9_npdmanagement.pdf

POLITECNICO DI TORINODipartimento di Sistemi di Produzione ed Economia dell’Azienda

Ing. Francesca Montagna

Innovation ManagementInnovation Project Management

[email protected]

Ing. Francesca Montagna

Innovation ManagementInnovation Project Management

[email protected]


Project ManagementLexical Ambiguity (“project“ vs “design“)

Hierarchical - “Organization of a complex activity that is hierarchically structured“

By exclusion

Constructive – Structured organization of a complex activity on which impact general and particular objectives, time, costs, “parent organizations”, ”stakeholders“ e resources

Routine ProgrammeProject

Complexity

Routine

Novelty

Routine RelevanceDimensionsExceptionality

Project Management has different application domains (Construction works,Development process, System innovation - production, informative, managerial, research projects, design in public sectors)


Project management requires the use of formal andspecific techniques in order to mange:

• High number of activity, resources and people involved• Objectives are often conflicting (results, time, cost)• Relationships with “parent organizations“ and “stakeholders”• Interaction with technical, organizational, economic and social aspects

There is no routine supporting management

Project Management


Start:• Evaluation and selection•Staffing•Feasibility analysis

ImplementationProgramming•Budgeting• Scheduling• Resource allocation• Project information systems End:

• Evaluation andAuditing•Maintenance

t

$/t

Planning:• Requirement definition• Design

Business caseProject charterGoal oriented Project Planning (GOPP, part of the Logical Framework Approach)SWOT Analysis

Hierarchical lists (textual or graphical representations)-WBS, OBS, RBSProcedural diagrams (flow charts) PDM (precedence)Cost/Quality plan

Execution• Project information systems• Project control

GANTT DiagramsAOA, AON methodsPERT (time/costs)CPM (costs)PDM (precedence)GERTCCMDSM

Execution monitoring (WBS, OBS)Time monitoring (GANTT, CPM, PERT)Cost monitoring (CBS, S curves)Control (S curves, Reporting, budget value and Actual cost analysis, Earned Value Analysis Performance

Project lifecycle


Project planning and budgetingGeneral rules:• Keep a common degree of generality at each hierarchical level• Distinguish activities and results

Methods:Hierarchical lists (textual or graphical representations)-WBS, OBSProcedural diagrams (flow charts)Cost/Quality plan

ID WBSNome attività Descrizion Durat Predecesso Nomi risors1 1 Programmare gita 5.5g2 1.1 Individuare partecipanti 0.5 Guida;A3 1.2 Preparare alternative 1g 2 Guid4 1.3 Convocare partecipanti 0.5 3 Seg5 1.4 Riunire partecipanti / deli 0.5 4FI+3 Guida;A6 2 Prepararsi alla partenza 7g7 2.1 Decidere itinerario dettag 1.5 5 Guid8 2.2 Individuare attrezz. comu 0.5 7 Guid9 2.3 Reperire attrezzature com 2g 8 Guida;A10 2.4 Reperire iscrizioni 5g 7;8 Seg11 3 Effetuare la gita 2.5g12 3.1 Verificare attrezzature ind 0.5 10 Guid13 3.2 Effettuare gita 2g 12 Guida;A14 4 Eseguire operazioni conclu 7.5g15 4.1 Controllare attrezzature c 0.5 13 Guida;A16 4.2 Sviluppare foto 3g 13 Alb17 4.3 Convocare partecipanti 0.5 13FI+ Seg18 4.4 Riunire participanti 0.5 16;17FI+ Guida;A19 4.5 Inviare foto 0.5 18 Seg

ID WBSNome attività Descrizion Durat Predecesso Nomi risors1 1 Programmare gita 5.5g2 1.1 Individuare partecipanti 0.5 Guida;A3 1.2 Preparare alternative 1g 2 Guid4 1.3 Convocare partecipanti 0.5 3 Seg5 1.4 Riunire partecipanti / deli 0.5 4FI+3 Guida;A6 2 Prepararsi alla partenza 7g7 2.1 Decidere itinerario dettag 1.5 5 Guid8 2.2 Individuare attrezz. comu 0.5 7 Guid9 2.3 Reperire attrezzature com 2g 8 Guida;A10 2.4 Reperire iscrizioni 5g 7;8 Seg11 3 Effetuare la gita 2.5g12 3.1 Verificare attrezzature ind 0.5 10 Guid13 3.2 Effettuare gita 2g 12 Guida;A14 4 Eseguire operazioni conclu 7.5g15 4.1 Controllare attrezzature c 0.5 13 Guida;A16 4.2 Sviluppare foto 3g 13 Alb17 4.3 Convocare partecipanti 0.5 13FI+ Seg18 4.4 Riunire participanti 0.5 16;17FI+ Guida;A19 4.5 Inviare foto 0.5 18 Seg

O rg a nizza re g ita d i

fe rra g o s toA 0

G uid a A lb e rg a to re

C o no s c e nzaluo g hi

C o no s c e nzac lie nti

P o te nzia lip a rte c ip a nti P a rte c ip a nti

s o d d is fa tti

R ic o rd i, fo to

M1Guid a

M2Albe rga to re

C1Conoscenzaluo ghi C2

Conosce nzaclie nti

I1

Po te nzia lipa rtecipa nti

O1

R ico rd i, fo to

O2Parte cip antiso dd isfa tti

Pro g ramma re g ita

A1

Prep a ra re p a rtenza

A2

Effe tua re g ita

A3

Ese guire op e ra zio ni co nclusive

A4

Inte re ssa ti

D e stina zio ne

Itine ra rio d e ttag lia toIstruzioni, e lenco ma te ria le

Ma te ria le comune

Partecip anti

R ullini

Pa rte cipa nti


Project planning and budgetingGeneral rules:After the project has been structured:• define precedence relationships•who is going to do tasks

Methods:PDMOBS, RBS

FunctionTask

Dir. Tech. Dir. Prod. Dir. Comm.

Dir. Fin.

T1

T2

T3 X men/month

T4


To summarize, per each task/activity, are needed:resources (people, machinery, money)responsibilitytime required Interfacesprecedence relatioinshipsdeliverables (precisely) conditions for activation

Interfaces are particularly critical:• Future results depend on the “certainty” of the results achieved• Results (milestones, or partial deliverables) have to be assessed through self‐made evaluation, management review, peer review, customer review• Interfaces are a “change of ownership”. It is likely to see uncertainty and/or opportunistic behavior arising

Interfaces

Project planning and budgeting


• Budgeting leads to allocating financial resources and/or effort to the project

•Critical because:‐ You can’t always rely on

experience‐ Accounting rules adopted by

firms are sometimes questionable

• Budgeting can be top‐down or bottom‐up

Top‐down budgeting Bottom‐up budgeting

Each manager gets a budget from above andsplits it among his reports

Managers receives estimates from below andaggregates them

The top‐down approach follows the processfollowed for planning

Top‐down allocations‐ Generate competition‐ Tend to be quite stable‐ Can be adjusted during the project

Top‐down allocations ‐ Lends itself to “budget padding”‐ Can lead to greater cooperation and involvement, if appropriately managed‐ Tend to be “unstable” and lead to local optimization

Project planning and budgeting


Cost estimating• Empirical, experience‐based formulae• Systematic cost data gathering ‐ Requires an adequate set of forms‐Should lead to estimate a number of values (min, max, most likely)• Learning curves

• Risk factors• Indirect cost

Project budgeting

POLITECNICO DI TORINODipartimento di Sistemi di Produzione ed Economia dell’Azienda 10

Given the initial plan (Activity list, Precedence constraints, Durations) scheduling consists in assigning start and end dates to each activity:• Without taking resources into account (infinite capacity scheduling)• Considering available resources (finite capacity scheduling)

Commonly used techniquesCPM (Critical Path Technique)‐ Deterministic times‐ Also useful for financial management of the projectPERT (Program Evaluation and Review Technique)‐ Probabilistic times‐ Strictly oriented to time management

Project planning


Project scheduling ‐terminology–Activity–Event–Network representations•AOA (activity on arc), not very intuitive, highlights events•AON (activity on node), more intuitive, “hides” events–Paths–Critical path/ critical activities


Scheduling: AON (activity on node)

a

g

h

e

f

d

c

b

j

i

Activities Predecessors

a -b -c -d ae b, cf b, cg b, ch cj g, hi d, e


• Not very intuitive, highlights events•“dummy” activities

Scheduling: AOA (activity on arc)

ab

c

e

f

g

i

h j

Activities Predecessorsa -b -c -d ae b, cf b, cg b, ch cj g, hi d, e

d


Compute, from start to end:EOT (Earliest Occurrence Time) for each eventfor each activity:EST (Earliest Starting Time)EET (Earliest Ending Time)EST‐EET=durationReally: EST=largest EET of the predecessors, the largest EET represents the duration of the process

Now compute from the end to start:LET (Latest Ending Time) LST (Latest Starting Time) Really: LET=smallest LST of the successorsSlack = LST – EST … You find the critical path and you

highlight it

Scheduling: CPM


Scheduling: CPM

ab

c

d

e

f

g

i

hj

ab

c

d

e

f

g

i

hj

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

Activity Predec. Duration

EST EFT LFT LST Slack

a - 2 0 2 9 7 7 b - 4 0 4 6 2 2 c - 3 0 3 3 0 0 d a 2 2 4 11 9 7 e b, c 5 4 9 11 6 2 f b, c 1 4 5 13 12 8 g b, c 2 4 6 8 6 2 h c 5 3 8 8 3 0 j g, h 5 8 13 13 8 0 i d, e 2 9 11 13 11 2


ID WBS1 1

2 1.1

3 1.2

4 1.3

5 1.4

6 2

7 2.1

8 2.2

9 2.3

10 2.4

11 3

12 3.1

13 3.2

14 4

15 4.1

16 4.2

17 4.3

18 4.4

19 4.5

20 4.6

Guida;Alb.

Guida;Alb.

Segr.[0.5]

D M G S L M V D M G S L M V D M31 lug 95 07 ago 95 14 ago 95 21 ago 95 28

ID WBS1 1

2 1.1

3 1.2

4 1.3

5 1.4

6 2

7 2.1

8 2.2

9 2.3

10 2.4

11 3

12 3.1

13 3.2

14 4

15 4.1

16 4.2

17 4.3

18 4.4

19 4.5

20 4.6

Guida;Alb.

Guida;Alb.

Segr.[0.5]

D M G S L M V D M G S L M V D M31 lug 95 07 ago 95 14 ago 95 21 ago 95 28

Scheduling: Gantt charts


Scheduling: PERTPERT uses three estimates for activity duration• a optimistic duration• b pessimistic duration• m most likely duration

The β distribution is used to model activity duration

• Expected time TE• Variance

TEa m b

4

6

Var b a

6

2


In order to work on project duration, operate on the critical path, considering activities independent

If you assign a completion due date S, the probability α of completing the project within S is:

V a r V a r V a rp r o g C P ii C P

Scheduling: PERT


Scheduling

Often the project duration has to be shortened by working on critical path:

To accelerate project completion you can:

Change project structure ‐ work on critical activities and eliminate where possible, alter precedence constraints, parallelize


C

TT crash T normale

C crash

C normale

• Work on cost-duration of critical activities (crashing):Each activity is defined by two time-cost pairs (Normal time and cost, crashed time and cost)

Crashing consists in accelerating critical activities one at a time, until project duration is acceptableThe most widely criteria used to choice the activity to “crash” is the “Cost Change per Time Unit” :

crashtimenormaltimetnormaltcrashUTCC

coscos/

Activity crashing


Start

Calcola CP, T e C

T è OK?

Calcola CC/UTper ogni attività critica

Accelera delle unità di tempol’attività con CC/UT minore

Stop

Algoritmodi crashing

Activity crashing


Activity Predec. Duration

Cost Duration (crashing)

Cost (crashing)

CC/UT

a - 2 10 1 12 2 b - 4 18 3 22 4 c - 3 16 - - - d a 2 12 1 17 5 e b, c 5 15 3 21 3 f b, c 1 6 - - - g b, c 2 8 1 10 2 h c 5 20 4 24 4 i g, h 5 25 3 28 1.5 j d, e 2 12 1 15 3

Apply the algorithm

And make theTrade‐off curve

Activity crashing


Resource allocationPer each resource, determine the loading diagram (especially for potentially critical resources):• Degree with which each activity uses the resource (FTEs)• Duration of activity• Number of available resources

You usually find a tradeoff between• Internal resources to be full‐time allocated to the project (less costly, might lead to inefficiencies)• Internal resources to dedicated when needed• External resources (more costly)


It can be performed:• By hand, for simple projects• Using heuristics and priority rules, for complex projects

1 Choose a priority rule (ROT, ACTIM, ACTRES, TIMRES, GENRES, TMROS TG2, ....)2 Simulate the project3 When activities are competing for resources use the priority rule to decide which one wins

• Optimization models (?)

Resource allocation


4.44.4,9.1,35.4max54

26

53,

54

21

53,

43

26

53max)(

over time) (Resources ROT

AROT

525,525,425max)(time)(Activity ACTIM

AACTIM

542653,542153,432653max)(resources)(Activity ACTRES

AACTRES

.)(1)()(

)()(

eccAACTRESAACTIMAGENRES

AACTRESAACTIMATIMRES

Resource allocation


Activites Predecessors Duration Resources ACTIM ACTRES ROTa - 2 3b - 4 4c - 3 2d a 2 1e b, c 5 3f b, c 1 4g b, c 2 2h c 5 5i g, h 5 3j d, e 2 4 a (2,3)

b (4,4)

c (3,2)

d (2,1)

e (5,3)

f (1,4)

g (2,2)

i (5,3)

h (5,5)j (2,4)

Determine the loading diagram for aninfinite‐resource schedule. How manyresources would you need? Whatwould the efficiency be in case of full‐timeAllocation (FTE)?

Resource allocation


• Multi‐resource problems are tackled by using resource first heuristics (start scheduling from the most critical resource) • Multi‐project problems are tackled with heuristics – Assign absolute priority to projects (schedule the project with highest priority, then the second, etc.) – Assign relative priority to projects (iority of each activity depends on “internal” and “project” priorities). The program is scheduled as a single project – Pre‐assign resources to projects

10987654321

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

10987654321

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

10987654321

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Resource allocation


Activity sequence

Parallel activities

Coupled activities

Scheduling: activity relationship


A B C D E F G H I J K

A A

B X B

C X X C

D X D

E X X X E

F X X X F

G X X X X G X X

H X X X X H X

I X X I

J X X X J X

K X X K

The DSM approach


Design Structure Matrix DSMs are managed in two steps:

1. Identify circuits• Direct inspection• Path searching• Algebraic: either by Simplification (iteratively eliminate activities without predecessors or successors) or by computing the powers of the matrix(it represents just circuits)

A

C

DB

GE

F

A B C D E F GA 0 0 0 0 0 0 0B 1 0 1 0 0 0 0C 0 1 0 1 0 0 0D 0 1 0 0 1 0 0E 1 0 0 0 0 0 0F 0 0 0 0 1 0 1G 0 0 0 1 0 1 0

A B C D E F GA 0 0 0 0 0 0 0B 1 0 1 0 0 0 0C 0 1 0 1 0 0 0

A = D 0 1 0 0 1 0 0E 1 0 0 0 0 0 0F 0 0 0 0 1 0 1G 0 0 0 1 0 1 0

B C D F G B C D F G B C D F GB 0 1 0 0 0 B 0 1 0 0 0 B 1 0 1 0 0C 1 0 1 0 0 C 1 0 1 0 0 C 1 1 0 0 0

A * A = D 1 0 0 0 0 X D 1 0 0 0 0 = D 0 1 0 0 0F 0 0 0 0 1 F 0 0 0 0 1 F 0 0 1 1 0G 0 0 1 1 0 G 0 0 1 1 0 G 1 0 0 0 1

B C D F G B C D F G B C D F GB 1 0 1 0 0 B 0 1 0 0 0 B 1 1 0 0 0C 1 1 0 0 0 C 1 0 1 0 0 C 1 1 1 0 0

A * A * A = D 0 1 0 0 0 X D 1 0 0 0 0 = D 1 0 1 0 0F 0 0 1 1 0 F 0 0 0 0 1 F 1 0 0 0 0G 1 0 0 0 1 G 0 0 1 1 0 G 0 1 1 1 0




A A

B X B

C X X C

D X D

E X X X E

F X X X F

G X X X X G X X

H X X X X H X

I X X I

J X X X J

K X X X K


A A

B X B

C X X C

D X D

E X X X E

F X X X F

G X X X X G X X

H X X X X H X

I X X I

J X X X J

K X X X K


A A

B X B

C X X C

D X D

E X X X E

F X X X F

G X X X X G X X

H X X X X H X

I X X I

J X X X J

K X X X K

Activity DSM: project plan thathighlights blocks of coupled activities andhigh‐level iterations

Resource DSM: natural groupings ofresources and project organization

Component DSM: definition of productarchitecture with chunks (ormodules) thatare functionally independent

Design Structure Matrix


2. Manage circuits By cutting and transform them in a number of iterations

A

C

DB

GE

F

2 precedecessors1 successor (‐1)1 precedecessor

2 successor (+1)

A

C1

D1B1G1

E F1

C2

D2B2

F2

G2

Design Structure Matrix

1 precedecessor1 successor (0)

One should cut the arcs that minimize the disruption to the activities that – because of the same cut – are forced to start without the benefit of having all the information they would need under hand. One should therefore be able to measure the amount and relevance of information in each arc and start cutting the ones that score more on this measure.


Or by substituting them with macro‐activities

A

C

DB

GE

F

A BCD

EFG

Design Structure Matrix Concurrent

Engineering!!!


The signposting algorithm


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9_npdmanagement.pdf