Offshore R&D Project Management

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Information about Offshore R&D Project Management
Business & Mgmt

Published on September 30, 2008

Author: npsingh

Source: slideshare.net

Description

Off shoring and Outsourcing of design & research work has posed different type of challenges for operational and strategic management teams.

PROJECT MANAGEMENT IN GLOBAL & OFFSHORE R&D ENVIRONMENT: ISSUES AND EVOLUTION OF PROCESS Narendra Pratap Singh [email_address]

About The Topic Offshoring of product design, development, engineering and research is fairly new global phenomenon. Workflow at R&D center entails complexities in terms of varying size of work packets, work content, clarity level, type of work, control level etc. This is an effort to provide a practitioner's perspective about evolution of project management system & process at an offshore R&D and engineering center Structure Phenomenon of offshoring Categorization of workflow Project performance of offshore center Project Management Practices at the offshore R&D center Planning, Time, Communication, Cost, Quality, HR, Portfolio System requirement, PMO and Future predictions

Offshoring of product design, development, engineering and research is fairly new global phenomenon. Workflow at R&D center entails complexities in terms of varying size of work packets, work content, clarity level, type of work, control level etc.

This is an effort to provide a practitioner's perspective about evolution of project management system & process at an offshore R&D and engineering center

Structure

Phenomenon of offshoring

Categorization of workflow

Project performance of offshore center

Project Management Practices at the offshore R&D center

Planning, Time, Communication, Cost, Quality, HR, Portfolio

System requirement, PMO and Future predictions

Product of Flat World Driven by organizational ‘growth oriented’ forces Market expansion Selling Product customization & modification for local needs Manufacturing localization for cost cutting Local engineering support Engineering support to other business units’ engineering teams Success of engineering & design teams – Created confidence about skills External Drivers like core competency, cost competition IT outsourcing BP outsourcing KP outsourcing Engineering Services Outsourcing Offshoring Success & cost saving by IT, BPO & KPO – Created environment Phenomenon of globalization of ‘Business’ is taken as ‘Flattening of World’ Two forces, one from inside organization and another from external environment shaped offshoring of design, engineering and R&D Currently 500 offshore Engineering and R&D centers working in India No. growing @ 23% CAGR*

Driven by organizational ‘growth oriented’ forces

Market expansion

Selling

Product customization & modification for local needs

Manufacturing localization for cost cutting

Local engineering support

Engineering support to other business units’ engineering teams

Success of engineering & design teams – Created confidence about skills

External Drivers like core competency, cost competition

IT outsourcing

BP outsourcing

KP outsourcing

Engineering Services

Outsourcing

Offshoring

Success & cost saving by IT, BPO & KPO – Created environment

Phenomenon of globalization of ‘Business’ is taken as ‘Flattening of World’

Two forces, one from inside organization and another from external environment shaped offshoring of design, engineering and R&D

Currently 500 offshore Engineering and R&D centers working in India

No. growing @ 23% CAGR*

Working Model of Offshore R&D

Workflow – Projectizing it To Do Tasks Projects

Issue of Performance Parameters Traditional benchmarks for project performance parameter Time and schedule efficiency Cost and financial efficiency Resource utilization efficiency Deliverables’ quality as per predefined ‘known’ acceptability parameters Performance benchmark for ‘Innovation’ center’s sponsor Business value of output Cost saving by offshoring New initiatives Intellectual property creation Best utilization of all type of resources – proper administration Corporate measures the project output of their offshore center, differently from the existing project performance parameters

Traditional benchmarks for project performance parameter

Time and schedule efficiency

Cost and financial efficiency

Resource utilization efficiency

Deliverables’ quality as per predefined ‘known’ acceptability parameters

Performance benchmark for ‘Innovation’ center’s sponsor

Business value of output

Cost saving by offshoring

New initiatives

Intellectual property creation

Best utilization of all type of resources – proper administration

TRIZ Framework for Project Categorization TRIZ provides tools and methods for use in problem formulation, system analysis, failure analysis, and patterns of system evolution (both 'as-is' and 'could be').

TRIZ provides tools and methods for use in problem formulation, system analysis, failure analysis, and patterns of system evolution (both 'as-is' and 'could be').

Project Mgmt. Practices – Project Planning General Issues Away from market, customer & manufacturing Multiple locations / multiple systems Scoping Ownership End to end project for offshore center Specs. by sponsor, detailing and execution at offshore Work details from sponsor, ‘to do task’ at offshore Interventions Resolution Process for project initiation and authorization One innovation, product development process Collaborative planning Scoping Major role for sponsor Offshore center should try to fill ‘open space’ in scope, proactively Clear-cut work breakdown Clarity on ownership of WBS Time line, milestones & deliverables definition mutually agreed Approval on all aspects

General Issues

Away from market, customer & manufacturing

Multiple locations / multiple systems

Scoping

Ownership

End to end project for offshore center

Specs. by sponsor, detailing and execution at offshore

Work details from sponsor, ‘to do task’ at offshore

Interventions

Resolution

Process for project initiation and authorization

One innovation, product development process

Collaborative planning

Scoping

Major role for sponsor

Offshore center should try to fill ‘open space’ in scope, proactively

Clear-cut work breakdown

Clarity on ownership of WBS

Time line, milestones & deliverables definition mutually agreed

Approval on all aspects

Project Mgmt. Practices – Time Mgmt. Vis-à-vis onsite, offshore working adds extra hours Requirement understanding Communication Data management Reviews, approvals and reports At least two layers of project management Time efficiency becomes very important Resolution Invest time in requirement understanding Setting expectation Fully aligned team for each location/program Integrated project plan for both offshore and sponsor Time and task tracking system Fill gap projects and competency building for effective resource utilization Under a project Develop schedule for WBS Extra care for the scheduling of shared ‘domain experts’ Resource leveling as per project priority

Vis-à-vis onsite, offshore working adds extra hours

Requirement understanding

Communication

Data management

Reviews, approvals and reports

At least two layers of project management

Time efficiency becomes very important

Resolution

Invest time in requirement understanding

Setting expectation

Fully aligned team for each location/program

Integrated project plan for both offshore and sponsor

Time and task tracking system

Fill gap projects and competency building for effective resource utilization

Under a project

Develop schedule for WBS

Extra care for the scheduling of shared ‘domain experts’

Resource leveling as per project priority

Project Mgmt. Practices – Communication Mgmt. Considered important for project success Challenge in offshore environment Cultural aspects Distance and sense of it People handling communication – hard core domain expert Communicated things get lost in the haze of time Provide required infrastructure Mail/tele/video – con, recording, session sharing tools Policy matter on communication Calendar for real-time communication On-site visits at regular intervals Communication Record Important with PDLC Unified system for communication archiving

Considered important for project success

Challenge in offshore environment

Cultural aspects

Distance and sense of it

People handling communication – hard core domain expert

Communicated things get lost in the haze of time

Provide required infrastructure

Mail/tele/video – con, recording, session sharing tools

Policy matter on communication

Calendar for real-time communication

On-site visits at regular intervals

Communication Record

Important with PDLC

Unified system for communication archiving

Project Mgmt. Practices – Cost Mgmt. Cost heads Cost of human resources’ hrs. All project expenses Common expenses Capital expenditure Common Facilities (e.g. RP Machines) Time management system Average cost of hours from cost of human resource Project management system based expense tracker Inputs from financial operation Well defined financial process and tracker Organizational policy for common expense loading Depreciation loading for common capex. directly related to hours of project e.g.= (hrs. on project ‘x’/ total hrs)*(total depreciation) Tracker for the usage of special facilities Load the cost to projects Cost saving – first reason of offshoring Cost of project directly loaded to the cost of product, research program, new initiative

Cost heads

Cost of human resources’ hrs.

All project expenses

Common expenses

Capital expenditure

Common

Facilities (e.g. RP Machines)

Time management system

Average cost of hours from cost of human resource

Project management system based expense tracker

Inputs from financial operation

Well defined financial process and tracker

Organizational policy for common expense loading

Depreciation loading for common capex. directly related to hours of project e.g.= (hrs. on project ‘x’/ total hrs)*(total depreciation)

Tracker for the usage of special facilities

Load the cost to projects

Cost saving – first reason of offshoring

Cost of project directly loaded to the cost of product, research program, new initiative

Project Mgmt. Practices – HR Mgmt. Inside a project Assigning resource as per WBS Project leader Project specific team structure Domain specific leader Proper resource leveling Organizational Structure More than just a matrix structure Program (Vertical), Domain (Horizontal), COE’s (Bubble) Support departments (Finance, HR, Operation) – Coordination Performance Management Input from project portfolio system Appraise from all elements of org. structure Training need Recruitment For thinking ability, application mind and then for knowledge McGregor’s ‘Y’ people Failure handling / high self esteem people Retention Strategic aspect – can make or break the result ‘ Maslow’s hierarchy

Inside a project

Assigning resource as per WBS

Project leader

Project specific team structure

Domain specific leader

Proper resource leveling

Organizational Structure

More than just a matrix structure

Program (Vertical), Domain (Horizontal), COE’s (Bubble)

Support departments (Finance, HR, Operation) – Coordination

Performance Management

Input from project portfolio system

Appraise from all elements of org. structure

Training need

Recruitment

For thinking ability, application mind and then for knowledge

McGregor’s ‘Y’ people

Failure handling / high self esteem people

Retention

Strategic aspect – can make or break the result

‘ Maslow’s hierarchy

Project Mgmt. Practices – Quality Mgmt. Quality measurement for varying type of outputs Objectively measurable Quality of unseen, unknown Quality of research Quality as a feature Subjective quality statement about quality of product would work as a guideline something like ‘ Quality Mission Statement’ Review deliverables at every stage – gate jointly by sponsor, domain experts and team members Review comments & feedback from sponsor as ‘first priority’ input Quality process for ‘measurable’ Usage of suitable processes for subjective variables at appropriate stage FMEA, Six Sigma, DFA, DFM Quality in-built with work

Quality measurement for varying type of outputs

Objectively measurable

Quality of unseen, unknown

Quality of research

Quality as a feature

Subjective quality statement about quality of product would work as a guideline something like ‘ Quality Mission Statement’

Review deliverables at every stage – gate jointly by sponsor, domain experts and team members

Review comments & feedback from sponsor as ‘first priority’ input

Quality process for ‘measurable’

Usage of suitable processes for subjective variables at appropriate stage

FMEA, Six Sigma, DFA, DFM

Quality in-built with work

Project Portfolio Management Central system, a repository of all projects Immediate indicator about risk, deadlines, completions Report to corporate about performance Project based performance indicators Business value creation Direct and Indirect contribution Contribution in top-line, bottom-line and business sustenance All project expenses and costs Program performance Teams, individuals Competency development

Central system, a repository of all projects

Immediate indicator about risk, deadlines, completions

Report to corporate about performance

Project based performance indicators

Business value creation

Direct and Indirect contribution

Contribution in top-line, bottom-line and business sustenance

All project expenses and costs

Program performance

Teams, individuals

Competency development

System Requirement Enterprise Project Management (EPM) Hosted and centralized system Entail one resource repository Communication enabler Enable quick changes in plan Project Data and Document Management All project data, documents, communication Enabler of collaboration – PLM and EPM interconnection Transfer for meaningful project data to product management system Applications EPM should be capable to talk with organization systems ( Financial models, expenses, operational processes, HRIS etc.) Portfolio Management Built upon project management system for data integrity Dashboards with proper privilege definitions

Enterprise Project Management (EPM)

Hosted and centralized system

Entail one resource repository

Communication enabler

Enable quick changes in plan

Project Data and Document Management

All project data, documents, communication

Enabler of collaboration – PLM and EPM interconnection

Transfer for meaningful project data to product management system

Applications

EPM should be capable to talk with organization systems ( Financial models, expenses, operational processes, HRIS etc.)

Portfolio Management

Built upon project management system for data integrity

Dashboards with proper privilege definitions

PMO Process owner and manager Process standardization / templates /best practices Support, guidance & training provider Owner of project management system Strong IT support team for project management system Time management, engagement level assurance Requirement more prominent as the size of is now felt prominently Integrate the job for portfolio management Practical exposer of product development / innovation process first priority, knowledge of PM methodology second

Process owner and manager

Process standardization / templates /best practices

Support, guidance & training provider

Owner of project management system

Strong IT support team for project management system

Time management, engagement level assurance

Requirement more prominent as the size of is now felt prominently

Integrate the job for portfolio management

Practical exposer of product development / innovation process first priority, knowledge of PM methodology second

Future – Let’s Predict Future of work in organizations will be projectized. Projectized vs. Operationalized Creations/Innovation - projectized Improvement/Renovation – projectized Product or service lifecycle shortening – projectized There will be CPMO (Chief Project Management Officer) in the organizations. When so much of work as project, why not centralize its’ control When COO, why not CPMO or both Friction  transition  coordination  assimilation End Customer as part of product development projects Last mile consumer/ user of the product Like a stake holder - part of each milestone, review and input

Future of work in organizations will be projectized.

Projectized vs. Operationalized

Creations/Innovation - projectized

Improvement/Renovation – projectized

Product or service lifecycle shortening – projectized

There will be CPMO (Chief Project Management Officer) in the organizations.

When so much of work as project, why not centralize its’ control

When COO, why not CPMO or both

Friction  transition  coordination  assimilation

End Customer as part of product development projects

Last mile consumer/ user of the product

Like a stake holder - part of each milestone, review and input

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