Use of Data Analytics in Project Management
Use of Data Analytics in Project Management
Keywords:
Project Analytics, Commercial Vehicles, Project Dashboard, Portfolio Management, Decision Making.
Abstract:
The complexity of managing projects within the Triple constraints has been increasing day by day. Quick
browsing through the changes over past one decade tells us how fast the “Complexity” of managing
projects has been changing. Various factors contributing and will continue for next one decade to name
few, as, shortening product development cycles, changing customer expectations, exponentially
increasing usage of internet as well as more number of millennial in the project teams.
We believe, one of the ways to manage this complexity and the need of changing world, is using
digitization. The digitization of Project Development phases will provide all synchronized database
available to each stakeholders appropriately and same can be used for Managerial decision making.
Building Analytics on this database, Risks affecting Project Performance Parameters – Time, Cost, and
Quality can be effectively predicted and controlled. In addition, status will be available for each project to
individual project teams whereas Portfolio Dashboard will provide bigger picture for managerial decisions
on Strategies & Organizational Priorities. Because of its real-time nature, it can be available across the
world at the same time providing a common platform to network and common language to interact.
We, at Mahindra Trucks & Bus Division, have taken leap & bound steps in coming up with a home grown
solution using internal strengths as well as benchmarking with industry bests, which we believe will go
long way in changing the face of Project Management not only in MTBD but also in Mahindra Corporate
and Automotive Industry.
Intent:
Digitization of Project Management process and application of Analytics will provide strategic value
creation on the part of organizations.
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Table of Contents: Page
1 Introduction 03
4 Conclusion 11
References
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1 Introduction:
1.1 Evolution of Project Management:
We are into 21st Century, it’s an era of digitization to enable quicker delivery, continual reduction in efforts
and costs by applying managerial discipline, Project Management which is still relatively young.
Project management has been practiced for thousands of years but it was in mid-1950, Organizations
commenced applying formal project management tools and techniques to projects. First-generation
project management approaches integrated project planning, control, and management with time
management approaches. In the mid-1980s, ever increasing competition and quicker product delivery
made most manufacturers implement PM approaches and solutions for new product development. In this
second generation of project management, the Work Breakdown Structure (WBS) helped project
managers and systems engineers break projects into smaller, discrete work elements. The use of WBSs
allowed businesses to better organize and define the work and scope of the project.
In the late 1980s, a need arose for project management in areas other than manufacturing and
engineering. Global competition was heating up just as such project management organizations as the
Project Management Body of Knowledge (PMBOK) and the Association for Project Management (APM)
were emerging to put structure to the PM discipline. Project management processes became distinct and
separate from product development processes, and PM methodologies underpinned the business
management methods of the day, including business process reengineering and total quality
management.
By the early 1990s, the discipline of project management had become a core competency for many
organizations. PM manuals, procedures, tools, templates, and applications were widely disseminated
through corporate intranets.
In traditional project management practice, projects typically focused on efficiency and operational
performance, which mainly means meeting time and budget goals. However, dynamic business
environments and global competition require finding new ways to use projects as competitive weapons.
Now a days every new project initiated has business goal and achieving better business results is the
outcome. Todays, project managers are increasingly required to focus on business aspects. Their role is
expanding from getting the job done to achieving business results and winning in the market place. There
is a clear distinction between operationally managed projects and strategically managed projects.
Operationally managed projects focus on getting the job done, while strategically managed projects focus
on achieving business results. In 21st Century, Organisation processes digitization provided all
synchronized database available to each stakeholders on real time basis. In isolation Project status will
be available for each individual Project whereas Portfolio Dashboard will provide bigger picture for
managerial decision making to strategize the projects and Organizational Priorities. This is when third-
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generation, strategic project management has emerged to address the ongoing concern of value creation
on the part of organizations and Project Analytics gained strategic importance in Project Management.
Definition Analytics can be defined as a method to Analysis can be defined as the process
use the results of analysis to better of dissecting past gathered data into
predict customer or stakeholder pieces so that the current (prevailing)
behaviors situation can be understood.
Time Period Analytics look forward to project the Analysis presents a historical view of
future or predict an outcome based on the project performance.
the past performance.
Over the period, while this process enabled many successful new Product launches helping Mahindra to
achieve business objectives and strong business position in the market. On the other hand though formal
Process was ensuring documentation, review, approval cycle at each stage of the project but continual
updation of Project Plans, Project deliverables was becoming more challenging. Project Teams seating at
multi-location, Project data use to be available with individual team members sharing project documents
through emails often leading to issues like revision control, retrieval which prompted the need for
centralized data ware house for Project Documents.
Then also data duplication, integration and errors was limiting the gain out of Project Server. Project
documents review, approvals, Project Status reporting and Management Information System (MIS) was
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time consuming and becoming burden for faster project delivery. Around same time other business
processes like Manufacturing, Finance, and Materials Management were getting digitized through SAP,
Team Centre, and Cordys. Looking at the benefits, it was making more valuable proposition, to digitize
Product development process and integrate other IT tools.
With the increased Product portfolio and number of projects, complexity increased, demand for quicker
and faster delivery to market increased. Organizations were managing long duration and short duration
project with same development approach, demand was lean process for fast delivery and process
automation to avoid duplication and real time project reporting.
Organisation Projects comprises of short duration and long duration projects. As such processes,
methods used for managing projects differs in their approaches. This is where Tunnel Vision approach for
short duration and Funnel Vision for long duration projects was applied.
Tunnel vision – In these type of project, most of the Scope, developments are very clear and involves fast
track execution with limited documentation and reporting. This approach focuses on project execution
processes and ensures quick delivery. To deliver short duration projects with process digitization provides
online real time data. Applying Analytics provides dashboards to support quicker decision making.
Funnel Vision – In this approach, Project deliverables are dynamic in nature looking at long duration and
as project progresses deliverables firms up. Funnel that is wide in its view toward the future and then
narrows as it recedes back to the present. Project Manager sit in the present at the narrow end. Instead
of having narrowed constricted tunnel view, Project Manager can see a wide array of alternatives in front.
Project Manager not only gets strategic target, but also see a spectrum of actions, events, and possible
consequences that are unfolding around. Funnel Vision dramatically increases ability to pick up both
signals of Risks and Opportunity early enough to act on them well in advance of their occurrence. Funnel
vision increases ability to see the big picture, analyzes the future, integrates change management,
revalidates project Targets at each stage of the projects which in turn makes better execution and
decision making.
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3.2 Project Analytics for Project Selection and Prioritization:
Project portfolio management is a dynamic decision process wherein a business’s list of active projects is
constantly updated, revised. In this, Product Portfolio Map for existing and under development Products
is available, whereas new Product ideas when mapped it provides valuable information such as Project
Cost, Resources, Product Competitiveness, Volumes. In this process new projects are evaluated,
selected and prioritized; existing projects may be accelerated, killed, or de-prioritized and resources are
allocated and reallocated to active projects.
Selecting projects and optimizing the project portfolio that best align with the organization’s strategic
priorities is the essential focus of project portfolio selection. Organisation strategies like Advanced / Mass
market Product Portfolio, Cost Optimization, Profit Maximization plays role in selection of Projects.
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a. Important and urgent Project Activities
b. Clear, sharper, Crisp Project MIS
c. Project measures, Targets on real-time
3.3.1 Project Budget dashboards: It allows to see the significance of budgeting and forecasting data
at a glance, resulting better informed and timelier business decisions. It shows complex financial data in a
display format that is easy to absorb and understand. An individual can quickly get an overall view of how
a project spends its budgeted resources and what financial priorities exist.
With Finance dashboard providing trend Budget Plan Vs Actual, it helps course correction over the
remaining financial year.
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3.3.2 Project Resource Dashboard: It shows you the most/least loaded team members, task types with
the most hours allocated and diagrams with visualized time utilization. Also gives an overview of the total
hours allocated and control over any discrepancies in allocation.
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3.3.3 Project Deliverables dashboard: Use of routine project planning and control tools such as excel
based Task Lists and Gantt Charts is not adequate to control a large-scale project. All projects need
project plans, and project planning tools (like MS Project) are quite useful for generating schedules
especially at the sub team level.
However, these kind of tools alone are usually inadequate for tracking and controlling complex and
integrated projects. Task lists and Gantt charts are necessary, but the sole reliance on a tool such as MS
Project makes for a very weak project information system that can fail to give the project manager
adequate warning when deliverables are falling behind plan. However, without data consolidation and
trend analysis the tool fails to provide unambiguous warnings when things are going wrong. The sole
reliance on task lists and Gantt Charts can lead to the condition whereby the project manager finds that
he/she is approaching a major milestone (i.e. review point) and behind schedule with little hope of
recovery. A good way to avoid this kind of dilemma is to support project plans with early warning
indicators consisting of critical path analysis and negative float calculations along with trend analysis and
phase exit criteria. Such a project management information system provides the project manager with
unambiguous warnings across all tracks of work on a project.
It operates very much like the warning lights on an automobile dashboard.
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considered in any rational approach to the management of a project. These stakeholders are outside the
authority of the project manager and often represent serious stakes in project.
Project stakeholder management (PSM) assumes that success depends on taking into account the
potential impact of project decisions on all stakeholders during the entire life of the project, management
faces a major challenge. In addition management must consider how the achievements of the project’s
goals and objectives will affect or be affected by stakeholders outside their authority. So it re-instate,
Stakeholder management is an important part of the strategic management of organizations.
Project stakeholder management is much like customer relationship management, real-time project data
dashboards reporting to stakeholders provides Project Status and also ensures intervention.
7C’s concept elaboration
a) Concern – Project Open concerns real-time status is available to Project Stakeholders.
b) Communicate – Project documents and Project Plans are online available to all stakeholders and
provides real-time project progress report.
c) Contribute- Data sharing, online reviews, Approvals makes better contribution by stake holders.
d) Connect – Complete Project and Portfolio data being available digitally, faster connect and
interaction within Project Teams.
e) Compound – Overall view and completeness of Project and Portfolio data creates synergy.
f) Co-Create – Project dashboards, Reports facilitate better engagement and decision making.
g) Complete – Provides complete information about Project life cycle.
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4 Conclusion:
Application of analytics to Digitized Project Management Processes will provide multitude level of
benefits to Organisation categorically better project management and strategic management.
Benefits of Analytics for Project Management –
1. Integration of Project Schedule, Cost, Quality and Resource - 360 degree view.
2. Project Schedule delays, Cost Overruns, Project Open concerns and Risks can be better
managed.
3. Project Analytical tool provides Project and Portfolio dashboards, providing better visibility for
decision making.
Benefits of Analytics for Portfolio Management –
5 Way ahead:
1. Leaner and lighter Project Management process.
2. Provide quicker access through developing & installing secured mobile apps, increasing visibility
of critical milestones and decision points to stakeholders etc.
6 Recommendation:
Few suggestions to Project Managers and Organizations –
1. Before committing complete digitized solution for Project Management, formally document the
process and evaluate the same for at least one Project lifecycle to refine and mature the Process
as well as Organisation.
2. The new gen PM should clearly look within, learn and understand the needs of managing various
business expectations, the changes coming in through lot of more & more millennial in the project
teams, and how they can bring in the “value” through application of analytics
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References
[1] Neil Stolovitsky, The Role Of Analytics In Projects, https://www.projecttimes.com/articles/the-role-of-
analytics-in-projects.html
[2] Harjit Singh, Introduction to Project Management Analytics,
http://www.informit.com/articles/article.aspx?p=2461067.
Jones, C.D., A.B. Smith, and E.F. Roberts, Book Title, Publisher, Location, Date.
[3] Neil Stolovitsky, Project Performance Management, http://www.projectperfect.com.au/white-paper-
project-performance-management.php
Abbreviations
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