Flashcards in Lecture 11: Project Dynamics Deck (75):
Explain the decomposition components of a project.
- time, leading to sequence activities
- labour leading to internal specialisms
- organisational divisions leading to departmentalisation
- authoristy leading to management levels
What are the goals of decomposition?
- enable simultaneous development
- define working clusters of elements
- relate systems parameters to practical organisational aspects (coordination, competence, magnitude of clusters)
What does a system consist of?
- set of elements
- set of relations between elements
What is a sub-system?
A sub-set of elements of the system.
(e.g. roof construction, foundation with bottom slab, elevators in elevator shaft)
- a subsystem is not necessarily a component, but a component is a sub-system
- a component has a function
- a sub-system is an organisational part system
What is an aspect-system?
A subset of the relations of the system.
relations: (geometrical, structural, physical, architectural, etc.)
What is a phase-system?
A period in which the system has another goal, function or configuration.
(E.g. storm surge barrier, movable bridge, multi-functional stadium, school)
What does a part sytem consist of?
Identify the 6 different relations between partsystems.
- Aspect - Aspect
- Sub - Aspect
- Sub - Sub
- Sub - Phase
- Aspect - Phase
- Phase - phase
Describe the aspect - aspect partsystem relation.
System behaviour, coordination issues
Describe the sub- aspect partsystem relation.
What contributes to what topic
Describe the sub- sub partsystem relation.
interactions and communication
Describe the sub- phase partsystem relation.
What acts when
Describe the aspect-phase partsystem relation.
Which topic is when relevant
Describe the phase-phase partsystem relation.
Transformation to other functions
What are the different aspects of decomposition?
- Autonomy of part systems when dealing with development task
- Structure of mind when dealing with coordination of part systems
What are the main conditions for decomposition of a system?
- The whole system should be represented conrrectly at any level of observation
- A correct representation only can be achieved with full preservation of all relations between all elements
Explain the two step decomposition over different control periods for Nearly Decomposition.
- Short term behaviour of sub-sytems is determined by internal coherence of the sub-system
- Long term behaviour of sub-systems is determined by the external coherence between the sub-systems.
What is the definition for coherence?
The quality of forming a unified whole.
Diagram shows lots of relations/bonds for strong coherence.
Explain the 2 tricks with the matrix for decomposition of a system.
- Row-column permutations in order to displace the relations (X) as close to the diagonal as possible.
- When having the relations located around the diagonal it is easy to form clusters according to the nearly-decomposability rule
Explain row-column permutations.
Moving the rows and columns in order to displace the relations (X) as close to the diagonal as possible so that nearly decomposition can be formed.
Explain the effect of decomposition on the formation of sub-systems.
Sub-systems, being clusters of elements, can be formed using relations.
Explain the formation of aspect systems.
Aspect systems, being clusters of relations, can not be formed using elements.
Aspect systems must be:
- as specific as possible
- as independent as possible
- roughly comparable in their scope and significance
What are some examples of aspect-systems.
- capital costs
- maintenance costs
- operational costs
What is the definition for coordination?
Coordination is the control of a system, which is built up by part-systems.
- Control starts at element level
- Coordination= control at higher system level
What are the key components of control at element level?
- Physical environment
What are the key components of Meta (higher level) control?
- Meta controller
- controlled system
What are the key componenets of Meta meta (2 higher levels) control?
- Meta- Meta controller
- Meta controller
- Controlled sytem
Who is in charge of control at element level?
Element leader (element)
Who is in charge of Meta-control?
Sub-sytem leader (sub system)
Who is in charge of Meta-meta-control?
Projectleader Problem solver (all aspect systems)
Who is in charge of Meta-meta-meta-control?
Projectleader Problem owner (all variables)
Who is charge of Meta-meta-meta-meta- control?
Explain general validation.
- refers to the use of models, standards, rules, methods,etc. to see if valid
Explain specific validation.
- refers to fitting the system in the specific context to see if valid
Explain general verification.
- refers to satisfy the criteria mentioned in standards to see if true
Explain specific verification.
- refers to satisfy the specifc requirements of the client to see if true.
What are the different components of information processing from data towards vision?
What are the different components of information processing from input to output?
Explain information processing capacity.
Information processing capacity should be sufficient to handle the quantity of information generated in a circulary and evolutionary development of complex systems.
Current projects generate too much information due to interface management
Equation for information rate in a project:
Total information rate =
Throughput information (Ft) (input-output)
+ Blockage information rate (Fb) (input blocked)
+ Coordination information rate (Fc)
+ Noise rate (Fn) (output with no correlation with input)
Identify the 3 information flows.
- Disciplines - elements
- Elements - subsystems
- System - variables
Identify the 3 information fields.
- Aspect system
What is the strategy for information processing?
- Minimise information flow (between elements, between sub-systems)
- Maximise information fields (aspect systems)
What are the different types of messages for information and communication?
- Referential messages (what is going on)
- Expressional messages (what sender wants)
- Relational messages (relation sender reciever)
- Appealing messages (asking to do something)
What are important things to remember for effective communication?
- message should be concise
- there sould be attention
- the message should be clear
- the sender should be credible
- there should be a good timing
What are 5 goals in communication links?
- Unilateral link
- Bilateral routine
- Bilateral dialogue
- Multilateral routine
- Multilateral dialogue
What is unilateral link?
Information flows in one direction
What is bilateral routine?
Information flows in two directions about routine matter
What is bilateral dialogue?
Discussion about not-fixed matter
What is multilateral routine?
Information in many directions about routine matter
(e.g. distribution of boundary conditions, starting points, assumptions, requirements, etc.)
What is multilateral dialogue?
Information in many directions about collection and distribution of the information about aspect systems.
Descibe the 5 parts of the Mintzberg organisation.
1 = core for the execution of the work (element leaders and technical staff)
2= strategic top (project leaders)
3= middle ranks (sub system leaders)
4= techno structure (standards, validation, verification,etc)
5= supporting staffs (input and output)
What are 3 different organisation cultures?
- Reactive organisation
- Responsive organisation
- Proactive organisation
What type of organisational culture could be suitable to deal with project dynamics?
mix of responsive and proactive
What are essential outsourcing and collaboration in project dynamics?
- client and contractor
- contractor and sub contractors
- contractor and suppliers
- sub contractor and sub contractors
- sub contractor and suppliers
- suppliers and suppliers
When to use outsourcing?
When a person (or an organisation) is not competent to do that task himself, or does not much want to do that task.
What is outsourcing?
Outsourcing is a transaction between a seller and a buyer for the delivery of a good (product or a process or a combination of both (output))
Explain the conflicting interest of client and contractor.
- Client wants cost effectiveness = value for money = hgihest output/ client's costs ratio= largest client benefit
- Contractor wants cost efficiency = money for value = highest price/contractor's costs ratio= largest contractor benefit
What is the client benefit?
The difference bwetween output and price
What is contractor profit?
The difference between price and costs
Identify the differences between outsourcing and collaboration.
Outsourcing -- Colloboration
Different levels -- Equal Levels
Conflict of interest -- Common interests
Top down -- Bottom up
Closed book -- Open books
Transaction/ delivery based -- relation based
What are the basic laws of outsourcing and collaboration?
- Two or more players which want to deliver the same products or the same processes at an equal scale level should always be placed in an outsourcing competition
- Two or more players which want to deliver complimentary products or complimentary processes at an equal scale level preferably should collaborate
Explain outsourcing and collaboration in traditional project management.
- Traditional project management is a mix of both outsourcing as well as collaboration around a fixed system to be devleoped in compliance with fixed specifications
- In the contract the total task is divided between client and contractor. Both parties busy with the system and sharing the total responsibility.
Explain the responsibility in outsourcing.
- client is responsible for context with respect to stakeholders (environment)
- contractor is responsible for system to be delivered (wrt subcontractors and suppliers)
Explain the responsibility in collaboration.
- Parties are severally liable and hence severally responsible.
What is the total benefit in dynamic contracts?
clients benefit + contractors profit
both parties should be interested to increase the total benefit in order to increase their own benefit/profit.
Explain the contract in current projects.
- client - contractor contract is fixed with fixed output and fixed price
- both parties prefer suboptimising their own benefits above optimising total benefit
- all risk and all dynamics are covered in contractor's difference between price and costs
Explain outsourcing in current projects.
- All project dynamics are contractually arranged with costs-free relations
Two basic contract types
- Fixed price contract
- Cost plus Fee contract (price is fixed at the end of a project)
What is the equation for profit in a fixed price contract?
profit = basic fee + (target cost - actual cost)
What is the equation for profit in cost plus incentive contract?
profit = basic fee + sharing ratio * (target costs - actual costs)
What is the equation for profit in multiple incentive contracts?
profit = basic fee + sharing ratio*(target costs- actual costs) + delivery incentive + performance incentive
Explain alliance contracts.
- contractors client and contractor create an initial risk budget
- during the project all unexpected events with associated consequences will be financed by this risk budget
- the risk budget left over at the end of the project will be shared on 50%-50% basis
- effective in preventing natural predisposition of contractors to create additional work with additional money
- based on fixed output with active risk control
Identify key components of dynamic contracts.
- total benefit
- output and costs should be variable
- benefit sharing formula
- output should be quantifiable
Some notes on dynamic contracts:
- output price formula is an agreement
- aspect systems are as independent, specific and equal in significance and scope as possible
- output could be spanned in a linear euclidian vector speace by a number of vectors, each vector representing a value of an aspect system.