Post on 19-Jul-2015
1 | Global Project Excellence Office - Property of Danfoss Power Electronics
Projects Execution - ’One Company – One Way’Danfoss Power Electronics
Carsten Baun Høst - Director, Global Project Excellence OfficeMay 2015
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2 | Global Project Excellence Office - Property of Danfoss Power Electronics
Carsten Baun HøstDirector, Global Project Excellence Office
Certified IPMA level B
11 years’ experience with Danfoss Power Electronics,5 years as head of Global Project Excellence Office
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3 | Global Project Excellence Office - Property of Danfoss Power Electronics
Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites
• Project managers• Change in profile• Navigate in a global organization
• Project execution across sites• Learnings and observations• Top 5 learnings
• Q&A
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4 | Global Project Excellence Office - Property of Danfoss Power Electronics
Power Electronics– one of Danfoss’ core businesses
Power Electronics Standard VLT® DrivesCustomised Drives
Power modulesInverters for Solar & Wind
Refrigeration &A/C Controls
• Mechanical Controls• Electronic Controls
• Supermarket Service• Micro Channel Heat
Exchangers
CommercialCompressors • Commercial Compressors • Variable Speed Platforms
• Turbocor
Heating Solutions
• Residential Heating• Electronic Heating Systems• Hydronic Balancing Controls• Burner Components
• Heat Pumps• Heat Recovery Ventilation
District Energy • District Energy Controls• District Energy Stations • Plate Heat Exchangers
Power Solutions • Mobile hydraulics, electro-hydraulics and full-electric solutions
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5 | Global Project Excellence Office - Property of Danfoss Power Electronics
Our business is power electronics
… high-quality energy-efficientsolutions that save energyand optimize processes
Drives
Solar Inverters Power Modules
21milliontons of CO2 aresaved annuallythrough the solarpowered electricitysystems that areinstalled worldwide.
37milliontons of CO2 aresaved every yearby the 4 million VLT®
variable speed drivesinstalled worldwide fromDanfoss.
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6 | Global Project Excellence Office - Property of Danfoss Power Electronics
Our customers operate within a wide range ofindustries
• Heating, Ventilation and Air Conditioning• Food & Beverage• Water• Industry (e.g. chemical, textile, material
handling and mining, cranes)• Automotive• Solar and wind energy
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7 | Global Project Excellence Office - Property of Danfoss Power Electronics
VLT® Drives electronic motor control
• A frequency converter controls electricmotors so they only run at the speednecessary to obtain the desired effect
• Electronic motor control can typically savehalf the energy in pump and fanapplications
• Today, only 8% of all electric motorsglobally are frequency controlled
• Products• Frequency converters• Soft starters• Accessories
37milliontons of CO2 aresaved every yearby the 4 million VLT®
variable speed drivesinstalled worldwide fromDanfoss.
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8 | Global Project Excellence Office - Property of Danfoss Power Electronics
Customised power stacks
• The power stack is a high quality powerelectrical assembly which ensures themaximum efficiency from powerconversion systems
• Compact and lightweight design withShowerPower® cooling technology
• Modular and scalable design to meet yourneeds
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9 | Global Project Excellence Office - Property of Danfoss Power Electronics
Customised power modules
• A power module is an electronic switchused in power conversion and motioncontrol applications
• Cutting edge technology designed to meetcustomer requirements
TS16949standard
meets strict AutomotiveIndustry requirements
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10 | Global Project Excellence Office - Property of Danfoss Power Electronics
Global presence
Danfoss Power Electronic NPD centers• China (Beijing and Haiyan)• Denmark (Nordborg and Graasten)• USA (Loves Park and Milwaukee)• India (Chennai)• Germany (Flensburg, Bruchsal)• Vaasa (Finland)
Worldwide sales and service• 50 Danfoss sales and service companies• More than 200 partner companies,
distributors, agents and service shops
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11 | Global Project Excellence Office - Property of Danfoss Power Electronics
Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites
• Project managers• Change in profile• Navigate in a global organization
• Project execution across sites• Learnings and observations• Top 5 learnings
• Q&A
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12 | Global Project Excellence Office - Property of Danfoss Power Electronics
Danfoss Power Electronics, R&D & S/C footprint
Haiyan
Beijing
ChennaiPune
TallinnGråsten
Bruchsal
MilwaukeeLoves Park
Vaasa
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13 | Global Project Excellence Office - Property of Danfoss Power Electronics
Danfoss Power ElectronicsGlobal R&D
Global R&D
Global Project Office
R&D Design CenterChina
R&D Design CenterNorth America
R&D Design CenterEurope
Technology & Innovation
Personal Assistant
R&D Design CenterIndia
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14 | Global Project Excellence Office - Property of Danfoss Power Electronics
Global project organization 2010Global Project Office
Soren Ejnar Nielsen
Local ProjectManagement Office
Project PortfolioReporting
ResourceManagement
Processes
R&D Processes
Denmark
USA
Consilium
AdminProject committee
DK
Line
Matrix
Project
US
US R&DCN R&D
DK R&D
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15 | Global Project Excellence Office - Property of Danfoss Power Electronics
Global project organization 2015Global Project Office
Soren Ejnar Nielsen
Local ProjectManagement Office
Project PortfolioManagementSoren Ejnar
Nielsen
Outsourcing ResourceManagementProcesses
Carsten Baun Høst
DK Program 1
DK program 2
DK program 3
US program
CN program
IN program
Global ProjectExcellence Office Denmark
China
USA
India
Denmark
India
Consilium
Special
AdminProject committee
DK
Line
Matrix
Project
US+CN+IN
US R&DCN R&D
DK R&D
Finland FIN
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16 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project organization
IPD(Integrated ProductDevelopment)
• Co-location• Virtual co-location
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17 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project model and responsibility
Includes:Innovation Strategy,
Customer Understanding,Technology Management,
Ideation Process,Portfolio Management,
Project Planning
Includes:Effectivelaunch
to customerValue Delivered
Includes:Project Definition, Project Implementation, Market Launch and Ramp Up, MinorProduct AdaptationsActivities are executed according to a scalable Deliverable Plan and follow thedefined Product Development processes.
Idea
Idea
Idea
Idea
Idea
Idea
IdeaIdea. ..
Line C
Line B
Line A
Customersegment
...Target
area
Whole-
salersOE
Ms ...Productlines
. ..
Line C
Line B
Line A
Customersegment
...Target
area
Whole-
salersOE
Ms ...Productlines
Detailed Design &Production Preparation
M0
Front End Project Execution
New Portfolio
NewPortfolio
M1M3 M5
Verification, ProductionPreparation & Launch Execution
Specification &Concept Design
Ramp-up
RunningProduction
M7
Cash
M6
At each gate
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18 | Global Project Excellence Office - Property of Danfoss Power Electronics
Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites
• Project managers• Change in profile• Navigate in a global organization
• Project execution across sites• Learnings and observations• Top 5 learnings
• Q&A
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19 | Global Project Excellence Office - Property of Danfoss Power Electronics
Processes – our journey
Process project
• Objectives• Remove non-value added complexity
and waste from the ProductDevelopment Process
• Create a lean scalable projectexecution process that can be appliedto projects of different size, risklevels and platforms
• Can be implemented at all PEdevelopment locations
• Increase efficiency for “paper work”tasks
• M0-M1 max 16 working weeks• M1-Release max 12 calendar
months
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20 | Global Project Excellence Office - Property of Danfoss Power Electronics
Danfoss Power Electronic process
• The PE standard allows for scaling the procedures and deliverables to match the projectcomplexity and size and it describes:• The Project Milestone Plan• The structure of governance for the Integrated Product Development• Roles and responsibilities within projects• Milestone documents and approval
• The generic activity overview shows main Integrated Product Development activitieswith links to processes and templates allowing for efficient project planning.
• The project milestone deliverables matrix supports governance and product qualityassurance
Weeks -6 -5 -4 -3 -2 -1 M0 1 2 3 4 5 6 7 8 9 1 0 11 12 13 14 1 5 16 M1
PRO
JEC
T M
AN
AG
EMEN
TPR
OD
UC
TD
EVEL
OPM
EN
TM
ARK
ETIN
GS
UP
PLY
CH
AIN
Ca pture deta ile d e nginee ri ng re quire ments. Write a nd re vi ew Re qui reme nt Spe cifica tion ( RS)Req.S pe c.
Prouct Cl inics ( Cre ate mock-up and te st it at custome r workshops )
DF MEA workshop ( On se lecte d pa rts of the de sign)
Pe rform sta ke hol der ana lysi s. Write Stakeholder Anal ysi s & Communica ti ons Pla nStake h.+ comm.plan
Ca pture customer requireme nts. Write, re vie w and approv e Ba sic Spe cifica tion ( GS)BasicS pe c.
Bui ld Val ue Proposition pa rt of Ta rge t G roup Gross Profi t ov ervi ew (Target GG P) , and upda te commerci al pa rt of Busine ssCase
U pda te Busi ness CaseBusinessCase
Bui ld Varia ble Cost pa rt of Ta rge t Group Gross Profit ov erv iew (Targe t GG P)
VariableCosttarge t
D ev el op a nd rev ie w Gl oba l Ma rket Introduction Pl an to M1 le ve l GMI P lan
D ev elop and rev iew F iel d Test scope a nd strate gyFie ldTe st P lan
Hi gh L ev elConce ptWorkshop
Le an Voice ofthe CustomerRev ie wWorkshop
De fi ne qua lity goa lsQ uali tyworkshopPa rt 1
Re ssource pl anning anda pprov eme nt
Ressourcesheet
Risk &Uncertai ntyworkshop
Risk &uncert.Log
Projec tpla nningworkshop
ScheduleM1- M6 +M1- M3
Qua lityworkshopPart 2
Qualitypl an
Proj ectle arningsworkshop
Proje ctlearnings
3P workshop
Le an Voice ofthe CustomerWorkshop(L VoC)
Kick-offworkshop
Col lec t i nforma tion a nd buil d Ma rke t F ac t Pac kMarketFac t Pack
Pe rform Customer WorkshopsPla n c ustomer invol ve ment for Customer Workshops
De ve lop a nd re vi ew Proucti on Conc ept, wri te Produc ti on Requireme nt Speci fi cation (PRS)ProuctionRe q. S pe c.(P RS )
De ve lop and re vi ew Sourcing Pl anSourcingplan
Col lect / write Suppl y Chai n mi lestonereccomme nda ti on
S / CMile stoneReccom.
Col lect / write Sa les & Ma rke ting / ProductManage ment mile stone re ccommendation
S &M / PMMile stoneReccom.
Col lect / write Product De ve lopmentmile stone re ccommendation
P DMile stoneReccom.
Rev iew and upda te Business Ca seBusinessCase
Ressourc e pla nni ng a nd a pprove mentRessourceshee t
Plan M0-M1 including workshop scal abil ityHigh le velpl anM0-M1
De ve lop Product Test Rational e. W ri te and rev ie w high le ve l Product Test Pla n ( PTP)ProdcutTest Pl an
D ev elop and rev ie w product conce pt de sign, Write a nd re vi ew Sy ste m Product D esign Spe cifica tion ( Sy stem PDS)Syste mPDS
Conce ptBOM
Update E xe cuti on F act Pack including proje ctle ader mi lestone rec omme nda tion
E xecuti onf act pa ck
E va luate Target Group G ross Profit a nd perform c orrecting ac ti ons ( Ta rge tGG P)
Targe tGGP
Colle ct mile stonere comme nda tions from R& D,S&M, S/C
Col lec t i nforma tion a nd buil d E xe cuti on F act Pack indludi ng proje ct l ea de rmile stone recommendation
E xecuti onF act Pack
Perform proj ectcomplex ityasse ssme nt
Complexityassessment
De ve lop S erv ice Conce pt S tra te gyServiceConceptStrategy
Generic activity list for each phaseWork-streams
Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable1 Bus iness Case 1 Updated Bus ines s Cas e 1 Updated business c ase 3 Request for Q- re leas e 1 U pda ted Business Case Business Cas e upda ted2 Projec t Fac t Pack 2 Top Ris ks & rela ted mitigat ion plan 2 Updated top r isks & re la ted mitiga tion plan 3 2 U pda ted top r isks & rela ted mitigat ion plan Closed Risk p lan2 Projec t comp lexity Asses sment 2 Agreed Resource Plan (M1-M6) 2 Agreed Ress ource Plan (M3-M6) 2 Agreed Ressource Plan (M5-M6) Closed projec t in Cons ilium2 Agreed Resource Plan / team set ting (M0-M1) 1 Commit ted cos t/inv estmen t budget (M1-M6) 1 Cost /investmen t budget update (M3-M6) 1 C ost/ inves tment budge t upda te (M5-M6) Closed CAPEX release plan1 Projec t De liverables 2 Commit ted Schedu le (M1-M6) 2 Commit ted Schedu le (M3-M6) 2 C ommitt ed Schedule (M5-M6) Closed Quality p lan1 Projec t milestone recommendation 2 Commit ted Det ailed Schedu le (M1-M3) 2 Commit ted Det ailed Schedu le (M3-M5) 2 U pda ted Qu ality t arget s and main ac tions Closed handover plan2 2 Qua lity ta rgets and main actions 2 Updated Q uality targe ts and ma in actions 2 U pda ted main stak eho lde r and communic ation p lan Closed Sample cer tifica tes2 3 Ma in st akeholders & related c ommunica tion 3 Updated main stakeholde r and commun ication p lan 3 U pda ted team ro les and responsib ilit ies Pro ject Learn ings/ev alua tion2 2 Team ro les and responsib ilities update 2 Updated team roles and respons ib ilities 3 Fina l Handover Plan Closed /ag reed c ons essions2 2 Project Lea rnings 2 Prelimina ry agreement on handove r 2 Project Learnings/evaluation Milestone recommendat ion2 2 Projec t D eliverables Project Lea rnings/ evaluation 2 Projec t De liverables
2 Projec t mi les tone recommendati on 1 Projec t D eliverables Projec t mil estone recommendationProjec t mi les tone recommendati on
2
11 Milest one recommenda tion 2 Miles tone Recommendat ion 1 Miles tone Recommendat ion 3 Milestone Rec ommendation 2 Milest one Recommendation Milestone Recommenda tion
1 Market Fact Pack 1 Updated va lue proposition , Sales Volumes, Pr ices 2 Updated va lue proposition , Sales Volumes, Pr ices Field Test Eva lua tion (VLT D rives) 2 U pda ted value p roposition , Sales Volumes, Pr ices Updat ed value proposition, Sa les Vo lumes , Prices
2 3 Cust omer workshop held 2 Loc al In troduction Plans (L IP) Service manual is ready G MI sta tus repor t Follow up on LIP implementa tion and s ales
2 Signed G S 3 Fie ldtest p lan (VLT Dr ives) Tec hnica l literat ure is ready Marke t co mmun ication roll-out sta rted Review o f in fo pack ageMarke t approach and intr oduction 3 Train ing p lan Awarenss t ran ing de livered Va lue selling roll-out s tar ted Product manage r appoin ted fo r M6+Fie ld test, scope & s tra tegy (VLT Drive s) 2 Typecode and p roduct matr ix in EasyDMS Pre-in troduction by Product Manager and Marke ting Training roll-out star tedSe rvic e concept stra tegy Pr icing and Product Hierachy Traning p lan ready f or ro ll- ou tUpdated va lue proposition Techn ical litt eratu re 1st dra ft Market Communic aiton Plan ready fo r roll-outVa riant economy ca lcula tion Updated Market Fact Pack Dr ives can be con figu red in con figu ra tor , a cces sor iesVa lue selling foundat ion GMI plan update and st atus VLT s hop is ready with product s and p ricesTechn ical lite ra ture s tra tegy Va lue selling a rgument s high level App roval o f G S fulf illment reportTran ing stra tegy Sales fo recas t upda ted
Assembly and disassembly workshop
2
3 Milest one recommenda tion 3 Baselined Requirement Spec ificat ion 3 Deta iled des ign des crip tion Product Approval 3 Product Approva l Finalis ed PS2 3 Concep t/archit ectu re descrip tion 3 Product documen tation (proto type leve l) Product documenta tion (Pilo t lev el) 3 Product Specif ication (PS) Updat ed product documenta tion
3 Concep t strategies, dependenc ies and constraints 3 Bill o f Mat eria l (BO M) Field Test Eva lua tion (DSI) 3 Product doc ument ation (1. s er ies level) De fect eva lua tion repor t3 Concep t BOM & Var iab le Cost Targe t 3 Working Pro tot ype 3 Milest one recommenda tion Milestone recommendation1 Product Test R ationale 1 Environmen tal assessmen t 33 Fie ld test, scope & s tra tegy (D SI ) 3 Updated / det ailed product t est plan 22 Miles tone Recommendat ion 3 Fie ldtest p lan (DSI)
2 R&D as sess ment / milestone rec ommendation
33 Milest one recommenda tion 3 Miles tone recommenda tion 3 Miles tone recommenda tion 3 Milest one recommenda tion Milestone recommendation3 Captu red requirement s 2 Updated Captu red requ irements 3 Handove r procedure requirements 3 C apacity handshake Close SCRS2 Strategy 2 Updated Strategy 3 3 H andove rdocument f or equipmen t Pro ject to Ope ra tions handove r document
Concep t 2 Design and specifica tion 2 Site ac cep tance t ests Follow up on forecast and compare with BCQ ua lit y leve l and iss ues on predesso r/s imilar p roduct s Qua lity ta rgets Updated Q uality targe ts Samp le ce rtif icate sta tus O verall qualit y eva lua tion and quality plan upda te IFG h andover
CAPEX estimat es/release Updated CAPEX Handove r read iness evalua tion (running product ion) U pda ted CAPEX Close budget and ressource account sVC est ima tes Updated VC U pda ted VC Failure and po ten tials follow up (ITT)Plan f or proto types (mix, quant it y, size ) Plan f or pilot s (mix, quant it y, size ) Approved 1. ser ies Clear quest update
Plan f or HAWA, accessor ies and sparepa rts Clean up obs olete pa rt no's introduced by pro jectPlan f or loca l/global Q -releasePlan f or ramp up /downPlan f or Suppor t training and equipmen t
M6M3
Sales &M arketing /ProductM anagement
Supply Chain
M5M1M0
ProjectM anagement
PD(HW, SW, CE,Test)
Q Release
PE project milestone deliverables
501G0401PE project
organizationand NewProduct
Development
PE standard
Process descriptions
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21 | Global Project Excellence Office - Property of Danfoss Power Electronics
Processes
• Danfoss Business Systems• Programs DPP, DSP, FPP, PDP
• PDP - Product Development Program• Across divisions:
• Same Principles & milestone definitions• Same overall processes – establishing a
robust framework for project execution:• value proposition (specifications)• customer involvement• concepts (product, supply chain etc.)• launch strategies & plans
• Annual audits – focusing on Principles• All managers from CEO level and down
are trained and certified in the model
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22 | Danfoss Business System
Good practice is fundamental to consistenthigh performancePerformance
Practices
Set targets
Use common tools &processes based on
best practices
Follow up
Buildcapabilities
The PDP audit measure’s practice rather than project performance……because good practice is fundamental to consistent high performance
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23 | Global Project Excellence Office - Property of Danfoss Power Electronics
Deployment in a global organization
• Pilots (2010)• Based on the standard and the milestone
delivery plan we:• Trained all the project team members• Used all the new methods and tools• Reviewed the pilots• Corrected and updated the material
• Live full scale (2011)• All new projects had to follow the new
model• Local Navigators (facilitators)
introduced
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24 | Global Project Excellence Office - Property of Danfoss Power Electronics
Deployment in a global organization
• Full operation 2015• All projects are executing according to
the processes and model• All projects have a Navigator assigned• Audits are taking place – approximately
same score on each site• Only minor adjustments are being
discussed• Focus is on the ”soft” competences – to
drive performance
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25 | Global Project Excellence Office - Property of Danfoss Power Electronics
Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites
• Project managers• Change in profile• Navigate in a global organization
• Project execution across sites• Learnings and observations• Top 5 learnings
• Q&A
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26 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project manager rolein a global project setup
Our challenges -> Change in profile• From developing a product to delivering
on a business case
• Leading from a distance• Leading Others, Leading Leaders in
different time zones and cultures orproject maturity
• Virtual meetings, issues with:• Time zones, IT support etc.
• Leading in a mix of internal and external(outsourced) responsibility
• Navigate in a global organization• Network
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27 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project manager rolein a global project setup – what are we doing
Our challenges -> Change in profile• From developing a product to delivering on
a business case• Business model understanding - training
and support from controlling• Leading from a distance
• Face-to-face kick-off• Core team training• Clear roles and responsibilities• Same processes
• Leading in a mix of internal and external(outsourced) responsibility
• Navigate in a global organization• Network – global summit, formal pairing
of project managers from different sites
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28 | Global Project Excellence Office - Property of Danfoss Power Electronics
Content
• Introduction• Danfoss Power Electronics
• Background information• Development footprint, organization and project organization
• One common development model• Corporate DBS (Danfoss Business Systems)• Project model development and deployment across sites
• Project managers• Change in profile• Navigate in a global organization
• Project execution across sites• Learnings and observations• Top 5 learnings
• Q&A
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29 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project execution across sitesIllustration
Haiyan
Beijing
ChennaiPune
TallinnGråsten
Brucksal
Rockford
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30 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project execution across sites
Typical elements to discuss – Learning’s• Decision making
• Project management role• Line management role
• Project organization and related complexity• Roles & responsibilities• Communication• Cultural awareness• Team collaboration – across sites• Team commitment and team spirit• Planning• Workshop participation• Monitoring progress• Managing Change
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31 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project execution across sites“project level”
• Cross functional events to drive alignment &progress (time-boxed’
• Detailed project complexity assessment ->planning & staffing accordingly
• Different urgency (priorities) across the sites
• Agreed roles & responsibilities between the teamson different sites
• High level plan with well defined integration points
• Local responsibility - ”local project lead”• On-site/’face-to-face’ meetings and extra
leadership resources to build relationships - tocreate the team spirit (avoiding ”them” and “us”)
• Time zones challenges - plan for communication &collaboration
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32 | Global Project Excellence Office - Property of Danfoss Power Electronics
Project execution across sites“governance level”
• Local responsible PMO manager• Clear and agreed escalation path• Close cooperation on management level
across all sites• A Steering Committee with a clear
mandate• Cultural training (for the whole team)
and at all sites involved• Communication – different needs• Different competence levels = different
needs for review and support – toxicassumptions
• “Them” and “us”• Outsourcing model• KPI definitions
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33 | Global Project Excellence Office - Property of Danfoss Power Electronics
Top learnings
Common processes / understanding- Creating a common process framework requires dedicated/full time resources- Process Navigator as a role – acknowledging the value of professional facilitation and
awareness of need for local/cultural adjustment
Project Manager role and competences- Must have real influence and responsibility (accountability)- Need for constant competence development to meet the challenges of a global setup- Understanding business development is essential
Project Execution- Addressing project execution complexity is a MUST- Understand consequences of different levels of organizational project execution maturity- Prioritize face-to-face meetings in the startup phase- Need for local lead/responsibility (accountability)
Solid governance- Escalation paths must be clear - Quick decision making is key
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