PM in PDES

Project Management is the process of planning, organizing, and controlling resources, procedures to achieve specific goals. Learning about Project Management caught my attention as it is something being done on a daily basis without even noticing. In class we learned what is involved in Project Management; project characteristics, project management activities, project managers, when project organization works best. All of the topics mentioned, I found myself encountering on a daily basis at my current job.

I’ve been working for Paul Davis Emergency Services (PDES), a rapid-response mitigation services company, for quite some time with new knowledge being learned every day. Some project characteristics we face are time, performance objectives, top-down commitment, having a capable project manager, time to plan, and good communications. Learning about Project Management Activities (PMA) in class made me realize how I encounter this every time I step into work. In class we discussed how PMA consists of Planning, Scheduling, and Controlling. Planning involves team organization, defining the project, and goal setting. Every morning at work we set up a discussion meeting to plan the day. We are given our objectives, usually water losses, and locations from the project manager; from there we break down into groups and decide what each individual will be doing that day. The next PMA, Scheduling, falls perfectly into play. Scheduling relates to people, supplies needed, also the start and end time. After our daily planning each individual grabs what is needed and load into the work trucks. Our start time is then given, once arrived at the location an inspection is made by the crew leader and an estimated end time is made. Next PMA activity is Controlling; controlling monitors the quality, costs, and revises plans to meet time and cost demands. In the controlling stage I see this from the crew leaders and occasionally the project manager. During each project we are monitored to make sure tasks are being completed correctly and on a reasonable time. In the end project managers are the ones who make sure all activities are finished on time and in order, the goal is met on the project, and to make sure that each person assigned to a task on the project receives proper information, direction and is motivated to work. I am grateful to have a great project manager who is easy to work with and makes working enjoyable. There is only one thing I found I hard agreeing on and that was describing when a project organization works best.

In class we discussed when a project organization works best and there are a few I do agree with but others I do not agree with. What I do agree with is that project organizations work well when a specific goal and deadline are met and the project is temporary but critical to the organization. I agree with these because in my line of work completing a specific goal on time is very important, because it will give the owner more time to deal with estimates. However I did not agree with a job being unfamiliar to the existing organization and work contains complex interrelated tasks requiring specialized skills. I disagree with this because if a job is unfamiliar to the existing organization, how can the task are completed correctly and on time? Also in my line of work not everyone had specialized skills to the task they were assigned and yet the company I work for is recognized all over the United States for its excellent work!

Question; what other companies can relate to project management activities on a daily basis. And do you agree each description on “Project organization works best when”?

When forecasting went wrong.

In our class discussion, we talked about how businesses rely on forecasting to formulate their strategies. We all know that forecasts are not perfect, they just give us an idea what the sales might be in the future. In most cases, companies would try to take all the outside factors into accounts while forecasting; however, what happens when you totally underestimated the impact of certain events?

It’s been more than three weeks since the Umbrella Revolution started in Hong Kong. The protesters occupied the financial district and some of the main shopping area in this small city. Countless retailers and restaurants have stood up and complained that how much loss they have during the protest.

This protest started just two days before the “Golden Week”, a week long holiday for mainland China to celebrate the National Day. The time when companies stock up and getting ready for the countless mainland shoppers. For small to midsize businesses, the owners complained that they are about to go out of businesses if the protest continues. These small/midsize rely largely on mainlanders and they are holding their inventories longer than they would like and since the Golden Week is now over, they are not optimistic about the inventories will be gone anytime soon.

This movement has been planing for more than one year and everyone in Hong Kong knows exactly when it was going to start. But it turns out most businesses have underestimated the impact of it. My questions are, how should a business forecast its sales under such events? What would you do about the forecasting for NEXT year?

Sources:

 

Hong Kong Retailers Experience Sharp Sales Declines Amid Protests

Goldman Slashes Hong Kong Growth Outlook

5 for Forecasting: How Nick Leddy Lost his Roster Spot

The Chicago Blackhawks and Chicago Bulls faced very different situations this summer.

The Bulls decorated the United Center in hopes of landing free agent Carmelo Anthony
The Bulls decorated the United Center in hopes of landing free agent Carmelo Anthony

The Bulls created an elaborate presentation at the United Center as they tried to lure Carmelo Anthony away from the New York Knicks while the Chicago Blackhawks offered some of their best players to other teams. The core reason for these differences was the accuracy of salary cap forecasting within the specific leagues.

The NHL fell victim to bad forecasting in 2014. Early in the year, the commissioner predicted a $71.1 million salary cap for the upcoming season. General Managers across the league began to plan their roster moves accordingly. It wasn’t until months later, when the actual figures came in, that the league realized it had overestimated the growth of the revenues; the hard salary cap would instead only be $68 million. The $3.1 million difference didn’t affect teams that conservatively reacted to the forecast, but teams like the Blackhawks found themselves needing to eliminate nearly $3 million worth of payroll. So as the team practiced all summer, the atmosphere was not one of anticipation and excitement but rather apprehension, knowing a significant player would need to be traded.   Ultimately, Nick Leddy lost his spot on a championship team because the league falsely predicted the growth of their revenues.

Both Johnny Boychuk and Nick Leddy lost their roster spots on championship teams because of poor forecasting.
Both Johnny Boychuk and Nick Leddy lost their roster spots on championship teams because of poor forecasting.

In contrast, the NBA did not suffer from bad forecasting. They were not perfectly accurate, as is expected, but they conservatively expected a 4.5% increase. By not relaying an unrealistic expectation to the general managers, the league prevented premature dealings by teams. Plus, on three separate occasions throughout the year, the league adjusted their forecast to improve its accuracy. The eventual salary cap was a 7.7% increase from the previous year. This left the Chicago Bulls with extra, unexpected cap space to try to recruit top free agents—a much preferable problem than having to shed payroll.

General Managers have to find the balance between optimistic forecasts and reality. The NHL should’ve considered the effect of the lockout shortened season as well as the decline of the Canadian dollar when they predicted a forecast that followed the record growth trend from previous years.  The NBA did a much better job of using environmental signs such as market values of sold teams to predict their league growth.  In the years to come, I’d expect NHL managers to be more hesitant in relying on initial forecasts, and perhaps adopt NBA strategies in approaching salary cap forecasts.

CapGeek.com shows the relationship between each NHL team and the salary cap. This specific image shows how restrictive the 2014 salary cap is for certain teams.
CapGeek.com shows the relationship between each NHL team and the salary cap. This specific image shows how restrictive the 2014 salary cap is for certain teams.

The salary cap in certain leagues is an absolute maximum accompanied by severe penalties for violations. It makes it even more consequential when a forecast is overestimated. Some teams will wait until the cap is released to sign players while other teams sign players based on forecasts. It poses the question: Which is the preferred scenario? New York Jets fans are currently complaining because their team lacks talent despite having nearly $20 million in cap space to be spent while Blackhawks fans were upset with having to trade Leddy in order to be under the cap. Which scenario would you prefer your favorite team be in? Do you rely on the forecast and deal with the consequences of inaccuracy or wait until the actual cap is set to make important decisions and risk missing out on top talent?

Sources:

http://www.habseyesontheprize.com/2014/3/6/5478362/what-the-new-projection-of-a-68-million-dollar-salary-cap-shows-about

http://espn.go.com/nba/story/_/id/10808291/nba-salary-cap-projected-rise-nearly-5-million

Images: Capgeek.com

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http://www.trbimg.com/img-53b49beb/turbine/ct-bulls-blackhawks-court-stars-haugh-spt-0703-001/2048/2048×1365

 

The big surprise

Amazon Robots

The video we saw in class about Amazon shows how Amazon is using robots in the process strategy .  Amazon is using robots as part of the process of fulfilling customer orders in a short time.  Completing the orders in a short time meets or exceeds customer expectations.  This is one of the reasons why Amazon is a leader in the e-commerce business.   While watching the video, one question that popped on my mind was: “What are the chances that these robots will run into each other?” After reading an article on how these robots work, it is not possible that these robots will run into each other or drop items from the shelves.  There is a central computer system that keeps track of each robot and coordinates their position.  These robots are in the right place and at the right time.

The robots that Amazon is using are produced by Kiva Systems, a company that Amazon bought it for $775 million. Why would Amazon buy Kiva Systems? Is Amazon  going to produce robots to increase the number of robots in its warehouses or to sell them to other businesses?  The answer is that  Amazon is coming up with something even more bigger. The purchase of Kiva System was not just for the Kiva robots.

The next step in the process strategy improvement is the Amazon Air Prime delivery.  Have you ever thought of having a product you ordered through Amazon being delivered to you within 30 minutes? I know when you think about this, it sounds unreal.  That is the next big step Amazon is taking: delivering products in such a short time through the usage of the electric drones or as Amazon calls them octocopters.  In the future we won’t have to wait for the UPS to come and deliver the package at our homes .  We will have octocopters delivering products at our homes. Octopocters are electric drones, very green for the environment.

Octocopter

According to the CEO of Amazon Jeff Bezos, the current octocopters that are being tested can deliver products that weigh up to five pounds (which is about 86% of the products that Amazon delivers) within a 10 miles radius from the fulfillment center and within 30 minutes.  These radius delivery will cover major urban areas.  The drones are autonomous. You give them the instructions, the GPS coordinates where they should  go to and they will fly to those assigned GPS coordinates.   The challenge Amazon is facing now while working on this project is the risk of the drones landing over somebody’s head.  The R&D group is working on making this plan work in the near future.   Some of the questions that come up if Amazon puts this project in life are:

 

  1. How is the implementation of octocopters going to affect the shipping rates?  Is Amazon still going to have free shipping for orders over $35?
  2. How is the society going to react towards these change? Are we going to be ok with drones flying over our heads?
  3. How is the usage of octocopters going to affect the other businesses(for example UPS) and the job market? The usage of octocopters means less UPS drivers delivering orders to our homes.

 

http://www.youtube.com/watch?v=u7K2aJgvpdw

http://techland.time.com/2012/03/21/amazons-775-million-acquisition-of-kiva-systems-could-shift-how-businesses-see-robots/

Honey, I Shrunk The Inventory

Working at T-Mobile I learned a lot about Operations. I learned that T-Mobile’s inventory has more items than just phones. It contains items such as handsets, covers, headphones, chargers, and other accessories. The inventory is counted at least once a month and the process involves manually counting each SKU (Stock Keeping Unit) in the front of the store and in the back of the store where the inventory is locked. After each count the result is compared to the inventory at the beginning of the month plus new-ordered inventory minus the sales and minus all the items that have been returned for various reasons. In theory the manual count should equal to the remaining inventory on file, but in real life it doesn’t happen.

Honey, I shrunk the Inventory

In real life the store manager uses personal judgment when opening large business accounts and he is able to give some SKUs for free. Sometimes when the employees sell or return the SKU they may accidentally scan a different SKU (each color or pattern of the certain cover has its own SKU!). Sometimes the returns are not scanned correctly, and sometimes it happens that a phone cover falls under a closet. In real world there is a certain percentage for which the loss is acceptable.

When the loss of inventory is bigger than a set percentage it becomes an issue. That may indicate that there is theft in the store, or mishandling of inventory or perhaps just plain incompetence. The steps to fight the high “shrink” percentage include a weekly count of the inventory, daily reports, probations and write-offs for the employees who are caught for scanning wrong items at POS or not scanning them at all. The store managers are being judged by the “Shrink” metrics, their salary and performance reviews can be seriously affected by the higher percent of “Shrinkage”.

Another metrics that affects managerial performance is traffic conversion. It is measured on daily and monthly basis and it’s designed to measure sales productivity. Each store has a device mounted inside of the store, just above the door, and it measures the number of people who walk-in. Then the number of sales is divided by number of “walk-ins” and that ratio represents the sales conversion rate. A low conversion rate shows low productivity and it means that the store manager should step up his game.

One of the ways to fight a low conversion rate is to make sure that the sales associates talk about current promotions. That they look at the customer’s account to see if the customer has any type of need and that need has a solution in a form of a product they can offer. That the employees are asking the customer the right questions that may help discover other needs. So next time when you are paying your bill or buying something at your carrier’s store consider whether or not you think of the sales representative’s questions as product pushing or simply discovering customer needs.

Lush: The Cosmetic Game Changer

Lush is a company that has been making fresh, homemade cosmetics since 1995. Products include, but are not limited to, soaps, face masks, shampoos, bath fizzes, and lotions. Lush stays away from processed, synthetic ingredients that can aggravate sensitive skin types. Instead they use the freshest ingredients to date, so they can have the best quality products around.

In class, we touched on topics such as sustainability and ethical values. Lush has a strong commitment to their “Green Policy” by considering where materials come from. Lush’s operation crew meets with producers and visits the locations to make sure environmental impact is minimal when harvesting ingredients. They will make the decision not to purchase materials if production causes harm to the environment. Lush sets the bar for ethical standards by examining conditions for the workers and keep up with wages to secure financial gain. This helps build a strong connection with the workers so they can get the best out of their products and make a positive impact on the community.

Lush is working hard on keeping their packaging more environmentally friendly by making it less wasteful. Some of their products such as bath bombs and soap bars do not require packaging at all. By doing this they help prevent plastic and waste from entering landfills. All other products that use containers are made from 100% recycled materials. The eco-friendly company plans to keep working hard on furthering design by making it biodegradable in the future. Lush makes sustainability their top priority when producing products for their customers.

Not only does Lush promotes environmental and humanitarian causes but passionately fights for animals. They do not purchase from any manufacturer who test products on animals. Instead, Lush tests safety of their products on human volunteers. They one day hope to influence other companies in the cosmetic industry to put an end to animal testing. Lush runs a number of campaigns with their most well known being equal marriage, elimination of plastic bags, and the ban of seal hunting. Lush is constantly dipping their toes in world issues to help make a positive impact in the world. The world needs more companies like Lush to shed light on environmental and humanitarian issues.

What are your thoughts?
Do you know of any ethical companies like Lush? How do they make a positive impact to the world?

Sources:
http://www.lushusa.com/Our-Story/our-story,en_US,pg.html

Colorado Springs Airport: Boom to Bust

Located in the same city as our national Olympic headquarters in the small city of Colorado Springs, Colorado, there is an unnoticed airport that is undergoing a huge decline in the number of passengers it sees. In 1994 Colorado Springs opened their first airport in which served 1.5 million passengers on average within its first 2 years of operation. By 1996 the city had created a larger terminal and now the airport would be able to serve 2.5 million. This year however, the airport will serve less than half of the passengers that they had when they opened in 1994.

What happened to the airport? First, 7 of the airlines that operated independently have now merged with other airlines due to bankruptcy. Due to this mishap the airport now only has 4 airlines that operate 12 flights a week and 1 airline with 4 flights a week. While many officials have been trying to persuade passengers to fly out of Colorado Springs versus Denver, airlines do not like the idea of taking a risk especially when they already have a system in place flying out of bigger cities.

Based on the article Western Pacific airlines took the bulk of the hit from Colorado Springs because it was a hub for them. However, because they were not getting the passengers that they were expecting, 2 years later they moved their hub to Denver. The airline was expecting to merge with frontier airlines because of financial reasons. The frontier airlines merger broke down and eventually shut down operations due to bankruptcy.

This article has dealt with 2 concepts I have learned about this quarter from class. The first concept involved in the article is forecasting. In order to figure out how much the airport is going to make, they must forecast how many planes are going to come in and out Colorado Springs airport. Based on the all of the economical factors with 9/11 stopping air travel and the depression of 2007 it has caused smaller airports to not function as well as they used to. With the airport operating with fewer passengers, airlines and flights then what they opened the forecast has been accurately calculated in order to reflect these economical factors surrounding the airport.

The second concept they talk about it cost versus resources and flights. Many airlines cut their ties with the Colorado Springs airport because the airlines were losing money on select flights due to low passengers on the flights. Therefore airlines must decide whether or not they think they will make money with flights out of Colorado Springs. However, this is not an easy task because many airlines are stubborn when it comes to the flight system they have in place.

To add some optimism to this article at the end, airport director Dan Gallagher stated that using this airport in the future will be a lot cheaper and that they would be able to handle triple the passenger flow. Also he added that the airport has paid off two-thirds of it debts. Therefore he expects that this airport will return to the glory days it once had when it opened in 1994.

These points raise the questions: Will Colorado Springs airport return to its former self? Will they be able to draw in more airlines and passengers to use it services? Are there any immediate problems they can solve with what they have?

Article: http://gazette.com/terminal-case-colorado-springs-airport-dealing-with-challenges-20-years-after-buildings-opening/article/1539787 

Introducing iPhone 6’s new shape: Bent

Apple reveals iPhone 6 sales

With the recent introduction of the new iPhone 6 and the iPhone 6 Plus, there has been a lot of controversy over one of the characteristics that constitutes its quality.  Both the new iPhones are a lot larger than the iPhone 5, but also a lot thinner. The current trend is moving towards thinner everything, so you might think this is great idea to create a thin iPhone. That is, until you realize that this feature can also turn awry.  As it turns out, in just the first 6 days, 9 customers complained about the iPhone bending from being carried in the back pocket.

For a prominent company such as Apple, which is known for their quality products, these news are terrible. Some might say that 9 is a very low number of instances comparing to the 10 million they sold. But, the publicity this issue is getting can drastically decrease the sales of the new iPhone, and its future products.

 

A company such as apple puts its products through so many different quality control checks, before they reach the market. Employees and machines, at different points in the process have to check the quality before it can move onto the next task. Apparently though, as mentioned in the statement by Apple, “Testing of the phones did not show any problems with bending or warping. IPhone 6 and iPhone 6 Plus meet or exceed all of the high quality standards to endure everyday, real life use.” Nevertheless, it is difficult to believe this issue never came up. Sometimes people overlook quality issues hoping someone else will catch them. And sometimes, it is just too costly to point out quality issues. If a product is already in production with an announced deadline of introduction, a design issue will cause a delay and an additional budget to fix the issue. This will create a bad reputation for the company. However, so will a bad quality product.

 

Releasing a statement that confirms the product has successfully gone through three-point-bending test, a sit test etc., does not fix the issue. Unfortunately the person, who has had their iPhone bent, might not be as happy with the company as he previously had been. And we all know, that the best form of advertising is from friends and family. If your friend has it and it is performing well, you want it. But, the same goes for when your friend has it and its not that great. Then, your opinion of it changes as well. Unfortunately, this may cause Apple to lose lots of loyal clients, and tons of sales.

 

What do you think about the bent iPhone?

Did you purchase the new iPhone? If so, any issues with bending?

Does this change your perspective on apple?

Will you continue purchasing apple products?

 

 

Arthur, Charles. “‘Bending’ IPhone 6.” The Guardian. N.p., 25 Sept. 2014. Web. 19 Oct. 2014.

 

Running a Business with a Paperless Solution

ServiceBridge is a technology company that revolutionizes the service industry. With cloud based job scheduling tools and mobile features it accelerates the way your business functions in many ways. Most companies today still use pen and paper which results in a total fiasco when it comes to organizing all of your files, accessing customer history, and dispatching jobs. With ServiceBridge you run your business without any use of paper, access to all customer data, and on the fly dispatching tools. When a new customer calls you and requests a service such as rodent removal you must be as organized and quick as possible to get to the customers location to resolve their issue. You begin by entering the customer information into the database. If a customer already exists, the system will notify you so you do not duplicate a record. The auto suggest features do not require to enter the full customer location as it will pre-populate the fields for you. Once the customer is created you can proceed with creating a job. Once the job is created it will appear on the dispatch board. The dispatch board shows all technicians jobs for the day and their duration. This let’s you see which technician is available to perform the job. To bring it up a notch, the Geo-Tracking feature opens up a map which displays all of the technicians routes and their exact location. This allows you to view the unassigned job and see which technician is the closest to the customer’s location and can address their issue quickest. As soon as the dispatcher assigns the job to best fit technician, then they receive a push notification on their mobile device saying that a new job has been assigned to them. All they have to do is refresh their device and it will appear in their Jobs Due Today category. When the technician arrives at the job, the office is able to see the exact arrival time back in the office. The technician can then add products/services to the job, add notes, capture photos, collect a payment, and have the customer sign off on the job illustrating that the job has been done to complete satisfaction. The best part is that all information syncs back to the office in real time. Once the job is finished, then both the office and customer receive a copy of the work order receipt with the photos attached and signature printed. Since ServiceBridge is fully integrated with QuickBooks, you can then push the finished into QuickBooks online with one click, and invoice the customer. The best part is that ServiceBridge cloud is optimized to run in any browser, including an iPad. So just try to image how nice it would be to run your entire business from a beach sipping on a margarita.

 

Why do you think so many businesses are still running their businesses using pen and paper opposed to going paperless with the latest tools and technologies such as ServiceBridge? Has a technician ever preformed a service at your home that while documenting all information using a mobile device such as a tablet?

Source: https://www.servicebridge.com/

Crash and Burn – The Great Chicago Fire Festival

An estimated 30,000 people gathered around the Chicago River on Saturday October 4th for the first ever Great Chicago Fire Festival put on by the Redmoon Theater. The festival was supposed to showcase the grit, greatness, resilience and rebirth of Chicago after the historic and unforgettable Chicago fire of 1871. The idea for the event was imagined back in 2009 when Chicago was in the bidding process for the Olympics.

Redmoon-Garcia13-1024x697   GCFF_3DComp7_082214_Full-1024x682

On Redmoon Theater’s website, the event was advertised to be a “Grand Spectacle,” with floating caldrons of fire and a parade of wooden houses that were to be lit on fire and reveal modern metal structures symbolizing the rebirth of Chicago. In addition there was a street market with community artists, florists and bakers before the evening festivities.

The Redmoon Theater shared on its website that, “The inaugural Great Chicago Fire Festival will light up the city with a spectacle of fire celebrating the city’s citizens and neighborhoods on the Chicago River.” However, shortly into the production things went wrong. Two of the three wooden houses failed to catch on fire because of electrical problems that were supposedly due to the rain earlier in the day. Instead of roaring flames shooting high into the sky, the audience watched little sparks of fire float down the river. Some spectators commented to the Chicago Tribune reporter, Gregory Pratt, saying that they had been to better bonfires. (Yikes!) After failing to light the wooden Victorian houses on fire, the Redmoon Theater quickly set off their firework finale to keep the thousands of spectators intrigued.

In the beginning, many people watched in awe as the kayakers and small boats pulled buoys of fire and as the caldrons of fire were lowered down into the river after being lit by Chicago Mayor, Rahm Emanuel. The firework spectacular at the end of the production was worth raving about as well.

Time, cost and performance are the three points of the project management triangle. Redmoon Theater had the cost under control, and plenty of time to prepare for the event, but their performance had no fire (literally).

Obviously, with all major productions something is guaranteed to go wrong, especially with outdoor events. Many are considering this year’s event just a “dress rehearsal” for many more Great Chicago Fire Festivals in the future. Was it the weather or just bad management that caused this 2 million dollar production to crash and burn?

What do you think? Was the weather or the project management team to blame? What could have been done to ensure more success for the festival? Word on the street is that the city of Chicago is giving Redmoon Theater a 2nd chance next year and even increasing their budget. Do you think this event is worth trying to put on again?

 

Sources:

http://www.chicagotribune.com/news/ct-met-great-chicago-fire-festival-1005-20141005-11-story.html

http://www.suntimes.com/news/30276759-418/delays-as-great-chicago-fire-festival-struggles-to-ignite.html#.VDHlb77rbFI

http://chicagofirefestival.com