incose pmi simplifyingcomplexprojectmanagement2015!05!05publish

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March 2015

Implementing SE and Advanced PM

in Large and Complex Projects:

The Case of A New Airport Operational Readiness Project

Prof. Dov Dori, Prof Aaron Shenhar, Ori Orhof



March 2015

לכ נים יחו לי ?נעד-אה



March 2015

Systems Engineering

,מכא.טכנולוגהנדסת מערכות היא ניהול המושתת על ידע

מערכות שתשתיתןמהנדס מערכות הוא אדם המנהל

מהקונקורד לכיפת)ולכן עליו להיות מהנדס,טכנולוגית

(.'41ע,ברזל

3



4

ORAT - Organizational Readiness and Airport Transfer



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ORAT - Operational Readiness and Airport Transfer



Complex Systems (Products) and Complex Projects

Complex SystemsMultiplicity of diverse, connected, interdependent, and

adapting components

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Complex Projects

• Structural complexity

• Uncertainty

• Urgency• Dynamics

• Socio-Political



ORAT - Operational Readiness and Airport Transfer

1st level – All airport

1. Departing passenger

2. Arriving passenger

3. Departing baggage

4. Arriving baggage

5. Departing cargo

6. Arriving cargo

7. Departing airplane

8. Arriving airplane

9. Transfer

10. Lateral processes

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2nd level – Departing pax.

1. Arriving to airport

2. Traffic and parking

3. Entering to terminal

4. Security profiling

5. Check-in

6. Check-point

7. Passport control

8. Departure hall

9. Boarding

3rd level – Check-in

1. Regular

2. Oversized baggage

3. Supersized baggage

4. Overweight

5. Animals

6. Late passenger

7. Wheelchaired

8. Unaccompanied child

9. VIP

10. Diplomat

11. …



ORAT Project – Complex Product and Complex Project

• Processes

– 10 Core processes (1st level) – ~100 Secondary processes (2nd level)

– ~700 Sub-processes (3rd level)

• Process planning

– SOP (Standard Operating Procedure)

– Procurement

– IT

– Bids (subcontracting and

concessionaries)

– Construction changes

– Recruitment

– Instruction & training

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Complex Systems

Multiplicity of diverse,

connected,

interdependent, and

adapting components

Complex Projects


• Uncertainty

• Urgency

• Dynamics

• Socio-Political



Systems Engineering “Vee Model”

9 Source: SE Handbook, 2011



Vee Model Adapted for ORAT

10



ORAT Processes = ORAT ComponentsSome Components are More Critical than the Others

• Processes

– 10 Core processes (1st level)

– ~100 Secondary processes (2nd level)


• Process planning – SOP – Standard Operating Procedure

– Purchasing

– IT

– Bids (subcontracting and concessionaries)


– Recruitment

– Instruction & training11



What is a Critical Component?

A 'critical component' is defined as a unit of work at the

subproject level which imposes exceptional risk to the

success of the project.

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What is Project Success?

Scope

ScheduleBudget

Scope

ScheduleBudget

Value

Project Governance - Efficiency

Product Management - Effectiveness

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Efficiency Vs. Effectiveness

• Product management – to do the right things – Effectiveness (Scope, Value to the Customer)

• Project governance – to do things right – Efficiency

(Budget and Schedule)

No project is ever a complete failure - it can always

serve as a bad example (Murphy’s book of laws - the futility factor )



What is a Critical Component?

A 'critical component' is defined as a unit of work at the

subproject level which imposes exceptional risk to the

success of the project.

The Success of the Project is:

1. The Efficiency of the project governance

2. The Effectiveness of the product

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Can’t see the forest for the trees

Can’t see the trees for the forest

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Components of Complex Projects / Programs



Critical Components Analysis - CCA(The risks to the project’s success)

1. The efficiency of the project governance –

Challenge (difficulty)

2. The effectiveness of the product – Vitality (importance)

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The Challenge (Difficulty) to the Project

• Uncertainty of the method (way) or goals


• Urgency

• Regulation

• Organizational Bureaucracy

• Lack of resources

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The Vitality (Importance) to the Product

• Value to the customer

• Competitive advantage

• Functional centrality

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Critical Components Analysis - CCA

1. The efficiency of the project governance – Challenge (difficulty)

2. The effectiveness of the product management – Vitality (importance)

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Criticality Vitality Challenge Process

Medium High

Low

Arriving to

airport

Medium Medium Low Traffic and

parking

High High High Check-in

(SSBD)

High High High Passport

control

Medium High Low Boarding

Low Low Low Gardening

CCA of Departing-Passenger process



The Dimension of Challenge and Vitality

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Challenge

difficulty to the completion of the

component

Vitalityimportance to the success of the product

Internal

:Solution

The level of uncertainty of the solution

required to achieve the component

:Function

How central is the component to the

functionality of the product

External

:Constraints

Demands and constraints imposed byexternal to the project elements (e.g.

regulation, bureaucracy, management)

:Value

The contribution of the specificcomponent to the competitive

advantage of the product over its

immediate competition or the value it

provides to customers and users



Constraints Value

Function

Solution

Uncertainty

Essential

Central

Marginal

Unknown-Unknowns

Known-Unknowns

Known-Knowns

LimitingRestrictingBounding

Nice-to-Have Better-Have Must-Have

External I n t e r n a l

Vitality

Effectiveness of the product

Challenge

Efficiency of the project management

The Diamond of the Sub-Project Level



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Constraints Value

Function

Solution Uncertainty

The Component’s Diamond Managerial Implications

Early start (ASAP)Finish as soon as possible

Functional Tests

Early start (ASAP)

Stakeholder management

Regulation management

Risk management

Time & budget slacks

Early start (ASAP)

Functional modelling

POC and prototyping

Management Reviews

Learning and selectionism

Late design freeze


Early start (ASAP)

Customers testing and feedback

Marketing involvementProduct prototyping



In Conclusion

• Processes

– 10 Core processes (1st level)

– ~100 Secondary processes (2nd level)


• Process planning – SOP – Standard Operating Procedure

– Purchasing

– IT

– Bids (subcontracting and concessionaries)


– Recruitment

– Instruction & training25



Vee Model Adapted for ORAT

26



Critical Components Analysis - CCA(The risks to the project’s success)

1. The efficiency of the project governance –

Challenge (difficulty)

2. The effectiveness of the product – Vitality (importance)

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Constraints Value

Function

Solution

Uncertainty

Essential

Central

Marginal

Unknown-Unknowns

Known-Unknowns

Known-Knowns

LimitingRestrictingBounding

Nice-to-Have Better-Have Must-Have

External I n t e r n a l

Vitality

Effectiveness of the product

Challenge

Efficiency of the project management

The Diamond of the Sub-Project Level



Constraints Value

Function

Solution Uncertainty

Small Diamond Managerial Implications

Early start (ASAP)Finish as soon as possible

Functional Tests

Early start (ASAP)

Stakeholder management

Regulation management

Risk management


Early start (ASAP)

Functional modellingPOC and prototyping

Management Reviews

Learning and selectionism

Late design freeze


Early start (ASAP)

Customers testing and feedback

Marketing involvementProduct prototyping

Addi i l I d i



Additional Industries:

Complex Projects of Complex Systems (Products)

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? י אם

ו בל

נים יח

כ

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נעד-ה

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Implementing SE and Advanced PM in Large and Complex

Projects

Ori Orhof ori@orhof com

incose pmi simplifyingcomplexprojectmanagement2015!05!05publish

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