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Organizational Project Management Maturity Model (OPM3)

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Presentation on theme: "Organizational Project Management Maturity Model (OPM3)"— Presentation transcript:

1 Organizational Project Management Maturity Model (OPM3)
Dr. Khaled Bubshait

2 Dr. Khaled Ahmed Bubshait
Khaled Bubshait is a Professor of project/operations Management at King Fahd University of Petroleum and Minerals. He was the former Director of the Economic and Management Center at the Research Institute at KFUPM, Dhahran, Saudi Arabia. He received his undergraduate degree B.S in applied Civil Engineering (1976) , his MBA from KFUPM(1978), and his PhD from Georgia State University, USA (1984). He published several articles in the area of project Management, operations Management, Total Quality Management, Business Incubator and SME Strategies . Also he led the project team for establishing a National Training Plan for the Kingdom of Saudi Arabia. He is also in the Editorial Board of the Business Process Reengineering & Management Journal and the Benchmarking Journal. And Dr. Bubshait was the former president pf the American Cost Engineer Arabian Gulf Section Tel

3 PRESENTATION OUTLINES
The philosophy of Project Management Reasons For project Failure OPM3 Definition Implementation Process Benefits Source

4 The philosophy of Project Management

5

6 DEADLINE WORRY TIME

7 PROJECT MANAGEMENT CYCLE
PROPOSAL PLAN CONTROL DECISION ANALYSIS

8 Project Management Systems
Time Data Cost Data Performance Data Procurement Data Owner special Data Project Meeting Project Status Report Progress Measure Procurement Contractual Conditions Brainstorming Process Company Needs Market Research. Feasibility Study Change of Objectives New Product Development Project Plan Project Control Proposal Commissioning Corrective Actions Analysis Contractor Productivity Procurement Deadlines Manpower Loading Claim Request Proposal Development Conceptual Estimate Paper Design basis Paper Full Proposal Change Orders Additional Time/Cost Analysis Project Management Systems

9 31.1% of projects will be canceled before they ever get completed.
Practices More than $250 billion is spent each year in the United States on IT application development of approximately 175,000 projects. 31.1% of projects will be canceled before they ever get completed.

10 52.7% of projects will cost 189% of their original estimates.
Lost opportunity costs are not measurable, but could easily be in the trillions of dollars.

11 69% of organizations have no formal organizational definition of project management roles and responsibilities 62% of project resources are allocated to projects on a part-time or informal basis

12 81% of resource assignments occur with no formal coordination or organizational management
64.5% of project managers have little or no formal training in project management or resources allocation.

13 Most people working as project managers today didn't set out as such as their career path. In point of fact, for many project managers it still isn't their career path. Many still have full-time jobs and functional responsibilities, and the task of keeping one--or several--projects in line is just one of many balls they juggle as they navigate their day.

14 The Top 10 Reasons Projects Fail (1)
Inadequately trained and/or inexperienced project managers; Failure to set and manage expectations; Poor leadership at any and all levels; Failure to adequately identify, document and track requirements; Poor plans and planning processes;

15 The Top 10 Reasons Projects Fail (2)
Poor effort estimation; Cultural and ethical misalignment; Inadequate or misused methods; and Inadequate communication, including progress tracking and reporting; Misalignment between the project team and the business or other organization it serves.

16 What Does it Take? Project integration management;
Project scope management; Project time management; Project cost management; Project quality management; Project human resource management; Project communications management; Project risk management; and Project procurement management.

17 OPERATIONS MANAGEMENT
TOP MANAGEMENT M I D L E ENG. UTILITIES MANAGEMENT OPERATIONS MANAGEMENT

18 Misalignment between the project team
and the business or other organization it serves

19 Since 1998, hundreds of professionals have contributed to the development of a new PMI standard called “OPM3” that will help organizations address these issues.

20 Organizational Project Management Maturity Model
WHAT IS OPM3? OPM3 is an acronym for the Organizational Project Management Maturity Model a standard developed under the stewardship of the Project Management Institute. s

21 The purpose of this standard
is to provide a way for organizations to understand organizational project management and to measure their maturity against a comprehensive and broad-based set of organizational project management Best Practices. OPM3 also helps organizations wishing to increase their organizational project management maturity to plan for improvement.

22 Organizational Maturity Levels
  Level 5 – Optimizing Processes and performance continually improved through quantitative measures and analysis. (leader) Level 4 – Quantitatively Managed Product quality and process performance are quantitatively measured. A repository of measures exists to support fact-based decision-making.( Lesson learned) Saudi Aramco  Level 3 – Defined Processes are defined, understood, and consistently applied from an organizational perspective. Processes are proactively managed and improved. Level 2 – Managed Repeatable processes are practiced on a project level. Process discipline is maintained through times of stress. Visibility to Status and delivery of work products at defined intervals. Level 1 - Initial Processes are ad hoc. Results are unpredictable. Success is dependent on heroics of the project team.

23 OPM3 WHAT FOR? PMI’s Organizational Project Management Maturity Model or OPM3 is designed to guide organizations in the development of the Capabilities necessary to achieve Best Practices in Organizational Project Management (OPM). OPM combines portfolio, program, and project management to achieve the goals/strategies of an organization through projects.

24 OPM3 SPECIFICALLY ADDRESSES THE FOLLOWING 10 AREAS:
1. Standardization and Integration of Processes 2. Utilization of Performance Metrics 3. Commitment to the Project Management Process 4. Alignment and Prioritization of Projects 5. Implementation of Continuous Improvement Processes 6. Using Success Criteria for results analysis 7. Understanding People and Competence 8. Allocation of Resources to Projects 9. Organizational Fitness 10. Teamwork.

25 HOW DOES OPM3 WORKS? There are three basic elements to applying OPM3 in an organization: Knowledge Assessment Improvement .

26 HOW DOES OPM3 WORKS? Knowledge
There are three basic elements to applying OPM3 in an organization: Knowledge OPM3 is the first iteration of a body of knowledge on the subject of organizational project management and a subset of the larger project Management Body of Knowledge (PMBOK). Because this standards will form the basis of an organization's maturity assessment, familiarity with the contents of the standard is essential.

27 Assessment. In Assessment, the organization uses an assessment tool to determine areas of strength and weakness in relation to the body of best practices. This assessment process will help the organization decide which Best Practices or groups of Best Practices to investigate further, either to confirm competency in an area or to identify constituent Capabilities of one or more Best Practices that need attention. OPM3 outlines how to conduct this detailed investigation in the most helpful way for the organization, through the use of the Directories.

28 . Improvement The results of the Assessment will include a list of capabilities not yet fully developed in the organization. OPM3 provides guidance in placing these in order of importance, and this sequence forms the basis for any subsequent plans for improvement. The actual process of implementing improvements in an organization, which may involve organizational development, change management, restructuring, retaining, and other initiatives, is beyond the scope of this standard.

29 Procurement Planning Requirements input Tools & Techniques Output
Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy Tools & Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT Output Procurement Management Plan

30 Quality Planning Requirements
Quality Assurance Requirements Quality Control input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Check list Tools & Techniques Benchmarking Flowcharting Cost of quality Project Schedule Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Trend analysis Output Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment

31 OPM3 Implementation Process

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35 Source Selection Requirements input Tools & Techniques Output RFI RFP
Evaluation Criteria Organizational Policy Tools & Techniques Contract Negotiation Audit Output Contract File Contract MIS

36 Procurement Planning Requirements input Tools & Techniques Output
Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy Tools & Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT Output Procurement Management Plan

37 Quality Planning Requirements
Quality Assurance Requirements Quality Control input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Check list Tools & Techniques Benchmarking Flowcharting Cost of quality Project Schedule Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Trend analysis Output Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment

38 OPM3 Benefits Help organizations understand current project management, program management and portfolio management. Enable executives to assess their own organization or partner’s ability to achieve strategic priorities through projects. Identify areas for improvement and ways to make coordinated improvements by increments. Help all level of management understand how to create an environment for successful project activity.

39 Help those responsible for project management, identify drivers of project results and set standards for excellence. Enable organizations to achieve consistent implementation of project management work methods through standardization and institutionalization. Demonstrate relationships between executive functions and project management functions. Explain how to make project management measurable within an organization.

40 Rally an organization or its partners to focus on project management improvements.
Facilitate organizational change associated with developing projects, program, and portfolio management functions. Develop consistency and predictability in project delivery. Distinguish your own organization from competitors.

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