Project Management Cookbook Part 1 (ARA) Feb16

Project Mgt - Part 1

ARA (Feb’16)- © 2016 - 1

ARA TRAINING

ARA TRAINING

PDCA Project ManagementCookbookA.R. Alvarez


ARA (Feb’16)- © 2016 - 2

ARA TRAINING Preamble Objective:

Provide a Practical and Straightforward Approach to Project Mgt Emphasis on New Product Development; But Methodology Covered Can Be Applied to Pretty Much Any Type of Project

Included: Best Practices in Scheduling, Resourcing, Uncertainty & Risk Mgt with Special Emphasis on Resolving Schedule Conflicts Introduction to Problem Solving (Separate Workshop Available) Phase Gate Architecture Incorporation of Agile/Scrum Concepts In General Project Mgt Review Meeting Templates

Excluded: New Product Portfolio Management (Separate Workshop) Detailed Project Phase Gate Meeting Templates


ARA (Feb’16)- © 2016 - 3

ARA TRAINING Project Management Outline Part 1: Project Management Set-Up(Plan)

Project Management Principles Goals & Objectives Risk Management High Level Scheduling Concepts The Market Window- Development Team Capability Conundrum

Part 2: Project Management Execution (Do) Detailed Project Scheduling & Schedule Uncertainty Project Team Meetings Project Management Toolkit

Part 3: Project Management Oversight (Check & Act) Project Phase Gate Reviews Project Management Reviews Project Feedback & Response Appendix


ARA (Feb’16)- © 2016 - 4

ARA TRAININGDeming’s PDCA Quality CyclePlan

Do

Check

Act


ARA (Feb’16)- © 2016 - 5

ARA TRAINING PDCA Project ManagementPlan

(Set Goals, Resources & High Level Schedule)

Do(Detailed Schedule, Daily /Weekly Checks & Pull-in)

Check(Mgt & Milestone Reviews)

Act(Adjust Resources, Goals, & Schedule)


ARA (Feb’16)- © 2016 - 6

ARA TRAINING Project ManagementComplicated

Multi-DimensionalNon-Deterministic

MessyCritical

What Does This Mean?If You Just Plan to Make Schedule You Will Always Miss Your Schedule


ARA (Feb’16)- © 2016 - 7

ARA TRAINING Opposing ForcesMarket TimingEntitlement (Mgt)Scheduling ToolsBuy “A Day”Scrubbing

If You Just Plan to Make Schedule . . .You Will Always Miss

ComplexityRework

Non-Determinism

Requirements Gap

Feature Creep


ARA (Feb’16)- © 2016 - 8

ARA TRAINING Not An Easy Climb


ARA (Feb’16)- © 2016 - 9

ARA TRAINING What You Need to KnowYou Need to Know Where You’re Going

You Need to Know Where You AreYou Need to Know if You’re Off Track

How Hard is This to Do?With a Team ?By Yourself?


ARA (Feb’16)- © 2016 - 10

ARA TRAINING What You Need to DoStart With The End in Mind:Define Success Criteria / Vital Signs

(If Project is Long, > 30 Days, …)Develop a Roadmap:Breakdown Success Criteria into GatesTrack The Path:Develop Leading Indicators for Critical Steps & Tasks


ARA (Feb’16)- © 2016 - 11

ARA TRAINING Manifesto For AgileSoftware DevelopmentIndividuals and Interactions OverProcesses and Tools

Working Software OverComprehensive DocumentationCustomer Collaboration OverContract NegotiationResponding to Change OverFollowing a Plan

http://www.agilemanifesto.org/


ARA (Feb’16)- © 2016 - 12

ARA TRAINING Manifesto For AgileSoftware DevelopmentIndividuals and Interactions OverProcesses and Tools

Working Software OverComprehensive DocumentationCustomer Collaboration OverContract NegotiationResponding to Change OverFollowing a Plan

http://www.agilemanifesto.org/

ProjectMgt‘Product’

To APoint

To APoint


ARA (Feb’16)- © 2016 - 13

ARA TRAINING

WhatWe

WantTo

Achieve

HowWe

IntendTo

Achieve It

HowWe

WorkTo

Achieve It

“Customer”Inputs ProjectPlan ProjectExecution


ARA (Feb’16)- © 2016 - 14

ARA TRAINING PDCA Project Management

1 After 1st Cycle Replace “Set” With “Adjust”

Plan(Set1 Goals, Resources & High Level Schedule)


Act(Adjust Resources, Goals, & Schedule) Do(Detailed Schedule, Daily /Weekly Checks & Pull-in)


ARA (Feb’16)- © 2016 - 15

ARA TRAINING

ARA TRAINING

Project Goals


ARA (Feb’16)- © 2016 - 16

ARA TRAINING Project Goals Clear Objectives

Objective (Technical) Spec / OTS Customer Value Proposition(s) Cost Target Timeframe (i.e. Market or Funding Window, …)

Unambiguous Deliverables / Expectations Project Vital Signs (Keep it Simple)

Design, Product & Test Engineering Algorithms, Software / Firmware System Design Applications Technology and Operations Quality & Reliability

Project Checklists Checklists at Major Milestones Can Insure Completeness of Deliverables Each Phase Should Have It’s Own Checklist Checklists Can Also Provide Method to Capture Learning

Goals /ObjectivesEvents:Vital Signs

Activities:Checklists

Milestones


ARA (Feb’16)- © 2016 - 17

ARA TRAINING Clear Objectives Clear Objectives Lead to Correct Priorities

Performance Gap Temporal Effects

Time in Existence Time To Solve

Impact Proper Problem Definition Supports Clear Objectives

Is it a Problem? (Check with Boss) Scope Dollarize It Priority Define Desired Outcome (Deliverable) Time Frame . . .


ARA (Feb’16)- © 2016 - 18

ARA TRAINING Objective Specs = Lighthouse

There Will Be Storms ……… You Need a Lighthouse


ARA (Feb’16)- © 2016 - 19

ARA TRAINING MRD* ExampleCriteria / Feature

Mandatory(Must Have)

DifferentiatingTarget

BreakthroughTarget Comments

* Market Requirements Document; Typically Used in Context of New Product Development; Can Be Adapted to Generic Prj

MRD Reflects Market Requirements For Targeted: Problem Being Solved Timeframe Market Segment or Functional Area (As Appropriate) Customer Demographics (If Appropriate) Prioritization: Must Have, “Nice to Have”, Will Not Have Obviously Not All Criteria / Feature Will Have Differentiating Targets, Very Few Will Probably Have Breakthrough Targets


ARA (Feb’16)- © 2016 - 20

ARA TRAINING OTS* Example

* Objective Technical Spec; Applicable In Almost All Project Mgt Contexts; Always in New Product Development

OTS Typically Reflects Agreed Plan of Record Response to MRD When Project Focus is New Product Development an MRD is Almost Always Created First OTS Reflects Tradeoffs & Constraints: TTM, Cost, … Maintains Prioritization: Must vs. Nice to Have vs. Will Not Have & Timeline OTS Contains Significantly More Detail Than MRD; i.e. One MRD Feature Often Breaks Down to Multiple Engineering Specs/Criteria Good Practice to Retain Original MRD to Document Original Request vs. Final Agreement

Criteria / Feature

Mandatory(Must Have)

DifferentiatingTarget

BreakthroughTarget

Engineering Response

Agreed to Target (Spec)


ARA (Feb’16)- © 2016 - 21

ARA TRAINING Project Vital Signs(Chip Design Example)Parameter Unit Spec /

MP TargetSampleTarget

Sample Actual

MP Actual

Current Actual Comment

Clock Freq MHzDC Pwr mWDie Size mm2

Yield %Test Time ms

Etc. Project Vital Signs Are Translation of OTS Into Working Document

Sets Targets for Engineering (or Prototype) Samples Sets Targets fro Mass Production Release (Typically = OTS Spec) Provides Format/Framework for Project Updates at Appropriate Intervals Can Have Vital Signs For Different Functions; i.e. SW vs. HW vs. Test vs. … Consider “Triggers” For Key Vital Signs at Critical Milestones/Phase Gates

* Still Applicable Outside of New Product Development Context, Though Milestone Nomenclature as Adapted to Situation


ARA (Feb’16)- © 2016 - 22

ARA TRAINING Project Goals & ObjectivesIt’s Not So EasyWhy?


ARA (Feb’16)- © 2016 - 23

ARA TRAININGStacey Matrix: Project Context

Requirements Can Be: Uncertain, Hard to Agree Too, Change Over TimeHow To Manage?

http://i.stack.imgur.com/kr6Pu.png


ARA (Feb’16)- © 2016 - 24

ARA TRAINING“Full” vs. “Iterative” Specifications


ARA (Feb’16)- © 2016 - 25

ARA TRAINING “Full vs. Iterative” SpecsCriteria Low High Comments

Time To: Demo Iterative Full If Takes Too Long or Costs toMuch to Demo or Recover From a Change, Best to Spend Time Up Front to Fully Spec Project

Change/Recover Iterative FullCost To: Demo Iterative Full

Change/Recover Iterative FullComplexity Internal to Prj Iterative Full As Linkages Go Up So Does Need to Fully Spec ProjectExternal Linkages Iterative Full

Safety/Security Requirements Iterative Full Self-EvidentCustomer Openness to Change Full Iterative If Customer Only Wants “Final” Product, Then Full Spec Required“Good Enough” Full Iterative

MarketClarity Iterative Full If Can’t See It, Can’t Spec It

Speed Competitive Response Iterative Full Iterative Could Be OK, Limit Introduction?Supply Chain Responsiveness / Agility Full Iterative Self-Evident

It’s Situational, But Typically Best to Spec as Fully as Possible Up-Front


ARA (Feb’16)- © 2016 - 26

ARA TRAINING

ARA TRAINING

Project Resources


ARA (Feb’16)- © 2016 - 27

ARA TRAINING Project Resources What Type & How Many

People: Skill Sets, Seniority, Etc. Tools: Equipment, Characterization, Materials, Etc. Account for Resource-Time Interaction (i.e. Availability & Capability)

Work Styles Problem Solving Style / Approach Conflict Resolution Style Team Skills Cultural / Language Co-Location / Proximity

Span of Control All Projects are Cross-Functional You Have Direct Control of Some Resources; But Not All Impact of Project Slips - Pipelining

Clear Authority (Level) Along With Ownership (Which is Key) Motivation: Vision, Challenge, Recognition

Keep Resource Dependencies Off Critical Path!


ARA (Feb’16)- © 2016 - 28

ARA TRAININGProject Teams Resource MappingTeam NextProject PG 1 toPG 2 PG 2 to PG 3 PG 3 to PG ES PG ES to PG 4 Sustaining Activities Comment

A TBD X101 X102 NoneB X108 X103 X104 RoadmapC X109 X105 Std CellsD TBD X106 X107 None

Prj Teams Resource Mapping Maintains Balance & Utilization Most Companies Will Have Multiple Teams/Projects at Any One Time Need to Maintain Full Utilization of Project Teams Without Overloading “Pull” (i.e. Team Pulls Project into Active Queue) Rather Than “Push” (i.e. Project Pushed onto Team) System Keeps Team From Overloading Template Provides Simple Way to Track Loading, Utilization, and Highlights Potential Problems or Required Rebalancing


ARA (Feb’16)- © 2016 - 29

ARA TRAININGFunctional Group Mapping For PrjsFunctional Group Prj A Prj B Prj C Prj D Prj Etc Sustaining Activities Comment

HW 20% 40% 0% 10% 20% 10% SlackSWTest

Quality

Functional Group Mapping Insures Balance & Budgeting Most Companies Will Have Multiple Teams/Projects at Any One Time Need to Insure Support Functions as Well as Core Functional Groups Have Capacity to Support Budgeted Projects Resource Models For Different Project Types and Stage Underpin Matrix Template Provides Simple Way to Track Loading, Utilization, and Highlights Potential Problems or Required Rebalancing


ARA (Feb’16)- © 2016 - 30

ARA TRAININGIndividual Project Team MappingDes

ign

Technology

Complexity Box Sets Budgetary Team Size* Bottoms-Up Mgr’s Analysis Determines Recommendation; Is It Consistent With Assigned Resources? Allow For Competency Levels – Not Just Numbers Get Full Resources When Needed; Adding Resources to Late Prj More Often Then Not Makes it Later

Functional Group Name Prj Freeing FromConcurrent Prjs

Experience / Prj match (Competency / Match)Sustaining Activities / Availability Comment

HW Lead Isabel X101 None High Low (< 10%)HW EngHW EngSW Lead

Etc

* Prj Complexity Matrix Discussed Later


ARA (Feb’16)- © 2016 - 31

ARA TRAININGIndividual Project Team Timeline

Critical That All Functions Be Represented at Every Stage Optimal For Core Team to Stay Together For Project Duration Optimal For Core Team Members to Be Dedicated Full Time Realistically However Some Resources Will Not Be Required Full Time or For All Phases – These Will Move In & Out of Project – Obvious Source of Prj Uncertainty / Risk

Functional Group ProjectScopeProject Commit / Launch

Alpha / Beta Demonstration Final Release / Project Complete CommentMarketing 3 2 2 1

Sales 2 1 2 3HW Engineering 2 5 5 4SW Engineering 2 5 5 2Mfg Engineering 1 1 2 4

Etc


ARA (Feb’16)- © 2016 - 32

ARA TRAINING Team Dynamics Team Formation Team Stages Functional vs. Cross-Functional Teams Composition

Typical Challenges Competing Priorities: Project vs. Project vs. Functional Job Team Competencies Resource Availability / Sufficiency Geographic Spread

Team Leadership Who Leads the Team? At What Stage? When? How?; Prj Mgr Role (If Exists) When do You “Negotiate”? How? When do You Ask For Help? How? How About an Executive Sponsor?

Marketing Design Eng Product Eng OperationsProjectLaunch(PR2)

SampleGate(AS)ProductionGate(PR4)PR1

PR3 PR-ES

Project Manager


ARA (Feb’16)- © 2016 - 33

ARA TRAINING Team Stages(After B. Tuckman, 1965) Forming: Initiation Phase

Prj Mgr Role: Must Bring Team Together, Ensuring Mutual Trust and Have Ability to Develop Working Relationships; Directing or "Telling" Style Storming: Ideas & Styles Compete, How to Get Along?

Prj Mgr Role: Guides Project Team Through Turbulent Transition Phase; Coaching Style, i.e. Tolerance of Each Team Member & Differences Needs to Be Emphasized Norming: Rules, Values, Behavior, Methods, Tools Being Established

Prj Mgr Role: Allows Team to Become Much More Autonomous; Participative Style Performing: Proactive, Learning, Improving; Roles Become Flexible; Team Energy Channeled into Getting Task Done

Prj Mgr Role: Lets Team Make Most of Necessary Decisions; Delegating Style Adjourning: Tasks are Being Completed &Team is Disassembled

Prj Mgr Role: Introduce New Project or Hand Off Team to Another Prj Mgr in Order to Re-Start Forming Stage of Team Developmenthttp://www.12manage.com/methods_tuckman_stages_team_development.html


ARA (Feb’16)- © 2016 - 34

ARA TRAININGFunctional vs. Cross-Functional Teams

Functional Team Advantages / Disadvantages Cross-Functional Team Advantages / Disadvantages How to Manage & Balance?

DE TE PE AE Ops SalesMK DETE

PE

AEOpsSales

MKMgt

FunctionalSiloWhite Space

Customer &

New Product

Functional Teams X-Functional Teams

Customer & New Product


ARA (Feb’16)- © 2016 - 35

ARA TRAININGFunctional vs. Cross-Functional Teams

100%X- Functional 100%Functional

Time-To-Market

Generally With X-Functional TeamsTTM is Shorter & Quality is Higher

Quality

Value From X-Functional Teams Comes From X-Fertilization, But That Requires Frequent Interaction and Openness to New LearningAll of Which is Facilitated By Co-Location and F2F Meetings


ARA (Feb’16)- © 2016 - 36

ARA TRAINING

ARA TRAINING

Project Costs


ARA (Feb’16)- © 2016 - 37

ARA TRAINING Project Costs

Prj Costs are Important, But … : After Initial Estimate (For Prj ROI), I Rarely Spend Much Time On It Why? In Prj Mgt (In Particular New Prj Mgt) If You Make the Committed Schedule, Costs Are Almost (99% ?) Secondary “No One” Asks You How Much You Spent if You Deliver on Time Being Late Almost Always Mean Reduced Margins & Market Share Loss ; In Some Markets ASP Can Fall 15%+ Per Year


ARA (Feb’16)- © 2016 - 38

ARA TRAINING Individual Project CostsCost Categories OriginalBudget PG – 3 Update PG – ES Update PG – 4Update / Final Comment

Personnel X101 None HighTools

ResourcesEtc.

Prj Costs are Important, But … Focus on Making Schedule 1st, 2nd, and 3rd Priority; Than Manage Costs Late Prj Means That Prj Waiting For Those Resources Also Delayed Generally Prefer to Manage Detailed Development Budget at Portfolio Rather Than Prj Level Typically Review Prj Costs Only at Kickoff & Major Milestones Typically Reasonable ±5 - 10% at Kickoff are Fine; Update at Major Milestones Only if Original Estimate is Way Off (> 20%)


ARA (Feb’16)- © 2016 - 39

ARA TRAINING

ARA TRAINING

Project Risk Management


ARA (Feb’16)- © 2016 - 40

ARA TRAININGProject Risk Management Plan Risk Identification

RBS, Brainstorming, Fishbone/Tree Diagrams, FMEA, … Feasibility Studies Types: Controllable(Deal With Causes), Uncontrollable (Deal With Effects), Unknown (Seek to Discover)

Risk Evaluation: Quantification/Impact Matrix Risk Response

Avoid : Take Action to Eliminate Risk Mitigate : Take Actions to Lessen Impact or Chance of Risk Occurring Transfer : Sometimes Makes Sense to Let Another Entity (Insurance, Known Expert, …) Assume Risk; Risky in Itself, So Requires Close Monitoring Accept : Can’t Eliminate All Risks, So Manage Risk/Reward – If Risk Small, Effort to Do Anything May Not Be Worth While

Risk Monitoring and Control Management


ARA (Feb’16)- © 2016 - 41

ARA TRAINING Risk Identification

In Project Management Are Risk & Uncertainty JustDifferent Sides of The Same Coin?

MarketCompetitionEngineering

ManufacturingTypes of Risk Areas of Risk

Uncertainty

Financial (TAM, SOM, Price, Cost)Timing (Schedule, Delivery)

Performance (Specs)Quality (or Safety)


ARA (Feb’16)- © 2016 - 42

ARA TRAININGRisk Identification: Breakdown Study

Breaks Down Project Risks into Addressable Units (Can Use Tree Diagram Like Above, Table, Fishbone, Etc.) Granularity Required Depends on Consequences; Less is More, So Typically Recommend No More Than Level 3

ProjectScheduleRisk

Market

Technology

Mfg

Level 1 Level 2


ARA (Feb’16)- © 2016 - 43

ARA TRAINING

Avoid, Eliminate or MitigateMost

Project Risk Evaluation Matrix

Risk Impact

RiskProbability

Low High

High

Low

Avoid, Eliminate or Mitigate AllAccept Some & Mitigate

Accept Most

Medium

Medium Accept Most & MitigateAvoid, Eliminate or Mitigate All

Avoid, Eliminate or Mitigate All

MitigateAll

MitigateMostDon’t Accept Even L-L Risk If Elimination is Low Cost

Too Often Ignored or Understated


ARA (Feb’16)- © 2016 - 44

ARA TRAINING Bow Tie Risk Mgt Analysis

Lists Potential Causes of Known Risk; Can Source Be From Fishbone or Tree Diagram Provides Planned or Existing Actions to Control / Prevent Potential Cause Ineffective Against Unknown Risks

Lists Potential Consequences If Risk is Realized; Can Source From “Pre-Mortem” Provides Planned or Existing Actions to Recover From Realized Risk Critical For Uncontrollable Risks

RiskEvent


ARA (Feb’16)- © 2016 - 45

ARA TRAINING Project Risk Mgt Table

Risk Category: Market/Customer, Technology, Mfg, … Probability (Of Occurrence): L-M-H or 1, 2, 4, 8, 16 Impact: Quantified in Terms of Time, Performance, Cost, … Learning Required: What is Unknown That Needs to Be Understood Mitigation Strategy: How Risk is Being Addressed Who: Who is Responsible Reduction Date: Target Date for Reducing Risk to Acceptable Level (Low or Medium) Elimination Date: Target Date When Risk is Eliminated or Has Little/No Impact

Table Will Evolve – Keep Updated & Review at Phase Gate Milestones

RiskCategory Risk Prob Impact LearningRequired Mitigation Strategy Who ReductionDate Elimination DateMarket

TechnologyMfgETC.


ARA (Feb’16)- © 2016 - 46

ARA TRAINING Final Word On RiskSome Degree of Risk Mgtis Appropriate, …

But Not Practical or Possible to “Plan Out” All Risks or SurprisesSo You Need to Create Your Own Schedule “Slack” or “Buffer”

How?If You Just Plan to Make Schedule You Will Always Miss Your Schedule


ARA (Feb’16)- © 2016 - 47

ARA TRAINING

ARA TRAINING

Project High Level Schedule


ARA (Feb’16)- © 2016 - 48

ARA TRAININGProject Management HierarchyPhase Gate

Review

Bi-Monthly orMonthly Review

Weekly PrjTeam Meeting

Team WorkingMeetings

EyesSpeedometer

Odometer

Map

After Agile Game Development With Scrum, C. Keith 2010

Different Measures & Monitors Keep You On Track When Driving Same Applies to Projects


ARA (Feb’16)- © 2016 - 49

ARA TRAININGProject / Product Development ModelsConceptDevelopment FeasibilityTesting ProductDesign DevelopmentProcess PilotProduction FinalProductionSequential / Waterfall Phases

“Sashimi”Phase Overlap

“Scrum”Phase Overlap

After “The New Product Development Game”, H. Takeuchi, I. Nonaka, HBR Jan-Feb 1986

Original Paper Created Bit of An Artificial/Extreme “Strawdog” Reference Model None-The-Less Emphasized Critical Need For Collaboration & “Parallel Work” Need For Phases / Appropriate Prj Oversight Isn’t Negated, But … … Need For Functional Experts to Work Together From Beginning, Teams to Stay Cohesive for Project Duration, and Overlapping Phases/Co-Work Highlighted


ARA (Feb’16)- © 2016 - 50

ARA TRAININGProject Roadmap: Phase Gates

Scope: What Are We Trying To Do (What’s In / What’s Out) ? Commit/Launch: Is This Worth Doing? Why? What Priority? Interim Gate(s) (For Projects > 30 Days): Are We on Track? Beta Demonstration / Soft Turn-On: Are We Ready to Risk Customer Sampling? Is There a Clear Path to Final Release? Project Completion / Final Release: Are We Really Going to Make Money? Are We Ready to Make It?

PR1 PR2 PR3 PR4Project Scope Project Commit / Launch Alpha / Beta Demonstration Final Release / Project CompleteSimplified Project Phase Gate Matrix


ARA (Feb’16)- © 2016 - 51

ARA TRAINING Generic Project Phase Gates

Phase Gates Can Number From 4 – 7 (Could Have Both Alpha & Beta Demo) Optional Phase Gates Include: Feasibility, Proto Launch or Alpha (Prj Complexity) Tailor Purpose, Questions, Etc. to Specific Project

PR1 PRF PR2 PR3 PR-Alpha PR4Project Scope Feasibility Project Commit / Launch Prototype Launch Alpha or Beta Demonstration Project Complete

Description & Purpose

• Justification:• Business Need• How it Helps Competitiveness• Prelim Financials

• Objective Spec (Prelim Goals)• BPI Scope / Budget• Prelim Schedule• PRF Resource Approval

• Feasibility Review• Process Map:

• “As Is”, • Assessment• “Desired ”• Gap

• BenchmarkingComplete; Best-in Class Identified• Tool Needs Identified• PR 2 Resource Approval

• Concept & Scope Complete• Sub-Projects Defined• Ties to Other Processes• Tool Finalists• Metrics Set• Financials/ROI• Schedule• Resources R&R• PR3 Resource Approval

• Implementation Plan Review(s)• Barrier ID & Removal Plan• Integration with Existing BP• RAPID Model• Metrics Update• Schedule, Resources & ROI• New Tools Available as Required

• Metrics: Actual vs. Goals; Tracking Methods• Customer Level Fcst Accuracy• Key (All) Tools Functional as Required• Path to Beta or PR4• Training Plan & Materials

• Metrics: Actual vs. Goals?• Integration with Existing BP• Final Specs• Maintenance Requirements• Sustaining Org• Forum for Continuous Improvement• Process Maturity• Steps to Next Level

Questions• Is Project Worth Considering?• Is Project Scoped?• Is There a Strategic Fit?

• Has Baseline BP & Gaps Been Defined?• Have New Tool Requirements Been Identified?

• Targets Set?• ResourcesAvailable?• Does ROI Merit ‘Go’?

• Are We Ready To Launch?• Segmentation?• New Tools Ready?• Does ROI Merit ‘Go’?

• Alpha Stage Goals Met?• Clear Path To PR-Beta and / or PR4?

• Ready For Unconditional Release?• All Related Areas Addressed?

Recommend Exec/Mgt Sponsor Appropriate Mgr Project Lead Project Lead Project Lead Project LeadAgree Appropriate Functional Execs Appropriate FunctionalExecs Appropriate Functional Execs Appropriate FunctionalExecs Appropriate Functional Execs Appropriate FunctionalExecsDecide COO/CFO COO/CFO COO/CFO COO COO COO/CFO


ARA (Feb’16)- © 2016 - 52

ARA TRAININGPG-1 PG-F PG-2 PG-3 PG-AS PG-ES PG-4

Marketing Product “Request” Feasibility CompanyCommit POR / TapeoutReview Alpha(Prelim) Sample Engineering (Final) Sample Release to Production

Description & Purpose

• Justification:• Business Need• How Helps Competitiveness

• Preliminary Objective Spec• Prelim Financials• Prelim Schedule• PG-F Resource Approval

• Feasibility Study Review• EquipmentNeeds Identified• PG-2 Resource Approval

• Goals Set• Metrics Set• Financials Set• Schedule Set• Resources R&R• Equipment List Finalized• PG-3 Resource Approval

• Process of Record Review• Metrics Update• Schedule & Resources• Financials• Equipment POs

• Metrics: Actual vs. Goals• Key Tools / Equipment Functional• Path to PG-ES or PG-4

• Metrics: Actual vs. Goals• Prelim QualData• All Tools / Equip at Spec• Path to PG-4

• Metrics: Actual vs. Goals?• Final Specs• Final Qual• Equip Capability

Questions• Is product worth considering?• Is there a strategy fit?

• Is there a path to achieving the product targets?

• Will we make money?• Can we make and sell the product?

• Are we ready to make the product?• Will we make money?

• Are we ready to Alpha Sample?• Will we make money?• Clear path to ES, PG-4?

• Ready to Eng Sample / Sell?• Will we make money?• Clear path to PG-4?

• Are we ready to make it?• Are we ready to sell it?• Do we make money?

Recommend Marketing Mgr Eng Lead Marketing or PrjMgr Eng or Prj Mgr Eng or Prj Mgr Eng or Prj Mgr Eng or Prj Mgr

Agree VP MarketingVP SalesVP Eng VP Eng VP SalesVP MarketingVP Eng, VP OpsVP MarketingVP EngVP Ops

AppsSalesAppsSalesCOO

VP SalesVP MarketingVP OpsDecide CEO, COO or GM VP-Marketing CEO, COO or GM CEO, COO or GM VP Marketing VP Marketing COO or VP Mfg

New Product Phase Gates

Phase Gates Can Number From 4 – 7 Optional Phase Gates Include: Feasibility, Alpha (or Engineering Sample) Tailor Purpose, Questions, Etc. to Specific Situation / Company


ARA (Feb’16)- © 2016 - 53

ARA TRAINING Project Scheduling

Adopt Adaptive Levels of Detail: Near Term Detail, Long Term Direction Why? Best Laid Plans Go Awry A Few Weeks Into a Project After Some Point More Detail Doesn’t Increase Certainty / Precision

Bottom Line: Don’t Waste Time on Detail That Will Shortly Be Obsolete

C. Keith, April’14


ARA (Feb’16)- © 2016 - 54

ARA TRAINING Every Fighter Has a Plan …… Until They Get Hit


ARA (Feb’16)- © 2016 - 55

ARA TRAINING Cone of Uncertainty

Visual Description of Evolution of Prj Uncertainty Over Time During Initial Project Phases Uncertainty Relatively High As Project Progresses Uncertainty is Reduced Detailed Planning For Production Stage During Concept/Design Stage is an Exercise in Futility



ARA (Feb’16)- © 2016 - 56

ARA TRAINING Cone of Uncertainty

Tying Down Prj Scope, Elimination and/or “Locking Down” Variables Through Prj ‘Learning’ / ‘Discoveries’ Reduces Uncertainty Over Time … … But Effort Needs to Be Actively Managed & Focused For Optimal Impact Tools Like Prj FMEA & Tree Diagrams Can Be Useful in Highlighting Activities That Will Have Maximum Impact on Reducing Uncertainty

Once Concept Has Been Fixed,a Half Cone is a More Representative of Reality



ARA (Feb’16)- © 2016 - 57

ARA TRAININGProject Scheduling & Complexity

Complexity (New Blocks / Total Blocks)

TimeToMarket

Larger Projects = More ComplexityMore Complexity = More to Learn, More COL’s, More Time

Which is More Realistic: Linear or Non-Linear Relationship? Why?

Linear IncreaseWith Complexity Non-Linear IncreaseWith Complexity


ARA (Feb’16)- © 2016 - 58

ARA TRAINING

Interdependenceof Elements

Dimensions of Prj Complexity

ProjectComplexity

StructuralComplexity

UncertaintyElements

Size:# of Elements

Uncertainty:Non-Deterministic

Uncertainty:Semi-Deterministic

Uncertainty:Unforeseen ItemsAdapted From MIT Open CourseWare 1.040 Prj Mgt Spring 2009

Structural ComplexityCompounded by Uncertainty

Interactions Couple in Complex& at Times Unpredictable Ways


ARA (Feb’16)- © 2016 - 59

ARA TRAINING Complexity vs. Uncertainty

Degree of Uncertainty

Degree ofComplexity

Low High

High

Low

Look For Ways to Deconstruct Project To Reduce Complexity & Minimize Interactions,Focus on Bringing Clarity Quickly to Items/Paths With High Uncertainty

Straightforward ProjectThat Lends Itself to Basic Prj Mgt Techniques, Minimizing Prj MgtOverhead to Maximum Efficiency

Look For Ways to Deconstruct Project To Reduce Complexity & Minimize Interactions,Focus on Detailed Planning Will Have High ROI

Project Steps are Straightforward;Focus on Bringing Clarity Quickly to Items/Paths With High Uncertainty


ARA (Feb’16)- © 2016 - 60

ARA TRAININGSchedule Estimates: Starting PointsOptions For Schedule Creation Starting Point

StartT = 0 EndT = Task 1 Task 2 Task 3 Task X. . . Zero-Base

EndT = H-StartT = HComp X Comp 1 Comp X EndT = H+Comp 1 Historical

EndT = O-StartT = BCOpt X Risk 1 Risk X EndT = R+Opt 1Best-Case


ARA (Feb’16)- © 2016 - 61

ARA TRAININGSchedule Estimates: Zero-Base This is The Conventional & Probably The Most Common Way to Create Schedules

Detail Activities That Need to be Done Estimate How Long Each Activity Will Take Sequence The Activities Appropriately

What are The Advantages? Limitations?When Might This Approach Be Appropriate? When Not? How Accurate Do You Think it is Typically?

StartT = 0 EndT = Task 1 Task 2 Task 3 Task X. . .

Note: Detailed Project Scheduling is Covered in Next Section


ARA (Feb’16)- © 2016 - 62

ARA TRAININGSchedule Estimates: Best-CaseEndT = O-

StartT = BCOpt X Risk 1 Risk X EndT = R+Opt 1


This Approach is Often Taken When an Organization is Heavily Marketing Driven or Led By a Strong-Willed Technology Savvy Exec Prone to Top-Down Edicts (Never Happens in Si Valley) Determine When Project (or Product) Has to Be Completed By … Or Determine What is Theoretical Possible (or Better Then That) … Or Set Fairly Arbitrary Schedule That Team Thinks is Impossible … Or You Get the Idea



ARA (Feb’16)- © 2016 - 63

ARA TRAININGSchedule Estimates: HistoricalEndT = H-

StartT = HComp X Comp 1 Comp X EndT = H+Comp 1


This Approach Starts With Historical Data – From The Companyor Individual Team Members Collective Experience Determine How Long a Similar Activity Took in The Past (Median or 25th

Percentile of Several Similar Projects Would Be Ideal) Adjust Schedule From That Anchor Based on Typical Factors That Impact Project Schedules (Team Competence, Relative Difficulty, Resource Availability, …)



ARA (Feb’16)- © 2016 - 64

ARA TRAINING Project Complexity MatrixPro

duct

Comple

xity

Technology ComplexityHighLow

Low

High TT$Resources

Project CostRisk

After S. Wheelwright, K.B. Clark, “Creating Project Plans to Focus Product Development”, HBR, March-April 1992


ARA (Feb’16)- © 2016 - 65

ARA TRAINING

Which is Best?


ARA (Feb’16)- © 2016 - 66

ARA TRAININGMarket Window vs. Development Team Capability ConundrumA Common Problem

Marketing Comes in With OpportunityGap Exits Between Market Window Requirement and Development Team Capability to Deliver

What to Do?


ARA (Feb’16)- © 2016 - 67

ARA TRAININGMarket Window vs. Development Team Capability Conundrum

Development Team (DT)TTM Capability

MarketingTeamVisibility

Weak Best-in-Class

FullSpectrum

ShortOnlyMismatch in MT & DT Capabilities; Going Out of Business Quadrant –Crises – Need to Fix Both ASAP

DT Value Limited By MT; Focusing on Short Term Ops May Be Only Option, But Lower R&D ROI; Fix MT Visibility

MT Compensating for DT; Focusing on Longer Term Ops May Be Only Option, But Not Viable Long Term; Fix DT TTM

Target Quadrant –Can Support Mix of Near & Long Term Prjs - Challenge is Developing & Keeping Capabilities


ARA (Feb’16)- © 2016 - 68

ARA TRAININGMarket Window vs. Development Team Capability ConundrumTactical Response Pass & Focus on More Achievable Opportunity

Why Waste DT Resources on Project That Will Not Be Delivered on Time? Disengage From Opportunity in Appropriate Manner

Heroic / “Bet The Company” Effort; Ships Burned Initiate “All Hands” Company Project Schedule Being King Sets Requirement For Everything That Must Happen All Necessary Resources / Funding Identified & Assigned Etc. …

“Lean Forward” Launch Project Understanding That it Would Take Better Than Previous “Best-Case” Performance, Betting That Market Window is “Flexible” Schedule Being King Sets Timelines For What Needs to Happen; Manage Aggressively (But Similar to Normal Prjs), Hoping For The Best


ARA (Feb’16)- © 2016 - 69

ARA TRAININGMarket Window vs. Development Team Capability ConundrumStrategic Response “That’s Life” (Non-Response)

Sometimes These Things Happen, That’s “Life”, Resign Yourself to It If it Happens too “Often”, Something is Wrong (How Much is Too Often?)

Marketing Why Wasn’t This Opportunity Known Earlier? How Good is Customer/Market Knowledge? Is This is Repeating Pattern? Does Marketing Understand DT’s Capability? Is an Appropriate Mix of Near/Medium/Long Term Opportunities Identified, Etc. …

Development How Good is Team’s TTM wrt Competition? How Consistent is Team on Meeting Schedule? Etc. …


ARA (Feb’16)- © 2016 - 70

ARA TRAININGMarket Window vs. Development Team Capability Conundrum

All Play a RoleManagement

Marketing

DevelopmentTeam


ARA (Feb’16)- © 2016 - 71

ARA TRAINING

Let’s Talk AboutManagement’s Role


ARA (Feb’16)- © 2016 - 72

ARA TRAINING Project Management Outline Part 1: Project Management Set-Up(Plan)

Project Management Principles Goals & Objectives Risk Management High Level Scheduling Concepts The Market Window- Development Team Capability Conundrum

Part 2: Project Management Execution (Do) Detailed Project Scheduling & Schedule Uncertainty Project Team Meetings Project Management Toolkit

Part 3: Project Management Oversight (Check & Act) Project Phase Gate Reviews Project Management Reviews Project Feedback & Response Appendix

Part 2Next


ARA (Feb’16)- © 2016 - 73

ARA TRAINING PDCA Project ManagementPlan

(Set Goals, Resources & High Level Schedule)

Do(Detailed Schedule, Daily /Weekly Checks & Pull-in)


Act(Adjust Resources, Goals, & Schedule)