Project Management

Real SCM Challenges. Real SCM Experts. Real SCM Solutions.™

HOME
Business Management
Career Management
Design Management
Environment
Inventory Management
Lean Management
Logistics Management
Project Management 1
Project Management 2
Purchasing Management
Quality Management
Risk Management
Six Sigma
Supply Management

PROJECT MANAGEMENT
What is the Point of Work? © Project Management?

by Pen Stout

pstout@stout-consulting.com

Only a few years ago the captain of a boat required advanced training and a wide range of specialized tools to navigate his ship. Now even weekend sailors can use a GPS and computerized charts to easily and accurately navigate safely to their destination. Project management is about to undergo a similar transition. Millions are spent annually on expensive software and expert training so corporate projects will more often finish on time, on budget and within scope. Like the ships before GPS, they often drift out of control if the project manager isn’t vigilant in taking his bearings and tracking his true position.

A few companies are now offering software applications that permit real time reporting of actual project costs from the Point of Work^©. This Point of Work^© perspective, like the captain’s GPS, allows managers to quickly know exactly where their projects are, and where they are likely to end up, at all times. Decisions can then be made taken from facts on the ground rather than theoretical projections.

There are four basic steps to successful implementation of Forward Looking Project Management^©:

Establish a baseline plan

Forward looking PM requires the ability to measure a team or individual’s productivity against a known plan or baseline. The productivity measure is then used to predict when actual completion is most likely to occur.

The best baseline plans are built from statistically valid historical data provided by the sponsoring organization or a subscription estimating service.

When historical data is unavailable an acceptable alternative involves generating an ‘instant history’ using Point of Work^© reporting in the early stages of a task or project. At approximately 15 – 20% into the project useful estimates of actual completion dates can be extrapolated.

Measure accomplishments and costs in real time

As tasks are undertaken real time data is collected. It is desirable to know both: the work performed, and the actual costs, per unit of time.

Recently developed systems, such as Orchard Business Technology’s OnSitePM ^©, offer inexpensive, easy to use, field collection of all relevant data at the Point of Work^©. This capability is the analogue to the GPS used by skippers. It is a key to Forward Looking Project Management^©.

Predict future accomplishment based on established productivity

Using earned value formulas, first developed for the Department of Defense, the forward looking project system calculates the most likely completion dates and estimates the costs to completion based on the actual productivity being measured by the Point of Work^© system in the field and at the engineering workstation.

Being based in facts on the ground, the resulting revised estimates tend to be very accurate. Improving or deteriorating trends are identified early when intervention is more likely to achieve success. Stakeholder expectations can be managed to the possible reality and costly surprises are reduced.

Incorporate and reduce uncertainty

Once plans are based on historical data, actual information is collected at the Point of Work^© and decisions are based on proven productivity and demonstrated trends, it is appropriate to begin incorporating measures of variance. These measures describe the uncertainty inherent in projects which are the source of much disappointment by investors and other key stakeholders. This uncertainty is now well managed using the tools of statistical process control and critical chain project management. The process of managing uncertainty becomes more effective when it is based on real facts measured at the Point of Work^© in real time.

Benefits

Know what is being accomplished and what can be accomplished

Many of today’s projects are predicated on desire and primarily managed on hope. No wonder so many of them fail to deliver to expectation. Forward looking project management shifts the focus from ‘I want’ to ‘We can’. It introduces strong elements of reality in the decision making process. Resource allocation decisions are made based on actual progress and focused on real possibilities. Large losses are avoided and more opportunities are seized because decisions are made while the time is still ripe. Failure trends are identified early and success is reinforced as it occurs. Fewer surprised customers and clients, low costs, higher margins – it all begins with the revolution occurring at the Point of Work^©.

Additional articles:
Project Management: Adding Value Not Cost
Building a Team for the New Marketplace

SME Solutions

ISM Solutions

CSUH Solutions

LeanSCM
Solutions