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					Reinventing Project
   Management
     Part 1 slides
               The Increasing Share of Projects




                                                Projects
       Operations



                               Time                         Industries,
                                                           Companies,
                                                               Society
  1800s             1900s             2000s
Agricultural      Industrial      Information
  society          society          society
                     The motivation

• The assumption:
   – Different projects are managed in different ways.

• The literature and the discipline assume:
   – “a project is a project is a project.”

• There is no accepted framework

• The need:
   – A framework to distinguish among projects
   – Practical guidelines on how to manage projects in different
     ways
              The Questions

• How to Distinguish Among Projects – Dimensions?

• How to Classify Projects on Each Dimension?

• How to Manage Different Project Types?

• Is There More than One Way?
          What Impacts Project Type?


Environment

Product        Project       UCP   NTCP
Task
                                   Technology



                     Complexity                 Novelty




                                   Pace
                              Uncertainty-
                              at the moment of
         Complexity           project initiation
              Risk
                              Complexity -
                              size,
                              # of elements,
                              variety,
                              interconnectedness
                Uncertainty
                              Pace -
                              available time frame
  Pace




The UCP Model
         Four Dimensions for Distinction
              Among Project Types

• Novelty – How new is the product to customers and users
   – Derivative, Platform, Breakthrough

• Technology – How much new technology is used
   – Low-tech, Medium-tech, High-tech, Super High-tech

• Complexity – How complex is the system and its subsystems
   – Assembly, System, Array

• Pace – How Critical is the Time frame
   – Regular, Fast/Competitive, Time-Critical, Blitz
The Project Diamond - Assessing a Project’s Risk/Benefit and
Selecting the Right Management Approach
                       Technology
                                                Super-High
                                                Tech


                                                High-Tech
   Automatic Bag –
   Handling System
                                                Medium-Tech


                                                Low-Tech

              Array   System   Assembly                                       Novelty

                                                Derivative Platform Breakthrough
Complexity
                               Regular


                               Fast/                             Airport
                               Competitive                     Construction
                                                                 Project
                               Time-Critical


                               Blitz



                                               Pace


 Denver International Airport Project
                                Project Success




Efficiency        Impact on          Impact on        Business &           Preparing for
                  Customer             Team          Direct Success           Future


• Meeting        • Meeting          • Team           • Sales             • New
  schedule         requirements       satisfaction   • Profits             technology
• Meeting          and              • Team morale    • Market share      • New market
  budget           specifications   • Skill          • ROI, ROE          • New product
• Changes        • Benefit to         development    • Cash flow           line
• Yield            customer         • Team           • Service quality   • New core
• Other          • Extent of use      member         • Cycle-time          competencies
  efficiencies   • Customer           growth         • Organizational    • New
                   satisfaction &   • Team             measures            organizational
                   loyalty            members’       • Regulations         capabilities
                 • Brand name         retention        approval
                   recognition      • No burnout




Specific Success Measures
    Success Dimensions

   Preparing
   for Future

                                          Project
   Business                               Success
   & Direct
   Success



   Impact on
   Team



   Impact on
   Customer




   Efficiency

                                            Timeframe
                Short    Medium    Long




Timeframes of Success Dimensions
 Importance




                                                   Preparing
                                                   for Future

                                   Business &
                                  Direct success

                      Impact on
                      Customer
                       & Team

         Efficiency



         Low              Medium               High             Uncertainty


Relative Importance of Success Dimensions is Project-
Dependent
                          Technology
                                                 Super-High
                                                 Tech


                                                 High-Tech


                                                 Medium-Tech


                                                 Low-Tech

               Array   System   Assembly                                       Novelty

  Complexity                                     Derivative Platform Breakthrough

                                Regular


                                Fast/
                                Competitive


                                Time-Critical


                                Blitz



                                                Pace



The NTCP Framework
The NTCP Diamond
  Definition               Planning      Execution     Termination




                          Revise Plans



               Revise Definition


Classical Project Phases Modified to an Adaptive Iterative Approach
                   From traditional to adaptive project
                              management
         Approach               Traditional project management                             Adaptive project management


Project goal           Getting the job done on time, on budget, and within       Getting business results, meeting multiple criteria
                             requirements

Project plan           A collection of activities that are executed as planned   An organization and a process to achieve the
                              to meet the triple constraint                            expected goals and business results


Planning               Plan once at project initiation                           Plan at outset and re-plan when needed


Managerial approach    Rigid, focused on initial plan                            Flexible, changing, adaptive


Project work           Predictable, certain, linear, simple                      Unpredictable, uncertain, nonlinear, complex


Environment effect     Minimal, detached after the project is launched           Affects the project throughout its execution


Project control        Identify deviations from plan, and put things back on     Identify changes in the environment, and adjust the
                              track                                                     plans accordingly


Distinction            All projects are the same                                 Projects differ

Management style       One size fits all                                         Adaptive approach; one size does not fit all
                                    Entire Adaptive Iterative Approach



        Freeze Requirements                                           Freeze Design




                                                          Design, Build,
Requirements        Planning           Specs                                   Complete
                                                              Test

                                               Revise Design

                     Revise Plans

       Revise Requirements




                                    Adaptive Approach                          Traditional PM
Importance




                                                Preparing
                                                for Future
                               Business &
                               Direct success
                  Impact on
                  Customer &
                  Team


     Efficiency




    Project                                                  Time
    Completion



Relative Importance of Success Dimensions - A Matter
of Time
           Critical Success Factors
    Generic Projects          Product Development Projects

    Project Mission             Clear and Early Product Definition
                                 Defined Product Strategy
    Top Management Support
                                 Early Top Management Involvement
    Project Planning
                                 High Quality Process
    Project Control             Adequate Resources
    Client Consultation         Integrated Planning
    Skills                      Empowered and Communicating Team
    Personnel Management        Voice of the Customer
    Project Communication
    Client Acceptance
    Trouble Shooting
                            Technology
                                                   Super-High
                                                   Tech


                                                   High-Tech


                                                   Medium-Tech


                                                   Low-Tech

                 Array   System   Assembly                                       Novelty

Complexity                                         Derivative Platform Breakthrough

                                  Regular


                                  Fast/
                                  Competitive


       Required style
                                  Time-Critical                    Dr = (Pl, HT, Sy, FC)
       Actual style                                                Da = (Pl, MT, As, FC)
                                  Blitz



                                                  Pace

The FCS Project
                      Technology      Later design freeze
                                      More design cycles




                                                    Less market data
                                                    Later requirement freeze
    Complexity


        Complex organization
                                                                   Novelty
        Formality




                                      Autonomy


                               Pace



The Impact of the NTCP Dimensions on Project Management
 Benefits and risks of high NTCP levels

       Dimension              Expected benefit                                Potential risk


Novelty            Exploiting new market opportunities;      Having difficulty predicting exact market needs;
                         leapfrogging competition; gaining        missing sales targets; attracting
                         first mover advantage                    competitors to copy your ideas




Technology         Improving performance and functionality   Experiencing technology failure; lacking needed
                                                                  skills




Complexity         Bigger programs, bigger payoffs           Having difficulty in coordinating and integrating




Pace               Gaining early market introduction,        Missing deadlines; making haphazard mistakes
                         mounting quick response
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical                        D = (Pl, MT, Ar, FC)

                              Blitz



                                              Pace

The World Trade Center Project
Reinventing Project
   Management
     Part 2 slides
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical                         D = (Pl, HT, Sy, -)

                              Blitz



                                              Pace

The “Toy Story” Project
      Definitions and examples of project novelty

 Level of project                     Definition                                                 Examples
       novelty



Derivative project     Extending or improving existing products or   Developing a new version of a personal computer; upgrading a
                            services                                      production line; streamlining organizational procedures



Platform project       Developing and producing new generations      Building a new automobile generation; developing a new aircraft;
                            of existing product lines or new types          creating a new generation of a cellular system
                            of services to existing markets and
                            customers




Breakthrough project   Introducing a new concept, a new idea, or a   The first enterprise resource planning (ERP) package; the first
                             new use of a product that customers            photostatic copying machine (Xerox); the first Walkman; the
                             have never seen before                         Segway personal transportation system
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical
                                                                  Dr = (Br, HT, Sy, -)
         Actual style                                             Da = (Pl, HT, Sy, -)
                                   Blitz



                                                   Pace

The Segway Project
               Product novelty and project success:
                                                Expectations
Success dimensions and                                                  Level of project novelty
    possible failure
                                           Derivative                             Platform                         Breakthrough

Efficiency                      High efficiency is critical; no room   Time to market is important for     Efficiency is difficult to achieve
                                for overruns                           competitive advantage               and may not be critical (unless
                                                                                                           competitors work on the same
                                                                                                           idea); overruns likely

Impact on customer              Gaining additional customers and       Having high strategic impact on     Outstanding improvements in
                                market segments                        customers; retaining previous       customer’s life and work
                                                                       generation customers

Impact on the team              Team members extend their              Team members gain technical         Team members explore new
                                experience in quick product            and managerial experience in        fields and gain extensive
                                modifications.                         introducing new-generations.        experience in unknown markets



Business and direct   success   Extends life of existing products;     High strategic impact on the        Long-term, significant business
                                additional revenues and cash cow       business; expectation of years of   success; may come later after
                                current products                       revenues and building of            initial products have been tested
                                                                       additional derivatives              and refined


Preparation for the future      Almost none                            Maintaining a strategic position    Creating new markets and
                                                                       in the market                       establishing substantial
                                                                                                           leadership positions
       Impact of product novelty levels on project
                                            management
  Managerial aspect                                            Level of product novelty

                             Derivative (De)                      Platform (Pl)                        Breakthrough (Br)

Market data           Accurate market data exists       Extensive market research and         Unreliable market data; market needs
                           from previous products            careful analysis of previous           unclear; no experience with
                           and market research               generations, competitors,              similar products; customer base
                                                             and market trends                      not defined


Product definition    Clear understanding of required   Invest extensively in product         Product definition based on intuition
                            cost, features,                   definition, involve potential        and trial and error; fast
                            functionality, etc.               customers in process                 prototyping to obtain market
                                                                                                   feedback


Requirements freeze   Early freeze of product           Freeze requirements later, usually    Very late freeze of requirements, often
                             requirements, usually           at mid–project                         after prototype feedback
                             before or immediately
                             after project launch


Marketing             Emphasize product advantage       Create product image. Emphasize       Create customer attention through new
                          in comparison to previous          product advantages;                   and innovative marketing
                          model; focus on existing           differentiate from                    techniques; educate customers
                          as well as new customers           competitors                           about potential of product;
                                                                                                   hidden customer needs; create
                                                                                                   industry standard
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical
                                                                  Dr = (Pl, HT, Sy, -)
         Actual style                                             Da = (De, MT, Sy, -)
                                   Blitz



                                                   Pace

Financial Middleware Software Project
                        Technology
                                               Super-High
                                               Tech


    Automatic Bag –                            High-Tech
    Handling System                                                   Airport
                                                                    Construction
                                               Medium-Tech            Project

                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical


                              Blitz



                                              Pace

Denver International Airport Project
 Project types based on levels of technological
                                             uncertainty

                                          Level of technological uncertainty


                     Low-Tech                  Medium-Tech                     High-Tech                   Super-High-Tech



Definitions   Uses only existing, well-   Mostly existing               Uses many new, recently       Key project technologies do
                   established, and             technologies; limited        developed, existing            not exist at the time of
                   mature                       new technology or a          technologies                   project initiation
                   technologies                 new feature




Examples      Construction, road          Derivatives or                New systems in a fast-        New, unproven concepts
                   building, utilities,         improvements of              moving industry (e.g.,        beyond the
                   build-to-print               products; new                computers, military           technological state of
                                                models in established        systems)                      the art (e.g., Apollo
                                                industries (e.g.,                                          moon landing program)
                                                appliances)
         Project characteristics and technological
                                          uncertainty levels
       Variable                                              Level of technological uncertainty
                              Low-Tech               Medium-Tech                   High-Tech                   Super-High-Tech
Development, testing,   No development; no        Limited development;    Considerable development        Need to develop key
     and prototypes          testing                    some testing           and testing; prototypes         technologies during
                                                                               usually used                    project effort;
                                                                                                               intermediate small-scale
                                                                                                               prototype
Design cycles and       Only one cycle; design    One to two cycles;      At least two or three cycles;   Typically three cycles after the
     design freeze            freeze before             early design            design freeze usually           final technologies have
                              start of project          freeze                  at midpoint during              been selected; late
                              execution                                         second or third quarter         design freeze
Project reviews         Formal progress and       Formal progress and     Technical reviews with          Extensive peer reviews by
                             status reviews            status reviews;         experts in addition to          technical expert teams
                                                       some technical          formal progress                 critical to success
                                                       reviews                 reviews
Management style and    Firm style; sticking to   Less firm style;        More flexible style; many       Highly flexible style; living with
    attitude                  the initial plan          readiness to            changes are expected            continuous change;
                                                        accept some                                             “looking for trouble”
                                                        changes
Communication and       Mostly formal             More frequent           Frequent communication          Many communication
    interaction               communication;            communication;         through multiple                channels; informal
                              scheduled                 some informal          channels; informal              interaction
                              meetings                  interaction            interaction
Project manager and     Manager with good         Manager with some       Manager with good technical     Project manager with
      project team          administrative            technical skills;       skills; many                      exceptional technical
                            skills                    considerable            professionals on                  skills; highly skilled
                                                      proportion of           project team                      professionals
                                                      academicians
Contingent resources    5%                        5-10%                   10–25%                          25–50%
      Resources
                                                                             Legend:

                                                                             A- Low-Tech
                                                                             B- Medium-Tech
                                                                  D
                                                                             C- High-Tech
                                                            C                D- Super High-Tech
                                                        B
Planned                              D: n+3         A
                                                                             B: 1-2 – Number of
Resources                                                                             design cycles

                                                                             n – No. of cycles
                                                                                 required to choose
                                  C: 2-3                                         the final
                                                                                 technologies


                         B: 1-2

                 A: 1

                                                                      Time
            Project                           Project Scheduled                        Possible time
            Initiation                        Completion
                                                                                       ranges for
                                                                                       design freeze



                                                                                       Risk area




Possible Time Ranges for Design Freeze, Number of Design Cycles,
and Risk Areas for Project Outcomes
Low- and medium-tech versus high- and super-
                                        high-tech projects
   Managerial issue                                                    Project type

                                   Low- and Medium-Tech                                High- and Super-High-Tech


Managerial style          Rigid, no-nonsense, “get it done” approach      Flexible, ready to accept many changes and tolerate long
                                                                                periods of uncertainty


Project reviews           Formal, top management approval of major        Formal executive reviews plus technical peer reviews by
                               phase completion                                experts



Saving time by            Phase overlaps possible                         Phase overlaps not recommended
     overlapping phases


Best contract type        Fixed-price                                     Cost-plus; fixed-price is possible at a later stage of
                                                                                development

Development approach      Linear development                              Spiral development


Additional concerns       Lower cost, on time                             Risk management, systems engineering, quality
                                                                                management
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical                        D = (Pl, SHT, Sy, -)

                              Blitz



                                              Pace

SR-71 Blackbird Project
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical
                                                             D = (Br, SHT, Ar, FC)
                              Blitz



                                              Pace

Apollo Program
Space Shuttle
 The Space Shuttle Program

1969   Initial proposal - to go to Mars in 1980s
       Encountered low priorities,
       Were asked to look for low-cost alternatives
1972   (August) Program approved; Shuttle only
       Based on known technologies -“success oriented”
1972   (November) Design freeze-
       configuration and technologies
1978   First flight scheduled
1981   Actual first flight - 60% budget overrun
1982   System declared operational
1986   Challenger accident
2003   Columbia accident
           Space Shuttle Program
             Initial Uncertainties

   First two-medium space vehicle
   First reusable space vehicle
   Liquid fuel engines and an external tank
   Huge 75 Ton glider
   5000 Miles glide from reentry to landing
   First orbital flight with a live crew
   No crew escape system
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical                  Dr = (Br, SHT, Sy, Re)
                                                                  Da = (Pl, HT, Sy, FC)
         Actual style
                                   Blitz



                                                   Pace

The Space Shuttle Program
                  Space Shuttle
            Project Management Style

Actual Style              Alternative Style

Success oriented          Look for trouble
Off-the-shelf items       Alternative technologies
Early configuration and   Late freeze; Build a
  design freeze             small-scale prototype
Low flexibility           High flexibility
Early operational         Extended development
Limited communication     Intensive communication


Type C                    Type D
High-Tech                 Super High-Tech
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical
                                                             D = (Pl, HT, Sy, -)

                              Blitz



                                              Pace

The Ford 2000 Project
   The three levels of project complexity


       Project complexity             Product complexity                          Examples of projects


Assembly project            Material, component, subsystem, assembly   Development of a PDA, Post-it notes, design of a
                                                                            single service




System project              System, platform of systems                Missile development, new computer development,
                                                                             new automobile model, a single building
                                                                             construction, restructuring a production
                                                                             plant


Array project               Array, system of systems                   English Channel tunnel, national missile defense
                                                                             system, new neighborhood construction,
                                                                             nationwide cellular system
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical
                                                                  Dr = (Pl, MT, Ar, -)
         Actual style                                             Da = (Pl, MT, Sy, -)
                                   Blitz



                                                   Pace

The Chunnel Project
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical
                                                             D = (Pl, HT, Sy, FC)
                              Blitz



                                              Pace

The Harmony Project
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical
                                                                  Dr = (Br, HT, Sy, TC)
         Actual style                                             Da = (Pl, MT, As, TC)
                                   Blitz



                                                   Pace

Mars Climate Orbiter Project
                            Four levels of pace


                    Regular               Fast/Competitive                    Time-Critical                        Blitz




Definitions   Time not critical to   Project completion on time is     Meeting time goal is critical    Crisis projects; utmost
                   organizational          important for company’s           for project success; any          urgency; project
                   success                 competitive advantage             delay means project               should be completed
                                           and/or the organization’s         failure                           as soon as possible
                                           leadership position




Examples      Public works, some     Business-related projects; new    Projects with a definite         War; fast response to
                    government            product introduction, new          deadline or a window of          natural disasters;
                    initiatives,          plant construction in              opportunity; space               fast response to
                    some internal         response to market                 launch restricted by a           business-related
                    projects              growth                             time window; Y2K                 surprises
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical                  Dr = (Pl, MT, Sy, TC)
                                                                  Da = (Pl, MT, Sy, Bl)
         Actual style
                                   Blitz



                                                   Pace

The Y2K Case Project
Reinventing Project
   Management
     Part 3 slides
Benefit and Opportunity




            Approve         Further
 High     Immediately     Consideration




           Further          Reject
 Low     Consideration    Immediately


                                          Risk or Difficulty
            Low             High



Risk and Benefit Assessment Matrix
                        Technology
                                               Super-High
                                               Tech


                                               High-Tech


                                               Medium-Tech


                                               Low-Tech

             Array   System   Assembly                                       Novelty

Complexity                                     Derivative Platform Breakthrough

                              Regular


                              Fast/
                              Competitive


                              Time-Critical


                                                             D = (Br, MT, Sy, FC)
                              Blitz



                                              Pace

Market Watch Project
                            Technology
                                                   Super-High
                    Radical                        Tech
                    Technological
                    Innovation
                                                   High-Tech
                    Incremental
                    Technological                  Medium-Tech         Incremental
                    Innovation                                         Market
                                                                       Innovation
                                                   Low-Tech

                 Array   System   Assembly                                       Novelty

Complexity                                         Derivative Platform Breakthrough

                                  Regular
    Architectural
    Innovation                    Fast/
                                                                       Radical
                                  Competitive
                                                                       Market
                                                                       Innovation
    Modular                       Time-Critical
    Innovation

                                  Blitz



                                                  Pace


Innovation Categories and Project Types
                                                                                                 Manage by
                                                                                                 Breakthrough
                                                                                                 Projects
                  Product Performance

                                                                                                     Manage by
                                                                                                     Platform
                                                                                                     Projects




                                                             Time


                 The Innovator’s Dilemma and Project Management
Adopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors
    Novelty                Breakthrough                 Platform          Derivative   Derivative
                                                                          Platform

    Technology             Medium to                    Medium-          Medium-       Medium to
                           Super-high-tech              tech             tech          Low-tech

    Goal                   Strategic                    Strategic        Operational   Operational

    The Evolution of Project Types along the Product Life-cycle

Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors
      The Microwave Oven Patent Filed
Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No. 02495429, Filed Jan. 24, 1950
The first Microwave Oven
                Characteristics of projects for various
                              customers
     Characteristic                                                       Customer type
                                  Consumer (B2C)                Industrial/Business (B2B)                 Government/Public (B2G)
Examples of products        MP3 player, PC, cars            AS/400, B777, ERP systems                  Hubble telescope, FCS, Army
                                                                                                            communication
Value to customer           Impact on quality of life       Impact on business                         Impact on public goals and needs
Producer’s objective        High volume, market share       Industry leadership, preferred             Long-term relationship
                                                                  provider
Project focus               High focus on time, cost, and   High focus on time and cost                High focus on performance
                                  quality
Product definition          Defined by marketing;           Continuous customer involvement            Defined by or with customer
                                  perceived customer
                                  needs, market research
Project scope: work,        Defined by producer             Defined by producer with customer          Defined by or with customer
      goals, deliverables
Contractual obligations     No contract, internal           Either external contract or internal       Contracted project, obligations to
                                 commitment                       commitment                                customer
Customer involvement        No direct involvement; focus    Sometimes direct customer                  Intense customer involvement; often
                                  groups or market trials       involvement                                  customer representative on
                                                                                                             the team
Financing                   Internally financed             Internally financed, or contracted by      Financed by customer according to
                                                                  customer                                  contract
Marketing                   Mass marketing,                 Industry image creation                    Competition for bids; focused on
                                 advertisement; brand                                                      major decision makers
                                 management;
Reliability                 High reliability required       Reliability may be traded off for timely   Reliability focused on safety
                                                                  delivery
Product support             Service availability            Training, documentation, on-call           Training, documentation, on-call
                                                                  support                                    support
                             Technology
                                                    Super-High
                                                    Tech


                                                    High-Tech


                                                    Medium-Tech


                                                    Low-Tech

                Array     System   Assembly                                       Novelty

Complexity                                          Derivative Platform Breakthrough

                                   Regular


                                   Fast/
                                   Competitive


         Required style            Time-Critical                  Dr = (Br, HT, Sy, Bl)
                                                                  Da = (Br, HT, As, Bl)
         Actual style
                                   Blitz



                                                   Pace

Wire and Cable Coating Project
Project Management -
 The Two + One Processes




Product Definition Process



 Managerial Process



 Technical Process

                             When are you shooting?
  Definition               Planning      Execution     Termination




                          Revise Plans



               Revise Definition


Classical Project Phases Modified to an Adaptive Iterative Approach
                       Technology
                                     Later design freeze
                                     More design cycles




                                                    Less market data
                                                    Later requirement freeze
   Complexity


                                                                     Novelty
       Complex organization
       Formality




                                      Autonomy


                              Pace




The Impact of the NTCP Dimensions on Project Management
    A Framework for Adaptation
        Category                      Project Types      PM Impact

    Strategic Goal             Strategic, Operational

        Customer                    External, Internal

       Combined          NPD, Product Improvement,
Business Objective       Maintenance, Infrastructure,
                                           Research
           NCTP
           Novelty               Derivative, Platform,
                                       Breakthrough
       Complexity           Assembly, System, Array

       Technology      Low-tech, Medium-tech, High-
                              tech, Super High-tech
             Pace    Regular, Fast/Competitive, Time-
                                       Critical, Blitz
      Uncertainty of
Technical Specs and Design


                                                          Project Start
                               Ideal World
                                                         Levels Determined by
                                                         Novelty, Technology,
                                                         And Other Uncertainties
                                       Real World



               Requirements
                  Freeze




   Specifications and Design
             Freeze
                                                    Uncertainty of Requirements




Reducing Requirements and Design Uncertainty
                                    Entire Adaptive Iterative Approach



        Freeze Requirements                                           Freeze Design




                                                          Design, Build,
Requirements        Planning           Specs                                   Complete
                                                              Test

                                               Revise Design

                     Revise Plans

       Revise Requirements




                                    Adaptive Approach                          Traditional PM
  Iterative Process of Requirements and Design Freeze



      Change Until Requirements Freeze                                           Specifications and Design Freeze




                                                                                                          Complete
Product Requirements      Technical Specifications     Design, Build, Test   Product Prototype
                                                                                                        final product




                                                     # of Design Cycles


                                         # of Requirements Change Cycles



   Initial Market Data            Market Research and/or Market Testing




                                                              Time

                                         Adaptive                                                       Traditional
                                    project management                                             project management
Typical project activities across project phases

     Phase              Activity                                                        Details
Definition   Market definition              Market/customer identification; Customer need
             Business objective             Define the expected business objective
             Product definition             Product description; Product requirements
             Project definition             Statement of work (scope); duration; budget; PM and team
             Identifying project type       Categorize a project based on strategic or operational, internal or external user,
                                                 novelty, technology, complexity, pace
             Success and failure criteria   Define management’s expectation on relevant success dimensions
Planning     Impact of type on project      Decide how each project category will affect project organization, processes,
                  management                     plans, activities, and team
             WBS                            Break scope into detailed work packages and activities
             Organization                   Project team structure
             Project process plan           Major phases, gates, and milestones
             Schedule                       Detailed network and timing of activities
             Budget                         Detailed cost of project based on WBS items
             Risk management                Risk identification and mitigation plan based on project type
             Integration plan               Timing and duration of integration activities
             Procurement                    Subcontracting and vendor management plan
             Communication                  Reporting structure and meeting schedule
             Human resources                Team development and training; Team motivation
             Product creation plan          Initial technical specifications; product design and testing plan
  Typical project activities across project
               phases (cont.)

    Phase               Activity                                              Details

Execution     Product requirements    Refine product requirements
                                      Freeze product requirements


              Product building        Product design
                                      Prototype building and testing
                                      Additional design cycles (redesign, rebuild, retest)
                                      Freeze product design
                                      Product building and testing

              Project monitoring      Progress and status of budget, time, and activities performed

              Project replanning      Update plans and make changes

Termination   Customer preparedness   Training materials and means



              Commercialization       Product introduction plan

              Project wrap-up         Project summary report
                                      Next generation planning
Risk Assessment
               Master plan – Entire project




               Medium detail plans – 4 to 6 Months




               Detailed work plans – Weeks




                                                Time



The “Rolling Wave” Planning Concept
Outsourcing Work Packages
Possible Outsourcing Regions

				
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