Goal: Goal: Customer Satisfaction
Objective : Objective : Meeting commitments on cost, schedule, quality
Milestones : Milestones : better control through change control, CM, monitoring etc. better predictability leading to commitments that can be met. lower cost through reduced rework, better resource management, better planning improved quality through proper quality planning and control better handling of risks reducing the chances of failure
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Two Dimensional Approach
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Small Projects
Large Projects
formalinformal
informal
formal
Execution
Pro
ject
M
anag
emen
t
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OrganizationProject planChange management
ResourcesPeople managementTeam managementCost Management
Project VariablesQuality managementScope managementRisk Management
Communication Project kick offStatus reportingcommunication Management
Project Governance
Project Governance Model
Project Management Process
planning, monitoring and control, and closureplanning, monitoring and control, and closure before the main execution life cycle (LC) and closure after the LC monitoring phase is in parallel with LC
Project Planning : Project Planning : defining suitable processes for executing the project estimating effort defining project milestones and create a schedule defining quality objectives and a quality plan identifying risks and make plans to mitigate them defining measurement plan, project-tracking procedures, training plan, team organization, etc
Process Planning : Process Planning : process to be followed process will decide the tasks, their ordering, milestones plan for LC as supporting process
Life Cycle Process: Life Cycle Process: NRE ,OJT, First Article
o adding, deleting, modifying some process stepso fine-tuning to suit the project needs
Project Scheduling and Resource
Overall schedule and detailed scheduleOverall schedule and detailed schedule
Overall schedule - major milestones and final date Detailed schedule - assignment of lowest level tasks to resources
Schedule and resource mappingSchedule and resource mappingo the nominal delivery time for the scheduleo actual delivery time desiredo project effort as a function of project delivery time o efforts calculation in man hour o with effort and overall schedule decided, average project resources are fixedo manpower ramp-up in a project for deciding the milestones
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consistent with milestones identifying lowest level tasks those can be done in less than 2-3 days deciding the tasks, assigning them while preserving high-level schedule modifying if cannot “fit” all tasks, must revisit high level schedule Identifying each task by name, date, duration, resource assigned
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Detailed Scheduling
Manpower distribution – PM approach
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Test Plan Build
Quality PlanningDefect Injection and RemovalDefect Injection and Removalharness assembly is a labor intensive jobdefects are injected at any stageas quality goal is low delivered defect density, these defects are removeddone primarily by quality control (QC) activities of reviews and testing
Procedural approachProcedural approachquality plan defines what QC tasks will be undertaken main QC tasks - reviews and testingguidelines and procedures for reviews and testing adherence to the plan and procedures ensured
Quality PlanQuality Plandrives the quality activities in the projectlevel of plan based on job criticalitydefined QC tasks that have to be performed specify defect levels for each QC tasksMeasurement of defect injection and removal rates, defect removal efficiency (DRE)
Risk Management Tasks
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Risk Identification
Risk Management
Risk Assessment
Risk Control
Risk Analysis
Risk Prioritization
Risk Management Planning
Risk Resolution
Risk Monitoring
Risk Identification, Analysis and Prioritization
“what ifs”, checklists, past experience list of “top 10” risks similar projects have seen in past
o shortage of technically trained manpowero too many requirement changeso unclear requirementso not meeting performance requirementso unrealistic scheduleso insufficient business knowledgeo working on new technology
Risk Exposure (RE) = probability of risk occurring * risk impacto RE considered as expected value of loss for a risko Prioritization done based on risk exposure value
Plans are made to handle high RE risks REs revisited periodically
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Tracking Activity level monitoringActivity level monitoring Each activity in detailed schedule is getting done daily review
Status reportsStatus reports weekly to take stock Summary of activities completed, pending Issues to be resolved
Milestone analysisMilestone analysis A bigger review at milestones Actual vs estimated for effort and sched is done Risks are revisited Changes to product and their impact may be analyzedCost-schedule milestone graph is another way of doing this
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Prioritization
Review
& A
pproval
PMO
Monitoring
Demand Demand ManagementManagement
Charter development, resource requirements and Business Case
Project Project ManagementManagement
Plan, collaborate and deliver
Resource Resource ManagementManagement
Capacity estimate, resource assignments and utilization monitoring
Financial Financial ManagementManagement Labour and non-labour spend
Strategic plan for the project
Team structure
Customer
Project Manager
Project Coordinator
Material Planning Rep
Product Engineering
RepProduction Team Lead QA Team Lead
Goal: Goal: Global Optimization and managing uncertainty
Objective : Objective : supply in the right quantities at right time minimize total system cost satisfy customer service requirements
Milestones : Milestones : Purchasing - Supplier alliances, supplier management, strategic sourcing Operations - Demand management, TQM Distribution - Transportation management, customer relationship management,
logistics Integration - Coordination/Integration activities, global sourcing problems,
performance measurement
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Supply Chain Organization in Sasmos
Supply Chain Manager
Procurement Logistics SCM admin
• KAP identification• Volume driven• Audit• Spend areas-future• Critical components
• Strategies• Efficiencies• Process review• Demand &
forecasting
• Warehousing• Inventory• Transportation
• Release orders• Spot orders• Non-repetitive orders• Non critical
components
Strategic Sourcing Tactical
Contract Management
Project Manger
Is viewed as Is viewed as effective, relevant, valued ,part of the Management Team
KAP = Key Alliance Partners
PurchasingPurchasing
Receiving Storage Operations Storage
ProductionProduction SupplySupply
Sourcing Procuring
short lead time
long lead time
predictable unpredictable
plan and optimize
quick responseplan and replenishment
postponement strategy
supp
ly
demand
Res
pons
ive
Sup
ply
Cha
in
Certain Demand
Res
pons
ive
ness
S
pect
rum
Effi
cien
t
S
uppl
y C
hain
Implied uncertainty Spectrum
Uncertain Demand
Zone of
Strategic F
it
PurchaseCost
Demand Drivers
Specifications Standardization
Inventory PracticesWarehousing Costs
Maintenance Expense
Quality Costs
Procurement Practices
Warranty Terms
Freight
Volume
Perceived cost
Actual cost
Sasmos Trends:Sasmos Trends:
long term relationships improve performance through determining supplier capabilities self or internal certification to assure product quality and service
requirements strategic partnerships- successful and trusting relationships with
top-performing suppliers
Quick wins as well as longer-term opportunities that could form the basis of a structured plan of activities over the coming years to deliver the benefits.
considering the development of detailed category strategies looking at the best geographic location for sourcing looking across the full range of procurement levers all of which help manage and reduce cost but also lead to reduced supply chain risk, such as
o strategic sourcingo cost modelling o inflation managemento Dollar fluctuation o fixed rate contract with partners
Reducing Supply Chain CostsReducing Supply Chain Costs Reduced purchasing costs Reducing waste Reducing excess inventory, and Reducing non-value added activities
Continuous Improvement Continuous Improvement Benchmarking- improve over competitors’ performance Trial & error Increased knowledge of supply chain processes
Cost Reduction –Current Practice
Demand management - matching demand to available capacity Linking suppliers via MRP and ERP systems Use JIT to improve the pull of materials to reduce inventory levels Employ TQM to improve quality compliance among suppliers Use TCO as a tool
Cost Reduction –Plan
• Performance measurement• Framework for cost analysis• Benchmarking performance• More informed decision making• Communication of cost issues internally and with suppliers• Cross-functional interaction• Better insight/understanding of cost drivers• Outsourcing analysis• Continuous improvement• Cost savings opportunities• Focus on high potential opportunities
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Total cost ownership(TCO) Analysis
Total cost ownership(TCO) decisions
• low-cost commodity items• large purchases of items in competitive markets• large purchases from important suppliers• large dollar volume infrequent purchase• Procurements with significant unrecognized transaction costs • transactions costs, via negotiation, changing suppliers, and/or improving internal operations• cross-functional involvement in understanding item or service cost structure• capital purchases