Soirée Management de Projet «Mieux organiser les projets par l Ingénierie des

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1 Soirée Management de Projet «Mieux organiser les projets par l Ingénierie des Echanges (IDE)» Dr. Kenneth M. Brown École des Mines Paris Le 10 juin Info@afitep.fr

2 Project Management through Business Communication Engineering A new methodology to make projects successful around People and Communication AFITEP, Paris, 10 June 2004

3 Overview The Need for a New Approach What Is Communication Engineering? How to support Business Communication Engineering? IT Tool Requirements and Solutions

4 Projects May Fail For a Number of Reasons Technical Problems Market not sufficient Too late Too expensive Team motivation New technology that makes project results obsolete... the list is never-ending!

5 Problem at a car manufacturer: Journalists find out that the new product has a major flaw Initial total product cost priced the new vehicle out of the market Wrong decisions have been taken to review the cost : Only cost reduction Entire block of indispensable tasks not redone Nobody responsible for particular tasks Engineers knew about problem, but hierarchy was never informed

6 Problem at a car supplier: Product development to be finished before production starts The current product is produced with a poor 60% usable output The development was not finished before production Such problems need to be avoided for the next generation of products

7 Problem at a car supplier: Internal Simultaneous Engineering The complexity of the development is such that the project team is divided into sub-teams Fiefdoms instantly appear the team is not homogeneous Interdisciplinary collaboration within the project team becomes difficult

8 Problem at car supplier: How to get the Design Department to participate in planning Project plan only existed top-down, with very little detail With much effort, detailed planning was introduced, only to stop dead in its tracks When planning was enforced, durations were inflated and people found all types of excuses not to plan their work Coercive measures were found inappropriate

9 Problem at a vehicle manufacturer: Project Planning Project plans are elaborated once in a while for superiors, but they are not used in daily work Project plans are never updated People are reluctant to planning Time-consuming (excuse) Planning seems useless, as projects continually change (excuse) Risk of being controlled (the real culprit!) Loss of power (another real problem) If you try to force them: Destroys Creativity!!! (sledgehammer excuse)

10 Problem at a production equipment supplier: Projects regularly fail in a spectacular way We should have delivered this system two months ago! Says the boss: I heard we had a problem two days after the final deadline. No Early Warning System No overview of real project progress

11 Problem at a manufacturer of high-tech instruments: How to get a gang of star physicists to plan their work A company is the technological leader in highly sophisticated medical instruments Exceptional growth would be possible, but company faces difficulties in moving away from scientific culture No real project planning (sophisticated software acquired, but not accepted by scientists) Company is overwhelmed by orders: no overview whether new projects can be accepted due to insufficient data Profitability and market credibility suffering

12 Problem at a manufacturer of machines and vehicles: How to avoid new work delaying the project invariably The highly important project is understaffed and working at the limits of its capacity Marketing finds (another) interested customer: additional tasks need to be carried out to satisfy inquiries for samples The Project Manager has no means of defending his already overworked project team because the project plan is not detailed and not up to date

13 Problem at a car supplier: External Simultaneous Engineering Development with an external partner was working well, but suddenly ran into problems Information was being withheld for no apparent reason Development deadline endangered on highly important project

14 Large survey about best practices concluded empirical sources Use psychologists to improve the motivation of your employees Re-structure your company Define interface teams Recruit the perfect project manager... or many other Quick Fixes Over 100 Success Factors Over 7 years of experience show: It all boils down to COMMUNICATION

15 Project Management tools have not changed since the 1950 s. They are all based on central planning, Gantt & PERT / CPM Methodologies. Network flow theory Graph theory Gantt charts Milestone Method Probability Theory PDM CPM PERT Heuristic programming Search decision rule Heuristic Limited Resource Models RAMPS, SPAR, SDR/CPM PEP LESS IMPACT NASA PERT PLANNET SKED SPERT PERT II, III & IV PERT/COST PERT/LOB Cost Accounting Line of balance Bar charts Material requirements planning CPM/MRP Limited Resource CPM/MRP Flow graph theory MOST BPERT VERT Bayesiean statistics Performance measures Computer graphics Interactive CPM DCPM GERT Decision networks Probability theory

16 Overview The Need for a New Approach What Is Business Communication Engineering? How to support Communication Engineering? IT Tool Requirements and Solutions

17 Project SICPARI Simultaneous Engineering in Car Producing And Related Industries Scope Reduce time-to-market Catch up with Japanese car producers Partners Renault PSA Daimler-Benz Volkswagen FIAT Production Equipment Suppliers

18 Results of Project SICPARI: R&D is communication-oriented oriented R&D is people-oriented oriented R&D needs to be driven by results First appropriate methodology (5 W s) First vehicle developed in 25 months (Lancia Y)

19 Projects primarily produce.. knowledge Project objectives are translated in terms of produced knowledge that may take forms like : A plan A specification to buy, to build, to operate,. A prototype A report A patent Software A piece of equipment

20 .and communication is the right way to coordinate people and deliver the right contribution at the right time with the right actors To achieve the project objectives, combinations of knowledge produced by operations have to be coordinated Knowledge is created through the contribution of different competencies / people / teams which need to be coordinated Project timing directly depends on timely transfer of knowledge between teams or operations

21 Managing R&D projects through Business Communication Engineering is : Knowledge & communication oriented planning Decentralized, detailed planning Planned communication Decentralized, bilateral control of progress Control of communication and knowledge creation Simultaneous Engineering

22 Managing R&D projects through Communication Engineering is built on few basic concepts (1/2) Project is not a set of operations but of produced knowledge Project is defined in terms of knowledge that can be / has to be transferred from one actor to an other Codified Knowledge is transferred, not tacit know-how Managing a project is about knowledge creation rather than operations

23 Managing R&D projects through Communication Engineering is built on few basic concepts (2/2) Operation is not defined by what has to be done but by what usable knowledge it creates Operation is a set of activities carried out by a group that is steady over time and operates autonomously (does not need any knowledge input) Operation starts when incoming information initializes activities and ends when these activities have produced information that is documented and transferred to following activities Transfer of information within the group is part of the knowledgecreation operation Milestones are decision points based on accumulated produced knowledge

24 Overview The Need for a New Approach What Is Communication Engineering? How to support Business Communication Engineering? IT Tool Requirements and Solutions

25 The 5 W approach : Which information has to be elaborated? By Whom? With Who? With What? and When? And this has to be planned.

26 Which Information: Knowledge-oriented objectives The definition of objectives leads to the Deliverables Objectives include 1. The creation of knowledge (technical, scientific, aspects) 2. All economic and timing constraints / aspects 3. Human objectives (translation into evaluation criteria)

27 Which information? Top Management Financial aspects Industrial property R&D Marketing Key account management Potential project manager Staff DBS 0 Go! 1 Knowledge (deliverable)task Name Strengths and weaknesses of the company MS 0: Kick-Off Decision SWOT analysis + 2 List of business fields Definition of present business fields of the company efinition of all nowledge deliverables efinition of knowledge objectives 13 n milestone checklist 3 4 Which present and potential business fields exist? Definition of future market strategy. Chairman of each strategy circle Complete list of 5 members for each strategy circle 6 List of opportunities List of other business fields that have appeared due to the indepth investigation of the market MS 1: Which and how many business fields should the company pursue? Appointment of chairmen of each strategy circle Call for participation in strategy circles Strategy circle meetings New business opportunities 14 Industrial property protection suggestions Analysis of possibilities to protect knowledge in the business field 15 Business field report 16 Checklist:... Drafting of final report for business field MS 2: Decision on future action

28 By Whom and With Who? ith What Resources? Financial Methodological IT Tools Production tools.. DBS 0 Go! 1 Knowledge (deliverable)task Name Strengths and weaknesses of the company + 2 List of business fields 3 4 Which present and potential business fields exist? Definition of future market strategy. Chairman of each strategy circle Complete list of 5 members for each strategy circle 6 List of opportunities 13 List of other business fields that have appeared due to the indepth investigation of the market System Functions Top Management Financial aspects MS 0: Kick-Off Decision Task SWOT analysis Participants Definition of present business fields of the company MS 1: Which and how many business fields should the company pursue? Appointment of chairmen of each strategy circle Call for participation in strategy circles Strategy circle meetings New business opportunities Industrial property R&D Marketing Key account management Potential project manager One Task, one Responsible Staff 14 Industrial property protection suggestions Analysis of possibilities to protect knowledge in the business field 15 Business field report 16 Checklist:... Drafting of final report for business field MS 2: Decision on future action

29 When? Top Management Financial aspects Industrial property R&D Marketing Key account management Potential project manager Staff The Time Axis DBS 0 Go! 1 Knowledge (deliverable)task Name Strengths and weaknesses of the company + 2 List of business fields 3 4 Chairman of each strategy circle Complete list of 5 members for each strategy circle 6 List of opportunities 13 List of other business fields that have appeared due to the indepth investigation of the market MS 0: Kick-Off Decision The Sequence of Communication: SWOT analysis Definition of present business fields of the company Results are transferred by Which present and the Responsible potential business fields of each task exist? Definition of to the future tasks market strategy. that need the input MS 1: Which and how many business fields should the company pursue? Appointment of chairmen of each strategy circle Call for participation in strategy circles Strategy circle meetings New business opportunities 14 Industrial property protection suggestions Analysis of possibilities to protect knowledge in the business field 15 Business field report 16 Checklist:... Drafting of final report for business field MS 2: Decision on future action

30 LivePlanning & Bilateral Control concept LivePlanning Bilateral Control

31 LivePlanning / Bilateral Control People give updates on project progress once a week New tasks are also added right away The sum of all estimations give the most realistic overview of actual project progress and duration Scenarios can be simulated Empowerment and Motivation are high

32 Decentralised, Bilateral Control Green: Yellow: Red: The result can be delivered on time There are problems with the task: timely delivery is not possible Intermediate results show that the project may be in danger A yellow or red light obliges superiors to find solutions together with the project team.

33 Bilateral Control Only the task responsible really knows whether results can be delivered on time Task durations are estimated, yet it is agreed that this is a best case estimation Once a week the responsible puts a green, yellow or red status light on each task This is much more pertinent than a more accurate time estimation or a completion percentage The responsible gets something in exchange for openness: a possibility to constrain superiors to act when necessary

34 LivePlanning & Bilateral Control constitute a powerful Early Warning System At the earliest possible moment, occurring problems are: detected communicated handled The project does not wait until the next milestone to handle its difficulties this Early Warning System can easily be extended to suppliers (!)

35 LivePlanning is only possible with Business Communication Engineering Gantt and PERT are perceived as hindrances to creativity Technical people think first in terms of knowledge creation BCE helps think through the knowledge creation process and integrate business considerations Simultaneously, the data may be re-used to create Gantt charts and CPM calculations for operational integration LivePlanning with BCE gives everybody an overview of progress Motivation: What are my results good for? Integration: What needs to be handled next? Information: What results have become available?

36 Overview The Need for a New Approach What Is Business Communication Engineering? How to support Communication Engineering? IT Tool Requirements

37 IT tools: the Un solo papel concept LivePlanning can only work if the effort to keep the planning running is lower than the perceived advantage for each project participant For this reason, the update effort needs to be kept as small as possible This can be achieved with a system in which all data relevant to the project is Centralized (only one update) Constantly available and updateable by all project participants Data is pre-filtered to the needs of each particular user

38 IT Tools: Easier than paper and pencil Unlimited multiple access It must be possible to integrate several projects Views can be adapted to user requirements It must be possible to link the system to existing systems (ERP, etc.) And, most importantly: Easier to handle than paper and pencil