Project Management Problems in Manufacturing Industries & Project Manager’s Pain – A real One!! Neelam Pandey, PMP® , MNAL 21 Nov 2010
What do ALL projects have in common? ?
They produce specific products or “deliverables” (SCOPE)
They have defined start and end dates (SCHEDULE)
They consume certain resources; dollars, labor, equipment, material (COST)
They have customers who have specific quality requirements and expectations for the product (QUALITY)
What do ALL projects have in common?
How Complex is the PM role ? ?
PM Managing with Project works PM responsible for Project Deliverable - a complex and demanding responsibility working along with team, balancing the conflicting resources within projects , meeting project deadlines and preventing cost overruns .
Challenges for PM in Manufacturing Industries
Manufacturing Industries in India has developed more robust “Product Development System ” but lesser has been done to improve “ PM” as function
PM Function is still in process of gathering Maturity
Challenges for PM in Manufacturing Industries …
Unclear roles and responsibility
Responsibility without authority
Become mere central coordinating rather than leading the team with Vision
Not involved in the decision made by senior, and told for execution directly
All this results in ………. PM Frustration - resulting into Project Failures ……schedule delays & cost overrun
Insight into 13,522 projects across a
34% of all projects succeed vs. 15% that fail
51% of all projects are challenged
43% of projects experienced overrun costs
82% of projects experience time overruns
52% of required features and functions in a project never made it to the release of the product
Source: 2003 Chaos Study by the Standish Group Statistics of Project issues……….
With that in mind… What are some of the Project Management Problem -resulting into projects succeed or fail? ?
Did the Product meet its intended purpose ?
Is the Product operating in accordance with its “ current expectations”
Is the Product “ maintainable ”?
Was the product delivered “ on time ”
Was the product delivered “ within budget ”
Were all of the critical stakeholders kept informed ?
Was the customer happy with the product ?
Did you define what “ happy ” was?
Projects Succeed or Fail Based on the following:
Major Causes of Failures Source :Bull survey conducted, 2007
Lack of Clarity in the Project Scope 1
“ I'd like to set of stairs that leads up to a bridge” Causes - Lack of Clarity in the Project Scope
What customer wants was not clearly documented
What You believe Customer wants is different than what customer believed have asked for
No sign off on requirement document
Result of – Unclear Scope – a Troubled project!!
Cost of scope changes Relative cost of defect repair at different phases of project Cost of Scope changes………
Way ahead for … Lack of Clarity in the Project Scope
Document exactly what the Customer Wants .
Communicate Team of the Project Scope.
Document Business, functional and technical requirements
Have the stakeholders agree to and sign off the requirement documents.
Lack of PM Skills In other words when your Projects :
Does not finish on time
Out of control
Deal with unrealistic expectation of customer
Lack of PM Skills – The Problem I think I know how this helmet goes on. I've been riding scooters for two years now Hurry…..we have a tight deadline. No time to plan, just digging.
Project Manager : “Circle of Life” Good project managers need to not only KNOW these skills but be able to APPLY them. People Skills Tool and Technique Skills Process Skills Application Skills: To Specific Project
Way ahead for ……. Lack of PM Skills
Train all level of staff
Training design , coordination for PM through PMO
Implement In-house training for practical project
Developing Tools , templates and methodology and apply them on project
This will results into………………. Well prepared and informed PM’s ………
Poor Communication In other words when in your Projects :
Misunderstanding other stakeholders' information needs
Team members do not have the information they need it, causing delay
Issues or changes do not get escalated
Effect of –Poor Communication
Way ahead for… Poor Communication
Develop a complete communication Matrix :
-Who need the info
-What do they need
-What level of detail
-How do they want it
-When and how often do they need
-How should it be delivered, and by whom
It must be updated and communicated to all required stakeholder timely
Shifting Organizational Priorities also called as “ Strategically-Driven Scope Creep” 4
Causes -Shifting Organizational Priorities
Changing Nature of Organization
Changes in Top Management
Even Without the influence of changes, management may take its own course
Way ahead for … Shifting Organizational Priorities
Follow the Change management process
Inform the Team – Do not attempt –Anti management Attitude….
Concentrate on executing Changes ……
Revise the project – Schedule, Budget, and Plan
If Project is cancelled- complete a close out evaluation report
Poor Risk Management
In other words
Unexpected events cause delays
Domino effect of things going wrong
Sorry about the project , I left it in my car this morning and there was a bit of an incident. Poor Risk Management - Causes
No formal risk management
Just try to predict the big things that can go wrong
It’s the sum of all the little things that make projects late
Way ahead for….Poor Risk Management
List all the work
Figure out what can go wrong with each piece of work
Priorities each risk – High /medium / Low in term of Impact , detection & occurrence
Sort the list
Create the plan to deal with risk at the top
Monitor and track it frequently
In all – do a Good Risk Planning
…… and Analysis
Case study Columbia Shuttle & Lesson Learnt
Lesson Learnt Case study : Columbia Shuttle
All 7 astronauts are killed
$4 billion spacecraft is destroyed
Debris scattered over 2000 sq-miles of Texas
NASA grounds shuttle fleet for 2-1/2 years
Space shuttle Columbia, re-entering Earth’s atmosphere at 10,000 mph, disintegrates FEB 1, 2003 8:59 EST
A Flawed Decision Process
Foam strike detected in launch videos on Day 2
Engineers requested inspection by crew or remote photo imagery to check for damage
No actions were taken to confirm shuttle integrity or prepare contingency plans
Columbia- The Organizational Causes
“ In our view, the NASA organizational culture had as much to do with this accident as the foam.”
CAIB Report, Vol. 1, p. 97
NASA had received painful lessons about its culture from the Challenger incident
CAIB found disturbing parallels remaining at the time of the Columbia incident… these are the topic of this presentation
Columbia – Lesson’s Learnt
Recency Effect - With little corroboration, management had become convinced that a foam strike was not, and could not be, a concern and relying on the recent information , as that has broken away on previous flights also & caused no harm.
Conservatism - Where new information is ignored or given little weight age, they have ignored the data that foam had broken on every launch, were failed to revise their belief that system was operating properly.
Overconfidence - Management was confident that their was no safety issues and decision was made against Satellite imagery.
Better , Faster and Cheaper – schedules and budget dominates engineering problem, because of shift of “organizational Culture ”
To Conclude…….To reduce PM’s Pain in Manufacturing sectors ……
Clarity of roles and responsibility for PM
Strengthening of PM function
Better Risk Planning
Focusing on each Projects Challenges and learning
Systematic Product Development system
Train the PM , Team member , Sponsor to increase likelihood that project survive shifting organizational priorities