Capturing and Applying Lessons Learned for
Continuous Process Improvement
Jim Wasson, Ph.D., MBA, PMP
SC Small Business Development Center
6296 Rivers Avenue, Suite 300
North Charleston, SC 29406
wassonjw@mailbox.sc.edu
www.scsbdc.com
843-804-9026
Small Business Development Center
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Congress and administered by the SBA
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existing business owners
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Technology Commercialization Services
• Government Contracting Assistance
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Review and Proposal Assistance
• Business Planning & Financing
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• Project Management Assistance
• General Business Management
“Winning SBIR Contracts” Workshop on June 24 @ 1:00pm at St. Leo’s University
Register online at http://charlestonsbdc.webs.com/workshops
Introduction
• Lessons learned is one of the most important value
added aspects of Project Management; however, it is
often the most ignored.
• By not learning from failures we are doomed to
repeat the same mistakes.
• By not maximizing on success we miss opportunities
to implement best practices.
• Real value is the ability of an organization to
establish a culture of Continuous Process
Improvement.
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Project Management
has Complex Dimensions
Sociocultural
Leadership
Problem solving
Teamwork
Negotiation
Politics
Customer expectations
Technical
Scope
WBS
Schedules
Resource allocation
Baseline budgets
Status reports
©The McGraw-Hill Companies, 2000
Level of effort
Project Life Cycle
Project
Definition
Project
Planning
Project
Execution
Charter:
What?
Why?
How?
Plan:
When?
Who?
How
Much?
1. Goals
2. Specifications
3. Tasks
4. Responsibilities
5. Teams
1. Schedules
2. Budgets
3. Resources
4. Risks
5. Staffing
Project
Delivery
Final Report:
How did we do?
Monthly Reviews:
How are we doing?
-Performance
-Time & Cost
1. Status reports
2. Changes
3. Quality
4. Forecasts
©The McGraw-Hill Companies, 2000
1. Train customer
2. Transfer documents
3. Release resources
4. Reassign staff
5. Lessons learned
Some Typical Lessons Learned
–
–
–
–
–
–
–
–
–
–
–
–
–
Lack of understanding of the Scope of the Project
Lack of understanding of Stakeholder Issues and Concerns
Failure to form a High-Performance Project Team
Lack of an approved Project Charter and Project Plan
Lack of a detailed Work Breakdown Structure (WBS)
WBS not integrated with Organization Breakdown Structure
Lack of disciple in issuing and controlling Work Packages
Faulty Statement of Work (SOW), Specifications, Standards
Unrealistic Project Planning Cost and Duration Estimates
Missing a detailed Network Plan and Project Schedule
Unrealistic Resource Planning or lack of a Project Budget
Missing or insufficient Issue, Risk and Opportunity Planning
Lack of a Communication Plan to Track and Report Metrics
Understanding Project Scope
787 vs. 777
Technology
High
Higher complexity requires
more formal PM structure
Higher technology
requires more design cycles
Med
Low
Novelty
Complexity
SoS
System Assembly Comp
Derivative Platform NTW
Fast
Faster Time requires
coordinated parallel tasks
Time Critical
Courtesy of Dr. Aaron Shenhar (www.splwin.com)
Pace
More Novelty requires
early test marketing
Network of Stakeholder Relationships
Top
management
Project
sponsors
Media
Customers
PA
Project
Managers
Project
Manager
Functional
Managers
Contractors
Government
agencies
Administrative
support
©The McGraw-Hill Companies, 2000
Stakeholder Communications
• 1989: B-2 slashed from 132 to 20 stealth bombers
– Perceived decline in Soviet threat
– Growing concern about U.S. budget deficit
– But mostly poor media relations campaign
• Lesson One: Work with Public Affairs Officers
– Made public in 1989. Organizational culture change required.
• Lesson Two: Keep it Simple
– Media doesn’t understand amortization impact of producing one
plane per year versus 3-5 per month. Hospital analogy.
• Lesson Three: Answer the Critics
– Media left their audience with an impression of incompetence
Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992
Stakeholder Communications
• Lesson Four: Cultivate the Media
– Narrow the field and build a rapport
– Provide accurate and timely information
– Simply your answers
• Lesson Five: Follow the Rules of the Media Game
– Strong “first come-first served” ethic
– Reporters will only give you the general topic not questions in advance
and you are never “off the record”
– Ask to preview articles before publication to catch mistakes
– Banish “no comment” or “sorry, its classified”
Courtesy of Dr. Bud Baker, Air Force B-2 Program Manager, PMI Symposium, Sept 1992
Stakeholder Interest and Influence
High Power, Low Interest
High Power, High Interest
Jack Jones
Finance
Airlines
FAA
Influence
PMO
Suppliers
IT Staff
Low Power, Low Interest
Interest
Low Power, High Interest
Creating a High-Performance Project Team
Recruit
team members
Conduct project meetings
Establish team identity
Create a shared vision
Build a reward system
Manage decision making
Manage conflict
Lead team-building sessions
Superior
performance
A vision must communicate a strategic sense,
instill passion and inspire the team
©The McGraw-Hill Companies, 2000
An Effective Project Leader is…
•
•
•
•
•
•
•
•
•
•
A clarifier: listens, summarizes, and makes things clearer.
A coach: encourages others to develop their skills.
A facilitator: helps the group set goals, make decisions, choose
directions, and evaluate progress.
A delegator: helps each group member apply her talents and
interests to the group's goals.
An initiator: gets things moving.
A manager: coordinates the parts of a project. keeps an eye on
progress.
A mediator: helps resolve differences.
A networker: connects people with people and people with ideas to
move the project forward.
A problem-solver: suggests solutions and ways to get things done.
A visionary: sees creative solutions, new directions, and possibilities.
Project Management Trade-Offs
Resources
Typical
Project
Constraints
Scope
Project Cost-Time Graph
60
Total
costs
50
Optimum
cost-time
point
Costs
40
Low-cost
plan duration
point
30
Direct
costs
20
Indirect
costs
10
0
4
6
8
10
12
Project duration
©The McGraw-Hill Companies, 2000
14
16
Hierarchical Breakdown of the WBS
WBS Level
Hierarchical breakdown
1
Project
2
Deliverable
3
4
Subdeliverable
Lowest subdeliverable
Description
Complete project
Major deliverables
Supporting deliverables
Lowest management
responsibility level
Cost account*
Grouping of work packages
for monitoring progress and
responsibility
Work package
Identifiable work activities (SOW)
*This breakdown groups work packages by type of work within a deliverable and allows assignment of
responsibility to an organizational unit. This extra step facilities a system for monitoring project progress
©The McGraw-Hill Companies, 2000
Work Breakdown Structure (WBS)
Personal computer
prototype
Level
1
2
Vendor,
software,
applications
Mouse,
keyboard,
voice
~
3
~
Floppy
~
4
Lowest manageable
subdeliverables
Microprocessor
unit
Disk
storage
units
Optical
More
items
Hard
Internal
memory
unit
~
Motor
Circuit
board
Chassis
frame
WP-1M
WP-1 CB
WP-2 CB
WP-3 CB
WP-4 CB
WP-5 CB
WP-6 CB
WP-7 CB
WP-1 CF
WP-2 CF
WP-3 CF
©The McGraw-Hill Companies, 2000
BIOS (basic
input/output
system)
ROM
RAM
I/O
File
~
~
~
~
Utilities
Read/write
head
WP-1 RWH
WP-2 RWH
WP-3 RWH
WP-4 RWH
WP-5 RWH
Work packages
~
Level
1
WBS and Organization Breakdown Structure
Integration
Personal computer
1.3
1.2
2
1.0
prototype
Vendor,
software,
applications
1.1
Mouse,
keyboard,
voice
3
Microprocessor
unit
Disk
storage
units
~ 1.1.1
~
Floppy
~
1.1.2
Optical
1.4.1
1.1.3
~
4
1.1.3.1
Motor
Organization Breakdown Structure
Manufacturing
Organization
Design
Test
Software
Circuit
board
Cost
account
Cost
account
Cost
account
Production
Purchasing
1.1.3.2
1.4.1.2
©The McGraw-Hill Companies, 2000
1.4.2.2
I/O
File
~
~
~
~
1.4.2.3
Utilities
~
1.1.3.4
Read/write
head
Cost
account
Cost
account
1.4.2.1
RAM
1.1.3.4.1
Cost
account
BIOS (basic
input/output
system)
ROM
1.1.3.3
Chassis
frame
1.4.2
Internal
memory
unit
Hard
1.4.1.1
Lowest manageable
subdeliverables
More
items
1.4
Cost
account
Cost account
number
Work packages
WP1.1.3.4.2.1
WP1.1.3.4.2.2
WP1.1.3.4.2.3
Budget by
period
Time
Work Packages allow Monitoring & Control
Scope
Deliverables
WBS
Organization
OBS
Database
Work Packages
Time
Resources
Labor
Materials
Support effort
Budgets
Responsibilities (SOW)
Performance Specs & Stds
©The McGraw-Hill Companies, 2000
Control
Plan,
schedule
baseline
Time, cost and
specifications
by
Deliverables
and
Organization
Realistic Project Planning Estimates
10%
Best-case schedule
470 days
50%
Baseline schedule
500 days
90%
Worst-case schedule
590 days
Actual tracking schedule
Actual schedule
Forecast completion
schedule
300 days
510 days
Baseline =[Pessimistic + (4 x Most Likely) + Optimistic]
6
©The McGraw-Hill Companies, 2000
Network Diagram (PERT Chart)
2
Software
development
18
2 20
22 40
3
1
2
0 2
0 2
Order
review
15
2 17
15 30
Order
standard
parts
Produce
standard
10
parts
2 12
5 15
7
5
40 45
40 45
10
30 40
30 40
4
Design
5
custom parts
13
2 15
2 15
8
Assemble
Legend
6 Manufacture
custom
15 hardware
15 30
15 30
Note: Red Line is the Critical Path
©The McGraw-Hill Companies, 2000
8
#
Activity
Duration
ES EF
LS LF
Test
Project Schedule (Gantt Chart)
2
1. Order review
5. Design custom parts
13
3. Order standard parts
15
4. Produce standard parts
10
18
2. Software development
6. Manufacture custom
hardware
15
10
7. Assemble
5
8. Test
0
Slack Time
7
14
Key Milestones
21
28
35
42
Note: Red Line is the Critical Path
©The McGraw-Hill Companies, 2000
49
Project Constraint Examples
Technical constraints
Pour
Frame
Roof
Design
Code
Test
(A)
Resource constraints
(B)
Purchase
refreshments
Decorate
hall
Plan
Reception
Hire band
(C)
Plan
Hire band
Decorate
hall
©The McGraw-Hill Companies, 2000
Purchase
refreshments
Reception
Resource Leveling
Early Start Resource Load Table
ID RES DUR ES LF TS 0
1
2
2
3
4
5
6
A
2
2
0
2
0
B
2
6
2
10
2
2
2
2
2
C
2
4
2
6
0
2
2
2
2
D
1
2
2
10
6
1
1
E
1
2
6
10
F
1
4
6
G
1
2
10
7
8
2
2
1
1
10
0
1
1
12
0
2
10 11
12
2
2
Total resource load
9
2
1
1
5
5
4
4
4
4
1
1
2
2
2
2
1
1
1
1
1
1
1
1
1
1
Leveled Resource Load Table
A
2
2
0
2
0
B
2
6
2
10
2
X
X
2
2
C
2
4
2
6
0
2
2
2
2
D
1
2
2
10
6
1
1
E
1
2
6
10
2
1
1
F
1
4
6
10
0
1
1
G
1
2
10
12
0
Total resource load
2
2
2
2
3
3
4
©The McGraw-Hill Companies, 2000
4
4
4
3
3
Boeing 787 Aft Body
Poor Resource Leveling
Risk Event Graph
Risk
High
Cost
• Crisis management requires significant resources
• Typically constrained by limited alternatives
• Best to mitigate risks before they become issues
Cost to fix
risk event
Chances of risks
occurring
Low
Pre-Concept Refinement
and
Project
life cycleEngineering
Technology
Manufacturing
Material
Solution
Analysis
Development
©The McGraw-Hill Companies, 2000
Development
Production &
Deployment
RIO Process
1.
2.
3.
4.
5.
6.
Identify Risk , Issue or Opportunity
Analyze Risk, Issue or Opportunity
Assess Available Options / Disposition
Develop Mitigation, Resolution or Capture Plan
Perform to the Approved Plan
Track & Communicate Progress (see cubes)
Risk Assessment Matrix
Risk event
ChanceLMH
SeverityLMH
Detection
difficultyLMH
When
System
freezing
Low
High
Low
Startup
User
backlash
High
Medium
Medium
Post
installation
Hardware
malfunctioning
Medium
High
High
Installation
©The McGraw-Hill Companies, 2000
Responses to Risk Matrix
Accept, reduce, Contingency
Risk event avoid, transfer
plan
Trigger
System
freezing
Reduce
Reinstall OS
Still frozen
after 1 hour
User
backlash
Reduce
Increase staff
support
Call from top
management
Hardware
malfunctioning
Transfer
Order different
brand
Replacement
doesn't work
©The McGraw-Hill Companies, 2000
Risk Cube
Likelihood
5
4
3
2
1
1
2
3
4
Consequence
High
Moderate
Low
5
Likelihood
Opportunities Cube
Consequence
O - Original
X - Current
High
Moderate
Low
Metrics - Schedule Control Chart
Schedule outlook
20
15
Today
10
Ahead of
schedule
5
Time
periods
0
-5
Behind
schedule
-10
-15
-20
0
1
2
3
4
5
6
7
8
Reporting period
9
10
11
12
13
A similar chart can be developed to depict Cost Variance
©The McGraw-Hill Companies, 2000
Metrics - Earned Value Chart
$500
$400
125%
100%
$340
85%
$300
75%
ACWP
actual cost
EAC
BCWS
baseline
BAC
BCWP
earned value
$200
50%
CV
$100
25%
SV
10
20
30
©The McGraw-Hill Companies, 2000
40
Why Lessons Learned?
• Organization Memory
•
Turnover demands an internal database
• Quality Customer Service
•
•
•
Document what they have bought
Whether they have expressed any concerns
How those concerns were handled
• Employee Involvement
•
•
•
Top management support
Make mistakes and learn from them
Recognize familiar patterns and avoid them
Courtesy of Carl L. Pritchard, “Lessons Learned in 21st Century”, PMI Symposium 1997
Capturing & Applying Lessons Learned
1. ID Success, Failures, Recommendations
2. Document and Report on Findings
3. Analyze Findings for Cause & Effect
• Actions Taken
4.
• Keywords
• Questionnaire
• Discussion Session
• Exec Summary
• Action Items
• Metrics
• New Processes
• Best Practices
Store Results in Project Repository
• Kick-Off Meeting
• Risk Planning
5. Retrieve Lessons Learned
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Capturing Lessons Learned
1. Questionnaire Surveys sent out in advance
– Document what went right, what went wrong and
what needs to be improved.
– Organize by categories (such as knowledge areas,
phases, tasks or processes)
– Quantitative questions (Likert scales) for statistical
analysis and qualitative (open-ended) questions
2. Conduct Lessons Learned Session
–
–
–
–
Identify participants and review survey results
Have a list of questions, assign roles, ground rules
Facilitator other than PM guides the brainstorming
Criticize the process - never the people!
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Seat Fabric Analysis
Fabrics arrived
late for testing
Blah-blah
Adequate fabric swatches were
made available
Yata-yata
Etc-etc
Testing ran into
the holidays
Lots of fabric suppliers were
found
Courtesy of PM One
Seat Fabric Analysis
Fabrics arrived
late for testing
Blah-blah
Adequate fabric swatches were
made available
Yata-yata
Etc-etc
Testing
ran intois
Ranking
holidays
Lots of fabric suppliers were
byfound
IMPACT to Project!
Courtesy of PM One
39
Applying Lessons Learned
3. Analyze & Organize Data
– Conduct Root Cause Analysis
• Fishbone chart and/or “five whys”
– Implementers should develop solutions
• Process improvements and/or training programs
4. Store Results in Project Repository
– Use a standard template for consistency
• Category, project name, lesson learned, root
cause, action taken, keywords, etc.
– Assign a resource to manage the database
– PMs are responsible for providing their lessons
learned inputs prior to project close-out
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Applying Lessons Learned
5. Retrieve & Use Lessons Learned
– Meet with Leadership to discuss new project
approach which includes lessons learned from past
– Discuss lessons learned at project kickoff meeting
– Use lessons learned for identifying project risks and
developing risk mitigation strategies
– Treat each project as a learning experience and
shares knowledge with the organization
– Be on the lookout for best practices
– Develop a culture of continuous process
improvement
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Lessons Learned Best Practices
• Review lessons learned from previous projects at the
beginning of your project. Standard Operating Procedure.
• Conduct lessons learned sessions at various times
throughout the life of your project. Must be timely.
• Have someone other that the PM facilitate the lessons
learned session and ask focused open-ended questions.
• Use templates for consistency. Keep it simple. Keywords.
• Perform a root cause analysis and engage appropriate
resources to implement solutions.
• Assign a Database Administrator to store on the Intranet.
• Use lessons learned during risk and opportunity planning.
• Leadership involvement to eliminate fear of retribution or
peer ostracism. Performance Reviews on the use of LL.
Courtesy of Sandra F. Rowe in “Applying Lessons Learned”, 2008 PMI Global Congress Proceedings
Please schedule an appointment:
Jim Wasson, Ph.D., MBA, PMP
Technology Business Consultant
Small Business Development Center
6296 Rivers Avenue, Suite 302
North Charleston, SC 29406
wassonjw@mailbox.sc.edu
843-804-9026