Dispelling the mystery around resource planning revc

Ken Delcol PMP, PEng

Project World Toronto 2012

1Project World 2012

Attendees will leave with an alternative approach for implementing resource planning in their organization.

◦ Identify key areas that need to be addressed when developing a resource plan

◦ Identify pitfalls to be avoided when developing a resource planning process

2Project World 2012

Learning Objectives

Introduction to Psion

Why resource planning is important

The Problem

The Journey◦ First Pass

◦ Second Pass

A new Way ◦ How do we plan?

◦ Setting up to do resource planning

Recommendations

Take Away

3Project World 2012

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4Project World 2012

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5Project World 2012

Psion is a leading global manufacturer of Rugged Handheld and Vehicle-Mounted Computers, with a rich history of mobile innovation

SUPPLY CHAIN &LOGISTICS

1980

Air, Ports & RailYards

Cold Chain

Warehouses &Distribution Centers

Including…

…And Many More!

BUSINESS & ENTERPRISE MOBILITY

199

8

Field Service &Asset Management

Courier & Postal

Retail & Direct StoreDelivery

Including…

…And Many More!

6Project World 2012

Profits and growth are driven by new products◦ The key is knowing when to commit to new projects

Standing Assumption

Psion is people constrained, not expense/capital constrained

◦ Resource Planning Requires

Identification of resource supply and demand issues well in advance

Clear, consistent, reliable

Cross-functional process for allocation of resources to projects

Single, reliable and well-understood

7Project World 2012

Executives were not confident they could start a new project because◦ No consistency in resource planning approach

Executives constantly changing the way they view the world

Project, project types, product, portfolio, program, etc

Functional managers with their own personal view towards resource planning

Fiscal planning rate and hours varied across departments

Inconsistent definition of what work needs to be planned vsnot planned

◦ Multitasking of resources across various projects with no

Visibility

Clarity on priorities

8Project World 2012

2007 and earlier◦ Solution Characteristics

Excel

Functional orientation

Challenges◦ No cross-functional coordination

Reinforced “functional silo’s”

No single fully integrated plan for a project

◦ Spreadsheet nightmare

Everyone else’s spreadsheet is wrong!

Project estimates ≠ Functional estimates No concept of supply and demand

People are allocated based on availability

Updating nightmare Done once a year

Does not support changing business needs

Time to run a what if scenario – 5 to 7 days

Painful to set up

IT to the rescue with MS Project Server ◦ Common resource database and project definition!!◦ Initial introduction of supply and demand

Challenges◦ Batch operation – cube build time◦ Updates take a long time Individual projects hold the information

◦ What if scenarios both for budgeting and resources still required Excel

◦ Product stability issues

◦ People are allocated based on availability rather than demand

10Project World 2012

Psion was no further ahead based on the first two attempts◦ General feeling was we did not have the right tool!

A new tool will solve everything!!!!

Sound familiar??

◦ A third attempt was to be made …

◦ However a decision was made to view the problem from a different perspective

Project World 2012 11

Split the solution to resource planning into three areas◦ Key Goal: simplicity in execution and

maintenance

Tool Selection

Touched on briefly in this presentation

Tool Configuration/Set Up

Tool and organization dependent

Topic of interest for this presentation

How are you going to use the tool

People and process dependent

Tool Independent

Topic of interest for this presentation

Project World 201212

Easy to solve

Most difficult to solve

Three solution areas◦ 1) Tool Selection

A common resource and project pool that is shared across all projects with live data

No files, no separation, no batch manipulation of data!

Its all about the tool’s features

This is where everyone spends their time and money

◦ 2) Tool Configuration/Set Up

How the organization fundamentally structures work and resources

A necessary evil of a tool

People want to minimize the time and the money spent here

This is for the IT gurus not for the real people doing work!

This attitude is what gets the organization into trouble.


Three solution areas (Continued)◦ 3) How are you going to use the tool

How the organization plans resources i.e. a common lexicon, level of detail, and approach

The tool can help to support once the process is understood.

Nobody wants to spend time here since its about getting agreements on how to do work!!

Project World 201214

Integrated Database Solution◦ P6 v7.8 has the capability with real time results

Major Concern◦ How do we use P6 without creating a monster!

Drive for simplicity1 and clarity of process and data

Psion does not have an army of planners!

◦ Psion company characteristics

Functional Managers like to be in control

Make things complex

Stress the uniqueness of their function over others


1 Einstein: “Everything should be made as simple as possible …

but no simpler.”

Started with how you fundamentally organize your projects when doing work and NOT how you want to analyze them ◦ Structure is repeated over and over across other

systems

◦ Core to the business

Allows for easier maintenance

For Psion work is organized by the product and then the projects

◦ How you analyze your projects will constantly evolve!

◦ Organizing structure in P6 is called the EPS node



Overview of EPS NodeNew Product

Development

Projects

Resource-Constrained

(non-development)

Projects

High-level multi-year

portfolio / project view

How do you want to analyze your projects?◦ Set project characteristics at the project level Project characteristics flow down to the resources and the tasks

Avoids specialized resource groups and task classifications

Slice and dice the projects for analysis Highly configurable

◦ P6 Solution are Project Codes Limited the number – total 9

Focused on the key ways the business is analyzed

Code headings include Project Status Product Type that the project is associated with Project Type Project Complexity Business Line Estimate Accuracy Project Scope Time Collection Enable Flag


Resource Structure◦ Goal: create a common structure for all functional

groups

◦ Roles

Starting with job titles and pay bands

Psion had 96 roles for 191 people

Reduced to 14 roles across Engineering, Operations and Marketing

Five core roles of – Manger, Specialist, Functional Lead, Management, Generic

Introduce generic planning role

Used for medium- and long- term planning


Functional Generic

Resource Specific

Functional Grp ABC

Frank

Specialist– FG. ABC

Bob

Karen

Deb

Group Lead – FG.ABC

Sue

Joe

Manager – FG.ABC

Functional-Role Generic

Resource Structure◦ Goal: create a common structure for all functional

groups

Identify resource characteristics that are used to analyze/group people independent of project and functional group e.g. locations, company, etc

Highly configurable

◦ P6 Solution - Resource Codes

Used in place of roles

Reduces the number of roles by avoiding specialized groups

Allows for classifications to be introduced

Provides cross-functional group analysis



Overview of Resource Role + Codes

Role

(Primary)Resource Codes

Provide standard views and reports to promote consistency◦ Overview Overload and under-load reports

◦ Assignment Functional

Person, Project

Project, Person

Project

Function, Person

◦ Key Message Everybody uses the same views and reports for resource

allocations, over/under loading

PMO creates custom reports on as needed basis






Calendars◦ Global vs Project vs Resource

Provide a board suite of global calendars

Avoid project and resource specific calendars

Too much maintenance work

Time◦ Need to understand the number of hours in a year,

week, month and its impact when calculating FTEs

Project Settings◦ Agree on how progress is tracked when using

resources




Goal◦ Define resource demand at the appropriate levels of

detail through the life-cycle of a project◦ Describe resources in the supply pool to enable

matching of supply to demand most effectively

Approach◦ Develop a rolling wave planning philosophy for

resources - labour, expense and capital◦ Foster collaborative planning – force the

discussions

Clear communication of demand/supply requirements and status



+3 mths > 24 mths

Planning Horizon+15+12+9+6Today

Acti

ve

Pro

jects

Pla

nned

Pro

jects

Bud

geta

ry

Pro

jects

+18 +21

Legend

Resource Specific

Functional Generic

Function-Role Generic + Resource Specific

Budgetary Projects:

Projects are included in PDV budgetary plans – not yet approved to proceed

Resource demand estimated to Functional Generic level

Planned Projects:

Projects are approved to proceed but have not yet started

Resource demand estimated to Functional-Role Generic level, and, selectively to the Resource Specific level

Active Projects:

Projects are in progress

Short-term (0-3 mths) Resource demand is expressed as Resource Specific

Longer-term (>3 mths) Resource demand is planned at Functional-Role Generic level, and, selectively at the Resource Specific level

Planning HorizonNovember

Dec Jan FebWeek-1 Week-4Week-3Week-2

Step 1: Project Managers …

review and confirm resource demand

for Planning Horizon;

identify supply issues in Planning Horizon

Step 2: Functional Managers …

review and confirm resources planned for all Projects in Planning Horizon;

Step 3: PMO …

identifies Resource Management planning issues during Planning

Horizon:

Generic resources not assigned;

Specific resources over-assigned.

communicates these issues to PM’s and FM’s

Step 4: PMO …

convenes meeting to resolve Resource Management planning issues identified in Step 3.

Step 5: PMO …

transfer timesheet actuals into planning and scheduling tool

What about non-development project work?

◦ Solution

Level of Effort and/or Constrained project

Overhead

R&D – floating time lines

Sustaining – capped with designated specific resources

Few people are actually allocated to the projects

Anyone can charge to the project for unplanned work

How do you show long term demand??

◦ Generic Resource

What about unplanned work in a project?

◦ Activity to capture the hours between time reports

Adjust schedules once identified



Resource Assignment view – by Person and Project


High-level Resource Demand vs. Supply view

Department shows planned

available capacity

Department shows planned

over-allocation of resources


High-level Resource Supply – Graphical View (1)





Need to take your time and think about◦ How resources are planned and tracked Independent of your tool

◦ How the organization is fundamentally organized to do project work Then look at how projects are analyzed

◦ How resources are structured ◦ How subtleties are going to be dealt with Need a consistent and simple approach when dealing

with exceptions

◦ Selecting a tool that gives access to live data NO batch operations

◦ Always keeping it simple


Attendees will leave with an alternative approach for implementing resource planning in their organization.

◦ Identify key areas that need to be addressed when developing a resource plan

◦ Identify pitfalls to be avoided when developing a resource planning process


This presentation has focused at dispelling the misguided belief in a be-all-and-end-all technical solution. ◦ Rather you were provided an alterative approach

that is based on:

Balancing human processes/behaviours vs. tool-based capabilities, and

Built on a foundation of simplicity and clarity.
