1. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Systematic Project Management: Aspects on Uncertainty and on Assigning Responsibilities Karlos Artto HUT / Department of Industrial Engineering and Management S-72.124 Product Development of Telecommunication Systems

2. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Systematic Project Management: Aspects on Uncertainty and on Assigning Responsibilities - Lecture Content: Maintaining the Strategic Perspective on the Project Product during the Project Life Cycle Taking Uncertainty into Account: Risk Identification and Risk Analysis Applications (Case) Organizing for Communication and Responsibility Assignments (Risk Management as a Communication Tool) Examples and Cases, Risk Management Applications in Industry

3. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 PRODUCT DEVELOPMENT NEW PRODUCT PLATFORMS DELIVERY PROJECTS BODY OF PRODUCT KNOWLEDGE PRODUCT PLATFORMS  PRODUCT ARCHITECTURES AND VARIATIONS  MODEL DRAWINGS AND SPECIFICATIONS  DESIGN RULES ETC. FEEDBACKSUPPORT COMPANY PRODUCTS PROJECT PRODUCTS COMPANY LEVEL PROJECT LEVEL Analogy between product development, and a delivery of an unique project Source: Meklin, Lahti, Kovanen, Arenius, Artto 1999

4. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Goals and Methods Matrix Methods well defined Goals well defined No Yes Type 2: Product Development Type 4: Research & Organizational Change Type 1: Engineering Type 3: Systems Development YesNo

5. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Approaches to Manage the Basic Types of Projects  Research projects: Setting goals and measuring progress against those goals.  New product development (NPD) projects: Managing a diverse group of technical specialists, focus on quality and time.  Change, organizational reengineering projects: Team building and refinement of objectives.  Information technology (IT), information system (I/S) projects: Tight project control and readiness to adapt to changing requirements from the customer.  Building construction projects: Control of labor hours and cost control is important.

6. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Milestones 1 Activity entity 1 Activity entity 2 Activity entity 3 Milestones 2 Milestones 3 Maintaining the Focus on the Progress of the Project Product: The Milestone Plan

7. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Project Management (Areas)

8. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Management Overview According to PMI PMBOK

9. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risks of Different Magnitude Probability Cost Low Risk Medium Risk High Risk

10. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Analysis Case

11. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Analysis Case cont’d

12. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Risk Analysis Case cont’d

13. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 An Analogy in ‘Critical Chain’ -method: Team Focus on Buffers

14. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 The Team Aspect Reconsidered: Risk Analysis Day of HUT TAI Research Centre Pre-assignment Individual opinions of important risks Risk Analysis Day Results Open Communication Response Development and Responsibilities Increased Awareness Integration: 1) Within the team 2) Within the risk management process 3) Responses to company’s responsibility areas Documentation, reports

15. Helsinki University of Technology Department of Industrial Engineering and Management © Karlos Artto / HUT 2000 Conclusions - Lecture Content was: Maintaining the Strategic Perspective on the Project Product during the Project Life Cycle Taking Uncertainty into Account: Risk Identification and Risk Analysis Applications (Case) Organizing for Communication and Responsibility Assignments (Risk Management as a Communication Tool) Examples and Cases, Risk Management Applications in Industry