Implementing a Basic PMO for Design and …...3.2 Final Budget Review Meeting 4.1 Initial AFE Review...

Implementing a Basic PMO for Design and Construction using Agile MethodsCASE STUDY: AN AGILE APPROACH TO IT INFRASTRUCTURE DESIGN AND CONSTRUCTION

© 1989-2015 RP Delio & Company, Inc. All Rights Reserved. 1www.rpdelio.com

titleSUBTITLE

IntroductionsR.P. DELIO & COMPANY

Engineering Program Success™ is the mantra at RP Delio and Company. We have focused the better part of the last ten years in the research and development of agile methods that can be used effectively for design and construction project management.

Through the application of these agile methods we created techniques that are broadly applicable, across a wide spectrum of disciplines, greatly enhancing project success.

Raymond “RP” Delio

President and CEO

Maria Garcia

Design and Construction Manager


Agenda

Introductions 2

Agenda 3

Learning Objectives 4

Why Develop an Agile Approach? 5

Overview 6

Framework 8

Example PMM 9

Example PxMP 10

Example PMM Showing Implementation Phase Milestones 11

Defining the PMO Maturity Model 12

Project Success Factors 13

Define the PMO Maturity Model 15

Todays Focus – The Basic PMO 18

Comparative Analysis of Agile vs Design and Construction 22

Example PHS 24

Case Study 26

Questions to consider when Implementing the Basic PMO 27

Results and Lessons Learned 28

Questions 30


Learning Objectives

When you have completed this lecture you will understand:

• Our rational for applying Agile to Design and Construction Project Management

• A model for mapping Agile to Design and Construction Project Management

• The PortfolioOS™ Framework and its major components

• The Fifteen Project Success Factors (PSF) and how they relate to OPM3

Additionally you will be able to:

• Recite the Most Important Three Project Success Factors (PSF)

• Construct the tools necessary to implement a Basic PMO


Why Develop an Agile Approach?TO DESIGN AND CONSTRUCTION PROJECT MANAGEMENT

• Searching for a structured approach to lean, low cost, and reproducible Design and Construction Project Management.

• Realized that there was nothing in the market place that a mechanical engineer and plumber, or an architect and carpenter could relate to.

• Crystalizing moment was accepting that “Design” is an intellectual process much like software programming, and so the adventure began.

• Eight years spent researching, developing, deploying and assessing agile methods for Design and Construction Project Management


OverviewIMPORTANT ASPECTS OF PORTFOLIO OS


In order to robustly explain to you our case study, and the results achieved, we need to review 3 important aspects of PortfolioOS™:

PortfolioOS™ Framework

• PMM

• PMW

• PxMP

• PHS

PMO Maturity Model

Project Success Factors

We also need to explain how we undertook:

Agile Mapping to Design and Construction

OverviewIMPORTANT ASPECTS OF PORTFOLIO OS


Project Health Screen (PHS)Quality Control and Assurance

Portfolio Monitoring Workbook (PMW)Reporting and Metrics

Project, Program and Portfolio Management Plans (PxMP)Planning and Governance

Project, Program and Portfolio Management Methodology (PMM)Process Flow, Checklists, Standard Operating Procedures, Vernacular and Phase Gates

Framework


8.0 80% Design Review Meeting9.0 100% Design Review Meeting10.0 Issue For Construction Review Meeting

Construction11.0 Pre Construction Review Meeting12.0 Contractor / Line Crew Construction Mobilize13.0 Final Termination and Fiber Splicing14.0 Commissioning, Turn Up, and Final Testing15.0 Engineering Punch list16.0 Post Construction Meeting

Closeout17.0 Engineering Closeout19.0 Lesson’s Learned Meeting20.0 Administrative Closeout

DEVELOPMENT1.1 Initial Scope Review Meeting1.2 Final Scope Review Meeting2.1 Schedule Review Meeting3.1 Initial Budget Review Meeting3.2 Final Budget Review Meeting4.1 Initial AFE Review Meeting4.2 Final AFE Review Meeting4.3 Portfolio Integration Review Meeting

IMPLEMENTATION

Design5.0 Programming Review Meeting5.1 Field Investigation Guidance Memorandum6.0 Concept Design Review Meeting7.0 40% Design Review Meeting

Example PMM


Governance matters! And good governance only comes through properly constructed Project, Program and Portfolio Management Plans (PxMP). These help to:

• Align Expectations

• Define Forums

• Provide a vehicle for supplementary info as Exhibits

Example PxMP


PROJECT DESCRIPTION Project Bud IDProject NameProject MangerEngineerWork Location(s)DESIGN PHASEProgramming Review MeetingConcept Review Meeting40% Design Review Meeting80% Design Review Meeting100% Design Review MeetingIssue For Construction Milestone DateCONSTRUCTION PHASEPre – Con Review MeetingMat. Avail Milestone DateRemovals Milestone Date50% Construction Milestone Date100% Construction Milestone DateRedline Review MeetingPunch List Milestone DateCLOSEOUT PHASEAs- Built Milestone DateLessons Learned Review MeetingAdmin. Close Milestone DateRequested Completion Date

Example PMM Showing Implementation Phase Milestones


Under PortfolioOS™ the PMO Maturity framework makes use of the same 5 levels as OPM3

Progressive sets of key Project Success Factors are associated with each level:

• Basic PMO

• Maturing PMO

• Optimizing PMO

BASIC MATURING OPTIMIZING

1 2 3 4 5

Defining the PMO Maturity ModelPROJECT SUCCESS FACTORS AND OPM3


The Basic PMO – Level 1

1. Competent Project Team

2. Project Mission and Common Goals

3. Planning and Controlling

The Maturing PMO – Level 2

4. Information and Communication


5. Adequate Resources

6. Monitoring Performance and Feedback


7. Project Understanding

8. Top Management Support

9. Authority of the PM/Leader

10. Client Involvement

11. Realistic Cost and Time Estimates

12. Risk Management

The Optimizing PMO– Level 5

13. Adequate Project Controls

14. Project Ownership

15. Problem Solving Abilities



The Basic PMO

• Can be grass roots or formally recognized

• Doesn’t rely on fancy software like Primavera, MS Project, SharePoint

• Focuses on implementing Project Success Factors 1 through 3


1 2 3 4 5

Define the PMO Maturity ModelTHE BASIC PMO – LEVEL 1


The Maturing PMO

• Must be formally recognized

• Leverages a successfully implemented Basic PMO

• Cautiously can use of software like SharePoint and MS Project

• Focuses on maturing Project Success Factors 4 through 12


1 2 3 4 5

Define the PMO Maturity ModelTHE MATURING PMO – LEVELS 2 THROUGH 4


The Optimizing PMO

• Must be formally recognized

• Is self-sustaining with Investments in the PMO justified

• Return on PM investments are globally recognized

• Leverages advanced software like Primavera and MS Project Server

• Focuses on maturing Project Success Factors 13 through 15


1 2 3 4 5

Define the PMO Maturity ModelTHE OPTIMIZING PMO – LEVEL 5


Key Project Success Factors associated with the Basic PMO:

1. Competent Project Team

2. Project Mission / Common Goals

3. Planning and Controlling


1 2 3 4 5

Todays Focus – The Basic PMO


• Agree on the Project Management Methodology that will be used to deliver the project

• Designate the Project Sponsor as the person who is responsible for the dollars allocated (typically a VP)

• Understand the Roles and Responsibilities for each Stakeholder on the project team

• Possess respect for the phase gates in the PMM chosen

• Understand the organizational structure of the project team

• Commitment to read and understand all project related communications

Project Success Factors1. COMPETENT PROJECT TEAM


• Project Scope, Schedule and Budget documented at a level sufficient for all Stakeholders to perform their job (The Goal)

• Clear alignment of the projects to company strategic initiative (The Mission)

• Both Mission and Goals of projects need to be clearly defined to enable management choice

Project Success Factors2. PROJECT MISSION/COMMON GOALS


• A documented Project Management Methodology (PMM) that appropriately documents the tasks, phase gates, roles, responsibilities, milestones, metrics and governance with change control, consisting of a written document and a flow chart.

• Project Management Work Book (PMW). It is the tool used to help the project lifecycle planning and controlling, enforcing the effective completion of each milestone on time in order to achieve project success.

Project Success Factors3. PLANNING AND CONTROLLING


Comparative Analysis of Agile vs Design and Construction


PROCESS GROUPS AGILE DESIGN AND CONSTRUCTION

Initiation Scrum Project Team Working Session / Breakout Session

Sprint Planning Project Development

Planning Iteration / Sprint Planning Weekly Work Plan

User Story Work Package

Story Elaboration Workforce Planning

Adaptive Planning Look-Ahead Planning

Iteration Progressive Design Elaboration / Major Milestones

Timeboxing Defined durations between Major Milestones

Stories Scope Statements

Executing Sprint Backlog Deliverables for Major Milestone / Pre-Meeting Checklists

Monitor and Control Burn-up/Down Charts Schedule of Values (CPI/SPI)

Sprint Review Design Review / Pre-Construction Review

Retrospective Weekly Review

Closing Customer Showcase Site Inspection


• Feedback drives cultural changes

• Project Health Screen (PHS)

– Enforces Vernacular

– Provides Early Warning

Project Goals

Technical Aspects

Teamwork

Client Relations

Planning

Sponsorship

Stakeholder Acceptance

Project Progress

Communication

Problem Solving

Project Performance

Example PHS


Project Health Screen (PHS)Quality Control and Assurance

Portfolio Monitoring Workbook (PMW)Reporting and Metrics

Project, Program and Portfolio Management Plans (PxMP)Planning and Governance

Project, Program and Portfolio Management Methodology (PMM)Process Flow, Checklists, Standard Operating Procedures, Vernacular and Phase Gates

Framework


Initial Assessment

• Assessed existing systems, artifacts, SOPs

Implemented PMM

• Glossary, Idea through Project-close Process Flow, Phase Gates Milestone Review Meeting, Checklists, Standard Operating Procedures, Vernacular

Implemented PjMP

• Standardized project scope, schedule and estimates

• Controlled procurement

Implemented PMW

• Tracked performance against major milestones

Implemented PHS

• Reported monthly portfolio progress

Case StudyA YEAR LONG STUDY OF AGILE APPLIED TO IT INFRASTRUCTURE DELIVERY


• What is the current vernacular?

• How does planning get done?

• What procedures are in place?

• How well are plans flowed?

• What degree of accountability exists?

• Who are the leaders and early adopters?

• How well integrated is engineering and construction?

• What artifacts can you leverage or recycle?

• Where are the organizational barriers because of the changes?

• Formal PMO vs grassroots implementation?

Questions to consider when Implementing the Basic PMO


Results and Lessons LearnedTHE GOOD, THE BAD, THE DOUBLE UGLY


The Good

• 14% increase in projects delivered

• 11% increase in total cost of work

The Bad

• Cultural resistance to change as consensus moved to SOP

• Adoption of the new vernacular was slower than expected

• Accountability of the project team

The Double Ugly

• Leadership buy-in to the Competent Project Team

• Until portfolio performance was tied to yearly reviews little progress was made

Results and Lessons Learned


Questions

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Copyright © 2015 R.P. Delio & Co. All rights reserved.


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