ITS BOTTLENECKS A CASE STUDY OF RO PROJECT SEPTEMBER 04 2015 DANIYAL ALTAF PTEROU P 1930 1 What is a project Definition A project is a temporary endeavor undertaken to create a unique product service or result ID: 641845
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PROJECT MANAGEMENT & ITS BOTTLENECKS
A CASE STUDY OF RO PROJECT
SEPTEMBER 04, 2015
DANIYAL ALTAFPTE/ROUP - 1930
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What is a project? Definition:“A project is a temporary endeavor undertaken to create a unique product, service or result.”
The temporary nature of a project means that it has a definite beginning and endingEfforts that have no defined end date or definition of “done” are not projects, they are on-going operations!
Projects end in only one of two ways:The project’s objectives have been reachedThe project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists.
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REVERSE OSMOSIS PROJECTReverse osmosis unit was a sublet project in order to make it easy to manage.Project assigned on the basis of two types of contractsLump sum contractUnit Price contract3Slide4
Bids were requested by contractorsDifferent companies were both technically and commercially evaluated.Upon evaluation, the approved contractor was called for contract signing.Contract defines the scope of the project which the contractor is bound to complete.Lump sum contract – HYDROTECH Engineering & SIEMENSUnit Price contract (with contingency) - DESCON EngineeringBidding is an offer (often competitive) of setting a price one is willing to pay for something or a demand that something be done.
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Project attributesA project: Has a unique purpose.Is temporary.Is developed using progressive elaboration.Requires resources, often from various areas.Should have a primary customer or sponsor.The
project sponsor usually provides the direction and funding for the project.Involves uncertainty.
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Advantages of using formal project managementBetter control of financial, physical, and human resources.Improved customer relations.Shorter development times.Lower costs.Higher quality and increased reliability.Higher profit margins.Improved productivity.Better internal coordination.Higher worker morale (less stress).7Slide8
Phases of a projectProjects are normally broken down into “phases”Ease of managementPlanning
Control.
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Project execution phases 9Slide10
Common Trends Along The PM Lifecycle10Slide11
The triple constraint of a project
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Key elements of Project Management Framework
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SCOPE
TIME
COST
QUALITY
PROCUREMENT
RISK
COMM.
HRSlide13
Project ManagerAssigned byto
responsible for13Slide14
Project Manager Responsibilities & Competencies
Leadership
Team Building
MotivationCommunicationInfluencingDecision Making
Political and Culture Awareness
Negotiation
Trust Building
Conflict Management
Coaching
Leading Without Direct Authority
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15 Project Manager job functions
Define scope of project.
Identify stakeholders, decision-makers, and escalation procedures.
Develop detailed task list (work breakdown structures).Estimate time requirements.Identify required resources and budget.Evaluate project requirements.Identify and evaluate risks.
Prepare contingency plan.
Identify interdependencies.
Identify and track critical milestones.
Participate in project phase review.
Secure needed resources.
Manage the change control process.
Report project status.
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Suggested skills for Project Managers
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PM tools & techniquesProject chartersScope statementsWBS cost estimates and earned value managementGantt charsCritical path analysis
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BottlenecksIn this presentation:Causes of bottlenecksEffects of bottlenecksHow to avoid?How to handle?Neck of the traditional bottleIn project management:any point of congestion within an organizational system that hinders the flow of work across the various processes that make up the system.
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In simple terms, it is a resource whose capacity is lower than the demand placed on it. lot of work in progressQueuesincrease in the overall project life cycle time and project cost
.Identification:by a detailed analysis of the processes involved within the organization (system). 19Slide20
Primary causesResource inefficiencyOutdated technologyLack of resourcesImproper communicationBreakdowns
Poor maintenance schedule20Slide21
Case study – bottle neck at RO project Change of system to compensate for time
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Case study – bottle neck at RO project Delayed material delivery22
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st priority to jobs essential for commissioning of plant
2nd shipment delivered 15 days before…3rd shipment delivered just one day before completion dateSlide23
Lessons I learned through observation and common sense.Do not expect to achieve mechanical tolerances in civil works. Be practical.
Design and fabrication drawings should be completed in all respects
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Effects of bottlenecksIn a project environment, the following are the main effects of bottlenecks:Reduction in overall production efficiencyIncreased backlogsIncreased cost of storageConstraint challenge
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Reduction in overall production efficiencyEfficiency is the rate at which time, effort and cost is properly usedExample: Spindle machine working at 50%. All other machines will produce at a lesser rate to compensate for reduction in efficiency of spindle machine. As a result, overall production efficiency reduces to 50%.1
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Increased backlogs of workAs project managers, what we should strive for is process efficiency and optimization, not maximization.
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Increased storage costThis is very common in the manufacturing environment where goods are produced. Development of production philosophies such as lean manufacturing and just in time production. 327Slide28
Solving bottlenecks in a project environment:Series of stepsProblem Identification (Process analysis)Aim for overall process improvement not individual station efficiency“If it
ain’t broke, don’t fix it”Schedule and maintenanceTechnological improvement
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Problem Identification (Process analysis)The first step in solving bottlenecks is to determine their cause.Duty of a project manager – permanently solve the problem1
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The easiest way to identify the root cause is to conduct a critical process analysisQuick pointers that can help identify bottlenecks:processes that take the most time processes with the most reworkProcesses which the staff complains the most about
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Case study – Problem at RO project Communication gap between client and contractorRemedy advised: Make sure up-to-date drawings are being used on site
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…Process analysisThe systematic steps that are required in process analysis are:
PROCESS IMPROVEMENT32Slide33
System improvement, not individual process improvementAlways aim for a holistic system improvement instead of a part or process improvement.The challenge with individual process improvement is that while they often improve the particular process, they do not have an effect on the overall system.Let’s not forget: the output or efficiency of a bottleneck would determine the output or efficiency of the overall system.
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If it ain’t broke, don’t fix itThis quote applies to bottlenecks: if it is not a bottleneck, there’s no need to improve its efficiency. Doing so would only cause your organization to incur more expenses.
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Schedule and maintenanceLack of a proper maintenance schedule or wrong timing for maintenance can lead to a bottleneck. 4
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Technological improvementSometimes the technology we have can no longer compete with the modern standard, automatically causing a bottleneck.If it is just a process that requires technological improvement, then it is a bottleneck and can be treated in isolation.
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ConclusionProject Management is not easy.The devil lies in the details
Prevention is better than cureNever take “Risk management” for grantedDetailed planning prevents bottlenecks
Drawings should be ready with the best possible detail37Slide38
References:Project management body of knowledge (PMBOK)http://www.investopedia.com/WikipediaGoogle ImagesPlant Project Engineering Guide book for Mechanical Engineers – CASTI
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