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    ESD.36J System & Project Management

    Dynamics of Project Performance

    System Dynamics and Project Management

    Class Four (10/2/03)

    Copyright 2003James M. Lyneis

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    -Topics

    Review Practice for 10/3

    Staff and schedule dynamics

    Managing the Dynamics & Summary

    Homework 4

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    Graph for Quality

    1

    0.85

    0.7

    0.55

    0.40 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Quality : Class3 Step1 FractionQuality : Class2 Step2 Fraction

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    +Graph for Effect of Prior Work Quality on Quality

    1

    0.85

    0.7

    0.55

    0.40 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Effect of Prior Work Quality on Quality : Class3 Step1 DimensionlessEffect of Prior Work Quality on Quality : Class2 Step2 Dimensionless

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    Quality1 Fraction

    100 Task

    0.75 Fraction75 Task

    0.5 Fraction50 Task

    0.25 Fraction25 Task

    0 Fraction0 Task

    0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60Time (Month)

    Average Work Quality : Class3 Step1 FractionQuality : Class3 Step1 FractionUndiscovered Rework : Class3 Step1 TaskWork Done : Class3 Step1 Task

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    + Graph for Work Done100

    75

    50

    25

    0

    0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60Time (Month)

    Work Done : Class3 Step1 TaskWork Done : Class2 Step2 Task

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    With short time to discover rework,

    quality is better ...Graph for Quality

    1

    0.85

    0.7

    0.55

    0.40 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Quality : Class3 Step1 FractionQuality : Class3 Step1 Short TDRW Fraction

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    - because undiscovered rework is lower

    Graph for Undiscovered Rework20

    15

    10

    5

    00 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Undiscovered Rework : Class3 Step1 TaskUndiscovered Rework : Class3 Step1 Short TDRW Task

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    Less work needs to be done and

    the project finishes soonerGraph for Cumulative Work Done

    200

    150

    100

    50

    00 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Cumulative Work Done : Class3 Step1 TasksCumulative Work Done : Class3 Step1 Short TDRW Tasks

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    Lesson: Its the undiscovered rework!

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    -Topics

    Review Practice for 10/3

    Staff and schedule dynamics

    Managing the Dynamics & Summary

    Homework 4

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    - Staff and Schedule DynamicsSchedule pressure

    Adding staffSlipping schedule

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    Schedule Pressure

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    - Schedule PressureHow might management respond when

    a project falls behind schedule?

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    - Schedule Pressure How might management respond when

    a project falls behind schedule? Pressure team to work faster Work longer hours/overtime

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    - Schedule Pressure How might management respond when

    a project falls behind schedule? Pressure team to work faster Work longer hours/overtime

    Downsides - Haste makes waste Fatigue adds to mistakes (and may reduceproductivity)

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    Staff Level

    Scheduled

    Date

    Effect ofSchedule

    Table for Effectof Schedule

    Pressure on PDY

    Date Basedon Progress

    AnticipatedSchedule

    PerceivedReal

    Date

    Normal

    InitialScheduled

    Productivity

    Completion

    Pressure onProductivity

    IndicatedCompletion

    Overrun

    Completion

    Productivity

    Estimated Cost to Complete

    Completion

    Average Productivity

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    -Expected completion date:

    When will the project finish, given current

    time, estimated person-years remaining, andstaff?

    Estimated person-years remaining = work to

    do divided by productivity (person-months) Average Productivity = work believed to be

    done divided by cumulative effort expended

    (tasks/person-month)

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    - Effect of Schedule Pressure ... On Productivity On Quality

    p - Table for Effect of Schedule Pressur kup - Table for Effect of Schedule Pres

    2 1

    0 0-0.2

    01 0 1

    Anticipated Schedule Overrun (fraction)

    The tables are the inverse of each other

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    - Example Effect of Schedule Pressure on Productivity =

    Sensitivity for Effect of Schedule Pressure onProductivity * Table for Effect of SchedulePressure on Productivity + (1 - Sensitivity for

    Effect of Schedule Pressure on Productivity)

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    -Schedule Pressure Simulations

    If the effect of schedule pressure on quality is

    the exact opposite of that on productivity,schedule pressure in this simple modelcauses the project to finish somewhat later and cost more (Class3 Step2 vs Step1).

    However, if the quality effect is stronger thanthe productivity effect (Class3 Step2 PDY),then schedule pressure causes a significant

    delay in finishing.

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    +Graph for Cumulative Work Done

    400

    300

    200

    100

    00 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60

    Time (Month)

    Cumulative Work Done : Class3 Step1 TasksCumulative Work Done : Class3 Step2 TasksCumulative Work Done : Class3 Step2 PDY Tasks

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    Lesson: Monitoring/creating the wrong pressures can be counterproductive.

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    Staffing

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    - Adding Staff Assumptions

    hiring/transfer in delays equal 4 months,transfer out 1 month

    24 months are required to gain fullexperience

    inexperienced staff work at 50%productivity and quality of experienced staff

    there is no limit on staff available

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    Changing Schedule (not included in Class4.mdl)

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    -Summary of Model to Date

    Model has 3 effects on P & Q : Quality on quality Schedule pressure Experience

    Decisions to increase or reduce staffing Decisions to change scheduledcompletion date (to be added later)

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    -Topics

    Review Practice for 10/3

    Staff and schedule dynamics

    Managing the Dynamics & Summary

    Homework 4

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    Now that we understand what

    causes this behavior ...ProjectStaffing

    Typical

    Plan

    ... what canwe do aboutit?

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    + How does it get started?

    - TimeRemaining

    Skill &Experience

    Staff

    Morale Organisational Turnover HiringSize

    ChangesOvertime

    Schedule StaffingScheduled

    CompletionOut-of-Sequence

    Pressure Equivalent Requested

    Productivity Quality Staff onTime Project

    Work HoursExpendedProgressExpected to Date ExpectedWork

    Completion AvailabilityWork ToBe Done Really Done Hours at

    Time of Prerequisites Added CompletionWork Obsoleted

    Known Undiscovered WorkWork Qualityto Date Rework ReworkRework

    Discovery

    Perceived

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    How does it get started? +

    -

    Dynamics are initiated by (1) an infeasible

    initial plan, or (2)changes adding scope

    UndiscoveredReworkRework

    WorkReally DoneTo Be Done

    People

    Customer

    Changes

    and obsoleting completed work ...

    ScopeGrowth

    Known

    WorkProgress

    Rework

    Productivity Quality

    Discovery

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    + What makes it worse?- TimeRemaining

    Skill &Experience

    StaffMorale Organisational Turnover Hiring

    SizeChanges

    OvertimeSchedule Staffing

    Scheduled

    CompletionOut-of-Sequence

    Pressure Equivalent Requested

    Productivity Quality Staff onTime Project

    Work HoursExpendedProgressExpected to Date ExpectedWork

    Completion AvailabilityWork ToBe Done Really Done Hours at

    Time of Prerequisites Added CompletionWork Obsoleted

    Known Undiscovered WorkWork Qualityto Date Rework ReworkRework

    Discovery

    Perceived

    Progress Copyright 200310/02/03 - ESD.36J SPM James M. Lyneis 36

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    What makes it worse? +

    -Corrective actions to get the

    project back on track...

    Di

    ApparentProgress

    CustomerChanges Schedule

    Acceleration

    Overtime

    Hiring

    ScopeGrowth

    UndiscoveredRework

    KnownRework

    Work

    Really Done

    Work

    To Be Done

    Progress

    Rework

    scovery

    People Productivity Quality

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    -What makes it worse?

    create vicious circles that undercut intended

    ity

    ApparentProgress

    CustomerChanges

    Acceleration

    Work, WorksiteCongestion,Coordination

    Problems,

    Employee Skill

    Fatigue,Burnout

    Overtime

    Hiring

    ScopeGrowth

    effects

    UndiscoveredRework

    KnownRework

    WorkReally Done

    WorkTo Be Done

    Progress

    ReworkDiscovery

    People Productiv Quality

    Schedule

    Out-of-Sequence

    Morale Problems

    Average

    and Quality

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    Remember -+

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    PRODUCTIVITY = NORMALPRODUCTIVITY * EFFECT OF STAFFEXPERIENCE * EFFECT OF QUALITY OFPRIOR WORK* ...

    Dimensions: Productivity -- Tasks/Month/Person Normal Productivity -- Tasks/Month/Person Effects -- Dimensionless

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    +

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    -The effects are laws of nature ...

    2 2

    E f f e c

    t o

    f S t a f f E x p e r

    i e n c e

    0 00 5 10 0 .5 1

    Years Experience Quality of Prior Work

    What determines how the projectmoves up and down the curves?

    E f f e c

    t o

    f Q u a l i

    t y o

    f

    P r i o r

    W o r

    k1 1

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    2003

    Work Qualityto Date

    ScheduledCompletion

    Time

    ExpectedCompletion

    Time Availability

    of Prerequisites

    Progress

    Pressure

    Out-of-SequenceWork

    Morale

    ExpectedHours at

    Completion

    Hours

    to Date

    Skill &Experience

    Hiring

    Equivalent

    Staff onProject

    StaffingRequested

    Turnover Organisational

    Changes

    Staff

    Quality

    Added

    WorkWork

    Overtime

    TimeRemaining

    Be Done

    Management Actions !

    Copyright

    Perceived

    Schedule

    ExpendedProgress

    ReworkDiscovery

    Size

    Productivity

    Obsoleted

    Work To

    UndiscoveredRework

    KnownRework

    WorkReally Done

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    -Major Themes to Date

    Viewpoint on causes of dynamic

    behavior, and an introduction to thetheory and tools to understand thatbehavior

    Insights into the dynamics of complexprojects

    One model of the causes of thosedynamics

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    - Are There Alternative Models?

    More P & Q effects, etc.

    Variations on the basic rework cycle Multi-project and organizational models

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    + More Productivity and Quality

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    More Productivity and Quality

    Effects:Model has 3 effects on P & Q :

    Quality on quality

    Schedule pressureExperience

    What additional affects could be included?

    Morale Organizational SizeOvertime ChangesSequence Availability of supplier

    Other types of experience informationand materialsSkills match to needs...

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    Other simplifications?

    Task dependence/sequence is not representedexplicitly -- with enough staff, could finish theproject in a week

    Only one phase of work explicitly represented Suppliers are not represented Interactions with other projects are not

    represented

    These are treated endogenously or exogenouslyin more comprehensive models, and will bediscussed in the remaining sessions.

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    -When is the project finished?

    In the current model, keep working until

    all work is completed correctly. In othersituations, schedule may be morecritical and therefore the project might:

    reduce scope to meet schedule ship with errors

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    + Variations on the Basic Rework

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    Variations on the Basic Rework

    Cycle Abdel-Hamid software development

    model Ford-Sterman product developmentmodel

    (see SD Bibliography on s e rver )

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    -Broader Dynamics

    Multi-project and organizational

    dynamics: implementation of new tools and processes competition between concurrent and futureprojects for resources

    (We will discuss later in the term, but seeRepenning and Sterman websites)

    Copyright

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    -Does the basic model apply to ...

    Product development vs. one-of-a-

    kind construction projects? ... Hardware vs. software?

    Consumer products vs. military?

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    -Topics

    Review Practice for 10/3

    Staff and schedule dynamics

    Managing the Dynamics & Summary Homework 4

    Copyright

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    -Brooks Law

    "Adding manpower to a late software

    project makes it later." Brooks,Frederick P. Jr. The Mythical Man-Month. Reading, MA, Addison Wesley,1995.

    Copyright

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