Wednesday, June 5, 2013

Project Execution Skills

Project Management Skill is a single most important aspect of one's life which can make him/her a successful person. Even for organizations and country Basic Project Management is very important.

Project Management Today:
Today when people do project management - "The plan may look good, but practically  not possible."
In 2007, 38% of the project executed world wide was successful.
Last year, in 2012, this number came down to 32%. (The reason was economic recession which was itself caused due to poor project planning.)
Companies like Boeing and Dream-liner which was at pinnacle of project execution and planning have failed due to the urge to beating the competition.
Nevertheless, some Banks in Africa have done exceptionally well during the same recession time. They took advantage of cheaper labor, land etc. to expand themselves.
The crux of the introduction above is Project Planning is most important aspect of any project, it can be even applied to individuals life(Will discuss about it in detail, in next section).

Success = Meeting desired result:
How to define success?
 Success is meeting a desired result(as expected or planned).

Work:
When we think of work, then there are only two kinds of work in this universe:
1. Projects
2. Operations



Projects: Every project have 3 characteristics:
  • Temporary (It should be time bound)
  • Unique (It should be unique)
  • Progressive Elaboration (There has to be a continuous learning curve
Operations: In contrast, operations start only after a project gets complete. And a final Hand-over is done from project team to operation team. Hand-over is the most difficult part, as the two teams function in totally different manner. There is a barrier of language(not literal language like English/Hindi) but the understanding of the same terms. Project fails due to lack of common language/ definition used by everyone. E.g.: 'Quality' can have different meaning for everyone.

Life as an Example:
Lets evaluate life, whether it is a Project or Operation.
1. Well everyone has limited time span. (Temporary)
2. Every individual have Unique life experiences and unique in every aspect. (Unique)
3. And as we grow, we continue to learn. (Progressive Elaboration)

Bingo, our life is nothing but a Project. Do we really plan our life? Most of time 'NO', then it is the time to reflect on this. Most successful people in world, have done one thing in common. They have planned well, and also executed it well. Also, half of your task is accomplished if you plan well.

Planning:
If we plan well before execution of any project or task, we have taken a big step in success of that project /task.
Example: A 4-star hotel was build in just 15 days in China (Google to know more).
                Even in India, a 10-story building was build just in 48 hours (Google to know more).
This was only possible due to amount of planning that went into these project.

Some important point:
1. Planning is not optional(Though we think this to be optional).
2. Too much planning is paralysis.
3. Planning advocates, do it in structured way.
4. 'JUGAD' - It is not solution, but a patch up, which we do to coverup bad planning.
5. "Biting the Silver Bullet" - Once someone has committed it, without much thinking, we are bound to live up to the commitment.

Some Common terms and its definitions, which is commonly used:

The Ice - Berg Effect:
In management, there is a term used as The Ice Berg Effect. If you observe an ice-berg, as below, you'll notice that Only 10% of Ice-berg is visible to us rest 90% is below the water. This is significant as we look at a problem in a similar fashion. We give solutions based on the 10% of problem, without even Thinking at 90% of the problem. (Google to read more.)

 10% is visible problem.


Real problem is 90%
1. How project management works?
2. Lack of communication and inter-personal skills.

It is seen that lack of communication is the biggest challenge in an organization and in personal life.

Communication challenge:
The communication is a challenge in an organization as it has got hierarchy (horizontal divide) and teams/departments (vertical divide). These division create a gap which is responsible for the communication gap. As shown below:
Another important aspect of communication is that you may understand a thing completely, but you may not make others to understand it completely. So you should follow a principle - "I'm responsible for what I say and also responsible for what You understand." So, it is very important for to understand, if others have fully understand you.

Communication skills also become important because we are dealing with human beings and everyone has their own way to communicate and understand. So we have to change our style of communication as per the need.

Stakeholder:
"An individual or body who positively or negatively affect your project."
E.g.: Positive - Project manager(w.r.t. Project), Friends (w.r.t. Life)
         Negative - Environment Ministry (For a new installation of industry)

For successful management, the stakeholders have to be satisfied. And as a rule you cannot satisfy everyone. So, you need to priorities every stakeholder, whom to satisfy and whom to reject. More about this when we actually discuss about the project execution stages.

Pareto Principle: 80/20 Principle
States that - "If you solve 20% of your problem, 80% of solution is met".
Identifying 20% of top most problem and solving it, will result in 80% of total expected solution.

This is even true in case of efforts, 20% of most important efforts, will give you 80% of expected results. In India, it is very well known in Marwadi community and the saying goes like this: "Hing lage na fitkari, aur kaam bhi chokha". Means you can achieve your target with minimal of efforts, in fact you should always try to achieve your goals with minimum efforts. (Google for more info)


Sponsor:
Someone who makes it possible for you to execute a project. Individual/body who arranges for money, resource etc. are sponsor for you.

Project Life-cycle:
Ideally a project life cycle should look as below. The cost and resource should be more only during intermediate execution phase (carrying out the work).

But in Real world scenario, it looks something like below. Due to improper planning, we end up increasing the cost of the product(indicated by Red line) or the time of deliverable.

Thus, proper project planning is very important. It not only saves cost but also the actual execution time.

Organization Structure:
The Organization structure of any organization is purely based on the type of business it performs. Some one is into retail chain (E.g.: Big Bazar) then they will have purely operational style of organization structure. Organization like DRDO/ISRO are purley into project execution, so similar organization structure.

So, based on two type of business we can have 5 types of organization structure:
Functional: It is purely into Operation business. E.g. Big Bazar
Weak matrix: It is in operation, with occasional project execution. E.g. Toyota
Balance Matrix: 50% business in Operations and 50% in Projects. E.g. Nissan/ Renault
Strong Matrix: More in project execution and less in operations.
Projecitized: Purely in Project execution business. E.g. NASA, ISRO

Now, it is very important to understand that changing an organization structure can create a havoc in an organization because people are resistant to change. This is a very reason why 98% of the mergers fails, as two organization will have totally different structure. And people are not willing to adopt others way of working and their organization structure.
 


So, now we are done with concepts, lets discuss about 5 stages of project execution:

5 Stages of Project Execution:
Project execution have 5 stages, shown in the diagram below:

Even before the start of the Initiation phase, we do a Feasibility Study & Benefit-to-Cost Analysis. On completion of these, we go ahead and initiate the project.

1. Initiation phase:
Initiation of a project starts with
a. Market input &
b. Assignment of project manager but the most important factors are defining
c. Triple Constraints (Time, Cost and Scope)
d. Objective
e. Justification
f. Stakeholders - Identification and Prioritization

Triple Constraints : It is constraint of three factors Time, Cost and Scope. If we want to extend the scope, it will lead to extension of time or cost or both and in case we have constraint of cost, then we can only extent the time factor with almost same cost.
In order to access the triple constraint, we use following matrix. Only condition is, each column can only have one Check mark, this helps us to clearly identify the constraints in our project.

Objective: Our objective of the project should be very clear, we should follow SMART guidelines. The following figure is self explanatory. Always have SMART objective in life.

Justification: Always give a justification of the project. It makes it clear on what should be approach of the project planning and execution. E.g. You may choose to do a business with large organization at no profit, but the justification can be - doing business with big organization will  bring more market acceptance and new business opportunity and more profits. So always a justification is needed.

Stakeholder: This is the most important aspect. It involves identification and prioritization of stakeholders. Always identify all the stakeholders, the more number of stakeholder the more is its management. Always, do this is in groups, the more mind working will result in more inputs. Once all the stakeholders are identified, they have to be prioritized based on the Power they have to influence the project and Interest in completion of project.

Key Players (High Power- High Interest) - Manage them closely
High power - Low Interest - Keep satisfied (Diplomatically)
Low Power - High Interest - Keep informe
Low power - Low interest - Minimal effort/ lightly monitor.
 
Example: Take an example of a typical Indian marriage event. We have so many people to satisfy and look upon. In this scenario we can look into who have high power and high interest we try to always keep them satisfied and informed (like bride and groom). In similar way we can identify all types of stake holders like father/mother/brother etc. of groom/bride and their power and interest. Then keep them satisfied or informed accordingly.
Similar way, we can have stakeholders from our social life and decide what priority you want to give to them, in your life. This way you'll be very clear in handling those people.


2. Planning phase:
The second phase in project execution is the Planning execution. It consist of following:
a. Scope
b. Requirements
c. WBS (Work Breakdown Structure)
d. Schedule (Duration/ Resource/ Dependencies)
e. Risk assesment
f. Communication Plan

Lets discuss each in details:

Need, Scope, Requirements & Specification:
Need - It comes from outside the team organization and based on this a project is initiated.
Scope - Is some part of need which we are planning to tackle. It is very important to clearly define, what is in INCLUDED in scope and which part is EXCLUDED from it.
Requirements - Derived from Scope and defined the business logic.
Specification - Technical Business Logic based on requirements
Work-Breakdown Structure (WBS):
WBS is a single most important tool to be used in Project Planning and also it can be used in any type of planning in life.
It is based on single principle - "IT HAS NO ACTIVITY" but it is used to find all possible activity.
Breakdown each of the project as deliverable, and go on sub-dividing it till you come to an logical end where, dividing it further will make it an activity. This lowest deliverable is known as "WORKPACKAGE".
Once Workpackage is defined so we can break it down to individual activity, for delivering that Workpackage.
Hence, whenever a change request comes we can look into this workpackge and define which activity can change and what can be its impact. (Google to read more.)

Problem faced when we start using WBS:
1. We are used to think in activity.
2. We immediately start thinking who will do what activity (Resource allocation).
3. We think is sequence of activity.

With little practice we can start thinking in deliverable(noun) and not activities(verb).
E.g.: A company dealing with machine installation.
For any order-to-installation, they had 68 checklist and it took 180days to install. After using WBS the check list was 265 and average installation time came down to 52days.
Not only that they now have template for WBS and is being used in each and every project they execute.
So it is advisable to stick to WBS and use it reluctantly.

(WBS Chart pro- A plugin for MS-Project).

WBS will help you to sequence the activities.

 Once WBS is in place, you need to sequence and schedule the task. Once it is properly sequenced and scheduled, you can find the most critical path which can directly affect the project output.

Schedule:
A task will have only two property: A Start date and an End date. Based on this, Relation between two task can be as follows:
1. Finish-to-start(FS) : Upon finish of one task other can start.
2. Start-to-finish(SF) : A task can start upon, finish of another task.(Academic in nature, not practical)
3. Start-to-start(SS) : Two task can start parallel, being inter-dependent
4. Finish-to-finish(FF) : Finish of one task will coincide with finish of another work.

Also, there can be a Lag (waiting time. E.g.: Drying of new wall, before painting) or Lead (Start before. E.g.: Procurement of raw materiel before start of production ) associated between two task.


Note: In MS-Project use 1FS to signify S.N.1 is associated with 2 as FS relation.
          To include holidays in WBS use, 10ed- Where- 'e' stands for Disregard any holidays.

Network Diagram & Critical path: Making a network diagram will help to identify time required to complete each activity and also the most critical activity. As a project manager you need to only look at most critical activity, and should not care much about other activity till it becomes critical. The critical activity will decide total duration of the project. Based on this you can:
1. Prioritize the resource
2. Re-allocate the resource

The activity which are not in critical path are called Float/Slack and it can be delayed by the time difference of its completion and project completion. A resource in float/slack  activity can be used in other activity, thereby increasing the productivity of the team/project.
Following diagram show the example of network diagram and critical path:

Note: Fortunately MS-Project provide the tool to draw N/w path and identify critical path, after we have proper WBS in place.

E.g. Nokia E71 launch. Product advertised but not available in market. This is due to lack of scheduling .

Risk: is an uncertain event. It can be negative (Threat) or positive (Opportunity). And depending upon which side you are, it can be a threat or opportunity. E.g. Earthquake can be a threat to people but an opportunity to Builders.
Risk management is directly proportional to reduction of cost.

There are four ways to manage the Risk (Threats/Opportunities):
Threat: 1. Mitigate - Reduce probability or Impact
             2. Accept - Cannot do anything about it
             3. Transfer - Outsource / get insurance (But you are still sccountable)
             4. Avoid - Change scope/ Avoid entire project/ Transfer or Outsource
Opportunity: 1. Accept
                      2. Enhance - Increase risk to get advantage
                      3. Exploit
                      4. Shared - Joint venture


Example:
1. Jack Welch, GE, wrote a book "Wining", proposed two principle:
        a. Always make mistake
        b. Never repeat a mistake

2. Richard Branson, Virgin Atlantic
3. James Cameron, Hollywood director (They took unconventional risk. Google for more info.)
4. Dr. Kiran Mazumdar-Shaw - Pharmaceutical industry

 Risk Taking Capacity:
As project progresses, cost due to risk increases.


Risk Management Process:  
1. Risk Identification
2. Risk Qualification (80/20 principle)
3. Risk Response

Risk Priority/ Assessment (FMEA):
Based on a. Probability  
                b. Impact

Quality:
Quality = Conformity to requirement + Fit to use
If, not meeting requirement = Rejection of product
    not fit to use = get it fixed



Example: In Japan, per person productivity or per person GDP is very high, due to high quality standards they maintain.


Example: For one army project, a team used retired army personnel to just write a proposal in their language, and it got selected. Just due to familiarity of the language. 

No comments:

Post a Comment

Will love to here from you...