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OPM3 Model Helps Organizations Improve Project Management Maturity
- 1. Organizational Project Management Maturity Model (OPM3) Dr. Khaled Bubshait
- 2. Dr. Khaled Ahmed Bubshait Khaled Bubshait is a Professor of project/operations Management at King Fahd University of Petroleum and Minerals. He was the former Director of the Economic and Management Center at the Research Institute at KFUPM, Dhahran, Saudi Arabia. He received his undergraduate degree B.S in applied Civil Engineering (1976) , his MBA from KFUPM(1978), and his PhD from Georgia State University, USA (1984). He published several articles in the area of project Management, operations Management, Total Quality Management, Business Incubator and SME Strategies . Also he led the project team for establishing a National Training Plan for the Kingdom of Saudi Arabia. He is also in the Editorial Board of the Business Process Reengineering & Management Journal and the Benchmarking Journal. And Dr. Bubshait was the former president pf the American Cost Engineer Arabian Gulf Section Tel . 055842500
- 3. PRESENTATION OUTLINES The philosophy of Project Management Reasons For project Failure OPM3 Definition Implementation Process Benefits Source
- 4. The philosophy of Project Management
- 7. PROPOSAL PLAN CONTROL ANALYSIS DECISION PROJECT MANAGEMENT CYCLE
- 8. Time Data Cost Data Performance Data Procurement Data Owner special Data Brainstorming Process Company Needs Market Research. Feasibility Study Change of Objectives New Product Development Proposal Development Conceptual Estimate Paper Design basis Paper Full Proposal Proposal Project Plan Project Control Analysis Corrective Actions Commissioning Project Meeting Project Status Report Progress Measure Procurement Contractual Conditions Contractor Productivity Procurement Deadlines Manpower Loading Claim Request Change Orders Additional Time/Cost Analysis Project Management Systems
- 9. More than $250 billion is spent each year in the United States on IT application development of approximately 175,000 projects. 31.1% of projects will be canceled before they ever get completed. Practices
- 10. 52.7% of projects will cost 189% of their original estimates. Lost opportunity costs are not measurable, but could easily be in the trillions of dollars.
- 11. • 69% of organizations have no formal organizational definition of project management roles and responsibilities • 62% of project resources are allocated to projects on a part-time or informal basis
- 12. • 81% of resource assignments occur with no formal coordination or organizational management • 64.5% of project managers have little or no formal training in project management or resources allocation.
- 13. • Most people working as project managers today didn't set out as such as their career path. In point of fact, for many project managers it still isn't their career path. • Many still have full-time jobs and functional responsibilities, and the task of keeping one--or several--projects in line is just one of many balls they juggle as they navigate their day.
- 14. The Top 10 Reasons Projects Fail (1) • Inadequately trained and/or inexperienced project managers; • Failure to set and manage expectations; • Poor leadership at any and all levels; • Failure to adequately identify, document and track requirements; • Poor plans and planning processes;
- 15. • Poor effort estimation; • Cultural and ethical misalignment; • Inadequate or misused methods; and • Inadequate communication, including progress tracking and reporting; • Misalignment between the project team and the business or other organization it serves. The Top 10 Reasons Projects Fail (2)
- 16. What Does it Take? • Project integration management; • Project scope management; • Project time management; • Project cost management; • Project quality management; • Project human resource management; • Project communications management; • Project risk management; and • Project procurement management.
- 17. TOP MANAGEMENT ENG. UTILITIES OPERATIONS MANAGEMENT M I D D L E MANAGEMENT
- 18. Misalignment between the project team and the business or other organization it serves
- 19. Since 1998, hundreds of professionals have contributed to the development of a new PMI standard called “OPM3” that will help organizations address these issues.
- 20. WHAT IS OPM3? OPM3 is an acronym for the Organizational Project Management Maturity Model a standard developed under the stewardship of the Project Management Institute.
- 21. The purpose of this standard is to provide a way for organizations to understand organizational project management and to measure their maturity against a comprehensive and broad-based set of organizational project management Best Practices. OPM3 also helps organizations wishing to increase their organizational project management maturity to plan for improvement.
- 22. Organizational Maturity Levels Level 5 – Optimizing Processes and performance continually improved through quantitative measures and analysis. (leader) Level 4 – Quantitatively Managed Product quality and process performance are quantitatively measured. A repository of measures exists to support fact- based decision-making.( Lesson learned) Saudi Aramco Level 3 – Defined Processes are defined, understood, and consistently applied from an organizational perspective. Processes are proactively managed and improved. Level 2 – Managed Repeatable processes are practiced on a project level. Process discipline is maintained through times of stress. Visibility to Status and delivery of work products at defined intervals. Level 1 - Initial Processes are ad hoc. Results are unpredictable. Success is dependent on heroics of the project team.
- 23. OPM3 WHAT FOR? PMI’s Organizational Project Management Maturity Model or OPM3 is designed to guide organizations in the development of the Capabilities necessary to achieve Best Practices in Organizational Project Management (OPM). OPM combines portfolio, program, and project management to achieve the goals/strategies of an organization through projects.
- 24. OPM3 SPECIFICALLY ADDRESSES THE FOLLOWING 10 AREAS: 1. Standardization and Integration of Processes 2. Utilization of Performance Metrics 3. Commitment to the Project Management Process 4. Alignment and Prioritization of Projects 5. Implementation of Continuous Improvement Processes 6. Using Success Criteria for results analysis 7. Understanding People and Competence 8. Allocation of Resources to Projects 9. Organizational Fitness 10. Teamwork.
- 25. HOW DOES OPM3 WORKS? There are three basic elements to applying OPM3 in an organization: •Knowledge •Assessment •Improvement .
- 26. HOW DOES OPM3 WORKS? There are three basic elements to applying OPM3 in an organization: Knowledge OPM3 is the first iteration of a body of knowledge on the subject of organizational project management and a subset of the larger project Management Body of Knowledge (PMBOK). Because this standards will form the basis of an organization's maturity assessment, familiarity with the contents of the standard is essential.
- 27. Assessment. In Assessment, the organization uses an assessment tool to determine areas of strength and weakness in relation to the body of best practices. This assessment process will help the organization decide which Best Practices or groups of Best Practices to investigate further, either to confirm competency in an area or to identify constituent Capabilities of one or more Best Practices that need attention. OPM3 outlines how to conduct this detailed investigation in the most helpful way for the organization, through the use of the Directories.
- 28. . Improvement The results of the Assessment will include a list of capabilities not yet fully developed in the organization. OPM3 provides guidance in placing these in order of importance, and this sequence forms the basis for any subsequent plans for improvement. The actual process of implementing improvements in an organization, which may involve organizational development, change management, restructuring, retaining, and other initiatives, is beyond the scope of this standard.
- 29. Requirements input Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy Tools & Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT Output Procurement Management Plan Procurement Planning
- 30. Quality Planning Requirements Quality Assurance Requirements Quality Control Requirements input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Quality Management Plan Operational Definition Check list Tools & Techn iques Benchmarking Flowcharting Cost of quality Project Schedule Check list Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Pareto Diagram Trend analysis Outp ut Quality Management Plan Operational Definition Check list Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment Quality Planning
- 35. Requirements input RFI RFP Evaluation Criteria Organizational Policy Tools & Techniques Contract Negotiation Audit Output Contract File Contract MIS Source Selection
- 36. Requirements input Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy Tools & Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT Output Procurement Management Plan Procurement Planning
- 37. Quality Planning Requirements Quality Assurance Requirements Quality Control Requirements input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Quality Management Plan Operational Definition Check list Tools & Techn iques Benchmarking Flowcharting Cost of quality Project Schedule Check list Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Pareto Diagram Trend analysis Outp ut Quality Management Plan Operational Definition Check list Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment Quality Planning
- 38. OPM3 Benefits • Help organizations understand current project management, program management and portfolio management. • Enable executives to assess their own organization or partner’s ability to achieve strategic priorities through projects. • Identify areas for improvement and ways to make coordinated improvements by increments. • Help all level of management understand how to create an environment for successful project activity.
- 39. • Help those responsible for project management, identify drivers of project results and set standards for excellence. • Enable organizations to achieve consistent implementation of project management work methods through standardization and institutionalization. • Demonstrate relationships between executive functions and project management functions. • Explain how to make project management measurable within an organization.
- 40. • Rally an organization or its partners to focus on project management improvements. • Facilitate organizational change associated with developing projects, program, and portfolio management functions. • Develop consistency and predictability in project delivery. • Distinguish your own organization from competitors.