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Organizational Project Management Maturity Model (OPM3)

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Title: Organizational Project Management Maturity Model (OPM3)


1
Organizational Project Management Maturity Model
(OPM3)
Dr. Khaled Bubshait
2
Dr. Khaled Ahmed Bubshait Khaled Bubshait is a
Professor of project/operations Management at
King Fahd University of Petroleum and Minerals.
He was the former Director of the Economic and
Management Center at the Research Institute at
KFUPM, Dhahran, Saudi Arabia. He received his
undergraduate degree B.S in applied Civil
Engineering (1976) , his MBA from KFUPM(1978),
and his PhD from Georgia State University, USA
(1984). He published several articles in the
area of project Management, operations
Management, Total Quality Management, Business
Incubator and SME Strategies . Also he led the
project team for establishing a National Training
Plan for the Kingdom of Saudi Arabia. He is also
in the Editorial Board of the Business Process
Reengineering Management Journal and the
Benchmarking Journal. And Dr. Bubshait was the
former president pf the American Cost Engineer
Arabian Gulf Section Tel . 055842500
3
PRESENTATION OUTLINES
  • The philosophy of Project Management
  • Reasons For project Failure
  • OPM3 Definition
  • Implementation Process
  • Benefits
  • Source

4
The philosophy of Project Management
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DEADLINE

WORRY
TIME
7

PROJECT MANAGEMENT CYCLE
PROPOSAL
PLAN
CONTROL
ANALYSIS
DECISION
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Time Data Cost Data Performance Data Procurement
Data Owner special Data
Project Meeting Project Status Report Progress
Measure Procurement Contractual Conditions
Brainstorming Process Company Needs Market
Research. Feasibility Study Change of
Objectives New Product Development
Project Control
Project Plan
Proposal
Commissioning
Corrective Actions
Analysis
Contractor Productivity Procurement
Deadlines Manpower Loading Claim Request
Proposal Development Conceptual Estimate
Paper Design basis Paper Full Proposal
Change Orders Additional Time/Cost Analysis
Project Management Systems
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Practices
  • More than 250 billion is spent each year in the
    United States on IT application development of
    approximately 175,000 projects.
  • 31.1 of projects will be canceled before they
    ever get completed.

10
  • 52.7 of projects will cost 189 of their
    original estimates.
  • Lost opportunity costs are not measurable, but
    could easily be in the trillions of dollars.

11
  • 69 of organizations have no formal
    organizational definition of project management
    roles and responsibilities
  • 62 of project resources are allocated to
    projects on a part-time or informal basis

12
  • 81 of resource assignments occur with no formal
    coordination or organizational management
  • 64.5 of project managers have little or no
    formal training in project management or
    resources allocation.

13
  • Most people working as project managers today
    didn't set out as such as their career path. In
    point of fact, for many project managers it still
    isn't their career path.
  • Many still have full-time jobs and functional
    responsibilities, and the task of keeping one--or
    several--projects in line is just one of many
    balls they juggle as they navigate their day.

14
  • The Top 10 Reasons Projects Fail (1)
  • Inadequately trained and/or inexperienced project
    managers
  • Failure to set and manage expectations
  • Poor leadership at any and all levels
  • Failure to adequately identify, document and
    track requirements
  • Poor plans and planning processes

15
The Top 10 Reasons Projects Fail (2)
  • Poor effort estimation
  • Cultural and ethical misalignment
  • Inadequate or misused methods and
  • Inadequate communication, including progress
    tracking and reporting
  • Misalignment between the project team and the
    business or other organization it serves.

16
  • What Does it Take?
  • Project integration management
  • Project scope management
  • Project time management
  • Project cost management
  • Project quality management
  • Project human resource management
  • Project communications management
  • Project risk management and
  • Project procurement management.

17

TOP MANAGEMENT
M
I
D D L E
ENG.
UTILITIES
MANAGEMENT
OPERATIONS MANAGEMENT
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Misalignment between the project team and the
business or other organization it serves
19
  • Since 1998, hundreds of professionals have
    contributed to the development of a new PMI
    standard called OPM3 that will help
    organizations address these issues.

20
WHAT IS OPM3? OPM3 is an acronym for the
Organizational Project Management Maturity Model
a standard developed under the stewardship of
the Project Management Institute. s
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The purpose of this standard is to provide a
way for organizations to understand
organizational project management and to measure
their maturity against a comprehensive and
broad-based set of organizational project
management Best Practices. OPM3 also helps
organizations wishing to increase their
organizational project management maturity to
plan for improvement.
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Organizational Maturity Levels
  Level 5 Optimizing Processes and performance continually improved through quantitative measures and analysis. (leader)
Level 4 Quantitatively Managed Product quality and process performance are quantitatively measured. A repository of measures exists to support fact-based decision-making.( Lesson learned) Saudi Aramco
 Level 3 Defined Processes are defined, understood, and consistently applied from an organizational perspective.Processes are proactively managed and improved.
Level 2 Managed Repeatable processes are practiced on a project level. Process discipline is maintained through times of stress. Visibility to Status and delivery of work products at defined intervals.
Level 1 - Initial Processes are ad hoc. Results are unpredictable. Success is dependent on heroics of the project team.
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OPM3 WHAT FOR? PMIs Organizational Project
Management Maturity Model or OPM3 is designed to
guide organizations in the development of the
Capabilities necessary to achieve Best Practices
in Organizational Project Management (OPM). OPM
combines portfolio, program, and project
management to achieve the goals/strategies of an
organization through projects.
24
OPM3 SPECIFICALLY ADDRESSES THE FOLLOWING 10
AREAS 1. Standardization and Integration of
Processes 2. Utilization of Performance
Metrics 3. Commitment to the Project Management
Process 4. Alignment and Prioritization of
Projects 5. Implementation of Continuous
Improvement Processes 6. Using Success Criteria
for results analysis 7. Understanding People and
Competence 8. Allocation of Resources to
Projects 9. Organizational Fitness 10. Teamwork.
25
  • HOW DOES OPM3 WORKS?
  • There are three basic elements to applying OPM3
    in an organization
  • Knowledge
  • Assessment
  • Improvement
  • .

26
HOW DOES OPM3 WORKS? There are three basic
elements to applying OPM3 in an
organization Knowledge OPM3 is the first
iteration of a body of knowledge on the subject
of organizational project management and a subset
of the larger project Management Body of
Knowledge (PMBOK). Because this standards will
form the basis of an organization's maturity
assessment, familiarity with the contents of the
standard is essential.
27
Assessment. In Assessment, the organization uses
an assessment tool to determine areas of strength
and weakness in relation to the body of best
practices. This assessment process will help the
organization decide which Best Practices or
groups of Best Practices to investigate further,
either to confirm competency in an area or to
identify constituent Capabilities of one or more
Best Practices that need attention. OPM3 outlines
how to conduct this detailed investigation in the
most helpful way for the organization, through
the use of the Directories.
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. Improvement The results of the Assessment
will include a list of capabilities not yet fully
developed in the organization. OPM3 provides
guidance in placing these in order of importance,
and this sequence forms the basis for any
subsequent plans for improvement. The actual
process of implementing improvements in an
organization, which may involve organizational
development, change management, restructuring,
retaining, and other initiatives, is beyond the
scope of this standard.
29
Procurement Planning
Requirements
input Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy
Tools Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT
Output Procurement Management Plan
30
Quality Planning
Quality Planning Requirements Quality Assurance Requirements Quality Control Requirements
input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Quality Management Plan Operational Definition Check list
Tools Techniques Benchmarking Flowcharting Cost of quality Project Schedule Check list Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Pareto Diagram Trend analysis
Output Quality Management Plan Operational Definition Check list Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment
31
OPM3 Implementation Process
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Source Selection
Requirements
input RFI RFP Evaluation Criteria Organizational Policy
Tools Techniques Contract Negotiation Audit
Output Contract File Contract MIS
36
Procurement Planning
Requirements
input Scope Statement Product Description Procurement Resources Market Condition Purchasing Policy
Tools Techniques Make or Buy Analysis Expert Judgment Contract Type Selection Chain Suppliers JIT
Output Procurement Management Plan
37
Quality Planning
Quality Planning Requirements Quality Assurance Requirements Quality Control Requirements
input Quality Policy Scope Statement Product Description Standards and Regulation Stakeholders Input Quality Management Plan Quality Control Metrics Operational Definition Work Results Quality Management Plan Operational Definition Check list
Tools Techniques Benchmarking Flowcharting Cost of quality Project Schedule Check list Pareto Diagram CMMI Statistical Tools Audits TQM Inspection Control Chart Pareto Diagram Trend analysis
Output Quality Management Plan Operational Definition Check list Quality Assurance Plan Quality Improvements Expected Quality Acceptance decision Rework orders Process Adjustment
38
OPM3 Benefits
  • Help organizations understand current project
    management, program management and portfolio
    management.
  • Enable executives to assess their own
    organization or partners ability to achieve
    strategic priorities through projects.
  • Identify areas for improvement and ways to make
    coordinated improvements by increments.
  • Help all level of management understand how to
    create an environment for successful project
    activity.

39
  • Help those responsible for project management,
    identify drivers of project results and set
    standards for excellence.
  • Enable organizations to achieve consistent
    implementation of project management work methods
    through standardization and institutionalization.
  • Demonstrate relationships between executive
    functions and project management functions.
  • Explain how to make project management measurable
    within an organization.

40
  • Rally an organization or its partners to focus on
    project management improvements.
  • Facilitate organizational change associated with
    developing projects, program, and portfolio
    management functions.
  • Develop consistency and predictability in project
    delivery.
  • Distinguish your own organization from
    competitors.

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