Contractor Design Reviews

■ Regular contractor reviews

■ Address risk issues in review of designs, drawings, prototypes, etc.

■ Require contractor to communicate risk issues as they surface

■ Renegotiate contract if worst case, pessimistic risk scenario occurs

Bibliography

Advanced Product Quality Planning and Control Plan APQP, Ford, Chrysler, GM joint publications,

Detroit, 1994. [Technical guide for product engineers, designers and developers.] Advanced Project Portfolio Management and the PMO, Gerald Kendall and Steven Rollins, J. Ross Publishing, Boca Raton, Florida, 2003. [Great source on how to develop a new product portfolio and manage it using a Project Management Office.] Creating an Environment for Successful Projects, Robert Graham and Randall Englund, Jossey-Bass, San Francisco, 1997. [Perhaps the best source on executive roles in project management; introduces the concept of project sponsor.] Customer Driven Project Management: Building Quality into Project Proceses, 2d ed., Bruce T. Barkley and James Saylor, McGraw-Hill, New York, 2001. [Good source on quality, customer requirements, and SPC tools. Available in Chinese.] Fast Cycle Time: How to Align Purpose, Strategy, and Structure for Speed, Christopher Myer, Free Press, New York, 1993. [Early treatment of new product development process improvement; set the stage for later work on new product development.] Implementing Concurrent Project Management, Quenten T. Turtle, Prentice Hall, Englewood Cliffs, New Jersey, 1994. [Good source on integrated project teams and new product development in engineering.]

Integrated Project Management, Bruce T. Barkley, McGraw-Hill, New York, 2006. [Good source on

PMBOK integrated project requirement standards.] Intelligence Reframed: Multiple Intelligences for the 21st Century, Howard Gardner, Basic Books, New York 1999. [Excellent treatment of various intelligences including creativity and leadership intelligence.] Leading Change, John Kotter, Harvard Business School Press, Boston 1996. [Excellent source on building coalitions in an organization going through change and providing change leadership.] Managing Performance Improvement Projects, Jim Fuller, Pfeiffer, San Francisco 1997. [A good source for "soft" projects focused on organizational improvement.] Marketing Management 12th ed., Philip Kotler and Kevin Keller, Pearson, Prentice Hall, Upper

Saddle River, New Jersey, 2006. [Good market launch text] Maximizing Project Value, Jeff Berman, AMACOM, New York, 2007. [Good reference on seeing costs and benefits of projects and business case for projects.] New Generation Product Development, Michael McGrath, McGraw-Hill, New York, 2004. [Best source on resources and resource management in new product development.] New Products Management, Merle Crawford and Anthony Di Benedetto, McGraw-Hill, New York, 2006. [Good text in the field for graduate programs in new product development and marketing.]

On Time Within Budget: Software Project Management Practices and Techniques, 3d ed., John Wiley and Sons, Inc., New York, 2000. [Excellent discussion of software development project issues and challenges.]

Portfolio Management for New Products, Robert Cooper, Scott Edgett, and Elko Kleinschmidt, Basic Books. New York 2001. [Excellent, original work on new product portfolio development using the Cooper approach.] Process Innovation: Reengineering Work Through Information Technology, Thomas Davenport, Harvard Business School Press, Boston 1993. [Excellent treatment of process improvements and information technology issues.] Production and Operations Management: Planning, Analysis, and Control, Richard Hopeman, Merrill Publishing, Merrill, Visconsin 1980. [Good basic text in production planning and control principles.]

Project Risk Management, Bruce T. Barkley, McGraw-Hill, New York, 2004. [Excellent source on project risk analysis, PMBOK standards, and cases.]

Project Management: Strategic Design and Implementation, David Cleland, McGraw-Hill, New York, 1999. [Excellent resource for project management process, with some information on senior management strategic roles and functions.] The Business of Innovation, Roger Bean and Russell Radford, AMACOM, New York 2002. [Good source on the culture and behavior of innovation in organizations.] The Structure of Scientific Revolutions, 3d ed., Thomas Kuhn, University of Chicago, 1996. [The seminal book on paradigms and how paradigmatic change occurs.] The Wisdom of Teams, Jon Katzenbach and Douglas Smith, Harper Business, New York 1994. [The standard in the field on teams and teamwork.] The World is Flat, Thomas L. Friedman, Farrar, Straus, and Giroux, New York, 2005. [Excellent treatment of internet impact on global economy.] Winning at New Products, Robert Cooper, Basic Books, New York, 2001. [The seminal work in stage gate approach to new product development.]

Index

Acceptance documentation, formal, 96 Acceptance Test Procedure (ATP), 205 Accessibility to key information, 64 Accountability, 309, 310

and change control system, 152 cross-functional, 328-329 and integration, 71

and project management plan development, 87

Accounting control, 64, 65 Accounting reporting system audit, 108 Acid test of creativity, 8 Acquisition and merger, 49 Acquisition cycle, 250 Ad hoc approach, 329-330 Administrative closure procedure, 89, 95, 96

Advocacy process, 174-175 Advocates, project, 306 Agendas, for project review, 174 Agile project management, 286-289 Agile Project Management (Gary Chin), 286

Agility, organizational, 8 Alignment:

with customer expectations, 74 and DoD new product portfolio management, 252

and integration, 70 mis-, 230, 231 project, 125

strategic (see Strategic alignment) Alpha testing (see Prototype development) Alternative candidate projects, generation of, 268

American Association of Laboratory

Accreditation, 42 Analysis documents, 197 Analytic skills, 319 Approved change requests, 88, 94 Approved corrective actions, 88, 94 Approved defect repair, 89, 94 Approved preventive actions, 88, 94

Article review, 219-220 Ashby, W. Ross, 244 Assessment, of project value, 176, 177

Assets, organizational process, 80-83 Assignment Matrix (RAM), 58 Assignments:

BuildIt, Inc. case study, 131 resource, 62 ATP (Acceptance Test Procedure), 205 Attitude, 304, 311 Audit(s): program, 347 project, 254-258 quality, 271

of support systems, 107-108 Auditing system, financial, 66 Avionics project (case study), 23-27 Awareness, customer, 33-34, 40-42, 48, 49

Awareness, personal, 15-16

Balanced scorecard, 68 Baldrige Quality Award, 60 Barriers: paradigms as, 7 removing, 6 Baseline procedures, 140 Baseline schedule, 139, 280 Beta distribution, 160 Beta testing, 193 "Big picture," 229, 230, 308, 312 Bill of materials, 198 Blind quadrant (of awareness), 15-16 Brainstorming, 268 Brand equity assessment, 222 Break even analysis, 149 Breakthrough value, 177 Budget, 151 Budgeting, 30, 269 Budgeting system, 63 Build and test cycle, 196 Build strategy, 195

BuildIt, Inc. (case study), 127-150 baseline procedures, 140 baselining schedule, 139 change management, 131-132 closeout/lessons learned, 143-144 collaboration across organization, 131 concept definition, 144 customer requirements, 130 departmental managers' roles,

133-134 financial analysis, 148-150 integrated/generic WBS, 130 one- to five-year strategic objectives, 128 organization, 128 preliminary project plan, 146-147 procurement, 131

program administrator/planner's role, 134 program management manual, 129 program management office, 132 program management principles, 129-130

program management roles/responsibilities, 132

program manager's role, 132-133 program of projects, 128-129 program planning/scheduling/resource management, 134-137 progress tracking, 132 project charter, 147-148 project cost accounting systems, 129 project setup for control, 144-146 quality-/schedule-driven work, 131 resource planning/control, 141 schedule control, 137, 139 schedule management on network, 140 scheduling process, 137, 138 scope of work/assignments definition/

communication, 131 standard WBS, 130 strategic statement, 128 structure/science/research, 146 teamwork, 130-131 tracking/program review, 141 update procedures scheduling,

141-142 variance analysis, 142-143 Business case, 186, 218-219, 327 Business framework: pyramid of, 19 for risk, 17-20 Business impact statement, integrated portfolio, 114-115 Business need, 79 Business plan, updating, 215-217

Business planning: Integrated Transportation System case study, 105-106 QUICK-TECH case study, 112-113 Business planning system, 62-63 Business value, 333 Business-level integration, 71

CAD (computer-aided design), 298 CAE (computer-aided engineering), 298 CALS (Computer-Aided Acquisition and

Logistics Support), 299 CAM (computer-aided manufacturing), 298

Capitol rationing, 109 Cash flow, 252

CDRR (see Critical design risk review) CE (see Concurrent engineering) Certification engineer, 244-245 Change control, integrated, 69, 91-94 Change control system: and integrated program/project management, 152 and project management plan development, 86

Change impact system, 66 Change management, 307 BuildIt, Inc. case study, 131-132 for individual, 309

of integrated project management in new product development, 343 and quality, 274 Change management system, 347 integrated project management tools for, 66

and integration of program/project management, 66 Change order system, 66 Change requests, 91 approved, 88, 94 implemented, 89 rejected, 90, 94 Charter, project (see Project charter) Chassis design and development, 111 Chin, Gary, 286 Close of business (COB), 141 Closeout: BuildIt, Inc. case study, 143-144 and integration, 94-97 plan for project, 110 Closure, 94-97 administrative, 89 and integration, 70 Coaching, 314

COB (close of business), 141 Coca-Cola, 146 Collaboration, 273

Collaboration across organization, 131 Commercialization, 207, 336-337 Commercialization analysis, 181 Commitment, 32, 38 Communication(s):

during project setup, 190 and risk, 373 and self-assessment, 313 of strategy/risk, 47 team, 321

and team dynamics, 355 Community, as stakeholder, 32 Company scale of integration, 122 Competence, technical/professional, 314

Competencies: and DoD new product portfolio management, 252

measuring new product development with, 327

Competitive analysis, 181-183 Completeness, 70 Complexity, 244 Components:

detailed design review of, 204 integration of, 111 preliminary review of, 195-197 procurement of, 274 product component support document, 208-209

Computer-Aided Acquisition and Logistics

Support (CALS), 299 Computer-aided design (CAD), 298 Computer-aided engineering (CAE), 298 Computer-aided manufacturing (CAM), 298 Concept definition, 144 Concept development phase, 171-172,

267-268 Concept paper, 48 Concept risk assessment, 178-180 Conceptual skills, 313 Concurrent engineering (CE), 293-295 Conduct production template, 213, 214 Configuration management, 23, 25, 27 audit of, 108 defined, 189

and full product development/marketing, 193

function of, 196

in prototype development, 235

and quality, 274

Configuration management system: and integrated program/project management, 151-152 and project management plan development, 86 Confirmation of final product design, 197-198 Confirmation of functional requirements, 198 Confirmation of product specifications, 198 Confirmation of reliability requirements, 202-206 Conflict, 356-358 and getting unstuck, 357 and meeting skills, 357-358 and negotiating, 357 and personal effectiveness, 358 steps in, 356 Conflict resolution, 275-278 Conformance:

quality as, 260, 267 to specification, 265 Connection, 70

Contingency actions, 256-259 Contingency management, 308 Contingency plans, 179, 248-249 Continuing closure, 266 Continuous improvement, 68 Contract closure procedure, 95, 96 Contract documentation, 95 Contract management, 344 Contract risk, 373, 374 Contracting, audit of, 108 Contractors, qualifying potential, 207, 208 Contracts: and project charter, 79 as project charter input, 79 Control: of new product process, 328 program, 347 project setup for, 144-146 of project work, 90-91 of risk, 372-373 Cooper, Robert, 174 COPQ (see Cost of poor quality) Core competence, 38, 106, 230 Core teams, developing, 354 Corporate knowledge base for information storage/retrieval, 81 Corporate policy statement, 249-251 Corporate strategic planning, 10 Corrective actions: approved, 88, 94 implemented, 89

and integration of program/project management, 66 recommended, 91, 93

of integrated project management in new product development, 342-343 risks in, 366

schedule/risk/quality integration with, 123-125 Cost breakdown, 155 Cost controls, 69, 94 Cost estimates, 30

Cost of poor quality (COPQ), 293, 294, 297 Cost of quality analysis, 262 Cost-plus-fixed-fee contracts, 374 CPM (see Critical Path Method) Creative tension, 316 Creativity, 8-9 Critical chain, 60, 231-232 and new product development teams, 322 and team dynamics, 351-356 theory of, 67 Critical Chain (Eliyahu M. Goldratt), 232 Critical design risk review (CDRR), 238, 242 Critical path, 306

Critical Path Method (CPM), 155, 162-163 Cross-functional teamwork and accountability,

328-329 Cultural differences, 264 Cultural diversity, 307-314 Culture:

integrated project management, 61 risk management, 11-14 (See also Organizational culture) Culture of ideas, 1-27 avionics project example, 23-27 barrier removal for, 6 defined, 4

feedback system for, 7

filtering process for, 7

importance of, 1

incubation laboratory for, 7

and innovation, 332

and intelligence, 8-9

and new product risk framework, 17-20

and openness, 326-327

and organizational agility, 8-9

with organizational learning, 5

and outsourcing, 5

and paradigmatic barriers, 7

process framework for, 5

and publicizing success, 8

return-on-creativity promotion for, 6

and risk (see Risk)

Schneider Program case, 19-23

Sonoco case study, 1-4

Culture of ideas (Cont.): strategies for, 6-8 and WBS, 332 Customer(s): diversity of, 304

expectations/needs/wants/requirements of,

183-184 and integration, 72, 74 market interface with, 109 and project management support system,

274-275 as stakeholders, 32

voice of the (see Voice of the customer) Customer awareness, 33-34, 40-42, 48, 49 Customer interview protocols, 214 Customer orientation, 312 Customer quality surveys, 260 Customer requirements, 130 Customer satisfaction:

Eastern's strategy for, 33-34, 40-42, 48, 49 and integration, 69 quality as, 260, 265, 267 Customer-driven contingency plans, 248-249 Customer-driven project management, 315 Customer-driven risk management, 248-249, 252-253

Customer-driven teamwork, 272-273

Data dictionary, 61 Decision making:

escalation system for, 66 latitude in, 319-320 and risk, 359 Decision process, 63 Decision time, 174 Decision trees, 164-169, 287 example of, 164, 166-168 and expected value, 165, 166 and target cost analysis, 168-169 theory of, 165 Dedication, 311-312 Defect repairs: approved, 89, 94 implemented, 89 recommended, 91, 93 validated, 89, 94 Defects, 247 Deliverables, 89 and closure, 95

and integrated change control, 93, 94 and integration, 69

and project execution direction/management,

88-89 as WBS level, 115

Department staffing, 284 Departmental managers:

BuildIt, Inc. case study, 133-134 roles of, 277 Design:

confirmation of final product, 197-198 detailed, 234-235 production, 235 quality activity in, 250 risks in, 233 Design changes, 236 Design of experiments (DOEs), 295 Design requirements synthesis, 243 Design review, 237 detailed product and component, 204 preliminary, 199-201 pre-prototype, 203 system-level, 204 Design to cost, 169, 292 Design to process, 292 Design to quality, 291 Design to Six Sigma, 292 Design validation stage, 196-197,

235-236 Detailed design stage, 234-235 Detailed product and component design review, 204 Details: big picture vs., 230 review of design, 242 Development, professional, 311-314 Development life cycles, 5 Development phase plan, 185-186 Differentiation, 181

Direct and manage project execution, 87-90

Discipline, 352

Discounting, 267

Disintegration, 67

Disinterested analysis, 145

Distribution, 229, 336-337

Diversity:

customer/user, 304 gender/minority, 307-314 DMADC (define, measure, analyze, design, verify), 247, 251 Documentation: formal acceptance, 96 of lessons learned, 66 of product specifications, 75 and production, 236 project closure, 96 as quality tool, 263 of requirements, 234

Documents:

engineering, 242 product concept, 175, 176 DoD (see U.S. Department of Defense) DOEs (design of experiments), 295 Domains, 8-9 Driver(s): of competition, 182, 183 quality as, 275 Duration estimates, 232

EAC (estimate at completion), 351 Early/late start and finish analysis, 119, 120,

142,154-164 Earned value, 64, 262-263, 265 and budgeting, 269 BuildIt, Inc. case study, 142-143 in financial/accounting control, 64 and monitoring/controlling project work, 91 in new product project monitoring, 349-351

QUICK-TECH case study, 117-122 Earned value control, 125 Earned Value Management (EVM), 58 Eastern Company (case study), 30-50 acquisition/merger, 49 commitment/partnership, 32 communication program, 47 concept paper, 48-49

customer-awareness/satisfaction strategy,

40-42, 48, 49 economically-priced power strategy, 39-40

elements of risk-based strategic plan, 38 environmental impact strategy, 44-46 ideation concept, 47 integration issues, 34-35 key strategies, 33-34, 39-47 low-cost resource strategy, 40 reduction of waste/non-value-added costs strategy, 46-47 responsible/knowledgeable workforce strategy, 43-44 risks/goals identified, 31-32 safe-working-environment strategy, 42 stakeholder relations, 32-33 strategic plan, 37 SWOT analysis, 35-37 technology/plant-equipment improvement strategy, 44-45, 48 Economically-priced power, 33, 39-40 E-driven work, 5 Education, 311 80-hour rule, 126, 305

Electronic and computer-based new product development, 229-245 challenges in, 229-232 design validation (step 4), 235-236 detailed design (step 2), 234-235 production transition (step 5), 236 program management responsibilities, 239-244

prototype development (step 3), 235 requirements definition (step 1), 234 risk management, 232-233 risks in organizational/technical interfaces, 236-239

software development risk, 244-245 stages in, 233 Electronics design and development, 111 Employees, as stakeholders, 32 Empowerment, 308, 317-320 and improved quality of work life, 318 and latitude in decision making, 319-320 and new job opportunities, 319 and professional/personal development,

318-319 and rewards/recognition, 319 of workforce, 327 Engineering documents, 242 Enterprise environment: and closure, 95 and project charter, 79-80 Enterprise resource planning, 298 Environmental impact, 34, 44-46 Environmental requirements, 243 EProcurement, 68 Equipment: preliminary review of, 195-197 test, 205, 236 Escalation system for decisions, 66 Estimate at completion (EAC), 351 Estimated cost to develop and produce, 177 Estimating, risk, 12-13 Evaluation: of personal improvement, 317 program, 347 of projects, 66 EVM (Earned Value Management), 58 Expectations: customer, 183

and customer satisfaction, 260 and front-end customer process analysis, 266-267

QFD for transforming expectations into requirements, 271 risks with, 253 Expected scenarios, 226, 368

Expected value, 165, 166 Experience, and risk, 11 Expert judgment: and closure, 95

and integrated change control, 93

and monitoring/controlling project work, 91

and preliminary project scope statement development, 84 and project charter development, 82 and project management plan development, 86

External analysis, 179 External integration, 70 "Eyes fully open," 78

Failure Mode and Effects Assessment (FMEA),

194-196, 202, 203, 205 Feasibility, technical, 252 Feedback: and customer satisfaction, 260 on performance, 315 on product, 337

and self-assessment, 309, 311-312 system of, 7 Feelings, customer satisfaction and, 260 Field marketing, 337 Field support, for market launch, 212 Field test protocol, 213, 214 Field tests: conducting/documenting, 215 implementation plan for, 214-215 Fifth, Discipline, The (Peter Senge), 316 Filtering process, 7, 50 Final development, 193 Final logistics plan for market launch, 220221

Final product, service, or result, 96 Final product design, confirmation of,

197-198 Final project review, 186-188 Final test plan, 205 Financial analysis, 148-150 Financial auditing system, 66 Financial control, 64, 65 Financial issues, and integration, 72 Financial performance, 327 Financial performance analysis, 220 Financial reporting system audit, 108 Financing: as driver of competition, 183 Sonoco's example of, 4 (See also Funding) Finish times (see Early/late start and finish analysis) First article review, 219-220

Fish bone diagrams, 300, 301 Fixed contracts, 374 Flexibility, 322

FMEA (see Failure Mode and Effects Assessment)

FMEA standards, 300

Forecasts:

and monitoring/controlling project work, 91 sales, 177 Form, 176

Formal acceptance documentation, 96 Forward integration, 69-71, 97 Friedman, Thomas, 97, 120 Front-end customer process analysis, 266-267 Full product development and marketing, 189-227, 336

business plan update, 215-217 defined, 189

final business case reconfirmation, 218-219

final logistics plan for market launch, 220-221

final product design confirmation, 197-198

final regulatory approval, 217-218

first article review, 219-220

market launch plan, 221-223

market scheduling, 223-224

and MS Project PERT/risk matrix, 226-227

plan for, 185-186

preliminary design review, 199-201 preliminary equipment/component review, 195-197 product component support document, 208-209 product specifications confirmation, 198-199 production process and plan, 212 project setup/management, 189-195 prototype product testing, 206-208 reliability planning, 201-202 reliability requirements confirmation, 202-206 risk-based scheduling, 225-226 Functional managers, 11 Functional requirements, 196-197 Functional specifications for product, 180-181 Functional support, 108 Functions, in WBS, 130 Funding, 53-54 (See also Financing)

Gantt charts, 119, 121, 135, 136 Gardner, Howard, 8 Gender diversity, 307-314 Generation, of projects, 66

Generic work breakdown structure, 61, 115-117, 130

Getting unstuck, 357

Global interface, 97, 105

Global projects, integration in, 50

Global scale of integration, 120

Global team, 106-107

Go or no-go decisions, 174-175

Goldratt, Eliyahu M., 231-232 Growth engines, 327

Guidelines for project management plan, 62 Hard products, 194

Hardware, integration of software and, 111-112 Helping others, 317 Hidden quadrant (of awareness), 16 High-performance teams, 303 Historical information, 97 Human resources (HR): audit of, 108 interface with, 65 Hurdle rate, 327

Ideagoras, 171

Ideas, culture of (see Culture of ideas) Ideation, 47, 48, 171

Images of Organization (Gareth Morgan), 123 IMP (Integrated Master Plan), 58 Impact severity, 179 Implemented change requests, 89 Implemented corrective actions, 89 Implemented defect repair, 89 Implemented preventive actions, 89 Improvements, scheduling of, 258-259 IMS (Integrated Master Schedule), 58 Incentives:

performance, 14 for sales force, 4 Incremental value, 177 Incubation laboratory, 7 Industry standards:

in financial/accounting control, 64 and integration, 122 Information:

accessibility to key, 64 managing, 127 Information storage and retrieval, 81 Information technology, audit of, 108 Information technology system, 346 Infrastructure needs, 220-221 Ingham, Harry, 15 Initiative, personal, 314 In-Plant Quality Evaluation (IQUE), 299 Institute for Defense Analysis Report R-338, 294 Integrated change control, 91-94 Integrated cost control, 69 Integrated Master Plan (IMP), 58 Integrated Master Schedule (IMS), 58 Integrated monitoring, 122-123 Integrated portfolio business impact statement, 114-115

Integrated product and process teams (IPT), 58

Integrated Product Development (IPD), 320-321 Integrated Product Development Teams (IPDTs), 320-321

Integrated program and project management, 57-169 and balanced scorecard, 68 BuildIt, Inc. case study, 127-150 change control integration in, 91-94 characteristics of, 70-71 close of project in, 94-97

configuration management system in, 151-152 and critical chain theory, 67 decision trees/uncertainty in, 164-169 early/late start and finish analysis in, 154-164 and eProcurement, 68 indicators of, 69

Integrated Transport System case study, 97-112 as leadership function, 59 limitations of, 67

management skills required for, 125-127 model of, 71-72

ORANGE-AID case study, 153-156 organizational issues with, 72-73 and organizational process assets, 80-83 overview of, 76

and PMI OPM 3 maturity models, 67-68

PMI PMBOK standard for, 74-77

preliminary project scope statement development in,

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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