003.7.1 to have a new plant operational This is a desperate situation, nothing is sacred: not location,
not technology, not brand, not even time and budget Next president will probably be one of the project leaders!
Project Management Cook Day 2 in the am # 5 / 30
Lu Shan Manifesto (initiation)
Five Projects would be started: Raise capital (sell RE development rights) Re-engineer company (no slack; no work = no pay) Develop new prototype (negotiate with marketing) Get Production ready (hi quality, subcontract) Plan market transition (kill old, launch new)
Our “new green baby” is to be launched on 6.1 and be low energy and low water with a new brand name & positioning
On 2002.12.2 project leaders will deliver “Project Plan”
Project Management Cook Day 2 in the am # 6 / 30
Project Leaders Presentation
“We can deliver!” But, we need: Sponsor: Chairman, Organization: Project Style: Autonomous, Priority: Dedicated, Talent: Negotiated Resources: (through 2003.7.1)
Budget: M RMB 1.25 (+/- 20%, -3.35 savings) in new funding Milestones: 2.17 mock-up, 4.16 exposition, 5.15 pilot, 6.1 Launch Talent: Huang Da, Finance; Song MaiLing, Marketing; Liang SiLi,
Engineering; Chen Yun, Manufacturing; and Chairman Liu ShaoQi Freedom: New brand, new positioning, and expanded subcontracting
Goals: New product line image: “green”, “smart”, moderate price, low cost Good reviews after exposition
Project Management Cook Day 2 in the am # 7 / 30
Problem / Opportunity
Market perceives our products as too traditional and undifferentiated
Using current technology, we can create the perception of offering greater value while holding our costs in line
Need to target to upscale, younger urban apartment owner
Must avoid a major redesign of our core technology
Take 2 ideas from Japanese: subcontract and reposition
Create a new model line at incremental development costs
Must move very fast; exposition is in April 2003, or lose a year!
Gain market share with environment & energy conservation
Project Management Cook Day 2 in the am # 8 / 30
Goals
Revitalize the company with a new product line, targeted marketing, upscale positioning, and low cost digital technology, but based on our core values and capabilities
Revitalize finances by focusing on core capabilities in assembly, platform, and marketing; shed non-performing assets; subcontract rest
Possibly, use the success of the project to legitimize a successor to the retiring president
Project Management Cook Day 2 in the am # 9 / 30
Objectives
Launch a new brand based on “Upscale Conservation” on 2003.5.15 – 6.1
Design, develop, and produce new product by 2003.7.1
Have a successful exposition with visitors, distributors, and press coverage all up over 100% over previous year
Distribute without resistance for 150% of production costs
Sales up by 50% during last half of 2003, double in 2004
Meet or exceed all current product quality measures
Project Management Cook Day 2 in the am # 10 / 30
Getting Started
Line up appropriate “symbolic” sponsor
Quickly assemble a strong project team
Get key stakeholders involved in the project early
Prepare a detailed analysis of the business problem & solution and develop project measurement techniques
Use a phased, architect-ed approach
Make a project charter that formally recognizes the project and provides direction, objectives & budjet
Get sponsor, management & key stakeholders to agree
Project Management Cook Day 2 in the am # 11 / 30
Phoenix Project Charter Name: Phoenix Project (Engineering - new product line)
Start: 2002.11.11 Finish: 2003.6.30 Sponsor: Liu ShaoQi
Manager: Liang SiLi, x6125 [email protected]
Objective: Develop a new product line, with targeted marketing, upscale positioning, and low cost digital technology, based on our core values and capabilities
Budget (RMB): Direct Labor, 650,000; Capital, 125,000; Expenses 375,000 Subcontracted 350,000 (ex. Inventory)
Approach: Split into 2 projects: α = make a working model, β = support launch effort Satisfy marketing with lo water/energy product with upscale appeal Use digital technology for features and employ subcontracting a lot
Project Management Cook Day 2 in the am # 12 / 30
Phoenix α: Scope
Phase 1: Alpha Phase – make a working model
With marketing, “guestimate” until convergence Deliverable: 2002.12.31 preliminary product spec Deliverable: 2003.3.16 product spec with price/cost tradeoffs
With production, learn from Japanese, not USA Deliverable: 2002.12.15 subcontract strategy Deliverable: 2003.2.16 subcontract list of items & prospects Deliverable: 2003.3.2 volume pricing Deliverable: 2003.3.16 preliminary production plan
Development, bias towards “off the shelf” and hi volume Deliverables: 2003.2.16 mock-up, 2003.3.16 (3) alphas
Project Management Cook Day 2 in the am # 13 / 30
Phoenix β: Scope
Phase 2: Beta Phase – support launch effort
With marketing, coordinate for show & launch Deliverable: 2003.4.10 appliance show Beta prototypes (3) Deliverable: 2003.5.4 operating manual draft for marketing
With production Deliverable: 2003.4.30 pilot run of 100 for “children’s day”
Development Deliverable: 2003.5.19 performance & reliability testing report Deliverable: 2003.5.19 full CAD/CAM production drawings Deliverable: Rev. 1 Software for operation and maintenance
Project Management Cook Day 2 in the am # 14 / 30
Activity Definition & Sequencing
Alpha Phase
Product SpecPreliminary Product
SpecProduct SpecificationCost Tradeoff Report
Preliminary Production Report
Subcontract StrategySubcontractable ItemsSubcontract ProspectsPreliminary Production Plan
Construct Mock-UpPackagingMechanicalConfigurationElectricalMock-up Demo
Project Management Cook Day 2 in the am # 15 / 30
Activity Definition & Sequencing
Beta Phase
Design Betas Pkg, Mech, Config, Elec,
Digital, Operation, Maint, QA
Construct Betas (3) Procure Build Test Demo Ship
Pilot Run (100)Build DocumentationMold ConstructionProcureIncoming TestComponent TestAssembleSystem TestShip
Project Management Cook Day 2 in the am # 16 / 30
Resource Planning
Project Management Cook Day 2 in the am # 17 / 30
Guidance in Making WBSs
A unit of work should appear at only one place in the WBS. Every WBS item is the sum of the WBS items below it. A WBS item is the responsibility of only one individual,
even though many people may be working on it. The WBS must be consistent with the way in which work is
actually going to be done. Project team members should be involved in developing
the WBS to ensure consistency and buy-in. Each WBS item must have a objective scope of work. The WBS must be a flexible to accommodate inevitable
changes while properly maintaining control of the work content in the project according to the scope statement.
Project Management Cook Day 2 in the am # 18 / 30
Activity Duration & Scheduling
Project Management Cook Day 2 in the am # 19 / 30
Activity Duration & Scheduling
Project Management Cook Day 2 in the am # 20 / 30
Task Dependency Diagram
Project Management Cook Day 2 in the am # 21 / 30
Precedence Diagramming Method (PDM)
Project Management Cook Day 2 in the am # 22 / 30
Cost Estimating
Type of Estimate When Done Why Done How Accurate
Rough Order ofMagnitude (ROM)
Very early in theproject life cycle,often 3–5 yearsbefore projectcompletion
Provides roughballpark of cost forselection decisions
–25%, +75%
Budgetary Early, 1–2 years out Puts dollars in thebudget plans
–10%, +25%
Definitive Later in the project, <1 year out
Provides details forpurchases, estimateactual costs
–5%, +10%
Project Management Cook Day 2 in the am # 23 / 30
Cost Budgeting
Cost budget involves allocating project cost estimates to individual work items (based on WBS)
Cost budget provides cost baseline – a time-phased budget that the project managers use to monitor and measure cost performance
Project Management Cook Day 2 in the am # 24 / 30
Quality Assurance
Quality assurance ensures that quality products are delivered
Another goal of quality assurance is continuous quality improvement
Benchmarking can be used to generate ideas for quality improvements
Quality audits help identify lessons learned that can improve performance on current or future projects
Project Management Cook Day 2 in the am # 25 / 30
Quality Resources
Deming led Japan to top quality with his 14 points Juran wrote the Quality Control Handbook and 10 steps to
quality improvement Cosby wrote Quality is Free Ishikawa developed quality circles and using fishbone
diagrams Taguchi developed methods for optimizing the process of
engineering experimentation Feigenbaum developed the concept of total quality control
Project Management Cook Day 2 in the am # 26 / 30
Project Plan Development
A project plan is used to coordinate all project planning documents
Its main purpose is to guide the project execution
Project plans help the project manager to: lead the project team determine the project status
Project Management Cook Day 2 in the am # 27 / 30
Project Plan Contents
Executive Summary (what will help the next higher level of management)
Business Problem/Opportunity, Goals and Objectives
Solution, Organizing Principles, Competitive & Strategic Impact
Project Charter, Scope, Architecture, Phases, Deliverables, WBS (Levels 1 & 2), Success Measures, and Quality Plan
External & Internal Dynamics, Risks & Key People
Collaterals: Strategic Benefits, Alternatives, Contingencies, Check Points
Financial Analysis: Costs, Cash Flow, Capital Expenditures
Appendix: Gantt Chart, PERT Chart, Selected Drawings
Project Management Cook Day 2 in the am # 28 / 30
Planning Outputs (Wish List)Knowledge Area Process Outputs
Integration Project Plan Development Project Plan Supporting Detail Scope Scope Planning Scope Statement Supporting Detail Scope Management Plan Scope Definition WBS Time Activity Definition Activity List Supporting Detail WBS Updates Activity Sequencing Project Network Diagram Activity List Updates Activity Duration Estimating Activity Duration Estimates Basis of Estimates Activity List Updates Schedule Development Project Schedule Supporting Detail Schedule Management Plan Resource Requirement Updates Cost Resource Planning Resource Requirements Cost Estimating Cost Estimates Supporting Detail Cost Management Plan Cost Budgeting Cost Baseline Quality Quality Planning Quality Management Plan
Operational Definitions Checklists Inputs to Other Processes
Project Management Cook Day 2 in the am # 29 / 30
Planning Outputs (More)Knowledge Area Process Outputs
Human Resources Organizational Planning Role and Responsibility Assignments
Staffing Management Plan Organizational Chart Supporting Detail Staff Acquisition Project Staff Assigned Project Team Directory
Communications Communications Planning Communications Management Plan
Risk Risk Identification Sources of Risk Potential Risk Events Risk Symptoms Inputs to Other Processes Risk Quantification Opportunities to Pursue, Threats
to Respond to Opportunities to Ignore, Threats to
Accepts Risk Response Development Risk Management Plan Inputs to Other Processes Contingency Plans Reserves Contractual Agreements
Procurement Procurement Planning Procurement Management Plan Statement of Work Solicitation Planning Procurement Documents Evaluation Criteria Statement of Work Updates
Project Management Cook Day 2 in the am # 30 / 30
Concluding Remarks
Questions and Answers
Thank you, again.
You can find a copy of this lecture (550 KB) on the Internet at:
http://cha4mot.com/PM