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+ - ESD.36J System & Project Management Lecture 1 Course Introduction Instructor(s) Prof. Olivier de Weck Dr. James Lyneis Mr. Patrick Hale 4-Sept 03

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Page 1: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

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ESD.36J System & Project Management

Lecture 1

Course Introduction

Instructor(s)

Prof. Olivier de Weck

Dr. James Lyneis

Mr. Patrick Hale

4-Sept 03

Page 2: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Today’s Agenda+

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� Welcome � Topic Introduction � Course Schedule � Project Introduction � SloanSpace

� Around the Room � Questions?

4-Sept 03 - ESD.36J SPM 2

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Introductions+

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� Olivier de Weck � S.M. Industrial Engineering – ETH Zurich ’93 � S.M. ’99 Ph.D. ’01 Aerospace Systems – MIT � Assistant Professor – dual appointment AA and ESD � 1993-1997 Engineering Program Manager Swiss F/A-

18 Project, McDonnell Douglas, STL � Research: Multidisciplinary Design Optimization (MDO)

4-Sept 03 - ESD.36J SPM 3

Page 4: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Introductions+

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� James Lyneis � S.B.s MIT – EE and System Dynamics (’71) � PhD – Univ. of Michigan (Mgt. Science; ’74) � Sloan Faculty ’74-’78; Senior Lecturer ’98­� Consultant with Pugh-Roberts Associates, ’78-’02,

working on many project models

Undiscovered Rework

Known Rework

Work Really Done

Work To Be Done

Progress

Rework Discovery

People Productivity Quality

4-Sept 03 - ESD.36J SPM 4

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Introductions+

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� Pat Hale � S.M. Naval Architecture, O.E. (Ocean Engineer)- MIT ’84 � 21 years U.S. Navy, Engineering Duty Officer

(submarine design & construction)� Director, Systems Engineering, Draper Laboratory � Director, Systems Engineering, Otis Elevator Company � Board of Directors, Executive Committee, INCOSE

’98-Present

4-Sept 03 - ESD.36J SPM 5

Page 6: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Course Title+

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System and Project Management ESD.36J

official course title

Managing the Product/System Development Process ESD.36J

Alternate, unofficial course title

4-Sept 03 - ESD.36J SPM 6

Page 7: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Project Definition+

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� A Project is a series of tasks that� Have a specific objective to be completed

within certain specifications � Have defined start and end dates � Have funding limits � Consume resources

Source: Kerzner

4-Sept 03 - ESD.36J SPM 7

Page 8: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

System Definition+

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� A System is a set of physical or virtual objects whose interrelationships enable a (set of) desired function(s). � more than the sum of its parts � Undesired (emergent) functions often exist � System complexity scales with the number of

objects as well as the type and number of interconnections between them

� Instantaneous functions, versus “lifecycle” properties (scalability, flexibility, robustness …)

� A Product is a “System” sold for profit

4-Sept 03 - ESD.36J SPM 8

Page 9: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Project Management+

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� Project Management comprises a body of methods and tools that facilitate the achievement of project objectives � Within time � Within cost � At the desired performance/specification level � While effectively and efficiently utilizing the

assigned resources

4-Sept 03 - ESD.36J SPM 9

Page 10: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

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-Research and Development

Research, Technology

DRDevelopment

� Unstructured methods � Difficult to plan � Unpredictable

Product/SystemDevelopment

� Structured methods � Generally planned � Predictable

Our focus is on

development. downstream

4-Sept 03 - ESD.36J SPM 10

Page 11: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Why is (S)PM hard?+

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� Main obstacles to easy project success:� Poorly defined project objectives or shifting

system specifications � Mismatch between project objectives and

appropriated funding � ….. What do you think? …

4-Sept 03 - ESD.36J SPM 11

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Relationship with other SDM core courses (simple view)

� System Architecture (ESD.34) is about the “DNA” of the ARTIFACTS themselves – atomic unit: object � Concept, form, function, decomposition …

� Systems Engineering (ESD.33) is about the PROCESSESto understand and design systems – atomic unit: process � QFD, Requirements Analysis and Verification, …

� Integrating the Lean Enterprise (ESD.61J) is about thePEOPLE and ORGANIZATIONS – atomic unit: person � Principles of lean manufacturing, organizational models

� System Project Management (ESD.36) is about how tobest utilize resources to implement a set of objectives –atomic unit: task � CPM, DSM, System Dynamics

4-Sept 03 - ESD.36J SPM 12

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Relationship with other SDM core courses (complex view) Source: Lagace

-4-Sept 03

SPM selection

DSM

pl

ling

PERT/CPM and

ing

the PDP

Org Processes

Risk and si

Definitions i

i lly

Ops Manage

thei

il

iquesii

i

i

i

anal

ision model

lperfect info

Utility

distributions

i

analTi

-A

ii

Fl

and securi

and reliability

SE

l

Conflictingi

l

Linear programming

IP modeling

linear

Optimization,

debt Leases

& A/R

securities Financial

cash flow

concepts

liabilities

-A

i

ition l

issues

form

ing,

ESD.36J SPM

PDP process Change

management

Project anning

Project preparation

Critical chain schedu

product launch

Product and process match

Project management as competitive tool

All other topics

management

System dynamics System modeling

mulation

SysArch

Principles of SysArch Architecture concepts

Processes around architecture Analyz ng architectures

Requirements development

Frameworks for think ng holistica

Types of processes

JIT Manufacturing Cellular Manufacturing

Queuing systems and r management

Service Operations Process flow d agram

Continuous f ow processes

Forecasting techn

Inventory,EOQ modeling

Customer response Coord nating supply

chain compan es

Logistics systems des gn

Enterpr se resource planning

Management of constraints

Quality management and Taguch methods

Quality

Quality tools and philosophies

Marketing

ERBA

Decision ysis

Multistage dec

Va ue of

Risk Aversion

Multiattribute utility theory

Probability theory

Probability

Availability

Data and epistem c uncertainty

Probabilistic risk assessment

Cost benefit ysis Benefits me value of

money

Comparison of alternatives

Evaluat ng public activit es

owdown of requirements

Verification and validation

Safety

ty

Robustness

Techno ogy development strategy

Experimental Design

System lifecycle costs

SysOpt

object ves Robust

optimization

System optimization

Portfolio optimization

Production p anning Workforce scheduling

Location modeling

Revenue optimization

Integer programming

Nonprogramming

Heuristics

heuristics and uncertainty

Fin Accounting Long term

Cash

Long term assets

Marketable

Annual reports

statements Statement of

Product Costing Revenue recognition

Basic cost

Long term investments

Current

Time value of money

Activity based costing

Inventory Management

Trade stud es

Architecture of specific systems

Hierarchyand decompos

Creativity

Ambiguity Comp exity

Synthesis Corporate

strategy

Liability & IP Role

of regulation

Function

Role of manufactursupply chains

Legacy & Platform systems

13

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System Project Management ESD.36 Framework

Project Preparation Project

Planning

Project Adaptation

Project Monitoring

Enterprise has chosen what product or system to develop

Ref: Warmkessel 4-Sept 03 - ESD.36J SPM 14

Page 15: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

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- Course Objectives� Introduce advanced methods and tools of Project

Management in a development context � Probabilistic CPM/PERT � Design Structure Matrix � System Dynamics � Risk Management � Earned Value Tracking

� Understand how methods work (strengths, limitations) � Industry Examples � Case Studies

� Learn from each other � Class Discussions � Project Assignments

� Æ Improve development projects at your workplace 4-Sept 03 - ESD.36J SPM 15

Page 16: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Conceptual Schedule+

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� Module 1 (9/4-10/2) � Project Management Methods and Tools

� Module 2 (10/7-10/23) � Strategic Issues and Industrial Applications

� Module 3 (10/28-11/20) � Project Monitoring and Adaptation

� Module 4 (11/25-12/9) � Project Presentations and Summary

4-Sept 03 - ESD.36J SPM 16

Page 17: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Class

(refer to syllabus)

Trip

Topic

3-hour classes

in

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No Class Note two

December

Schedule

12/4 Presentations 212/2 Presentations 1

11/27 Thanksgiving11/25 No Class

11/20 Success Factors11/18 Project Metrics

11/13 Concurrency11/11 Veterans Day

10/30 Risk Management

10/23 Case 3: H/W&S/W10/21 Case 2: H/W

10/16 Case 1: S/W10/14 ICE Methods

10/9 PDPs10/7 Strategic Issues

10/2 Managing Dynamics

9/23 System Dynamics 1

9/16 Iterations DSM

9/11 Task-based DSM9/9 Network Techniques

Business

Change 11/6 Project Adaptation 11/4 Project Tracking

10/28 Critical Path

9/30 Project Simulation

9/25 Feedback & Rework

9/18 Project Organization

4-Sept 03 - ESD.36J SPM 17

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Readings+

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� Required Readings � Contained in Class Reader Packet ($27) � Read ahead of lecture ~ 1 paper/lecture � Next: “The ABC’s of CPM” for Tue 9/9 � Typically 10-12 page papers

� Optional Readings

� Supplemental Background � Mainly Textbooks

4-Sept 03 - ESD.36J SPM 18

Page 19: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Case Studies+

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� Case 1: Software (X, Microsoft Office 2000) Christos Sermpetis

� Case 2: Civil Engineering (Boston “Big Dig”) - Fred Salvucci

� Case 3: Complex Vehicle Development (Submarine case) - Pat Hale � 1st SSN 688i (improved) construction &

integration- under ice capability, AN/BSY-1 integrated digital combat/weapons system

4-Sept 03 - ESD.36J SPM 19

Page 20: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Homework Assignments+

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� HW1: Network Planning Techniques – out 9/9 � HW2: Task based DSM � HW3: Design a Project Organization � HW4: SD – simulate rework cycle � HW5: Case study comparison � HW6: SD – project adapation

� Ensure uniform learning across class � Front loaded (modules 1 & 2), focused on methods � Can be solved in pairs of two � Require ca. 6-9 hours per person

4-Sept 03 - ESD.36J SPM 20

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Project Assignment+

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� Apply Design Structure Matrix (DSM) method, generally at your sponsor company site

� System Dynamics Project (incl. simulation) � Survey of Methods & Tools in company � Analyze Success or Failure of a significant Past

Product/System Development Project � Can work in teams of up to three � 2 page project proposals due on 9/11 � Project Update on 10/16 (email) � Presentation in class in December

4-Sept 03 - ESD.36J SPM 21

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123456789

101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960

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- Previous Project Examples1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Set customer target Estimate sales volumes Establish pricing directionSchedule project timelineDevelopment methods

DSM Macro targets/constraintsFinancial analysisDevelop program mapCreate initial QFD matrixSet technical requirementsWrite customer specificationHigh-level modelingWrite target specificationDevelop test planDevelop validation planBuild base prototypeFunctional modelingDevelop product modules Lay out integrationIntegration modelingRandom testingDevelop test parametersMap Finalize schematicsValidation simulation Reliability modelingComplete product layout

Project

Semi-Continuity verification

Conductor Design rule check Design packageGenerate masksVerify masks in fabRun wafersSort wafersCreate test programsDebug productsDevelopment Package products Functionality testingSend samples to customersFeedback from customersVerify sample functionalityApprove packaged productsEnvironmental validation Complete product validationDevelop tech. publicationsDevelop service coursesDetermine marketing nameLicensing strategyCreate demonstrationConfirm quality goalsLife testingInfant mortality testingMfg. process stabilizationDevelop field support planThermal testingConfirm process standardsConfirm package standardsFinal certificationVolume productionPrepare distribution networkDeliver product to customers

4-Sept 03 - ESD.36J SPM 22

• x x • x • x x • x • x •

• x x • x

x x • •

x • x x • x x • x x x x x x • O O O O

x x x x • x x x x • x x

x x x x x • x x x x x •

x x • x x x • O O O O O O

x x x • O x x x • x x x x x x x • x

x x • x x x •

x x • x x O O O O O x x x x • x x

x • x x x • x x

x x • x x x •

x x x x x • O O O O x • x O x x x •

x • x O x •

x • x x x x x • O O O O

x x x • x x x •

x x x x • x •

x • x x •

x x x x • x x •

x x • x x x x • x

x • x x x x • x x x x •

x x x • x x x • x x x x x x • x

x x x • O O x x •

x x x • x • x x

x x x x x • x x •

x • x x x x •

x x x x •

x = Information Flows = Planned Iterations O = Unplanned Iterations • = Generational Learning

Concurrent Activity Blocks

Potential Iterations

Generational Learning

Sequential Activities

x x x x x x x

x x x x x

x x xx x

O O O O

x x x x x x x x

x x x xx x x x x x x x x x O O O O

x x x x x x x x x x x x

x x x x

x x x x x x x x x x xx x x

x x x xx x x

x x x x

O O O x x x

O O O

x x

x x x

x x x x

x x x x

x x x x x x x x x xx x

x x x x x x x x x x

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System Dynamics Example+

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150

100

50

0

What caused the difference in performance between these two programs at the same company?

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

4-Sept 03 - ESD.36J SPM 23

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- ESD.36J SPM 4-Sept 03 24

External factors; management responses; side effects

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-Understanding the sources of change -­

ity

ApparentProgress

Customer Changes Schedule

Acceleration

Work, Worksite Congestion,Coordination Problems,

Employee Skill

Fatigue,Burnout

Overtime

Hiring

ScopeGrowth

Undiscovered Rework

Known Rework

Work Really Done

Work To Be Done

Progress

Rework Discovery

People Productiv Quality

Out-of-Sequence

Morale Problems

Average

and Quality

Page 25: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Analyze in-depth a past project+

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� E.g. Space-Transportation-System (STS) Development Project 1970­1981 � Background, Setting of Project

Objectives� Vehicle Architecture, Contractor

Structure, Project Plan� Schedule delays: 3 years (incl. 1 year

for Thermal Protection System)� Columbia Accident Investigation Board

(CAIB) report released last week� Bearing on future development of

Shuttle replacement Shuttle Processing

4-Sept 03 - ESD.36J SPM 25

Page 26: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Grading+

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� Homeworks 40% � Project Assignment 40% � In-Class Participation 20%

� Total 100%

4-Sept 03 - ESD.36J SPM 26

Page 27: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Around the Room+

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� Please introduce yourself � Name � Company and Job � Project management experience � What you hope to learn in this class

4-Sept 03 - ESD.36J SPM 27

Page 28: ESD.36 L1 Introduction - Massachusetts Institute of …dspace.mit.edu/.../lecture-notes/l1_introduction.pdfProbabilistic CPM/PERT Design Structure Matrix System Dynamics Risk Management

Remember+

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� Read the syllabus! � Answers many of your questions

� Purchase the reading packet. � Reading for next class “The ABC’s of CPM”

� Sign up on server. � Non-SDM students need permission of

instructor to enroll. � Use your name cards every class.

4-Sept 03 - ESD.36J SPM 28