Project Management in Global Offshore Rd Environment

8/8/2019 Project Management in Global Offshore Rd Environment

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2006 Management Meeting

PROJECT MANAGEMENT IN GLOBAL & OFFSHORE R&D ENVIRONMENT:ISSUES AND EVOLUTION OF PROCESS

Narendra Pratap [email protected]


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About The Topic

Offshoring of product design, development, engineering and research

is fairly new global phenomenon. Workflow at R&D center entailscomplexities in terms of varying size of work packets, work content,clarity level, type of work, control level etc.This is an effort to provide a practitioner's perspective about evolutionof project management system & process at an offshore R&D andengineering center

StructurePhenomenon of offshoring

Categorization of workflow

Project performance of offshore center

Project Management Practices at the offshore R&D center

Planning, Time, Communication, Cost, Quality, HR, Portfolio

System requirement, PMO and Future predictions


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Product of Flat World

Driven by organizational growthoriented forcesMarket expansion

Selling

Product customization & modificationfor local needsManufacturing localization for costcuttingLocal engineering supportEngineering support to other businessunits engineering teams

Success of engineering & design teams

Created confidence about skills

External Drivers like corecompetency, cost competitionIT outsourcingBP outsourcing

KP outsourcingEngineering Services

OutsourcingOffshoring

Success & cost saving by IT, BPO & KPO C

reated environment

Phenomenon of globalization of Business is taken as Flattening of World

Two forces, one from inside organization and another from external environmentshaped offshoring of design, engineering and R&D

Currently 500 offshore Engineering and R&D centers working in India

No. growing @ 23% CAGR*


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Workflow Projectizing it


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Issue of Performance Parameters

Traditional benchmarks for project performance parameterTime and schedule efficiency

Cost and financial efficiencyResource utilization efficiency

Deliverables quality as per predefined known acceptability parameters

Performance benchmark for Innovation centers sponsorBusiness value of output

Cost saving by offshoring

New initiativesIntellectual property creation

Best utilization of all type of resources proper administration

Corporate measures the project output of their offshore center, differently from the

existing project performance parameters


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TRIZ Framework for Project Categorization

TRIZ provides tools and methods for use in problem formulation,system analysis, failure analysis, and patterns of system evolution(both 'as-is' and 'could be').


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Project Mgmt. Practices Project Planning

General Issues

Away from market,customer &manufacturing

Multiple locations /multiple systems

Scoping

OwnershipEnd to end project foroffshore center

Specs. by sponsor,detailing and execution atoffshore

Work details fromsponsor, to do task atoffshore

Interventions

Resolution

Process for project initiation andauthorization

One innovation, product developmentprocess

Collaborative planning

ScopingMajor role for sponsor

Offshore center should try to fill open spacein scope, proactively

Clear-cut work breakdown

Clarity on ownership of WBSTime line, milestones & deliverablesdefinition mutually agreed

Approval on all aspects


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Project Mgmt. Practices Time Mgmt.

Vis--vis onsite,

offshore workingadds extra hours

Requirementunderstanding

Communication

Data managementReviews,approvals andreports

At least twolayers of project

managementTime efficiencybecomes veryimportant

Resolution

Invest time in requirement understanding

Setting expectation

Fully aligned team for each location/program

Integrated project plan for both offshore andsponsor

Time and task tracking system

Fill gap projects and competency building foreffective resource utilization

Under a project

Develop schedule for WBS

Extra care for the scheduling of shared domainexperts

Resource leveling as per project priority


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Project Mgmt. Practices Communication Mgmt.

Considered important for

project successChallenge in offshoreenvironment

Cultural aspects

Distance and sense of itPeople handlingcommunication hard coredomain expert

Communicated things get

lost in the haze of time

Provide required infrastructure

Mail/tele/video con, recording,session sharing tools

Policy matter on communicationCalendar for real-timecommunication

On-site visits at regular intervals

Communication RecordImportant with PDLC

Unified system for communication

archiving


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Project Mgmt. Practices Cost Mgmt.

Cost headsCost of humanresources hrs.

All project expenses

Common expenses

Capital expenditure

Common

Facilities (e.g. RP

Machines)

Time management systemAverage cost of hours from cost of human resource

Project management system based expense

trackerInputs from financial operation

Well defined financial process and tracker

Organizational policy for common expense loading

Depreciation loading for common capex. directly relatedto hours of project e.g.= (hrs. on project x/ total

hrs)*(total depreciation)Tracker for the usage of special facilities

Load the cost to projects

Cost saving first reason of offshoring

Cost of project directly loaded to the cost of product, research program, new initiative


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Project Mgmt. Practices HR Mgmt.

Organizational Structure

More than just a matrix structureProgram (Vertical), Domain (Horizontal), COEs(Bubble)

Support departments (Finance, HR, Operation) Coordination

Performance Management

Input from project portfolio systemAppraise from all elements of org. structure

Training need

RecruitmentFor thinking ability, application mind and then forknowledge

McGregors Y peopleFailure handling / high self esteem people

RetentionStrategic aspect can make or break the result

Maslows hierarchy

Inside a project

Assigning resourceas per WBS

Project leader

Project specificteam structure

Domain specificleader

Proper resourceleveling


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Project Mgmt. Practices Quality Mgmt.

Quality measurementfor varying type ofoutputs

Objectively measurable

Quality of unseen,

unknownQuality of research

Quality as a feature

Subjective quality statement about qualityof product would work as a guidelinesomething like Quality Mission Statement

Review deliverables at every stage gatejointly by sponsor, domain experts and teammembers

Review comments & feedback from sponsoras first priority input

Quality process for measurable

Usage of suitable processes for subjectivevariables at appropriate stage

FMEA, Six Sigma, DFA, DFMQuality in-built with work


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Project Portfolio Management

Central system, a repository of all projects

Immediate indicator about risk, deadlines, completionsReport to corporate about performanceProject based performance indicators

Business value creationDirect and Indirect contribution

Contribution in top-line, bottom-line and business sustenanceAll project expenses and costsProgram performanceTeams, individualsCompetency development


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PMO

Process owner and manager

Process standardization / templates /best practices

Support, guidance & training provider

Owner of project management system

Strong IT support team for project management system

Time management, engagement level assuranceRequirement more prominent as the size of is now feltprominently

Integrate the job for portfolio management

Practical exposer of product development / innovationprocess first priority, knowledge of PM methodology second


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Thanks

Project Management in Global Offshore Rd Environment

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