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Capturing and Applying Lessons Learned for Continuous Process Improvement
Jim Wasson, Ph.D., MBA, PMPSC Small Business Development Center
6296 Rivers Avenue, Suite 300North Charleston, SC [email protected]
www.scsbdc.com843-804-9026
Small Business Development Center
• We are a federal and state program - funded by Congress and administered by the SBA
• We do one-on-one business consulting• The program is available in all 50 states • We assist new small business owners as well as
existing business owners• Our consulting services are at no charge• All data and consulting is strictly confidential• New Technology Commercialization Services at http://
www.scsbdc.com/Technology.php
Technology Commercialization Services
• Government Contracting Assistance• Small Business Innovation Research (SBIR) Solicitation
Review and Proposal Assistance• Business Planning & Financing• Growth Strategy Development • Intellectual Property Strategies• Marketing & Business Development• Project Management Assistance• General Business Management
“Winning SBIR Contracts” Workshop on June 24 @ 1:00pm at St. Leo’s UniversityRegister online at http://charlestonsbdc.webs.com/workshops
Introduction
• Lessons learned is one of the most important value added aspects of Project Management; however, it is often the most ignored.
• By not learning from failures we are doomed to repeat the same mistakes.
• By not maximizing on success we miss opportunities to implement best practices.
• Real value is the ability of an organization to establish a culture of Continuous Process Improvement.
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Project Managementhas Complex Dimensions
SocioculturalLeadershipProblem solvingTeamworkNegotiationPoliticsCustomer expectations
TechnicalScopeWBSSchedulesResource allocationBaseline budgetsStatus reports
©The McGraw-Hill Companies, 2000
Project Life CycleProject
DefinitionProject
PlanningProject
ExecutionProject Delivery
Lev
el o
f ef
fort
1. Goals2. Specifications3. Tasks4. Responsibilities5. Teams
1. Schedules2. Budgets3. Resources4. Risks5. Staffing
1. Status reports2. Changes3. Quality4. Forecasts
1. Train customer2. Transfer documents3. Release resources4. Reassign staff5. Lessons learned
Charter: What?Why?How?
Plan:When?Who?How
Much?Monthly Reviews:How are we doing?
- Performance- Time & Cost
Final Report:How did we do?
©The McGraw-Hill Companies, 2000
Some Typical Lessons Learned
– Lack of understanding of the Scope of the Project– Lack of understanding of Stakeholder Issues and Concerns– Failure to form a High-Performance Project Team– Lack of an approved Project Charter and Project Plan– Lack of a detailed Work Breakdown Structure (WBS)– WBS not integrated with Organization Breakdown Structure– Lack of disciple in issuing and controlling Work Packages– Faulty Statement of Work (SOW), Specifications, Standards– Unrealistic Project Planning Cost and Duration Estimates– Missing a detailed Network Plan and Project Schedule– Unrealistic Resource Planning or lack of a Project Budget– Missing or insufficient Issue, Risk and Opportunity Planning– Lack of a Communication Plan to Track and Report Metrics
Understanding Project Scope787 vs. 777
Technology
Pace
Complexity NoveltyLow
Med
High
Derivative Platform NTWCompAssemblySystemSoS
Fast
Time Critical
Higher technologyrequires more design cyclesHigher complexity requires
more formal PM structure
Faster Time requirescoordinated parallel tasks
More Novelty requiresearly test marketing
Courtesy of Dr. Aaron Shenhar (www.splwin.com)
Network of Stakeholder Relationships
PA
ProjectManager
Team
Project Team
Project
FunctionalManagers
Administrativesupport
ProjectManagers
Projectsponsors
Topmanagement
Customers
Media
Governmentagencies
Contractors
©The McGraw-Hill Companies, 2000
Stakeholder Communications
• 1989: B-2 slashed from 132 to 20 stealth bombers– Perceived decline in Soviet threat– Growing concern about U.S. budget deficit– But mostly poor media relations campaign
• Lesson One: Work with Public Affairs Officers– Made public in 1989. Organizational culture change required.
• Lesson Two: Keep it Simple– Media doesn’t understand amortization impact of producing one
plane per year versus 3-5 per month. Hospital analogy.
• Lesson Three: Answer the Critics– Media left their audience with an impression of incompetence
Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992
Stakeholder Communications
• Lesson Four: Cultivate the Media– Narrow the field and build a rapport– Provide accurate and timely information– Simply your answers
• Lesson Five: Follow the Rules of the Media Game– Strong “first come-first served” ethic– Reporters will only give you the general topic not questions in advance
and you are never “off the record”– Ask to preview articles before publication to catch mistakes– Banish “no comment” or “sorry, its classified”
Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992
Influ
ence
Interest
High Power, High Interest
Low Power, Low Interest
High Power, Low Interest
Low Power, High Interest
Stakeholder Interest and Influence
IT Staff
Jack Jones
Finance
PMO
AirlinesFAA
Suppliers
Creating a High-Performance Project Team
Recruitteam members
Superiorperformance
Conduct project meetingsEstablish team identityCreate a shared visionBuild a reward system
Manage decision makingManage conflict
Lead team-building sessions
©The McGraw-Hill Companies, 2000
A vision must communicate a strategic sense, instill passion and inspire the team
An Effective Project Leader is…
• A clarifier: listens, summarizes, and makes things clearer.• A coach: encourages others to develop their skills.• A facilitator: helps the group set goals, make decisions, choose
directions, and evaluate progress.• A delegator: helps each group member apply her talents and
interests to the group's goals.• An initiator: gets things moving.• A manager: coordinates the parts of a project. keeps an eye on
progress.• A mediator: helps resolve differences.• A networker: connects people with people and people with ideas to
move the project forward.• A problem-solver: suggests solutions and ways to get things done.• A visionary: sees creative solutions, new directions, and
possibilities.
Project Management Trade-Offs
RiskQua
lityTypicalProject
Constraints
Resources
ScopeCost Tim
e
Project Cost-Time Graph60
50
40
30
20
10
04 6 8 10 12 14 16
Totalcosts
Optimumcost-time
point
Directcosts
Indirectcosts
Low-costplan duration
point
Project duration
Cos
ts
©The McGraw-Hill Companies, 2000
©The McGraw-Hill Companies, 2000
Hierarchical Breakdown of the WBS
1
2
3
4
Project
Deliverable
Subdeliverable
Lowest subdeliverable
Cost account*
Work package
Complete project
Major deliverables
Supporting deliverables
Lowest managementresponsibility level
Grouping of work packagesfor monitoring progress andresponsibility
Identifiable work activities (SOW)
WBS Level Hierarchical breakdown Description
*This breakdown groups work packages by type of work within a deliverable and allows assignment ofresponsibility to an organizational unit. This extra step facilities a system for monitoring project progress
Work Breakdown Structure (WBS)Personal computer
prototype
Vendor,software,
applications
Mouse,keyboard,
voice
Diskstorageunits
Microprocessorunit
Moreitems
Floppy HardOptical Internalmemory
unit
BIOS (basicinput/output
system)
ROM RAM I/O File Utilities
Motor Circuitboard
Chassisframe
Read/writehead
WP-1M WP-1 CB WP-1 CF WP-1 RWHWP-2 CB WP-2 CF WP-2 RWHWP-3 CB WP-3 CF WP-3 RWHWP-4 CB WP-4 RWHWP-5 CB WP-5 RWHWP-6 CBWP-7 CB
~ ~ ~ ~ ~
~ ~
~ ~
Work packages
Lowest manageablesubdeliverables
Level1
2
3
4
©The McGraw-Hill Companies, 2000
WBS and Organization Breakdown Structure Integration
Time
Cost accountnumber
Personal computerprototype
Vendor,software,
applications
Mouse,keyboard,
voice
Diskstorageunits
Microprocessorunit
Moreitems
Floppy HardOptical Internalmemory
unit
BIOS (basicinput/output
system)
ROM RAM I/O File Utilities
Motor Circuitboard
Chassisframe
Read/writehead
~ ~ ~ ~ ~
~ ~
~ ~
Lowest manageablesubdeliverables
Level1
2
3
4
1.0
1.2 1.3 1.1 1.4
1.1.1 1.1.2 1.1.31.4.1 1.4.2
1.4.1.1 1.4.1.2 1.4.2.1 1.4.2.2 1.4.2.3
1.1.3.1 1.1.3.2 1.1.3.3 1.1.3.4
Cost 1.1.3.4.1account
Cost Costaccount account
Cost Costaccount account
Costaccount
Costaccount
Work packages WP1.1.3.4.2.1 WP1.1.3.4.2.2 WP1.1.3.4.2.3
Budget byperiod
Production
Design
Test
Purchasing
Software
Manufacturing
Organization
©The McGraw-Hill Companies, 2000
Organization Breakdown Structure
Work Packages allow Monitoring & Control
Database
Work PackagesTimeResources Labor Materials Support effortBudgetsResponsibilities (SOW)Performance Specs & Stds
Plan,schedulebaseline
Control
Time, cost andspecifications
byDeliverables
andOrganization
ScopeDeliverables
WBS
Org
aniz
atio
nO
BS
©The McGraw-Hill Companies, 2000
Realistic Project Planning Estimates
Best-case schedule
Baseline schedule
Worst-case schedule
Actual scheduleForecast completion
schedule
10%
50%
90%
470 days
500 days
590 days
510 days300 days
Actual tracking schedule
©The McGraw-Hill Companies, 2000
Baseline =[Pessimistic + (4 x Most Likely) + Optimistic]6
Network Diagram (PERT Chart)
1 Orderreview
20 20 2
2
3
4
5
Softwaredevelopment
Orderstandard
parts
Producestandard
parts
Designcustom parts
18 2 2022 40
15 2 1715 30
10 2 12 5 15
13 2 15 2 15
6
7 8
Manufacturecustom
hardware
Assemble Test
Activity8#
Legend
1515 3015 30
1030 4030 40
540 4540 45
DurationES EFLS LF
Note: Red Line is the Critical Path
©The McGraw-Hill Companies, 2000
Project Schedule (Gantt Chart)
0 7 14 21 28 35 42 49
2
13
15
10
18
15
10
5
1. Order review
5. Design custom parts
3. Order standard parts
4. Produce standard parts
2. Software development
6. Manufacture customhardware
7. Assemble
8. Test
Slack Time Key Milestones
©The McGraw-Hill Companies, 2000
Note: Red Line is the Critical Path
Project Constraint Examples
Pour Frame Roof
Design Code Test
Technical constraints
(A)
Plan
Purchaserefreshments
ReceptionDecoratehall
Hire band
(B)
Resource constraints
Plan Hire bandDecorate
hallPurchase
refreshmentsReception(C)
©The McGraw-Hill Companies, 2000
Resource Leveling
ID RES DUR ES LF TS 0 1 2 3 4 5 6 7 8 9 10 11 12
A 2 2 0 2 0 2 2
B 2 6 2 10 2 X X 2 2 2 2 2 2
C 2 4 2 6 0 2 2 2 2
D 1 2 2 10 6 1 1
E 1 2 6 10 2 1 1
F 1 4 6 10 0 1 1 1 1
G 1 2 10 12 0 1 1
2 2 3 3 4 4 4 4 3 3 1 1Total resource load
Leveled Resource Load Table
Early Start Resource Load Table
©The McGraw-Hill Companies, 2000
A 2 2 0 2 0 2 2
B 2 6 2 10 2 2 2 2 2 2 2
C 2 4 2 6 0 2 2 2 2
D 1 2 2 10 6 1 1
E 1 2 6 10 2 1 1
F 1 4 6 10 0 1 1 1 1
G 1 2 10 12 0 1 1
2 2 5 5 4 4 4 4 1 1 1 1Total resource load
Boeing 787 Aft Body
Poor Resource Leveling
Example
Risk Event Graph
Risk
High
Cost
Low
Project life cycle
Chances of risksoccurring
Cost to fixrisk event
• Crisis management requires significant resources• Typically constrained by limited alternatives • Best to mitigate risks before they become issues
©The McGraw-Hill Companies, 2000
Pre-Concept RefinementMaterial Solution Analysis
Technology Development
Engineering and Manufacturing Development
Production & Deployment
RIO Process
1. Identify Risk , Issue or Opportunity2. Analyze Risk, Issue or Opportunity3. Assess Available Options / Disposition4. Develop Mitigation, Resolution or Capture Plan5. Perform to the Approved Plan6. Track & Communicate Progress (see cubes)
Risk Assessment Matrix
Systemfreezing
Low High Low Startup
Userbacklash
High Medium MediumPost
installation
Hardwaremalfunctioning
Medium High High Installation
Risk eventChance-
LMHSeverity-
LMH
Detectiondifficulty-
LMH When
©The McGraw-Hill Companies, 2000
Responses to Risk Matrix
Risk eventAccept, reduce,avoid, transfer
Contingencyplan Trigger
Systemfreezing
Reduce Reinstall OSStill frozenafter 1 hour
Userbacklash
ReduceIncrease staff
supportCall from topmanagement
Hardwaremalfunctioning
TransferOrder different
brandReplacementdoesn't work
©The McGraw-Hill Companies, 2000
Risk Cube
1
2
3
4
5
1 2 3 4 5
High
Moderate
Low
Consequence
Lik
elih
ood
- Current
O - Original
X Low
Moderate
High
Lik
elih
oo
d
Consequence
Opportunities Cube
Metrics - Schedule Control Chart
20
Today
Ahead ofschedule
Behindschedule
Schedule outlook
15
10
5
0
-5
-10
-15
-200 1 2 3 4 5 6 7 8 9 10 11 12 13
Reporting period
Timeperiods
A similar chart can be developed to depict Cost Variance
©The McGraw-Hill Companies, 2000
Metrics - Earned Value Chart
EAC
BAC
CV
SV
ACWPactual cost
BCWSbaseline
BCWPearned value
10 20 30 40
25%$100
50%$200
75%$300
85%$340
100%$400
125%$500
©The McGraw-Hill Companies, 2000
Why Lessons Learned?
• Organization Memory• Turnover demands an internal database
• Quality Customer Service• Document what they have bought• Whether they have expressed any concerns• How those concerns were handled
• Employee Involvement• Top management support• Make mistakes and learn from them• Recognize familiar patterns and avoid them
Courtesy of Carl L. Pritchard, “Lessons Learned in 21st Century”, PMI Symposium 1997
Capturing & Applying Lessons Learned
1. ID Success, Failures, Recommendations
2. Document and Report on Findings
3. Analyze Findings for Cause & Effect
4. Store Results in Project Repository
5. Retrieve Lessons Learned
• Questionnaire• Discussion Session
• New Processes• Best Practices
• Exec Summary• Action Items• Metrics
• Actions Taken• Keywords
• Kick-Off Meeting• Risk Planning
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Capturing Lessons Learned
1. Questionnaire Surveys sent out in advance– Document what went right, what went wrong and
what needs to be improved.– Organize by categories (such as knowledge areas,
phases, tasks or processes)– Quantitative questions (Likert scales) for statistical
analysis and qualitative (open-ended) questions2. Conduct Lessons Learned Session
– Identify participants and review survey results– Have a list of questions, assign roles, ground rules– Facilitator other than PM guides the brainstorming– Criticize the process - never the people!
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Testing ran into the holidays
Fabrics arrived late for testing Adequate fabric
swatches were made available
Lots of fabric suppliers were found
Seat Fabric Analysis
Blah-blah
Yata-yata
Etc-etc
Courtesy of PM One
39
Testing ran into holidays
Fabrics arrived late for testing Adequate fabric
swatches were made available
Lots of fabric suppliers were found
Seat Fabric Analysis
Blah-blah
Yata-yata
Etc-etc
Ranking is by IMPACT to Project!
Courtesy of PM One
Applying Lessons Learned
3. Analyze & Organize Data– Conduct Root Cause Analysis
• Fishbone chart and/or “five whys”– Implementers should develop solutions
• Process improvements and/or training programs4. Store Results in Project Repository
– Use a standard template for consistency• Category, project name, lesson learned, root
cause, action taken, keywords, etc.– Assign a resource to manage the database– PMs are responsible for providing their lessons
learned inputs prior to project close-out
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Applying Lessons Learned
5. Retrieve & Use Lessons Learned– Meet with Leadership to discuss new project
approach which includes lessons learned from past– Discuss lessons learned at project kickoff meeting– Use lessons learned for identifying project risks and
developing risk mitigation strategies– Treat each project as a learning experience and
shares knowledge with the organization– Be on the lookout for best practices– Develop a culture of continuous process
improvement
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Lessons Learned Best Practices
• Review lessons learned from previous projects at the beginning of your project. Standard Operating Procedure.
• Conduct lessons learned sessions at various times throughout the life of your project. Must be timely.
• Have someone other that the PM facilitate the lessons learned session and ask focused open-ended questions.
• Use templates for consistency. Keep it simple. Keywords.• Perform a root cause analysis and engage appropriate
resources to implement solutions.• Assign a Database Administrator to store on the Intranet.• Use lessons learned during risk and opportunity planning.• Leadership involvement to eliminate fear of retribution or
peer ostracism. Performance Reviews on the use of LL.
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Please schedule an appointment:
Jim Wasson, Ph.D., MBA, PMPTechnology Business Consultant
Small Business Development Center
6296 Rivers Avenue, Suite 302North Charleston, SC [email protected]
843-804-9026