Implementing SE and Advanced PM

in Large and Complex Projects:

The Case of A New Airport Operational Readiness Project
Prof. Dov Dori, Prof Aaron Shenhar, Ori Orhof
March 2015


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March 2015

Systems Engineering
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March 2015

ORAT - Organizational Readiness and Airport Transfer

ORAT - Operational Readiness and Airport Transfer

Complex Systems (Products) and Complex Projects

Complex Systems
Multiplicity of diverse, connected, interdependent, and
adapting components
Complex Projects
Structural complexity
Uncertainty
Urgency
Dynamics
Socio-Political
6

ORAT - Operational Readiness and Airport Transfer

1st level All airport
1.

2.
3.
4.

Departing passenger

1.

Arriving to airport

1.

Regular

Arriving passenger

2.

Traffic and parking

2.

Oversized baggage

Departing baggage

3.

Entering to terminal

3.

Supersized baggage

4.

Security profiling

4.

Overweight

5.

Check-in

5.

Animals

6.

Late passenger

7.

Wheelchaired

8.

Unaccompanied child

9.

VIP

Arriving baggage

5.

Departing cargo

6.

Arriving cargo

7.

Departing airplane

8.

Arriving airplane

9.

Transfer

10. Lateral processes

7

3rd level Check-in

2nd level Departing pax.

6.

Check-point

7.

Passport control

8.

Departure hall

9.

Boarding

10. Diplomat
11.

ORAT Project Complex Product and Complex Project

Processes
10 Core processes (1st level)
~100 Secondary processes (2nd level)
~700 Sub-processes (3rd level)

Process planning

SOP (Standard Operating Procedure)

Procurement
IT
Bids (subcontracting and
concessionaries)
Construction changes
Recruitment
Instruction & training
8

Complex Systems
Multiplicity of diverse,
connected,
interdependent, and
adapting components

Complex Projects
Structural complexity
Uncertainty
Urgency
Dynamics
Socio-Political

Systems Engineering Vee Model

Source: SE Handbook, 2011

Vee Model Adapted for ORAT

10

ORAT Processes = ORAT Components

Some Components are More Critical than the Others

Processes
10 Core processes (1st level)
~100 Secondary processes (2nd level)
~700 Sub-processes (3rd level)

Process planning

11

SOP Standard Operating Procedure

Purchasing
IT
Bids (subcontracting and concessionaries)
Construction changes
Recruitment
Instruction & training

What is a Critical Component?

A 'critical component' is defined as a unit of work at the
subproject level which imposes exceptional risk to the
success of the project.

12

What is Project Success?

Product Management - Effectiveness

Scope

Budget

Schedule

Scope

Value

Budget

Schedule

Project Governance - Efficiency

13

Efficiency Vs. Effectiveness

Product management to do the right things
Effectiveness (Scope, Value to the Customer)

Project governance to do things right Efficiency

(Budget and Schedule)

No project is ever a complete failure - it can always

serve as a bad example (Murphys book of laws - the futility factor )

What is a Critical Component?

A 'critical component' is defined as a unit of work at the
subproject level which imposes exceptional risk to the
success of the project.
The Success of the Project is:
1. The Efficiency of the project governance
2. The Effectiveness of the product
15

Components of Complex Projects / Programs

Cant see the forest for the trees
Cant see the trees for the forest

16

Critical Components Analysis - CCA

(The risks to the projects success)
1. The efficiency of the project governance Challenge (difficulty)
2. The effectiveness of the product Vitality (importance)

17

The Challenge (Difficulty) to the Project

Uncertainty of the method (way) or goals
Structural complexity
Urgency
Regulation

Organizational Bureaucracy
Lack of resources
18

The Vitality (Importance) to the Product

Value to the customer
Competitive advantage
Functional centrality

19

Critical Components Analysis - CCA

1.

The efficiency of the project governance Challenge (difficulty)

2.

The effectiveness of the product management Vitality (importance)

CCA of Departing-Passenger process

Process

Challenge

Vitality

Criticality

Arriving to
airport

Low

High

Medium

Traffic and
parking

Low

Medium

Medium

Check-in
(SSBD)

High

High

High

Passport
control

High

High

High

Boarding

Low

High

Medium

Gardening

Low

Low

Low

20

The Dimension of Challenge and Vitality

Challenge

Vitality

difficulty to the completion of the

importance to the success of the product

component

Solution:

Function:

Internal The level of uncertainty of the solution How central is the component to the

External

required to achieve the component

functionality of the product

Constraints:

Value:

Demands and constraints imposed by

The contribution of the specific

external to the project elements (e.g.

component to the competitive

regulation, bureaucracy, management) advantage of the product over its

immediate competition or the value it

21

provides to customers and users

The Diamond of the Sub-Project Level

Function

Vitality
Essential

Effectiveness of the product

Bounding Restricting

Limiting

Constraints

Internal

Central

Marginal
External

Nice-to-Have Better-Have
Known-Knowns

Known-Unknowns

Challenge

Unknown-Unknowns

Efficiency of the project management

Solution
Uncertainty

Value
Must-Have

23

The Components Diamond Managerial Implications

Function
Early start (ASAP)
Finish as soon as possible
Functional Tests
Early start (ASAP)
Stakeholder management
Regulation management
Risk management
Time & budget slacks

Constraints

Value

Early start (ASAP)

Functional modelling
POC and prototyping
Management Reviews
Learning and selectionism
Late design freeze
Time & budget slacks

Early start (ASAP)

Customers testing and feedback
Marketing involvement
Product prototyping

Solution Uncertainty

In Conclusion
Processes
10 Core processes (1st level)
~100 Secondary processes (2nd level)
~700 Sub-processes (3rd level)

Process planning

25

SOP Standard Operating Procedure

Purchasing
IT
Bids (subcontracting and concessionaries)
Construction changes
Recruitment
Instruction & training

Vee Model Adapted for ORAT

26

Critical Components Analysis - CCA

(The risks to the projects success)
1. The efficiency of the project governance Challenge (difficulty)
2. The effectiveness of the product Vitality (importance)

27

The Diamond of the Sub-Project Level

Function

Vitality
Essential

Effectiveness of the product

Bounding Restricting

Limiting

Constraints

Internal

Central

Marginal
External

Nice-to-Have Better-Have
Known-Knowns

Known-Unknowns

Challenge

Unknown-Unknowns

Efficiency of the project management

Solution
Uncertainty

Value
Must-Have

Small Diamond Managerial Implications

Function
Early start (ASAP)
Finish as soon as possible
Functional Tests
Early start (ASAP)
Stakeholder management
Regulation management
Risk management
Time & budget slacks

Constraints

Value

Early start (ASAP)

Functional modelling
POC and prototyping
Management Reviews
Learning and selectionism
Late design freeze
Time & budget slacks

Early start (ASAP)

Customers testing and feedback
Marketing involvement
Product prototyping

Solution Uncertainty

Additional Industries:
Complex Projects of Complex Systems (Products)

30

? -
Implementing SE and Advanced PM in Large and Complex
Projects

31

Ori Orhof

ori@orhof.com