mpug, houston, tx jerry cripe september 18, 2000 1 on semiconductor on-time enterprise program...
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MPUG, Houston, TXJerry Cripe
September 18, 20001
ON Semiconductor
ON-Time EnterpriseProgram Management
Information System
Jerry CripeCorporate Program Management Controller
602.244.7547
MPUG, Houston, TXJerry Cripe
September 18, 20002
ON Semiconductor
Agenda
• Background
• Objective
• Approach
• Solution
• Summary
MPUG, Houston, TXJerry Cripe
September 18, 20003
ON Semiconductor
ON Semiconductor
We make the semiconductors that turn ON technology and connect you to your world!
MPUG, Houston, TXJerry Cripe
September 18, 20004
ON Semiconductor
• Nokia market cap($265B) fell $52.1B in a few hours on July 28, 2000 as the CEO announced missing 2 telephone projects for this year and lower revenues per Financial Times.
• Intel’s lost critical-path planning ability per CEO in Electronic News, August 28, 2000 which attributed to falling behind AMD in areas of microprocessor development. Intel market cap fell froma high of $445B to $295B on September 26, 2000
Background
MPUG, Houston, TXJerry Cripe
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ON Semiconductor
Management by the WebContrasting Views of the Corporation
Business WeekAugust 28, 2000
CHARACTERISTIC 20TH CENTURY 21ST CENTURYORGANIZATION The Pyramid The WebFOCUS internal ExternalSTYLE Structured FlexibleSOURCE OF STRENGTH Stability ChangeSTRUCTURE Self-sufficiency InterdependenciesRESOURCES Atoms-physical assets Bits-InformationOPERATIONS Vertical integration Virtual integrationPRODUCTS Mass production Mass customizationREACH Domestic GlobalFINANCIALS Quarterly Real-timeSTRATEGY Top-down Bottom-upLEADERSHIP Dogmatic InspirationalWORKERS Employees Employees & free agentsJOB EXPECTATIONS Security Personal growthMOTIVATION To compete To buildIMPROVEMENTS Incremental RevolutionaryQUALITY Affordable best No Compromise
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ON Semiconductor
Program Management Benchmarking
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ON Semiconductor
Each stage represents a breakthrough, not continuous improvement
Informal Management
Stage 0 Functional Excellence
Stage 1 ProjectExcellence
Stage 2PortfolioExcellence
Stage 3 Cross-Enterprise Excellence
Informal practicesbased on individual experience
Excellence within functions, but not across functions
Functions aligned for effective execution from concept to market
Processes aligned to achieveplatform leverage, portfolio balance and excellence in project selection and execution
Core processes linked across internal and external business partners for maximum leverage
Stage 4
Companies improve product development performance in stages
PMG StudyPittiglio Rabin Todd & McGrath
MPUG, Houston, TXJerry Cripe
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ON Semiconductor
PMG studies have shown that companies with better practices achieve better results
•Mature (Stage 2b) participants—18% of the total—have implemented full cross-functionality at the project level and achieved better results
– Revenue growth– Time-to-market (TTM)– Time-to-profitability (TTP)– Wasted development spending– Commercialization success– Pipeline throughput per $MM spent
1% 2% 8%24%
65%
0%20%40%60%80%
Stages Stage 1 Stage2a
Stage2b
Stage 3
Dominant Practices Intended Practices 2000
4%18%
52%
18%0%
0%20%40%60%80%
Stages Stage 1 Stage2a
Stage2b
Stage 3
Note: Based on Product Development Benchmarking Studyby Performance Management Group
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ON Semiconductor
M a tu re (S ta g e 2 b ) p a rtic ip a n ts g ro w 3 X fa s te r th a nF u n c tio n a ls (S ta g e 1 )
8 .7%
1 3.7 %
27 .6%
0 %
5 %
10 %
15 %
20 %
25 %
30 %
F unc t io nal S ta g e 1
Tran s itio n al S tag e 2 a
M ature S tag e 2 b
T ra n s itio n a ls g ro w a t h a lf th e M a tu re S ta g e 2 b ra te
R e ve n u eG ro w th
N o te : B ased o n 1997 P ro d u c t D eve lo p m en t B en ch m ark in g S tu d y
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ON Semiconductor
Project Lifecycle
Customer Requirement
TechnicalRequirement
FrameworkDocument
PlanWork
Work Plan
CloseOut
Productor ServicePlan
ManageProductor Service
EvaluateUpgradeRestartCycle
Closeout
InvestmentDecision
Project Portfolio Management
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September 18, 200011
ON Semiconductor
ON Semiconductor Program Management Model
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ON Semiconductor
Why Program Management Model?
Organizational Process to Create:
• A decision process infrastructure to support a PM Matrix Organization
• Create a complete project/program life cycle process
• Resolution of technical/organizational issues
• Empowering program/project managers and their teams
• An effective Project Portfolio Management system
• Process to create Projects of optimized value to the Corporation
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ON Semiconductor
PSG Roles: Technical AlignmentStrategic alignment Portfolio ManagementDecision making Remove Obstaclesapprove gates Cross Functional Authority
Program Steering Group-Staff
Customer Commitment
Gates
Phase 0OpportunitySelection
Phase 1Definition
Phase 2Planning
Phase 3Execution
Phase 4Closure
Project Manager leads development process of empowered cross-functional team through project life cycle-produces Key Results
ON-Time Program Management ModelPSG and Project Manager Process
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ON Semiconductor
Enterprise Management Goals
• Predictive Management
• Performance Management
• Real World Interface
• Resource Management
• Decision Management
Objective
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ON Semiconductor
Expectation Setting
• Project/Program Managers-Schedule & Tracking, Accountability
• Collaboration, Communication and Resource Management
• PSG-decision meetings
• Follow PMI-Project Life Cycle process
• Program register• project reviews-defined by PSG’s
•management by exception-give me the bad news!
• Active Project Portfolio Management
MPUG, Houston, TXJerry Cripe
September 18, 200016
ON Semiconductor
Baldrige Criteria for ON Semiconductor Program Methodology Model
• Leadership-Corporate PM protocol across ON Semiconductor
• Strategic Planning-PSG Criteria-linked to Strategic Plan, Portfolio metrics
• Customer and Market focus-PSG, Register, Portfolio scorecard
• Information and Analysis- Standard Methodology, planning, risk analysis, scheduling, tracking, Central Depository
• Human Resources focus-user group, master’s certificate training available
• Process Management-Central Depository, PSG’s, Controller team
• Business Results-Project Register and Project Portfolio Scorecard
MPUG, Houston, TXJerry Cripe
September 18, 200017
ON Semiconductor
Forced Date: 3 month’s to replace legacy MotorolaSystem called Dante which held 250 projects globally!
MPUG, Houston, TXJerry Cripe
September 18, 200018
ON Semiconductor
ON-Time PMIS(Program Management Information System)
Approach
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ON Semiconductor
PMIS Implementation Stages
• Overview of PM Practices/Software
• Assessing the Organization/Vendors
• Creation of PMIS with Preferred Vendor
• Pilot
• Deployment
• Sustaining the Momentum
MPUG, Houston, TXJerry Cripe
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ON Semiconductor
Software Criteria
• Useability
• Capability
• Performance
• Interoperability
• Manageability
•Acquisition Cost
•Implementation Cost
•Maintenance Cost
•Time to Benefit
MPUG, Houston, TXJerry Cripe
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ON Semiconductor
IntranetWeb Enabled
Portfolio Management ExecutiveDecision Making
ExecutiveDecision Making
Digital Dashboards &PM KnowledgeManagement
ProgramController
ProgramController
Performance Reports
ProjectControllers
ProjectControllers
ManagementReview
PSG
ManagementReview
PSG
ON-Time Enterprise Program Management
Project Managers
Project Managers
Project Managers
Project Managers
SeniorManagement
ResourceManagement
Team Leaders
CEOCEO
Executive Council
ProjectsProjectsFunctionalManagers
FunctionalManagers
Vice Pres/.Director
Vice Pres/.Director
Vice Pres/.Director
Vice Pres/.Director
FunctionalManagers
FunctionalManagers
PSG = Program Steering GroupSCM = Supply Chain ManagementCRM = Customer Relationship Management
Address Key Challenges: Accountability for schedules, budgets & deliverables Resource allocation & bottlenecks Performance measurement against baseline & expectations Risk, change, quality & issues management controls How to measure ROI benefits & value Workplace Productivity and Continuous Improvement projects
Suppliers (SCM)Customers (CRM)PartnershipsMatrix,i2, ON-Dex
Projectized organizational model to move at e-speed
ON-TimePMIS
COOCOO
EC EC
Internet
MPUG, Houston, TXJerry Cripe
September 18, 200022
ON Semiconductor
ON-Time PMIS System Architecture
M icrosoftP ro ject 98
M icrosoftP ro ject2000
D A N TE
M SP2000
D igita lD ashboard
O therProject
Data
P ro jectC entra l
SQLServer
W eb-basedServices
P ro jectC entra l
D ig ita lD ashboard
O utlook/In te rnet
E xp lorer/P ro j C entra l
DesktopPC
Data BaseEnvironm ent
Project/PortfolioM anagem ent
Project M anagem entM igration Environm ent
E -m ail/C om m uni-
cation
q Project Fram eworkq Risk & Issues
Managem entq O ther Tem plates &
Docum ents
Solution
MPUG, Houston, TXJerry Cripe
September 18, 200023
ON Semiconductor
ON-Time PMIS Digital Dashboard
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September 18, 200024
ON Semiconductor
ON-Time PMIS Framework Document
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September 18, 200025
ON Semiconductor
Issues & Risk Management
The “Profile” tab focuses on capturinggeneral information about the issue orrisk.
The “Resolution” tab focuses on theaction steps taken to resolve and/orclose the issue or risk.
MPUG, Houston, TXJerry Cripe
September 18, 200026
ON Semiconductor
Strategic Awareness
• Hypercompetition
• Strategic Intelligence
• Accelerate Strategic Decision-Making
Enterprise Project Portfolio Management
&Scenario Planning
Continuous Strategy will become the norm
Summary