Life Cycle Models for High-Technology Projects


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Life Cycle Models for High-Technology Projects

  1. 1. Life Cycle Models for High-Technology Projects Applying Systems Thinking to Managing Projects Russ Archibald, PMP, FPMI
  2. 2. Purpose of My Presentation <ul><li>To enhance your ability to: </li></ul><ul><ul><li>Develop the best life cycle model for your projects </li></ul></ul><ul><ul><li>Document your Project Life Cycle Management System/PLCMS </li></ul></ul><ul><ul><li>Improve your PLCMS through systems thinking </li></ul></ul>
  3. 3. Presentation Outline <ul><li>Categorizing Projects </li></ul><ul><li>Project Life Cycle Models & PLCMS </li></ul><ul><li>Hi-Tech Project Categories & Their Life Cycles </li></ul><ul><li>Improving the PLCMS </li></ul><ul><li>Conclusions </li></ul>
  4. 4. 1. Categorizing Projects <ul><li>Projects: </li></ul><ul><ul><li>Are the common denominator for all aspects of project management </li></ul></ul><ul><ul><li>Exist in many sizes & types </li></ul></ul><ul><ul><li>Produce many different products & results </li></ul></ul><ul><ul><li>Can be classified in many different ways </li></ul></ul>
  5. 5. Project Categories <ul><li>Why bother? Because: </li></ul><ul><ul><li>“One size does not fit all” </li></ul></ul><ul><ul><li>Life cycle models and processes good for one category are not good for others </li></ul></ul><ul><li>Recommended categories are based on project end results </li></ul>
  6. 6. Recommended Major Categories <ul><li>Aerospace/Defense </li></ul><ul><li>Business & Organizational Change Projects </li></ul><ul><li>Communication Systems Projects </li></ul><ul><li>Event Projects </li></ul><ul><li>Facilities Projects </li></ul><ul><li>Information Systems </li></ul><ul><li>International Development </li></ul><ul><li>Media & Entertainment </li></ul><ul><li>Product/Service Development </li></ul><ul><li>Research & Dev. </li></ul>
  7. 7. Other Major Categories May Be Required <ul><li>See Table 1 in the paper for detail </li></ul><ul><ul><li>Where to download: see later slide </li></ul></ul><ul><li>Further breakdown is obviously required </li></ul><ul><li>A few examples follow </li></ul>
  8. 8. Project Categories: Each having similar life cycle phases and a unique project management process   Examples 1. Aerospace/Defense Projects 1.1 Defense systems 1.2 Space 1.3 Military operations   New weapon system; major system upgrade. Satellite development/launch; space station mod. Task force invasion 2. Business & Organization Change Projects 2.1 Acquisition/Merger 2.2 Management process improvement 2.3 New business venture 2.4 Organization re-structuring 2.5 Legal proceeding   Acquire and integrate competing company. Major improvement in project management. Form and launch new company. Consolidate divisions and downsize company. Major litigation case. 3. Communication Systems Projects 3.1 Network communications systems 3.2 Switching communications systems   Microwave communications network. 3 rd generation wireless communication system. 4. Event Projects 4.1 International events 4.2 National events   2004 Summer Olympics; 2006 World Cup Match. 2005 U. S. Super Bowl; 2004 Political Conventions. 5. Facilities Projects 5.1 Facility decommissioning 5.2 Facility demolition 5.3 Facility maintenance and modification 5.4 Facility design/procurement/construction Civil, Energy, Environmental, High rise, Industrial, Commercial, Residential, Ships   Closure of nuclear power station. Demolition of high rise building. Process plant maintenance turnaround. Flood control dam; highway interchange. New gas-fired power generation plant; pipeline. Chemical waste cleanup. 40 story office building. New manufacturing plant. New shopping centerNew housing sub-division. New tanker, container, or passenger ship 6. Information Systems (Software) Projects New project management information system. (Information system hardware is considered to be in the product development category.) 7. International Development Projects 7.1 Agriculture/rural development, 7.2 Education, 7.3 Health, 7.4 Nutrition, 7.5 Population, 7.6 Small-scale enterprise 7.7 Infrastructure: energy, industrial, telecomm., transportation, urbanization, water supply and sewage, irrigation   People and process intensive projects in developing countries funded by The World Bank, regional development banks, US AID, UNIDO, other UN, and government agencies; and   Capital/civil works intensive projects— often somewhat different from 5. Facility Projects as they may include creating an organizational entity to operate the facility, 8. Media & Entertainment Projects 8.1 Motion picture 8.2 TV segment 8.2 Live play or music event   New motion picture (film or digital). New TV episode. New opera premiere. 9. Product and Service Development Projects 9.1 Information technology hardware 9.2 Industrial product/process 9.3 Consumer product/process 9.4 Pharmaceutical product/process 9.5 Service (financial, other)   New desk-top computer. New earth-moving machine. New automobile, new food product. New cholesterol-lowering drug. New life insurance/annuity offering. 10. Research and Development Projects 10.1 Environmental 10.2 Industrial 10.3 Economic development 10.4 Medical 10.5 Scientific   Measure changes in the ozone layer. How to reduce pollutant emission. Determine best crop for sub-Sahara Africa. Test new treatment for breast cancer. Determine the possibility of life on Mars. 11. Other Categories?  
  9. 9. Sub-Categories Are Required <ul><li>One example: </li></ul><ul><li>Business & Organization Change Projects: </li></ul><ul><ul><li>Acquisition/merger </li></ul></ul><ul><ul><li>Management process improvement </li></ul></ul><ul><ul><li>New business venture </li></ul></ul><ul><ul><li>Organization re-structuring </li></ul></ul><ul><ul><li>Legal proceeding </li></ul></ul><ul><ul><li>Other: ? </li></ul></ul>
  10. 10. Example: Category 5. Facilities Projects <ul><li>Subcategories: </li></ul><ul><li>Facility decommissioning </li></ul><ul><li>Facility demolition </li></ul><ul><li>Facility maintenance & modification </li></ul><ul><li>Facility design/procure/construct 1.Civil 2.Energy 3.Environmental 4.Industrial 5.Commercial 6.Residential 7.Ships 8.Other: </li></ul><ul><li>Other: ? </li></ul>
  11. 11. Categories Are Not Mutually Exclusive <ul><li>Programs and large projects usually involve more than one category or sub-category </li></ul><ul><li>These projects are placed in their predominate category </li></ul><ul><li>Must “Mega” projects be treated separately? Probably: yes </li></ul>
  12. 12. Classifying Within Categories & Sub-Categories <ul><li>Project size </li></ul><ul><li>Project complexity </li></ul><ul><li>External or internal customer </li></ul><ul><li>Degree of customer involvement </li></ul><ul><li>Levels of risk </li></ul>
  13. 13. Classifying Within Categories (Cont’d) <ul><li>Major & minor projects </li></ul><ul><li>Mega projects: not categorizable? </li></ul><ul><li>Stand-alone versus create supporting infrastructure </li></ul><ul><li>Standard versus transitional </li></ul><ul><li>Other: ? </li></ul>
  14. 14. Current Global Survey Will Test This Approach <ul><li>Global survey of project categories & life cycles in progress </li></ul><ul><li>Please go to: </li></ul><ul><li> </li></ul><ul><li>Download 11 page paper and complete the online survey prior to Nov. 15 </li></ul><ul><li>Results will be reported to respondents </li></ul>
  15. 15. 2. Project Life Cycle Models & PLC Management Systems <ul><li>Many life cycle models are in use </li></ul><ul><li>They portray a project as an overall process or system </li></ul><ul><li>Their purposes include: </li></ul><ul><ul><li>To enable all to understand overall process </li></ul></ul><ul><ul><li>To capture best experience, enable improvement </li></ul></ul><ul><ul><li>To relate roles, responsibilities, systems and tools to all elements of the project </li></ul></ul>
  16. 16. Generic Life Cycle: 4 Phases <ul><li>Concept </li></ul><ul><ul><li>Initiation, identification, selection </li></ul></ul><ul><li>Definition </li></ul><ul><ul><li>Feasibility, development, demonstration, design prototype, quantification </li></ul></ul><ul><li>Execution </li></ul><ul><ul><li>Implementation, realization, production & deployment, design/construct/commission, installation and test </li></ul></ul><ul><li>Closeout </li></ul>
  17. 17. Generic Life Cycles <ul><li>Apply to any project </li></ul><ul><li>Too broad to be very useful, practical </li></ul><ul><li>Need to be tailored to the project category… </li></ul><ul><ul><li>… And key environmental factors </li></ul></ul>
  18. 18. 3 Parameters to Work With: <ul><li>Number & definition of phases & sub-phases </li></ul><ul><li>Their inter-relationships: sequential, overlapping, repeated </li></ul><ul><li>Number, definition and placement of key decision points </li></ul>
  19. 19. Identify Deliverables: Each Phase and Sub-Phase <ul><li>Documents related to the project: </li></ul><ul><ul><li>Objectives, scope, plans, schedules, reports, authorizations, work orders, etc. </li></ul></ul><ul><li>Documents related to the product: </li></ul><ul><ul><li>Specs, drawings, product cost, reports, etc. </li></ul></ul><ul><li>Physical products or results: </li></ul><ul><ul><li>Mock-ups, models, prototypes, test articles, tooling, equipment, software, facilities, materials, etc. </li></ul></ul>
  20. 20. Defining Decision Points <ul><li>Key events/milestones – ‘gates’ – at start & end of a phase or sub-phase </li></ul><ul><li>Decisions typically authorize project manager & team to: </li></ul><ul><ul><li>Complete current phase, start next </li></ul></ul><ul><ul><li>Revise objectives, scope, schedule </li></ul></ul><ul><ul><li>Re-plan, re-start, repeat previous work </li></ul></ul><ul><ul><li>Terminate or put project on hold </li></ul></ul>
  21. 21. Deliverables & Decision Points <ul><li>Decisions are often made based on contents or results of key deliverables </li></ul><ul><li>Therefore these two elements are closely linked </li></ul><ul><li>You can’t make good decisions without adequate information </li></ul>
  22. 22. Documenting a Project Life Cycle Management Process <ul><li>Define the life cycle: </li></ul><ul><ul><li>Select the life cycle model to be used </li></ul></ul><ul><ul><li>Name phases, sub-phases decision points </li></ul></ul><ul><ul><li>Establish inter-relationships among them </li></ul></ul><ul><ul><li>Portray the result: flow chart, narrative </li></ul></ul><ul><li>Specify authorizing documents: </li></ul><ul><ul><li>Purpose & levels of approval authority </li></ul></ul><ul><ul><li>For initiation & major changes </li></ul></ul>
  23. 23. Documenting PLCMS (Cont’d) <ul><li>Identify key roles & define responsibilities </li></ul><ul><li>Identify major deliverables by phase </li></ul><ul><li>Specify issue escalation procedures </li></ul><ul><li>Specify differences for: </li></ul><ul><ul><li>Major vs minor projects, or </li></ul></ul><ul><ul><li>Other project classes within a sub-category </li></ul></ul>
  24. 24. 3. Hi-Tech Project Categories & Their Life Cycles <ul><li>4 (of 10) basic hi-tech categories: </li></ul><ul><ul><li>Communication Systems </li></ul></ul><ul><ul><li>Information Systems </li></ul></ul><ul><ul><li>Product & Service Development </li></ul></ul><ul><ul><li>Research & Development </li></ul></ul>
  25. 25. Hi-Tech in Other Categories <ul><li>Defense/Aerospace: </li></ul><ul><ul><li>Very advanced, specialized life cycles prescribed by DOD & NASA </li></ul></ul><ul><li>Facilities: </li></ul><ul><ul><li>Very mature, specialized life cycle models </li></ul></ul><ul><li>Hi-tech projects within programs in these and other categories can be placed in one of the preceding 4 hi-tech categories </li></ul>
  26. 26. Two Types of Hi-Tech Life Cycle Models <ul><li>Predictive: </li></ul><ul><ul><li>Waterfall, Prototyping, Rapid Application Development/RAD, Incremental Build, Spiral </li></ul></ul><ul><li>Adaptive: </li></ul><ul><ul><li>Adaptive Software Development/ASD, Extreme Programming/XP, SCRUM </li></ul></ul>
  27. 27. Predictive Life Cycle Models <ul><li>Waterfall </li></ul><ul><ul><li>Linear ordering phases, sequential or overlapping, no phase repeated </li></ul></ul><ul><li>Prototyping </li></ul><ul><ul><li>Functional requirements and physical design specs are generated simultaneously </li></ul></ul><ul><li>Rapid Application Development/RAD </li></ul><ul><ul><li>Based on an evolving prototype that is not thrown away </li></ul></ul>
  28. 28. Predictive LC Models (Cont’d) <ul><li>Incremental Build </li></ul><ul><ul><li>Decomposition of large development effort into a succession of smaller components </li></ul></ul><ul><li>Spiral </li></ul><ul><ul><li>Repetition of the same set of life-cycle phases such as plan, develop, build, and evaluate until development is complete </li></ul></ul>
  29. 29. Adaptive Life Cycle Models <ul><li>Adaptive Software Development/ASD: </li></ul><ul><ul><li>Mission driven, component based, iterative cycles, time boxed cycles, risk drive, change tolerant </li></ul></ul><ul><li>Extreme Programming/XP </li></ul><ul><ul><li>Teams of developers, managers, and users; programming done in pairs; iterative process; collective code ownership </li></ul></ul>
  30. 30. Adaptive LC Models (Cont’d) <ul><li>SCRUM (as in rugby) </li></ul><ul><ul><li>Similar to above adaptive models with iterations called “sprints” that typically last 30 days </li></ul></ul><ul><ul><li>Defined functionality to be met in each sprint </li></ul></ul><ul><ul><li>Active management role throughout </li></ul></ul>
  31. 31. XP Resources <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  32. 32. Impact of Environment on Life Cycle Model Selection <ul><li>Project environment is of primary importance in selecting a LC model for a given project category: </li></ul><ul><ul><li>Organizational characteristics </li></ul></ul><ul><ul><li>Familiarity with involved technology </li></ul></ul><ul><ul><li>Competitive demands (schedule, other) </li></ul></ul><ul><ul><li>Other </li></ul></ul>
  33. 33. 4. Improving the PLCMS <ul><li>Document the integrated project life cycle model </li></ul><ul><li>Document & describe the PLCMS </li></ul><ul><li>Re-engineer the integrated process </li></ul><ul><ul><li>Apply systems thinking: TOC </li></ul></ul><ul><li>Implement the improvements </li></ul><ul><li>Repeat these steps as required </li></ul>
  34. 34. Re-Engineer the PLCMS <ul><li>Identify system constraints, gaps & weaknesses </li></ul><ul><li>Relate poor results to constraints & benefits to their removal </li></ul><ul><li>Look for speed bumps, accelerators </li></ul><ul><li>Redesign the PLCMS to remove constraints </li></ul>
  35. 35. Implement Improvements <ul><li>Obtain approval to conduct tests and analyses </li></ul><ul><li>Plan, approve & execute the improvement project to implement the revised PLCMS </li></ul>
  36. 36. Seven Goals of the New Product Life Cycle Process <ul><li>Quality of execution </li></ul><ul><li>Sharper focus, better project prioritization </li></ul><ul><li>Strong market orientation </li></ul><ul><li>Sharp, early product identification </li></ul><ul><li>True cross-functional team approach </li></ul><ul><li>Products with competitive advantage </li></ul><ul><li>Fast-paved & flexible process </li></ul><ul><li>Source: Cooper et al 2001 </li></ul><ul><li>see </li></ul>
  37. 37. Stage-Gate TM Life Cycle Process Source: Cooper et al 2001 see
  38. 38. Apply Theory of Constraints/TOC (Source: Leach 2000) <ul><li>Identify system constraints </li></ul><ul><li>Decide how to exploit system constraints </li></ul><ul><li>Subordinate all else to above decision </li></ul><ul><li>Elevate the system constraints </li></ul><ul><li>Does the new constraint limit output? </li></ul><ul><li>Yes: Back to step 1 No: Beware inertia </li></ul>
  39. 39. 5. Conclusions <ul><li>Project categories are important: </li></ul><ul><ul><li>Based on end results best way (?) </li></ul></ul><ul><ul><li>Sub-categories also needed </li></ul></ul><ul><ul><li>Further classification within categories and sub-categories needed </li></ul></ul>
  40. 40. 5. Conclusions (Cont’d) <ul><li>Project life cycle models must be designed for each category/sub-category </li></ul><ul><ul><li>Define and inter-relate phases & sub-phases </li></ul></ul><ul><ul><li>Identify deliverables for each of these </li></ul></ul><ul><ul><li>Define & relate decision points </li></ul></ul>
  41. 41. 5. Conclusions (Cont’d) <ul><li>Project Life Cycle Management System PLCMS must be well defined: </li></ul><ul><ul><li>For each project category/sub-category </li></ul></ul><ul><ul><li>Enables application of systems thinking to improve the process </li></ul></ul>
  42. 42. 5. Conclusions (Cont’d) <ul><li>Two types of life cycle models are used for high-technology projects: </li></ul><ul><ul><li>Predictive </li></ul></ul><ul><ul><li>Adaptive </li></ul></ul><ul><ul><li>With several variations within each of these </li></ul></ul><ul><ul><li>Selection depends on the key environmental factors affecting the project </li></ul></ul>
  43. 43. 5. Conclusions (Cont’d) <ul><li>Systematic improvement of PLCMS is achieved through: </li></ul><ul><ul><li>Re-engineering the total system </li></ul></ul><ul><ul><li>Application of TOC to total PLCMS or to a given phase </li></ul></ul><ul><li>Such improvement must be a major project management goal in every organization </li></ul>
  44. 44. Further Reading <ul><li>Archibald: Managing High-Technology Programs and Projects, 3 rd ed 2003 </li></ul><ul><ul><li>Chapters 2 and 3 </li></ul></ul><ul><li>Download this paper </li></ul><ul><li>18 additional references given in the paper </li></ul>
  45. 45. Thanks for Listening!! <ul><li>Questions? </li></ul><ul><li>Rebuttals? </li></ul><ul><li>Download this paper and/or slides at </li></ul><ul><li> </li></ul><ul><li>go to ‘Author:Recent Papers’ & </li></ul><ul><li>select title of paper </li></ul><ul><li>Contact me: </li></ul>
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