Brambles’ approach to Project Management

Project Management

Masterclass A

Julie BrignacGroup Vice President – Procurement, LeanSigma and Quality

Brambles Limited

October 2008

Confidential Material – Copyrighted - Brambles 2007.

Workshop Guidelines

• Too much material to cover in 1 hours, 40 minutes, so…..

– I will touch on the strategic elements on Brambles’ approach to Project Management

• Please silence mobile phones

• Ask questions and collaborate

Flip


IMPACTing Business Improvement

Equipment Pooling Document Management

Quality and Business Improvement


Company Statistics

• Headquartered in Sydney, Australia

– Parent company of CHEP Equipment Pooling Systems and Recall Information Management

– Major offices in Orlando, Florida; Atlanta, Georgia and London, England

• Listed on the Australian stock exchange

• Approximately 13,000 employees in over 52 countries

• FY08 Revenues = US $4.4B


What does Julie know about Project Management?

• Early career in DuPont with Malcolm Baldridge focus on process improvement

• Engineering Finance & Project Management

• AlliedSignal Honeywell

• Introduced to Six Sigma and Lean

• Supply Chain Operations career until……….

• Director, Six Sigma – Integrated Supply Chain (Honeywell)

• Six Sigma Deployment Leader (CHEP)

• VP Purchasing/Material Productivity (Newell Rubbermaid/Sanford)

• VP Quality & Six Sigma (Brambles)

• Group VP, Procurement, LeanSigma and Quality (Brambles)


Art Reflecting Life?


Impact MethodologiesProject Management Training

• Six Sigma Toolset

• DMAIC & DMADV

• LEAN Toolset

• Change Management Techniques

• Project Management Skills

• This was the missing element in IMPACT portfolio

• Had deployed a successful LeanSigma program

• Too many leaders lacked basic PM skills

– Drove poor results and long cycle time

• Basic Training Material Developed

• Next Steps

– Train the Trainer

– “Sales Kit” & Training Rollout across Regions

– Advanced level PM training


Everything to cover in our allotted time

• Project prioritization, selection, scoping, tracking and monitoring

• Understanding the capacity for the organization to take on new projects

• How does one keep the pipeline of projects coming in? Are there methodologies to identify projects to ensure that process improvement is continuous? Engaging the business to identify project opportunities

• Ensuring that the right process is in place for each selected project

• Achieving collaboration across project managers to solve the overall organizational problems

• Keeping ongoing projects on schedule

• Measuring the success and maturity of program

• Sustaining controls once a project has closed

• Translation of projects across regions, departments and other projects


The answers……


– Understand and define the Project Lifecycle


– Link to the organization’s objectives or QFD

• How does one keep the pipeline of projects coming in? Are there methodologies to identify projects to ensure that process improvement is continuous?

– Develop and utilize a Methodology Selector



The answers……(continued)


– Regular project reviews

• Keeping ongoing projects on schedule – Project Management database with governance

• Measuring the success and maturity of program– Establish annual goals and put into the performance objectives

• Sustaining controls once a project has closed– It’s hard to do!

– Control charts; metrics posting; performance goals

• Translation of projects across regions, departments and other projects – It’s hard to do!

– A database helps

– Regular forums to identify and share translatable projects


How it started after LeanSigma

• Developed introductory PM training that

– Defined what a project is

– Developed a project methodology and toolset selector

– Developed a consistent way to run projects

– Determined a consistent answer on “how do I run a project”

» Framework and Templates

» Training and skills development

» How to drive behavioral change (CMT)

» How to effectively lead teams and manage projects (PM)

• Impact seen in project effectiveness

– Cycle Time

– Project Impact


Why Project Management?

• Project Management skills were still lacking at Brambles

– Even after a very successful LeanSigma program launch

• No standard methodology / framework for the projects that did not fit Six Sigma or Lean

– e.g. Many project managers own personal favorite methodology

– Many significant projects run ad hoc with no methodology or process

• Six Sigma & Lean project leaders lacked basic PM skills

– Team dynamics, managing schedule, facilitation, effective collaboration with sponsor etc.

Effective Project Management Skills is a Key Driver of Project Success


Project Management Life Cycle

Project Life Cycle

ProgrammeManagement/

StrategicAlignment

Project Method &Tool Selection

ProjectManagement &

ExecutionProject Definition

No

Yes

NO GO

GO

Prioritisation

BenefitsEstimation/Validation

Tools andMethod

Selected

Utilize PM andCM Skills and

Tools

ProjectCharter

Generation

Place inprojectpipeline

ProjectCompleted

Successfully

Approval

Execute effortin business(just do it)

FollowSelected

Methodology

Is it aProject?

PotentialProject Idea

Project prioritization, selection, scoping, tracking and monitoring


Capacity, pipeline, prioritization

• Link to the organization’s objectives

– Utilize the QFD process

– Understand and link projects to the main goals of the organization

• Do not allow pet projects

• If you cannot link a project to a measurable tangible or intangible goal for the fiscal year, it should not proceed

• If these rules are followed, there will not be a shortage of prioritized projects


IMPACT Methodology Selector

PROJECTProblem / Improvement

Opportunity

Quick, smallscale initiative

Some solution ideasexit?

FocusInitiative

DMAIC DFSSLEAN

Solution not Knownor not clearly identified

Quality Problems & Defects,Too much process variation,Incapable or poor performing

processes

Need new process,or current process can not

be improved furtherwithout Redesign

Too much waste,Cycle time to long,Too much inventory

YesNo

Known Solution Implementation

PROJECT MANAGEMENTBasic Activities List with Responsibilities & Dates

Activity Scheduling / Phasing

Gantt Charts / Project Management softwarePartial PMM Toolset

Complete PMM ToolsetIncr

easi

ng S

cope

/C

om

plexi

ty

Type ofProblem?

Is the solution clearly identified?

CHANGE MANAGEMENTTechniques to drive effective change & organizational acceptance


Sustainability

• Sustainability is dependent on two things

– Continued and consistent delivery of results

– Leadership commitment

• Establishing a regular project review and recognition process with leadership is crucial

• Deliver the results – the program will survive

– Control charts are powerful

– Visible metrics and accountability in the leadership’s objectives

However, don’t ignore that revitalization is necessary


Project Management Database

• A project management database is key to a sustaining a strong project management culture

• Brambles uses EnterpriseTrack from Instantis

– Implemented in February 2006 for LeanSigma projects

– All other functions onboarded by December 2008, including IT

– Brambles renamed it eProject It supports all project methodologies, including:

» IPECC for general projects

» DMAIC & DFSS for Six Sigma projects

» Lean for Lean Transformation projects and Kaizen events

» RUP and Software Development for IT-related projects

– It is “workflow-enabled” to alert project team members of assignments and their due dates

– It provides “real time” status of projects Flip


Project Management Training Scope

• Keep it simple for phase 1

– Start by rolling out basic PM training

• Defined PM Framework

– Aligned to existing business improvement methods

• Modules on best practices / key PM tools for all project types

• Functional teams trained as experts initially to support / mentor project leaders


IPECC FrameworkFrom strategic project goals to operational impact

Act Operationally

Plan Tactically

Think Strategically Initiation

Execution

Planning

Closing

Controlling

What is the result wanted?

How will this get done?

What must I do?


IPECC Methodology

Planning, Executing and Controlling Phases tend to be Iterative

Initiating

Planning

Executing

Closing

Controlling


Project Management Framework IPECC

EFFECTIVE TEAM MEETINGS

PROJECT CHARTER

INITIATE PLAN EXECUTE CONTROL CLOSE

TEAM ROLES

CONFLICT MANAGEMENT

SCOPE MANAGEMENT

TEAM MANAGEMENT

PROJECT PLANNING

COMMUNICATION

RISK / ISSUE MANAGEMENT

BUDGET MANAGEMENT

PROJECT PITFALLS


Project Management Framework DMAIC

DEFINE MEASURE ANALYZE IMPROVE CONTROL

EFFECTIVE TEAM MEETINGS

PROJECT CHARTER

TEAM ROLES

CONFLICT MANAGEMENT

SCOPE MANAGEMENT

TEAM MANAGEMENT

PROJECT PLANNING

COMMUNICATION

RISK / ISSUE MANAGEMENT

BUDGET MANAGEMENT

PROJECT PITFALLS

PROJECT PLANNING


Project PhasesInitiating

• Brief phase that starts the project process

• Demonstrate project need and feasibility

• Defining project requirements

• Developing the project team

• Key is to launch project

Project Charter

Document

Project Charter

Document

Threat/Opportunity Customer Requirements Goals & Deliverables Tollgates Role Responsibilities Scope of Activity

Review project scope for completeness

Refine project estimates

Assign project roles and responsibilities

Conduct a “kick-off” meeting

Deliverables in eProject


Project PhasesPlanning

• Largest phase from an effort and deliverable perspective

• Create project schedule

• Assigning resources

• Establishing budget

Risk PlanRisk Plan

StakeholderRoles

StakeholderRoles

BudgetBudgetScheduleSchedule

Project Charter

Document

Project Charter

Document

Detailed project scope Detailed project plan Detailed resource plan Refined project estimate Quality plan Organizational HR change plan Risk plan


• Stakeholder analysis

• Assessing risk

• Assembling project plan

• All the project details are planned to ensure effective executions


Project PhasesExecuting

• The actual project work is accomplished

• Making assignments

• Establishing procedures

• Communication plan

• All aspects of the plan are performed and outputs delivered

CommunicationsPlan

CommunicationsPlan

Action PlanAction Plan

ScheduleScheduleScheduleSchedule

Project Charter

Document

Project Charter

Document

Develop / build project deliverables

Manage project team



Project PhasesControlling

• As the work is executed it is important to monitor the project work and ensure activities are performed as planned.

• Managing assignments

• Assessing progress to plan

• Managing changesChange

DocumentsChange

DocumentsTracking

ScorecardsTracking

Scorecards

Project Charter

Document

Project Charter

Document

Change control Schedule control Cost control Quality control Risk & Issues management



Project PhasesClosing

• Formal project closure after all deliverables are accepted

• Close all contracts etc.

• Final project review

• Develop closeout & transition plan

• Create final report

• Post project feedback/lessons learned

LessonsLearned

LessonsLearned

SOP’sSOP’s

Project Charter

Document

Project Charter

Document

Close project in eProject



0%

5%

10%

15%

20%

25%

30%

35%

40%

Processes and Project Manager Time

32

Initiation ExecutionPlanning ClosingControl


Project Lifecycle

The project phases are not always linear.

Typically, project phases overlap.


Project Life Cycle vs. Product Development Life Cycle

FeasibilityStudy

DetailedDesign

PrototypeDevelopment

Product Development Life Cycle

ManufacturingRamp

Up

Initiation PlanningExecution &

ControlClosing


Initiating

Planning

Executing

Closing

Controlling

Phase Objectives:• Demonstrate project need• Define project requirements• Develop the project team

Deliverables:• Project charter/scope document

Phase Objectives:• Create project schedule• Assign resources• Stakeholder Analysis• Asses risk• Assemble project plan

Deliverables:• Detailed project plant

Tools/Concepts:• Team charter template• SMART Goal definitions• RASIC

Tools/Concepts:• Work Breakdown Structure • GANTT charts• Critical Path• Stakeholder mapping• Stakeholder analysis

Phase Objectives:• Making assignments• Establishing procedures• Communication plan

Deliverables:• Execute the plan

Phase Objectives:• Develop close out & transition plan• “Clean up after yourself”

Deliverables:• Create final report

Phase Objectives:• Manage assignments• Assess progress• Manage change

Deliverables:• Managing the project

Fundamentals of Project Management – Project Lifecycle

Tools/Concepts:• Scorecards • Scope change document

Tools/Concepts:• Work Breakdown Structure • GANTT charts• Risk Matrix

Tools/Concepts:• SOP’s• Project Documentation


Key Learnings – IPECC Methodology

• IPECC is a standard methodology for projects

• Used worldwide and endorsed by the Project Management Institute

• IPECC methodology is applicable when implementing a known solution

• For projects when solution is not yet identified, DMAIC methodology is more relevant

– PM Tools (i.e. soft skills) are still applicable but project framework should be DMAIC

IPECC provides a standard approach and common language for implementing projects


Summary


– Understand and define the Project Lifecycle


– Link to the organization’s objectives or QFD

• How does one keep the pipeline of projects coming in? Are there methodologies to identify projects to ensure that process improvement is continuous?

– Develop and utilize a Methodology Selector



Summary


– Regular project reviews

• Keeping ongoing projects on schedule – Project Management database with governance

• Measuring the success and maturity of program– Establish annual goals and put into the performance objectives

• Sustaining controls once a project has closed– It’s hard to do!

– Control charts; metrics posting; performance goals

• Translation of projects across regions, departments and other projects – It’s hard to do!

– A database helps

– Regular forums to identify and share translatable projects


Questions?

Brambles’ approach to Project Management

Documents

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