Goal:

Customer Satisfaction

Objective :
Meeting commitments on cost, schedule, quality

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

Two Dimensional Approach

Project
Management

formal

informal

Large
Projects

Small
Projects

informal

formal
Execution

Project Governance Model

Organization
Project plan
Change
management

Resources
People
management
Team
management
Cost Management

Project
Variables
Quality
management
Scope
management
Risk Management

Communicatio
n
Project kick of
Status reporting
communication
Management

Project Governance

Project Management Process

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

Life Cycle Process:

NRE ,OJT, First Article
o adding, deleting, modifying some process steps
o fine-tuning to suit the project needs

Project Scheduling and Resource

Overall schedule and detailed schedule

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

Schedule and resource mapping

o
o
o
o
o
o

the nominal delivery time for the schedule

actual delivery time desired
project effort as a function of project delivery time
efforts calculation in man hour
with effort and overall schedule decided, average project resources are fixed
manpower ramp-up in a project for deciding the milestones

Detailed Scheduling

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

Manpower distribution PM approach

Plan

Build

Test

Quality Planning
Defect Injection and Removal
harness assembly is a labor intensive job
defects are injected at any stage
as quality goal is low delivered defect density, these defects are removed
done primarily by quality control (QC) activities of reviews and testing

Procedural approach
quality plan defines what QC tasks will be undertaken
main QC tasks - reviews and testing
guidelines and procedures for reviews and testing
adherence to the plan and procedures ensured

Quality Plan
drives the quality activities in the project
level of plan based on job criticality
defined QC tasks that have to be performed
specify defect levels for each QC tasks
Measurement of defect injection and removal rates, defect removal efficiency (DRE)

Risk Management Tasks

Risk Identification
Risk Assessment

Risk Analysis
Risk Prioritization

Risk Management
Risk Management Planning
Risk Control

Risk Resolution
Risk Monitoring

10

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 manpower
o too many requirement changes
o unclear requirements
o not meeting performance requirements
o unrealistic schedules
o insufficient business knowledge
o working on new technology
Risk Exposure (RE) = probability of risk occurring * risk impact

RE considered as expected value of loss for a risk

o Prioritization done based on risk exposure value
Plans are made to handle high RE risks
REs revisited periodically
o

11

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

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

Milestone 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 analyzed
Cost-schedule milestone graph is another way of doing this

12

Strategic plan for the project

PMO Monitoring

Review & Approval

Prioritization

Demand
Management

Charter development, resource requirements

and Business Case

Project
Management

Plan, collaborate and deliver

Resource
Management
Financial
Management

Capacity estimate, resource assignments

and utilization monitoring
Labour and non-labour spend

13

Team structure
Customer
Project Manager

Project Coordinator
Material
Planning Rep

Product
Engineering
Rep

Production
Team Lead

QA Team Lead

Goal:
Global Optimization and managing uncertainty

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

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

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

Project Manger

Supply Chain Manager

Procurement

Strategic Sourcing

KAP identification
Volume driven
Audit
Spend areas-future
Critical components

Warehousing
Inventory
Transportation

Tactical

SCM admin

Logistics

Release orders
Spot orders
Non-repetitive orders
Non critical
components

Contract Management

KAP = Key Alliance Partners

Strategies
Efficiencies
Process review
Demand &
forecasting

Purchasing
Sourcing

Procuring

Production

Receiving

Storage

Supply
Operations

Storage

long lead time

postponement
strategy

supply

plan and optimize

plan and
replenishment

quick response

short lead time

unpredictable

predictable

demand

Efficient
Supply Chain
Responsive ness
Spectrum
Responsive
Supply Chain

of Fit
e
n ic
Zo teg
ra
St

Certain
Demand

Implied
uncertainty
Spectrum

Uncertain
Demand

Purchase
Cost

Perceived cost

Demand Drivers
Quality Costs

Volume

Maintenance Expense

Freight

Standardization
Specifications
Procurement Practices
Inventory Practices
Warranty Terms

Warehousing Costs

Actual
cost

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 sourcing
o cost modelling
o inflation management
o Dollar fluctuation
o fixed rate contract with partners

Cost Reduction Current Practice

Reducing Supply Chain Costs

Reduced purchasing costs
Reducing waste
Reducing excess inventory, and
Reducing non-value added activities

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

Cost Reduction Plan

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

Total cost ownership(TCO)

Analysis

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)

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