UNIVERSIDAD PARA LA COOPERACIÓN INTERNACIONAL (UCI)

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1 UNIVERSIDAD PARA LA COOPERACIÓN INTERNACIONAL (UCI) PROJECT PLAN FOR THE CALL CENTER PROJECT FOR ROCHE COMPANY USING THE SUMMIT-D METHODOLOGY AND PMBOK 2004 SOFIA ROJAS CAMBRONERO DOMINGO ROJAS FERNÁNDEZ FINAL GRADUATION PROJECT PRESENTED AS A PARTIAL REQUIREMENT TO APPLY FOR THE MASTER DEGREE IN PROJECT MANAGEMENT San José, Costa Rica June, 2006

2 UNIVERSIDAD PARA LA COOPERACIÓN INTERNACIONAL (UCI) This final graduation project was approved by the University as a partial Requirement to apply for the Master degree in Project Management Adriana Ruiz PROJECT DIRECTOR Dr. Franklin Marin PROGRAM DIRECTOR Sofia Rojas Cambronero STUDENT Domingo Rojas Fernández STUDENT

3 3 Academic Authorities Miguel Vallejo Thesis Program Director Adriana Ruiz Tutor of this Dissertation

4 4 Copyright Sofia Rojas Cambronero. Domingo Rojas Fernández. All Rights Reserved. The reader of this document knows that the contained information is strictly confidential and for restricted used to the study of this project. The reader accepts to keep the confidentiality of the presented information, and not to use it, not to sell it, not to transfer it, not to copy it, not to reproduce it, not to reveal it, not to report it, not to publish it, no to present it, to any person, organization or entity without written previous consent of the authors.

5 5 Dedication to our Families. A goal without a plan is just a wish. Antoine de Saint-Exupery ( ) He who every morning plans the transaction of the day and follows out that plan, carries a thread that will guide him through the maze of the most busy life. But where no plan is laid, where the disposal of time is surrendered merely to the chance of incidence, chaos will soon reign. Victor Hugo ( )

6 6 Acknowledgements To Roche organization in Central America and Caribbean, specially to Ricardo Camacho who permitted us to do this work.

7 7 Table of Contents 1 Introduction Background information The problem Project justification Objectives General objective Specific objectives Theoretical Framework Referential Framework Historical information of Roche PRISA in Central America and the Caribbean PRISA Geographical Reference Roche Strategic Planning Roche Organization Project Management Theory Project Management in Roche Relevant Material - PMBOK Methodology Framework Development The Processes followed to achieve the objective... 54

8 8 4.2 Process Develop Project Management Plan Process Scope planning Deliverable One: Scope Management Plan Process Scope definition Deliverable two: Detailed Scope Statement Process Create WBS Deliverable three: Work Breakdown Structure Process Activity definition Process Activity sequencing Process Activity duration estimating Deliverable Four: Effort Estimation Process Activity resource estimating Process Human Resource Planning Deliverable Five: Roles and Responsibilities Process Schedule development Deliverable six: Total Chronogram Deliverable seven: Chronogram by Resource Process Cost Estimating Process Cost Budgeting Deliverable eight: Cost and Time Budget Process Quality Planning Deliverable Nine: Quality Plan The rest of the processes... 72

9 9 5 Conclusions Recommendations Bibliography Annex A Annex A Annex A Annex A Annex A Annex A Annex A Annex A Annex A

10 10 Table of Figures Figure 2. Executive Office Organization Chart Figure 3. Pharma Division Organization Chart Figure 4. PRISA Organization Chart Figure 5. SUMMIT-D Framework for Global Informatics Figure 6. Planning Process Group Figure 7. Project Management Process Groups Figure 8. Suggested Project Plan Contents - PMBOK vs. SUMMIT-D... 56

11 11 Index of Abbreviations PRISA Productos Roche Interamericana UCI Universidad para la Cooperación Internacional PMBOK Project Management Body of Knowledge CCPSP Call Center Patient Support Program WBS Work Breakdown Structure CV Cost Variance CPI Cost Performance Index SV Schedule Variance SPI Schedule Performance Index

12 12 Summary This document is a thesis made to apply for the master degree in Project Management at the Universidad para la Cooperación Internacional. The work took place in Roche, that is a transnational company based in Switzerland that is dedicated to the Health Care business. It has a company called PRISA that manage the distribution, sales and marketing of their pharmaceutical products in Central America and Caribbean region. To promote and be in touch with their customers PRISA is centralizing in Costa Rica its regional Call Center, and that became a key project for the year When the authors of this thesis asked Roche for a topic to research, it was assigned to them the main objective of this work: To create a Project Plan for the Call Center Project of Roche using the PMBOK 2004 best practices and SUMMIT-D recommendations. SUMMIT-D is the standard methodology in Roche for systems delivery and it includes a set of recommendations to built a Project Plan. However, the planning processes were not detailed enough in other projects, and for the Call Center the challenge was also to take in consideration the PMBOK 2004 best practices. To reach that objective, the work was divided in three ordered steps. The first one was a documental research where the authors began the inquiry into and study of Project Management literature, principally the PMBOK 2004, investigating also all the documentation provided by PRISA about the SUMMIT-D methodology. The principal information collected by this process is presented in the Theoretical Framework in section two. Then, the authors contrast the SUMMIT-D recommendations against the PMBOK 2004 best practices to define what suggestions are adequate to make a proper Project Plan. This information is presented at the beginning of the Development in section four of this document. The second step was the Field Research that was an experimental activity to create the Project Management plan for the Call Center project. Roche requested the authors make each of the deliverables that SUMMIT-D recommends completing by using PMBOK best practices in the process. Finally the third step was to present the Project Plan to Roche sharing their recommendations and conclusions.

13 1 Introduction 1 Con formato: Numeración y viñetas

14 14 This thesis is the final graduation project to apply for the Master s Degree in Project Management at the Universidad para la Cooperación Internacional. The title of the work is Project Plan for the Call Center Project for Roche Using the SUMMIT-D Methodology and PMBOK This section is a general introduction of what the thesis is all about. It is divided by background information, the problem, the justification, and the objectives of the project. 1.1 Background information The purpose of the graduation project is that the students apply their know-how about project management to a real life scenario, with a real company, solving a real need, and showing a useful contribution to project management knowledge. The authors of this thesis contacted one of the companies where they work to look for something to be used as their graduation project. The company selected was Roche, and the project of the selected company, Roche, was to create a project plan. Roche is one of the biggest transnational corporations dedicated to health care business. Its major division is committed to the research and production of pharmaceutical products. To manage the business in the Central America and Caribbean region, Roche has a company based in Costa Rica called Productos Roche Interamericana and abbreviated PRISA. PRISA gave the students a project to collaborate on a complete project plan using Roche standard methodology and PMBOK recommendations. The selected project was The Call Center. Its objective was to centralize PRISA s call center infrastructure in Costa Rica. During 2004 the PRISA organization began to implement the CCPSP (Call Center Patient Support Program), a new call support service for Central America and Caribbean Roche products. The first part of the program provided service to Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, and Dominican Republic, and the first product to be included in the program was Xenical (a special drug used to reduce weight). PRISA developed a small call center in each country and each call center could receive calls and generate calls. The portfolio of oncology products was included in

15 15 the CCPSP scope for 2006 planning, and other products such as Bonviva (a new product to help the patient fighting lung cancer) had been taken into consideration as well. 1.2 The problem Roche is committed to project management on a global scale, and uses a standard methodology called SUMMIT-D provided by PricewaterhouseCoopers and IBM. SUMMIT-D is a set of recommendations for systems delivery that includes most of the PMBOK 2000 best practices for project management. It does not make any reference to the PMBOK 2004, because the release of SUMMIT-D currently used by Roche was made before Even though Roche has a strong standard methodology for project management, the Central America and Caribbean regions do not use SUMMIT-D properly because the employees are not sufficiently trained, and know only part of the methodology. PRISA does not invest enough time planning small projects, and each project plan is usually a simple schedule of tasks. There are not enough examples of well-documented project plans that help the employees to plan their projects better. The lack of time in the planning phase of a project could affect the result of the project, and the achievement of the business goals. One of these goals in PRISA is to have a regional Call Center implemented by Here, all the calls to interact with clients are routed and answered in only one country. The Business Support department is preparing to manage the Call Center Patient Support Program (CCPSP) centralized in Costa Rica. The implantation is going to be in slow and moderate phases, where the first countries to be managed from Costa Rica will be El Salvador, Panama, and Dominican Republic. Because each country is now requiring training, support, and supervision, the distributed current structure is highly expensive and difficult to manage. This makes CCPSP is very important for the business.. This program is part of their tactic plan and aligns with their current strategic planning initiatives. This information proves that for Roche it is very important that the Call Center project succeed. Consequently, it is essential for Roche to have a well-documented project plan.

16 16 The opportunity and added value that the authors of this document are providing to Roche is in the application of the PMBOK 2004 best practices and the SUMMIT-D methodology at the same time to formulate the Project Plan of the Call Center project providing an example for future projects in PRISA. 1.3 Project justification This thesis was written to demonstrate the use of the SUMMIT-D methodology and PMBOK 2004 best practices in the elaboration of a project plan, using as an example the Call Center project that PRISA has to execute during Typically all of the projects of this kind require an authorization from several parts of the organization and that approval is given by signing the project charter. Usually it is found that the project charter is well documented to support the decision making process. However, the planning of a project once consisted of a simple Microsoft Project File which identified the list of tasks, the schedule, and sometimes the resources needed for the project. This is the case with the Call Center project and that s why PRISA is giving the writers of this document, the opportunity to make evident that a well documented project plan is helpful to achieve project success. because as the PMBOK says The Project Management Plan becomes the primary source of information for how the project will be planned, executed, monitored and controlled, and closed 1. If a project does not have a good project plan, several difficulties may occur. These include, the need for resources with no planned tasks to accommodate them, or incomplete tasks because it wasn t clear who s task it was. A well-documented project plan gives the project manager more efficient control of the project because it permits him to visualize how the project is planned to be and how to reduce the impact of any unexpected change that may happen. It is important for the PRISA organization to have an 1 A guide to the Project Management Body of Knowledge. Third Edition. Project Management Institute, Inc.

17 17 example of a well managed project, following their standards and the PMBOK practices, because that example will be used by PRISA employees to manage future successful projects. 1.4 Objectives General objective Create a Project Plan for the Call Center project for Roche Company using the SUMMIT-D methodology and PMBOK 2004 best practices before April 30 th The components of the project plan are: Deliverables Identification Work Breakdown Structure Effort Estimation Total Chronogram Chronogram by Resource Roles and Responsibilities Cost and Time Budget Quality Plan Specific objectives Develop a correct WBS for the project assuring that 100% of the work package level items have a deliverable and an assigned responsible.

18 18 Improve the accuracy of the activity duration estimate, using the Three Point Estimates technique in 100% of the tasks of the project. Reduce the gap between the schedule time estimates planned, and the real execution times of the project, by having a calendar specifying the availability for each one of 100% of the resources. Make an exacter budget for the project by defining a cost for each item at work package level. Guarantee a good service level of project management by shaping a quality plan that includes for scope, time and cost, at least 2 quality metrics for each.

19 2 Theoretical Framework

20 20 This section of the document is about the theory that will be used in the development of this thesis. It presents the Referential Framework to the reader containing the historical, geographic, strategic and organizational information that describes the context of the project. This section also shows the Theory of Project Management that will be use to build the deliverable of this graduation project that is the project plan for PRISA s Call Center project. 2.1 Referential Framework To produce a project plan for a company as successful as Roche, it is necessary to investigate some historical, geographic, strategic and organizational information about the company. This information will be considered to facilitate the interaction of the authors of this thesis with Roche project team members. This is because analyzing this information serves as an induction process to understanding how PRISA began in Central America and the Caribbean and the scope of the Call Center project. In this section the Strategic Planning is presented for Roche in the world. It is going to be used as a reference to develop the project plan because the Call Center project is part of the strategic plan for the region Historical information of Roche Roche was one of the world s first pharmaceutical manufacturers. Originally founded in Basel in 1896, by Swiss entrepreneur Fritz Hoffmann-La Roche, Roche has grown into one of the world s leading healthcare companies. Roche was founded at a time when the Industrial Revolution was changing the face of Europe. This was a time rich in inventions, social advances and progress in medical science, which marked a trend towards meeting the needs of a global healthcare market. Against this background, Fritz Hoffmann-La Roche realized his plans for the industrial manufacture of drugs of uniform strength and quality. Roche expanded this business over Europe rapidly, and in

21 , the first subsidiary in New York City, Hoffmann-La Roche Chemical Works Inc. was established as Roche's first office in the US 2. In 1920, Fritz Hoffmann died and the company began a new era with Emil Barell. In 1933, Tadeusz Reichstein (Nobel Prize winner 1950) offered Roche a workable method of synthesizing vitamin C. When vitamin C proved a commercial success, the process for full production was scaled up. Over a period of 32 years, Roche saw a steady growth of its international business. By 1938 Roche was using the furst synthesis process for vitamin C, vitamins had become the company's mainstay, and Roche had joined the ranks of the world's leading vitamin producers. Corporate growth took place in Europe, North and South Americas and the Far East, creating an ever larger trading and production network upon which Roche would build its global presence. Between the 1950 s and mid-1960 s pharmaceutical research at Roche was extremely diverse, with a portfolio ranging from antidepressants and antimicrobials to agents for cancer chemotherapy and inflammatory and cardiovascular diseases. To this day these have remained in core therapeutics areas, but they were to be eclipsed for a time by sensational development in the field of tranquillizers. Roche scientists had come across the benzodiazepine class, which proved to be the base for many milestone drugs to be marketed over the years to come. During this period Roche was also busily pursuing a course of acquisitions, entering new business fields like flavors and fragrances. In 1963, Givaudan S.A., one of the world s leading manufacturers of fragrances and flavors, was acquired. In 1964 Roche acquires the renowned French Fragrance Company Roure Bertrand Dupont. Between 1965 and 1978, propelled by the tremendous success of the benzodiazepines, Roche branched out into markets spanning the whole spectrum of health care, with a large variety of ventures. Bioelectronic departments developed electronic medical instruments; physicists at Roche helped to develop the liquid crystal displays now found in countless watches, calculators, computers, automobiles and television sets. Roche also invested in plant protection, reflecting the growing 2 Roche global Intranet site. This site could only be accessed from Roche network.

22 22 involvement in the agrochemical sector. Both in Switzerland as well as the United States, development teams were assembled to work on diagnostic tests and analytical systems, thus establishing the diagnostic arm of Roche. This period was also the starting point of Roche's involvement in basic biomedical research, creating the Roche Institute of Molecular Biology in Nutley and the Basel Institute for Immunology. The time saw also negative impact on Roche - the major chemical accident that occurred in Seveso and a product-pricing dispute in Great Britain. The move towards creating separate business units, that had begun in the mid- 70s, continued over the years and resulted in the creation of autonomous divisions. Accounting and reporting practices were standardized group wide, and comprehensive reorganization, rationalization, and modernization measures were implemented in all areas. The sale of Maag in 1990 and the spin-off of Givaudan in 2000 left Roche with three divisions: pharmaceuticals, vitamins and fine chemicals, and diagnostics. A wide range of pharmaceutical products were introduced over the years to come, and some represented real medical breakthroughs. The acquisition in 1990 of a majority interest in Genentech, a leader in the field of genetic engineering, and the takeover of Syntex Corporation, a strong research-oriented company, were part of a strategy for strengthening Roche's position in the global healthcare market. Roche strengthened its portfolio of over-the-counter medicines with the purchase of Nicholas, a non-prescription drug producer. This had become an increasingly important area because of the growing trend towards self-medication. By acquiring Boehringer Mannheim, Roche became the world leader in the area of diagnostic market in terms of a unique range of innovative products, depth and breadth of technologies as well as overall geographical presence. With the start of the new millennium, Roche has consistently continued to focus its strategy on being prepared for future growth. The alliance with Chugai in Japan, creating a leading research driven pharmaceutical company, produced a very good foothold in Asia that it is today's second largest healthcare market. The acquisition of Amira by Roche Diagnostics and the separation of the vitamins business reflects the concentration on the core pharmaceuticals and diagnostics businesses. Roche intends to continue developing innovative and cost-effective solutions in prevention, diagnosis, and drug therapy to the ultimate benefit of patients.

23 PRISA in Central America and the Caribbean During the Presidential period of Albert Caflisch ( ), an expansion of Roche occurred 3 with the creation of new companies in countries in where, it had previously worked mainly with agents. Although Roche considered that the most profitable choice was to make all the products in one place, the pressure that exerted the authorities by means of strong tariffs and refusal of import permissions made the transfer of the manufacture to the different branches inevitable. In the area of Central America and the Caribbean, branches of Roche were created in Havana (1955), Nicaragua (1965) and Guatemala (1969). The Revolution of Fidel Castro and the confiscation of the warehouses of Roche in Havana caused in 1959 the liquidation of the Cuban branch. In 1962, the increasing agitation of Central America finally motivated Roche to transfer the seat of the area from Panama to Canada. Roche gradually created a balance between the production of drugs or active chemical substances and the pharmaceutical formulation of medicines or specialties. This second task would be partially assigned to the branch in Nicaragua, from where it was planned to supply the Central American market. This was the scenario from 1968 to As a result of an earthquake in Managua in 1972, the buildings were considerably damaged. This fact, combined with the political agitation that reigned in Central America, caused a reconsideration of future investments in the area. Supplying the Central American market from the host house in Switzerland, where Roche had previously taken care of the necessities of the region, became impossible. On the 23 rd of December of 1972, as a result of the earthquake of Nicaragua, the plant and offices of Roche were forced to close their doors and to suspend their production. The personnel of each Division were transferred to the personal houses of the Financial, Pharmaceutical, Vitamins and General Manager to work there during the emergency. 3 PRISA Intranet site. This site could be accessed only from Roche network.

24 24 Meanwhile, it was decided to transfer the marketing functions, of Pharma and Vitamins, to Costa Rica. The first person who mobilized was Mr. Dieter Garbade (Vitamins Manager). In March of 1973, Garbade looked for a building for Pharma, Vitamins and the General Management. In June of that year, the furniture and certain personnel of the divisions of Pharma, Vitamins and General Management were transferred to Costa Rica. In 1982 Central America acquired the new denomination: Productos Roche Interamericana, S.A. (PRISA). In 1992 one quick operation was made to integrate the area of the Caribbean, increasing the territory to a total of 23 countries: Guatemala Costa Rica Honduras El Salvador Nicaragua Panama Dominican Republic Haiti Jamaica Aruba Curacao Suriname Guyana Antigua & Bermuda Bahamas Barbados Cuba Grenada St. Martin St. Kits Grenada Belize Trinidad y Tobago

25 PRISA Geographical Reference To understand the scope of the Call Center project, it is necessary to observe the geographic area covered by PRISA. The next figure illustrates the scope of Productos Roche Interamericana S.A. and the different countries they have to manage. PRISA Figure 1. PRISA Geographic Scope PRISA operates in Spanish and English speaking countries, which represents serious challenges to be considered for a project like the Call Center.

26 Roche Strategic Planning The deliverable of this graduation project is a Project Plan for a very important project for Roche, because it is part of a Roche strategic plan for PRISA s region. The Call Center project is one of many steps that PRISA plans to take in 2006 and 2007 to accomplish their goals. Below is a description of he components of Roche strategy THE GLOBAL STRATEGY According to Roche s Global Intranet site, at its core, Roche strives to be an industry leading innovator; not believing in innovation for innovation s sake 4, but providing real value to the customers. It will enhance their capability to create and commercialize medically differentiated products and services that lead to a tangible improvement to the health, quality and length of life of patients. The capabilities in diagnostics and pharmaceuticals enable Roche to innovate across the entire healthcare spectrum, from identifying disease susceptibilities and disease screening in populations at risk to prevention, diagnosis, therapy and treatment monitoring. Roche strategy focuses on building and exploiting distinctiveness to remain a winner in 2015 and beyond. To achieve this, it will be: Operating an advantaged, in-house innovation organization and an industry-leading network of partnerships and alliances. Securing access to the most promising emerging step change technologies, which will enhance its ability to deliver sustained innovation beyond Establishing a truly leading position in Personalized Healthcare as a central tenet of the focus on medically differentiated products. 4 Roche global Intranet site. This site could only be accessed from Roche network.

27 27 In addition, Roche will continue to build key enabler assets and capabilities, including: World-class scientific and managerial talent pool, and a leading talent development capability. Superior ability to meet the needs of key stakeholders (e.g., patients, customers, payers & physicians). Industry-leading bio-manufacturing capacity and capability advantage. Strong operational culture focused on continuous productivity. Strength in healthcare information management in specific areas of our business ROCHE CORPORATE MISSION Con formato: Numeración y viñetas Our aim as a leading healthcare company is to create, produce and market innovative solutions of high quality for unmet medical needs. Our products and services help to prevent, diagnose and treat diseases, thus enhancing people's health and quality of life. We do this in a responsible and ethical manner and with a commitment to sustainable development respecting the needs of the individual, the society and the environment ROCHE CORPORATE VALUES Con formato: Numeración y viñetas Service to patients and customers A prime objective of Roche is to meet the patient s and customer s needs for high quality products and services. This includes identifying and solving their problems, anticipating their future needs, 5 Roche global Intranet site. This site could only be accessed from Roche network.

28 28 maintaining close contacts with them, and listening to what they say. Roche s commitment includes full respect for patients individual rights. Respect for the individual Roche believes that the success of their company depends on the combined talents and performance of dedicated employees. For this reason, they want: To build respect for the individual into all work by ensuring that all members of the organization understand their responsibility to respect each other s rights and dignity Their people to develop their talents and make optimal use of their abilities and potential and to encourage information sharing and open dialogue; To provide recognition based on performance and contribution to Roche's success; To promote diversity and equal opportunities; Everyone in the organization to work under optimal conditions of health and safety. Commitment to responsibility We want to meet high standards of performance and corporate responsibility in all our activities and we apply our Corporate Principles in our dealings with business partners. We are committed to selecting, developing and promoting employees and managers with self-drive and empathy who: Combine professional competence with a leadership style that motivates people to high performance; Have an open mind and a sense of urgency, understand the needs of the company and have the courage to question conventional wisdom; Have the flexibility required to broaden their experience;

29 29 Live these corporate principles in their decisions and actions. Commitment to performance Roche aims to continuously create value for stakeholders and to achieve sustainable, high profitability. They do this in order to maintain a commitment to research, to ensure growth and independence, to provide employment opportunities, to cover risks, and to pay an attractive return on invested capital. Commitment to society Roche wants to maintain high ethical and social standards in all business dealings, in approaches to medical science, in efforts to protect the environment and ensure good citizenship. They will maintain these standards by adherence to local, national and international laws and co-operating with authorities and in proactively communicating with the public. Roche supports and respects the human rights within the sphere of their influence. Roche recognizes the need to work in partnership with stakeholders, regularly seeking their views and taking them into account. Commitment to the environment As part of the commitment towards sustainable development Roche proactively seeks to employ new, more sustainable technologies and processes and to minimize the impact on the environment. Commitment to innovation Innovation across all aspects of business is key to Roche s success. Being active in high technology fields, they must recognize new trends at a very early stage and be open to unconventional ideas. They see change as an opportunity and complacency as a threat. They encourage everywhere in the company the curiosity needed to be open to the world and new ideas.

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