Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2009 Copyright © 2009, Trish Melton, Published by Elsevier Ltd. All rights reserved The rights of Trish Meltonl and Peter Iles-Smith to be identified as the authors of this work have been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ((cid:2) 44) (0) 1865 843830; fax ( (cid:2) 44) (0) 1865 853333; email: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions , and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instruction or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN: 978-0-7506-8515-3 For information on all Butterworth-Heinemann publications visit our web site at www.elsevierdirect.com Typeset by Charon Tec Ltd., A Macmillan Company (www.macmillansolutions.com) Printed and bound in Great Britain 09 10 10 9 8 7 6 5 4 3 2 1 0011__HH88551155__PPRREELLIIMMSS..iinndddd iivv 1111//2255//22000088 77::1177::1155 PPMM About the authors Trish Melton is a project and business change professional who has worked on engineering and non-engineering projects worldwide throughout her career. She works predominantly in the chemicals, pharmaceuticals and healthcare industries. She is a Chartered Chemical Engineer and a Fellow of the Institution of Chemical Engineers (IChemE), where she was the founder Chair of the IChemE Project Management Subject Group formed in 1998. She is a part of the Membership Committee which reviews all applications for corporate membership of the institution, and in 2005 she was elected to the Council (Board of Trustees). She is an active member of the International Society for Pharmaceutical Engineering (ISPE) where she served on the working group in charge of updating ISPE’s A ctive Pharmaceutical Ingredient (API) Baseline® Guide . She was the founder Chair of the Project Management Community of Practice (PMCOP), formed in 2005. She has presented on various subjects at ISPE conferences including project management, quality risk management and lean manufacturing and has also supported ISPE as the conference leader for project management and pharmaceutical engineering conferences. She is also the developer and lead trainer for ISPE’s project management training course. In 2006, the UK Affiliate recognized Trish’s achievements when she was awarded their Special Member Recognition Award. In 2007, she was also honoured for ‘ Outstanding Leadership and Service ’ , related to her work on the launch and development of the PMCOP. Trish is the Managing Director of MIME Solutions Ltd, an engineering and management consultancy providing project management, business change management, business improvement, regulatory and GMP consulting primarily for pharmaceutical, chemical and healthcare clients. Within her business, Trish is focussed on the effective solution of business challenges, and these inevitably revolve around some form of project: whether a capital project, an organizational change programme, a business improvement using Lean Six Sigma or an interim business solution. Trish uses project management on a daily basis to support the identification of issues for clients and implementation of appropriate, sustainable solutions. Good project management equals good business management, and Trish continues to research and adapt best practice project management in a bid to develop, innovate and offer a more agile approach. Peter Iles-Smith is a project management and engineering professional who has worked in the field of manufacturing automation and IT projects in the oil and gas, chemical and pharmaceutical industries for vendors and users. The last 5 years have been spent developing strategies, projects and technologies to improve pharmaceutical manufacturing. v 0022__HH88551155__BBIIOO11..iinndddd vv 1111//2255//22000088 77::0077::0033 PPMM About the authors Peter is a Chartered Chemical Engineer and a Fellow of the Institution of Chemical Engineers (IChemE). He was a founder member of the IChemE Project Management Subject Group and is the current Chair. He is a former Chair of the IChemE Process Management and Control Subject Group and has served on Council twice. He is a founder committee member of the ISPE PMCOP and former Education Chair of WBF (World Batch Forum), the forum for manufacturing professionals. In his current position, he is responsible for the automation projects strategy within the technical and engineering functions of a major pharmaceutical manufacturer. vi 0022__HH88551155__BBIIOO11..iinndddd vvii 1111//2255//22000088 77::0077::0033 PPMM About the Project Management Essentials series The Project Management Essentials series comprises four titles written by experts in their field and developed as practical guidelines, suitable as both university textbooks and refreshers/additional learning for practicing project managers: Project Management Toolkit: The Basics for Project Success . Project Benefi ts Management: Linking Projects to the Business . Real Project Planning: Developing a Project Delivery Strategy . Managing Project Delivery: Maintaining Control and Achieving Success . The books in the series are supported by an accompanying website: www.icheme.org/projectmanagement , which delivers blank tool templates for the reader to download for personal use. vii 0033__HH88551155__BBIIOO22..iinndddd vviiii 1111//2255//22000088 77::0077::2255 PPMM Foreword This book has become a reality for a number of reasons: As experienced Project Managers, we realized that more and more we were dealing with customers, sponsors and project team members who had no project management experience. The fi rst book in this series, P roject Management Toolkit , was a direct response to that. However we have found that project delivery is a particular area where expertise is needed. As founders of the IChemE Project Management Subject Group (PMSG) and then more recently a part of the Continuous Professional Development (CPD) and Publications Sub-groups, it was also evident that there wasn’t a full series of books which would support the further development of Project Managers. Managing Project Delivery: Maintaining Control and Achieving Success is intended to be a more in-depth look at the third value-added stage in a project and builds on from Chapter 5 of P roject Management Toolkit (Melton, 2007). The other books in the project management series are outlined earlier (page vii). Although this book is primarily written from the perspective of engineering projects within the process industries, the authors ’ experiences both outside of this industry and within different types of projects have been used extensively. The tools, methodologies and examples are specific enough to support engineering managers delivering projects within the process industries; yet generic enough to support the R & D manager in launching a new product, the business manager in transforming a business area, the IT manager in delivering a new computer system or the Lean Six Sigma practitioner in delivering step change business improvements. The breadth of the short and full case studies demonstrates the generic use of these delivery methodologies over a wide range of industries and project types. Project delivery is achieved by people and impacts people. All projects start life as separate entities to the normal business environment. However, if they are planned and delivered with little consideration of, or consultation with, those involved or affected, the impact is felt long after the ‘ hard ’ side has been forgotten. This book demonstrates the importance of integrating the hard and soft elements of project delivery, ensuring that ‘ no project is an island ’ . Dr Trish Melton and Dr Peter Iles-Smith ix 0044__HH88551155__FFOORR..iinndddd iixx 1111//2255//22000088 77::1155::5555 PPMM Acknowledgements In writing a book which attempts to go into greater detail and to share a greater level of expertise than previously ( Project Management Toolkit ), you need to effectively develop that expertise – gain peer review of that expertise and then share and test it. We therefore want to acknowledge a number of people against these specifics: For supporting the development of project delivery expertise over many years: All past colleagues and clients. For supporting the peer review of this collated project delivery expertise: Bill Wilson, Astrazeneca. For sharing and testing this collated project delivery expertise on real ‘ live ’ projects: All current clients, in particular Paul Burke, Astrazeneca. Associates of MIME Solutions Ltd such as Victoria Bate, Andrew Roberts and others. In particular we want to thank Andrew for his insight and contribution of some of the unique project challenges when improving a business using Lean Six Sigma techniques. Finally we would like to acknowledge the support of our families, in particular our partners Andrew and Heather and the special contribution of Katie. Authors Note: Although all the case studies presented in this book are based on real experiences they have been suitably altered so as to maintain complete confi dentiality. xi 0055__HH88551155__AACCKK..iinndddd xxii 1111//2255//22000088 77::0066::3388 PPMM How to use this book When you pick up this book we hope that before you delve into the content you’ll start by glancing here. The structure of the book is based on the concept that every project goes through three types of delivery phases – these are described in Chapter 1 and then each phase becomes the subject of its own chapter (Chapters 3–5). Chapter 1 is a general introduction to the concept of controlled project delivery. This can be read at any time to refresh you on some basic concepts which are applied within the core chapters. This chapter also provides the link between the P roject Management Toolkit (Melton, 2007) and this book, which is a more in-depth look at the third value-added stage in a project. Chapter 2 reflects on the ‘ thing ’ being delivered and considers the similarities and differences in delivering a stand-alone project, a programme or a portfolio of projects. Chapters 3–5 are the ‘ core chapters ’ made up of the following generic sections: Introduction of detailed delivery concepts. Presentation of specifi c methodologies and how they support effective delivery. Introduction of project delivery tools and associated tool templates. Demonstration and/or further amplifi cation of chapter concepts, methodologies and tool use through the use of short case studies. Presentation of troubleshooting notes and a summary of handy hints. Each core chapter can ‘ stand-alone ’ so the reader can dip into any delivery phase. Chapter 6 is a collation of short case studies which demonstrate a lack of delivery management success and analyse ‘ why? ’ Chapters 7 and 8 contain a series of fuller case study projects, and in effect is the culmination of the use of all the areas of expertise introduced in the previous chapters. These aim to show the breadth of project delivery issues that may arise and how these have been successfully dealt with. Within these case studies various formats for project delivery progress reporting are presented, based on the needs of the specific project or programme. The blank project delivery tool templates can be accessed via either of the following two websites: http://books.elsevier.com/companions or www.icheme.org/projectmanagement. The actual format of the template cannot be changed but the tool can be used electronically by the reader to fill in the project data as required. xiii 0066__HH88551155__HHTTUU..iinndddd xxiiiiii 1111//2255//22000088 77::1166::2222 PPMM How to use this book And remember . . . As a Project Manager your goal is to deliver the project as planned, taking into account the current environment – both internally within the project and externally within the business. Plans are only value add if they are used during delivery. Plans change over time. It is better to plan the change than explain the failure. Project delivery is about change – both internally within the project and externally within the business. The role of the Project Manager is to facilitate that change to deliver the benefi t. xiv 0066__HH88551155__HHTTUU..iinndddd xxiivv 1111//2255//22000088 77::1166::2222 PPMM Introduction This book develops the project delivery concepts originally outlined in P roject Management Toolkit (Melton, 2007). Following the approval of the Project Delivery Plan (PDP), the Project Manager and Project Team are ready to commence project delivery. At this stage, it is crucial that the plan is followed in order to manage uncertainty and increase the probability of success. The role of a Project Manager at this stage in a project is to be in control – of both the ‘ hard ’ and ‘ soft ’ side of a project. This means management of team and stakeholder relationships, the link to the business environment, as well as the controlled delivery of scope within agreed cost, time, quality, quantity and functionality targets. The project lifecycle As outlined in Project Management Toolkit (Melton, 2007), a project goes through four distinct ‘ value- added ’ stages from its start point to its end point ( Figure 1-1 ). Each stage has its own start and end point, and each has a specifi c target to achieve. Effectively each stage can be considered a ‘ project ’ within a project. STAGE ONE STAGE TWO STAGE THREE STAGE FOUR Business Project Project Benefits case delivery delivery delivery development planning Figure 1-1 The four ‘ value-added ’ project stages Stage One: Business case development The project start point is usually an idea within the business, for example an identifi ed need, a change to the status quo or a business requirement for survival. At this stage, the project management processes should be challenging whether this is the ‘ right ’ project to be progressing. Stage Two: Project delivery planning This stage is all about planning and the project management processes are used to determine how to deliver the project ‘ right ’ . 1 0088__HH88551155__CChh0011..iinndddd 11 1111//2255//22000088 77::0077::5555 PPMM