Project Management: Program and Portfolio Information Systems course (written essay)
PPMP 20012
Program & Portfolio Information Systems
Lecture 10&11 for Week 10&11
Prepared by:
Dr. Ronny Veljanovski, BSc, PhD, GradCertTed, CertIVFMB, PMP
Discipline Leader for Project Management,
School of Engineering & Technology
Higher Education Division
CQUniversity Melbourne
Week 1
• Reflection:
– What is systems thinking?
– Does systems thinking have any advantages for PM?
– Does systems thinking have any disadvantages for
PM?
2
Week 2
• Reflection:
– What are the systems thinking tools?
– What are the systems thinking techniques?
– How do they aid project managers?
– How do they inhibit project managers?
3
Week 3
• Reflection:
– What is systems engineering?
– What is the relevance to project management?
– What is the relevance to project cases?
4
Week 4
• Reflection: – What are systems engineering concepts?
– What are systems engineering methodologies?
– How do project managers normally organise projects?
– What are the problems that occur with organising projects?
– Do systems engineering concepts and methodologies mitigate the ‘project’ problems?
– How do they mitigate problems?
– Would these ideas have helped BP manage Texas City or their Oil Wells?
– Would these ideas have helped the Minerals Management Service (MMS) manage the Oil Developers?
5
Week 5
• Reflection:
– What are application systems?
– How do they help towards project realisation?
– What do the YouTube videos say?
– Study Richard’s Project-based Organisation Workflow
– What has this to do with systems thinking, the
systems approach, and systems engineering?
6
Week 6
• Reflection:
– What is the problem or inhibitors to project
realisation?
– What do the application systems need to do?
7
Week 7
• What is the life cycle of the project? – Pre-initiation, Initiation, Planning, Execution, Monitoring & Controlling, Closing, Post-closing?
– Does the life cycle change when the project is one between an operator and a project-based organisation?
– Does it change with the type of project?
– Does it change if your organisation supports PPPM?
• What is the purpose of the life cycle? – To the project management system?
– To the project work system?
– To the sponsoring organisation?
– To any other stakeholders?
– To programs and portfolios?
• What are the advantages and disadvantages of MANUAL PPPM app’ systems? – Speed of record making?
– Accuracy of record taking?
– Ability to recall?
– Ability to share? • With other people within the project?
• With other people at the program level?
• With other people at the profile level?
• With electronic systems?
8
Week 7 –
• What are the advantages and disadvantages of ELECTRONIC PPPM app’ systems? – Speed of record making?
– Accuracy of record taking?
– Ability to recall?
– Ability to share? • With other people within the project?
• With other people at the program level?
• With other people at the profile level?
• With electronic systems?
– Assumption that the vendor of electronic applications systems knows what they are doing?
– How much modification of the electronic app system is required to make it work for you?
– Will people be able to use it?
• How do aspects of the PPPM knowledge areas impact on these systems? – What knowledge areas need systems that should:-
• Deliver real time data? – Integration? i.e. Change management
– Risk? i.e. Safety
– Human Resources? i.e. Team development training or certification
– Time? i.e. Activity performance
– Quality? i.e. Quality Control
9
Week 7 –
• How do aspects of the knowledge areas impact on these systems? (continued) – What knowledge areas need systems that should:-
• Capture substantial volumes of data for portfolio uses? i.e. dash- boarding systems (PMI Standard for Portfolio Management 2013 p. 116)
– Project, program, portfolio identifiers
– Changes to the contract conditions/schedules?
– Procurements?
• Interface to central corporate systems? – What data should interface?
– What should be shown for the status of projects, programs, portfolios?
– Should that interface be synchronous?
– Can that interface be asynchronous?
– Material and resource movements?
– Asset status?
– Configuration components?
– Costs capture?
10
Week 7 –
• How do aspects of the knowledge areas impact on these systems? (continued)
– How do the interfaces to HR systems work? • Pay (standard time, overtime)
• Rostering
• RDO’s
• Fatigue?
• Trade Certifications?
– Do these change when a project-based organisation is working for an operator?
• Does mobility solutions change any aspect of this paradigm?
• What happens if the information (not the data) is incomplete?
• How do organisational process assets get captured?
• How does innovation become recognised?
• Particularly by the project-based organisation?
• How do these systems or issues or information interface in the BP Deepwater Horizon environment?
• What insights does systems engineering provide into any of these issues?
11
Week 8 -
• What is monitoring performance? – Performance of what?
• How does performance monitoring feed into change management? – Does the way you manage change, change with different types of change?
• How do you measure the success of change? – What happens if there is no change?
• Why are we only worried with the change to the project? Why not to the program or portfolio?
• Do you need to monitor performance in real time or is a delay acceptable? – If so then how much delay/lag is acceptable?
• Do you need 100% accuracy – …or is less than 100% acceptable?
• Not only what is required to be able to make decisions, – …but what is also the consequence of a wrong decision?
12
Week 9
• What is the difference between the words – “identify” (week 8th topic), and
– “propose” (week 9th topic)?
• What does appropriate mean? – What would appropriate be for BP Texas City or Deepwater Horizon?
– What would appropriate be for a CQU group assignment?
– What would appropriate be for infrastructure and resources PPPM’s?
• What do you need to know to execute a project? – PMBOK (Execution + Monitor and Control)
• Will adoption of any of these make a difference to what is proposed? – Construction Extension to the PMBOK
– Program Management Standard
– Portfolio Management Standard
– Systems Engineering
– INCOSE, SEBoK; AS/NZS 15288
• If a project is distributed, virtual, international does this make a difference?
13
Topics
• Topic for the next two weeks is:
– “Discuss contemporary developments in the use of
PM application systems”
• Lecture
– Overview
– Tasks
– Week 10 & 11
– Portfolio
14
PPMP20012
Program & Portfolio Information Systems
THE 10TH & 11TH WEEK’S READINGS
Week 10 - Topic: Discuss contemporary developments in the use of PM application
systems
• Sterman J. (2000)
• Systems Dynamics in Wikipedia- https://en.wikipedia.org/wiki/System_dynamics
• System dynamics (SD) is an approach to understanding the nonlinear behaviour of complex systems over time using stocks, flows, internal feedback loops, table functions and time delays.
• Insight Maker - https://insightmaker.com/ • Insight Maker contains a number of very interesting project
management models. Click on the menu option 'Find Insights' and type 'project management' into the search criteria.
• "Project management 104" by Geoff McDonnell is a model that works without any complicated settings https://insightmaker.com/insight/361.
• INCOSE
16
Guide to the Systems Engineering Body of
Knowledge (SEBoK) http://www.sebokwiki.org/wiki/Guide_to_the_Systems_Engineering_Body_of_Knowledge_(SEBoK)
Part 1: SEBoK Introduction
Systems Engineering Overview
Economic Value of Systems Engineering
Systems Engineering: Historic and Future Challenges
Systems Engineering and Other Disciplines
Scope of the SEBoK
Structure of the SEBoK
SEBoK Users and Uses
Part 2: Systems
Systems Fundamentals
Systems Science
Systems Thinking
Representing Systems with Models
Systems Approach Applied to Engineered Systems
Part 3: SE and Management
Life Cycle Models
Concept Definition
System Definition
System Realization
System Deployment and Use
Systems Engineering Management
Product and Service Life Management
Systems Engineering Standards
Part 4: Applications of Systems Engineering
Product Systems Engineering
Service Systems Engineering
Enterprise Systems Engineering
Systems of Systems (SoS)
Part 5: Enabling Systems Engineering
Enabling Businesses and Enterprises
Enabling Teams
Enabling Individuals
Part 6: Related Disciplines
SE and Software Engineering
SE and Project Management
SE and Industrial Engineering
SE and Procurement/Acquisition
SE and Specialty Engineering
Part 7: SE Implementation Examples
Matrix of Implementation Examples
Case Studies
Vignettes
Guide to the Systems Engineering Body of Knowledge (SEBoK) http://www.sebokwiki.org/wiki/Guide_to_the_Systems_Engineering_Body_of_Knowledge_(SEBoK)
4.3 Enterprise Systems Engineering
4.3.1 Enterprise SE Background
4.3.2 The Enterprise as a System
4.3.3 Related Business Activities
4.3.4 Enterprise SE Key Concepts
4.3.5 Enterprise SE Process Activities
4.3.6 Enterprise Capability Management
19
Part 4. Applications of Systems Engineering
Guide to the Systems Engineering Body of Knowledge (SEBoK) http://www.sebokwiki.org/wiki/Guide_to_the_Systems_Engineering_Body_of_Knowledge_(SEBoK)
6.2 SE and Project Management
6.2.1 The Nature of Project Management
Planning and Estimating
Measuring and Controlling
Leading and Directing
Managing Risk
6.2.2 An Overview of the PMBOK Guide
Based on 4th edition 2008 PMBOK
6.2.3 Relationship between SE and PM
6.2.4 Influence of Structure and
Governance
Part 7. SE Implementation Examples
Vignettes (short story)
Singapore Water Management
http://www.pub.gov.sg/water/Pages/singaporewaterstory.aspx
19
Part 6. Related Disciplines
Systems Dynamics
• http://www.handbook.unsw.edu.au/postgraduate/courses/2013/ZEIT8307.html
– Systems Dynamics is a science that has its origins in engineering control theory, although systems concepts cross most disciplines. System Dynamics is the rigorous study of organisational problems, from a holistic or systemic perspective, where there is dynamic behaviour (quantities changing over time) and where feedback impacts significantly on system behaviour. It provides the framework and rules for qualitative description, exploration and analysis of such systems in terms of their processes, information, boundaries and strategies, thereby facilitating quantitative computer simulation modelling and analysis to assist understanding of system structure and control.
• Sterman J. (2000) Business Dynamics: Systems Thinking and Modelling for a Complex World, Irwin McGraw-Hill.
– Part I: Perspective and Process
– Part II: Tools for Systems Thinking
– Part III: The Dynamics of Growth
– Part IV: Tools for Modelling Dynamic Systems
– Part V: Instability and Oscillation
– Part VI: Model Testing
– Part VII: Commencement
Sterman J. (2000) Chapter 1 Figure 1-5a & b Positive and negative feedback loops
Figure 1-6 Dynamics arise from the interaction of multiple loops
BR ChickensEggs Road
Crossings
+
+
+
-
Source: Sterman (2000)
Sterman J. (2000) Chapter 1
Figure 1-14 Idealized learning processFigure 1-11 Double-loop learning
Real
World
Stra tegy, Structure,
Decision Rules
Me ntal Models
of Rea l World
Decisions Information
Feedback
Source: Sterman (2000)
Sterman J. (2000) Chapter 2 Stock and flow structure of a project phase
Figure 2-6
Source: Adapted
from a diagram
developed by
Pugh-Roberts
Associates,
Cambridge, MA.
Source: Sterman (2000)
Sterman J. (2000) Chapter 2 Side effects of corrective measures lead to vicious cycles
People Productivity Quality
Work Being Done
Rework Discovery
Obsolescence Rate
Undiscovered Rework
Known Rework
Work to be Done
Work Really Done
Customer Changes
Hiring
Apparent
Progress
Fatigue,
Burnout
Overtime
Out-of-Sequence Work,
Worksite Congestion,
Coordination Problems,
Morale Problems
Schedule
Acceleration
Average
Employee
Skill, Quality
Source: Sterman (2000)
Systems Dynamics –
Simulations http://en.wikipedia.org/wiki/System_dynamics
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
• Introduction: – The complexity of man-made systems has increased to an unprecedented level. This
has led to new opportunities, but also to increased challenges for the organizations that create and utilize systems. These challenges exist throughout the life cycle of a system and at all levels of structural detail. They arise from several sources:
• there are inherent differences among the hardware, software and human elements from which systems are constructed.
• almost every present-day system contains, and/or is modelled and supported by computer- based technology.
• there is a lack of harmonization and integration of the involved disciplines, including science, engineering, management and finance.
– There is therefore a need for a common framework to improve communication and co- operation among the parties that create, utilize and manage modern systems in order that they can work in an integrated, coherent fashion.
– This International Standard provides a common process framework covering the life cycle of man-made systems. This life cycle spans the conception of ideas through to the retirement of a system. It provides the processes for acquiring and supplying systems. In addition, this framework provides for the assessment and improvement of the life cycle processes.
– The processes in this International Standard form a comprehensive set from which an organization can construct system life cycle models appropriate to its products and services. An organization, depending on its purpose, can select and apply an appropriate subset to fulfil that purpose.
26
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
• Introduction (continued): – This International Standard can be used in one or more of the
following modes: • By an organization — to help establish an environment of desired
processes. These processes can be supported by an infrastructure of methods, procedures, techniques, tools and trained personnel. The organization may then employ this environment to perform and manage its projects and progress systems through their life cycle stages. In this mode this International Standard is used to assess conformance of a declared, established environment to its provisions.
• By a project — to help select, structure and employ the elements of an established environment to provide products and services. In this mode this International Standard is used in the assessment of conformance of the project to the declared and established environment.
• By an acquirer and a supplier — to help develop an agreement concerning processes and activities. Via the agreement, the processes and activities in this International Standard are selected, negotiated, agreed to and performed. In this mode this International Standard is used for guidance in developing the agreement.
27
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
• 1. Scope
• 2. Conformance
• 3. Normative reference
• 4.Terms and definitions
• 5. System Life Cycle Processes – 5.1 Introduction
– 5.2 Agreement Processes
– 5.3 Enterprise Processes
– 5.4 Project Processes
– 5.5 Technical Processes
• 6. System Life Cycle Stages – 6.1 Introduction
– 6.2 Life Cycle Models
– 6.3 Life Cycle Stages
• Annex A – Tailoring Process
• Annex B – Life Cycle Stages
• Annex C - Relationship between ISO 15288 & 12207
• Annex D - Concepts
28
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
4.12 Project
• an endeavour with defined start and finish dates undertaken to create a product or service in accordance with specified resources and requirements – NOTE 1 Adapted from ISO 9000: 2000 and the
PMBOK Guide(2000).
– NOTE 2 A project may be viewed as a unique process comprising co-ordinated and controlled activities and may be composed of activities from the Project Processes and Technical Processes defined in this International Standard.
29
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
5. System Life Cycle Processes
• Agreement processes; a) Acquisition Process – used by
organizations for acquiring products or services;
b) Supply Process – used by organizations for supplying products or services.
• Enterprise processes; a) Enterprise Environment
Management Process;
b) Investment Management Process;
c) System Life Cycle Processes Management Process;
d) Resource Management Process;
e) Quality Management Process.
• Project processes; a) Project Planning Process;
b) Project Assessment Process;
c) Project Control Process;
d) Decision-making Process;
e) Risk Management Process;
f) Configuration Management Process;
g) Information Management Process.
• Technical processes. a) Stakeholder Requirements
Definition Process;
b) Requirements Analysis Process;
c) Architectural Design Process;
d) Implementation Process;
e) Integration Process;
f) Verification Process;
g) Transition Process;
h) Validation Process;
i) Operation Process;
j) Maintenance Process;
k) Disposal Process.
30
AS/NZS 15288:2003 Systems engineering –
Systems life cycle processes
6.2 Life Cycle Models
• A life cycle model that is comprised of stages shall be established.
– NOTE The life cycle model comprises one or more stage models, as
needed.
– It is assembled as a sequence of stages that may overlap and/or iterate,
as appropriate for the system-of-interest's scope, magnitude,
complexity, changing needs and opportunities.
31
Annex B.
a) Concept Stage;
b) Development Stage;
c) Production Stage;
d) Utilization Stage;
e) Support Stage;
f) Retirement Stage.
INCOSE
32
INCOSE-TP-2003-002-03 (2006)
Chapters 1 to 2
• Chapter 1: Systems Engineering Handbook Scope 1.1 Purpose
1.2 Application
1.3 Contents
1.4 Format
1.5 Definitions of frequently used terms
1.6 References
• Chapter 2: Systems Engineering Overview 2.1 Introduction
2.2 Definition of systems engineering
2.3 Origins of systems engineering
2.4 Systems of systems
2.5 Use of systems engineering
2.6 Value of systems engineering
33
INCOSE-TP-2003-002-03 (2006)
Chapter 3
• Chapter 3: Generic Life Cycle Stages 3.1 Introduction
3.2 Life Cycle Characteristics 3.2.1 Three Aspects of the Life Cycle
3.2.2 Decision Gates
3.3 Life Cycle Stages 3.3.1 Pre-Concept Exploratory Research Stage
3.3.2 Concept Stage
3.3.3 Development Stage
3.3.4 Production Stage
3.3.5 Utilization Stage
3.3.6 Support Stage
3.3.7 Retirement Stage
3.4 Development Stage Approaches 3.4.1 Plan-driven Development
3.4.2 Incremental and Iterative Development
3.4.3 What is best for your organization
3.5 Introduction to three cases
3.5.1 Case 1: Radiation Therapy; the Therac-25 3.5.2 Case 2: Joining two countries; the Øresund Bridge
3.5.3 Case 3: Prototype system; The Super-high-speed train in China
34
INCOSE-TP-2003-002-03 (2006)
Chapter 4
• Chapter 4: Technical Processes 4.1 Introduction
4.2 Stakeholder Requirements Definition Process
4.3 Requirements Analysis Process
4.4 Architectural Design Process
4.5 Implementation Process
4.6 Integration Process
4.7 Verification Process
4.8 Transition Process
4.9 Validation Process
4.10 Operation Process
4.11 Maintenance Process
4.12 Disposal Process
35
INCOSE-TP-2003-002-03 (2006)
Chapter 5
• Chapter 5: Project Processes
5.1 Introduction
5.2 Project Planning Process
5.3 Project Assessment Process
5.4 Project Control Process
5.5 Decision-Making Process
5.6 Risk and Opportunity Management Process
5.7 Configuration Management Process
5.8 Information Management Process
36
37Source: PMI Standard for Portfolio Management 2013
How do you pull it together and what are the
application Systems (Manual & Electronic) you
need?
38
http://www.building4business.com.au/ppp.html
Ian Alexander (2001) Systems Engineering: A
Requirements Engineer's Viewpoint http://www.scenarioplus.org.uk/papers/systems_engineering/systems_engineering.htm
Systems Engineering NASA Project Management and Systems
Engineering Competency Framework
http://www.nasa.gov/offices/oce/appel/pm-
development/pm_se_competency_framework.html
40
http://www.nasa.gov/pdf/699790main_PM_SE-Competency_Model_rev_2012_09_24_12.pdf
http://www.dilbert.com/
41
People in Project Management
– making sure everyone knows
what’s happening!
42
Wayne Greenwood, Managing Director Eastern Australia for Priority Management NSW.
Discussing Scheduling for an Oil Rig Refit in Indonesia 4th October 2013
Application Systems May be Manual or
Electronic
43
(PMBOK 2013,
p. 78)
Portfolio Management
44
Portfolio Management
45
Source: PMI Standard for Portfolio Management 2013
Portfolio Management
46
Source: PMI Standard for Portfolio Management 2013
Portfolio Management
47
Source: PMI Standard for Portfolio Management 2013
Table 7-2 Stakeholder Matrix for Use in
Stakeholder Analysis
48
Source: PMI Standard for Portfolio Management 2013
Figure 8-2 Elements
of Portfolio Risk
Management
49
Source: PMI Standard for Portfolio Management 2013
Portfolio Performance Management
50
S o
u rc
e : P
M I S
ta n
d a
rd fo
r P o
rtfo lio
M a
n a
g e
m e
n t 2
0 1
3
Portfolio Performance Management
51
Also see Modern Portfolio Theory developed
by Harry Markowitz
http://portfoliotheory.co.uk/
S o
u rc
e : P
M I S
ta n
d a
rd fo
r P o
rtfo lio
M a
n a
g e
m e
n t 2
0 1
3
PMI The Standard for Program
Management (2013)
52
Source: PMI Standard for Program Management 2013
PMI The Standard for Program
Management (2013)
53
Source: PMI Standard for Program Management 2013
Table 7-1 Mapping of Program Management
Life Cycle Phases to Supporting Activities
54
Source: PMI Standard for Program Management 2013
PPMP20012
Program & Portfolio Information Systems
REFLECTION
Week 11 & 12 - Topics: Discuss contemporary developments in the use of PM application
systems
• Reflection:
– What will you reflect about over the two weeks
for this topic?
56
Summary
• Topic for the next two weeks is:
– “Discuss contemporary developments in the use of
PM application systems”
• Lecture
– Overview
– Tasks
– Week 10 & 11
– Portfolio
57