Value of Failure!

Students Course!

Module 4: Preventing Failure!

Module 4: Preventing Failure!
Content!

1. Project Management!
2. Basics of risk management!
Module 4: Preventing Failure!
1. Project management!
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• Project: The black box of project management!

Project Idea Project Management Completion / Operation

• Project management processes and tools help the project manager and
team to organize, document, track and report on project tasks and progress!
Module 4: Preventing Failure!
1. Project management!
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• Project: What is a project?!

– Elements of a project!
• Includes an element of something new!
• Has a beginning and an end!
• Often interdisciplinary and as such involves people with differing
backgrounds!
Module 4: Preventing Failure!
1. Project management!
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• Background: What is project management!

– Definition!
• The application of knowledge, skills, tools and techniques to project
activities in order to meet or exceed stakeholder needs and expectations
from a project!
• Project Management is the process of defining, planning ,organizing,
leading and controlling the development of a project!

– Basic elements of project management!

• Project scope!
• Deliverables!
• Roadmaps!
• Roles and Responsibilities!
• Communication procedures!
• Processes!
Module 4: Preventing Failure!
1. Project management!
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• Background: Why use project management tools and techniques?!

– Use of project management!

• Focus and clarify our thinking so that we proceed in a systematic, effective,
and efficient manner!
• Identify everything that needs to be considered and done to reach a goal
(includes what is to be communicated and to whom)!
• Identify who will do what and time frames!
• Reduce the confusion, frustration, backtracking, and errors that can be
associated with developing or introducing something new!
Module 4: Preventing Failure!
1. Project management!
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• Project Framework:!
Initiation! Preparation and Planning! Execution and Controlling! Closure!

Track
& Control

• Scope Management!
• Workplan Management!
• Resource Management
Definition / Planning
Scope / and (Time, Cost, People)! Completion &
Start-up • Deliverable Mgmt! Reporting
! Requiremen Resource Assessment
! ts Allocation • Quality Management!
• Transition Plan!
• Int/Ext Vendor
Management!

Review

Risk & Issue Management

Communication Management
Module 4: Preventing Failure!
1. Project management!
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• Phases of project management: Four different phases!

1. Initiation!
2. Preparation and Planning!
3. Execution and Controlling!
4. Closure!
Module 4: Preventing Failure!
1. Project management!
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• Phases of project management: Phase 1 – Initiation!

– Description!
• Process in which activities are performed to asses the size, scope, and
complexity of the project and to establish procedures to support later
project activities!

• Depending on the project some of the following activities might be

unnecessary!

– Activities!
• Establish a project initiation team!
• Establish a relationship with the important stakeholders!
• Establish a project initiation plan!
• Establish management procedures!
• Establish project management environment and project workbook!
Module 4: Preventing Failure!
1. Project management!
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• Phases of project management: Phase 2 – Preparation and Planning!

– Description!
• The Project Planning provides an overall framework for managing Project Costs
and schedules. !

• Project Planning takes place at the beginning and at the end of each Project
Phase.!

• Project Planning involves defining clear, discrete “Activities” or “Tasks” and the
work needed to complete each activity!
– Activities!
• Describing Project Scope, Alternatives and feasibility!
• Dividing the Project into manageable tasks!
• Estimating and creating a resources plan!
• Developing a preliminary project schedule!
• Developing a project communication plan!
• Determining project standards and procedures!
• Identifying and assessing project risks!
• Developing a statement of work!
• Setting a baseline project plan!
Module 4: Preventing Failure!
1. Project management!
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• Phases of project management: Phase 3 – Execution and
Controlling!

– Description!
• The third phase in project management process in which the plans created
in the prior project phases are put to action!
• If you develop a high quality project plan, it is much more likely that the
project will be successfully executed!

– Activities!
• Executing baseline project plan!
• Monitoring project progress against baseline plan !
• Monitoring changes to baseline plan!
• Maintaining the project workbook!
• Communicating the project status!
Module 4: Preventing Failure!
1. Project management!
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• Phases of project management: Phase 4 – Closure!

– Description!
• The final phase of project management process which focuses on bringing
a project to an end!
• Closedown is a very important activity since a project is not complete until it
is closed and it is at closedown that projects are deemed a success or
failure!
• Projects can conclude with a natural or unnatural termination!
• Natural termination occurs when the requirements of the project have been
met and thus the project completed and is a success!
• An unnatural termination occurs when the project is stopped before natural
completion!

– Activities!
• Closing Down the Project!
• Conducting Post-project Review!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: five basic steps!

1. Start-up!
2. Define and Confirm Scope/Requirements!
3. Develop Plan and Secure Resources !
4. Track, Control, Report and Review!
5. Completion and Assessment!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 1 – Start-up!

– As you engage potential team members and stakeholders, project

initiation activities establish the scope, goals and preliminary plan!

– Key Activities !
• Document and/or confirm scope and assumptions!
• Confirm financing!
• Draft high level plan!
• Identify who needs to provide input into plan and resources!

– Possible Checklists!
• Project Start-up and Financing!

– Templates to consider!
• Project Scope, Gantt Chart and Resource Planning!
• Project role descriptions!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 2 – Confirm Scope and
Define Requirements !

– Engage your financiers and business stakeholders to confirm the project

scope and clarify business requirements. It is also the time to identify the
technical requirements with the appropriate providers (as necessary)!

– Key Activities!
• Confirm baseline project scope with financiers!
• Define, document and confirm business and technical requirements!
• Identify impact on business processes!
• Identify what’s not in scope!

– Checklists to consider!
• Financing!

– Templates to consider!
• Project Scope !
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 3 – Develop Plan and
Secure Resources!

– The initial detailed project plan will provide a project roadmap and baseline
for all team members and stakeholders. As the project evolves, the plan
may need to refined!

– Key Activities!
• Identify who needs to provide input into plan!
• Develop preliminary detailed plan based on scope, requirements, etc.!
• Identify skills sets needed to accomplish tasks!
• Develop communication plan!
• Identify and secure resources!
• Conduct pre-kick-off meeting with financiers!
• Conduct kick-off meeting !
• Conduct risk assessment with team members!
• Identify the criteria for stopping the project!
• Update detailed plan and get buy-in from team and financiers!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 3 – Develop Plan
and Secure Resources (continued)!

– Checklists to consider!
• Project Planning!
• Deliverable and Quality Assurance!
• Transition!

– Templates to consider!
• Activity list!
• Detailed project plan!
• Project Resource Plan!
• Communication matrix !
• Project Risk Assessment !
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 4 – Track, Control,
Reporting and Review!

– Once you kick off the project, the track, control, reporting and review
activities will be iterative and comprise the bulk of the project management
tasks!

– Key Activities!
• Implement communication plan!
• Hold regular team meetings to:!
– share progress/status!
– identify/resolve issues!
• Hold formal sponsor updates!
• Keep your manager informed!
• Keep stakeholders informed!
• Monitor progress and report status!
• Monitor risks and take action as necessary!
• Identify and manage issues!
• Manage scope and track changes!
• Update plan as needed !
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 4 – Track, Control,
Reporting and Review (continued)!

– Checklists to Consider!
• Project planning!
• Financing!
• Transition!

– Templates to Consider!
• Project scope change!
• Communication matrix!
• Project status snapshot!
• Detailed Project Plan!
• Risk Assessment!
• Issue Log!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 5 – Completion and
Assessment!

– The following activities will help to ensure a smooth transition and

leverage lessons learned for future projects!

– Key Activities!
• Develop a cutover plan or checklist, if applicable!
• Complete documentation, training, and knowledge transfer!
• Conduct final project review!
• Conduct sponsor sign-off!
• Transition to support/service organization or next project team!
• Close-out final tasks and issues!
• Conduct lessons learned!
• Celebrate success!
Module 4: Preventing Failure!
1. Project management!
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• Alternative project management structure: Step 5 – Completion and
Assessment (continued)!

– Checklists to consider!
• Transition!
• Project Closeout!

– Templates to consider!
• Issue log!
• Detailed project plan!
• Communications Matrix!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: Things that help successful project
management!

– Work Breakdown Structure (WBS)!

– Gantt Charts!
– Network Diagrams (PERT/CPM)!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: Work Breakdown Structure (WBS)!

– Description!
• Project must be divided into manageable tasks and then logically order
them to ensure a smooth evolution between tasks.!
• The definition of tasks and their sequences is referred as the Work
Breakedown Structure (WBS)!
• WBS is essential in Planning and executing the Project because it is the
foundation for developing the Project Schedules !
(PERT / and GANTT chart) for identifying Milestones in the Scheduling and
for managing Costs!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: Work Breakdown Structure (WBS)!

– Example (IT-Project)!

Phase! Duration in days! Number of Resources!

1.0 Project Planning Phase!

1.1 Define the problem!
1.1.1 Meet with users! 2! 2!
1.1.2 Determine scope! 2! 2!
1.1.3 Write statement of business benefits! 1! -!
1.1.4 Define statement of system capabilities! 1! -!
1.1.5 Develop context diagram! 1! -!
1.2 Produce the project schedule!
1.2.1 Develop work breakdown schedule! 3! 2!
1.2.2 Estimate resources, durations, and predecessors! 2! 2!
1.2.3 Develop PERT chart and Gantt chart! 2! 2!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: GANTT Chart!

• Description!
• A graphical representation of a project that shows each task as a horizontal
bar whose length is proportional to its time for completion!
• A GANTT chart is a horizontal bar chart that illustrates a project schedule!
• In the GANTT chart time is displayed on the horizontal axis and the tasks/
activities are arranged vertically from top to bottom, in order of their start
dates!
• A detailed GANTT chart for a large project might be quite complex and
hard to understand. To simplify the chart project manager can combine
related activities into one task!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: GANTT Chart!

– Example!
Objectives 2015 2016
A! R&D/Testing Specific Aims Jul Aug Sep Oct Nov Dec Jan Feb Mar April May June
1! AIM 1: Prototype Development (e.g.)
1,1! Sub Task
1,2! Sub Task
2! AIM 2: Proof of Principle studies (e.g.)
2,1! - initial experiment A
2,2! - initial experiment B
3! AIM 3
3,1! Sub Task
3,2! Sub Task
4! AIM 4
4,1! Sub Task
4,2! Sub Task
B! IP/Commercialization Strategy
1! Goal 1: IP/Commercialization Meeting (e.g.)
2! Goal 2: Provisional patent filing (e.g.)
3! Goal 3: etc
C! Regulatory Strategy
1! Goal 1: Initial Regulatory Planning w Consultant
2! Goal 2: Pre-IDE/Kickoff Meeting w FDA
3! Goal 3: Regulatory Submission
D! Follow on Funding Plan
1! Business Plan Development
2! Apply for additional grant(s) (A, B, C) (e.g.)
3! Engage Commercial partner
4! Sub Task

Completed!

Projected!
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: Network Diagram!

– Description!
• Is a graphical depiction of Project tasks and their inter-relationships.!
• The distinguishing feature of a Network Diagram is that the ordering of
Tasks is shown by connecting with its predecessor and successor tasks!
• Network Diagramming is a Critical Path Scheduling Technique used for
controlling resources. !
• CRITICAL PATH SCHEDULING !
• A scheduling technique whose order and duration of a sequence of task
activities directly affect the Completion Date of a Project !
Module 4: Preventing Failure!
1. Project management!
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• Important tools to use: Network Diagram!

– Example: House construction!

Install rough!
electrical & plumbing!
6! 8! 11!
Install!
finished!
plumbing!
Pour!
Install!
basement! Install! drywall!
floor! cooling &!
7! heating!
Install drains!
10! Install! 12!
Erect! 9! Lay! kitchen!
equipment!
frame & roof! flooring!
Paint!
1! 2! 3! 4!
! Excavate & Pour foundation!
pour footings!
! Lay!
brickwork! Finish!
carpeting! 16!
Finish!
5! electrical!
work!
Finish!
roof!

Lay!
storm!
drains! 14! 13! Finish!
18!
floors!
Install!
roof!
drainage!
Pour!
walks;!
Finish! Landscape!
grading!
15! 17!
Module 4: Preventing Failure!
Content!

1. Project Management!
2. Basics of risk management!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Definitions: Important terms around risk management!

– Risks: !
• Risks are potential events that have negative impacts on a certain tasks or
project (e.g. safety, technical performance, cost or schedule)!

– Complex function of probability, consequences and vulnerability!

– Risks can be reduced but never eliminated!
!
– Risk Assessment: !
• Risk assessment and risk analysis can be defined as a set of systematic
methods to:!
– Identify hazards!
– Quantify risks!
– Determine components, safety measures and/or human interventions important for the task !

• Risk analysis is teamwork!

– Ideally risk analysis should be done by bringing together experts with different
backgrounds!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Definitions: Important terms around risk management (continued)!

– Risk Management: !
• Risk Management comprises purposeful thought to the sources, magnitude,
and mitigation of risk, and actions directed toward its balanced reduction!

– The same tools and perspectives that are used to discover, manage and reduce
risks can be used to discover, manage and increase project opportunities!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk management: What it is about!

– Risk Management: !
• Risk management is a continuous and iterative decision making technique
designed to improve the probability of success. It is a proactive approach
that:!

– Seeks or identifies risks!

– Assesses the likelihood of these risks!
– Assesses the impact of these risks!
– Identifies the most significant risks !
– Develops and chooses mitigation options to implement!
– Tracks progress to confirm that cumulative project risk is indeed declining!
– Communicates and documents the project risk status!
– Repeats this process throughout the project life!

Source: NASA SE Handbook 1995 section 4.6!

 
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk management: Types of risks addressed by risk management
(Example of NASA Space-Shuttle Projects)!

Risk Type! Examples!

Technical Performance Risk! Failure to meet a technical requirements or specifications!

Cost Risk! Failure to stay within a cost cap for the project!

Programmatic Risk! Failure to secure long-term political support!

Schedule Risk! Failure to meet a critical timeframe!

Liability Risk! Failure to work properly over time!

Regulatory Risk! Failure to secure proper approvals !

Operational Risk! Failure of product during operation time!

Safety Risk! Hazardous material failures !

Supportability Risk! Failure to resupply important broken parts!

Source: Lisa Guerra of NASA’s !

Exploration Systems Mission Directorate !
!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk management: Other factors to consider in assessing risk !
(but not limited to)!

– Factors to consider:!
• Complexity of management and technical interfaces!
• Design and test margins!
• Availability and allocation of resources such as mass, power, volume, data
volume, data rates, and computing resources!
• Scheduling and manpower limitations!
• Ability to adjust to cost and funding profile constraints!
• Data handling, i.e., acquisition, archiving, distribution and analysis!
• Available facilities!

Source: Lisa Guerra of NASA’s !

Exploration Systems Mission Directorate !
!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk Identification: How to identify risks!

– Possible sources to identify risks:!

• Risks are identified by the project team, peer reviews, lessons from past
projects and expert review!
!
– Lessons learned from past should be captured systematically:!
• Lessons from past projects are captured via ‘trigger questions’, or
questions that challenge a development strategy or design solution!

– Risk identification is an on-going task:!

• The project risk status and top ten risk list are reviewed periodically and at
the project milestone reviews!

Source: Lisa Guerra of NASA’s !

Exploration Systems Mission Directorate !
!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk Identification: Learning from the past!

– Examples of Trigger Questions!

• Have requirements been implemented such that a small change in
requirements has the potential to cause large cost, performance or
schedule system ramifications?!
• Do designs or requirements push the current state-of-the-art?!
• Has the concept for operating, maintaining, decommissioning or disposal of
the system been adequately defined to ensure the identification of all
requirements?!
• Has an independent cost estimate been performed?!
• Is the schedule adequate to handle the level of requirements or objectives
changes that are occurring or are likely to occur?!
• Have the necessary facilities for environmental test been identified and
availability problems been resolved?!

Source: Lisa Guerra of NASA’s !

Exploration Systems Mission Directorate !
!
Module 4: Preventing Failure!
2. Basics of risk management!
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• Risk Identification: While each project has unique risks, underlying
sources of risks can harm every project!

– Examples of underlying risks:!

• Technical complexity - many design constraints or many dependent
operational sequences having to occur in the right sequence and at the
right time!
• Organizational complexity - many independent organizations having to
perform with limited coordination!
• Inadequate margins or reserves !
• Inadequate implementation plans!
• Unrealistic schedules!
• Total and year-by-year budgets mismatched to the actual implementation
risks!
• Over-optimistic designs pressured by expectations!
• Limited engineering analysis and understanding due to inadequate
engineering tools and models!
• Inadequately trained or inexperienced project personnel!
• Inadequate processes or inadequate adherence to proven processes!

Source: Lisa Guerra of NASA’s !

Exploration Systems Mission Directorate !
!
Module 4: Preventing Failure!
Learned!

• What we discussed today!

– different techniques of project management!
– techniques of risk assessment!
– helpful tools like GANTT Charts, WBS, network diagramms!

• Thank you for your attention!

!