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ME2018 Leading temporary organizations and projects
Course introduction
Who am I?
• Johann Packendorff• Associate professor of project management
and operations management at KTH since 2001
• Member of the Swedish Project Academy• Research on project management,
entrepreneurship and leadership
Operations Management – Basic Principles
All types of enterprise have an operations function, even if it isn’t called ‘operations.
Most operations produce both products and services.
Materials
Products and services
Information
Customers
Operations management is concerned with producing and
delivering products and services
That is:
Operations are – if organized in the right fashion – a source of competitiveness and survival for the firm!
The strategic role of operations can be defined by its aspirations (Hayes and Wheelwright)
Give an Operations Advantage
Externally supportive
Internally supportive
Externally neutral
Internally neutral
The ability
to Implement
Link Strategy With
Operations
Adopt best Practice
Correct the Worst
Problems
Increasing contri
bution of o
peratio
ns
STAGE 1 STAGE 2 STAGE 3 STAGE 4The
ability to
Drive strategy
Stop holding the
organization back
Be as good as
competitors
Be clearly the best
in the industry
Redefine the industry’s
expectations
The abilityto
support Strategy
An operation contributes to business strategy by achieving five "Performance
Objectives"
CHANGING what you do a FLEXIBILITY advantageGives
Doing things CHEAPLY a COST advantageGives
Doing things ON TIME a DEPENDABILITY advantageGives
Doing things FAST a SPEED advantageGives
Doing things RIGHT a QUALITY advantageGives
VolumeLow High VolumeLow High
Var
iety
Lo
wH
igh
Var
iety
Lo
wH
igh
Project
Jobbing
Batch
Mass
Contin--uous
Professional service
Service shop
Mass service
Service process types
Manufacturing process types
Development trends
Management Management Management
Line-basedoperations
Projects
Line-basedoperations
Project-basedoperations
Line-basedoperations
IndustrializedProject operations
Projects
1980 2000 ?
Towards project portfolio management
200019801960194019201900
Mass manufacturing
Project management
MTMToyota sy
stem
TQM Lean
manufacturin
g
Scientifi
c
management
Gantt
schedules
MBO Network
planning
Matrix
organizatio
ns
Critical
chain PMBOK
Certific
ations
Project portfolio managementOPM3
PM as co
re co
mpetence
Lean en
g.
Stage-g
ate m
odels
Risk m
anagement
PM offi
ces
Project dependence in Swedish industry
• Project-based exports (Svensson, 1996)– The total of project-based operations amounted to 193
billion SEK, about 50% of total Swedish exports
• R&D intensity(SCB, 2002)– Amounts to 5% of GNP, but in some firms about 20-30%
of total sales (development projects)
• The character of fast-growing industry segments (SCB, 2002)– IT, drugs, consultancy
• Big-firm depencence (ISA, 1999)– A large share of our most important multinationals are
project-based firms (e.g. Ericsson, ABB and Skanska)
Types of projects• Delivery projects
• Development projects
• Change projects
Jonas Söderlund
Delivery projects Development projects Change projects
Aim Deliver and implement complex solutions/systems to customers and/or end users.
Develop new technologies, products or services for manufacturing and/or sale to mass market or for use in the firm’s delivery projects.
Change organizational routines in order to improve everyday performance and/or improve the firm’s delivery or development projects.
Guiding parameter
Contracts Technology Organization
Competence problem
Integration of knowledge between customer and provider.
Integration of knowledge between different technical disciplines and organizational parts.
Change of competence structure and integration of organizational knowledge.
Managerial focus
Customer dialogue, customer interaction, negotiation.
Specifications, technical solutions, integration of technical solutions.
Change resistance, internal marketing, managerial hierarchies.
Success criteria
ProfitabilityCustomer satisfaction
ProfitabilityRisk spreadStrategic marketing considerations
Realized improvement potentialManagement/sponsor satisfaction
Project management as a core competence
• ABB– Project Support, World Class Training
• Ericsson– Project Office, EPMI, PROPS
• AstraZeneca– PMSO, Global Project Directors/Managers
• Tetra Pak– Core Values
• Volvo PV– Project Director, Project Management
”The ability to successfully carry out projects.”
Project-level improvement:THE “STAGE-GATE” PROCESS IN R&D
What is the “Stage-Gate” Process?
Increasin
g Demands o
n Reso
urces
Increasin
g Level o
f Scru
tiny
“Ideation”
PreliminaryAnalysis
Build a Business
Case
“Go/Kill”?
Development
“Go/Kill”?
“Go/Kill”?
“Go/Kill”?
Testing
Launch
Stage
Gate
The basic idea is that each “stage” has a set of
deliverables. If these are not produced (or if the
findings are not favorable), the project gets killed at the
following “gate”.
Legend:
Company-level improvement: OPM3
Remaining problem
• Focus on certification- Individual (PMP, IPMA levels)- Organizational (OPM3)
• Focus on procedures developed from traditional project management thinking
• Neglecting inspiration from the dominating Operations Management movement: Lean Manufacturing!
• Neglecting inspiration from current organizational research
• Calls for a philosophical re-orientation, not only more rules, procedures and standardisation
…therefore, a course…
Course goals
The aim of the course is to develop advanced in-depth knowledge on leading different forms of temporary organizations, departing from several contemporary perspectives in operations management and project management research.
Learning outcomes
The student shall be able to:• Describe the connections, similarities and differences
between project management and general operations management.
• Describe, analyse and solve managerial problems in different forms of dispersed and/or network-based projects
• Use bibliographical databases for continuous learning and development within the fields of project management and operations management.
• Apply contemporary research perspectives for the practical solving of managerial problems in project-based operations.
ME2018
• Lectures• Individual task (IJPM)• Group (2-5 pers) tasks – five thematical
reports• Seminar series – plenary discussion
seminars• Tentamen
Reviewing a project management research article
– individual term paper task Term paper 1: Each student shall indiviually select an article from a
leading project management journal and write a paper of maximum 10 pages.
The first half of the report is a summary of the article, whereafter the second half is spent analysing and criticizing its assumptions, contents and conclusions. The analysis and critique should make use of the course literature and own experiences. IJPM is electronically available as an E-journal through the KTH library, www.lib.kth.se. Preferably, issues from 1995 onwards should be used. The report is submitted in paper format – including a printout of the article – no later than April 15th, 2011.
Five themes
1. Lean project management
2. Project management across borders
3. Leadership in projects
4. Innovative and entrepreneurial projects
5. Critical project studies
For each theme
• Introductory lecture, ended by a set of discussion questions
• Set of articles published at the course homepage or handed out in paper format
• Hand-in of group report, containing (1) literature review, (2) group’s opinions/answers to discussion questions
• Plenary discussion seminar, all groups expected to be able to make short presentations and participate actively
Course literature
• ”Virtual” list of readings updated regularly at course homepage
• Own literature searches
Exams
ME2018: Tentamen (50%), group reports (25%), article review (25%)