Capturing and Applying Lessons Learned for Continuous Process Improvement Jim Wasson, Ph.D., MBA,...

Capturing and Applying Lessons Learned for Continuous Process Improvement

Jim Wasson, Ph.D., MBA, PMPSC Small Business Development Center

6296 Rivers Avenue, Suite 300North Charleston, SC [email protected]

www.scsbdc.com843-804-9026

http://www.scsbdc.com/

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www.scsbdc.com/Technology.php

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Review and Proposal Assistance• Business Planning & Financing• Growth Strategy Development • Intellectual Property Strategies• Marketing & Business Development• Project Management Assistance• General Business Management

“Winning SBIR Contracts” Workshop on June 24 @ 1:00pm at St. Leo’s UniversityRegister online at http://charlestonsbdc.webs.com/workshops

Introduction

• Lessons learned is one of the most important value added aspects of Project Management; however, it is often the most ignored.

• By not learning from failures we are doomed to repeat the same mistakes.

• By not maximizing on success we miss opportunities to implement best practices.

• Real value is the ability of an organization to establish a culture of Continuous Process Improvement.

Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings

Project Managementhas Complex Dimensions

SocioculturalLeadershipProblem solvingTeamworkNegotiationPoliticsCustomer expectations

TechnicalScopeWBSSchedulesResource allocationBaseline budgetsStatus reports

©The McGraw-Hill Companies, 2000

Project Life CycleProject

DefinitionProject

PlanningProject

ExecutionProject Delivery

Lev

el o

f ef

fort

1. Goals2. Specifications3. Tasks4. Responsibilities5. Teams

1. Schedules2. Budgets3. Resources4. Risks5. Staffing

1. Status reports2. Changes3. Quality4. Forecasts

1. Train customer2. Transfer documents3. Release resources4. Reassign staff5. Lessons learned

Charter: What?Why?How?

Plan:When?Who?How

Much?Monthly Reviews:How are we doing?

- Performance- Time & Cost

Final Report:How did we do?


Some Typical Lessons Learned

– Lack of understanding of the Scope of the Project– Lack of understanding of Stakeholder Issues and Concerns– Failure to form a High-Performance Project Team– Lack of an approved Project Charter and Project Plan– Lack of a detailed Work Breakdown Structure (WBS)– WBS not integrated with Organization Breakdown Structure– Lack of disciple in issuing and controlling Work Packages– Faulty Statement of Work (SOW), Specifications, Standards– Unrealistic Project Planning Cost and Duration Estimates– Missing a detailed Network Plan and Project Schedule– Unrealistic Resource Planning or lack of a Project Budget– Missing or insufficient Issue, Risk and Opportunity Planning– Lack of a Communication Plan to Track and Report Metrics

Understanding Project Scope787 vs. 777

Technology

Pace

Complexity NoveltyLow

Med

High

Derivative Platform NTWCompAssemblySystemSoS

Fast

Time Critical

Higher technologyrequires more design cyclesHigher complexity requires

more formal PM structure

Faster Time requirescoordinated parallel tasks

More Novelty requiresearly test marketing

Courtesy of Dr. Aaron Shenhar (www.splwin.com)

Network of Stakeholder Relationships

PA

ProjectManager

Team

Project Team

Project

FunctionalManagers

Administrativesupport

ProjectManagers

Projectsponsors

Topmanagement

Customers

Media

Governmentagencies

Contractors


Stakeholder Communications

• 1989: B-2 slashed from 132 to 20 stealth bombers– Perceived decline in Soviet threat– Growing concern about U.S. budget deficit– But mostly poor media relations campaign

• Lesson One: Work with Public Affairs Officers– Made public in 1989. Organizational culture change required.

• Lesson Two: Keep it Simple– Media doesn’t understand amortization impact of producing one

plane per year versus 3-5 per month. Hospital analogy.

• Lesson Three: Answer the Critics– Media left their audience with an impression of incompetence

Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992

Stakeholder Communications

• Lesson Four: Cultivate the Media– Narrow the field and build a rapport– Provide accurate and timely information– Simply your answers

• Lesson Five: Follow the Rules of the Media Game– Strong “first come-first served” ethic– Reporters will only give you the general topic not questions in advance

and you are never “off the record”– Ask to preview articles before publication to catch mistakes– Banish “no comment” or “sorry, its classified”

Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992

Influ

ence

Interest

High Power, High Interest

Low Power, Low Interest

High Power, Low Interest

Low Power, High Interest

Stakeholder Interest and Influence

IT Staff

Jack Jones

Finance

PMO

AirlinesFAA

Suppliers

Creating a High-Performance Project Team

Recruitteam members

Superiorperformance

Conduct project meetingsEstablish team identityCreate a shared visionBuild a reward system

Manage decision makingManage conflict

Lead team-building sessions


A vision must communicate a strategic sense, instill passion and inspire the team

An Effective Project Leader is…

• A clarifier: listens, summarizes, and makes things clearer.• A coach: encourages others to develop their skills.• A facilitator: helps the group set goals, make decisions, choose

directions, and evaluate progress.• A delegator: helps each group member apply her talents and

interests to the group's goals.• An initiator: gets things moving.• A manager: coordinates the parts of a project. keeps an eye on

progress.• A mediator: helps resolve differences.• A networker: connects people with people and people with ideas to

move the project forward.• A problem-solver: suggests solutions and ways to get things done.• A visionary: sees creative solutions, new directions, and

possibilities.

Project Management Trade-Offs

RiskQua

lityTypicalProject

Constraints

Resources

ScopeCost Tim

e

Project Cost-Time Graph60

50

40

30

20

10

04 6 8 10 12 14 16

Totalcosts

Optimumcost-time

point

Directcosts

Indirectcosts

Low-costplan duration

point

Project duration

Cos

ts



Hierarchical Breakdown of the WBS

1

2

3

4

Project

Deliverable

Subdeliverable

Lowest subdeliverable

Cost account*

Work package

Complete project

Major deliverables

Supporting deliverables

Lowest managementresponsibility level

Grouping of work packagesfor monitoring progress andresponsibility

Identifiable work activities (SOW)

WBS Level Hierarchical breakdown Description

*This breakdown groups work packages by type of work within a deliverable and allows assignment ofresponsibility to an organizational unit. This extra step facilities a system for monitoring project progress

Work Breakdown Structure (WBS)Personal computer

prototype

Vendor,software,

applications

Mouse,keyboard,

voice

Diskstorageunits

Microprocessorunit

Moreitems

Floppy HardOptical Internalmemory

unit

BIOS (basicinput/output

system)

ROM RAM I/O File Utilities

Motor Circuitboard

Chassisframe

Read/writehead

WP-1M WP-1 CB WP-1 CF WP-1 RWHWP-2 CB WP-2 CF WP-2 RWHWP-3 CB WP-3 CF WP-3 RWHWP-4 CB WP-4 RWHWP-5 CB WP-5 RWHWP-6 CBWP-7 CB

~ ~ ~ ~ ~

~ ~

~ ~

Work packages

Lowest manageablesubdeliverables

Level1

2

3

4


WBS and Organization Breakdown Structure Integration

Time

Cost accountnumber

Personal computerprototype

Vendor,software,

applications

Mouse,keyboard,

voice

Diskstorageunits

Microprocessorunit

Moreitems

Floppy HardOptical Internalmemory

unit

BIOS (basicinput/output

system)

ROM RAM I/O File Utilities

Motor Circuitboard

Chassisframe

Read/writehead

~ ~ ~ ~ ~

~ ~

~ ~

Lowest manageablesubdeliverables

Level1

2

3

4

1.0

1.2 1.3 1.1 1.4

1.1.1 1.1.2 1.1.31.4.1 1.4.2

1.4.1.1 1.4.1.2 1.4.2.1 1.4.2.2 1.4.2.3

1.1.3.1 1.1.3.2 1.1.3.3 1.1.3.4

Cost 1.1.3.4.1account

Cost Costaccount account

Cost Costaccount account

Costaccount

Costaccount

Work packages WP1.1.3.4.2.1 WP1.1.3.4.2.2 WP1.1.3.4.2.3

Budget byperiod

Production

Design

Test

Purchasing

Software

Manufacturing

Organization


Organization Breakdown Structure

Work Packages allow Monitoring & Control

Database

Work PackagesTimeResources Labor Materials Support effortBudgetsResponsibilities (SOW)Performance Specs & Stds

Plan,schedulebaseline

Control

Time, cost andspecifications

byDeliverables

andOrganization

ScopeDeliverables

WBS

Org

aniz

atio

nO

BS


Realistic Project Planning Estimates

Best-case schedule

Baseline schedule

Worst-case schedule

Actual scheduleForecast completion

schedule

10%

50%

90%

470 days

500 days

590 days

510 days300 days

Actual tracking schedule


Baseline =[Pessimistic + (4 x Most Likely) + Optimistic]6

Network Diagram (PERT Chart)

1 Orderreview

20 20 2

2

3

4

5

Softwaredevelopment

Orderstandard

parts

Producestandard

parts

Designcustom parts

18 2 2022 40

15 2 1715 30

10 2 12 5 15

13 2 15 2 15

6

7 8

Manufacturecustom

hardware

Assemble Test

Activity8#

Legend

1515 3015 30

1030 4030 40

540 4540 45

DurationES EFLS LF

Note: Red Line is the Critical Path


Project Schedule (Gantt Chart)

0 7 14 21 28 35 42 49

2

13

15

10

18

15

10

5

1. Order review

5. Design custom parts

3. Order standard parts

4. Produce standard parts

2. Software development

6. Manufacture customhardware

7. Assemble

8. Test

Slack Time Key Milestones


Note: Red Line is the Critical Path

Project Constraint Examples

Pour Frame Roof

Design Code Test

Technical constraints

(A)

Plan

Purchaserefreshments

ReceptionDecoratehall

Hire band

(B)

Resource constraints

Plan Hire bandDecorate

hallPurchase

refreshmentsReception(C)


Resource Leveling

ID RES DUR ES LF TS 0 1 2 3 4 5 6 7 8 9 10 11 12

A 2 2 0 2 0 2 2

B 2 6 2 10 2 X X 2 2 2 2 2 2

C 2 4 2 6 0 2 2 2 2

D 1 2 2 10 6 1 1

E 1 2 6 10 2 1 1

F 1 4 6 10 0 1 1 1 1

G 1 2 10 12 0 1 1

2 2 3 3 4 4 4 4 3 3 1 1Total resource load

Leveled Resource Load Table

Early Start Resource Load Table


A 2 2 0 2 0 2 2

B 2 6 2 10 2 2 2 2 2 2 2

C 2 4 2 6 0 2 2 2 2

D 1 2 2 10 6 1 1

E 1 2 6 10 2 1 1

F 1 4 6 10 0 1 1 1 1

G 1 2 10 12 0 1 1

2 2 5 5 4 4 4 4 1 1 1 1Total resource load

Boeing 787 Aft Body

Poor Resource Leveling

Example

Risk Event Graph

Risk

High

Cost

Low

Project life cycle

Chances of risksoccurring

Cost to fixrisk event

• Crisis management requires significant resources• Typically constrained by limited alternatives • Best to mitigate risks before they become issues


Pre-Concept RefinementMaterial Solution Analysis

Technology Development

Engineering and Manufacturing Development

Production & Deployment

RIO Process

1. Identify Risk , Issue or Opportunity2. Analyze Risk, Issue or Opportunity3. Assess Available Options / Disposition4. Develop Mitigation, Resolution or Capture Plan5. Perform to the Approved Plan6. Track & Communicate Progress (see cubes)

Risk Assessment Matrix

Systemfreezing

Low High Low Startup

Userbacklash

High Medium MediumPost

installation

Hardwaremalfunctioning

Medium High High Installation

Risk eventChance-

LMHSeverity-

LMH

Detectiondifficulty-

LMH When


Responses to Risk Matrix

Risk eventAccept, reduce,avoid, transfer

Contingencyplan Trigger

Systemfreezing

Reduce Reinstall OSStill frozenafter 1 hour

Userbacklash

ReduceIncrease staff

supportCall from topmanagement

Hardwaremalfunctioning

TransferOrder different

brandReplacementdoesn't work


Risk Cube

1

2

3

4

5

1 2 3 4 5

High

Moderate

Low

Consequence

Lik

elih

ood

- Current

O - Original

X Low

Moderate

High

Lik

elih

oo

d

Consequence

Opportunities Cube

Metrics - Schedule Control Chart

20

Today

Ahead ofschedule

Behindschedule

Schedule outlook

15

10

5

0

-5

-10

-15

-200 1 2 3 4 5 6 7 8 9 10 11 12 13

Reporting period

Timeperiods

A similar chart can be developed to depict Cost Variance


Metrics - Earned Value Chart

EAC

BAC

CV

SV

ACWPactual cost

BCWSbaseline

BCWPearned value

10 20 30 40

25%$100

50%$200

75%$300

85%$340

100%$400

125%$500


Why Lessons Learned?

• Organization Memory• Turnover demands an internal database

• Quality Customer Service• Document what they have bought• Whether they have expressed any concerns• How those concerns were handled

• Employee Involvement• Top management support• Make mistakes and learn from them• Recognize familiar patterns and avoid them

Courtesy of Carl L. Pritchard, “Lessons Learned in 21st Century”, PMI Symposium 1997

Capturing & Applying Lessons Learned

1. ID Success, Failures, Recommendations

2. Document and Report on Findings

3. Analyze Findings for Cause & Effect

4. Store Results in Project Repository

5. Retrieve Lessons Learned

• Questionnaire• Discussion Session

• New Processes• Best Practices

• Exec Summary• Action Items• Metrics

• Actions Taken• Keywords

• Kick-Off Meeting• Risk Planning


Capturing Lessons Learned

1. Questionnaire Surveys sent out in advance– Document what went right, what went wrong and

what needs to be improved.– Organize by categories (such as knowledge areas,

phases, tasks or processes)– Quantitative questions (Likert scales) for statistical

analysis and qualitative (open-ended) questions2. Conduct Lessons Learned Session

– Identify participants and review survey results– Have a list of questions, assign roles, ground rules– Facilitator other than PM guides the brainstorming– Criticize the process - never the people!


Testing ran into the holidays

Fabrics arrived late for testing Adequate fabric

swatches were made available

Lots of fabric suppliers were found

Seat Fabric Analysis

Blah-blah

Yata-yata

Etc-etc

Courtesy of PM One

39

Testing ran into holidays

Fabrics arrived late for testing Adequate fabric

swatches were made available

Lots of fabric suppliers were found

Seat Fabric Analysis

Blah-blah

Yata-yata

Etc-etc

Ranking is by IMPACT to Project!

Courtesy of PM One

Applying Lessons Learned

3. Analyze & Organize Data– Conduct Root Cause Analysis

• Fishbone chart and/or “five whys”– Implementers should develop solutions

• Process improvements and/or training programs4. Store Results in Project Repository

– Use a standard template for consistency• Category, project name, lesson learned, root

cause, action taken, keywords, etc.– Assign a resource to manage the database– PMs are responsible for providing their lessons

learned inputs prior to project close-out


Applying Lessons Learned

5. Retrieve & Use Lessons Learned– Meet with Leadership to discuss new project

approach which includes lessons learned from past– Discuss lessons learned at project kickoff meeting– Use lessons learned for identifying project risks and

developing risk mitigation strategies– Treat each project as a learning experience and

shares knowledge with the organization– Be on the lookout for best practices– Develop a culture of continuous process

improvement


Lessons Learned Best Practices

• Review lessons learned from previous projects at the beginning of your project. Standard Operating Procedure.

• Conduct lessons learned sessions at various times throughout the life of your project. Must be timely.

• Have someone other that the PM facilitate the lessons learned session and ask focused open-ended questions.

• Use templates for consistency. Keep it simple. Keywords.• Perform a root cause analysis and engage appropriate

resources to implement solutions.• Assign a Database Administrator to store on the Intranet.• Use lessons learned during risk and opportunity planning.• Leadership involvement to eliminate fear of retribution or

peer ostracism. Performance Reviews on the use of LL.


Please schedule an appointment:

Jim Wasson, Ph.D., MBA, PMPTechnology Business Consultant

Small Business Development Center

6296 Rivers Avenue, Suite 302North Charleston, SC [email protected]

843-804-9026

Capturing and Applying Lessons Learned for Continuous Process Improvement Jim Wasson, Ph.D., MBA,...

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