Amberhill Associates Ltd ©️Chris Robinson

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Lost opportunity cost…..#pmot…#in

Posted on May 3, 2011 by admin

Bizplan03

In the last post we discussed risk aversion. One of the pitfalls of being too risk averse is lost opportunity cost.

In New Product Development Project Managers constantly balance time to market with product quality, resource management, project costs & a host of other competing factors.

In an effort to develop the perfect product with maximum process capability and meeting 100% customer satisfaction the real cost of lost opportunity is often missed.

Consider a product which on release will generate, on average, $100,000 profit a month for 12 months. If the product release is delayed by 1 month the lost opportunity cost can be estimated as $100,000. What should be emphasised is that this amount will NEVER be recovered. If the product lifecycle is estimated as being 12 months depending on the competition then releasing the product 1 month late reduces the lifecycle to 11 months.

If that lost $100,000 was invested at a compound rate of 5% per year over ten years it would be worth $163,000 !

So here are some tips to minimize lost opportunity cost:-

1) Invest in the project at the front end, providing ample resource and support.

2) Fix the product spec before the end of the design phase.

3) 100% perfection is great but 95% is normally good enough for most customers.

4) Make it easy for engineers by setting SMART (Specific, Measurable, Aggressive, Realistic, Timely) targets.

5) Publicise Project Milestone targets.

6) Communicate Lost Opportunity Costs.

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project managers and business consultants

So what’s the plan…….#pmot #in

Posted on February 22, 2011 by admin

project-planning As a rough guide a Project Manager should put 70% effort into planning a project and 30% running it.

At first glance this statement may appear to be the wrong way round but experience shows that the planning phase of a project is by far the most critical one.

Here are some attributes of a well developed plan:-

* It should flow from start to finish.

* There should be a series of linked tasks from start to finish.

* Each task should have a named resource assigned to it.

* Everyone assigned to a task should have agreed and committed to the timescale.

* There should be a clearly identified Critical Path.

* The plan should be visible to key stakeholders in the organization.

* It should be reviewed and updated regularly.

Once all of the above has been fulfilled the management of the project becomes a relatively easy task.

If you need help planning your key project get in touch now

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project managers and business consultants

10 tips to get that problem project back on track #pmot #in

Posted on February 2, 2011 by admin

1) Create Space – nothing clouds judgement more than pressure to create a fast solution. Tell stakeholders you are assessing the situation and will provide an update in 1 weeks time.

2) Talk to everyone involved in the project and get their perspective. Make it an informal chat, reduce the pressure and you will get more honesty.

3) When you have identified what the problem is get the team together to Brainstorm possible solutions. Try an Ishikawa diagram to clarify whether the problem is with men (people) , machines, method, materials or environment (external factors)

4) Pick the top three possible solutions and start experimental work to evaluate success.

5) Implement the solutions in the timeline to evaluate timescales.

6) Agree with the Team a primary solution and a contingency plan.

7) Inform stakeholders of the revised timescale.

8) Execute the plan, keep a close watch on progress and issue daily updates if required.

9) On completion hold a “lessons learned” meeting to minimize the chances of repetition.

10) Celebrate Success – take the team for a beer or a sticky cake 😉

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project managers and business consultants

#Zen & the Art of Project Management* #pmot #in

Posted on January 29, 2011 by admin

buddha Don’t ask me what “Zen” is.

I am not qualified to answer such a question. All I can say is that anyone who studies Zen applies it to their daily lives and work.

As a project manager I apply Zen in the following ways:-

1) When constructing a project plan I think of the plan as a river flowing to the sea. It never goes uphill and avoids major obstructions. It has a natural rythym to it with everything happening in the right order. I check it once, twice, thrice then I get the Team to review it.

2) When allocating timescales I ask the person who is actually doing the task. I might push them to do it quicker but I need timescales which are aggressive but realistic. I need that person’s commitment.

3) I never lie to the customer. I always keep them appraised of progress even if its bad news. Once trust is lost it’s gone forever.

4) I always offer the customer options. If my timescale has slipped I offer alternative solutions.

5) I am neither overly optimistic nor pessimistic.

6) I tell Senior Management the bad news. They dislike obfuscation even more.

7) I never allow myself to be bullied into giving unrealistic timescales. What’s the point, I will only look stupid when we can’t meet them.

8) I am open & honest with my team and expect the same in return.

9) “Best laid plans of mice & men gang aft agley” – say no more!

10) Calmness in the eye of the storm is either a sign of great leadership or incredible stupidity.

* Recommended reading: Robert M Pirsig – Zen & the art of motorcycle maintenance.

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project managers and business consultants

10 ways to succeed as an Interim…#pmot #in

Posted on January 23, 2011 by admin

consultants5 Operating as an Interim Project Manager requires a different skill set to that of a regular employee. Here are 10 ways to guarantee success as an Interim….

1) Be flexible – the more flexibility you can exhibit in terms of daily rate, location and job role the more opportunities will come your way.

2) Put the Client first – always act in a professional manner and put the needs of the client first. This will pay off to your benefit in the long term.

3) Make a great impression – find something which needs fixing early on and do it, then tell everyone you’ve done it. A good impression early on reassures the client they have made the right choice.

4) Fit in to the Culture – If everyone wears a suit and a tie do likewise, if its casual dress on a Friday adopt this code. If you can fit in to the culture you will become “part of the furniture”

5) Avoid politics – this is one of the many benefits of interim work, you really don’t need to get involved.

6) Add Value – whatever the role make sure the client is getting their money’s worth.

7) Get on with everyone – it’s not that difficult, you’re not going to be there forever so don’t make enemies.

8) Act as a guest – you are a guest of your client, act like one.

9) Know when its time to g0 – don’t prolong your term for monetary gain, when your job is done leave. The client will appreciate this more than anything and seriously consider you for a future role.

10) Network – take the opportunity to expand your network and get some referrals.

Do you have any more tips for interims ?

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project managers and business consultants

Are you earning your value ? #pmot #in

Posted on January 18, 2011 by admin

Earned Value is a term which allows us to determine where we are in a project in terms of progress against plan. If we talk about expended cost at a particular moment of time we have no idea whether we are ahead or behind the plan unless we measure the amount of work done and the time expended doing it.

Earned Value allows us to make a measured judgment and may be defined as “The value of work performed expressed in terms of the the approved budget assigned to that work for a scheduled activity” – PMBOK

Earned Value Technique integrates the time, cost and work done.

EV = Earned Value – Estimated Value of the actual work completed.

AC = Actual Cost – Actual cost charged for the work done so far.

CV = Cost Variance – Difference of Earned Value minus Actual Cost.

CV = EV – AC

A positive value means UNDER budget.

A negative value means OVER budget.

Earned Value Technique is a useful tool for measuring progress against plan and for helping to control budget effectively.

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1o ways to invigorate teamworking #pmot #in

Posted on December 18, 2010 by admin

Most people involved in New Product Development agree that best results are obtained when people work effectively in teams so here are 10 guaranteed ways to improve teamworking:-

1) Locate the team together in the same room. – If people sit together they work together. It is essential that the primary form of communication is face to face. There should be some allowance for privacy but any cubicle walls should be below head level.

2) Locate the Project Manager in the same room – As the Project Manager there may be a tendency to remain distant or aloof from the team. This is counterproductive and wrong. The Project Manager should be located in the same room as the team. If She has her own office the door should be left open to allow ready access. If She sits with the team there should be a private office available for personal discussion.

3) Hold regular team meetings – although there may be some resistance to this (too much work etc) it is essential that the team meet at least once a week to discuss project status.

4) Issue meeting minutes – It helps communication if everyone knows exactly what is expected of them following the team meeting. The minutes also act as a good crib for next weeks meeting.

5) Promote a democratic culture – environments where people feel free to speak their minds openly and honestly lead to faster problem solving and decision making.

6) Promote team activities – 5 a side football or similar activities are great if everyone is fit and active but be careful to choose something EVERYONE can take part in otherwise you will alienate some team members and defeat the purpose. I have always found bowling to be a great choice which just about everyone can do.

7) Eliminate the Blame Culture – resist every opportunity to blame others and take responsibility for your own decisions. Blame Cultures are endemic in some organizations and will take time to be eradicated but the changes in performance will be immeasurable.

8) Listen twice as much as you talk – we all know the old saying about empty vessels making the most noise and no where is this more true than in Project Management. Try really listening to people and see their reaction.

9) Put the Structure in place – whether its based on PRINCE2, Project Management Institutes PMBOK or some alternative combination, Teams are more effective when they no what the rules are.

10) Keep a sense of humour – as the Project Manager nothing upsets or disorients the Team more than a panicky Manager. Keep a sense of perspective, enjoy the fun bits and lead by example.

10 tips for faster leaner new product development #in #pmot #lean

Posted on December 11, 2010 by admin

new-product-development

Bringing New Products to Market faster & more efficiently is even more critical as product life-cycles shrink so here are 10 tips for faster, leaner New Product Development:-

1) Nail the spec early – the sooner the product spec is finalised the smoother & faster the development will be. Less time & effort will be wasted debating the minutiae if the spec is closed early.

2) 5s the area – Apply the Lean principles of 5s (see earlier post) to remove unnecessary distraction and promote “clear thoughts”

3) Promote re-use in Design – to reduce design effort and make best use of proven and qualified technology.

4) Parallel Planning & Design – Design is normally the longest phase in New Product Development so why wait until the end of Planning to start Design. Start Design in parallel and adapt the plan when more is known about the length of the design phase.

5) Arrange Regular Reviews – during the Design phase and break the task into smaller “chunks”. Design is one of those tasks which has a tendency to expand to fill the time allowed for it.

6) Structure the Innovation process – ensure that Innovation board reviews are scheduled well in advance and board members have suitably qualified deputies so that stage gate reviews suffer no delays due to the absence of key personnel. The Innovation process should become Institutionalized.

7) Dedicated multifunctional Teams – are more effective than matrix teams If resource allows.

8) Design for Manufacture – manufacturing & production engineers need to be involved in the product development process to ensure a smooth transition from development to manufacture.

9) Minimize interruptions & noise – in the product development area.

10) Promote a democratic involving Management style – to increase free discussion and mutual respect.