Goal: Goal: Customer Satisfaction

Objective : Objective : Meeting commitments on cost, schedule, quality

Milestones : Milestones : better control through change control, CM, monitoring etc. better predictability leading to commitments that can be met. lower cost through reduced rework, better resource management, better planning improved quality through proper quality planning and control better handling of risks reducing the chances of failure

2

Two Dimensional Approach

3

Small Projects

Large Projects

formalinformal

informal

formal

Execution

Pro

ject

M

anag

emen

t

4

OrganizationProject planChange management

ResourcesPeople managementTeam managementCost Management

Project VariablesQuality managementScope managementRisk Management

Communication Project kick offStatus reportingcommunication Management

Project Governance

Project Governance Model

Project Management Process

planning, monitoring and control, and closureplanning, monitoring and control, and closure before the main execution life cycle (LC) and closure after the LC monitoring phase is in parallel with LC

Project Planning : Project Planning : defining suitable processes for executing the project estimating effort defining project milestones and create a schedule defining quality objectives and a quality plan identifying risks and make plans to mitigate them defining measurement plan, project-tracking procedures, training plan, team organization, etc

Process Planning : Process Planning : process to be followed process will decide the tasks, their ordering, milestones plan for LC as supporting process

Life Cycle Process: Life Cycle Process: NRE ,OJT, First Article

o adding, deleting, modifying some process stepso fine-tuning to suit the project needs

Project Scheduling and Resource

Overall schedule and detailed scheduleOverall schedule and detailed schedule

Overall schedule - major milestones and final date Detailed schedule - assignment of lowest level tasks to resources

Schedule and resource mappingSchedule and resource mappingo the nominal delivery time for the scheduleo actual delivery time desiredo project effort as a function of project delivery time o efforts calculation in man hour o with effort and overall schedule decided, average project resources are fixedo manpower ramp-up in a project for deciding the milestones

6

consistent with milestones identifying lowest level tasks those can be done in less than 2-3 days deciding the tasks, assigning them while preserving high-level schedule modifying if cannot “fit” all tasks, must revisit high level schedule Identifying each task by name, date, duration, resource assigned

7

Detailed Scheduling

Manpower distribution – PM approach

8

Test Plan Build

Quality PlanningDefect Injection and RemovalDefect Injection and Removalharness assembly is a labor intensive jobdefects are injected at any stageas quality goal is low delivered defect density, these defects are removeddone primarily by quality control (QC) activities of reviews and testing

Procedural approachProcedural approachquality plan defines what QC tasks will be undertaken main QC tasks - reviews and testingguidelines and procedures for reviews and testing adherence to the plan and procedures ensured

Quality PlanQuality Plandrives the quality activities in the projectlevel of plan based on job criticalitydefined QC tasks that have to be performed specify defect levels for each QC tasksMeasurement of defect injection and removal rates, defect removal efficiency (DRE)

Risk Management Tasks

10

Risk Identification

Risk Management

Risk Assessment

Risk Control

Risk Analysis

Risk Prioritization

Risk Management Planning

Risk Resolution

Risk Monitoring

Risk Identification, Analysis and Prioritization

“what ifs”, checklists, past experience list of “top 10” risks similar projects have seen in past

o shortage of technically trained manpowero too many requirement changeso unclear requirementso not meeting performance requirementso unrealistic scheduleso insufficient business knowledgeo working on new technology

Risk Exposure (RE) = probability of risk occurring * risk impacto RE considered as expected value of loss for a risko Prioritization done based on risk exposure value

Plans are made to handle high RE risks REs revisited periodically

11

Tracking Activity level monitoringActivity level monitoring Each activity in detailed schedule is getting done daily review

Status reportsStatus reports weekly to take stock Summary of activities completed, pending Issues to be resolved

Milestone analysisMilestone analysis A bigger review at milestones Actual vs estimated for effort and sched is done Risks are revisited Changes to product and their impact may be analyzedCost-schedule milestone graph is another way of doing this

12

13

Prioritization

Review

& A

pproval

PMO

Monitoring

Demand Demand ManagementManagement

Charter development, resource requirements and Business Case

Project Project ManagementManagement

Plan, collaborate and deliver

Resource Resource ManagementManagement

Capacity estimate, resource assignments and utilization monitoring

Financial Financial ManagementManagement Labour and non-labour spend

Strategic plan for the project

Team structure

Customer

Project Manager

Project Coordinator

Material Planning Rep

Product Engineering

RepProduction Team Lead QA Team Lead

Goal: Goal: Global Optimization and managing uncertainty

Objective : Objective : supply in the right quantities at right time minimize total system cost satisfy customer service requirements

Milestones : Milestones : Purchasing - Supplier alliances, supplier management, strategic sourcing Operations - Demand management, TQM Distribution - Transportation management, customer relationship management,

logistics Integration - Coordination/Integration activities, global sourcing problems,

performance measurement

16

Supply Chain Organization in Sasmos

Supply Chain Manager

Procurement Logistics SCM admin

• KAP identification• Volume driven• Audit• Spend areas-future• Critical components

• Strategies• Efficiencies• Process review• Demand &

forecasting

• Warehousing• Inventory• Transportation

• Release orders• Spot orders• Non-repetitive orders• Non critical

components

Strategic Sourcing Tactical

Contract Management

Project Manger

Is viewed as Is viewed as effective, relevant, valued ,part of the Management Team

KAP = Key Alliance Partners

PurchasingPurchasing

Receiving Storage Operations Storage

ProductionProduction SupplySupply

Sourcing Procuring

short lead time

long lead time

predictable unpredictable

plan and optimize

quick responseplan and replenishment

postponement strategy

supp

ly

demand

Res

pons

ive

Sup

ply

Cha

in

Certain Demand

Res

pons

ive

ness

S

pect

rum

Effi

cien

t

S

uppl

y C

hain

Implied uncertainty Spectrum

Uncertain Demand

Zone of

Strategic F

it

PurchaseCost

Demand Drivers

Specifications Standardization

Inventory PracticesWarehousing Costs

Maintenance Expense

Quality Costs

Procurement Practices

Warranty Terms

Freight

Volume

Perceived cost

Actual cost

Sasmos Trends:Sasmos Trends:

long term relationships improve performance through determining supplier capabilities self or internal certification to assure product quality and service

requirements strategic partnerships- successful and trusting relationships with

top-performing suppliers

Quick wins as well as longer-term opportunities that could form the basis of a structured plan of activities over the coming years to deliver the benefits.

considering the development of detailed category strategies looking at the best geographic location for sourcing looking across the full range of procurement levers all of which help manage and reduce cost but also lead to reduced supply chain risk, such as

o strategic sourcingo cost modelling o inflation managemento Dollar fluctuation o fixed rate contract with partners

Reducing Supply Chain CostsReducing Supply Chain Costs Reduced purchasing costs Reducing waste Reducing excess inventory, and Reducing non-value added activities

Continuous Improvement Continuous Improvement Benchmarking- improve over competitors’ performance Trial & error Increased knowledge of supply chain processes

Cost Reduction –Current Practice

Demand management - matching demand to available capacity Linking suppliers via MRP and ERP systems Use JIT to improve the pull of materials to reduce inventory levels Employ TQM to improve quality compliance among suppliers Use TCO as a tool

Cost Reduction –Plan

• Performance measurement• Framework for cost analysis• Benchmarking performance• More informed decision making• Communication of cost issues internally and with suppliers• Cross-functional interaction• Better insight/understanding of cost drivers• Outsourcing analysis• Continuous improvement• Cost savings opportunities• Focus on high potential opportunities

26

Total cost ownership(TCO) Analysis

Total cost ownership(TCO) decisions

• low-cost commodity items• large purchases of items in competitive markets• large purchases from important suppliers• large dollar volume infrequent purchase• Procurements with significant unrecognized transaction costs • transactions costs, via negotiation, changing suppliers, and/or improving internal operations• cross-functional involvement in understanding item or service cost structure• capital purchases