ESD.36J System & Project Management...Cumulative Effort Expended : Class7x Slip Early Month*Person...
Transcript of ESD.36J System & Project Management...Cumulative Effort Expended : Class7x Slip Early Month*Person...
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ESD.36J System & Project Management
Dynamics of Project Performance
System Dynamics and Project Management
Lecture #20, SD Class Eight (11/13/00)
Copyright © 2003 James M. Lyneis
Gathering Data+
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Progress
Rework But, the splitdiscovery can be cannot be measured and determined used to estimate as it is split after the fact happening
Quality Measured
Progress
Rework Discovery
Productivity
Work To Be Done
Undiscovered Rework
Known Rework
Work Really Done
Can be
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Topics+
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• A System Dynamics View of Execution and Adaptation
• Project dynamics summary
• Strategic project management & learning
• Lessons Learned
• Broader issues – multi-project and market interactions
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Selected Issues in Execution & Adaptation
� Managing Risks and Changes: � Schedule adjustments � Staffing strategies
A Strategic View – Deciding in advance the best way to handle problems if
they arise
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In the face of a projected schedule overrun, is it better to slip as soon as you know it or wait and see if corrective actions will help?
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- Graph for Staff Level 20
15
10
5
0
No Slip
Slip Early (and all along)
Slip Late
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 Time (Month)
Staff Level : Class7x Base People Staff Level : Class7x Slip Late People Staff Level : Class7x Slip Early People
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-Graph for Cumulative Effort Expended
400
300
200
100
0
Slip Early (and all along)
No Slip
Slip Late
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 Time (Month)
Cumulative Effort Expended : Class7x Base Month*Person Cumulative Effort Expended : Class7x Slip Late Month*Person Cumulative Effort Expended : Class7x Slip Early Month*Person
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-Conclusions
� If project priorities favor cost over schedule, it’s better to slip the schedule early rather than wait until the damage is done. [Note: if rework creation is high enough, not slipping early can make the project finish later!]
� Use buffers early.
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-Selected Staffing Issues
� Should staff be added to a late project (Homework 4 question)? � Unless new staff are 100% productive from
day 1, adding staff increases cost; � And, can make project later if the quality hit
is large enough � Should you start with the expected full
team, or staff up gradually?
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Topics+
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• A System Dynamics View of Execution and Adaptation
• Project dynamics summary
• Strategic project management & learning
• Lessons Learned
• Broader issues – multi-project and market interactions
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Examples of Behavior Modes on a Project
Project Staffing
Typical Plan
TimeCopyright © 2003
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-Examples (continued)
Fraction Complete
Time
.5
1
Typical Plan
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-Examples (continued)
Productivity
Time
1
2 Typical
Plan
(Normalized)
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Project problems persist in spite of numerous advances in the last 30 years
� PERT and CPM (Critical Path Method)� Waterfall, Spiral, …
� Emphasis on “soft,” people factors
� Microsoft Project
.. and Learning is not happening Why???
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-Why??
Project performance problems are fundamentally dynamic problems,
and Managers mental models and typical tools (computer models): � take a partial view � view a project statically � treat projects as if they were unique
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Systems thinking and dynamic modeling provide the means of ...
... understanding the structure of projects, and how that structure creates behavior; ... designing robust projects
... learning across projects
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-Dynamics of Project Performance
� The “rework cycle” � Quality � Undiscovered rework
� Feedback effects on productivity and work quality � Positive, re-enforcing, often “vicious
circles” � Negative, controlling
� Knock-on effects between work phases Copyright © 2003
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- The Rework CycleKey to Project Dynamics
le
WORK
BEING DONE
Peop Productivity Quality
WORK TO BE DONE
KNOWN REWORK
UNDISCOVERED REWORK
WORK REALLY DONE
Rework Discovery
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Work Quality to Date
CompletionTime
Expected Completion
Time Availability
of Prerequisites
Progress
Schedule Pressure
Out-of-Sequence Work
Morale
Hours at Completion
Hours
to Date
Skill & Experience
Hiring
EquivalentStaff on Project
StaffingRequested
TurnoverOrganizational
Changes
Staff
Quality
Added Work
Work
Overtime
Time Remaining
Be Done
Project Dynamics
Scheduled
Perceived
Expected ExpendedProgress
Rework Discovery
Size
Productivity
Obsoleted
Work To
Undiscovered Rework
Known Rework
Work Really Done
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A system dynamics model usually represents several phases of work, but is more aggregate than a CPM model
System Engineering
Software Code and Test
Hardware Design
Hardware Build and Test
Integrate and Test
Software Design
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Topics+
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• A System Dynamics View of Execution and Adaptation
• Project dynamics summary
• Strategic project management & learning
• Lessons Learned
• Broader issues – multi-project and market interactions
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-Corporate Strategy for the Project
Determining the fit of the project to business objectives (the “mission”)� features / scope � schedule milestones (time to market) � delivered quality (defects) � resources & budget And the mix/timing of “projects” necessary to
achieve corporate strategy
Operationally, “projects” implement corporate strategy.
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-Strategic Project Management
Understanding how project “design” decisions affect project performance …� Organization, process, ...� Buffers, phase overlap, ...� Staffing strategies, schedule slip, ...� ...
… and how they affect other current projects (portfolio issues), and future projects.
Operationally, “day-to-day project decisions” implement project strategy.
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An important part of strategic project management is learning from past
projects ...
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Why Do Organizations Seem So Poor at Learning Lessons From Prior Projects?
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-Action is a feedback process
RealWorld
Decisions Information Feedback
Goals
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For example, controlling shower temperature
Real World
Reduce hotReduce hot water flowwater flow TemperatureTemperature
too hottoo hotInformationDecisions Feedback
Goals
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-Or a project ...
Real World
Add peopleAdd people Project behindProject behind scheduleschedule
InformationDecisions Feedback
Goals
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Action is based on mental models …
RealWorld
Decisions Information Feedback
Strategy, Mental Structure, Models Decision of Real
Rules World
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-Model for shower control
RealWorld
Decisions Information Feedback
Reduce hotReduce hot water flowwater flow TemperatureTemperature
too hottoo hot
Strategy, Mental Structure, Models
of Real World
Decision Rules
““Reduce hot water flowReduce hot water flow Temperature =Temperature = when temp. too hot”when temp. too hot” hot flow + coldhot flow + cold
flowflowCopyright © 2003
9/23/03 - ESD.36J SPM James M. Lyneis 30
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-And project control
Real World
Project behindProject behindAdd peopleAdd people scheduleschedule
InformationDecisions Feedback
Strategy,Structure, Decision
Rules
““Add people when weAdd people when we fall behind.”fall behind.”
Mental Models of Real World
Progress =Progress = People *People *
ProductivityProductivityCopyright © 2003
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Learning also results from feedback (“experience”)
RealWorld
Decisions Information Feedback
Strategy, Mental Structure, Models Decision of Real
Rules World
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Action, and learning, become difficult when there are significant time delays
RealWorld
Decisions Information Feedback
Reduce hotReduce hot water flowwater flow TemperatureTemperature
too hottoo hot
Delay
Strategy,Structure,
Mental Models
““Reduce hot water flowReduce hot water flow
of Real World Temperature =Temperature =
hot flow + coldhot flow + cold when temp. too hot”when temp. too hot” flowflow
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Decision Rules
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… and where the cause effect chains are many (“side effects”)
Real World
Decisions Information Feedback
Add peopleAdd people
Delay Delay Experience dilution, supervision time, Congestion, … Project behindProject behind
scheduleschedule
Learning from experience is difficult
Strategy, Mental Structure, Models
of Real World
Decision Rules
Progress =Progress =““Add people when weAdd people when we People *People *
fall behind.”fall behind.” Productivity * …Productivity * …Copyright © 2003
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© 2003
Learning is difficult in a complex world
Mental ModelsStrategy, Structure,Decision Rules
dynamics from cognitive maps
Decisions Information Feedback
controlled experiments
Adapted from
, etc.
ESD.36J SPM Copyright James M. Lyneis
• Misperceptions of feedback • Unscientific reasoning • Judgmental biases • Defensive routines
• Inability to infer
• Implementation failure • Game playing • Inconsistency • Performance is goal
• Selective perception • Missing feedback • Delay • Bias, distortion, error • Ambiguity
Real World • Unknown structure • Dynamic complexity • Time delays • Inability to conduct
Sterman, Business Dynamics
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© 2003
• failure
• • •
goal
• l• •
• Learni l
Decisions
• • • i• •
i i
Mental Models • •
•
• i
• l l• i
Real World • • • •Models
can play a significant role
Adapted from
, etc.
ESD.36J SPM Copyright James M. Lyneis
Real World Implementation
Game playing Inconsistency Performance is
Virtual World Perfect imp ementation Consistent incentives Consistent application of decision rules
ng can be goa
Virtual World Complete, accurate, immediate feedback
Real World Selective perception Miss ng feedback Delay Bias, distortion, error
• Amb gu ty
Information Feedback
Mapping of feedback structure Disciplined application of scientific reasoning Discussability of group process, defensive behaviour
Strategy, Structure, Decision Rules
Simulation used to nfer dynamics of cognitive maps correctly
Virtual Worlds • Known structure
Variable evel of comp exity Controlled exper ments
Unknown structure Dynamic complexity Time delays Inability to conduct controlled experiments Sterman, Business
Dynamics
Steps in Learning – Scientific Method
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1. Gather data 2. Develop model(s)3. Validate/Calibrate4. Evaluate lessons: what would have happened if …
� Unplanned events (risks), changes, … did not occur � Management changes had not been made
5. Systematize via data base, benchmarks, rules ofthumb, training, game?
This is not easy and takes effort over multipleprojects on an on-going basis to be successful!
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-“But my project is different!”
� The rework cycle, with dynamic productivity and work quality, is one generic model (or framework).
� Benchmarking, lessons, and learning can be transferred across projects.
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Topics+
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• A System Dynamics View of Execution and Adaptation
• Project dynamics summary
• Strategic project management & learning
• Lessons Learned
• Broader issues – multi-project and market interactions
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-Lessons -- 1
� Getting a feasible project design (consistent mission) is the first step to avoiding adverse project dynamics
� Prior projects are the best source of information with which to design a robust project
� There is an optimal tradeoff among scope, budget, schedule, and delivered defects
Bid & plan project right
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-Lessons -- 2
� Recognize the rework cycle and plan to minimize its consequences:� Quality -- do it right the first time � Undiscovered rework -- avoid quality on
quality surprises (estimate real progress) � Rework discovery time -- prioritize rework
detection and correction over new work
It’s the undiscovered rework!
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Actions to Reduce Rework Discovery Delay
1. Recognizing the existence of the rework cycle and the costs of undiscovered rework is half the battle � Professor Eppinger’s DSM example � F-18
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© 2003
Semiconductor Development Example 1 2 3 4 5 6 7 8 9
1 Set customer target • x x • 2 Estimate sales volumes x • x x • 3 Establish pricing direction x • x • 4 Schedule project timeline • x 5 Development methods x • x x x x 6 Macro targets/constraints x x • x x x x 7 Financial analysis x x x x x • 8 Develop program map x • x 9 Create initial QFD matrix x x x x •
10 Set technical requirements x x x x • x 11 Write customer specification x x x x x • O O O O O O O O 12 High-level modeling x x x x • x x x 13 Write target specification x x x x x x x x x • x x 14 Develop test plan x x x x x • x 15 Develop validation plan x x x x • 16 Build base prototype x x x x x x • 17 Functional modeling x x x x x • x x x x x x x x O O O O O O O O O O 18 Develop product modules x x x x x x x x x • O 19 Lay out integration x x x x x x x x x • 20 Integration modeling x x x x x x x • x x x 21 Random testing x x • x x x 22 Develop test parameters x x x x x x x • x x x 23 Finalize schematics x x x x x • x x O O O O O 24 Validation simulation x x x x x x x • x x 25 Reliability modeling x x x x x • x 26 Complete product layout x x x x x • x x 27 Continuity verification x x x x x x • 28 Design rule check x x x • 29 Design package x x x x x • O O O O O O O 30 Generate masks x x x x • x O 31 Verify masks in fab x x x • 32 Run wafers x • x O 33 Sort wafers x • 34 Create test programs x • 35 Debug products x x x x x • O O O O O O O 36 Package products x x x • 37 Functionality testing x x x • 38 Send samples to customers x x x x • 39 Feedback from customers x • 40 Verify sample functionality x • 41 Approve packaged products x x x x • 42 Environmental validation x x x x • 43 Complete product validation x x x x x • 44 Develop tech. publications x x • x x 45 Develop service courses x x • x 46 Determine marketing name x x x x x • x 47 Licensing strategy x x x • 48 Create demonstration x x x x x x • 49 Confirm quality goals x x x x x • 50 Life testing x x x • x x 51 Infant mortality testing x x x x • x 52 Mfg. process stabilization x x x • O O 53 Develop field support plan x x • 54 Thermal testing x x x • 55 Confirm process standards x • x x 56 Confirm package standards x x x x x • x 57 Final certification x x x x x x x x x x x • 58 Volume production x x x • x 59 Prepare distribution network x x x x x x x x • 60 Deliver product to customers x x x x x x x x x •
x = Information Flows = Planned Iterations O = Unplanned Iterations • = Generational Learning
Concurrent Activity Blocks
Potential Iterations
Generational Learning
Sequential Activities
ESD.36J SPM Copyright James M. Lyneis
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
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F-18 Program (on budget and ahead of schedule)
� “I used your work and advice from the start. You made us understand the importance of rework, of finding it early, of reducing it, as well as how we could go about doing it. As a result, we cut our rework effort to one-quarter of what we expected. Not many may know how important your work was, but I do…. Every time someone asked me how we managed to succeed, I take them to the model diagram I keep on my wall, and use that to explain it to them.” Lou Carrier, VP Northrop-Grumman and former F-18 project manager.
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-F-18 Actions
� Model diagram – clear picture, highlighted importance of rework (minimize “kill the messenger”)
� Integrated product teams, including internal HR consultants to facilitate design-mfg. dialogue
� Real time reporting of staff, costs, progress
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Reducing Rework Discovery Delay (and minimizing mistakes)
1. Recognizing the existence of the rework cycle andthe costs of undiscovered rework is half the battle
2. Make maximum use of integrated product teams,including customers and all functions (PeaceShield, F-18)
3. Focus on quality even if it means delaying interimmilestones or start of downstream work
� Peace Shield (delayed staff roll off; reduced phase overlap)
� Auto (design reviews, prototypes, CAE, physical tests) Corollary: don’t charge ahead on a design phase if upstream
(or supplier) information is not available or of high quality
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-Lessons -- 3
� Minimize the vicious circles; avoid, within a phase, ...� aggressive staffing
� sustained overtime
� schedule pressure (measuring and rewarding the wrong behaviors)
� ... and between phases � rigidly sticking to scheduled start without
necessary prerequisites (use buffers early)
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-Lessons -- 4
� Identify key risks and ... � put effort into avoidance and early
detection � alternative processes (e.g. spiral), staffing
strategies (e.g., integrated teams), tools, etc. can improve performance in the right situation, but involve both short-term (implementation) and long-term (greater scope, lower productivity) costs and are not right for every project
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-Lessons -- 5
� Manage changes and problems wisely � Replan and price changes immediately
(don’t hope you can make it up, then discovery trouble 6 months later)
� Negotiate to reduce scope if schedule is critical
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-Lessons -- 6
� Learn ...� Identify leverage points and policies � Share across projects (individual managers
learn, but few share)� Reuse what works
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Selling System Dynamics (Modeling)
� Must be a persistent and costly dynamic problem � Illustrate causes (use rework cycle and feedback
examples) � Provide an example of use relevant to your
organization “SDM students are hereby granted permission
to use any of my lecture slides for internalcompany presentations, with appropriateattribution.” James M. Lyneis, 11/13/2003
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Topics+
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• A System Dynamics View of Execution and Adaptation
• Project dynamics summary
• Strategic project management & learning
• Lessons Learned
• Broader issues – multi-project and market interactions
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-Broader Issues
� Is what’s best for the project best for the company?
� Issues in product portfolios � Market and Customer Dynamics -
setting the mission dimension as a part of corporate strategy
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Is What’s Best for the Project Best for the Company?
Examples of conflicting practices -�
�
�
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-Projects Rarely Operate in Isolation
� While some projects are nearly self-contained with dedicated staff and technical independence, most often projects: � Share staff resources with other projects � Are impacted by technical progress on other
projects, and impact the technical progress on other projects
� And, ...
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-Projects Rarely Operate in Isolation
� … Sometimes projects are part of “programs” -- groups of projects managed in a co-ordinated way to obtain benefits not available from managing them individually, e.g.: � large development effort broken into pieces
for easier management � build off common platforms � phased upgrades
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-Issues in Product Portfolios
Portfolio interactions -� staffing and other resources � technical interdependencies
What happens on one project hassignificant knock-on effects to otherprojects. Aggressive projectassumptions (“inconsistentmission”) adversely affect more thanthe one project.
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-Portfolio Resourcing Issues
� Constraints on Shared Resources � Late and over-budget projects delay ramp-
up of downstream projects � Shared resources (e.g. test facilities) can
also create bottlenecks � Staff working simultaneously on multiple
projects create inefficiencies and delays
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Staff working simultaneously on multiple projects ...
� … may increase total “output” per person as more time is productive ...
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Staff working simultaneously on multiple projects ...
� … but often slows progress on the portfolio of projects: � Productivity reduced by need to refamiliarize
with a project with every shift � Average lead time for an individual’s tasks =
Workload Total / Total Time Available � Even if a person is not overloaded in the
aggregate, there will be some times whenmultiple projects need simultaneous input
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-Time per project with more projects
j
j
0 1 2 3 4 5
j
j
0 1 2 3 4 5
A. Engineer's value-adding time B. Engineer's time per pro ect
Number of pro ects per engineer
Tota
l tim
e sp
ent o
n va
lue-
addi
ng ta
sks
0%
20%
40%
60%
80%
100%
Number of pro ects per engineer
Tim
e sp
ent p
er p
roec
t on
valu
e-ad
ding
task
s
0%
20%
40%
60%
80%
100%
Adapted from: Smith, Preston G., and Reinersten, Donald G., Developing Products in Half the Time, 2nd Edition, John Wiley & Sons, 1998. Copyright © 2003
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Figure by MIT OCW.
Phasing of Project Staffing+
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Project Staffing
Typical Plan
Project 1 Project 2
Time Copyright © 2003
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What happens when Project 1 fails to meet plan?
Project Staffing
Typical Plan
TimeCopyright © 2003
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- Phasing of Project Staffing
Project Staffing
Typical Plan
Project 1
Project 2
Time Copyright © 2003
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- Nelson Repenning’s Tipping Point
� Not only are resources constrained, but � Because of technical
interdependencies, failure to adequately complete the first project causes more work and rework on the second project
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- Repenning’s Model
n l i i
l
i i
i i
Product n+1
Product n+2
ProductConceptDeve opment Product Des gn and Test ng
ConceptDevelopment
ConceptDeve opment
Product Des gn and Test ng
Product Des gn and Test ng
launch dat e for product n-1 launch dat e for product n launch dat e for product n+1
Model Year s Model Year s+1 Model Year s+ 2 Model Year s+ 3
� Two kinds of development work 1 concept development work - take place two years prior to launch
2 detailed design work- takes place one year prior to launch
� Launch date is fixed (this is relaxed in subsequent work).
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Model Feedback Structure cont.+
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DELAY
Goal for Number of DesignConcept Development Design Problems in Problems
Activities on Next Year's Product This Year's Product
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+ -R B Problem Gap
Tipping Loop Rework Loop
+ResourcesResources Dedicated to ThisDedicated to Next Year's ProductYear's Product
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Response to Unplanned Increases in Workload
% of Concept Development Work Quality of Finished Completed Design (% Defective)
Model Year Model Year
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Linking SD Project Models: A Multi-Project Portfolio Model, Or Exogenously-Linked Single Project Models?
� If the number of projects active at one time is small, exogenous (time-dependent) inputs could connect single project models � staff available given needs of other projects � precedence and other constraints
� With a larger number of projects and complex technical interdependencies, a multi-project model is warranted
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-Upstream - Downstream Projects
etion
Progress
li
l i
l i Availabiliisi
i
le
f
le
l i
ill & i
i
l
ional ff
l
ime
ini
i
l
li
led l i
l i Availabiliisi
i
le
l
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Equi lff on
i if
lity
l
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Upstream Progress & Quality
Start DownstreamEffect of
Upstream P&Q
Downstream Progress
Upstream Upstream Progress
Upstream Project
?
Work Qua ty to Date
Scheduled Comp et on
Time
Expected Comp et on
Time ty
of Prerequ tes
Perce ved Progress
ScheduPressure
Out-o -Sequence Work
Mora
Expected Hours at
Comp et on
Hours Expended
to Date
SkExper ence
Hir ng
Equiva ent Staff on Project
Staffing Requested
Progress
Rework Discovery
Turnover OrganizatSize
Changes
Sta
Productivity Quality
Added Work Obso eted
Work
Overt
Time Rema ng
Work To Be Done
Und scovered Rework
Known Rework
Work Real y Done
Work Qua ty to Date
ScheduComp et on
Time
Expected Comp et on
Time ty
of Prerequ tes
Perce ved
Schedule Pressure
Out-of-Sequence Work
Mora
Expected Hours at
Comp
Hours Expended
to Date
Skill & Exper ence
Hir ng
va ent StaProject
Staffing Requested
Progress
Rework Discovery
Turnover Organ zat onal Size
Changes
Staf
Productivity Qua
Added Work Obso eted
Work
Overt me
Time Remaining
Work To Be Done
Undiscovered Rework
Known Rework
Work Real y Done
on Downstream
Rework Discovery
Required
Staff Available
Downstream Project Copyright © 2003
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Parallel Projects (Resource Competition not shown)
Project 1 Phase 1 Progress & Quality
li
l i
l i Availabiliisi
i
le
f
le
l i
ill & i
i
l
ional ff
l
ime
ini
i
l
Effect of Phase 2
Work Qua ty to Date
Scheduled et on
Time
Expected Comp et on
Time ty
of Prerequ tes
Perce ved Progress
ScheduPressure
Out-o -Sequence Work
Mora
Expected Hours at
Comp et on
Hours Expended
to Date
SkExper ence
Hir ng
Equiva ent Staff on Project
Staffing Requested
Progress
Rework Discovery
Turnover OrganizatSize
Changes
Sta
Productivity Quality
Added Work Obso eted
Work
Overt
Time Rema ng
Work To Be Done
Und scovered Rework
Known Rework
Work Real y Done
Phase 2 Rework
Req’d. Effect of Phase Discovery Comp
Phase 2 Progress
ProgressPhase 1 Rework P&Q On
etion Discovery Phase 1
Phase 2 Progress & Progress
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led l i
l i Availabiliisi
i
le
l
i
i
Equi lff on
i if
lity
l
i
l
1 P&Q on
Req’d. Phase 1
Work Qua ty to Date
ScheduComp et on
Time
Expected Comp et on
Time ty
of Prerequ tes
Perce ved
Schedule Pressure
Out-of-Sequence Work
Mora
Expected Hours at
Comp
Hours Expended
to Date
Skill & Exper ence
Hir ng
va ent StaProject
Staffing Requested
Progress
Rework Discovery
Turnover Organ zat onal Size
Changes
Staf
Productivity Qua
Added Work Obso eted
Work
Overt me
Time Remaining
Work To Be Done
Undiscovered Rework
Known Rework
Work Real y Done
Phase 2
Quality Project 2 Copyright © 2003
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-Possible Solutions
� Realistic planning and budgeting ! � Maintaining a buffer of surge capacity � Reducing the number of projects and/or
the scope per project
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Company Strategy as it Affects the Portfolio
� Mix of projects that allow company to remain competitive over time
� Developing new technologies and skills � How much diversification is needed to
reduce risk (and is it worth it if short of resources?) Addressing these issues requires a
different model.
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-Mission Dimensions
Priority & Specific Objectives
High, Stretch Medium Low, Slack
Features / Scope
Defects/ Undiscovered Rework
Resources / Cost
Time-to-Market/ Schedule
What should the “objectives” be? How many can be “high” priority?
Copyright © 2003 9/23/03 - ESD.36J SPM James M. Lyneis
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-Revenue and Profit Drivers …
Sales
Market Demand
+ + Revenue
+ +
ProfitMarket Share -
Costs
Price +
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“Mission” Elements Affect Attractiveness
Market Demand
+ Sales + Revenue +
+
ProfitMarket Share Price -
+ +
Costs
Product Attractiveness
Product Newness
Quality
Scope
+
+
+
Time to Market
-
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“Mission” elements have negative impacts as well …
Revenue
Profit
Sales
Market Demand
Market Share Price
+ +
+ +
Product Attractiveness
Product Newness
Quality
Scope Developement Cost
CostsWarranty Costs
+
+
+
+
Time to Market
+ +
+
-
-
-
Mission Tradeoffs
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Market Model with feedbacks through profit and budget
Market Demand
+ Sales + Revenue +
+
Market Share - Profit Price
+ +
Warranty Costs + Costs +
Product Attractiveness +
Quality+
Scope Developement Cost
+Product +
Newness Development - Budget
Time to Market
Mission Tradeoffs
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Why Do Organizations Seem So Poor at Learning Lessons From Prior Projects?
� Belief that every project is different� Projects are transient phenomena -
companies often do not have organizations, money, systems, etc. that span projects, esp. to learn the lessons
� Limited span and career path of good project managers
� Lack of a framework (model) for comparing
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Is What’s Best for the Project Best for the Company?
� Examples of conflicting practices -� Using the best people only � Using only experienced people � Introducing new processes (Sterman and
Repenning work at Sloan School)
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