Your Portfolio Management Process is Broken
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Your Portfolio Management Process is Broken
- 1. Your PPM Process is Broken: The Fatal Flaw in Measuring Engineering Progress Chad Jackson Founder and President
- 2. Engineering‟s Interests in PPM • Engineering organizations are more resource constrained than every before • Affects organizational performance but also individual‟s quality of life • PPM offers a means to „right size‟ the amount and scope of development projects engineering-matters.com… published by… Slide #2
- 3. Recent Research Confirms engineering-matters.com… published by… Slide #3
- 4. Recent Research Confirms engineering-matters.com… published by… Slide #4
- 5. Two Project Sets to Assess in PPM • A key concept is the assessment of new and ongoing projects against objective criteria • Compare and contrast new and ongoing projects against each other • Ongoing projects may be killed in an effort to reapply resources Slide #5 engineering-matters.com… published by… There is something wrong with how progress in engineering development projects is assessed today
- 6. A Quick Story to Illustrate… Slide #6engineering-matters.com… published by… The visual fidelity of models and simulation can provide a false sense of progress in engineering projects.
- 7. Two Sets of Development Activities Engineering a Product • Activities to explore iterations that impact a product‟s form, fit and function • The purpose is to gain enough understand of the trade-offs in these options to make design decisions Documenting a Product • Activities to create the deliverables unambiguously define the product • The purpose is to provide a definition to downstream roles such that they can manufacture the product Slide #7engineering-matters.com… published by… “There are roughly over 20,000 decisions we have to make before we reach production with a new car program” General Motors via Chuck Grindstaff Siemens PLM Connections Event, Las Vegas NV, May 2nd 2011
- 8. Lean Principles Applied to Design • Set Based Design – Don‟t commit to one design choice until you must – Mature both options as long as possible while you learn and gain knowledge – Only make the decision at the last second when you have as much knowledge as possible 8/22/201 3 Slide #8engineering-matters.com… published by…
- 9. Two Competing Projects • Project #1 – Exploring 13 iterations – Conducted 15 simulations – Performed 20 tests – Completed 20% of design decisions – Completed 17% of 3D models – Completed 15% of engineering drawings • Project #2 – Exploring 2 iterations – Conducted 3 simulations – Performed 1 tests – Completed 65% of design decisions – Completed 75% of 3D models – Completed 55% of engineering drawings 8/22/201 3 engineering-matters.com… published by… Slide #9
- 10. What to Do? Leverage the V Model 8/22/201 3 engineering-matters.com… published by… Slide #10 Instrument left side of the v-model with metrics that measure not only deliverable based progress but also knowledge attainment, decision completion and decision confidence. Instrument right side of the v-model with metrics that measure verification and validation of the decisions made on the left side of the v-model.
- 11. Summary and Takeaways • Deliverable progression is a flawed approach to measuring engineering progress • Instrument the left side of your engineering v model with metrics that track knowledge attainment, decision completion and decision confidence • Instrument the right side of your engineering v model with verification and validation metrics in terms of tests completion and test confidence 8/22/201 3 Slide #11engineering-matters.com… published by…
Editor's Notes
- Briefly revisit my presentation of last year. Due to the resource constrained reality of the recession, engineering is the organization with the most to gain from a PPM strategy. Take one minute to highlight the top points.
- Briefly revisit my presentation of last year. Due to the resource constrained reality of the recession, engineering is the organization with the most to gain from a PPM strategy. Take one minute to highlight the top points.
- Briefly revisit my presentation of last year. Due to the resource constrained reality of the recession, engineering is the organization with the most to gain from a PPM strategy. Take one minute to highlight the top points.
- Then discuss one of the major tenets of a successful PPM strategy: the ability to assess the health of ongoing projects and compare them to potential new projects as a means to figure out how best to utilize your engineering resources. Introduce the idea that when it comes to engineering projects, there's a major disconnect in how you measure health.
- Transition into the story about my visit to NASA Glenn (outside Cleveland) about ten years ago. Describe the 'process audit' I was conducting. Describe how the 'dam finally broke' and the NASA engineer vented his frustrations. A major point, one that has been rattling around in my head the last few years, is the false confidence project managers gain by seeing more completed 3D models on the screen during meetings. What exactly did he mean by that?
- Explain with a little more granularity the difference between designing products and documenting products (see detailed blog post here: http://www.engineering-matters.com/2010/11/distinction-between-designing-and-documenting-products/). Go on to talk about how designing a product is very similar to a knowledge journey. One where you are gaining information until finally you make a decision with confidence.
- Exacerbating this problem is the proliferation of lean principles into engineering. Specifically, a design philosophy called set-based design is becoming increasingly popular. It's main tenet, which is based on lean principles, is you wait until the last second possible to make a design decision because you will have a higher likelihood to have gained more knowledge in that engineering project and, as a result, you will be more likely to make a better design decision. Add in references to books on this topic.
- Ultimately, the problem is this: most measures of engineering project health are based on how far the documentation of the product has progressed instead of how much engineering knowledge has been gained to make product design decisions. Talk through an example of two engineering projects, one with many more simulations, tests and experimentation but not as much completed documentation compared to an engineering project with practically no knowledge gained but the documentation is ahead of schedule. As a result, many organizations are killing projects that are far more mature in terms of knowledge and decision making than they realize.
- So what can you do about it? The solution is relatively simple. The measurement of health for engineering projects should not purely be documentation based. There needs to be some measure of progress in terms of engineering knowledge, decision making and validation. And in fact, there's a longstanding model that represents this maturity. It's the engineering V model (http://en.wikipedia.org/wiki/V-Model). Cite wikipedia for more information. Describe design decisions as you come down the left side of the V. Describe how you validate those decisions as you come up the right side of the V. The V model has nothing to do with documentation. It's all about the design decisions that are made and how you validate them.
- Come back and summarize the major points and three takeaways for the presentation.