Helsinki University of Technology Department of Industrial Engineering

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Systematic Project Management: Aspects on Uncertainty and on Assigning Responsibilities Karlos Artto HUT / Department of Industrial Engineering and Management S-72. 124 Product Development of Telecommunication Systems

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Systematic Project Management: Aspects on Uncertainty and on Assigning Responsibilities - Lecture Content: • Maintaining the Strategic Perspective on the Project Product during the Project Life Cycle • Taking Uncertainty into Account: Risk Identification and Risk Analysis Applications (Case) • Organizing for Communication and Responsibility Assignments (Risk Management as a Communication Tool) • Examples and Cases, Risk Management Applications in Industry

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Analogy between product development, and a delivery of an unique project DELIVERY PROJECTS PROJECT PRODUCTS PROJECT LEVEL COMPANY LEVEL PRODUCT DEVELOPMENT • NEW PRODUCT PLATFORMS FEEDBACK SUPPORT BODY OF PRODUCT KNOWLEDGE • PRODUCT PLATFORMS PRODUCT ARCHITECTURES AND VARIATIONS MODEL DRAWINGS AND SPECIFICATIONS DESIGN RULES ETC. Source: Meklin, Lahti, Kovanen, Arenius, Artto 1999 COMPANY PRODUCTS

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Goals and Methods Matrix No Methods well defined Yes Type 2: Product Development Type 4: Research & Organizational Change Type 1: Engineering Type 3: Systems Development Yes No Goals well defined

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Approaches to Manage the Basic Types of Projects · Research projects: Setting goals and measuring progress against those goals. · New product development (NPD) projects: Managing a diverse group of technical specialists, focus on quality and time. · Change, organizational reengineering projects: Team building and refinement of objectives. · Information technology (IT), information system (I/S) projects: Tight project control and readiness to adapt to changing requirements from the customer. · Building construction projects: Control of labor hours and cost control is important.

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Maintaining the Focus on the Progress of the Project Product: The Milestone Plan Activity entity 1 Milestones 1 Activity entity 2 Milestones 2 Activity entity 3 Milestones 3

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Project Management (Areas)

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Management Overview According to PMI PMBOK

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risks of Different Magnitude Probability Low Risk Medium Risk High Risk Cost

Helsinki University of Technology Department of Industrial Engineering and Management Risk Analysis Case © Karlos Artto / HUT 2000

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Analysis Case cont’d

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Analysis Case cont’d

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 An Analogy in ‘Critical Chain’ -method: Team Focus on Buffers

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 The Team Aspect Reconsidered: Risk Analysis Day of HUT TAI Research Results Centre Open Communication Response Development and Responsibilities Pre-assignment Individual opinions of important risks Risk Analysis Day Increased Awareness Integration: 1) Within the team 2) Within the risk management process 3) Responses to company’s responsibility areas Documentation, reports

Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Conclusions - Lecture Content was: • Maintaining the Strategic Perspective on the Project Product during the Project Life Cycle • Taking Uncertainty into Account: Risk Identification and Risk Analysis Applications (Case) • Organizing for Communication and Responsibility Assignments (Risk Management as a Communication Tool) • Examples and Cases, Risk Management Applications in Industry