Operations and Supply Chain Management The Core

128 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
exhibit 5.1
Types of Development Projects
More
Change
Less
Breakthrough
Projects
Platform
Projects
Derivative
Projects
Product Change
New core
product
Addition to
product family
Product
enhancement
Process Change
New core
process
Process
upgrade
New machine
Research &
Development
New core
technology
Technology
upgrade
New software
Alliance &
Partnership
Outsource
major activity
Select
new partner
Select carrier
Project
A series of related
jobs usually directed
toward some major
output and requiring
a significant period
of time to perform.
Project
management
Planning, directing,
and controlling
resources (people,
equipment, material)
to meet the technical,
cost, and time
constraints of a
project.
Most companies deal with projects individually—pushing each through the pipeline as
quickly and cost-effectively as possible. Many of these same companies are very good at
applying the techniques described in this chapter in a manner in which myriad tasks are
executed flawlessly, yet the projects do not just deliver the expected results. Worse, what
often happens is that the projects consuming the most resources have the least connection
to the firm’s strategy.
The vital big-picture decision is what mix of projects is best for the organization. A
firm should have the right mix of projects that best supports a company’s strategy. Projects
should be selected from the following types: derivative (incremental changes such as new
product packaging or no-frills versions), breakthrough (major changes that create entirely
new markets), and platform (fundamental improvements to existing products). Projects can
be categorized in four major areas: product change, process change, research and development,
and alliance and partnership (see Exhibit 5.1).
In this chapter, we only scratch the surface in our introduction to the topic of project
management. Professional project managers are individuals skilled at not only the technical
aspects of calculating such things as early start and early finish time but also, just as important,
at motivating people. In addition, the ability to resolve conflicts as key decision points
occur in the project is a critical skill. Without a doubt, leading successful projects is the best
way to prove your promotability to the people who make promotion decisions. Virtually all
project work is teamwork, and leading a project involves leading a team. Your success at
leading a project will spread quickly through the individuals in the team. As organizations
flatten (through reengineering, downsizing, outsourcing), more will depend on projects and
project leaders to get work done, work that previously was handled within departments.
A project may be defined as a series of related jobs usually directed toward some major
output and requiring a significant period of time to perform. Project management can be
defined as planning, directing, and controlling resources (people, equipment, material) to
meet the technical, cost, and time constraints of the project.
Although projects are often thought to be one-time occurrences, the fact is that many
projects can be repeated or transferred to other settings or products. The result will be
another project output. A contractor building houses or a firm producing low-volume