Post on 13-Jan-2016
IT Alignment: The Supply / Demand Perspective
April-2008 Meeting
Page 2
Agenda
• Happy Spring / April!
• Today’s Review
– THE IT FACTORY
• Current State
• Supply / Demand Balance
• Actions
• Issues – Resource or Other
• Your Feedback is Appreciated
• Ideas for Improvement or New Method to View our Data
Page 3
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
Page 4
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
We are averaging approx 35* new request projects per month …
* March-08 is high due to RC transition.
Page 5
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
We are averaging approx 20* completed projects per month …
* expect this to decrease in 2008.
Page 6
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
The number of project cancellations and rejections are decreasing …
Page 7
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
There are 134 requested projects
<90 days old.
There are 22 requested projects
>90 days old.(Fill / Kill)
There are 36 projects on-hold.
(Fill / Kill)
There are 135 projects that are
active and scheduled to
complete in 3mo planning horizon.
Page 8
Our IT Factory …
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
35/mo 20/mo
<3/mo
134
22 36
135
Page 9
Our IT Factory … ARE WE FOCUSING ON THE RIGHT PROJECTS?
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
35/mo 20/mo
<3/mo
134
22 36
135
• IT Worked on 155 Projects in March
• 80% Effort into 27 Projects (right ones) – 80/20
• 20% Effort into 128 Projects
• 19% Effort into 31 Top 5 Projects – downfrom 25% in March – 5 top5’s are scheduled to complete this week
Yes
Page 10
Our IT Factory … ARE WE IN BALANCE?
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
35/mo 20/mo
<3/mo
134
22 36
135
No
This will decreaseas R3 Upgrade,
M+A, Notes Rollout,etc. ramp up in
2H – 2008 …
We need to makesome adjustments
in order to bring ourfactory into equilibrium …
APPLY BRAKES, gently.
Page 11
Our IT Factory … TARGETS FOR BETTER BALANCE
InboundProjects
Outbound Completed
ProjectsParkingLot
Work Scheduledand In-Process to be
delivered in NEXT 3 MONTHS
ACTIVEPROJECTS
OutboundCancelled or
Rejected Projects
Short TermParking
Long TermParking
Work Startedbut Placed On-Hold
35/mo 20/mo
<3/mo
134
22 36
135
X X
X
X
X
2560
60
20
>=5
Targets
X
Constraint
Page 12
Actions in Next Months: SUGGESTED ACTIONS THAT SHIFT PERFORMANCE TO TARGETS …
• Demand / Business Relations Managers– Only enter the highest value project requests – Decrease the volume from past– Reject projects that are requested or initialized – at sponsor checkpoint– Recommend cancellations for active projects in early phase of implementation– Manage customer expectations based on current constraints and from other actions
below
• Portfolio Managers– Do not approve new projects, Approve new Top 5 projects to replace cancelled active
projects – Make trades– Cancel or Hold active projects based on recommendations
• Projects Managers– (Re)Schedule active projects with realistic completion date (scheduled finish date) –
making nice progress on this …include calendar time for production move and customer signoff
– Validate remaining effort hours – encourage contributor estimate on timesheet
• Resource Managers– Validate that resource effort is flowing to approved work schedules– Approve less resource requests – concentrate resources on fewer projects and
schedules– Transition RTE work to offshore services – freeing up more time for project work
Page 13
Issues
• IT resources are not overloaded in the 6 week horizon
– We are capacitated for next 6-12 weeks
• Overloads:
– False Positive?: Sheldon Wolfe (R3 upgrade)– R/3 upgrade allocations could cause overloads – approx half of allocations are
completed … we will watch this (please raise the red flag)
• Available:
– ~10 resources have some available capacity (Make-to-order developers)
• Are there any resource constraints that need resolution?
Page 14
• REFERENCE DATA
• PROJECTS SCHEDULED TO COMPLETE IN THE 3 MONTH PLANNING HORIZON
• ORGANIZED BY PARENT TEAMS
Page 15
Top 5’s scheduled to complete in next three months. Will we achieve these scheduled finish dates? …
Encourage Proj Mgr to revisit and assess scheduled finish date … Work with Business
Relations folks to manage the customer expectations …
If adjust, make sure customer communication is appropriate …
Page 16
Planning Horizon for: BAD
Encourage Proj Mgr to revisit and reset finish date
based on current assessment …
Page 17
Planning Horizon for: BIC, BID
Encourage Proj Mgr to revisit and reset finish date based on current
assessment …
Page 18
Planning Horizon for: BMD, Shared Services Teams
Encourage Proj Mgr to revisit and reset finish date based on current assessment …
Page 19
Planning Horizon for: OTC
Encourage Proj Mgr to revisit and reset finish date based on current assessment …
Page 20
Planning Horizon for: EHS, eRela, Global Support, HR, Mfg+SupplyChain, Sales + Marketing
Encourage Proj Mgr to revisit and reset finish date
based on current assessment …
Page 21
Planning Horizon for: ITAI, PMO
Encourage Proj Mgr to revisit and reset finish date
based on current assessment …
Page 22
Project Manager Actions
• Set projects status to complete– Look for Work notifications and respond, otherwise set the work status to complete
• Set realistic schedules– Add a multiple-week bias to the estimated schedule finish date– Use online procedure in training– Step 10, Set the Schedule,
http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html
• Encourage use of contributor estimate in the timesheet– Overrides remaining allocated effort with “contributor’s best assessment of
remaining work”– Discuss at weekly project team meeting(s)
• Set baseline when ready – project manager discretion– Baseline takes snapshot of allocated effort and schedule dates– Use online procedure in training– Step 13, Report Progress,
http://learning.rohmhaas.com/D2D/Flash/D2D_Discretionary.html