Project Management
Unit 9
Unit 9
Guide to Systematic Scientific Project Management
Structure: 9.1 Introduction Learning objectives 9.2 New horizons in project management nine steps Concept of total economics 9.3 Stages in a project management cycle DMAIS 9.4 The role of effective data management in the success of project management 9.5 Measuring and managing success 9.6 Summary 9.7 Terminal Questions 9.8 Answers to SAQs and TQs Answers to self assessment questions Answers to terminal questions
9.1 Introduction
Success of a project depends on the scientific methods deployed. Measuring performance helps us to understand the factors which contribute to success. You can try to adopt the same practices for projects which may have similar requirements and activities. In this unit you will consider how systematically implemented projects are dependent on effective data management systems. In addition to the above you will study a few more key concepts such as: Nine Steps - new horizons in project management Concept of total economics Business metrics Project management metrics team member selection Tips and Tricks for successfully implementing a metrics programme
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Learning Objectives By the end of this unit, you should be able to: Identify the nine steps which indicate the latest developments in project management Explain key Data Communication Systems Describe the way Communication and Systems Management are addressed in modern project management
9.2 New Horizons in Project Management Nine Steps
The concepts of project management keep evolving as new horizons become prominent. Figure 9.1 lists such nine steps that are expected to show a new way of looking at various functions of project management. These can be adopted in different project situations either as steps or as guiding principles. These steps give a new way of looking at various functions of management. Let us discuss each of these steps. Step 1 Being ready to accept discontinuity and be flexible The objective of any change initiative is achieved by making incremental changes. Incremental changes give an opportunity to all stakeholders to accept, implement, and verify the impact of the changes. After they come in terms with the consequences, they can move further and consolidate the gains. Incremental improvements are, however, acceptable only when the rate of change is not excessive.
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Fig. 9.1: Nine new horizons in project management
Modern development processes are very dynamic and call for quantum changes. Hence, project management in the modern context demands faster implementation by using high technology and extensive outsourcing. As a result, continuity is not expected at the cost of flexibility and agility. Project management today demands discontinuity and greater flexibility, with no hurdles to move into the future. An open mind towards the unknown is the key. Members are not expected to be rattled by sweeping changes
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demanded by the dynamically changing objectives. So a project management team should be ready to work at a greater pace irrespective of the frequent changes that may come in at any stage of the development. Step 2 Owning the problems and sharing the solutions Ownership involves acceptance of a problem and a total commitment to resolve the same. The project manager should seek the help of his team members and devise means to solve problems. He should look at the problems with an open mind and evaluate all possibilities to fix them. He should encourage the team to adopt this practice so that solutions come out faster. It is a good practice to document all the means by which solutions were obtained. This helps in recognising contributions as well as getting a reference for similar situations. This document with problem solving methods can be circulated and shared across the organisation for the benefit of other managers. This aspect is a crucial part of Knowledge Management practices. Step 3 Breaking the status-quo mentality Status-quo mentality implies that we need to accept the present situations as the best thing. Accordingly, people with such mentality make no attempt to make the present situations better. This attitude is the enemy of creativity and innovativeness. Research has shown that the human mind is always creative. By forcing it to accept what is comfortable; we are deprived of the gift of nature. We have to look for opportunities for improvement and change which is the principle of continuous improvement in TQM. Breaking the status-quo mentality implies that future is not an extension of the present and therefore it needs to be tamed. Excessive focusing on future may not however be appreciated. A proper balance is a must. Step 4 Stepping out of comfortable zone Seeking comfort in our work area is understandable, but to avoid taking any risk with the jobs to be performed is not a good practice. Challenges have to be faced, uncertainties have to be tackled and solutions found. This calls for accepting things as they come even if they are not comfortable always. This in turn gives opportunities for the project team to build confidence and learn new things.
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Risk aversion is not a good characteristic of a leader. Momentarily, a member might feel more comfortable to stay in the comfort zone and refrain from risks. However, he or she should remember that a team leader has emerged by stepping out of the comfort zone. On the other hand, if a member decides to step out of the comfort zone and be innovative and contribute then this would amount to emergence of a future leader. Promotions are not time bound any more. Step 5 Human capital by-passing financial Investment in Human Resources is by far the most productive. People are the great assets of a company. That is the reason training and benefits given to the personnel are no longer considered an expense, but an investment. The returns are long term and they improve with the passage of time. More importantly, quality becomes achievable only by the efforts and commitment of personnel. Providing opportunities for excelling in their performance is an important factor for retaining good employees. Human capital has thus left financial capital far behind. A member should therefore appreciate and maintain self realisation of his importance in the organisation. However, to sustain credibility, the member should remember that his or her value is not related to the level or the salary but on the quantum of output, again not on the volume of coding but on the value of the work done to the product. Combining these two concepts of human capital and value, the concept of return on the time invested has replaced return on investment when it comes to valuation. Signs of a positive workplace Transparency Ethical behaviour Error tolerance Expression of appreciation Learning atmosphere Constant search for excellence Forbearance An eye for detail Compassion
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Step 6 Transforming work culture The project manager should attempt to make the workplace friendly and funfilled. People should enjoy working, not be forced to work. Nowadays, every HR Manager is trying to devise schemes to make the place of work to be a fun place. Values are the general criteria, standards or guiding principles that determine how people behave in response to events and situations. These have a bearing on the culture of an organisation. Organisations are concerned with the influence these have on the work that the employees perform. These values determine the way employees interact with their colleagues and outside people. If needed, organisations may think about changing the way business is conducted to transform the work culture. To bring about the desired change in the employees, the senior management of an organisation should lead by examples. They need to provide certain positive experiences for the employees. All these do not come in a day. A deep understanding of the way these contribute towards bringing about change and an inner urge to practice them even in adversity lead to success. Then work will never become a burden. Work becomes an opportunity to remain joyful and find meaning to ones action. As employees, you need to add passion and joy if we aim any substantial progress. It is important for a member to decide to do what he or she wants to do. Then the gap between wish and reality is narrowed and the results improve. A project could well become a work of art. Step 7 Meaningful encounters more important than years of experience By tradition, we have been taught to treat the number of years of experience as a measure of knowledge and wisdom which will have a bearing on the correctness of the decision taken. Though, time and again, it has been proved that it is not the case. However, it has been difficult to overcome this because of the hierarchies and structures that the organisations have.
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The experience level is now judged by the number of encounters of major problems solved rather than the number of years. With the explosion in knowledge and change in work culture owing to the compulsions of competition and consequent changes in which work is accomplished, it has become relevant to consider the challenges one has met and successfully resolved is his working life. These will indicate the capability of a person to meet difficult situations in future. The secret formula for a member is to build an inventory of encounters meaningful to his or her own dream or passion profile. Step 8 Seeking meaning out of change You should consider change only when it is necessary or advantageous to meet the challenges that cannot be overcome using the traditional approach. You should keep in mind that the outcomes of change are not always beneficial. It should not be forgotten that before a change is attempted, some pre-requisites have to be met. Then the time, money and energy expended in bringing about change become meaningful. Consider the implementation of TQM as an example. Before attempting the process, you should ensure that the various procedures for assuring quality are being practiced. It should be ensured that the instruments for assuring quality are being used and calibrated. We should also train the personnel on how to use them. You should attempt to implement TQM only when the existing processes are incapable of assuring zero defects or Six Sigma standards despite employees having every facility and and a high standard of quality being achieved on a sustainable basis. The change you seek will have meaning only when the organisational culture, managements commitment, the processes of procurement and many other factors that Deming states are put in place.
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Who is Deming? William Edwards Deming was an American statistician, professor, author, lecturer, and consultant. He is best known for his ideas on how to improve design, product quality, testing and sales through various methods. What did Deming state? Dr. Deming mentioned 14 Points which serve as a guideline to make a more efficient workplace, to gain higher profits, and to increase productivity. 1. Create and communicate to all employees a statement of the aims and purposes of the company. 2. Adapt to the new philosophy of the day; industries and economics are always changing. 3. Build quality into a product throughout production. 4. End the practice of awarding business on the basis of price tag alone; instead, try a long-term relationship based on established loyalty and trust. 5. Work to constantly improve quality and productivity. 6. Institute on-the-job training. 7. Teach and institute leadership to improve all job functions. 8. Drive out fear; create trust. 9. Strive to reduce intradepartmental conflicts. 10. Eliminate exhortations for the work force; instead, focus on the system and morale. 11. (a) Eliminate work standard quotas for production. Substitute leadership methods for improvement. (b) Eliminate Management By Objective. Avoid numerical goals. Alternatively, learn the capabilities of processes, and how to improve them. 12. Remove obstacles that rob people of pride of workmanship 13. Educate staff with self-improvement programs. 14. Include each stakeholder of the company to accomplish the transformation.
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Finally, a project manager must note that change could be a threat or an opportunity. If change is resisted, it is essential for the entire team, through extraordinary team effort and brain storming, to weigh consequences before drafting of a plan to match proposals for changes. The key lies in extraordinary inter personal skills and communication. Step 9 Emotional Intelligence This is a quality highly sought in managers, especially Project Managers. Keeping ones cool when things go wrong is the basic tenet of this concept. One of the most dangerous aspects of the thinking process is expecting, assuming and favouring. Having taken all measures in the hope that the result will be certain is understandable, but expecting it as a certainty puts a lot of pressure on oneself and others. This coupled with the other two factors creates bias in ones mind and it reflects in ones decisions and actions. In a project, we are dealing with a number of uncertainties, including people and their behaviour. Getting upset will reduce the quality of decisions. When the manager exhibits emotional intelligence, others understand and respond properly. 9.2.1 Concept of Total Economics Any system of operations in which materials are acquired, stored, converted, distributed and paid for must require an information flow along the supply chain. A host of data moves along with the material as an information flow. Some of them are listed below. type of material quantity shape chemical composition drawing or specifications to be met supplier price taxes insurance place of loading destination
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transport packaging mode of payment
Value goes on getting added along the supply chain. Economies are effected when the consumption of material, power, movement and time are reduced. Inventory costs money and has to be kept to the minimum for achieving total economy. All these depend on procedures that have been scientifically designed and implemented efficiently. Self Assessment Questions Fill in the blanks 1. Modern development processes in the field of Project Management are very dynamic and call for _____ and __________. 2. One of the most dangerous aspects of the thinking process is to ________, _______ and __________. 3. Value goes on getting added along the ________.
9.3 Stages in a Project Management Cycle DMAIS
Project managers consider the five steps DMAIS as generic for any system of a journey towards excellence. Figure 9.2 lists the five steps hidden in the acronym DMAIS. DMAIS is highly relevant in Project Management for the simple reason that each step gives out in detail the actions to be taken to ensure readiness for the next step. Verification of DMAIS implementation is possible with checklists which can be prepared and used by employees at all levels. The team members can be given training to follow them. Let us consider each of five steps of DMAIS.
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Fig. 9.2: DMAIS
1. Define This step requires that what is sought to be achieved is identified in all its detail. The following are the inputs which will define what we are going to make: a. Benchmark: It refers to the standards achieved by the best in the industry. A companys product is set to meet them. b. Customer Requirement: It refers to the documentation of customer requirements. Proper understanding of customer requirement is of utmost importance. You should deliver what a customer requires. c. Process Flow Map: It shows the activities that take place to result in the product at the end of them. d. Quality Function Deployment This tool compares the quality characteristics in a companys product with those in their competitors and their relative importance to the customer. To achieve them, you find the technical specifications you have to incorporate in our product. e. Project Management Plan This includes the materials, men, activities, schedules, milestones and so on. 2. Measure In this step, we measure the outcomes of the activities. This is done using the following methods. a. Data collection You need to collect the data about the work that is done and compare as to how it corresponds with what is required
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b. Defect Metrics You need to capture the deviations that are in the effective potion of the work in defect metrics. Then you need to decide whether they are acceptable or need rectification. c. Sampling If the volumes are high, you need to select a few of them and inspect them to see whether the entire batch is acceptable 3. Analyze In this step, you have to analyse the data received from the preceding step by using the following tools: a. Cause and Effect Diagrams also called Fishbone Diagrams b. Failure Mode and Effect Analysis FMEA c. Root Cause Analysis d. Reliability Analysis 4. Improve In this step, you have to implement the measures to remove the defects found earlier for improving the process. This can be done using the following measures. a. Design of Experiments The effect of changing values of parameters is done in a controlled way. This allows you to experimentally determine the effect of variations determined. You can use the results for optimising the process b. Robust Design The equipment design is made robust to reduce the variations. c. Tolerances The permitted deviations are made closer, so that the capability of process is increased 5. Standardize When improvements have become consistent, the methods adopted are standardised. Self Assessment Questions Fill in the blanks 4. Benchmark The _____ achieved by the ____ in the ________. 5. Cause and Effect Diagrams also called __________ Diagrams. 6. Measures to remove the defects found earlier are ______________for improving _____, _____ and _____.
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9.4 The Role of Effective Data Management in the Success of Project Management
Data management consists of conducting activities which facilitate acquiring data, processing it and distributing it. Acquisition of data is the primary function. To be useful, data should have three important characteristics timeliness, sufficiency and relevancy (as shown in figure 9.3). Management of acquisition lies in ensuring that these are satisfied before they are stored for processing and decisions taken on the analysis.
Fig. 9.3: Characteristics of useful data
There should be data about customers, suppliers, market conditions, new technology, opportunities, human resources, economic activities, government regulations, political upheavals, all of which affect the way you function. Most of the data go on changing because the aforesaid sources have uncertainty inherent in them. So updating data is a very important aspect of their management.Storing what is relevant in a form that is available to concerned persons is also important. When a project is underway dataflow from all members of the team will be flowing with the progress of activities. The data may be about some shortfalls for which the member is seeking instructions. A project manager will have to analyse
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them, discover further data from other sources and see how he can use them and take decisions. Many times he will have to inform and seek sanction from top management. The management will have to study the impact on the overall organisational goals and strategies and convey their decisions to the manager for implementation. For example, Bill of Materials is a very important document in Project Management. It contains details about all materials that go into the project at various stages and has to be continuously updated as all members of the project depend upon it for providing materials for their apportioned areas of execution. Since information is shared by all members, there is an opportunity for utilising some of them when others do not need them. To ascertain availability at some future point of time, information about orders placed, backlogs, lead times are important for all the members. A proper MIS will take care of all these aspects. ERP packages too help in integrating data from all sources and present them to individual members in the way they require. When all these are done efficiently the project will have no hold ups an assure success. A Caselet on ERP Baker Hughes, a leading oil tools and drilling company, has units in 90 countries. The company decided to implement ERP application to streamline data flow across its various units. Post implementation, the company experienced a significant reduction in project turnaround time.
Self Assessment Questions Fill in the blanks 7. The three important characteristics of data are ________, ___________ and _____________. 8. _______ helps in integrating data from all sources and presents them to individual members in the way they require.
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9.5 Measuring and Managing Success
Project Managers are the key persons on whom top management depend upon for accurate periodic reports about the project. So the managers are continually concerned about the measurable aspects of the project in progress. Not all facts will show a measure of success of a project. The facts reported may not mean anything to the management. Therefore metrics used should be answering fundamental questions, the answers to which will be responsive to the needs of the top management. Metrics are important when predicting and controlling the outcome is important. We know what to correct, when to correct and how much to correct the factors that affect the measurement. Measuring is for the purpose of effecting corrections as project is progressing. Both the end-deliverables and the execution process have to be measured. The former is done to make sure that they support the business objectives. The latter is performed to make sure that the processes are running as predicted. Let us now look at some metrics and find out their meanings, measurements and benefits: ROI Meaning: It refers to the Return on investment on various investment proposals. Measure: You need to measure how long it will take for realising increased revenue or reduced cost to pay back the project investment. Benefits: It results in optimisation of performance Customer Satisfaction Meaning: It implies meeting clients needs expectations and defined scope. Measure: You need to measure document needs and expectations in a clearly defined scope. Benefits: It removes ambiguity of project acceptance and improves overall acceptance.
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Time and budget to Date Meaning: It refers to the part of the original budget and schedule that has elapsed to date as against work accomplished. Measure: You need to measure hours worked, materials consumed, and milestones reached. Benefits: It allows project progress to be measured against original estimates. Quality Meaning: It refers to the metric that will be used to determine acceptability of the end products. Measure: The measures vary from project to project. They could be expressed as a factor of defects, response time, delay in execution, number of milestones reached within time, and so on. Benefits: It removes ambiguity about project acceptance, and ensures clients satisfaction. On the same lines we have the following metrics for the project execution: Schedule Estimate Cost estimates Staff productivity Average time to repair The top management may determine which of the metrics they would like to use to measure efficiency, which they can communicate to the client also. Then the project manager will set up suitable reporting systems and analyse the progress accordingly. Success is the culmination of all measuring activities which brings satisfaction to all stakeholders. Lessons learnt should be the guiding factors for future projects. Self Assessment Questions Fill in the blanks 9. The metric that will be used to determine acceptability of the end products is ___________. True or False 10. Periodic reports show clearly indicates the success of the project.
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9.6 Summary
In this unit you have been able to identify the nine steps which indicate the latest developments in Project Management. The concepts to understand key operational and data communication systems have been explained. You would have learnt how to analyse key data elements for hierarchy and how to structure an operational model. You have also got an idea on the way Communication and Systems Management are addressed in modern project management.
9.7 Terminal Questions
1. What factors of internal environment are conducive for a culture of change? 2. What are the components of information flow in any system of operations? 3. State any four metrics and their benefits. 4. Explain the process of data acquisition. 5. What are the main utilities of an ERP package? 6. Explain utility of data management for BOM.
9.8 Answers
9.8.1 Answers to Self Assessment Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. High technology and extensive outsourcing Expecting, assuming, favouring Supply chain Supply chain standards, best , industry Fishbone Implemented, Relevancy, sufficiency and timeliness ERP packages. Quality False
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9.8.2 Answers to Terminal Questions 1. 2. 3. 4. 5. 6. Refer to section 9.3 Refer to section 9.3 Refer to section 9.5 Refer to section 9.4 Refer to section 9.4 Refer to section 9.5
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