Professional Documents
Culture Documents
Project Management
the Siemens way
((U2))
Co
m
m
itm
en
t
Commitment
Introduction
Edward G. Krubasik
Our commitment to
project management
Norbert Knig, PG
Project management is one of our core disciplines, ensuring sustained high
profitability and a determined reduction of non-conformance costs (NCCs).
An effective continuous improvement process is therefore the vital key for
driving the quality of project processing to excellence throughout the company.
Learning better solutions (Best Practice Exchange) from other Siemens
Groups and introducing them is an effective and smart way of improving our
processing quality and consequently our profitability.
10
Hans-Dieter Bott, TS
Successful projects are an essential feature of the Transportation System
Group's business success. Continuous improvement of systematic project
management promotes the professional processing and successful completion of all projects.
Mutual exchange of Best Practice with other Groups is a vital element in ensuring that project management is standardized at the highest quality level
throughout Siemens as a whole. TS enthusiastically welcomed the career
model for Project Managers, as this model recognizes the great significance
of the Project Manager function and provides career prospects for all project
staff.
Gnter Hauptmann, SV
Well-handled projects make an essential contribution to profitable business.
Top-class project management as a success factor reduces cycle times and
improves quality in a global context.
In this process, the PM@Siemens Initiative creates added value through
knowledge sharing/Best Practice Exchange, providing further acceleration
on our way towards Project Management Excellence.
w
vie
er
Ov
11
Overview
12
13
14
15
Our commitment to
project management
Success is feasible
When the Initiative kicked off, the foundations were laid for managing success like a
project and for managing projects with success. Thanks to cross-Group efforts and the
active support of all involved, we have established a solid and enduring house within
Siemens AG in just a few short months.
Comprehensive success in projects business
essentially depends on the personal aptitudes and qualifications of all Project Managers and staff be it in the coordination of
local development departments or in the
context of large-scale international projects.
The aim is always to manage projects such
that they are completed successfully. Project management is thus more than just a
methodological approach. It is instead a leadership concept which we must resolutely
apply.
16
A&D
I&S
ICM
ICN
Med
PG
PTD
SBS
SBT
SD
SV
Dr. Drexel
Hauptmann Bott
TS
Steering Committee:
tsch
Mller
Pauly
Schaaf
Steinhardt
Knig
Dr. Schloss
Frischmuth Ronner
Group Coordinators:
Schott
Kurfer
Organization
of the Initiative
Jung
Dr. Schlegel
Piegsa
Kessler
Husemeier B. David
Dr. Mayer
17
Contract Management
Project Controlling
Personnel Management
PM Portal
Qualification
Project Management
the Siemens way
Knowledge Management
PM Assessment
Project Procurement
Small Projects
The
main topics
18
s
s se
ce
Pro d
an
les
Ro
19
Processes
and Roles
20
21
Preacquisition
PM010
Acquisition
Go/No Go
decision
Purchasing
Einkauf
& &
manufacture
Herstellung
PM300
Dispatch
approval
Project
acquisition
PM020
Bid
decision
Dispatch
Versand
PM400
Material
and resources
at site
Bid
preparation
PM050
Bid
approval
Erection
Errichtung
Installation
PM550
Erection
completed
Contract
negotiation
Project
handover
PM080
Start project
PM070
Project
won/lost
CommisInbetriebsioning
setzung
AbnahmeAcceptance
Messung
PM600
Commissioning
completed
PM650
Provisional
customer
acceptance
Project
opening and
clarification
PM100
Entry
order
clarified
WarrantyGarantiephase
Phase
PM700
Final
customer
acceptance
Detailed
planning
PM200
Approval
of detailed
planning
22
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
PM020
Bid
decision
Bid
preparation
PM050
Bid
approval
The individual process operations are staggered in a practical fashion, on the basis of
the integrated project schedule; hence this
linear process approach also makes sense
for projects business.
To record the completion of a process step,
each milestone is accorded mandatory results. This provides the basis for introducing
Key Performance Indicators, allowing the
quality of project processing as well as ontime performance to be measured.
Contract
negotiation
Project
handover
PM070
Project
won/lost
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
23
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
Bid
preparation
PM020
Bid
decision
PM050
Bid
approval
Contract
negotiation
Project
handover
PM070
Project
won/lost
PM080
Start project
Resources for the bid team, project schedule and planned bid costs
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
24
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
PM020
Bid
decision
Bid
preparation
PM050
Bid
approval
Contract
negotiation
PM070
Project
won/lost
Project
handover
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
25
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
Bid
preparation
PM020
Bid
decision
PM050
Bid
approval
Contract
negotiation
PM070
Project
won/lost
Project
handover
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
26
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
PM020
Bid
decision
Bid
preparation
PM050
Bid
approval
Contract
negotiation
Project
handover
PM070
Project
won/lost
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
27
Preacquisition
PM010
Acquisition
Go/No Go
decision
Project
acquisition
Bid
preparation
PM020
Bid
decision
PM050
Bid
approval
Contract
negotiation
PM070
Project
won/lost
Project
handover
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
28
Preacquisition
Project
acquisition
PM010
Acquisition
Go/No Go
decision
PM020
Bid
decision
Bid
preparation
Contract
negotiation
PM050
Bid
approval
PM070
Project
won/lost
Project
handover
PM080
Start project
Project
opening and
clarification
PM100
Entry
order
clarified
Detailed
planning
PM200
Approval
of detailed
planning
29
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
30
Resources available
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
31
Erection completed
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
32
Commissioning completed
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
33
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
34
PM300
Dispatch
approval
Purchasing &
manufacture
PM400
Material
and resources
at site
Dispatch
PM550
Erection
completed
Erection
Installation
PM600
Commissioning
completed
Commissioning
PM650
Provisional
customer
acceptance
Acceptance
PM700
Final customer
acceptance
Warrantyphase
Depending on the relevant business, all milestone results may also be attained in an earlier project phase but must be achieved in the
indicated project phase at the latest, in order
to ensure a trouble-free process.
Furthermore, each project phase has been
subdivided into project steps:
35
PM@Siemens View
The project steps defined by PM@Siemens form the
basis for the link to the RPH
Preacquisition
Project
acquisition
PM010
Acquisition
Go/No Go decision
PM020
Bid
decision
RPH View
Bid
preparation
PM050
Bid
approval
Contract
negotiation
PM070
Project
won/lost
Project
handover
PM080
Start project
Project
opening and
clarification
PM100
Entry
order clarified
Detailed
planning
Level 0
PM200
Level 1
Approval of
detailed
planning
Analyze inquiry/
identify expected
business
Evaluate
expected
business
Set up
bid project
Hand over
bid to customer
Set up project
organization incl.
roles and responsibilities
Determine
technical basis,
solutions and
implementation
of approval
Identify internal
business
coordinators
Analyze
and structure
customer requirements
Create
bid parts
Prepare
and realize
customer
presentation
Update
project data
Open a
project account
and project
structure
Perform
detailed
design
Create/adapt
business plan and
assess expected
business
Analyze
customers
business field
Analyze
and supplement risk
assessment
Process
customer
feedback and
change bid
Hand over
project documentation
Perform
detailed
site check
Create and
release detailed
specifications
Information for
product portfolio
process
Develop
rough financing
concept
Review and
confirm
project classification
Develop
negotiation
strategy
Analyze
won/lost
orders
Freeze basic
schedule
Level 2
Level 3
to
Level 4
Define bid
scope and determine responsibilities
Perform
rough risk
assessment
Prepare
bid approval
(LOA documents)
Organize and
conduct contract
negotiations
Create project
structure and
complete as-sold
cost calculation
Complete
sourcing
concept
Obtain
approval for
contract
signing
Change and
claim strategy
documented
Complete
quality plan,
risk analysis
Level n
AngebotsObtain
budget
bid
budget
Freigabe
approval
einholen
Perform a
project
assessment
(PMA)
36
RPH View
PM@Siemens View
Purchasing &
manufacture
PM300
Dispatch
approval
Dispatch
Erection
Installation
PM400
Material and
resources at site
PM550
Erection
completed
Commissioning
Acceptance
PM600
Commissioning
completed
PM650
Provisional
customer
acceptance
Warrantyphase
Enabler
PM700
Final
customer
acceptance
Level 0
Level 1
Manufacture
own products
Obtain approval
for dispatch
Install
plant/system
Commission
plant/system
Plan and
prepare acceptance test
Reduce
outstanding
points
Risk
management
Place orders
Plan
and monitor
dispatch
Prepare
commissioning
Perform
internal
system/plant
tests
Perform
acceptance test
Create final
customer documentation
Change/
claim management
Trace/
Expedite
manufacture
Organize
infrastructure
(tools, approvals
etc.)
Create final
execution documentation
Create
provisional
customer documentation
Archive
project
Quality
management
Perform works
acceptance
Inspect
dispatch goods
for damage
Organize
customer
training
Hold final
dialog with
customer
Create final
project report
PM
Assessment
Level 2
Level 3
to
Level 4
Plan assignment of internal
and external
resources
Request PAC
Dissolve
project organization
Scheduling
Conclude
warranty
Cost and
asset
controlling
Request FAC
Project
reporting
Level n
37
A second essential aspect in the standardization of projects business is the uniform definition of project roles and functions. Depending
on the project's complexity, various roles may
be filled by only one resource.
Project Manager
Commercial Project Manager
Technical Project Manager
Senior Site Manager
Commercial Site Manager
Contract Manager
Risk Manager
Scheduler
Work Coordinator
Quality Manager
Claim Manager
Project Purchaser
Dispatch Logistics Coordinator
Administrator
Connecting roles
a
a
a
a
Business Manager
Service Contact
Sales Project Manager
Bid Project Manager
38
Project view
Preacquisition
Project
acquisition
RPH
Bid
preparation
Contract
negotiation
Project
handover
Project
opening and
clarification
Detailed
planning
Level 0
Purchasing
and manufacture
Dispatch
Erection
Installation
Commissioning
Acceptance
Warrantyphase
Level 1
Level 2
Level 3
Alignment
39
Recommendations
of the module:
Recommendation 1:
Introduction of the
project phases using the
described milestone system
Recommendation 2:
Introduction of the mandatory
results for milestones
Recommendation 3:
Introduction of project roles
Recommendation 4:
Introduction of the project steps
40
ct
tra
Con ent
m
e
nag
Ma
41
Contract
Management
42
43
Contract Management
Introduction/
Management Summary
Contract Management plays a crucial role
during order execution but is even more important in the bidding phase. It begins with
preparation of the bid, proceeds to the stage
where the contract is signed and continues
into the implementation phase, where the
focus is on Claim and Change Order Management.
The Contract Management team of experts
within the context of PM@Siemens recommends that a global concept be implemented for the Siemens Groups as well as for all
project and risk categories throughout the
term of a project. Additionally, there are recommendations for Contract Management
Tools, Communication & Training, Roll-Out
and Feedback.
In this area, Contract Management provides
expert support in drafting or commenting
on and negotiating the commercial terms &
conditions of a bid, supply and service contracts and also cooperation agreements,
along with support (in terms of contract
law) during the implementation phase.
It is recommended, at least for the highest
risk projects (e.g. A projects), that a full time
Contract Manager be assigned to the Project.
For this purpose, experts must be appointed
and trained in the Groups. Contract Managers perform their duties in close cooperation with Legal Services but act neither as legal advisors nor as legal counsel to the
Groups.
44
Recommendation framework
The recommendation framework developed
by the team of experts consists of the following:
A. Concept for Contract Management
B. Standard Contract Management Tools
C. Communication & Training
Overview of recommendations
4. Implementation of a bid approval procedure with project and risk categories uniform for all Groups
45
Roll-Out/Feedback
11
12
Communication/Training
Mandatory training in Contract Law and Claim Management for Sales & Marketing and
Project Management staff (technical/commercial)
10
46
Business
acquisition
phase
Main responsibilities
Bid/no bid
decision
Bid
phase
Negotiation
phase
Bid
approval
Project
implementation
Signing
of contract
Warranty
phase
Provisional
acceptance
Final
acceptance
Contract Management up to
contract signature
47
Recommendation 1:
Independent Contract Management function
The independent activity of a Contract
Manager covers mainly the project phase up
to the stage where the contract is signed.
It is his/her responsibility to provide expert
support in drafting or commenting on and
negotiating the commerical terms and conditions of a bid, supply and service contracts
as well as a cooperation agreement (legal advice is provided by Legal Services). In this
context, Contract Management plays an important role in risk management by ensuring that the identified technical, financial,
customer and country risks are taken into
account in the contract, and creates the con-
Recommendation 2:
Involvement of full-time Contract
Managers in the bid and negotiation phases for projects of the highest project/risk category
At least in the highest project and risk category, the function described under Recommendation 1 must be performed by a
named full-time Contract Manager appointed for the project, but Contract Manager
may be involved in several projects. In organizational terms the Contract Manager should
be incorporated such that he/she is entitled
or even sometimes in some cases obliged to
bring matters before the relevant Divisional
or Subdivisional general management in the
event of conflict.
48
Recommendation 3:
Documented bid/no bid procedure/approval for preparing a bid
On the basis of a Group-specific procedure,
the responsible sales unit submits the project using in standardized presentation documents to the relevant management team for
the latters decision in a meeting in which
the management of the necessary specialist
units take part. The Group-specific determination of the decision-maker level depends
on the risk or project category.
In case an addendum is required, it must also be presented to the same decision group.
Recommendation 4:
Implementation of a bid approval
procedure with project and risk
categories uniform for all Groups
Depending on the business requirements,
risk categories are identified for the projects.
In particular, the criteria include:
a Business volume and result
For the individual risk categories, the relevant approval processes and decisionmaking levels should be defined Groupspecifically.
The bid approval procedure should include
three elements
a Technical LoA
a Commercial LoA
a Cost/price LoA.
49
Recommendation 5:
Final bid approval by a Review
Board, in the highest project or risk
category jointly with Group
Executive Management
The Review Board approves the bid on the
basis of a standardized brief project presentation which, in addition to pricing/costing,
points out significant technical and contractual risks as well as other possible framework conditions of importance for the decision. Approval is given in a meeting, maybe
in a video conference. At least one member
of Group Executive Management and of
management of the sales or business unit
affected must take part in this meeting if the
highest project/risk category is concerned.
At least the manager(s) of the technical
units responsible for significant perform-
ance characteristics and for the scope of supply and service, the technical and businessadministration project management and the
Contract Manager must also attend this
meeting.
Composition of the Review Board can vary,
depending on the project/risk category.
50
Recommendation 6:
Provision of full-time Contract
Managers for the implementation
of projects of the highest project/
risk category
Proof for defending, incoming claims and explaining and substantiating outgoing claims
must be recorded.
Consequently, the requirements to be met
by Contract Management during contract implementation differ substantially from those
during the bid phase. In the implementation
phase, the main emphasis lies not on drafting the contract and analyzing the risk potential inherent in the terms and conditions of
request for tender. The primary goal in the
implementation phase is to identify causal
links in such areas as deviations from agreed
deadlines and quantities, obstacles, other
contract problems and the various interfaces
to subcontractors/consortium members. The
skill profile in this phase therefore calls for a
technically trained Claim Manager who not
only knows how to analyze schedules and to
portray complex subject matters briefly and
in a form illustrating causal relationships,
but is also sufficiently experienced in international contract law.
In view of the importance of claim management and the effects of any deviations from
a contract, the appointment of a full-time
Contract Manager to assume the aforementioned duties is recommended in the highest project/risk categories. Depending on
project size and complexity, a Contract
Manager may be involved in one or more
projects. For large-scale project business
comprising installation and commissioning,
a Contract Manager is required at the site.
51
Recommendation 7:
Mandatory observance of
unacceptable regulations
Unacceptable regulations must be integrated by each Group into its catalog of criteria,
for the project approval procedure.
Recommendation 8:
Mandatory specification of a
Group policy for Group projects
businesss
The Group-specific project policy is defined
in a binding manner by Group Executive
Management. Obligatory elements, key figures (mandatory) and optional elements for
Recommendation 9:
Intensive use of available
standards and tools
As a central provider for the Groups, Legal
Services (LS) devises and updates both
standard contracts for the Groups as well as
the LS Legal Manual (which is standard
throughout Siemens). In addition, the
Groups can formulate Group-specific standard contracts in agreement with LS and
52
C. Communication &
Training
Recommendation 10:
Recommendation 11:
Recommendation 12:
Implementation of the recommendations of PM@Siemens in the
form of a defined Group project
Unless already done, it is recommended that
the Contract Management project be defined as a Group project in the Divisions and
Regions or Regional Companies, with particular regard to the organization and process.
Only this way will the relevant modules get
through to the Groups and be uniform.
Implementation should be assisted by a
sponsor in Group Executive Management,
and if applicable by a sponsor at Division
Vice President (Business Administration)
level, as well as by a Contract Management
Community in the Group.
ct
Proje g
n
rolli
Cont
53
Project
Controlling
54
55
Project Controlling
56
General recommendations
for successful Project Controlling
In summary, the following recommendations can be made for successful Project Controlling.
Recommendation 1:
Project-driven organization
Establish a project-driven organization, and
assign project teams (with clearly defined
authorities and responsibility in the hands of
the Project Manager as entrepreneur).
Modern Project Controlling that points out
problem areas at the right time to its Project
Manager and its own management must be
integrated in a consistent project handling
process that is characterized by a free flow
Recommendation 2:
Consistent Project Controlling process from the bid/no bid decision
through to finalization of the
project, in particular integrated
risks, change order/opportunities
and claim management
Empirical data shows that 60% to 70% of all
non-conformance costs are identified during
the handling of a project, but the causes of
these costs lie in the bid phase of a project.
For this reason, the Project Controlling process must be performed continuously, all
the way from the bid through to the end of
all obligations entailed in a project.
Modern Project Controlling supports the
management of risks/opportunities, claims
and change orders as an integral part of the
project process and lies within the Project
Managers sphere of responsibility.
57
Recommendation 3:
Mandatory milestones in the
project process
A project must be implemented consistently
in accordance with defined rules and decision levels as early as in the bid phase. Mandatory milestones and associated documentation of the results have thus been
introduced as a basis.
The milestones of the project process are defined in module 1 (Organization and Processes). In the project process, the mandatory
milestones play an important role in the
success of project activities.
Recommendation 4:
Regular management-driven
project meetings on the basis of
standardized reporting
Standardized and regular reporting takes
place at Group level; associated controlling
parameters are defined in a businessoriented fashion.
Best Practice
recommendations
Best Practice examples of standardized
methods and processes from the Siemens
Groups are available on the homepage
http://projectmanagement.siemens.com,
under the heading, Regions/Groups.
58
http://topplus-in.ts.siemens.de/controlling/controlling.cfm
SD info on
project reporting:
http://intranet.sd.siemens.com/Arbeitsmittel/Projektmanagement/
PM_SD/PMSiemensDematic.jsp (--> Project Controlling)
PTD info on
project reporting:
http://info.ev.siemens.de/ev_ga/pm-ptd/de/Quellen/home-quellen-toolsvorlagen_scorecards.htm?PIdent=1144&SIdent=1150&TIdent=1151
ICM N info on
project reporting:
https://mchh9w1a.mchh.siemens.de ( PCS)
ICN info on
project reporting:
I&S info on
Claim Management:
http://fpinfo.erlm.siemens.de/atd/gemeinsam/cm/de/pm/rl/
SBS info on
risk management:
http://risk-management.sbs.de/html/index.asp
PG W info on planning
and reporting:
http://www-i1.kwu.erl.siemens.de/f/w5/de/
Platohandbuch_Entwurf.ppt
http://regiond.sbs.de/commerce/risk.htm
nel
Person
ment
e
g
a
n
a
M
59
Personnel
Management
60
61
Personnel Management
Objective
Responsibility
Empowerment
Delegating and
Assuming
Ensuring
Letter of Empowerment
Actions
Target Agreements
Adequate Placement
PM Career Model
Reward &
recognition
Salary
and
Project Incentives
62
1. Delegating responsibility
Delegating the responsibility for a project
means primarily that the scope of such responsibility must be clearly defined.
The next step is to decide who is to bear such
responsibility, the prerequisite being that the
Project Manager is verifiably qualified and
also willing to assume this responsibility.
63
Recommendation 1:
Introduction of PM Career Model
Management levels
(with profit/loss responsibility)
Embarking on a career in project management calls for 23 years experience in a technical field or in sales. The next 12 year
stage includes project work with a variety of
tasks. Throughout these years, the would-be
PM receives basic project manager training
(PM4) and qualifies as a future Project Man-
Project categories
Qualification levels
with confirmation
Management of A projects,
large-scale projects,
general contractor projects
Technical levels
(without profit/loss
responsibility)
Management of
C projects
Project assignment
Team leadership
Change of tasks
or functions
Embarking
on processing/
assembly/
commissioning/
engineering
or sales
Approximately
12* years professional
experience
Approximately
23* years professional
experience
*Guide values
Basic training
64
Requirements profiles
for project management
*Recommendation
Job profile
Project Manager
Job profile
Job profile
Senior Project Manager Project Director
Project
category
Areas of
responsibility
Knowledge
Expertise: Procedures and practice in the context of projects, contract and labor law,
Group-specific languages, knowledge of sectors and customers
Experiences
Skills
PM3**
PM2**
PM1**
2 years responsible
leadership of C projects
6 years responsible
leadership of B projects
1 year technical
responsibility for employees
2 years leadership of
project teams
6 years leadership of
project teams
The career model enables a candidate interested in a PM career to align his/her professional ideas to the expertise and responsibilities shown in the development roadmap,
and thus provides him/her with a guide for
his/her professional development.
It also provides the decisive reference parameter for an ongoing status determination,
for future assignments and also for systematic qualification planning. Project success depends heavily on the selection of a wellqualified Project Manager. The career model
creates the clarity necessary for efficient resource management.
65
Certification of
Project Managers
66
PM@Siemens
Academy
Qualification
a PM Learning
Program
a PM@Siemens
Curriculum
(selected
seminars) +
knowledge test
(optional)
Competence
analysis,
qualification
requirements
in staff dialogue
(EFA)
Verification of the
qualification level
within staff dialogue (roundtable)
EFA/Assessment
Gaining experience
in projects in
accordance with
the PM@Siemens
job profile
Group
Certification
Handover of
certificate
Input
e.g. and/or
a Qualification
certificate
a Proof of experience
through technical CV
and project list
a Project report or
project study
Output:
a Documentation
in the appropriate HR tool
67
a Management experience
a Social skills
a Communicative competence
a Seniority
68
Project managers think and act as entrepreneurs and with that assume the commensurate responsibility. On this basis, both line
managers and Project Managers are on a par;
the Project Manager career is thus a part of
a management development landscape.
As before, a Project Manager can change to
line management; however, he/she should
not do this for career reasons alone.
Division Manager
President
Subdiv. Manager
Vice President
Segment Manager
Director
Department
Manager
Senior Manager
Responsibility/qualification level
Program
Director
Management of A
projects
Project
Director
Management of B/C
projects
Senior Project
Manager
Management of C
projects
Project
Manager
69
Recommendation 2:
Letter of Empowerment
The Letter of Empowerment assigns responsibility and authorities to the Project Manager and makes them clearly visible in the corporate organization.
The panel of experts recommends inclusion
of the following in the Letter of Empowerment:
a Project designation and period of validity
of the Letter of Empowerment
a Assignment of authorities and obligations
for handling of the project in conformity
with the contract (also worded precisely
in the enclosed target agreement)
a Assignment of responsibility for results;
customer and employee satisfaction must
also be included
a Reference to the valid project management method (process manual)
a Provision of resources by the responsible
and supporting offices (if required, enclose as appendix)
a Right and duty to submit reports (regular
controlling, special incidents)
70
Recommendation 3:
Target Agreement
a Deadlines (milestones)
a Costs
Recommendation 4:
Incorporation of project targets in
the annual bonus and individual
special payments
In Divisions with heterogeneous and complex projects, it is crucial not to define the
targets on the basis of a fixed system but individually and in a customer/project-related
manner. This is not only important for
achieving business success but also for the
71
Recommendation 5:
Project incentive system
The Personnel Management panel of experts analyzed Best Practice examples from
the SBS, TS and PTD Groups which were
agreed with the Joint Employees Council.
On the basis of the results of this study, the
panel recommends adoption of the key
points specified in the table below in the
context of a Group-specific solution.
This provides significant support for the various types of business. Experience with existing incentive systems furthermore shows that
any necessary adaptations of the model to
Group-specific circumstances are made easier.
72
Qualification
73
Qualification
74
75
Qualification
PM@Siemens Academy
Steering Committee
Chairman
Office
Jrgen Schott
Elisabeth
Bittner
I&S
ICM
ICN
PG
PTD
Jrgen
Schott
Gerhard
Lorenz
Birgit
Lueg
Michael
Eckert
Joachim
Fischer
SBS
SBT
SD
SV
TS
Magdalene
Khnel
N.N.
Eberhard
Mnchow
N.N.
Claudia von
Lindeiner-Lang
Learning Campus
Heinz Oesterle
76
Goals:
a To ensure Corporate Content in the
qualification activities for project management
a To safeguard the Design, Build and Operate nature of the PM Learning Programs
and to continuously optimize such programs
a To safeguard the Design, Build and Operate nature of the training programs of the
Curricula and to continuously optimize
such programs
Requirements:
In order to impart standardized PM throughout Siemens and in doing so, to give space
to Group-specific requirements, an all embracing qualification concept must meet the
following requirements:
a It must have uniform qualification standards in order to create the conditions for
worldwide comparability for both management and staff in projects
a Both language and terminology are to be
standardized
a It must enable a swift project start-up
and a smooth realization, with the aid of
uniform methods and procedures
a It must allow positions (including leadership functions) to be filled promptly and
appropriately in project management
a It must promote systematic personal
development and qualification for project
leadership staff, enhancing the attractive
nature of leadership tasks in project management
a It must support a worldwide project
management network aligned to topics
and specific factors
77
Module 2
Module 3
Module 4
Module 5
Module 6
Module 3
Module 4
Module 5
Module 6
Module 3
Module 4
Module 5
Module 6
Module 3
Module 4
Module 5
Module 2
Module 2
Module 2
Module 7
78
PM@Siemens Curriculum
Project Manager
Senior Project
Manager
Project Director
Subjectrelated
expertise
a Business-administration basics
a Contract law
a Strategy development
a Strategy development
a US GAAP
a English for
Project Managers
Methods
a Project Management
Basics I
a Project Management,
advanced
a Coaching Methods
a Project Coaching
a Project Management
Basics II
a Project Controlling
a Contract Management,
advanced
a International Project
Business
a Contract Management
a Knowledge Management
a Claims Management
a Business Responsibility
Major Projects
a Business Responsibility
Major Projects
a Business Development
a Business Development
a Risk Management
a Problem Solving and
Decision-Making
a Negotiation Techniques
Technologies
a MS PROJECT basics
a MS-PROJECT
advanced
Skills
a Leadership in projects
Basics
a Management in projects,
advanced
a Conflict management
in the team
Experience
a Coaching, networks,
exchange of experience
a Coaching, networks,
exchange of experience
a Coaching, networks,
exchange of experience
a Expert forums,
conferences
The PM@Siemens Curriculum helps establish selective individual and task-specific expertise. The trainings of the Curriculum can
be booked individually and are systematically structured according to career stages. The
Curriculum is particularly suited to newcomers from other areas and to candidates
wishing to add to their existing knowledge.
79
Qualification Certificate
PM@Siemens Academy
PM Learning
Program PM4 PM1
Competence
analysis
e.g.
Group-specific
methods
Competence
e-pilot
Group
Qualification
certificate
for the
relevant level
Qualification
requirement
Knowledge
test (optional)
e.g. in
the EFA dialog
PM@Siemens Curriculum
(selected seminars)
PM@Siemens
certificate
of attendance
Certification
80
Recommendation 1:
Determining the qualification
requirements
The yardstick for qualification requirements
are the profiles devised by the Personnel
Management module. The actual qualification requirements are derived from
a the accumulated results of EFA roundtables and dialogs
Recommendation 2:
Putting the qualification activities
into practice
The concretely identified need for qualification must be met by means of the appropriately adapted qualification activities from
the program offered by the PM@Siemens
Academy (PM Learning Programs or
PM@Siemens Curriculum). In this way, the
Recommendation 3:
Secure the quality requirements
for qualification activities
PM Portal
81
PM Portal
82
83
PM Portal
Contract Analysis
Document and
Information
Management
Claim and
Submission
Management
Cooperation
with Suppliers
and Partners
Cooperation
with Customer
Calculation
and Cost Planning
Suppliers
and Partners
Project
Time and
Resource Planning
Project
Reporting
Customer
84
Quality
increase
Optimization of
the project term
Reduction
of project costs
Uniform nature
of project data
Single
sign-on
85
Project progress
and the parties involved
86
Sourcing &
Manufacturing
Detailed
planning
Shipment,
Erection,
Commissioning
AfterWarranty sales
service
Requirements
Portal functions
The applications relevant for project processing, as derived from the standard project
process, are integrated in the PM Portal and
made available to those involved in the
project.
The information within the PM Portal is
structured according to project roles and
views. Each project role is linked to an
authorization concept in which the views
intended for each role are recorded.
87
Recommendation
framework for the
PM Portal and PM Tools
Recommendation 1
(PM Tools):
MS Project, Primavera, SAP PS
The planning and control of activities, deadlines and resources, along with their dependencies and the use of IT tools to support
these processes, are essential elements of
the project processing task. Within the context of the PM@Siemens Initiative, the
Groups involved devised the following recommendation:
As a uniform solution for deadline management in conjunction with SAP, the
recommended tool is the SAP module PS,
wherever possible.
For project management outside SAP, the
following tools are recommended as a uniform solution for Siemens AG:
a
MS Project: for projects / office applications with less than 500 activities.
MS Project is an application which can
quickly be applied to smaller-scale
projects. Only minimal training in its use
is required; its flexibility is advantageous
thanks to its ease of incorporation in the
MS Office world.
Primavera Enterprise: for projects with
more than 500 activities for multi-project
or multi-user assignments. Primavera
Enterprise is an internationally recognized
Recommendation 2
(PM Portal):
Participation in further development and introduction of the PM
Portal as a standard solution for
project workplaces
The PM Portal created by PTD and CIO forms
the basis of a standard solution for project
workplaces. Thanks to CIOs cooperation in
developing this solution, it is fully compatible with the standards for portals and portal
implementation specified by CIO and valid
throughout Siemens (see CIO Circular
No. 11 / 2002).
88
It is thus also ensured that the portal infrastructure and portal services, which are presently being established by CIO throughout
Siemens, can be tailored to match actual
user requirements at an early stage.
Active financial and practical cooperation
between all Groups ensures that the basis of
the standard solution can be developed
further in a target-oriented fashion and that
the requirements of all Groups are incorporated. The PM@Siemens Initiative has thus
decided that
a
the Groups should use the standard solution as a basis for their own future project
portals.
Opera
tive
Quality
Mana
gemen
89
Operative
Quality Management
90
91
Customer project
Customer
process
Development
project
Series
Operative
Quality
Management
Customer
process
92
Recommendation 1:
Quality management function in
the project
This comprises the following tasks
a Determining the product and processrelated quality requirements specified in
the customer contracts and other stipulations
Authorities
Responsibility
a Creation of, adherence to and updating
of the quality plan
a Collating of Lessons Learned
a Quality reporting and ensuring that derived actions are monitored
Recommendation 2:
Qualification criteria for the
Quality Manager in the project
The complex duties of the Quality Manager
call for special competencies and experience
which are summarized in the following illustration.
93
Project Category
All categories
Areas of
responsibility
Expertise:
(Extracts)
Experience
Skills
QFD
Technical Controlling
Project
history
QFD
QAA
New
business
acquisition
Project management
Bid
Project
planning
Engineering
Procurement
Production / Commissioning
Assembly
Warranty
AfterSales
Service
Soft Skills
Supplier
Management
94
Recommendation 3:
Minimum requirements
for the quality plan
The quality plan contains:
General Structure
(Group-specific)
Project-Related
Structure
QM in projects
1) 2)
Q plan
PM guideline
QM documentation
(process
descriptions)
Project plan
Project
manual 3)
Checklists
Checklists
PM milestones
Checklist,
Pool of possible
Q actions
Project
agreement
Project goals:
a Function
a Deadline
a Costs, concrete,
detailed
Lessons Learned
Subject areas:
a
a
a
a
a
a
a
a
a
a
a
Design / engineering
Documentation
Product safety
Method application
(prevention, reviews ...)
Risk management
Processes (change,
error, claim ...)
Suppliers,
supply quality
Assembly, production
Integration
Internal /
external acceptance
Delivery, dispatch
95
Recommendation 4:
Minimum requirements entailed in
systematic project finalization
The aim of systematic project finalization is
to identify critical success factors, obstacles
and Good Practices. The interdisciplinary
project team and other parties to the project
such as customers and partners are also involved here.
Essential elements of systematic project
finalization include:
a consistent project documentation right
from the outset
a appraisals throughout the project, with
the aid of such instruments as the selfassessment PMA tool, milestone reviews,
audits, project status meetings
a Lessons Learned workshops at the end of
the project
a final project report
a assessment of project experience, e.g.
from the Lessons Learned workshop,
final evaluation of the causes of NCCs,
improvement of planning costs
a Group-specific communication and
monitoring of Lessons Learned
96
Kn o
w
Man ledge
agem
e nt
97
Knowledge
Management
98
99
Knowledge Management
100
Recommendation A:
Learning cycle
Overview of
recommendations
A. Learning cycle
Knowledge Management
Support Process
1. Creation of project profiles and organization/holding of Lessons Learned workshops, also preparation of project debriefing reports
2. Archiving of experience reports including
selected project documents in a database,
using an uniform system
3. Ensuring that archived experience reports/
documents are put to use
4. Implementation of an urgent request
process
5. Evaluation and consolidation of Lessons
Learned. Evaluation of Best Practices and
re-use in qualification and new projects
B. Implementation of Knowledge
Communities regarding businessrelevant topics
1. Identification and selection of businessrelevant topics for communities
2. Establishing of communities for selected
topics
3. Definition of objectives for the communities
4. Integration of the communities in the
project processes and organization
101
Teams, employees
in the daily business
Find
Mandatory
Reusables
Project
Profile
Best
Practices
Standards
Guidelines
Templates
Debriefing
Reports
Urgent
Request
Project
Acquisition
& Definition
Project
Planning
Project
Realization
Project
Completion
Lessons
Learned
Project
Evaluation
& Transfer
Solutions
to
Problems
Urgent
Requests
Answers
Experiences
Knowledge
Asset
Candidates
Checklists
Corporate
Functions
Competence
Centers
Support
Functions
Methods
Standardization
and distribution
of knowledge
Sharing
and assessment
of knowledge
Ideas
Knowledge
Communities
+ Pool
Check
Search
102
Recommendation A (1):
Learning cycle
dent without them. The second step is to reflect on experience gained either when a
milestone is reached (Lessons Learned), or
upon project completion (debriefing). This
reflection serves to prevent errors in the future and to identify knowledge modules
(Knowledge Assets / Reusables) that might
be useful subsequently; modules previously
used can also be evaluated.
The project overview template / profile describes a project according to its allocation
to a practice or a program (portfolio categories). It also provides an exact categorization
of the customer and of the structure, challenges, risks, contacts, volume and scope
comprised in the project. In addition, the solution modules used, the benefit achieved
In a closed project team setting, the document is also made available as a public item.
Provision of the profile is mandatory in the
KM Support Process KM10.
Debriefing Report
The debriefing report is the content-related
further development of a series of templates
used in the past by Siemens Business Services. For example, the debriefing report is
used for proposal (win/loss analysis) and
delivery projects (Lessons Learned/
debriefing). In addition to the tem-
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de
Go to http://knowledge.sbs.de,
or for more information to
info@knowledgemotion.sbs.de
103
Recommendation A (2):
Learning cycle
Archiving of experience reports including selected project documents in a database, using an uniform system (to ensure the reusability of project data)
To be of any use, experience and knowledge
have to be accessible.
In his preface to the Annual Report for the
year 2000, Heinrich von Pierer stated the following:
Our first priority and this will be vital for
our future effectiveness is the electronic
networking and management of our internal knowledge to make us even more efficient and bring our customers greater benefits. As part of this drive, we have begun to
systematically channel data from projects
Best Practice example
Siemens Business Services (SBS)
104
Recommendation A (3):
Learning cycle
Knowledgemotion
Knowledgemotion is a comprehensive
program serving at Siemens Business Services
for the worldwide establishment of
Knowledge Management. In addition to
creating (and assuming responsibility for) a
worldwide support process, this also covers
the provision of an SBS-wide Knowledge
105
Recommendation A (4):
Learning cycle
Implementation of an urgent
request process
Urgent requests enable us to get concrete
answers to a pressing question quickly, instead of having to spend a great deal of time
calling up colleagues and searching for experts. Urgent requests are collected in a
forum, similar to an emergency telephone
service and available to all the staff of a
Best Practice example
Siemens Business Services (SBS) and
Information and Communication Mobile
(ICM) / Information and Communication
Networks (ICN)
Knowledgemotion/
ICN-ICM Sharenet
The knowledgemotion (SBS) / Sharenet (ICN,
ICM) systems provide an urgent request forum for all employees. The urgent requests
are structured as a forum on the Knowledge
Base and are shown to all users on the
homepage of the Knowledge Portal.
106
Recommendation A (5):
Learning cycle
and thus represent stored knowledge. Experts can evaluate and collate such experience (e.g. in the form of manuals, circulars,
checklists, training programs) such that it
can be used on a broad basis throughout
project business. Actions for process improvement can also be derived.
107
Non-Conformance Management
(NCM)
Mandatory regulations on NCM were introduced at I&S IS initially for the IS Units in
Germany as of January 1, 2002, as an element of Project Management (for A, B and C
projects).
Recording of
identified
divergences
Analysis of causes
and classification
of divergences
Divergence
documented
Definition
of actions
Implementation
Action
NC report
Operative controlling
NC report
closed
108
Recommendation B:
Introduction of Knowledge Communities regarding business-relevant
topics
Our company now finds itself facing more
and more new challenges such as
a globalization and distribution
a a hotter pace, and changes in the way
business is done
a knowledge-intensive business
a exponential development of available
knowledge, while the knowledge itself becomes obsolete all the sooner.
There are of course experts capable of meeting these challenges. Unfortunately, however, it is hard to bring them together; they
have no or little contact with one another.
This means that the required knowledge is
too scattered throughout our company and
is not always available where and when it is
needed.
If we are to network experts across organizational, hierarchical, time and spatial barriers
and thus meet future challenges, we must
establish professionally-managed Knowledge
Communities.
A Knowledge Community is a group of people from a variety of different Organizational
Units who exchange and develop knowledge and provide each other with support
on the basis of a common interest in a business-related subject area. With this cooperation (which may either be virtual or face-toface), those involved pursue both individual
and business-oriented goals.
109
CoP Chemicals and Pharmaceuticals community was one of the first to make use of the
I&S-wide Community Platform. Along with
the joint work on documents, it is also easy
to present results here. In addition, administration of members and access is simplified,
topics are discussed or, in the event of pressing questions, urgent requests are submitted to make use of the knowledge and expertise of a much larger group of readers.
An electronic notification system ensures
that the relevant interested parties are supplied with exactly the information they require for their community work. In this way,
electronic cooperation is increasingly saving
time and money as communication is more
effective. Conflicts of interest, duplicated
work and competing strategies in terms of
personnel and standards can be avoided.
110
Recommendation B (1):
Implementation of Knowledge
Communities for business-relevant
topics
Identification and selection of
business-relevant topics for communities
A knowledge strategy is prepared by the Business Owner and his / her management team
in order to select the business-relevant topics
for communities. This knowledge strategy
contributes to target-oriented planning of
the way in which business-related knowledge
Business and ambitions (focus specific topic like Process, Org., Product ...)
Knowledge area
Knowledge Portfolio
Knowledge
State Guide
future impact
current impact
diffusion
codification
Proficiences
and K
Stakeholders
codification
proficiency
diffusion
Improvement
Actions
Bus. perspective
Integration
of actions
111
Recommendation B (2):
Implementation of Knowledge
Communities for business-relevant
topics
Establishing of communities for
the selected issues
The procedure for establishing a Knowledge
Community may always vary slightly, depending on the relevant context. In principle,
however, the establishing of a community
can be divided into three phases, some of
which involve different persons with different roles:
a Phase: preliminary considerations
You start thinking about the issue your
community will focus on, the target
group, the benefit and costs, and also
about your further approach to establishing the community in terms of the timeframe.
Best Practice example
Siemens Business Services (SBS)
CoC Communities
Siemens Business Services are positioned in
a balanced matrix between countries and
Global Business Units (GBUs). The GBU solution established its focal portfolio issues as
14 Centers of Competence (CoCs), which
mirror either issue-related (e.g. SAP) or sector-related (e.g. paper and wood) focal
points. In terms of responsibility, the CoCs
are located in those countries with the highest level of competence with regard to an issue or sector.
All experts for this issue or sector are incorporated virtually into a CoC. Within the
scope of a Knowledge Strategy Process (KSP)
workshop, the significance of the role that
the establishing of communities plays for
the CoCs was further corroborated and moreover, the worldwide competence owners
(community members) were identified. The
112
Recommendation B (3):
Implementation of Knowledge
Communities for business-relevant
topics
Definition of objectives
for the communities
A communitys strategy and goals must suit
the business targets, as thus the community
is then most likely to find support in the company. The members should always be aware
Focus Finder
The Focus Finder method for communities
comprises three main activities: within the
scope of the first activity, one or more knowledge areas is / are selected, defined and
weighted, if required. The second activity
a categorization of topics/keywords
a brief description/type of community
(open/closed)
a distribution of members (globally etc.)
a interfaces/substructures
(sub-communities)
a form and language of communication
a sponsors
and also offers the option of issuing the initial invitations and naming the founder
members.
113
Recommendation B (4):
Implementation of Knowledge
Communities for business-relevant
topics
Integration of the communities
into the project processes and
organization
The aim of the Knowledge Management
(KM) Support Process within the scope of
the Process House of Siemens Business Services is to establish Knowledge Management in everyday business. The Knowledge
Management Support Process essentially
focuses on two core issues:
a expansion of the core processes to include Knowledge Management issues,
such as project debriefings (either when
projects are completed or when project
milestones are reached)
https://ims.icn.siemens.de/livelink/livelink/
Open/1377330
114
Tra
Im nsfer
ple
a
m e nd
Pro ntatio
ces
n
ses
115
Transfer and
Implementation Processes
116
117
Transfer and
implementation
processes
In order to implement the Siemens-wide recommendations set out in the individual modules in the Groups, Regional Companies and
Group Companies, a process was elaborated
from the Groups positive and negative experiences. Uniform standard report forms were
specified in order to provide a uniform illus-
Recommendation 1:
Establishment of an
implementation process
Fig. 1: Implementation process
Analysis
PM@Siemens
Communicate
PM@Siemens
in the Group
Evaluations
Recommendations
Status quo
determined
Coordination
with
process owners
Design
Implementation
project Group
Define
actions
Implementation
Implementation project Divisions/Regions
Communicate the
implementation
project in the Group
Set up
Scorecards
Monitoring
Implementation
project
Ensure
management's
commitment
Plan, set up
implementation
projects
Communicate
benefits
Create
implementation
concept
Communication
Start
sub-projects
Elaborate
actions
Scorecards/
implementation
controlling
Lessons
Learned
Best Practice
Exchange
118
Tasks, competence,
responsibility
Fig. 2: Implementation project,
parties involved
Steering Committee
ZV Prof. Dr. Krubasik
Group
Coordinator
Group Executive
Management
Commitment/Support GEM/
Div./Subdiv./Bus.Seg./Region
PM / SPM
Implementation project in the Group/Region
Recommendations
PM@Siemens
Region:
Group:
a Communication
a Scorecard
Results
in the Groups/
Regions
119
Divisional Management,
Regional Management
a Responsibility for the implementation
project in the Division/Region
a Communication of significance and objectives for the Division/Region
a Target agreement with Subdivisional/
Divisional management and departments
for implementation
a Appointment and empowerment of SubProject Managers
a Monitoring (Scorecard) of implementation progress in the Subdivisions/Business
Segments/Regions
a Reporting to Group Executive
Management
Group Coordinator
a Incorporation of Best Practices and
requirements from PM@Siemens in the
implementation project
a Feedback from implementation project to
PM@Siemens
Project Manager of
Implementation Project
a Management of the implementation
project in the Group / Region
a Elaboration of the project scope together
with GEM, Division and Group Coordinator
a Management and provision of support to
Sub-Project Managers
a Establishing of the PM@Siemens Scorecards in the Organizational Unit
a Reporting to Management
Sub-Project Manager
a Planning and controlling of the implementation project in coordination with the PM
of the Implementation Project
a Provision of consultancy and support to
managers for the implementation project
a Provision of consultancy, support and
coaching to Project Managers in operations
a Support in implementation
a Communication and training for the
implementation project
a Reporting to Divisional management/Regional management
and PM of implementation project
120
Requirements, conditions
Project Manager/
Sub-Project Manager
a Several years of experience in managing
projects
a Acceptance in the organization
a Methodical and results-oriented attitude
to work
a Knowledge of business processes
a Knowledge of Group-specific standards
and guidelines pertaining to project
management
121
Coordination
Processes and Roles
Contract Management
Project Controlling
Personnel Management
Qualification
PM Portal
Operative
Quality Management
Knowledge Management
Transfer and
Implementation Processes
PM Assessment
Project Procurement
Small Projects
or
.
rs f s etc
e
g
r
a
e
n
g
a
ana
tM
jec ect M
o
r
P
oj
r s,
-Pr
ato , Sub
n
i
rd
ct
Coo proje
p
u
Gro tion
t of ent a
s
i
L
m
ple
im
122
Recommendation 2:
Determining the implementation
status and necessary activities
Definition of Group-specific need for action
PM@Siemens
Recommendations
Relevant, if no,
state reasons
Activities
Processes
and Roles
Contract
Management
Contract Management
B id / no B id
Bid approval
procedure
Contract law
Community
Project Controlling
Personnel
Management
Qualification
P M P o rtal
Operative Quality
Management
Knowledge
Management
Tr a n s f e r a n d I m p l e mentation Processes
P M A s s e ss m e nt
Project Procurement
Small Projects
le
mp
Exa
Deadline
123
The next step is to determine the implementation status for each recommendation, in
each Organizational Unit affected. To this
end the following implementation statuses
124
Group/Division/Subdivision/Business Segment/Region
PM@Siemens Recommendations
....
Implementation decided
Being planned
Being implemented
Regularly implemented
No impl.
....
....
....
125
PM@Siemens
Module
Group/Division/Subdivision/Business Segment/Region
PM@Siemens Recommendations
....
Implementation decided
Being planned
Being implemented
Regularly implemented
No impl.
....
....
....
126
Recommendation 3:
Creation of PM Scorecard
Project improvement
Small Projects
Project
Procurement
PM
Assessment
Processes,
Roles
100
Contract
Management
80
60
Project
Controlling
40
20
Personnel
Management
0
Group:
Tr e n d i n q u a l i t y o f n e w o r d e r s p e r q u a r t e r
15%
10%
5%
0%
-5%
Quar ter 1
Quar ter 2
Q uar ter 3
Quar ter4
FY:
Qualification
Knowledge
PM Portal
Management Operative
Quality
Management
Q3/2003
Q2/2003
Group:
Tr e n d i n s a l e s m a r g i n / E B I T d e l t a p e r q u a r t e r
(as at quar ter end)
5 ,0 %
0 ,0 %
Sales margin/EBIT delta
-5 ,0 %
Quar ter
Quar ter 2
Quar ter
Quar terl 4
127
Recommendation 4:
Analysis of projects business
.......
.......
.......
.......
.........
Total sales
Proportion
projects business
Number of projects
Number of projects
OI calc. < FC
Corresponds to EBIT/
sales margin
OI calc.-FC
Proportionate
project volume
Number of projects
FC < 0
Corresponds to EBIT/
sales margin
Number of projects
EBIT/Sales margin of FC
(= negative value)
Proportionate
project volume
128
1. Total sales
Proportion of projects business (FY)
Total project volume
Number of projects
80
60
40
20
0
-100
-80
-60
-40
-20
20
40
60
80
100
-20
-40
-60
.......
.......
.......
.......
.......
.......
.......
.......
.......
.......
-80
-100
Certified
.......
.......
.......
.......
.......
A s PM
se
ssm
en
t
129
PM
Assessment
130
131
PM Assessment
Within the scope of the PM@Siemens Initiative, it is planned to create more clarity in
the way a project is handled. What is our
project management status, how is it being
put into practice, how well developed is the
PM Topics
Project Categories
Elements in PM Framework
a Processes, Roles
a A project a B project
a C project
s Contract Management
d Project Controlling
f Personnel Management
g Qualification
h PM Portal
j Operative
Quality Management
k Knowledge
Management
l Transfer and
Implementation
; PM Assessment
A Project Procurement
S PM for Small Projects
a Common Training
a Common Instruments
(Tools, Metrics, Reports etc.)
a Project-specific use
132
1. Assessing projects
This assessment takes the form of an analysis of the extent to which the elements of a
successful project management system have
been put into practice in ongoing projects.
The assessment result shows whether a high
standard of project clarity has been attained
through adequate principles, guidelines,
specifications etc. and whether it can thus
be ensured that the project is being handled
reliably. Examples include the quality of documents handed over during the handover
from the bid to the realization phase, or the
way in which project risks are identified and
dealt with.
133
Assessment Procedure
Fundamental
characteristics
134
project preparation and handling, and compared to the actual day-to-day project practice.
The idea behind PMA+ is the GPM (association for project management) model for
Project Excellence. This defines those subject areas (see assessment spider chart)
which, according to the unanimous opinion
of the experts, are essential for a projects
success.
Assessment characteristics
PMA+
CT SE Process Assessment
Product characteristics
PMA+
Product characteristics
a Focus on the project
CT SE
a Maintains project
Process
management expertise
Assessment
a Review for appropriate and
valid standards
a Clear strengths/weaknesses
assessment, repeated every
13 years
a Moderation by external
assessors
a Normalizing character
a Non-normalizing character
W Bottom-up view
W Top-down view
135
Compared to the initial model, the individual subject areas are further broken down in
order to give greater consideration to significant project management issues.
The better the concurrence between the
project analyzed and the specified process
steps and results, the higher the rating.
The scope of CT SE Assessment criteria directly related to the project is comparable to
PMA+. The yardstick for evaluating process
maturity is, however, the five-level maturity
model for processes, CMM (Capability
Assessment procedure
PMA+
CT SE Process Assessment
Procedure
PMA+
a Applied in projects
a Processing the list of
questions by participants
a Immediate evaluation in
a user-friendly database
a A high points score is
achieved through compliance with the recorded
maximum requirements
profile
a A low points score indicates a need for action in
the project
Procedure
CT SE
Process
Assessment
136
Procedure, Execution,
Experience
In PMA+, the content-related scope and the
project assessment take the form of an Access-based DP application, either on a CDROM or downloaded from the server. The
tool comprises questions on the project management system, the answers can be entered directly into the tool. The assessment
is worked out and presented on the basis of
these answers. Best results are achieved
through dialog between the Project Manager/team and an experienced Project Manager or PM Coach. These can point out the
strengths and weaknesses of a project to the
Project Manager in charge. The assessment
results of several projects can be represented in the form of a comparison and/or measured against a sector benchmark.
The CT SE Assessment is a further development of the certified methods applied to development and engineering processes for
hardware/software systems. The standardizing list of questions has been extended to include the modules of the PM framework and
the specifications of the PM@Siemens Initiative.
In separate interview sessions with management, project leaders and staff, the assessors determine a strengths and weaknesses
profile for the defined and practiced project
management processes. Evaluation of
project documents and a demonstration of
procedures (directly at the workplace of
those involved) round off this compilation of
information. The maturity level is then determined automatically by answers to the questions contained in the underlying list.
The key assessment results comprise a portfolio specifying what needs to be done
(derived from the strengths and weaknesses
profile), along with detailed proposals for
action.
137
Recommendation 1:
Implementation of PMA+
Assessment principles
a Concentration on improvement
potentials
a Form of cooperation
Subtopics to be observed
Assessment steps
a System Functions
h Requirements/bidding
h System engineering/review
a Process functions
h Training
h Quantity control
h Process maintenance and technical
innovation
Recommendation 2:
CT SE Process Assessment
138
Experience with PM
Assessments
139
140
P4
P3
P1
Do
cu
P2
5
4,5
4
3,5
3
2,5
2
1,5
1
proTota
ces l
s
me
pronted
ces
s
Pra
c
protised
ces
s
Example
subtopic
Planning/
Controlling
L3:
L2:
L2:
L2:
L2:
L2:
L3:
practice
0%
Siemens
Level
5
4,5
4
3,5
3
2,5
2
1,5
1
Industrial
Standard
Process
fulfilled
potential
Documented
Process
Practice
1.50 (example)
Pr
Pr oje
oc ct
ur
em
en
Project
Procurement
141
142
143
Project Procurement
Introduction
The Purchasing function plays an important
role in projects business throughout the entire project term, all the way from winning
the order through to the end of the warranty period.
The following recommendations for action
were devised by experts from the Groups
participating in the PM@Siemens Initiative.
Project
acquisition
Go-/
no go
Bid-/
no bid
Bid
preparation
Contract
preparation/
negotiation
Bid
approval
Milestones
Contract
signing and
project
handover
Project phases
Acquisition phase
Project
management
planning
Bid phase
Planning
phase
Implementation
PM
planning
completion
Commissioning
End of
implementation/works
acceptance
Warranty
Customer's
acceptance
Implementation phase
To describe the purchasing activities in connection with the project, the phase model
of the project development process of
PM@Siemens was used as a basis for analysis (see illustration).
To support implementation, a detailed specification was elaborated. This specification
contains a description as to what services
Purchasing should incorporate in the
projects and what inputs from the projects it
would need to this end (see publication
in Global Procurement Web at
http://gpw.gpl.siemens.de).
After
Sales
Project
completion
144
Recommendation 1:
Early and continuous integration of
the Purchasing function in the
project origination process and
project processing schedule (from
acquisition through to warranty)
Integrating the Purchasing function into projects at an early stage ensures that the potentials offered by the procurement market
are exploited in full.
It is thus essential that the Project Buyer be
incorporated in the project team as a permanent team member, for the duration of the
project. Only once the Project Buyer is physically present can the full transfer of information to Purchasing be ensured and can all
process partners pursue the same project
goals in a coordinated fashion.
Integration of the Purchasing function in the
project organization may be limited to participation in team meetings for projects of a
relatively uncomplicated nature, but may also extend to full-time assignment of a Buyer
to a project of major complexity.
The project-specific participation of
Purchasing starts before the project is actually won. Within the scope of a strategic
Purchasing function, the procurement market is analyzed and a strategy for the relevant material field or grouping is derived.
The results of this analysis are then applied
in coordination with the appropriate
Group/Division strategy, taking into consideration the products and the way the relevant
markets work and, most especially, the procurement market itself. To this end, procurement market analysis and material group
dossiers (derived from the analysis) are elaborated at regular intervals, providing a comprehensive illustration of the procurement
market and the requirements applying in the
relevant material groupings/fields.
Old
Exploitation
of potential by
Project
Procurement
t
Preacquisition
Project
acquisition
Contract
preparation/
negotiation
Implementation
Commissioning
Warranty
145
Recommendation 2:
Target cost agreement for purchases and supplies on the basis of
complete and up-to-date project requirements (including a revolving
actual-to-target comparison)
To ensure efficient EVA and EBIT control in
projects, cross-functionally coordinated
project target costs are agreed for essential
purchases and supplies between Project
Management/Controlling and Project Purchasing. Such agreement must have been
reached at the latest by the time the customer contract is signed (milestone: Contract
concluding and project handover). Internal
goals along with project-specific and customer-specific requirements are incorporated
here, as are market conditions and purchasing strategies. The project team and particularly Purchasing are thus provided with a
clear target figure for ensuring project
success.
Similar to a parts list, a list detailing the specific project requirements must be created at
an early stage and updated regularly. In the
project acquisition process, it must contain
the prices, suppliers and delivery dates recorded by Purchasing, to ensure an overview
of the procurement situation in the project
at this early stage. The contents must be coordinated cross-functionally, taking a Groupspecific make-or-buy strategy into consideration, where applicable.
Should changes arise in the internal and external context (e.g. customer changes,
change of suppliers, changes in project staffing/ assignment etc.) during the further
course of the project, these must again be
coordinated cross-functionally. In this event,
the target costs must be revised appropriately and adapted accordingly, if required, in
consultation with Project Controlling.
At the time of bid preparation the project requirements list serves as a basis for prices
and suppliers and is used as the starting
point for Project and Purchasing Controlling.
Recommendation 3:
146
This feedback also applies to Claim Management, i.e. the documentation of additional
claims in relation to contractual regulations.
This documentation forms the basis for asserting (or warding off) claims.
Recommendation 4:
Consistent securing of customer
contract contents in supplier contracts (back-to-back) in cooperation with Contract Management
The essential customer contract contents
must be transposed onto the relevant supplier contracts (back-to-back) in order to avoid
divergences that work to our disadvantage,
e.g. in performance characteristics and payment periods (Fig. 4). This can be ensured
through involvement of a Contract Manager
in the Group, of a Contract Manager directly
in Purchasing or, for complex questions, also
through Legal Services. The aim is to continuously identify and assess supplier contract
loopholes and to eliminate them (see Contract Management module).
Project
Supplier(s)
Supply
Management
(Buy Side)
Siemens
Project Management
Project Specifications
Contract/Claim Management
Risk Management
Change Management
Account
Management
(Sell Side)
Customer
147
Recommendation 5:
Project-specific supplier evaluation
to reduce costs and improve quality,
concerning both internal and external suppliers
Within the scope of project analysis and in
order to further develop the supplier base, a
cross-functional evaluation of strategic
project suppliers must be performed analogous to the Siemens supplier evaluation system (SES) in the context of supplier management by the project team (Purchasing and
process partners), in accordance with a
Summary
Due to its particular characteristics (batch
size 1, uniqueness etc.), project business
holds a special position and accordingly
places high demands on Procurement.
An analysis of Procurement in projects business has shown that there is very close interaction between project progress and Procurement throughout the period when the
project comes into being. The recommendations of PM@Siemens ensure close interlinking between project and Procurement, as
they are essential success factors. In the
Groups/Divisions, these recommendations
support the necessary process-related and
structural adaptations, in order to exploit
the potentials for making savings.
148
149
Small
Projects
ts
all jec
Sm Pro
150
151
152
Customer-specific solution
Projects
Delimitation
to top
Small Projects
Delimitation
to bottom
Supply business
153
PreAcquisition
Project
Acquisition
Bid
Contract
Preparation Negotiation
Handover
Project
Opening
7
Planning
8
Sour. &
Managem.
9
Shipment
10
Erection
11
Commis.
12
13
Acceptance
Test
Warranty
Period
Contract Management
to be
finalized
Career Model
Qualification Program
Reporting in PM@Siemens (e.g. shotgun)
PM Assessments
to be
finalized
154
Recommendation 1:
Minimum standard
each project phase as well as the work results required. These work results defined
here are deemed a minimum and must thus
be attained in every project. All work results
specified here must be documented adequately and verifiably.
Implementation, in particular the stipulation
as to what method is to be used to perform
the work and how the work results are to be
documented, lies within the Groups sphere
of responsibility.
PreAcquisition
Project
Acquisition
Bid
Contract
Preparation Negotiation
Handover
Project
Opening
7
Planning
8
Sour. &
Managem.
9
Shipment
10
Erection
11
Commis.
12
13
Acceptance
Test
Warranty
Period
155
Work results
End
milestone
Description
Responsible
Preacquisition
PM010
Go/no go
decision
Decision on whether
bid preparation or
project initiation is to
be considered
Sales&
Marketing
Process
Acquisition
PM020
Bid/no bid
decision
Decision on whether
a bid is to be prepared
Sales&Marketing
(for Proposal Factory)
Involving: Proposal
Factory or Proposal Manager
Bid
preparation
a
a
a
a
a
a
PM050
Bid approval
decision
Decision on whether
to submit bid to customer
Proposal Manager/
Bid Manager
Involving: Sales&Marketing,
commercial functions,
Project Manager, if required
Contract
negotiation
PM070
Project
won/lost
Customers decision
to accept/refuse bid
Sales&Marketing
Handover
PM080
Start project
execution
Project responsibility
defined
Project Coordinator
Involving: Sales&Marketing
PM100 Order
entry clarified
PM200 Release
of detailed
planning
Project implementation
may begin, all conditions
fulfilled
Project Coordinator
PM300 Release
for shipment
PM400 Material
and resources
on site;
PM500 End of
erection
PM600 End of
commissioning
Project Coordinator
Acceptance report
List of open points and known deficits
Lessons Learned (optional)
Ex-post costing (optional)
Invoicing
Customers acceptance
performed, final invoice
can be issued, start of final
project works
Project Coordinator
Completion,
project
conclusion
a
Project
Opening a
and Clari- a
fication, a
Detailed
Planning
Sourcing a
& Manu- a
facturing,
Shipment,
Erection,
Commissioning
Acceptance
Test
a
a
a
a
a
Completion
a Handover to service
a List of open points and known deficits
a Customer satisfaction survey (optional)
156
Recommendation 2:
Contract Management
Contract Management should provide support for project work on the following points:
a
training programs for Project Coordinators, on topics relevant for the contract
157
Recommendation 3:
Career model
Project
Director
Senior
Project
Manager
Change to a
Group with
major projects
Project Coordinator
(in accordance with PM4 level)
Project Manager
Basic
qualification
Small Projects
Project Team
Project Team
Projects
Small Projects
158
Recommendation 4:
Qualification Program
Qualified
Selected experienced
Project Managers
from the Groups
Local
training
Project Coordinator
Sales&Marketing
Proposal Manager
Project Teams
Siemens Academy
Trainthe-trainerphase
159
Recommendation 5:
Recommendation 6:
PM@Siemens Reporting
PM Assessments
CT SE Assessment
Application yet to be clarified.
160
161
Project Management
A s s e s s m e n t To o l
Version 3.0.1
Project Management
the Siemens way
Siemens AG
Power Transmission
and Distribution
P.O. Box 32 20
D-91050 Erlangen
Germany
http://projektmanagement.siemens.com
Siemens AG
2003 by Siemens Aktiengesellschaft Berlin
and Munich. All rights reserved.
3rd revised edition 06/03
Order No. E50001-U700-A168-X-7600
006100/76764