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AdvancedAdvancedProject Management Project Management
ConceptsConcepts in a in a Global EnterpriseGlobal Enterprise
Grigorios Androutsopoulos Grigorios Androutsopoulos
Siemens A.E., GreeceSiemens A.E., Greece
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IntroductionMy background and my experiencesPM@Siemens
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are not enough
Siemens Focus Topic 3: TransparencyInformation is power
Outlook
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The Company
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The Company:the 3 sectors
6.7%14.2%27.8%
51.3%
Healthcare
Medical Solutions
Energy
Power Generation
Power Transmissionand Distribution
Industry
Automationand Drives
Industrial Solutionsand Services
Siemens Building Technologies
OSRAM
TransportationSystems
Cross-Sectoractivities
Siemens IT Solutionsand Services
Siemens FinancialServices
External sales of Sectors excluding Other Operations (72”4 € as of September 30, 2007)
Project Management the Siemens way
PM@Siemens PM@Siemens –– What is it?What is it?
Page 6 Grigorios AndroutsopoulosProject Managementthe Siemens way
What are the goals of PM@Siemens?
More than 50% of the global sales volume of Siemens is done in projects.Over the years, there have been a dozens of standards in Siemens project management.Successful project management is the key to the overall success of Siemens.
Thus, Siemens established the initiative PM@Siemens aiming at:Consistent Project Culture across all groupsStandards in Project Management by systematic best practice sharingImplementation of Best Practices in operative businessSufficient number of Qualified Project ManagersEfficient Profitability in Projects
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PM@Siemens is …
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Three Key Focus Areas
Project Management the Siemens way
PM@Siemens PM@Siemens –– ProcessesProcesses
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Structured Approach
Module 4: Personnel Management
Module 8: Knowledge Management
Module 10: PM Assessment
Module 9: Transfer and Implementation
Module 12:Small Projects
Module 5: Qualification
Module 6:PM Portal
What do we have to do to successfully implement PM@Siemens in our organisation?
What aspects of PM@Siemens do we need to support small projects efficiently?
How can we support everyone involved with the project with common IT?
How do we continually improve?How do we create transparency? –How do we work together to learn?
How do we developthe employees for our projects?
How do we successfully run projects?
Module 2: Contract Management
Module 3: Project Controlling
Module 7: Operative Quality management
Module 11: Project Procurement
Module 1: Processes and Roles
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The Project Lifecycle
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Project Categorization
A uniform project categorization has been defined across all Groups and Regions.
Exa
mpl
eE
xam
ple
Project Category A to FProject Category A to F
Financial
Order Value
Financial
Order Value
Contractual
Contractual Position
Contractual
Contractual Position
Technical Complexity
Clarity of Product
Technical Complexity
Clarity of Product
Organizational Considerations
Type of Project
Organizational Considerations
Type of Project
Contract
X ………
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Implications:Selection and assignment of Project Manager according his/her certification levelType and frequency of project controlling and reportingLimits of Authority (LoA) to aprove / release an offerProject assessment (PMA+ assessments)
Project Management the Siemens way
PM@Siemens PM@Siemens –– PeoplePeople
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People
BEFORE
Project Portfolio
AFTER
Project Portfolio
Our Project Managers
People
Our Project Business
Business
HR Strategy
Fit? Input
Business Strategy
A
B B
CCCCCC
D D D D D…
A A
B B B B
CCCCCCCCC
DDDDD DDDD…
Project Manager Community Certified PM‘s of all levels
Appropriately Qualified PM’s are a prerequisite for future success!
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Competence DevelopmentCompetence Development
CertifyDevelopAssess Knowledge
Test
Identify---------Recruit
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Career Model and Siemens CertificationCareer Model and Siemens Certification
PM Career model in Siemens
E
F
D
C
B
A
Level 2
Level 3
Project Manager
Senior PM
PDir
Level 1
Project Manager
Small Projects
4,7509,522PM
13,438
3,388
528
identified
6,660Total
1,728SPM
182PDir
certifiedHQ of
Groups
Regions
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Common and Common and ConsistentConsistent PM Training and PM Training and DevelopmentDevelopment
Participants in PM Curriculum (cumulated)
2687
5499
8308
10599
12902
2002 2003 2004 2005 2006
Global PM@Siemens TrainingPrograms
Project Management the Siemens way
PM@Siemens PM@Siemens –– TransparencyTransparency
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Shot Gun Analysis
“Simple and Effective method of monitoring Project Performance”
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%GM at Order Entry (%)
GM
For
ecas
t (%
)
Monitors the change in Project profitability throughout project life
Positive & Negative deviation is easily tracked
Provides clear focus on problem projects
EBIT at Order
Income
EBIT Erosion
EBIT Improvement
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Example – Project Performance
All Projects
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%GM at Order Entry (%)
GM
For
ecas
t (%
)
No. of Projects Reported = XXXTotal Volume = XXX
EBIT FC>OINo. of Projects X Corresponding EBIT Value YProject Volume Z
EBIT FC<OI No. of Projects XCorresponding EBIT Value YProject Volume Z
EBIT OI<0No. of Projects XCorresponding GM Value YProject Volume Z
“Focus on RED Projects and those getting REDDER”.Assess and Address Non-Conformance Costs!
Projects delivering EBIT Improvement
Projects generating EBIT Erosion
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PM010 PM020 PM040 PM070 PM080 PM100 PM200 PM300 PM400 PM550 PM600 PM650 PM670 PM700
acquisition phase project execution phase
Non Non ConformanceConformance CostsCostsHeavy influence in the acquisition phase
30%
15%
Key Focus AreaKey Focus Area
Project Management the Siemens way
PM@Siemens PM@Siemens –– Future DirectionFuture Direction
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PM@Siemens –Future Direction
2007
2009
2011
2008
2010
Culture Change
Engage with “ALL Functional Groups at ALL Levels” !
Maintain the cycle of “Continuous Improvement” !
Improve “Transparency” of Project Reporting
Apply “Rigorous Processes” to ALL Projects
“Qualify and Certify” our PM Community
Develop “Maturity” in our Project Processes and Organisation
“Disciplined Execution of PM@Siemens will deliver High Quality Projects, Customer
Satisfaction and Top Line Profit”
+++
Driving from “Compliance to Culture Change” !!!
““ItIt’’s what we do s what we do around herearound here””
ThankThank youyou forfor youryourattentionattention!!
Grigorios Androutsopoulos Grigorios Androutsopoulos
Siemens A.E., GreeceSiemens A.E., Greece
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Back Up
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PM@Siemens PM@Siemens –– GloballyGlobally
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Example : PM@Siemens SWE Hub
Coordinator South West Europe – Spain
Aurora Assis
POR
Pedro Ricote
SPA
Alain Martin
BEL
Usama Osman
FRA Iacopo Meghini
ITA
Yossi Meppen
ISR
Grigorios Androutsopoulos
GRI
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Important processes
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Quality Gates
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Implementation Degree