09 Project Management April 2018 Student version

27/03/2018
Project
Management
In an NPI Environment
John Gurnett
Project Management in NPI
Bibliography
The Handbook of Project Management - Trevor L Young
The Complete Idiot’s Guide to Project Management - Sunny & Kim Baker
A guide to the Project Management Body of Knowledge – PMI
The PDMA Handbook of New Product Development – PDMA
Developing Products in Half the Time – Preston Smith / Donald Reinertsen
Identifying and Managing Project Risk – Tom Kendrick
Getting the Right Things Done – Pascal Dennis
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Project Management Overview
Project Management Areas

Scope Time Cost
Initiation WBS / Sequencing Resource planning
Organization Self Organization Cost estimating
Project Definition Duration estimation Cost budgeting
Verification Plan development Cost control
Change control Schedule control
Quality Resources Communications
Setting standards Organizational planning Communications plans
Quality planning Staff acquisition Information distribution
Quality assurance Team development Performance reporting
Quality control Plant / equipment Administrative closure
Risk Procurement Integration

Risk identification Source selection Plan development
Risk quantification Contract administration Process definition
Response development Delivery planning Plan execution
Response control Progress control Change control
Project Closure
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Project Management Definition
Risk
Requirements / Project
Process Delivery
Activities
Uncertainty Source: John Gurnett 2007
Reasons for Success

• Executive support
• User involvement / appreciation
• Real project managers – with business skills
• Clarity of objectives – why am I here?
• Formal process methodology
• Reliable estimates with an understanding of
uncertainty
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Project Management
Some Observations:
• Companies / Teams are ……………to adopt a

methodology
• Project management & development is ………
• Projects are almost always …………..
• Project participants’ priority must be …………….
3 Step Method
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1 Define
The 6 big questions
1
2
3
4
5
6
Three Areas to Define

• Project
– Why we are doing it?
– What we are going to do?
– What are the risks involved?
– When do we need it?
• Process
– How will we do it?
• Structure / Organization
– Where will we do it?
– Who will do it?
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The Project Definition
Why & What…………….?
Project Definition - The Why?
Profitability
Opportunity
ROI
Benefits
Delivery
1 management on a portfolio / program basis

2 concern with ultimate goals
3 decrease of sponsor involvement in projects
4 need for PMs to appreciate the bigger picture
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Project Definition - The Why?
Commercial Feasibility
Customer spec. Technical risk analysis

& timing Factory / BOP capacity
Offer Timing
Business
Price / Cost / Margin
Order
Go / No Go
Benefits
Opportunity ROI Profitability
Delivery
The Project Definition – The Why & the What!
• Create and agree a Project Definition in order to:

• Clarify the business goals
» Profitability / ROI / Benefits Delivery / Opportunity
• What are we doing? – scope and boundaries
• Clarify the quick/cheap/good
• Facilitate consensus & buy–in to the project
• Test the ultimate success of the project
• Sell the project back to the sponsors
Sell & Keep on selling !

Beware - the invasive effect of a new affection
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Three Traditional Business Requirements
Quick
Continuing to push
the boundaries
increases the risk!
Cheap Good / Lots

Unbalanced Constraints
Project
Increased Risk
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Project Organisation /
Communication Structure
Who…………….?
Portfolio Project
Manager Portfolio
Programme Programme Programme Programme

Managers 1 2 3
Project Project 1 Project 1 Project 1

Managers
Project 2 Project 2 Project 2
Project Project 3 Project 3 Project 3

Teams
Multiple projects / Multiple cross functioning teams /

Multiple Locations / Multiple Cultures
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Business Executive (Sponsors)
Business Project Project

Team Manager Scheduler
Design
Marketing Operations Testing Legal & Purchasing Distribution
Teams
Safety
Business Finance Structures Suppliers Dealers

Services HR Platform
IS/IT Electrical Team Leader Customers
Hydraulics Design Engineers
Product Engine
Support Cab / Cockpit
Power-train
Integration
Collaborative Structures /
Partnerships
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Collaborative Structures /
Partnerships
Issues:
1
2
3
4
5
6
The Business Processes
How…………….?
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Understand the Business

Processes
Every company has its own tried and tested way of doing
things
• How does it work

• Challenge the current processes
• Understanding prevents missing steps
• Use lessons learned – (white book)
Different Process Methodologies

 Stage gate 1st, 2nd 3rd generation - Cooper et al
 No-Interval Coherently Phased Product Development (NICPPD)
 used mainly in fashion industry – uses trend and seasonal mapping
 Concurrent engineering
 Rational Unified Process (RUP)
 Inception / Elaboration / Construction / Transition
 Used in software engineering – developed by Rational Software (Owned
by IBM)
 Spiral Development
 Determine objectives / Id and resolve risks / Develop & test /
Plan next iteration
 Agile Systems
 Base on ‘time boxes’ small incremental changes – short term planning to
include requirements analysis / design / code / unit & acceptance test -
incorporates ‘scrum’ processes (small compact teams)
 Skunk Works – Lockheed Fighter Advanced Development
 Skunk – essentially stay away!
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3rd Generation Stage Gate NPI Process

Strategic Planning
Project Planning
Year 1 Years 2&3 Year 4

Concept Development Production
& Support
Prototype Pilot
(Prove design)
Product & assembly validation
Project review gates 1 2 3 4 5

Concept Initial Detailed Ship Post Product
OK Design OK Design OK Product Review
Project Summary HELP

Configuration Graphs ERROR REPORT
1 2 3 4 5 6 7 8 9 10 11
CS Con Dev Fre FD Eq Ind PP Lau Rel End
Project Management
Market
Engineering
Manufacturing
Purchasing & Supply
After Market (CST)
Finance
ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL
ROLES ROLES ROLES ROLES ROLES ROLES ROLES ROLES ROLES ROLES ROLES
Start Product change Initiation 1 2 3 4 5 6 7 8 9 10 11
Gate 1 Concept study gate/decision CS Con Dev Fre FD Eq Ind PP Lau Rel End
Gate 2 Concept Gate
Gate 3 Development gate decision
Gate 4 Freeze gate Final Development Equipment
gate/decision gate
Industrialisation
gate/decision
Freeze
Gate 5 Final development gate decision Development
gate/decision
gate Pre-production
gate Launch
Gate 6 Equipment gate Concept
Final gate/decision
Detailed Development
Gate 7 Industrialisation gate/decision Concept study
gate
Development Release
gate
gate/decision
Gate 8 Pre-production gate Concept
Gate 9 Launch gate decision Study Development End
gate
Gate 10 Release gate Product Pre

Industrialisation
change Study
Gate 11 End gate Initiation
Follow-up
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Developing new Processes
Lessons Learned Business

Expertise Processes NPI development manual
Business strategy Development Defined business parameters
Engineering strategy
New development cycle
Product vision Business / Development New product
Existing process manual Parameters Customer focus
Key Questions to ask of the process

What is the business strategy for new product introduction?
What parameters should we set to include / exclude parts of the process?
Are we product focused / gateway driven / engineering focused / cost focused?
The Business Processes
Risk…………….
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Planning for Risk and Uncertainty

We defined PM as managing risk within process
 It is necessary for change
 It has not yet happened
 It is a view / perception
 Current state
 Experience
 What could happen (Murphy)
 Can be defined in terms of time / cost / quality
 Particular to Industry / company / country / culture / project
Steps for Management & Control

 Identify
 What can go wrong/?
 What has happened before?
 What is different / new from last time?
 Analyze
 What type of risk? – what does it effect?
 Quantify / Score
 How big a risk? / By how much?
 Strategize
 What will I do?
 Plan
 When will I do it?
 Do
 Monitor / White book
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Analyse & Quantify Risk
Risk Strategies
Four Strategies :
Mitigate – do something / monitor effect
Manage – work with it / monitor effect
Remove – don’t do it / abandon
Ignore – suffer it
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10 Top Reasons For

Project Failure
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2 Plan - when…..?
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Three Project Planning Laws

Parkinson
Entropy
Murphy
The Structured Decomposition / WBS
•Identify activity groups – including interfaces

•Assign responsibilities
•Get size of the project
•Confirm completeness
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WBS / Decomposition Examples
•
•
•
•
•
•
•
•
Structured Decomposition – By Function
New Product Introduction
Project Product Business

Product
Control Services Services
Design
Design Planning
Operations Financial
Procure Communications
Product Marketing
Scope Support
Test
Legal /
Risk
Safety
Resources
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Structured Decomposition Cont…
Design
Platform
Electrical
Hydraulic
System Structure
Powertrain
Cab
Component Iterations
Detail / Supplier Procure

Concept Analysis Interface
Release Id &
Quality
Project Management in NPI Control
Plan – stage 2
Putting it all back together
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Building the Project Plan
• Purpose:
• Maps the project timeline
• Creates a tool for managing the project timing / cost /
resources (note: quality is rarely controlled in this
way)
• Gives the ‘critical path’ - main measure of total project
conformance to timing
• Prime communication tool of progress / slippage and
task / resource criticality
Building the Network

Activity Compile
description activity list
Issue / obtain
Responsibility Joe Denario agreement to
Maggie Smith activity list
Duration
(elapsed) 10 days Joe Denario
15 days
Network the activities in teams - break down the network into

manageable sections using the WBS
Not a schedule – simply a logical picture of relationships between
activities
Place activities in logical order – identify relationships
Agree & Baseline
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Building the Network

Fill / turn
Boil Get tea put Pour water
on
kettle in Pot in pot
Kettle
5 180 10 6
SS 150 Warm pot
5
Get Tea Allow tea
Pot to draw
10 30 Serve Tea
Start 10
Get Milk / Place cups /
sugar milk / sugar
10
on table
20 End
Get Cups
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Activity Duration Estimation

• Duration estimates are just that!
• Choose your time units: minutes / hours / days / weeks
• Activity needs to be as discreet as possible
• Check for historical / related existing data Keep durations under
review – watch other projects for similar activities
• Get buy in from responsible team member
• Include holidays / down time etc. (at activity / location / project
level)
• Apply contingency where possible / relevant
• Apply risk criteria where known especially where activity is
outside project control
• Apply compression techniques if necessary
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Some Planning Hints
• Activity durations are elapsed • Define / review responsibilities

• Nothing starts unless predecessor • Avoid activity description
starts or finishes ambiguity
• Review relationships & durations • Avoid constrained start dates
• Every activity / milestone must other than business milestones
have at least one predecessor and • If critical path needs compression
successor – used priority list / confer with
• Activities have deliverables – sponsors
include a verb and noun
Project Schedule Gantt Chart

A ctivity|ID O r ig|Dur E ar ly|S tar t E ar ly|Finish
RTotal|Float
ES P 2000 2001
S EP O CT N OV D EC JA N FE B MAR A PR MAY
ID D ur S tar t Finish Float 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 7 14 21 28
A G TR A C TO R K SER IES - EN G IN E SYSTEMS
PD D ESIG N / R EL EA SE
MODEL 986
CONCE PT P HASE
LN B 10196 20 18S E P 00A 09O C T00 -15 C OMP LE TE C ON CE P T/ S TR ATE GY E N GINE S Y S TE MS

COOLING SY S TEM T2
ATAAC LINE S
LN B 10001 20 10O C T00 06N O V 00 -5 D E S IG N / DE TA IL ATA C LINE S
LN B 10081 1 07N O V 00 07N O V 00 25 R AIS E E O
LN B 10076 3 07N O V 00 09N O V 00 101 E DS R E LE A S E
LN B 10146 5 08N O V 00 14N O V 00 25 R AIS E P O
LN B 10151 40 15N O V 00 23J A N 01 25 LE AD TIME
LN B 10156 3 24J A N 01 26J A N 01 25 INTE RN AL P RO CE S S
E XHAUST GROUP
LN B 10011 20 05D E C 00 15J A N 01 -5 D E S IG N / DE TA IL E X HA U S T GR OU P
LN B 10101 1 16J A N 01 16J A N 01 -5 R AIS E E O
LN B 10096 3 16J A N 01 18J A N 01 61 E DS R E LE A S E
LN B 10157 5 17J A N 01 23J A N 01 -5 R AIS E P O
LN B 10158 30 24J A N 01 06M A R 01 -5 LE AD TIME
LN B 10159 3 07M A R 01 09M A R 01 -5 INTE RN AL P RO CE S S
INDUCTION LINE S
LN B 10006 20 07N O V 00 04D E C 00 -5 D E S IG N / DE TA IL IN DU C TIO N LIN E S
LN B 10091 1 05D E C 00 05D E C 00 5 R AIS E E O
LN B 10086 3 05D E C 00 07D E C 00 81 E DS R E LE A S E
LN B 10160 5 06D E C 00 12D E C 00 5 R AIS E P O
LN B 10161 40 13D E C 00 20FE B 01 5 LE AD TIME
LN B 10162 3 21FE B 01 23FE B 01 5 INTE RN AL P RO CE S S
COOLING SY S TEM T1
S HUNT BOTTLE
LN B 10031 30 24O C T00 04D E C 00 5 D E S IG N / DE TA IL S H UN T BO TTLE
LN B 10121 1 05D E C 00 05D E C 00 5 R AIS E E O
LN B 10116 3 05D E C 00 07D E C 00 81 E DS R E LE A S E
LN B 10163 5 06D E C 00 12D E C 00 5 R AIS E P O
LN B 10164 40 13D E C 00 20FE B 01 5 LE AD TIME
LN B 10165 3 21FE B 01 23FE B 01 5 INTE RN AL P RO CE S S
S HROUD GROUP
LN B 10016 30 10O C T00 20N O V 00 5 D E S IG N / DE TA IL S H RO U D GR OU P
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Maintaining Control
•Lack of clear commitment to maintaining the

project plan wastes the investment of building it
• Poor planning virtually guarantees added

program cost and schedule overrun
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Iterative Project Planning

(Progressive Elaboration)
Project
Definition
Control
Decisions
Project
Plan
Project Diagnose Solve

Activity Problems Problems
Complete Source: John Gurnett 2007

Project
Moving the Panic Point

Target Project
End Date
Move
Panic
Point
Uninformed Optimism
Panic
Point!
Vague concern
Source: John Gurnett 2007
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Control Maintenance
• Agree strategy & methodology for updates with team & sponsors
• Dedicate single source plan and updating resource
• Determine participants and regular meeting cycle
• Determine authority levels for change / slippage etc.
• General principles
• Keep the schedule and definition in constant view
• Take responsibility for activities – this is what we are managing (not
time) - never say ‘I am waiting for…’
• Do not use percentage complete
• Update with integrity / treating critical / non critical similarly
• Display targets & previous promises
• Review & update the project definition
• Manage trade off
• Keep activities started on time or earlier –
activities starting late – 80% take longer
Project Control Progression &

Maintenance Strategy
• Top down determined commitment to regular, consistent and
inclusive planning and control of the project
• Set up the process at the beginning – integral to process
definition - get formal buy-in to continue with it
• Most likely casualty of Entropy
• Gives valuable data for future project planning
• Keep activities started on time or earlier
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Project Planning & Maintenance

Methodology
• Invest as early as possible in good / effective planning and consistent
monitoring – or pay much much more later
• Ascertain, build and maintain clear business objectives and scope for
the project
• Get all levels buy-in to all aspects of project definition and project
program - and maintain it
• Plans are but plans – close monitoring turns them into reality
• Durations are only estimates
• Activity lists are incomplete
• Scope shifts – projects evolve
• Plans / time available estimates evolve
27

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27/03/2018

Project Management in NPI

A guide to the Project Management Body of Knowledge – PMI

The PDMA Handbook of New Product Development – PDMA

Developing Products in Half the Time – Preston Smith / Donald Reinertsen

Identifying and Managing Project Risk – Tom Kendrick

Getting the Right Things Done – Pascal Dennis

Project Management in NPI

Project Management Overview

Project Management in NPI

Project Management Areas

Risk Procurement Integration

Project Management in NPI

Project Management Definition

Uncertainty Source: John Gurnett 2007

Project Management in NPI

Reasons for Success

Project Management in NPI

• Companies / Teams are ……………to adopt a

Project Management in NPI

Project Management in NPI

The 6 big questions

Project Management in NPI

Three Areas to Define

Project Management in NPI

The Project Definition

Why & What…………….?

Project Management in NPI

Project Definition - The Why?

1 management on a portfolio / program basis

Project Management in NPI

Project Definition - The Why?

Customer spec. Technical risk analysis

Project Management in NPI

The Project Definition – The Why & the What!

• Create and agree a Project Definition in order to:

Sell & Keep on selling !

Project Management in NPI

Three Traditional Business Requirements

Cheap Good / Lots

Project Management in NPI

Project Management in NPI

Programme Programme Programme Programme

Project Project 1 Project 1 Project 1

Project Project 3 Project 3 Project 3

Multiple projects / Multiple cross functioning teams /

Business Project Project

Business Finance Structures Suppliers Dealers

Project Management in NPI

Project Management in NPI

The Business Processes

Project Management in NPI

Understand the Business

• How does it work

Project Management in NPI

Different Process Methodologies

Project Management in NPI

3rd Generation Stage Gate NPI Process

Year 1 Years 2&3 Year 4